Diamond stocks are shares of companies that mine diamonds, sell wholesale diamonds or diamond jewelry, or produce lab-manufactured precious stones. Diamonds epitomize luxury for many people. They're also one of the most durable materials on earth.
But if "diamonds are forever," what about diamond stocks? With the global diamond jewelry market worth almost $100 billion annually, stocks involved with the production of these luxury goods are worth a peek for investors.
Overview
Investing in diamond stocks
Diamonds have been around for a long time, and the industry is well established. Investors looking for high growth should probably pass on this segment of the mining sector in favor of other stocks.
Additionally, there are plenty of diamond producers that fall into the penny stock category. Tread lightly with stocks that appear to trade on the cheap. However, for investors looking for big, well-established companies that offer slow but steady growth, a few names dominate the field and are worth a closer look.
| Company | Market Cap | Industry |
|---|---|---|
| LVMH Moet Hennessy Louis Vuitton (OTC:LVMUY) | $271.8 billion | Textiles, Apparel, and Luxury Goods |
| Rio Tinto (NYSE:RIO) | $103.1 billion | Metals and Mining |
| Anglo American (OTC:NGLOY) | $36.4 billion | Metals and Mining |
| Signet Jewelers (NYSE:SIG) | $3.4 billion | Specialty Retail |
| Senco Gold Ltd. (NSE:SENCO) | $3.4 billion | Specialty Retail |
1. LVMH Moet Hennessy Louis Vuitton
1. LVMH Moet Hennessy Louis Vuitton
LVMH Moet Hennessy Louis Vuitton is the world's largest luxury conglomerate and the owner of some top names that embody high fashion. It's also highly involved in the crafting and retailing of diamonds and jewelry. Brands in the company's portfolio include iconic names such as Bulgari, Chaumet, and TAG Heuer.
To bolster its presence in top-of-the-line jewelry and gemstones, LVMH completed its acquisition of Tiffany & Co. early in 2021. Shortly thereafter, LVMH announced the launch of a joint gemstone and raw materials sustainability initiative to help foster positive change in the industry.
LVMH isn't a pure play on diamonds. Along with its brands specializing in jewelry, LVMH stock provides investors with exposure to high-end apparel and accessories, perfumes and cosmetics, and champagne, wine, and spirits. But if a "house of fashion" stock that includes some of the top diamond businesses in the world is what you're after, LVMH Moet Hennessy Louis Vuitton may be the place to start.
2. Rio Tinto
2. Rio Tinto
London-based Rio Tinto is one of the largest global raw material producers. The mining giant extracts all sorts of products from the earth, such as iron ore, aluminum, and copper. Included in its globe-spanning operation are a couple of top-yielding diamond mines that make Rio Tinto one of the largest diamond producers in the world.
Industrial metals are Rio Tinto's primary moneymaker, and uses for these materials are growing in the manufacturing and technology industries, among others. Demand for Rio Tinto's products is cyclical, though, as is common for many raw material and mining companies.
Even so, Rio Tinto is one of the biggest and most stable metals producers out there. That makes it an ideal fit for investors who want some ancillary exposure to the diamond industry.
3. Anglo American
3. Anglo American
Anglo American is another top mining stock, and this one has global operations that produce platinum, copper, nickel, iron ore, and, of course, diamonds. Although metals and ore make up the bulk of Anglo American's sales, this is actually a top way to play the diamond industry.
Anglo American, also based in London, owns 85% of diamond company De Beers Group (the company responsible for the slogan, "A diamond is forever"). The government of Botswana owns the other 15%. About one-third of the world's supply of rough diamonds is produced by De Beers and its partners.
De Beers also cuts and polishes diamonds and has retail assets that sell finished products to consumers. Along with Anglo American's base metal production, this is a mining and diamond investment that pays shareholders a semiannual dividend, so it's worth a serious look for investors interested in generating income.
4. Signet Jewelers
4. Signet Jewelers
Signet Jewelers is one of the largest gemstone jewelry retail operations. Its subsidiaries include Kay, Zales, Jared, and more. The company boasts some 2,600 retail locations, most of which are located in the U.S.
The internet is changing consumer habits, though, and Signet has made some acquisitions to ensure it remains relevant in the digital era. In 2017, it purchased R2Net (parent of JamesAllen.com) to bolster its e-commerce presence, and in 2021, it acquired jewelry rental start-up Rocksbox and small destination jeweler Diamonds Direct.
Demand for jewelry soared in the wake of the COVID-19 pandemic, but sales slowed significantly in 2023 and 2024. The company plans to close 150 underperforming stores in response to sluggish sales. It's also seen a spike in demand for lab-grown diamonds.
There's no telling what the future holds for gemstone sales. But despite recent headwinds, Signet Jewelers remains a top option to consider in this niche of the retail world.
5. Senco Gold Ltd.
5. Senco Gold Ltd.
Diamond sales in the U.S. have faltered in recent years due to several factors, including inflation, changes in marriage trends, and the wider availability of lab-grown diamonds. But India is one part of the globe where demand for diamonds is soaring as the country's middle class grows. Today, India is the second-largest diamond market in the world.
Kolkata, India-based Senco Gold Ltd. is benefiting from the country's spiking demand for diamond jewelry and precious metals. The diamond and jewelry retailer has 175 showrooms in India and a presence in Dubai.
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In the first quarter of fiscal 2026, it saw a 24% jump in year-over-year retail revenue and a 28% spike in total revenue. Though the company has struggled somewhat with higher gold prices, it's seen strong demand for studded diamond jewelry, which now accounts for 11% of sales.
Diamonds and jewelry are not the highest-growth industry, but these precious stones occupy a special place around the globe. Don't expect any hypergrowth from investing in this space, but there are tried-and-true businesses involved in the production of diamond jewelry and accessories that are worth investors' attention.
FAQ
Investing in diamond stocks FAQ
Is it worth it to invest in diamonds?
Investing in physical diamonds can be challenging for a number of reasons, including the complexity of pricing, volatility of supply, and lack of liquidity. Investing in diamond stocks, like mining companies or jewelry retailers, is less risky. However, demand for diamonds tends to be cyclical and prices are often volatile, so it's important to be aware of these risks before you invest.
Who is the largest diamond company?
De Beers is the largest producer of diamonds in the world and is responsible for about one-third of the global diamond supply. Anglo American owns an 85% stake in the company, while the Botswanan government owns the remaining 15%.
Is it better to invest in gold or diamonds?
Investing in gold and diamonds could make sense due to their rarity and value. However, gold has historically been the safer investment. Gold has long been seen as a store of value and an inflation hedge, with uses in jewelry, currency, and manufacturing. Diamonds are generally a more volatile and less liquid investment.
Do diamonds depreciate?
Most diamonds depreciate slightly after they're sold, but it's possible for a high-quality diamond to retain all its value or even appreciate over time.
