Panmure Gordon mining analyst Alison Turner told CNBC Monday that improved consumer sentiment in the United States augurs well for the diamond industry. She said that while other commodities may be affected by the weakened Chinese economy, the niche diamond market has heavy exposure in the US and investors can expect stronger returns.

"I think unlike some other commodities where investors are very worried about what's going on in China, diamonds are very, very heavily exposed to the U.S. market and the recovery there on the consumer side," she said, adding, "Just under 40 percent of world demand still sits in the U.S. and that market is recovering quite strongly and certainly we think will continue to do so this year," she said.

The panic selling of gold in April, coupled with the drop in mining stocks apparently did little to diamond stocks, which remained quite stable. As a result, more investors have started to increase their exposure.