The Problem With Diamonds Is They Keep Getting Cheaper (2024)

FAQs

Are diamonds becoming cheaper? ›

Lab diamonds are up to 75% cheaper than natural diamonds of the same quality. This percentage is likely to continue increasing since lab diamond prices are falling. Just last year, estimates were within the 50%-70% range.

In the wholesale market, diamonds are priced per unit of weight, referred to as "per carat." Updated Wednesday, February 1, 2023, diamond prices moved LOWER by an average of 3.9% in January 2023. The average price per carat of all diamonds in our database was $11,009.72, down from $11,460.76 a month ago.

Diamond Demand & Pricing on the Rise

After a peak in the warmer months, prices will begin to fall, eventually stabilizing just in time for holiday buying. The exception to ever-rising diamond prices is with lab-grown stones. With plenty of supply on-hand, lab-grown diamond prices will continue to drop.

Well, even before Christmas and after Christmas are great times. During this sale season of almost every product in every industry, stores get very competitive to attract customers. Hence, it's a great time to get a good deal on diamonds.

That number increased by 32.5% in 2021 and has increased by another 7% in 2022, bringing the total price increase to 39.6%! You can see the chart below for the price increase on other types of diamonds.

What is causing rough diamond prices to weaken? Mainly a decline in demand for polished diamonds. In recent years, the diamond industry midstream became more efficient at managing its inventory and finances.

Last year ended with diamond prices in a slump, and the first quarter of 2023 will continue downward. This will present a buying opportunity for those coping with stubbornly high inflation in other areas.

On average, the retail price for one carat diamonds can be anywhere between $2,000 to $16,000, and between $8,000 to $72,000 for two carat diamonds . And of course, the retail price and the resale value of a diamond are very different things.

⭐Is Diamond a good investment in 2023? No, according to our forecasts, the Diamond price is going to decrease. Now the Diamond price is $2.72000, but by the end of 2023, the average Diamond price is expected to be $2.41292.

Due to the limited supply of rough diamonds, even though the inventory levels of Cut and Polished Diamond entities may rise in FY2023 as a result of a slowing in demand, they will still be lower than they were before the pandemic.

Are diamonds losing popularity? ›

This highlights a growing preference for engagement rings set with other gems. A further drill-down in the Tenoris data shows that the decline in diamond engagement ring sales was primarily driven by a drop in demand for natural diamonds. In May alone, sales of engagement rings set with natural diamonds fell 19.7%.