Diamonds Are Forever. Prices Are Not.
A made-up holiday, lab-grown stones, and one extremely reasonable request.
Diamond Prices are Crashing
Hello friends and happy “World Diamond Day.” Didn’t know today was a special day? Of course you didn’t — this holiday isn’t real. Today is the very first time it’s happening.
Diamonds. We’ve been taught they’re forever, thanks to smart marketing. But what’s actually happening in the industry right now is a real lesson in economics — and a genuine boon for consumers.
Diamond prices are down 18% in one year, creating volatility in an industry that’s only ever known one direction: up. Over the past two years, natural diamond prices are down 26%. Mikado Diamonds has been tracking these prices.
The sparkle of natural diamonds has worn off. Lab-grown alternatives have taken over — and honestly, what’s not to love? You get a bigger stone and pay as much as 75% less. In some cases, a lab-grown diamond is 90% cheaper than an identical stone grown in the ground.
Consumers have caught on. Lab-grown diamonds now make up half of all diamond jewelry sold. That means there is less demand for natural diamonds and it’s causing the price slump. It’s gotten bad enough that major mining companies like De Beers and Alrosa have actually cut production. My guess is they’re doing this to try to “limit” supply and drive prices back up.
So what do you do when prices are getting pummeled? You invent a holiday, of course. It’s a solid distraction from the fact that what we’ve been told for decades is no longer true.
Meanwhile, the Natural Diamond Council wants you to know that World Diamond Day “is not a campaign” — which is, of course, exactly what a campaign would say. They’re going for a “collective moment,” encouraging people to share their diamond stories, their diamond diaries, if you will. Or maybe I’m just choking on my own jealousy because I don’t own enough diamonds to participate. You decide.
The steepest price drops are hitting diamonds under 1 carat as well as any diamond of average quality, regardless of size. The only stones holding their value are large diamonds with exceptional cut and clarity — 3+ carats, according to 77 Diamonds. Rare colors like blue or pink also are holding their own.
Which explains why the market is very excited about a 28-carat De Beers diamond hitting auction on April 23. It’s considered one of the rarest diamonds in the world: D color, flawless clarity and expected to sell for at least $2.5 million.
You’re welcome to buy it for me.
What’s in your diamond diaries? Share in the comments, which are open to everyone.