Are Diamond Prices Going Up in April 2023?

Are diamond prices going up? This is a question on the minds of many as they consider purchasing or investing in diamonds. As one delves into the complex and fluctuating world of the diamond market, there are various factors at play that can impact diamond prices, such as supply and demand, economic conditions, and consumer preferences.

In recent years, we have seen a surge in demand for lab-grown diamonds, while prices for these have dropped considerably. This has added another layer of complexity to the question of the future of diamond prices. In this article, we will explore some of the predictions, trends, and factors affecting diamond prices and beyond.

From industry experts’ projections to the influence of various diamond shapes on pricing, understanding what drives diamond prices can give potential buyers and investors better insight into making an informed decision. So, let’s dive into the various elements shaping the diamond market.

Are Diamond Prices Going Up?

Expert Forecasts

In this year, the diamond market appears to be experiencing changes in pricing trends. According to JCK Online, diamond prices will likely dip at the beginning of the year before stabilizing later on. On the other hand, lab-grown diamonds are seeing a significant decrease in prices, with a 3-carat lab-grown diamond dropping from $20,565 in Q1 2021 to $9,305 in Q1 this year, as reported by National Jeweler.

Another perspective on diamond prices comes from Digital Coin Price, predicting the price of DIAMOND (a cryptocurrency related to the diamond industry) for August 2023 to be $14.51, with a maximum value of $36.07 within the same month.

Potential Scenarios

There is a possibility that diamond prices could be affected by various factors, such as trends in cryptocurrency, technological advancements in the industry, and potential changes in consumer preferences. One potential scenario involves the rapidly growing lab-grown diamond market, which could continue to impact the pricing of natural diamonds.

In addition, various external factors such as geopolitical tensions or fluctuations in the global economy could also influence diamond prices. As such, predicts a more conservative average price level of $3.50 for DMD, a crypto-currency connected to the diamond market.

How might these potential scenarios play out in the diamond market? With numerous influencing factors and expert predictions to consider, it remains essential for both investors and consumers in the diamond market to stay well-informed and up-to-date, ensuring they can make informed decisions within this dynamic landscape.

Are Diamond Prices Going Up

Factors Influencing the Market

Several factors are contributing to the fluctuations in diamond prices as we move into this year. These factors include:

  • Demand and supply dynamics: As with any commodity, diamond prices are largely driven by the market’s demand and supply conditions. Growth in demand for lab-grown diamonds, in particular, is contributing to changing price trends.
  • Changing consumer preferences: As consumers become more environmentally and socially conscious, their preferences for diamond alternatives, such as lab-grown diamonds, are affecting the broader diamond market.
  • Impact of the global economy: The ongoing effects of the pandemic and economic fluctuations can have both positive and negative implications for diamond prices.

Historically, diamond prices have experienced periods of both growth and decline. In recent years, the prices of certain diamond categories, including lab-grown diamonds, have fallen considerably. For example, the price of a 3-carat lab-grown diamond dropped by more than half between Q1 2021 and Q1 2023, from $20,565 to $9,305.

This trend is expected to continue this year. According to industry analyst Paul Zimnisky, “going into 2023, the swift momentum of lab-diamond demand growth continues, however, so does a trend of softer prices.”

However, it is important to note that not all diamond categories are experiencing the same price trends. The demand and supply of each diamond shape, as well as the surplus inventory in global circulation, can influence the prices of specific diamond types. For example, oval cut diamonds are currently priced 5-15% lower than round diamonds, while cushion cut diamonds are priced 22-30% lower than round diamonds.

With these ongoing market dynamics, the diamond industry continues to evolve. While some diamond categories may experience price increases, others may remain stable or even decrease in value.

Supply and Demand Dynamics

Are Diamond Prices Going Up

Production and Mine Closures

In recent years, the diamond mining industry has faced challenges with production and mine closures, contributing to the supply and demand dynamics of the market. Diamond production fell by 20% in 2020, and this trend has the potential to affect prices as fewer diamonds are available for sale. With major projects reporting changes in diamond mine capacity between 2019 and this year, it is essential to consider the implications of these fluctuations on the diamond market.

Mine closures and reduced production also impact the future supply of diamonds, and consequently, their prices. With a projected decrease in the number of diamond mines between 2040 and 2075, the long-term outlook for supply is uncertain.

Global Demand Surge

Despite these challenges in production, there is evidence to suggest an increase in global demand for diamonds. A surge in demand will inevitably put pressure on prices, especially if supply remains limited. The rise in diamond prices is expected to continue until at least this year, according to Renaissance Capital.

A significant factor contributing to the increase in demand is the growing appetite for lab-grown diamonds. The US-based analyst reported that lab-created diamond jewelry demand increased by an estimated 38% in 2022, reaching $US12 billion. However, the prices of lab-grown diamonds have also been falling, with a 50% drop for 3-carat lab-grown diamonds between Q1 2021 and Q1 2023.

This decrease in lab-grown diamond prices might impact the motivation of retailers to sell these products, but the trend remains relevant to the overall demand and price dynamics of the diamond market. As we continue into this year, the interplay between production capacities, mine closures, and global demand will shape the prices and availability of diamonds in the market.

Impact of Lab-Grown Diamonds

Impact of Lab-Grown Diamonds

Market Share and Consumer Behavior

As sustainability concerns rise and technology advances, the global lab-grown diamond market has been experiencing growth. This is supported by factors such as rapid urbanization and increasing demand from consumers. Lab-grown loose diamond sales now represent 7 percent of total retail loose sales, a rise from 5.3 percent in 2021. This growth can be attributed to growing awareness of the environmental and ethical benefits of synthetic diamonds, as well as their affordability compared to natural diamonds.

Consumers seeking alternatives to traditional diamonds have embraced lab-grown options, with the most significant sales increases seen in larger lab-grown diamonds. The appeal of these alternatives is not only their affordability but also their ethical and eco-friendly production, which can influence purchasing decisions for environmentally conscious consumers.

Pricing and Quality Effects

Over time, the prices of lab-grown diamonds have been fluctuating, with the price of a 3-carat lab-grown diamond dropping by more than half from Q1 2021 ($20,565) to Q1 2023 ($9,305). This can be both encouraging for consumers seeking budget-friendly options and concerning for retailers whose profit margins may be affected by the falling prices.

It is important to note that the prices of lab-created diamonds can still vary significantly depending on factors such as carat size, cut, and quality. Prices can range from as low as $1,600 for a 1.02-carat diamond to as high as $29,927 for a 4.19-carat diamond. As the lab-grown diamond market continues to evolve, new technologies and production methods could further impact the pricing structure.

Despite the affordable pricing of lab-grown diamonds, quality remains a crucial factor for consumers. These synthetic diamonds offer a high-quality, visually identical alternative to natural diamonds, making them an appealing option for those in search of a beautiful and ethically sourced gem.

Economic and Geopolitical Factors

Diamond prices are influenced by various economic and geopolitical factors. Let’s explore how currency fluctuations, trade policies, and political instability can impact the market for diamonds.

Currency Fluctuations

Exchange rates play a significant role in determining diamond prices. As currency values shift, the cost of diamonds can increase or decrease accordingly. For instance, a weakening US dollar may lead to higher diamond prices due to increased expenses for diamond producers and suppliers.

In contrast, a stronger dollar can reduce production costs and make diamonds more affordable for international buyers. It’s essential to monitor currency trends and consider their impact on the diamond market.

Trade Policies

Trade policies often influence diamond prices. Tariffs, import-export regulations, and taxation can alter consumers’ buying power and the ability of producers to market their goods internationally. For example, protectionist policies can limit the global diamond market, causing a supply-demand imbalance that may drive prices up or down. Global trade agreements and collaborations, on the other hand, can foster a more stable environment for diamond trading.

Political Instability

Political instability can significantly impact diamond prices. In regions where diamond mining is a significant industry, conflicts, sanctions, or governmental disruptions may result in supply chain interruptions, volatile markets, and unpredictable price fluctuations. For instance, GEM Diamonds recently noted that market volatility caused by the invasion of Ukraine by Russia contributed to a decline in diamond prices.

Additionally, lab-grown diamonds are becoming more prevalent in the market and can also be affected by political instability, as regulatory frameworks and government policies evolve. This can potentially lead to further diamond price fluctuations.As we continue to analyze the diamond market, it is important to consider these economic and geopolitical factors when predicting diamond prices. Time will tell how these elements will shape the diamond industry and affect consumer purchasing decisions.


Is diamond losing value?

Diamonds do not necessarily lose value over time, but their value may fluctuate depending on market conditions and other factors. However, diamonds are rare and finite, which means they can retain or even appreciate in value over the long term.

Why are diamonds more expensive now?

The price of diamonds is affected by various factors such as supply and demand, production costs, and market trends. Currently, the demand for diamonds is high, while the supply is limited due to a decrease in diamond mining and production, leading to higher prices.

Are diamonds still in high demand?

Yes, diamonds are still in high demand due to their rarity, beauty, and cultural significance. The demand for diamonds is driven by various factors such as consumer preferences, economic growth, and marketing efforts by the diamond industry.

Are diamonds worth more now than 20 years ago?

Yes, the average diamond price has increased from 20 years ago. However, there has also been cumulative inflation over the same time period, meaning that the true appreciation in value of a diamond is very small.


Tthe diamond market is expected to experience fluctuations in prices due to various influencing factors. As we have seen earlier, the price of a 3-carat lab-grown diamond has dropped significantly in recent years, and this trend might continue as suggested by the demand for lab-created diamond jewelry increasing as prices fall according to Jeweller Magazine.

However, a slow start to the diamond market is anticipated, with the possibility of improvement in the second half of the year as noted by Rapaport. The continued downward trend in diamond prices at the beginning of this year has also been predicted by JCK. This information suggests that diamond prices may not necessarily increase, but instead, we might witness fluctuations throughout the year.

When considering these factors, it is important to recognize that the diamond market, like any other market, is influenced by global trends and economic conditions. One should always be cautious when making predictions about future pricing trends, especially as unforeseen events can easily impact the overall market dynamics.

So, what does this mean for diamond enthusiasts and investors? Should one shy away from purchasing diamonds due to these uncertainties? While it’s wise to be cautious, it’s also essential to carefully analyze the particular trends and factors influencing each specific diamond category. Stay informed, make well-informed decisions, and ultimately, invest in diamonds that align with personal values, preferences, and financial goals.

Disclosure: We only recommend products we would use ourselves and all opinions expressed here are our own. This post may contain affiliate links that we may earn a small commission at no additional cost to you.

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