Will Diamond Prices Go Down in 2024? Latest News & Updates

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As you sparkle with curiosity, you might be wondering, “Will Diamond Prices Go Down?” I’ve got the latest news and updates to shed some light on the trends that could affect your next glittering purchase.

Will Diamond Prices Go Down? Latest News & Updates

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 possible 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, PricePrediction.net 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.

Will Diamond Prices Go Down

Factors Influencing the Market

Several factors contribute 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, affect 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 essential to note that not all diamond categories are experiencing the same price trends. The demand and supply of each diamond shape and the surplus inventory in global circulation can influence the prices of specific diamond types. For example, oval cut diamonds are 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 decrease in value.

Supply and Demand Dynamics

Will Diamond Prices Go Down

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 can 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 pressure 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. Still, 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

Will Diamond Prices Go Down

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 consumer demand. 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 synthetic diamonds’ environmental and ethical benefits, 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 in larger lab-grown diamonds. The appeal of these alternatives is their affordability and 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 fluctuated, 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 falling prices.

It is important to note that the prices of lab-created diamonds can still vary significantly depending on carat size, cut, and quality factors. 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 evolves, 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 searching for a beautiful and ethically sourced gem.

Economic and Geopolitical Factors

Various economic and geopolitical factors influence diamond prices. Let’s explore how currency fluctuations, trade policies, and political instability can impact the diamond market.

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 increase 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. Monitoring currency trends and considering their impact on the diamond market is essential.

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 decreased diamond mining and production, leading to higher prices.

Are diamonds still in high demand?

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.

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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Elisa Steffes
Elisa Steffes

Elisa Steffes reviews designer fashion brands and elegant pieces for a living. She also loves Old Money Brands and is passionate about writing about topics related to this classic style.
She has close to 3 years of experience in SEO and has taken the Streetstylis Pinterest account to one of the most popular magazines on Pinterest and Instagram.
When she's not working, you'll find her doing Pilates, dancing or hanging out with her friends in Malta.

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