What You Should Know About Natural Diamond Prices
Date of Publication: July 6, 2022
You’ve probably witnessed a trend in the economy.
If you’ve recently looked into building a home, buying a new car, or stopping at your local gas station, you couldn’t miss it…
VOLATILE PRICING.
The COVID-19 pandemic has significantly impacted things like lumber, cars, and oil over the last several years.
If you’re in the market for an engagement ring, chances are you’ve noticed this trend applies to diamonds too!
The diamond and fine jewelry industry is no exception (although I think we’d all agree buying diamonds is way more fun than buying gas)!
Much like lumber and gas, we are feeling the shortage of high-quality, natural diamonds, and it’s driving prices through the roof.
Sure, market conditions and current events will naturally fluctuate and impact the cost of goods like diamonds, but natural diamond prices are at a historic high. The ongoing and unprecedented lack of supply and high demand continues to influence consumers today.
If you plan to invest in a diamond or get engaged soon, diamond ring price tags might be incredibly overwhelming! I’ve heard your concerns and know you are looking for a trusted voice to guide you through this uncertain buying process.
In this blog, I hope to give some context for why natural diamonds are at an all-time high and what that means for you if you’re looking to invest in a diamond any time soon. Plus, I’ll share creative solutions you can consider as you search for your dream engagement ring. I promise I will help you navigate these rocky, uncharted, sparkly :) waters with confidence and ease.
Why Are Diamond Prices So High?
Shortly after the pandemic hit, there was a plentiful rough diamond supply to sustain us through 2020. Thankfully, there was enough inventory in the pipeline to not feel an immediate shortage. It wasn’t until early 2021 that we felt the impacts of excavation and faceting that slowed and stopped during the lockdown. In early 2021 diamond demand picked up, and the pipeline was scarce.
What Triggered This Natural Diamond Price Increase?
Throughout the pandemic, the demand for natural diamonds didn’t soften. However, there was a shortage of natural diamonds.
It all comes down to natural diamond supply and demand.
Even though people were still buying natural diamonds, no new inventory became available for many months. During the height of the pandemic, mining, excavating, polishing, and faceting of rough diamonds came to a screeching halt.
As a result, vendors are taking increases, and accredited diamond distributors like DeBeers and Alrosa are marking up prices by 5% and even 10%.
Today, not only are there fewer rough and faceted natural diamonds in circulation, but buyers are also limited in their options regarding shape, size, and quality.
In fact, at Susie Saltzman, we work exclusively with less than 1% of the world’s natural diamonds! We choose natural diamonds based on sustainability and quality and work with a very small, highly vetted select number of diamond suppliers.
How Much Have Natural Diamond Prices Increased Since COVID?
It can vary! The price of diamonds, a traded commodity and scarce natural resource, will fluctuate regularly in response to lots of factors including the economy, the wholesaler, and the retailer.
Some sources indicate that the average selling price per carat of diamonds has increased by up to 40% since September of 2021.
In any market conditions pricing can be a challenging topic to navigate especially for such a large ticket purchase like this. Lots of factors will influence the cost of your diamond such as:
Market conditions
Loose diamond prices
Quality of the diamond
Labor
Insider Intel: Keep in mind when working with luxury retailers these companies will have some flexibility with their pricing and will often take quarterly increases on their retails. With a fluctuating cost of goods, retailers will frequently adjust their prices to respond to these changes throughout the year. This applies to goods like gold and diamonds.
When Is The Right Time To Buy A Natural Diamond?
So you’re probably wondering,
“If prices are increasing so drastically, should I just wait?”
My answer might surprise you!
Don’t postpone that engagement!
I can hear your sigh of relief from here!
If you were planning to get engaged in the next 12-24 months, you do NOT need to call off your proposal plans! While you may be hesitant to buy now, hoping that prices will drop, there’s good news and not-so-good news.
Let’s start with the not-so-good news: several industry publications predict that there will be little to no softening in the market in the next few years. As a result, natural diamond prices will probably stay high or even increase further over the next 12-24 months.
To sum it up:
Natural diamond prices will most likely go up before they go down. And IF (!) they go down, it probably will not be for 2+ years.
The good news is, if you were planning to buy sooner rather than later, it’s probably best to go ahead and start searching for your diamond now rather than risk prices inching up even more in the next few months.
It’s never too soon to start. The average timeline for a custom-designed ring is about 8-12 weeks. It’s in your best interest to get started sooner rather than later!
Unique Solutions
You may ultimately decide that a natural diamond isn’t right for you. Fortunately, there are plenty of creative ways for you to create your dream ring or heirloom without breaking the bank. Here are some of my favorites!
Repurpose A Family Heirloom
Repurposing heirlooms is one of the most meaningful ways to preserve memories and breathe new meaning into family keepsakes.
In addition, it is a creative alternative to shopping for a new natural diamond. You’ll save money and be able to custom design a one-of-a-kind piece that you’ll treasure for generations to come!
If you’re interested in working with me to repurpose your heirloom and design your dream ring, click here to schedule your complimentary consultation.
Explore Gemstones
Think outside the box! Gemstones like Sapphires are an excellent and more affordable alternative to natural diamonds. Sapphires are durable, rare, and breathtaking.
While I primarily work with diamonds, I appreciate sapphires because there are so many different types! Sapphires don’t just come in blue. Did you know rubies are actually red sapphires? You can also find pinkish-orange hues for a truly original piece or white sapphires for a diamond-like look.
Select a Lab Grown Diamond
Lab-grown diamonds are totally an option! The beauty of lab-grown diamonds is they are not in short supply, and they’re inherently less rare than natural diamonds. As a result, you’ll have more options to fit your style, preferences, and budget.
So, what is the most significant difference between a lab-made diamond and a natural diamond (other than how and where they’re made)?
Rarity and exclusivity influence how much natural diamonds are worth, while lab-grown diamonds offer the same chemical composition at a more accessible price point.
You may also wonder if natural diamonds are more expensive? The short answer is yes. But the prices are vastly different because they each serve a unique set of values and different audiences, in my opinion.
That’s why the cost of lab-grown diamonds vs natural diamonds can be so drastically different. .
One is not better than another, and whatever type of diamond you choose should fit your personal preferences, values, and goals.
Insider Intel: PSST! If you’re interested in exploring lab-grown diamond options, we’ve been cooking something up behind the scenes! Stay tuned for a BIG reveal this Summer!
Looking for guidance and support as you weigh your options?
I’m a GIA-certified fine jewelry designer specializing in custom-designed engagement rings and one-of-a-kind milestone jewelry. I draw upon over 15 diverse and varied years in the jewelry industry. These experiences allow me to personally guide clients through the engagement ring design process.
I have a passion for not only designing custom engagement rings but walking clients through the process from start to finish.
I serve couples like you with an unmatched level of quality, integrity, and personalization so that you can understand and actualize what you really want and value in a ring.
No matter which direction you choose to go, it’s crucial that you work with someone you trust!
In a world full of options, you deserve a transparent, supportive diamond buying experience.
It would be my pleasure to support you in finding the perfect diamond and helping you custom design your dream ring. Click here to learn more about working with me.