Diamond Price Trend and Forecast

Diamond Regional Price Overview

Get the latest insights on price movement and trend analysis of Diamond in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Diamond Price Trend for the Second Half of 2024

Diamond prices showed mixed trends in the second half of 2024, with significant variations across different segments. The market began showing signs of stabilization in August after experiencing downward pressure in the earlier months. Fancy shapes, particularly emeralds, radiants, and ovals, performed better than round diamonds, displaying stronger demand and price resilience.
 

Diamond Price Chart

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The festive season starting from Diwali through Christmas brought some positive momentum to the market. This was further supported by supply constraints, as major miners including De Beers and Petra cancelled their sight sales in August, creating scarcity in certain segments. The reduced supply, combined with the typical production cycle of two to three months, led to upward price pressure during the November-December period, particularly for specific diamond categories.

However, the broader market faced challenges from increased competition from lab-grown diamonds and weakened global macroeconomic conditions. This was particularly evident in export markets, where polished diamond prices remained under pressure. The Indian domestic market emerged as a bright spot, showing robust demand driven by strong economic conditions and increased spending power among upper and upper-middle-class consumers.

Analyst Insight

According to Procurement Resource, continued price pressure is anticipated in export markets while domestic demand is expected to remain strong. The growing popularity of fancy shapes and ongoing supply constraints could create opportunities for price appreciation in specific segments, though the overall market is likely to remain sensitive to global economic conditions and competition from lab-grown alternatives.
 

Diamond Price Trend for the First Half of 2024

In the first half of 2024, the diamond market experienced a notable downward trend, with prices of both natural and lab-grown diamonds continuing their decline from the previous year. The reduction in demand, particularly from key markets like China, has been a significant factor driving this trend. The rise in popularity of lab-grown diamonds, which offer a more affordable alternative to natural stones, has further intensified the pressure on prices.

This shift in consumer preferences, coupled with economic challenges and a post-pandemic focus on experiential spending over luxury goods, has led to a decrease in the overall appeal of diamonds. The industry, which has also been impacted by reduced marketing efforts over the past two decades, faces significant challenges in rekindling consumer interest. Despite these headwinds, some industry players remain hopeful that strategic marketing initiatives and a potential rebound in engagement-related purchases could stabilize the market in the latter half of the year. However, the prevailing sentiment remains cautious as the industry navigates these complex dynamics.

Analyst Insight

According to Procurement Resource, no immediate relief is in sight for the Diamond merchants as the prices are expected to remain consolidated in the coming months as well.
 

Diamond Price Trend for the Second Half of 2023

In the second half of 2023, diamond prices experienced a moderate decline, with 1-carat diamonds falling by 2.2% and smaller sizes seeing reductions as well in the Asian countries. Indian manufacturers initially struggled to reduce inventories amid a weak holiday season and competition from synthetic diamonds. The situation improved later in the month as US jewelers began holiday purchases, though economic concerns in the US and China tempered consumer confidence.

India's voluntary freeze on rough imports and discussions within the industry about banning Russian diamond imports into G7 countries have also significantly influenced market dynamics. Therefore, the holiday outlook of the diamond market in Asian countries remained bleak, with budget-focused consumers possibly shifting towards synthetic diamonds, impacting sales of natural diamonds.

Analyst Insight

According to Procurement Resource, the price of Diamond is expected to remain on the lower end of the pricing spectra as the shift in consumer preferences and prevalence of lad grown diamonds has altered the trajectory of natural diamonds' price trend.
 

Diamond Price Trend for the First Half of 2023

During the first half of 2023, the diamond prices have seen a steep fall of about 6.5% within the six months, down by about 18% from their all-time high value in Feb '22. There are several factors associated with this monumental depreciation in the diamond market.

As for the last couple of years, people have been locked inside their houses because of the COVID-19 pandemic, travel, and other experience related expenditures took a serious hit, and all that wealth got pivoted to such assets like expenditures like diamonds.

But since restrictions are over now, and travel is open, the monetary spending has been restructured. Also, the social concerns of poor mining conditions and the threat to the environment attached to natural diamonds are pushing people away. But the major push is being given by artificial diamonds, which are cheaper with no difference in properties and also don't need mining in inhuman conditions. About 90% of the world's diamonds are cut and polished in India; the export of polished artificial diamonds has gone up to about 9% from about 1% five years ago.

Analyst Insight

According to Procurement Resource, with the diamond market downsizing, the prices are expected to fall further.
 

Diamond Price Trend for Second Half of 2022

The price trend for diamonds showcased a see-saw trend throughout the third and fourth quarters of 2022. In the last two quarters, despite the negative patterns in the earlier quarters, the prices of 2-carat and 10-carat ranges grew.  The improved condition of the diamond market was due to the high confidence of producers in the demand sector and the easing of covid restrictions in China. The price trend for diamonds were positively affected by the supportive diamond market and the imbalance in the supply-demand equilibrium.

However, during the end months of 2022, diamond prices suffered as no major advances in mining outputs coupled with the doom of recession over the global market exerted a negative impact on revenues and profit margins of producers in the Asia-Pacific region. The region also suffered from the elevated raw material cost and cuts in operating profit margins which further aided the decline of the prices of diamonds.

Analyst Insight

According to Procurement Resource, the price trend for diamonds are likely to remain volatile in the upcoming quarter. As the market conditions remain unstable due to the fluctuations in demand and the fear of recession looming over the global market, diamond prices are expected to swing with these trend.
 

Diamond Price Trend For the First Half of 2022

Asia

The Indian jewellery industry is currently reeling under stress owing to the constricted supply and rising operating and transportation costs. The industry has passed the burden of price rises to consumers to protect their shrinking profit margins.

The raised diamond prices were due to the recovery measures undertaken by the jewellery industry to cover the losses incurred during the peak covid-19 season. With the US imposing sanctions against the biggest producer of rough diamonds, Alrosa (Russia), the prices in the Indian market have shot up by 30% for rough diamonds.

The Indian producers are facing a double whammy surge in diamond prices and dipping demand. With covid restrictions in China, the demand for Indian polished diamonds declined. Also, the diamond prices surged further as the US and European buyers insisted on certificates of origin after sanctions against Russian diamond exports.

Europe

With US and Europe imposing sanctions on Alrosa- the biggest diamond mining company, the global supply of rough diamonds was slashed by 40%. The price of a small diamond, usually clustered around a solitaire ring, jumped around 20% due to market conditions. The price trend of diamonds soared throughout the European market and are likely to keep on the higher side of the scale for the upcoming months.

Procurement Resource provides latest prices of Diamond. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.