​Diamond Prices and Trends Over the Years (2022)

Be sure tocheck out ourdiamond price indexcompareactual prices.

Key Points:

- With continued economic growth around the world and more demand for luxury goods and decline in the mining of diamonds, it is expected that the prices of high gem quality natural diamonds will increase by roughly 6% each year until 2020.

- While the overall health of the economy influences the prices of diamonds, in general this gemstone has gained value over the years. Data shows the prices of diamonds over the past ten years have increased by approximately 32-33%, giving it an average of 4% every year.

- De Beers no longer controls the supply of diamonds as their market shares have fallen from roughly 90% in the 80s to close to 30% now. This is a good news because it shows that diamonds can hold its value even when its supply is not controlled by a large cooperation.

(Video) Diamond Pricing 101

​Diamond Prices and Trends Over the Years (1)

- While many pundits would suggest that diamond isnot a good investment, it is not necessary true. If you get the diamond from atrusted source at a close to wholesale price and it is a top gem quality stone,diamond is one of the best commodities you could own. People are not insane toinvest billions of dollars in this alluring gemstone. However, it is a different storyif you buy the gemstone at a 100-200% marked up price.

- Pure natural diamonds have earned itself valueby being one of the only gemstone that has a relative standard pricebenchmark/threshold against which you could evaluate its value similar to gold.Rapaport significantly influences this benchmark, but so does market forces.Other natural gemstones do not have this advantage, and even, at times, it isextremely hard for dealers to determine how much to pay for a particulargemstone e.g. ruby or emerald as they do not have a standard benchmark. It isall guess work when it comes to other natural gemstones.

Detailed analysis:

Determining the best price for a diamond is critical for investors and consumers alike. This rare and alluringgemstone has been around for years and, all this time, its price has been quitehigh. To understand diamond and how its market value has been over the past halfcentury or so, it is important to have a good perspective of the worldwide diamondindustry. The value of diamond has always been high since it was discovered andthe main factor that affects this is the demand of the diamond jewelry.With continued economic growth of the world, the demand of diamonds is expectedto have a positive increase in the future.

(Video) Diamond Trends with Avi Krawitz: What’s Next in the 2020s?

With increased demand forthis unique gemstone over the coming years, eventually demand will be wayhigher than the growth of diamond production. This is due to the slowdown ofcurrent mines and the lack of discovering of new mines for this mineral. Withthe increase in demand of diamonds, more and more companies have come to therealization that such demand would affect the supply and demand of diamond inthe market thus affecting prices globally.

Similar to any other goods, polished diamond prices' fluctuate like other commodities, and a range of forceslead to this increase and decrease. The price might change due to externalfactors, including basic economic ups and downs, or their maybe internalfactors, for example, traders’ expectations. To learn more about the trend ofdiamond prices, you need to have a look at a summary of the affecting forcesand how they have played a role in the market over the past half century.

If you have a most recentlook at the diamond prices for the last 10 year or so, you will notice that theprices have largely increased and decreased at a certain point. If compared toanother mineral such as gold, diamond prices haven't fluctuated as much, but they have changed nevertheless. Surveys show that the price ofdiamond over the past 8 years have increased by approximately 33%, giving it anaverage of 4% every year.

Yearly the prices of diamonds fluctuate on a moderate scale. From highto low, the process might change by about five to seven percent. In the year 2008, in August the prices of diamonds decreased to its lowest at an average ofmore than 12% compared to January of the same year due to the financial market collapse. A 12% decline is quite significant especially if it wasanother economic sector that was being affected. However, In 2011 the scenario was much different. Inthis year, the prices of diamonds rapidly increased to a record breaking 20% due to higher demand.

These changes basicallymean that there are several factors affecting the diamond. One reason might bedue to changes made by the manufacturers and wholesalers who want operations torun as per their needs. There are other contributing factors to the price ofthe diamond. When it comes to mining of diamonds, there are different types ofdiamond sizes being mined. And different sizes of diamonds, means differentprice fluctuations. With external and internal factors playing a key role indiamond price, the alternative levels of these forces on the price of a certaintype of diamond will also affect the market value.

(Video) Engagement Ring Shopping: Diamond prices in 2022 & how to buy one!

The size of the diamondwill highly affect the price of the diamond. You will find that large type ofdiamonds (weighing about three or more) will fluctuate more compared to thesmaller diamonds (weighing 2.99 carat and below, usually up to 0.50 carats).

When you look at largerdiamonds, you will notice that they have gradually increased in price over thepast fifteen years, more than doubling their prices. The 4 carat diamonds (mostactive type) tripled between the year 2004 and 2008. When you look at thechanges in prices of the smaller diamonds (0.50 to 2.99 carat) you will noticethat the change in price over the past years is smaller.

One of the factors whichplay a huge role in the prices of diamonds is the role De Beers' monopolisticcontrol of the diamond market. De Beers' is a company that plays a vital andbig role in the mining and trading of diamonds. De Beers' has upper ability toaffect the flow and prices of rough diamonds. When the prices in the marketwould go up, De Beers' would increase the supply of rough diamonds, which woulddirectly increase polished diamonds.

As the firm strongholdreduced, both the prices of the rough and polished diamonds were open to moreeconomic forces. In the year 2008, this was very evident. The price of diamondstarted shooting up at a quick rate, which was last seen more than thirty-fiveyears ago. This increase did not last long, but it was caused by a several ofeconomic factors, with some being global factors.

Another important factoraffecting diamond price is the global diamond demand by consumers. In the year2013, there was an estimated of $76 billion worth of sales which is a muchhigher number compared to the year 2012. One of the countries where diamondjewelry is higher than other countries is China.US and China are the biggestmarkets when it comes to polished diamonds, with more than 3% increase from theyears 2012 to 2013. US had an increaseof 7% while China had an increase of 12%. With the increased demand of diamond,prices will constantly keep on increasing at a steady rate.

(Video) First To Mine The Diamond, Keeps It

Recently the demand ofrough diamonds at certain times of the year has gone up and down, with pricesfluctuating. For the past few years, the price of rough diamonds has notchanged much in most markets. According to various reports, the price ofhigh-quality diamonds is believed to have dropped over the 40 years, which canbe attributed to inflation, which is an important factor in price. If youconsider inflation, you will find that some of the diamond types have losttheir values by more than 80%. This can be also be attributed to other factorswhich affect the market of diamond mining, production, and distribution.

When looking at diamondmarket price, you will notice the increase in popularity and sales of alluringcolored diamonds, which is being spearheaded by mostly Asian investors. Betweenthe year 2006 and 2014, colored diamonds (blue, pink, yellow diamonds) have hada mean appreciation of approximately 154.7%, and within the same duration thenormal colorless diamond (white diamond) increased by an estimated 62.4%. Inthe current market, China and Honk Kong are one of the dominant buyers ofcolored diamonds in the market. The increased demand and rareness of thecolored diamonds have led to an increase in prices. Since the year 2005,reports have provided info that color diamonds have increased in price.

In general, diamondprices are quite more volatile than they used to be over the past years. Thisis especially due to the decline it the cartel structure that used to be in thediamond industry. The price of diamonds is believed to continue to ride due tothe increase in demand and decrease in supply. The main factors affecting thesupply of diamond is the reducing stockpile of De Beers', increased demand ofdiamonds in China and the lack of discovering big new diamond deposits. In the20th century, the De Beers' stockpile played an important role in controllingthe prices, and since their change in business policy, the decrease of itsstockpile have affected the diamond market. A shortfall in the mined diamondswill directly lead to an increase of prices.

Diamond production was atits highest in the year 2006, with an average of 175 million carats, which hasreduced to 130 million carats annually. This is because of the low discoveryrate of Kimberlite. If new discoveries are found, it would increase theproduction of diamonds thus stabilizing the market demand, which will directlyaffect the price. More than 50 years ago, the diamond market has graduallychanged, especially with the change in control by De Beers' in the market,which was due to the discovery of large mines in Russia, Canada, and Australia.These made it harder for De Beers' to control all the rough diamonds it themarket, thus weakened their effect to alter supply and prices to their favor.Over the years, De beers market share has reduced. In the 80s it had a 90%market share, in the late 90s, their market share was at 60% and currently ithas reduced to around 33%, which has gradually affected the market of diamondand its price.

Don’t forget to check out our unique engagementrings, haloengagement rings, wholesalediamonds, engagementring settings, and custombuild options…

(Video) DIAMOND RING PRICE | ETSY RINGS WITH PRICES | ENGAGEMENT RINGS WITH PRICES | ONLINE WEDDING RINGS

FAQs

Do diamonds increase in value over the years? ›

Diamonds increase in value over time and don't offer short-term results. In fact, like other physical commodities, the price of diamonds fluctuates from time to time. The second mistake people often make is to pay too much. The first rule of investing is buying low and selling high.

How much do diamonds increase in value each year? ›

According to the Natural Colour Diamond Association, “prices for natural blue diamonds has been gradually and consistently rising between 12 and 17 percent every year over the past decade.” But, the profit you make on even the rarest of these diamonds is impacted by where and from whom you buy the diamond (i.e. how ...

What affects the price of a diamond the most? ›

The weight of a diamond has the most significant impact on its price. Since the larger a stone is, the rarer it is, one 2 carat diamond will be more expensive than the total cost of two 1 carat diamonds of the same quality.

What is happening to diamond prices? ›

In the wholesale market, diamonds are priced per unit of weight, referred to as "per carat." Updated Thursday, September 1, 2022, diamond prices moved LOWER by an average of 1.3% in August 2022. The average price per carat of all diamonds in our database was $12,665.44, down from $12,835.09 a month ago.

Will diamonds lose value? ›

Diamonds typically lose between 25 and 50 per cent of their actual worth upon resale due to market fluctuations, the markup on your ring, and the decline in diamond prices. A portion is also taken out for insurance.

How has the price of diamonds changed over time? ›

Surveys show that the price of diamond over the past 8 years have increased by approximately 33%, giving it an average of 4% every year. Yearly the prices of diamonds fluctuate on a moderate scale. From high to low, the process might change by about five to seven percent.

Is Buying diamonds A good investment? ›

Yes, diamonds are a good investment. Diamonds are more than just one of the world's most precious gemstones; they're also one of the world's most reliable investment opportunities. That's because diamonds have increased in value since their first discovery thousands of years ago.

Do diamonds appreciate in value with age? ›

In general, diamonds do not increase significantly in value over time. Outside of a small number of rare or colored diamonds, the vast majority of diamonds have decreased slightly in value over the last few years, making them a poor investment from a price appreciation perspective.

Why is diamond resale value so low? ›

People take their time and money slowly because diamonds are heavy purchases for normally special occasions like birthdays, weddings, engagements, and other special milestones like anniversaries. The high markup also covers the original costs and the slow time it takes for it to be bought.

What gives a diamond value? ›

A diamond's value is determined by its famous 4Cs: carat weight, color, cut, clarity. A value of a diamond is determined by an appraiser using these four dimensions while the value of a diamond ring adds the additional element of the quality of the band.

How much should diamonds actually cost? ›

Diamond Price Chart
Diamond Carat WeightPrice (Per Carat, Round Brilliant Cut)Total Price
1.0 carat$2,500 – $18,000$2,500 – $18,000
1.50 carat$3,300 – $24,000$4,400 – $32,000
2.0 carat$4,200 – $29,000$8,400 – $58,000
3.0 carat$7,200 – $51,000$21,600 – $153,000
3 more rows

How is diamond price calculated? ›

To calculate diamond price, first, choose a color grade (leftmost column) and a clarity grade (top row). Next, multiply the number shown at their intersection by 100, then multiply that number by the carat size. For example, an I-color grade, VVS2-clarity grade diamond would cost $3,000 per carat.

Are diamonds selling well? ›

Diamonds resell for 25% to 50% of their purchase value. So if you purchased your diamond jewelry for $1500, the resale value will be somewhere near $855-900, depending on the buyer's preferences. That's why only rare and big diamonds are good for investments.

Why are diamond prices so high? ›

Diamonds are expensive because they cost a lot to bring to market, there's a limited supply of fine quality gems, and people around the world want to buy them. It's simply supply and demand.

When should you buy diamonds? ›

September and October are often the best months to buy an engagement ring. These months are often relatively quieter times for the jewelry industry, meaning some diamond vendors may run promotions to encourage shoppers to buy during the fall season.

How much can I sell a 1 carat diamond for? ›

This is evident when you look at the average retail prices of diamonds by carat weight. On average, the retail price for one carat diamonds can be anywhere between $2,000 to $16,000, and between $8,000 to $72,000 for two carat diamonds .

What's a 1 carat diamond worth? ›

According to diamonds.pro, a 1 carat diamond costs anywhere between $1,300 and $16,500. However, a quality diamond doesn't just come down to size. When assessing diamond value, four very important factors are always taken into consideration – the four c's of diamond quality: color, cut, clarity and carat.

Which is better investment gold or diamond? ›

If you wish to find a safety lock for your savings and investment in the safest manner, go for gold. Diamonds also have strong value retention capability, but only in the long run. Even though gold carries power in terms of inflation and general value, diamonds can often have a higher resale price.

How has the value of jewelry changed over time? ›

Jewelry Prices Typically Go Up

The U.S. Bureau of Labor Statistics reported that prices between 1986 and 2021 were 82.21% higher, partially due to inflation and partly due to increasing metal prices and more.

How does inflation affect diamond prices? ›

And according to analysts led by Jason Fairclough, diamond prices have historically “outpaced” inflation, with higher prices specifically bullish for diamonds as “steeper costs mean higher marginal cost = higher price expectations.”

Do diamond prices go down in recession? ›

Hopes that the growing wealth in India and China would fill the demand gap were dashed once recession spread to Asia, prompting prices for diamonds to drop by roughly 30 percent from an August peak.

What size diamond is a good investment? ›

According to a well known diamond trade organization the ideal diamond for investment is a Round Brilliant from 1.01 to 1.49 carat, D-H in color and from IF (internally flawless) to VS2 (very slightly included) clarity.

What diamond is the best investment? ›

Diamonds that weigh between 0.50 carat and 1 carat are considered the wisest investment choices.

How much is a half carat diamond worth? ›

A half carat diamond can range in price from around $700, to as much as $3,500 or more for a flawless diamond. Diamond prices vary greatly depending on various qualities. Carat is one – higher carat diamonds almost always cost more per carat than smaller diamonds.

Do lab grown diamonds have any resale value? ›

Lab-created diamonds have very little to no resale value. That means if you buy a lab-created diamond, you won't be able to reap any part of what you paid for it. For example, if you bought this 1.20ct lab-created diamond from James Allen, you'd have a beautiful stone, yet no jeweler will buy it back.

Do diamonds lose their shine? ›

While diamonds don't lose their sparkle, they do tend to get dirty. Use the following tips to keep your diamonds brilliant and clean: Clean your ring regularly. The best way to make sure your diamond is nice and shiny is to clean it at least once a week with a mixture of water and mild dish soap.

What jewelry has the best resale value? ›

The Five Best Value Retaining Jewelry Brands
  1. Cartier.
  2. Van Cleef & Arples. ...
  3. Harry Winston. ...
  4. Tiffany & Co. Diamond Banc pays a premium for designer brands like Tiffany. ...
  5. David Yurman. Founded in the 1970s, David Yurman is the youngest jewelry brand on this list, however, the brand remains iconic within the jewelry market. ...

Why diamond is not an asset? ›

Like a car, a diamond is a depreciating asset since it loses a large portion of its value the second you buy it. Think about gold and silver. The market for them is very liquid and fungible since you can store coins, sell them at any time or even trade them later on.

How much does a 2 carat diamond ring cost? ›

On average, you can expect the cost of a 2 carat diamond to widely vary depending on its shape, cut quality, clarity, color, and whether it's a naturally mined or lab diamond. The varying cost can range from $5,000 to $50,000 or more.

How much is a 0.5 carat diamond worth? ›

The average price of a 0.5 carat diamond is currently $1,291 (see price chart below). 0.5 carat diamonds can cost anywhere from $955 - $1,627 depending on the diamond's shape, color, clarity, and other factors.

How much does a 3 carat diamond cost? ›

Generally, the price of a 3 carat diamond is between $19,000 and $95,000, though some are priced at more than $100,000. The cost of a 3 carat diamond engagement ring depends on a number of factors including Cut quality, Clarity, Color and Shape.

What is considered a large diamond? ›

For the average person in the U.S., any diamond at least between 2 and 2.4 carats is considered “big,” i.e., way more than enough.

Is there a diamond shortage? ›

The diamond jewelry industry is going into the year with diamond supply at historically low levels, estimated by Bain & Company at 29 million carats in 2021. “Upstream inventories declined ~40%, driven by high demand and slow production recovery, and are near the minimal technical level,” the report stated.

How can you tell if a diamond is real? ›

Most diamonds will reveal blue florescence under a black light; therefore, you'll see a medium to strong color of blue, which means the diamond is real. If you don't see the blue color and instead see a slight green, yellow or gray fluorescence then this usually indicates the gem is not a real diamond.

Are diamonds a good investment? ›

Yes, diamonds are a good investment. Diamonds are more than just one of the world's most precious gemstones; they're also one of the world's most reliable investment opportunities. That's because diamonds have increased in value since their first discovery thousands of years ago.

What's a 1 carat diamond worth? ›

According to diamonds.pro, a 1 carat diamond costs anywhere between $1,300 and $16,500. However, a quality diamond doesn't just come down to size. When assessing diamond value, four very important factors are always taken into consideration – the four c's of diamond quality: color, cut, clarity and carat.

Are old mine cut diamonds worth more? ›

Old mine cut diamonds cost less than modern diamonds because they were cut into modern shapes. Nowadays, these antique diamonds sell for as much as the modern ones because of how unique they are. The price of an old mine cut diamond between 0.5 to 0.69 ct will be around $2000.

How much can I sell a 1 carat diamond for? ›

This is evident when you look at the average retail prices of diamonds by carat weight. On average, the retail price for one carat diamonds can be anywhere between $2,000 to $16,000, and between $8,000 to $72,000 for two carat diamonds .

Which is better to invest gold or diamond? ›

If you wish to find a safety lock for your savings and investment in the safest manner, go for gold. Diamonds also have strong value retention capability, but only in the long run. Even though gold carries power in terms of inflation and general value, diamonds can often have a higher resale price.

What size diamond is a good investment? ›

According to a well known diamond trade organization the ideal diamond for investment is a Round Brilliant from 1.01 to 1.49 carat, D-H in color and from IF (internally flawless) to VS2 (very slightly included) clarity.

What diamond is the best investment? ›

Diamonds that weigh between 0.50 carat and 1 carat are considered the wisest investment choices.

What size diamond is considered big? ›

For the average person in the U.S., any diamond at least between 2 and 2.4 carats is considered “big,” i.e., way more than enough.

How much does a 2 carat diamond ring cost? ›

On average, you can expect the cost of a 2 carat diamond to widely vary depending on its shape, cut quality, clarity, color, and whether it's a naturally mined or lab diamond. The varying cost can range from $5,000 to $50,000 or more.

Why is diamond resale value so low? ›

People take their time and money slowly because diamonds are heavy purchases for normally special occasions like birthdays, weddings, engagements, and other special milestones like anniversaries. The high markup also covers the original costs and the slow time it takes for it to be bought.

How much is a 2 carat miners cut diamond worth? ›

$4,500 to $5,800

How can you tell how old a diamond is? ›

Jewelry professionals can identify the time period of a diamond by examining the shape and facets of the stone. Diamond cuts have evolved from early old mine diamond cuts to today's brilliant-cut diamonds. Trained professionals will be able to analyze the diamond to determine its approximate age.

When did diamonds stop being hand cut? ›

Antique Old Mine cut diamonds are most commonly found in jewelry from the Georgian and Victorian eras, spanning from the 1700's through the 1800's. Diamonds from this time were all cut by hand – the machines we use to cut modern diamonds was not invented until the 1900's!

Videos

1. What is a rose cut diamond , it's anatomy , price guide , google trends
(Allyours Jewels)
2. Expect Higher Diamond Prices in 2015: Leibish & Co.
(Investing News)
3. Watch Out For Skyrocketing Pink Diamond Prices
(Guildhall Wealth Management Inc.)
4. Why Engagement Rings Are a Scam - Adam Ruins Everything
(CollegeHumor)
5. Polished Trading Slower Than Usual | Rapaport Market Brief
(Rapaport)
6. HOW TO BUY A DIAMOND | ENGAGEMENT RING TRENDS 2022 | HOW TO SAVE MONEY
(Concierge Diamonds)

You might also like

Latest Posts

Article information

Author: Duane Harber

Last Updated: 08/07/2022

Views: 5767

Rating: 4 / 5 (71 voted)

Reviews: 94% of readers found this page helpful

Author information

Name: Duane Harber

Birthday: 1999-10-17

Address: Apt. 404 9899 Magnolia Roads, Port Royceville, ID 78186

Phone: +186911129794335

Job: Human Hospitality Planner

Hobby: Listening to music, Orienteering, Knapping, Dance, Mountain biking, Fishing, Pottery

Introduction: My name is Duane Harber, I am a modern, clever, handsome, fair, agreeable, inexpensive, beautiful person who loves writing and wants to share my knowledge and understanding with you.