Diamond Prices Fall to Record Lows Amid Supply Glut and Rise of Lab-Grown Alternatives
Natural diamond prices have dropped by more than half over the past five years. According to data from Rapaport Group, a 1-carat stone now averages $3,898 compared to $8,007 in 2021. The Diamond Standard Index has also hit record lows at around 2,500 as of early August. The decline is attributed to an oversupply from increased mining output during the pandemic and a growing shift toward lab-grown diamonds. These synthetic alternatives have identical physical properties but are significantly cheaper—up to 90% less in some cases—which has attracted budget-conscious consumers for engagement rings and fashion jewelry. Engagement ring sales with lab-grown stones rose sharply, reaching 61% of all such sales by 2025. The natural diamond industry is responding to the pressure from lab-grown competition. De Beers Group and others are taking steps to stabilize prices amid weakening demand.
Topics: diamonds lab-grown diamonds natural diamonds price decline supply and demand