Natural Diamond Prices Hit Century Low

Multiple English price indices and market reports indicate that natural diamond prices have fallen to their lowest point this century, influenced by the expansion of lab-grown diamond supply and weakened demand for physical jewelry. Most carat-level diamond prices have been halved compared to their pandemic highs, with a year-to-date decline of about 20% according to mainstream indices.

In the current market, lab-grown diamonds, due to their lower costs and appearance and cut similar to natural diamonds, are rapidly replacing the demand for real diamonds in wedding and light luxury consumption scenarios. Under the dual pressure of shifting consumer structure and high inventory, natural diamond producers are forced to reduce production and discount prices to clear inventory in order to counteract price decline pressures. Industry leaders are also gradually lowering their guidance ranges for rough and finished diamond prices.

On the financial side, safe-haven funds are increasingly flowing into more liquid and mature pricing assets like gold and silver amid geopolitical conflicts and inflation, while the traditional logic of viewing natural diamonds as a "store of value" has clearly weakened. Related investment products and secondary market liquidity continue to shrink; the profit margins of diamond mining and jewelry companies are being squeezed, leading to a downward shift in valuation focus, while synthetic diamond and material technology companies benefit relatively from this structural price reassessment driven by cost and scale advantages.

Source: Public Information