Diamonds aren’t exactly cheap. But they’re about to get even pricier.
Tighter supply and rising demand have diamond prices climbing higher. This trend is partly fueled by an expected increase in engagements, and could lead to juicy price increases this year.
Diamonds are probably never going to be cheap. But in recent years they were about as affordable as they could get. In 2023, diamond prices across all categories dropped 30%, and prices for smaller and lower-quality diamonds hit a decade-low. But now this trend is reversing.
Prices have already started to go up, and some analysts anticipate an increase of 5% to 10% in 2024.
Demand and Supply
Last year’s price drop was primarily caused by oversupply, which, in turn, was likely an overcorrection for a pandemic-era pause on production. But this year, a recalibration of mining activity and the G7 ban on Russian diamonds could tighten global supply by as much as 30%.
Meanwhile, U.S. luxury purchases — engagement rings in particular — are regaining popularity among American consumers, and analysts see growing investor interest in diamonds as a hard asset as well.
Read more reporting here.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.