Why Diamond Prices Are Surging

Pricey Luxury

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.

Market Mechanics

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.

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