Are Diamonds Still Forever?

Slumping Sales

On average, couples get engaged after 3.25 years of dating. But now, three years after the pandemic started, America is experiencing an “engagement gap”. Because fewer people started new relationships during the pandemic, fewer couples are getting engaged today.

According to the largest jeweler in the US, Signet Jewelers (SIG), sales of engagement rings are down dramatically since the pandemic — and the engagement gap is just one of the industry’s struggles.

Cheaper Alternatives

While older generations were content to spend three months’ salary on an engagement ring, this tradition doesn’t appear to resonate as much with younger generations. In fact, 66% of millennials hope to spend less than $2,500 on a diamond ring.

This is part of the reason many are showing a preference for lab-grown diamonds today. These artificial jewels tend to be at least half the price of the real deal. Additionally, lab-grown diamonds are generally considered more ethically-sourced than natural diamonds, a potential draw for those looking to reduce environmental impact.

Changing Times

Thanks to today’s technology, lab-grown diamonds are chemically, physically, and optically identical to real diamonds. This, combined with the cheaper price tag, may be why sales of lab-grown stones surged 73% in May 2022. Sales of natural diamonds fell 14.9% that month.

As members of the younger generations start to get engaged, lab-grown diamonds could very well become the new norm.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

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.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. 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.
SOSS23042701