In 2023, prices for rough diamonds, which are unpolished and uncut stones, have seen a decrease due to reduced interest in luxury goods post-pandemic
The Zimnisky Global Rough Diamond Index reports that rough diamond prices are currently at their lowest point in a year
Analysts in the diamond industry attribute this price slump to a decline in sales at jewelry counters
During the pandemic, as people spent less on dining and travel, they had more disposable income for discretionary purchases, including diamonds
Consumer preferences have shifted towards spending on experiences like dining out and traveling, causing a decrease in demand for luxury goods such as diamonds
The diamond market heavily relies on consumer demand, which influences both rough diamond and retail prices
Retailers invest substantial amounts in advertising to stimulate consumer demand for diamond jewelry
The recent drop in rough diamond prices follows two record-breaking years in rough diamond sales in 2021 and 2022
However, lower rough diamond prices do not necessarily translate into lower prices for consumers, as retailers often maintain their price points to protect their profit margins
Despite falling rough diamond prices, the cost of a one-carat round diamond at a jewelry store is, on average, 3% higher in 2023 compared to January 2020