Over the past decade, the diamond market has seen significant changes in the value of natural diamonds. A key trend is that natural diamonds have experienced a decline in value of around 40-45%. In 2015, an average 1-carat natural diamond sold for around USD 12,560, while projections for 2026 estimate a price drop to around USD 7,050. This development is primarily due to the emergence of lab-grown diamonds, which are expected to account for up to 52% of the market by 2024. This increasing availability has significantly affected the price structure of natural diamonds.

How has the value of diamonds evolved over the past 10 years?

We look at some key facts to illustrate this trend:

• In 2019, a 1-carat natural diamond cost around USD 11,030, while lab-grown diamonds sold for USD 2,400.
• In 2023, natural diamond prices reached approximately $8,330, and lab-grown diamonds experienced further price declines.

While rare natural stones, such as fancy colored diamonds and larger stones over 3 carats, tend to retain or even increase in value due to their rarity, we generally see a 30-70% reduction in resale value for most retail diamonds compared to their original purchase price.

Factors Affecting Diamond Value

• Cut: A well-executed cut can preserve the beauty and resale value of the stone.
• Color and Clarity: Nearly colorless stones (D-F) with few inclusions have a higher market value.
• Carat: Larger diamonds have the potential for higher value.
• Certification: GIA or IGI certificates increase the buyer’s confidence in the authenticity of the stone.
• General Factors: Economic conditions and demand, especially in emerging markets such as Asia, play a major role in price changes.

It is a common misconception that diamonds automatically increase in value over time. To navigate the market successfully, we recommend focusing on diamonds with high 4C qualities and on vintage diamond jewelry or classic diamond rings and unique diamond pendants for collectors.

At Another’s Legacy, we prioritize authenticity, thorough expert review, and sustainable practices – elements that can help you make informed purchasing decisions. Contact us to explore our curated collection of diamonds and find the perfect stone that is not only an investment in beauty, but also in durability.