What You Need To Know About Natural Diamond Prices and The Lab-Grown Diamond Alternative
You’ve probably witnessed a trend in the economy.
If you’ve recently looked into building a home, buying a new car, or stopping at your local gas station, you couldn’t miss it…
The COVID-19 pandemic has significantly impacted things like lumber, cars, and oil over the last several years.
If you’re in the market for an engagement ring, chances are you’ve noticed this trend applies to natural diamonds too!
The natural diamond and fine jewelry industry is no exception (although I think we’d all agree buying diamonds is way more fun than buying gas)!
Much like lumber and gas, we are feeling the shortage of high-quality, natural diamonds, and it’s driving prices through the roof.
Sure, market conditions and current events will naturally fluctuate and impact the cost of goods like diamonds, but natural diamond prices are at a historic high. The ongoing and unprecedented lack of supply and high demand continues to influence consumers today.
If you plan to invest in a diamond or get engaged soon, diamond ring price tags might be incredibly overwhelming! Many clients are looking for an alternative that won’t break the bank but will still allow them to symbolize their forever love with a beautiful, unique, sparkling engagement ring. I’ve heard your concerns and am so excited to offer you a bespoke alternative to customizing your engagement ring with a lab-grown diamond.
In this blog, I hope to give some context for why natural diamonds are at an all-time high and discuss the first and ONLY alternative to natural diamonds that are REAL diamonds – lab-grown diamonds!
Why Are Natural Diamond Prices So High?
Shortly after the pandemic hit, there was a plentiful rough diamond supply to sustain us through 2020. Thankfully, there was enough inventory in the pipeline to not feel an immediate shortage. It wasn’t until early 2021 that we felt the impacts of excavation and faceting that slowed and stopped during the lockdown. In early 2021 diamond demand picked up, and the pipeline was scarce.
What Triggered This Natural Diamond Price Increase?
Throughout the pandemic, the demand for natural diamonds didn’t soften. However, there was a shortage of natural diamonds.
It all comes down to natural diamond supply and demand.
Even though people were still buying natural diamonds, no new inventory became available for many months. During the height of the pandemic, mining, excavating, polishing, and faceting of rough diamonds came to a screeching halt.
As a result, vendors are taking increases, and accredited diamond distributors like DeBeers and Alrosa are marking up prices by 5% and even 10%.
Today, not only are there fewer rough and faceted natural diamonds in circulation, but buyers are also limited in their options regarding shape, size, and quality.
How Much Have Natural Diamond Prices Increased Since COVID?
It can vary! The price of diamonds, a traded commodity and scarce natural resource, will fluctuate regularly in response to lots of factors including the economy, the wholesaler, and the retailer.
Some sources indicate that the average selling price per carat of diamonds has increased by up to 40% since September of 2021.
In any market conditions pricing can be a challenging topic to navigate especially for such a large ticket purchase like this. Lots of factors will influence the cost of your diamond such as:
- Market conditions
- Loose diamond prices
- Quality of the diamond
Several industry publications predict that there will be little to no softening in the market in the next few years. As a result, natural diamond prices will probably stay high or even increase further over the next 12-24 months.
In short, natural diamond prices will most likely go up before they go down. And IF (!) they go down, it probably will not be for 2+ years.
Since the start of the Covid-19 pandemic, we have seen market conditions putting a hefty premium on natural diamond prices. This premium is leaving many clients to wonder if there is a more affordable alternative out there, where they won’t have to give up all the brilliance, sparkle, and luxury that a natural diamond is known for.
Is a Lab-Grown Diamond Right for You?
Many wonder whether a natural diamond or a lab-grown diamond is right for them.
With natural diamonds at all-time highs, we find that many clients express that they can’t get the size and quality of diamond they want within their budget. Many are now turning to lab-grown diamonds as an economical and sustainable alternative. Choosing a lab-grown diamond allows them to get the exact look they envisioned for their dream ring, while also allowing them to make an ethical and sustainable choice they can feel proud of!
Select a Lab Grown Diamond
The beauty of lab-grown diamonds is they are not in short supply, and they’re inherently less rare than natural diamonds. As a result, you’ll have more options to fit your style, preferences, and budget.
So, what is the most significant difference between a lab-made diamond and a natural diamond (other than how and where they’re made)?
Rarity and exclusivity influence how much natural diamonds are worth, while lab-grown diamonds offer the same chemical composition at a more accessible price point.
You may also wonder if natural diamonds are more expensive? The short answer is yes. But the prices are vastly different because they each serve a unique set of values and different audiences, in my opinion.
That’s why the cost of lab-grown diamonds vs natural diamonds can be so drastically different.
One is not better than another, and whatever type of diamond you choose should fit your personal preferences, values, and goals.
Looking for guidance, education and support as you search for the perfect lab-grown diamond ring?
At Reverence Jewelry, our team of GIA-certified fine jewelry designers and expert craftsmen specialize in custom-designed engagement rings and one-of-a-kind milestone jewelry. Our team draws upon over 15 diverse and varied years in the jewelry industry. These experiences allow our team to personally guide clients through the engagement ring design process.
We have a passion for not only designing custom engagement rings but walking clients through the process from start to finish.
We serve couples like you with an unmatched level of quality, integrity, and personalization so that you can understand and actualize what you really want and value in a ring.
No matter which direction you choose to go, it’s crucial that you work with someone you trust!
In a world full of options, you deserve a transparent, supportive diamond buying experience.It would be our pleasure to support you in finding the perfect lab-grown diamond and helping you custom design your dream ring. Click here to learn more about working with us.