Editor’s Note
Recent market analysis indicates a significant decline in diamond prices, with lab-grown stones now priced 74% below 2016 levels and natural diamonds down 21%. This shift reflects evolving consumer preferences and market dynamics.
Recent analysis suggests that diamond prices are currently at their lowest point in several years.
According to data released by industry analyst Paul Zimnisky, as of August 2023, lab-grown diamonds are selling for an average of 1.9 million won ($1,425) per carat, while natural diamonds are priced at 6.94 million won ($5,185) per carat. This represents a price drop of 74% and 21%, respectively, compared to 2016 levels. Paul Zimnisky’s diamond market analysis is utilized by various financial institutions and retailers, including HSBC, the International Monetary Fund, Tiffany & Co., and Cartier.
Lab-grown diamonds refer to diamonds artificially created with the same molecular and chemical composition as natural diamonds. The global lab-grown diamond market was worth only about 93 billion won ($700 million) but has grown annually since 2016, reaching sales of nearly 19.5 trillion won ($14.6 billion) worldwide by 2023. Signet Jewelers and Pandora Jewelry are representative companies that handle lab-grown diamonds.
Paul Zimnisky cited several reasons for the decline in diamond prices: reduced equipment and production costs, increased production and supply over several years due to rising investment, and the resulting drop in minimum prices. He also noted that the U.S. economy has stagnated since the COVID-19 pandemic, leading Americans to live on less. Diamonds are primarily used for events like weddings, and many people have sought cheaper wedding methods, including rings, to save costs post-pandemic.
However, Paul Zimnisky predicts that the price gap between lab-grown and natural diamonds will widen in the future.
he said in an interview with Quartz.