Editor’s Note
This article examines the surprising divergence between diamond and gold prices, with diamonds hitting a 25-year low while gold trades near record highs. We explore the factors behind this significant market shift.
Diamond is the hardest natural substance in the world. It is used as a gemstone. It is very rare and therefore its price is also very high. However, in recent years, diamond prices have fallen significantly. Its price has fallen by 27% in the last five years and has reached a 25-year low. During this period, gold prices have surged by 84% and are trading near all-time highs. Since 2022, diamond prices have fallen by 46%. What exactly is the reason for the decline in diamond prices…
The biggest reason for the decline in diamond prices is the growing popularity of lab-grown diamonds. This diamond, which looks like a real diamond, is not even 10% of the price of a real diamond. If a real diamond is available for 10 lakhs, lab-grown diamonds are available for just 40 to 60 thousand rupees. Also, there is not much loss if it is stolen or lost. This is the reason why people are now avoiding real diamonds and preferring lab-grown diamonds. Lab-grown diamonds are made in a laboratory. They are ready in 1 to 4 weeks. Their texture, sparkle, color, cutting, and design are exactly like natural diamonds, and their sale is also done with a proper certificate.
Also, due to rising inflation, people are avoiding luxury items like diamonds. The crisis in China’s luxury market is also weighing heavily on diamonds. In addition, the resale value of diamonds is also low. Furthermore, due to inflation and economic recession in many countries, the demand for diamonds has decreased significantly. Also, due to tensions in many countries, people are choosing gold over diamonds for investment. Gold prices have increased by 84 percent in the last five years. Last year, it reached an all-time high on several occasions.