What’s Going On with Diamond and Jewelry Prices?
“I thought diamond never went down in value?!?” This is a common assertion we have been hearing from clients over the past couple of years. Overall, prices for diamonds (both natural as well as lab-factory made) have been in a steady decline since 2022. The chart below, courtesy of the Idex Diamond Index (idexonline.com), clearly illustrates the decline of natural diamonds since December of 2022.
Lab-grown diamonds (also called factory made diamonds) haven’t fared any better. This next chart, from pricescope.com, clearly illustrates the decline in a variety of sizes of lab-grown diamonds.
There are a combination of market dynamics contributing to this decline. Namely, increased supply of both natural and lab-grown diamonds (supply outpacing demand), changing preferences by consumers, and economic uncertainty (inflation and tariffs) across the world. In addition, lab-grown diamond hold little of any demand in the resale market whilst there is always a market for natural diamonds.
What does that mean for the consumer? Though uncertain, it stands to reason that as lab-grown diamond factories continue to increase output, the oversupply will continue to drive prices downward. Where the bottom will be is anyone’s guess, but likely even much lower than they currently are. The decline in price of natural (earth mined) diamonds seems to be slowing. In fact, there was a slight “bump” up in many natural diamond price categories after a major trade show in early June. Industry movers and shakers are doing their best to bring stability and renewed interest to natural diamonds. Remember the “A Diamond is Forever” campaign from years ago? Look for something like that to be resurrected in the coming months.
All the while that this is going on with diamonds, gold and platinum prices remain high. In fact, platinum hit a 10 year high just recently. Metal prices and tariffs always has an impact on the price of your jewelry.
What does that mean for you? Here at Gemcorp, we encourage you to periodically review your fine jewelry collection and the values listed on your insurance schedule. Now is a great time for that review. It may be the case that some items may be overvalued, resulting in you paying more premium than necessary. Or there may be items that need to be appraised and insured. In doing your review, check with your agent on how claims are paid, should you have a loss. Most policies are “replacement value” in which the insurance company or their adjuster shop for the lowest price that meets the description of the lost or stolen item, which is often less that the insured amount. Insurance is expensive enough, there is no reason to pay more than necessary.
We wish you a wonderful summer! If we can assist with your appraisal needs, please give us a call for an appointment at 404-851-9489 or check our website, gemcorpatl.com.