Diamond prices have fallen to their lowest level this century, roughly 70% below their 2011 all-time high. The slide has run almost unbroken since early 2022, as factories take over the stone’s core market.
The crash breaks the industry’s oldest sales pitch that a diamond holds its value. Miners, cutters, and owners of natural stones now face prices with no visible floor.
Will Diamond Price Continue to Fall?
The Bloomberg Diamond Standard Index shown by Barchart now stands at 2,500, down from about 8,450 in 2011. It also broke a floor near 4,700 that held from 2005 to 2020.
Other gauges confirm the trend. The IDEX polished diamond index has nearly halved since March 2022, sliding from about 158 to around 80.
A brief rebound in spring 2026 failed. Since then, the index has kept setting lower lows.
US trade data tells a similar story. The Bureau of Labor Statistics import price index for diamonds read 97.6 in September, per FRED. That is below its 2000 baseline of 100.
The damage is uneven, however. IDEX’s sub-index for 1-carat round stones reads about 61, against roughly 149 for 5-carat emerald cuts.
7 Reasons Why Diamond Prices are Going Down
- Lab-grown takeover. Lab-grown stones featured in 61% of US engagement rings in 2025, according to The Knot. A certified 1-carat lab stone now sells wholesale for under $90, as a diamonds versus gold comparison showed.
- Pandemic boom unwinding. Diamond sales hit records in 2021 and early 2022 on stimulus spending, analyst Paul Zimnisky notes. Inflation then widened the wealth gap, and the middle-class buyers who drive volume pulled back.
- Tighter money. The Fed raised rates in September for the first time since 2023. Americans also carry record credit card debt, which may squeeze discretionary purchases such as jewelry first.
- Hard assets under pressure. Even gold has dropped 31% from its January record, as a recent gold price analysis showed.
- China. Demand in mainland China kept falling this year, De Beers owner Anglo American said. US and Indian sales held up better.
- Supply glut. De Beers sold 71% more rough carats in the third quarter, but only after cutting prices in July. Its average price fell 45% to $84 per carat, per data from Anglo American.
- Tariffs. In 2025, the US imposed a 50% tariff on Indian goods, hitting a major diamond-cutting center. India’s gem and jewelry exports to the US fell 44% before the rate dropped to 18%.
Can New Owners Rescue De Beers?
The crash is now reshaping the industry’s biggest name. In 2011, the year diamond prices peaked, Anglo American paid nearly $13 billion for the Oppenheimer family’s De Beers stake.
Anglo is now reportedly selling its holding for about $1 billion. On November 9, Botswana’s president backed a consortium led by former De Beers CEO Gareth Penny.
According to De Beers, large, high-quality stones remain in demand. The 1-carat stone at the heart of the engagement market, however, now competes on price with factory output.
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