Expert Reveals Why Diamond Prices Are Going to Increase This Year

01 Mar 2022

When the world started to reopen in 2021 following the worst of the pandemic, the demand for diamond jewellery increased considerably at 29% higher than the previous year by some reports. 

However, supply is struggling to keep up with demand due to the fact that many of the older diamond mines which were once main sources of these precious stones are coming to the end of their life and there aren’t enough new mines to replace them. The diamond mining industry has never been able to adapt quickly to changes in demand and supply due to the sheer amount of time it would take to open up a new mine.

This lack of supply will come at the cost of the consumer. If people are looking to purchase a diamond ring, they are likely to be paying a premium for mined diamonds over the next few years at the very least. This goes for ethically mined diamonds from the likes of Canada and Botswana too.

What Jewellers Can Do to Appease Customers

1. Invest in lab grown diamonds

A simple one, is to offer your customers lab grown diamonds as an option instead. As well as having obvious ethical benefits, lab diamonds currently cost 40% less than mined diamonds for an equal quality gemstone. 

Furthermore, with mined diamonds increasing in price point and lab diamond production becoming ever more efficient and adaptable, we’re set to see this price difference increase over the coming years.

Given that lab diamonds are every bit as real as their mined counterparts, they’re the obvious choice for reducing the cost of a diamond ring.

2. Offer different metals to reduce price

It’s not only the centre stone that has an impact on a diamond ring’s price tag. The chosen metal can be another opportunity to save money.

Offer your customers the option of yellow gold which is generally cheaper than other metals. As well as material cost, yellow gold can also provide an opportunity to compromise on the colour of the diamond more so than you can with other metals, as there will already be an element of yellow reflection in the diamond.

3. Offer different gemstones

Whilst diamonds have been considered a timeless choice for many years, they aren’t the only option for fine jewellery and engagement rings. In fact, there has been a rise in interest in coloured gemstones in recent years.

The likes of sapphires, emeralds, rubies and more are all stunning alternatives and the demand versus supply for these gemstones operates much differently than diamonds.

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Source: Claire Beatson, General Manager of NIGHTINGALE