Diamond Prices Head Up Again

Retail diamond prices in the second half of 2008 experienced one of the largest decreases in decades and followed by relatively no price changes up or down in 2009.  However, rough diamond prices in 2009 were up by about 15% and they have increased that much already in 2010.  As a result, there is significant pressure on polished diamond prices to move upward.

With the U.S. economy beginning to recover and the U.S. consumers typically purchasing about half the world’s diamonds and diamond jewelry, retail prices are moving upward.  The economies of other diamond-consuming countries are also showing signs of recovery so the global demand for polished diamonds is expected to rise in 2010.

At the end of January 2010, there was an industry wide price increase for diamonds over 3.0 carat weight with price increases ranging from 1.5% to 3.5% depending on carat weight, color and clarity.  In mid-February, another industry wide price increase occurred for round diamonds in the 1.00 to 1.99 carat range with at least H color and VS2 clarity and had increases in the 1.0% to 5.0% range depending on carat weight, color, and clarity.

It is only a matter of time before we see price increases for fancy (everything but round) shaped diamonds under 3.0 carats and for round diamonds in the 2.0 to 2.99 carat weight range.

These early year increases will not be the last increases as projections are for polished diamond prices to rise by double-digits for 2010.  For diamond shoppers, this means that the best prices are going to be had now rather than later this year or in the foreseeable future.  Of course, the lesson we have learned in the past two years is that projections for global economies are anything but certain.

Comments

[Daniel]

I expect prices to continue rising for the next few months.

[wnc]

Great web site, it seems you have created valuable user content, well worth the visit. The internet needs more quality sites like this one.

[gemmolog]

Could this have any proportional relation with the De Beers closing a lot of its activities over the last 2 years to accommodate the decrease in the market?

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Denny's Response

As many diamond mines approach the end of their economic life, they are being shut down by mine owners like De Beers. While many diamond mines were temporarily closed during the global recession, the simple fact is that worldwide diamond production from new mines is not keeping pace with the worldwide demand increases and the closing of old mines.

[Diamond Specialist]

Diamonds are good investments. Just a tip, buying used diamond of good quality is like buying a brand new diamond but in a lesser cost. You can resell it after redesigning and cleaning it in a much higher price.

[white gold diamond earrings]

This is good news to diamond business men but bad news to consumers. I just hope there will be a time when they will really drop the price of diamonds.

[jordan 6]

Could this have any proportional relation with the De Beers closing a lot of its activities over the last 2 years to accommodate the decrease in the market?

[DiscountDiamondRingsOnline]

great article! shopping for diamonds are sure to be pricey

[artdecodiamonds]

Hi i agre.. great blog. I wrote a blog about diamonds and jewelry prices rising:

[diamond lovers]

Diamonds are a safe investment the price rarely fluctuates in fact it's common knowledge the wealthy keep their money in diamonds and precious jewels. Thanks for your informative blog.

[discount diamond rings online]

good news for diamond buisness men!

[titanium jewellery]

As many diamond mines approach the end of their economic life, they are being shut down by mine owners like De Beers. While many diamond mines were temporarily closed during the global recession, the simple fact is that worldwide diamond production from new mines is not keeping pace with the worldwide demand increases and the closing of old mines.

[Ladies Engagement Rings]

Diamonds can be a good investment option as prices going higher and higher. So its good news for all consumers. Buy it when they really drop the price.

[vince shrmn]

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[Breths Denis]

It is going to happen in coming years too. It is not going to fall down but will stay steady or increase.

[diamond earrings for women]

Ya its true!!!

[cheap silver jewellery]

Informative site! but I am expecting the price will go down!

[diamond wedding rings melbourne]

Thanks for shaping the information,even though it seems not a good news for me as I am going to buy a diamond wedding ring soon.

[Diamond Prices]

I think diamond prices are based on a number of factors. In some ways, diamond pricing can be seen as an imperfect science. Have a lot of things to consider especially a lot of competitors nowadays. However, it's important to know the basics about diamonds and that's one of the keys.

[louboutins on sale]

Yes, Diamonds are good investments.

[Diamond Engagement Rings]

Well .. i think its one of the best things to invest on!!

[Diamond Carat Weight]

That is some inspirational stuff. Never ever knew that opinions might be this varied. Thanks for all of the enthusiasm to offer you such useful data here.

[Tracy]

Would you please expect the 2012 diamond prices will rise or decreases?

[gold bracelets]

While many diamond mines were temporarily closed during the global recession, the simple fact is that worldwide diamond production from new mines is not keeping pace with the worldwide demand increases and the closing of old mines.

[Rock]

Any Recent Updates?

[stephanie]

wow guys this is insane. i have so much diamond jewelry from my ex fiancee....hopefully i canmake lots of money off it ;)