Natural diamond prices have fallen 51% in five years — CNBC
The average price of a one-carat natural diamond has fallen by 51% over five years — from $8,007 in 2021 to $3,898 now. The Diamond Standard index, which tracks prices for investment-grade diamonds, fell to a record low of 2,490 points in early August and remained slightly above 2,500 this week, CNBC reports.
Excess inventories and cheaper alternatives
The value of natural stones is being pressured by a surplus of mined diamonds accumulated in recent years and the growing popularity of lab-grown alternatives. Diamond Standard CEO Cormac Kinney linked the excess inventories of 2023–2024 to overproduction during the Covid pandemic, as well as to declining sales of natural stones due to competition from lab-grown ones.
Lab-grown diamonds have the same chemical and physical properties as natural diamonds but are significantly more affordable. According to CNBC, a nearly colorless lab-grown diamond with very slight inclusions and an excellent cut cost about $450 on the Brilliant Earth platform. A natural stone with the same characteristics was sold for $2,800–$3,200. Depending on carat weight, cut and color, an artificially grown diamond can be up to 90% cheaper than its mined counterpart.
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According to The Knot 2026 Real Weddings Study, engagement rings with a central lab-grown diamond accounted for 61% of all engagement ring sales in 2025. This is 239% more than in 2020. Fortune Business Insights forecasts that the global lab-grown diamond market will grow from $29.46 billion in 2025 to nearly $92 billion in 2034.
Producers are limiting supply
The mining industry is trying to reduce the supply of natural stones. In July, De Beers Group said it would suspend production at its key Venetia mine in South Africa for more than two years. At least two diamond mines also announced permanent closures in 2026. Kinney believes prices for diamonds with certain characteristics are already rising on the wholesale market.
At the same time, analysts and industry participants surveyed by CNBC recommend considering shares in companies associated with the lab-grown diamond market rather than investing in the stones themselves. There is no standardized spot market for diamonds because each stone has individual parameters. According to CaratX, depending on quality, a stone can remain on the secondary market for more than a year, while several jewelers' websites state that diamonds are often sold for less than half of their original retail price when resold.
