Diamond prices have fallen to multi-year lows: what’s going on

Diamond prices on the global market have fallen to multi-year lows due to a number of factors. Since the beginning of the year, the 1-carat diamond price index has fallen by 23%. Writes UNN with reference to Rapaport. 

The price index for 1-carat diamonds, as of November 1, decreased by 22% compared to the same period in 2023 and by 23% since the beginning of this year. The price decline also affected smaller stones: the index for 0.5-carat diamonds decreased by 14% over the year and by 17% since the beginning of the year, dropping to 1.64. Several factors influence these results, one of which is that the situation in Botswana could have a significant impact on the diamond industry.

Following the recent political changes, including the election of a new president, relations with key players in the diamond market, such as De Beers, may change. The previous administration had a difficult relationship with De Beers, in particular regarding the rough sales agreement.

India is also experiencing a crisis in the diamond industry due to an oversupply of diamonds. This country accounts for about 90% of the world’s polished diamonds. The situation is complicated by low demand in key regions such as the US and China, as well as the development of artificial diamond production.

Recall

In May, Canada, together with its G7 partners , imposed additional restrictions on the import of Russian diamonds.