Diamonds lose their sparkle as prices come crashing down
Diamonds lose their sparkle as prices come crashing down
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Lab-grown rocks and fewer weddings have put a huge dampener on the market. On the bright side, a big dazzler is now affordable for many. Diamonds are woven through the tapestry of human history. The ancient Greeks were enthralled by their remarkable hardness. The Koh-i-Noor alone has been at the centre of invasions, murder, superstition and larceny. Millions of marriages have been launched using diamonds as the symbol of their everlasting lustre.
![[Robert Willis, a diamond jeweller, stands over a table with jewellery and measuring equipment]](https://i.guim.co.uk/img/media/d69514044613b61247dcc2a3fe8101eda4bdb80b/1838_0_2908_3636/master/2908.jpg?width=445&dpr=1&s=none&crop=none)
So the idea that diamonds might somehow lose their value seems unnatural. And yet prices are falling fast and show no signs of stopping. Natural diamonds cost 26% less in shops than two years ago, a drop during a time of high inflation that would be extraordinary were it not dwarfed by the poor fortune of their identical twins, lab-grown diamonds, which are now 74% cheaper than in 2020.
It may not be long until Paul Simon’s girl with diamonds on the soles of her shoes is simply looking for practical footwear. “It’s a bad time to buy a diamond,” said a jeweller this weekend in Hatton Garden, the centre of the London diamond trade. “They’ll probably be cheaper in a few weeks.”.
De Beers, the biggest name in diamonds, reported last month that it began 2024 with a huge $2bn stockpile of diamonds and had not managed to shift it by the year’s end. The company has cut production in its mines by 20%, and its owner, Anglo American, has put it up for sale.
There are several reasons behind the dramatic falls, according to Edahn Golan, managing partner of Tenoris, which tracks diamond retail prices. “After Covid, there was a burst in demand for diamonds,” he said – part of the “revenge spending” that led to the post-pandemic boom in luxuries and rescheduled weddings. After that huge demand was satisfied, there was a decline. But the question is: why is it continuing?.
