New Year, new sparkle? As the confetti settles and resolutions take flight, 2024 whispers a tempting secret: it’s the year to finally seize that diamond of your dreams! Natural diamonds have always reigned supreme in the realm of luxury, and 2024 sees them shine even brighter, offering enduring value, unmatched beauty, and a timeless expression of love and achievement.
For many, the start of the New Year includes a roadmap of celebrations, anniversaries, engagements and plans for year-end bonuses. Diamonds are one of the most recognized ways to mark those major occasions. They mark milestones, whisper promises, and add a touch of magic to everyday moments.
2024: The Year of the Diamond
A natural diamond is one of life’s most important passion assets. While there has always been an ongoing desire to purchase diamonds and fine jewelry, the start of 2024 is presenting diamond lovers and collectors stronger pricing incentives than ever before to make diamond jewelry the ultimate gift of the year. The global forecast for jewelry has all signs pointing towards the strong return for natural diamonds.
Currently, natural diamonds are being offered at a historic market value! Here’s why this year stands apart as the perfect moment to indulge in the timeless allure of natural diamonds.
Three Reasons 2024 is the Year for Natural Diamonds:
1. The Lab Grown Bubble Bursts
Lab grown diamonds have been a buzz word these last few years, offering some consumers an alternative engagement ring and jewelry option to the billions of years old majesty of a natural diamond. The introduction of lab grown diamonds caused the natural diamond market to take a substantial hit in 2022 and into 2023.
As a private luxury jeweler, and someone who has worked in luxury jewelry for decades, I have never offered my clients nor sold a lab grown diamond in my professional career. Unlike a natural diamond, lab grown diamonds hold no intrinsic value and they are oftentimes severely price inflated. The overlap of consumers considering a natural diamond versus lab grown, especially on sizes 1-5 carats, caused the natural diamond market prices to take a hit. It now presents those searching for a natural diamond a unique window of value opportunity.
2. Overproduction and Oversaturation
Several years ago, lab grown diamonds were 20-30% less than the price of a natural diamond, and now 90% less than a natural diamond (or more) is the current market normal. Lab grown diamonds have hit their floor in pricing due to an oversupply in production. The earliest lab grown diamonds were extremely small and inferior in quality. Over the last two decades, there have been improvements in technology, allowing them to cultivate lab grown diamonds faster, bigger, better and far more cost efficiently.
The market is now saturated with lab grown material priced at pennies on the dollar compared to when they were first introduced. The natural diamond market felt the impact in a substantial way during 2022 through 2023, but now that lab grown diamonds have reached a pricing floor, natural diamonds will begin to regain their established value. The natural diamond industry will never again feel the effects of lab grown ‘diamonds’ as impactful as it has in the 2020s.
“Prices of lab-grown diamonds are falling. The reason is because of simple supply and demand. So many manufacturers are coming out and flooding market with them, which is causing prices to dive.”– Mehul Sompora on CBS MoneyWatch
3. Post-Pandemic Price Correction
During the COVID-19 pandemic, many sectors of business saw elevated prices which culminated at a peak during the early part of 2022. People couldn’t travel or dine out as a way to celebrate milestone occasions. This added enhanced demand and desirability to the luxury goods sector. Diamond prices reached their all-time peak in February of 2022. Afterall, jewelry is the ultimate wearable memory, making it an ideal gift for those celebrating from confines of being stuck at home.
Diamond and jewelry prices reached new heights during that period. As the the world started to open up again, natural diamond prices began to significantly feel the impacts of market regulation and lab grown diamonds all at once. Natural diamond prices haven’t been this low in years, nor will this pricing opportunity last for long. Over the last few weeks, natural diamonds larger than two-carats are already starting to see a steady and rapid price increase.
These three factors which impacted diamond pricing are incredible anomalies in a centuries old, established and valued industry. The natural diamond industry will continue to rebound from this temporary turbulence, propelled by its deep roots in history, enduring cultural significance, and undeniable beauty.
Diamonds: The Ultimate Passion Asset
Diamonds, gemstones, and fine jewelry encapsulate the most concentrated form of transferable wealth in history. In the realm of passion assets, natural diamonds and exceptional jewelry take center stage, offering a truly unique and compelling investment opportunity in the current diamond market. The value of a natural diamond is intrinsically interwoven into our past and present. The future for natural diamonds is guaranteed to shine brightly!
Right now, the diamond market presents a rare opportunity – let me guide you through a seamless experience that blends the convenience of online shopping with the bespoke, personalized support reminiscent of traditional retail!
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As a luxury concierge jeweler, I am committed to transforming your journey into an exquisite exploration of unparalleled elegance and meaningful investment.