yolowire.com - Prices for Diamonds continue to plummet as lab-grown gemstones flood the international market.
Diamond prices have fallen 5.7% so far this year and are down more than 30% from an all-time high reached in 2022.
Analysts are forecasting that diamond prices could decline another 15% to 20% from current levels over the next year as the industry grapples with the rise in popularity of lab-grown gems.
Lab-grown diamonds, which can cost 85% less than natural diamonds, are made in a controlled environment using extreme pressure and heat.
Lab-grown diamond sales have surged from just 2% of the worldwide diamond jewelry market in 2017 to 18.4% at the end of 2023, according to industry data.
In the U.S., which is the biggest consumer of diamonds worldwide, half of engagement rings sold this year are expected to contain a lab-grown diamond.
De Beers, which has long had a near monopoly on the market for natural diamonds, was forced to cut prices by 10% at the start of 2024 to boost sales
Moving forward, De Beers might be forced to lower prices even more, say analysts.
Other factors contributing to declining diamond demand and prices include waning sales in the key market of China and lower marriage rates globally.
Analysts also say that people no longer view diamonds as a financial investment whose value appreciates over time.