Diamond Prices Crash 70% to Its Lowest Level This Century
Diamond prices have fallen to their lowest level this century, roughly 70% below their 2011 all-time high, as factories take over the stone's core market.
The slide has run almost unbroken since early 2022, breaking the industry's oldest sales pitch that a diamond holds its value. Miners, cutters, and owners of natural stones now face prices with no visible floor.
Price Collapse Confirmed
The Bloomberg Diamond Standard Index now stands at 2,500, down from about 8,450 in 2011. It also broke a floor near 4,700 that held from 2005 to 2020.
Other gauges confirm the trend. The IDEX polished diamond index has nearly halved since March 2022, sliding from about 158 to around 80. A brief rebound in spring 2026 failed, with the index now setting lower lows.
US trade data tells a similar story. The Bureau of Labor Statistics import price index for diamonds read 97.6 in September, below its 2000 baseline of 100.
Uneven Damage
The damage is uneven across different types of diamonds. IDEX's sub-index for 1-carat round stones reads about 61, against roughly 149 for 5-carat emerald cuts.
Seven Reasons for Decline
Lab-grown takeover is a major factor, with lab-grown stones featured in 61% of US engagement rings in 2025. A certified 1-carat lab stone now sells wholesale for under $90.
The pandemic boom unwinding also plays a role, as diamond sales hit records in 2021 and early 2022 on stimulus spending. Inflation then widened the wealth gap, with middle-class buyers pulling back.
Other factors include tighter money with Fed rate hikes, hard assets under pressure (gold dropped 31%), falling China demand, supply glut from De Beers, and US tariffs on Indian goods.
De Beers Reshaped
The crash is reshaping the industry's biggest name. In 2011, Anglo American paid nearly $13 billion for De Beers. It's now reportedly selling its holding for about $1 billion.
On November 9, Botswana's president backed a consortium led by former De Beers CEO Gareth Penny. According to De Beers, large, high-quality stones remain in demand, but the 1-carat stone now competes on price with factory output.
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