Diamond Market 2022-25: Why Natural Diamond Prices Crashed

Natural diamonds are no longer the “safe investment” they once were. Prices that once soared are now heading downhill. Here are the key facts — and what you should do instead.

1. From Peak to Plunge

The diamond industry entered crisis territory after late 2022. Prices of polished and mined diamonds dropped sharply throughout 2023 and 2024. For example, indices show current price levels at historic lows for this century.

2. What’s Behind the Drop?

• Reduced demand in major markets such as China and the US.
• Rapid rise of lab-grown diamonds offering equivalent sparkle at lower cost.
• Excess inventory and a broken supply model from rough to polish.

3. The Numbers Speak

– Many categories of natural diamonds are down by approximately 30–40% versus early 2022.

– The “Diamond Prices Index™” showed an average price per carat of $9,249.78 in April 2025, down from $9,502.13 in March.

– Fancy-colour diamonds also slid: the Fancy Colour Research Foundation reported a 2.2% drop in 2024.

4. What This Means for You

If you bought a natural diamond expecting it to serve as an investment, you may face disappointment. The market has shifted — natural stones are more a symbol than a hedge.

Key takeaway: If you care about “value,” a lab-grown diamond offers the same brilliance and far lower risk.

5. Choose Differently

Lab-grown diamonds provide lower purchase price, full traceability, less speculative stress — and the exact same visual sparkle. In a market where natural diamonds are under pressure, this alternative makes smart sense.

Explore Lab-Grown Diamonds

6. Disclaimer

⚠️ This article is for informational purposes only and does not constitute financial or investment advice. Prices and market conditions may change.