While diamond demand has remained steady over the last several years, the increased demand for natural diamonds has actually gotten quite a bit higher over the past few months. Few are sure exactly what’s causing this increase, but one thing is clear - now more than ever, people want beautiful, natural diamonds.
Jewelry Sales On the Rise
Many companies reported a serious increase in jewelry sales in May of 2021, and most believe it was the result of the reopening of the economy. One study found that jewelry sales in the United States alone more than tripled, and spending per customer increased by almost 45%.
While some believe this increase was just due to the reopening of many stores, others believe people are looking to refresh their wardrobes for an eventual return to work.
It’s Not Just Jewelry
It’s not just diamond jewelry that is in high demand right now. Diamonds themselves are in equally high demand, and they’re facing some shortages as well. The Gemological Institute of America reported that India was experiencing a shortage of rough diamonds, and that shortage means traders are struggling to find the rough diamonds they need to polish and then sell to wholesalers and dealers.
Not only are production numbers struggling, but so too are grading numbers. The GIA has been working at reduced capacities since the start of the pandemic, and that has resulted in real delays for those looking for graded stones. The backlog is likely to continue to create problems for the industry.
With demand in the U.S. and other countries up more than ever, it’s become a struggle, even for big names like De Beers. The company reported that they’ve depleted much of their rough inventory over the course of the past four months, so they have a much smaller supply than usual. That led the diamond giant to yet another complication of increased demand - higher prices.
The New Price of Diamonds
At the start of June, De Beers (and many other companies) looked to increase their diamond prices by up to five percent. It’s a direct result of the high demand for rough diamonds coupled with the lower production numbers.
Market analysts expect the new price of diamonds to become the standard well through this year as more people than ever want these beautiful stones, but mining and grading backlogs continue to be the norm. Prices of diamonds have yet to stabilize, and that could mean paying even higher prices well into next year.
What It Could Mean For Your Next Purchase
If you’re shopping for beautiful diamond jewelry, know that you’re not alone. Diamond value over time has always been on the increase, and that is obviously continuing. If you’re looking for the perfect diamond, there’s never been a better time to buy before the prices only go up a bit more over the course of the next year. Contact us today for more information about naturally grown diamonds or download our recent webinar about the demand for sustainable diamonds.