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  • Gaurav Khandelwal

3 Diamond Trends, 1 Big Opportunity


There’s been a lot of buzz surrounding the state of the diamond markets. Where are prices headed? Is lab-grown taking over?


I’m writing to share my thoughts.


The prices for natural polished diamonds have corrected, particularly in rounds. This was due to a variety of factors.


First, prices soared in 2021 and 2022, and the current revision is a regression to more normal prices. To lend more context, let’s observe the pricing for 2ct I-SI1+ GIA 3EX None rounds.





As you can see, prices are returning to more normal levels.


Second, global demand patterns are changing. US consumers are spending on travel again, and United Airlines reported their profit tripled in Q2. At the same time, higher interest rates now offer diamond dealers alternative avenues to drive returns, and savvy traders are reducing inventory levels to invest in other arenas. Additionally, China, the second largest diamond market (appx. 30% of global diamond consumption), is stagnant and the economy is running the risk of deflation.


Third, lab-grown diamonds are capturing market share. By unit sales, LGD are outselling natural diamonds. I speculate that the sub-8K retail engagement ring purchase is moving towards LGD options. Conversely, the $20K+ engagement ring segment (2ct+ natural diamonds) is showing strength.


This leads to the most important question: “How can we make money?” Concentrate on the wealthy consumer with investment income. Per the WSJ, "American households are earning an additional $121 billion from income on investments annually versus a year ago” The S&P 500 is also up 19%. This means the affluent consumer has more discretionary income to spend on jewelry, and it’s high time to reach out to your VIPs.


Start discussing possible clients with your sales team today. Start setting appointments with your best customers. We have beautiful bespoke pieces that are ready to present. If you want to meet clients virtually, we have 360 videos and hi-end photography.


The economy is more robust than you think, and we’re here to help. Let’s make this your best business year ever.


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