Is BCD romantic but can it retain its value? Prices hit a new low this century, with supply and demand imbalances and dual pressure from synthetic products.
Natural diamond prices have fallen to two-decade lows, with oversupply, economic slowdown and the rise of synthetic diamonds hitting both sides, threatening the ability to retain value. (Synopsis: Michael Sellor on 'All in Bitcoin' decision: COVID-19 made it clear to me that the dollar and gold are fake) (Background added: Is gold still worth investing? Are the most well-known safe-haven assets out of breath) The rarity and romance of natural diamonds have long been popular, but in recent years, due to a variety of factors, the market price has been declining. RapNet Diamond Index June data shows that the average price of a 1-carat diamond fell 6%, and has fallen 15% this year, hitting its lowest level since 2000. Market participants bluntly said that this is not just a short-term inventory adjustment, but an industrial structure change. According to ShopGlobalCoin statistics, the compound annual growth rate of the top 1 carat diamonds from 1960 to 2016 was only 2.6%, far lower than gold's performance over the same period. Bank of America analysis at the end of last year Structural challenges facing the industry There are many factors affecting the decline in diamond prices, but the following can be quickly summarized: Worsening supply-demand imbalance Although manufacturers have cut production, sales have fallen faster, leading to oversupply. The Impact of Synthetic Diamonds Synthetic diamonds continue to capture the market share of natural diamonds. Lab-grown diamonds cost only three to five percent of the price of natural stones of the same grade. RNZ quoted jewelry retailers as saying that "wedding ring customers are increasingly choosing synthetic styles". Rapaport had predicted that synthetic diamonds would already dominate the U.S. wedding ring market by 2024, accounting for more than 50% of engagement ring purchases. Strong performance in the gold market In stark contrast to the diamond market, gold prices have performed strongly in 2025. Geopolitical risks and a weaker dollar have pushed up demand. Industry re-tells the story, in the short term still see the supply side shrinking In the face of price bottoming, traditional brands have strengthened emotional marketing, highlighting the concept of natural diamonds "earth crystallization for hundreds of millions of years", trying to distinguish them from the synthetic stones of sustainable images. Exchange4media notes that major jewelers have introduced traceable certificates of origin to add storytelling. However, for short-term prices to stabilize, it is still up to producers to cut production. Goldman Sachs' latest report estimates that if the global rough supply is cut by another 20%, the quotation will have a chance to stop the decline. At present, all major producers have announced plans to reduce production, and whether it can rekindle demand in the future will determine whether it can regain its luster. Related reports Bank of America CEO: is developing its own stablecoin, Tether CEO secretly choked: It's time to win or lose Tether CEO: USDT can exceed $510 billion if it goes public (surpassing Costco and Coca-Cola), but there is no need for an IPO at present 〈Diamond romance but can retain value? The price hit a new low of this century, and the imbalance between supply and demand and the double squeeze of synthetic products" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".
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Is BCD romantic but can it retain its value? Prices hit a new low this century, with supply and demand imbalances and dual pressure from synthetic products.
Natural diamond prices have fallen to two-decade lows, with oversupply, economic slowdown and the rise of synthetic diamonds hitting both sides, threatening the ability to retain value. (Synopsis: Michael Sellor on 'All in Bitcoin' decision: COVID-19 made it clear to me that the dollar and gold are fake) (Background added: Is gold still worth investing? Are the most well-known safe-haven assets out of breath) The rarity and romance of natural diamonds have long been popular, but in recent years, due to a variety of factors, the market price has been declining. RapNet Diamond Index June data shows that the average price of a 1-carat diamond fell 6%, and has fallen 15% this year, hitting its lowest level since 2000. Market participants bluntly said that this is not just a short-term inventory adjustment, but an industrial structure change. According to ShopGlobalCoin statistics, the compound annual growth rate of the top 1 carat diamonds from 1960 to 2016 was only 2.6%, far lower than gold's performance over the same period. Bank of America analysis at the end of last year Structural challenges facing the industry There are many factors affecting the decline in diamond prices, but the following can be quickly summarized: Worsening supply-demand imbalance Although manufacturers have cut production, sales have fallen faster, leading to oversupply. The Impact of Synthetic Diamonds Synthetic diamonds continue to capture the market share of natural diamonds. Lab-grown diamonds cost only three to five percent of the price of natural stones of the same grade. RNZ quoted jewelry retailers as saying that "wedding ring customers are increasingly choosing synthetic styles". Rapaport had predicted that synthetic diamonds would already dominate the U.S. wedding ring market by 2024, accounting for more than 50% of engagement ring purchases. Strong performance in the gold market In stark contrast to the diamond market, gold prices have performed strongly in 2025. Geopolitical risks and a weaker dollar have pushed up demand. Industry re-tells the story, in the short term still see the supply side shrinking In the face of price bottoming, traditional brands have strengthened emotional marketing, highlighting the concept of natural diamonds "earth crystallization for hundreds of millions of years", trying to distinguish them from the synthetic stones of sustainable images. Exchange4media notes that major jewelers have introduced traceable certificates of origin to add storytelling. However, for short-term prices to stabilize, it is still up to producers to cut production. Goldman Sachs' latest report estimates that if the global rough supply is cut by another 20%, the quotation will have a chance to stop the decline. At present, all major producers have announced plans to reduce production, and whether it can rekindle demand in the future will determine whether it can regain its luster. Related reports Bank of America CEO: is developing its own stablecoin, Tether CEO secretly choked: It's time to win or lose Tether CEO: USDT can exceed $510 billion if it goes public (surpassing Costco and Coca-Cola), but there is no need for an IPO at present 〈Diamond romance but can retain value? The price hit a new low of this century, and the imbalance between supply and demand and the double squeeze of synthetic products" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".