Diamond prices have fallen to their lowest level in twenty years — roughly 70% below the historical peak of 2011. The downtrend has been virtually uninterrupted since the start of 2022, and synthetic stone factories have captured a key share of the market.

As a result, the collapse has destroyed the jewelry industry's central myth that diamonds always retain their value. Diamond mining companies, cutters, and holders of natural stones now find themselves in a market where no support levels are yet in sight.

The fall in diamond prices continues

The Bloomberg Diamond Standard Index currently stands at 2,500, whereas in 2011 it was around 8,450. The multi-year support level around 4,700, which held from 2005 to 2020, has also been broken.

Other indicators confirm the decline. The IDEX polished diamond index has nearly halved since March 2022: from 158 to about 80. A brief rebound in the spring of 2026 did not hold — afterward, the index continued to hit new lows.

US trade statistics confirm the overall weakness of demand. The September import price index for diamonds dropped to 97.6 points, breaking below the base mark of 100 set in 2000.

Different categories of stones respond to the crisis in their own way. The IDEX sub-index for standard round 1-carat diamonds is holding around 61 points, while for large 5-carat emerald-cut stones it remains around 149.

Seven reasons for the fall in diamond prices

  • Synthetic stones have displaced natural ones. In 2025, synthetic stones were used in 61% of engagement rings in the US. The wholesale price of a certified 1-carat lab-grown stone has dropped below $90.
  • Deflation of the pandemic boom. Diamond sales reached records in 2021 and early 2022 thanks to anti-crisis stimulus. Then inflation deepened inequality, and the main buyer — the middle class — began to cut back.
  • Tight monetary policy. In September, the Fed raised its key rate for the first time since 2023. On top of that, Americans have record credit card debt, which limits spending on luxury goods such as jewelry.
  • Pressure on gold. Even this metal has fallen 31% from its January high.
  • China. This year, demand in mainland China continued to fall. US and Indian sales held up better.
  • Oversupply. In the third quarter, De Beers sold 71% more rough carats, but only after cutting prices in July. The average price fell 45% — to $84 per carat.
  • Tariffs. In 2025, the US imposed a 50% customs duty on Indian goods. This hit India, the world's largest diamond cutting center. India's exports of gemstones and jewelry to the US fell 44% before the rate was reduced to 18%.

Can new owners save De Beers

The market collapse has already changed the fate of the industry's most famous company. In 2011 — at the peak of diamond prices — Anglo American bought the Oppenheimer family's stake in De Beers for almost $13 billion. Now Anglo is selling that stake for about $1 billion. On November 9, the President of Botswana endorsed a consortium led by former De Beers CEO Gareth Penny.

Large, high-quality diamonds remain in demand. However, 1-carat diamonds, the most popular for engagement rings, now compete on price with factory-produced synthetic equivalents.

Cryptalist analysis: The diamond market is undergoing a structural revaluation, not a cyclical correction: the combination of technological substitution in the budget segment and the contraction of middle-class demand is stripping natural stones of their former investment premium. As long as synthetic supply continues to grow and monetary conditions remain tight, a sustained recovery of the indices toward historical levels should not be expected. Capital seeking protection from inflation is increasingly reorienting toward alternative asset classes, including digital ones.