Natural Diamond Prices Hit Record Lows as 1-Carat Stones Drop 51% and Lab-Grown Rivals Gain
Updated
Updated · CNBC · Sep 26
Natural Diamond Prices Hit Record Lows as 1-Carat Stones Drop 51% and Lab-Grown Rivals Gain
3 articles · Updated · CNBC · Sep 26
Summary
A 1-carat natural diamond now sells for $3,898 on average, down 51% from $8,007 in 2021, while the Diamond Standard Index fell to a record low of 2,490 in early August.
Oversupply from heavy Covid-era production and weaker demand have driven the slump, with cheaper lab-grown stones accelerating the shift as they can cost up to 90% less than mined equivalents.
Lab-grown center stones accounted for 61% of engagement ring sales in 2025, up 239% since 2020, as buyers redirected savings toward weddings, housing and larger-looking jewelry.
Miners are trying to tighten supply—De Beers will halt production at its Venetia mine for more than two years, and at least two other mines announced permanent closures in 2026.
Analysts still favor jewelry stocks over stones themselves, citing stronger lab-grown margins of 60% to 65%; Signet shares are up 21% in 2026 while natural diamonds remain illiquid investments.