How Much Have Diamond Prices Changed?

The demand for lab-grown diamonds continues to rise; however, the pace of production outpaces demand resulting in significant price reductions in the past 12 months. In the past year, 50% of engagement rings were lab-grown compared to just 2% in 2018. This diamond pricing report compares the largest online stores in the United States with example pricing of natural and lab-grown diamonds in the most popular shapes and sizes. Online lab-grown diamond prices are down 23% from this time last year.

The natural diamond market has seen a 30% decline from an all-time high in 2022. Data suggests a 5.7% drop in natural diamond prices during Q1 and Q2 2024, but as you’ll see in our comparisons below online stores have decreased natural diamond prices 18.7% from this time last year. In addition to reduced demand in the U.S., significant decreases in demand have been reported from China.

Comparing Online Stores

The advent of e-commerce has revolutionized the diamond industry, giving rise to numerous online platforms that promise convenience and competitive pricing on natural and lab-grown diamonds. By comparing these two options, we aim to shed light on the advantages and disadvantages of each, enabling you to make an informed decision based on your preferences and budget.

For this comparison we have reviewed pricing from the three largest U.S. online jewelry retailers and compare to Mikado Diamonds:

Blue Nile
James Allen
Brilliant Earth

Diamond pricing is always changing so it’s important to compare options. Each company may offer something important to you like free shipping, the ability to see the diamond at a regional retail store, one-on-one consultation, the ability to view the diamond at 30x magnification, or one may have jewelry styles you prefer over another.

The Educated Diamond Buyer

Understanding the intricacies of diamond pricing and quality is vital for any buyer. In this report, we present an analysis of the most purchased diamonds, focusing on specific shapes and qualities for comparison purposes. By examining the current market trends, we help you navigate the vast array of options available, ensuring you are equipped with the knowledge to select a diamond that meets your desires while staying within your budget.

We highly encourage diamond buyers to seek the assistance of a reputable jeweler for their purchase. While online options provide convenience, a skilled jeweler can offer personalized guidance and expertise that takes years to master. Jewelers often have access to a wide range of diamonds, including unique and exceptional stones that may not be available online. They can also provide valuable insights and recommendations based on your specific preferences and budget.

It is essential to understand that choosing a diamond solely based on the lowest price within a specific carat, color, clarity, and cut combination may not guarantee the best overall value. Factors beyond the 4Cs, such as hazy appearance, fluorescence, tints of color, and less optimal conditions within the diamond crystal, may not be accurately reflected in a grading report. A jeweler's expertise can help you assess these nuanced qualities and ensure that you find a diamond that truly meets your desired criteria and exceeds your expectations.

By consulting with a trusted jeweler, you gain access to their knowledge, experience, and the opportunity to explore a broader selection of diamonds. They can guide you through the intricacies of diamond quality, assist in finding the best deals available, and help you make a well-informed decision that aligns with your preferences and budget.

Natural Diamonds vs. Lab-Grown Diamonds

When it comes to diamonds, buyers now have a choice between natural diamonds, formed deep within the Earth over millions of years, and lab-grown diamonds, which are created in controlled laboratory conditions. In this comparison, we explore the differences between these two types of diamonds, specifically focusing on durability, visual appearance, and average pricing. By understanding these distinctions, consumers can make informed decisions that align with their preferences and priorities.

Durability is a key consideration for diamond buyers, as it determines the stone's ability to withstand wear and tear over time. In terms of durability, both natural and lab-grown diamonds possess the same exceptional hardness, scoring a perfect 10 on the Mohs scale. This indicates that both types of diamonds are highly resistant to scratching and are suitable for everyday wear. Whether you choose a natural diamond or a lab-grown one, you can be confident in their long-lasting durability.

One significant aspect that buyers often consider is the visual appearance of diamonds. In terms of optical properties, natural and lab-grown diamonds are virtually indistinguishable to the naked eye. Both types exhibit the same dazzling brilliance, fire, and scintillation that make diamonds so captivating. Under magnification, however, trained gemologists may detect subtle differences due to growth patterns and inclusions specific to each type. These distinctions are negligible and do not impact the overall beauty of the diamond.

Pricing is a significant factor when choosing between natural and lab-grown diamonds. Natural diamonds are formed through a geological process that requires immense time, pressure, and resources to extract from the Earth. Consequently, their rarity contributes to higher market prices. On the other hand, lab-grown diamonds are created in a controlled environment, utilizing advanced technology, and significantly reducing production costs. As a result, lab-grown diamonds typically offer a more affordable option compared to natural diamonds, priced at a fraction of their naturally occurring counterparts.

Although lab-grown diamonds generally have a lower price tag, prices can still vary based on factors such as carat weight, cut, color, and clarity. Additionally, market demand and availability of specific shapes and sizes can influence the pricing of both natural and lab-grown diamonds.

The choice between natural and lab-grown diamonds ultimately depends on individual preferences and priorities. Both types of diamonds boast exceptional durability, ensuring their longevity. Visually, natural and lab-grown diamonds are nearly identical, exhibiting the same breathtaking beauty. However, lab-grown diamonds tend to offer a more budget-friendly option due to their controlled production process and lower associated costs.

Whether you opt for a natural diamond, appreciating its rarity and connection to the Earth's geological history, or select a lab-grown diamond, valuing its ethical and sustainable attributes, the decision lies in aligning your desires with your budget.

As the diamond industry continues to evolve, buyers are encouraged to stay informed and explore both options, considering factors such as durability, visual appearance, and average pricing to find the perfect diamond that reflects their personal values and style.

Lab-Grown Diamond Prices

The pricing shown for each is the current lowest priced diamond matching the requirements.

Comparison #1: 1.00 ct. D/VS1/Ideal Round Lab-Grown Diamond

 2023 Average Price: $1,559
2024 Average Price: $1,310
12 Month Change: -16.0%

Comparison #2: 2.00 ct. D/VS1/Ideal Round Lab-Grown Diamond

2023 Average Price: $5,139
2024 Average Price: $4,000
12 Month Change: -22.2%

Comparison #3: 3.00 ct. D/VS1/Ideal Round Lab-Grown Diamond

 2023 Average Price: $12,766
2024 Average Price: $9,643
12 Month Change: -24.5%

Comparison #4: 4.00 ct. D/VS1/Ideal Round Lab-Grown Diamond

2023 Average Price: $23,359
2024 Average Price: $16,435
12 Month Change: -29.6%

The prices above are actual prices as of June 2023 and June 2024. The lab-grown diamond market is very fluid with a lot of activity as the popularity among consumers continues to grow. Competition from lab-grown diamond manufacturers to gain market share, combined with increased production, has led to lab-grown diamonds becoming much more affordable in the past 3-5 years.

Natural Diamond Prices

Comparison #1: 0.50 ct. G/VS2/EX Round Natural Diamond

2023 Average Price: $1,180
2024 Average Price: $994
12 Month Change: -15.8%

Comparison #2: 1.00 ct. G/VS2/EX Round Natural Diamond

 2023 Average Price: $5,129
2024 Average Price: $3,897
12 Month Change: -24.0%

Comparison #3: 1.50 ct. G/VS2/EX Round Natural Diamond

2023 Average Price: $11,589
2024 Average Price: $8,687
12 Month Change: -25.0%

Comparison #4: 2.00 ct. G/VS2/EX Round Natural Diamond

 2023 Average Price: $18,333
2024 Average Price: $16,487
12 Month Change: -10.1%

Diamond pricing is subject to fluctuations influenced by various market factors, including supply and demand dynamics, economic conditions, and changes in consumer preferences. Additionally, unique diamonds with exceptional characteristics or historical significance may command higher prices due to their rarity and desirability among collectors and connoisseurs. Understanding the dynamics of diamond pricing and staying informed about market trends can help buyers make well-informed decisions when purchasing natural diamonds.

Tips for Maximizing Value

At the heart of this report lies our commitment to providing practical tips for maximizing the value of your diamond purchase. Whether you choose to buy online or visit a brick & mortar store, we offer valuable insights on negotiating prices, identifying reputable sellers, and understanding the factors that influence diamond prices. By leveraging these tips, you can confidently navigate the diamond market and secure a diamond that represents both exceptional beauty and exceptional value.

1. Educate Yourself: Take the time to learn about the 4Cs of diamonds (carat weight, color, clarity, and cut) and how they affect a diamond's quality and price. Understanding these factors will empower you to make informed decisions and prioritize what matters most to you.
2. Set a Budget: Determine a realistic budget before starting your diamond search. This will help you focus on options within your price range and prevent overspending. Remember that value is not solely determined by carat weight; other factors like cut and clarity can significantly impact a diamond's appearance and price.
3. Prioritize Cut Quality: The cut of a diamond directly affects its brilliance and overall visual appeal. Choose a well-cut diamond that maximizes light reflection and showcases its sparkle. A diamond with an excellent cut can appear more beautiful and valuable compared to a larger diamond with a poor cut. Since only round diamonds have a cut grade it is best to consult with a jeweler for fancy shapes.
4. Consider Diamond Shape: Different diamond shapes can vary in price. Round brilliant diamonds tend to be the most expensive due to their popularity, while fancy-shaped diamonds like princess, cushion, and oval may offer better value for their carat weight.
5. Optimize Clarity and Color: Choose diamonds with slightly lower clarity and color grades that still appear eye-clean and colorless to the naked eye. This allows you to save money without compromising on the diamond's visual appeal.
6. Explore Lab-Grown Diamonds: Lab-grown diamonds often offer better value compared to natural diamonds. They can be priced up to 80% less while possessing similar physical and optical properties. Consider lab-grown diamonds as a viable option to maximize your budget without sacrificing quality.
7. Buy from Reputable Sources: Purchase your diamond from a reputable jeweler or online retailer with a track record of trust and customer satisfaction. This ensures that you are getting an authentic diamond with accurate grading and fair pricing.
8. Consider Alternative Settings: Opting for a unique or custom-designed setting can add value to your diamond purchase. A well-crafted setting can enhance the beauty of your diamond and create a personalized piece of jewelry.
9. Seek Expert Guidance: Consult with a trusted diamond professional, such as a gemologist or experienced jeweler, who can provide expert guidance tailored to your preferences and budget. Their knowledge and insights can help you navigate the market and make the most informed decision.
10. Remember, maximizing value doesn't always mean finding the lowest-priced diamond. It means finding a diamond that offers the best combination of quality, beauty, and price, aligning with your specific preferences and budget.

Disclaimer: The diamond prices shown in this article are based on market data and industry insights as of the date of writing. These prices are provided as examples for illustrative purposes only and may not reflect the current market conditions or pricing trends. Diamond prices can fluctuate over time due to various factors, including supply and demand dynamics, economic conditions, and changes in market preferences. Therefore, the prices mentioned should not be considered as a guarantee or representation of the actual prices at the time of reading or future diamond purchases. It is essential for readers to conduct their own research, consult with reputable diamond professionals, and stay updated on the current market conditions before making any decisions related to diamond purchases or investments. The information provided in this report is intended for general informational purposes only and should not be construed as investment advice.