Hello, everyone! Welcome back to our By Bonnie blog, where we talk about all things diamonds! Right now, the internet is buzzing with a heated debate: Natural vs. Lab-Grown. It's a hot topic, and both sides have strong arguments!

But here's the deal – I'm all about both options. Your choice should reflect what feels right for you. However, today, we're diving even deeper into the diamond world. We're here to provide answers to the burning questions you might have. Are diamond prices really on the decline, and is that a good thing? Let's unravel the mystery together! 

Are Diamond Prices Dropping?

Reason #1 - Price Correction

Let's start with reason number one: the price correction. You see, in 2020, things went a little crazy – we're talking cars, Rolexes, and pretty much everything you use in your daily life. With the lockdowns and shortages, it felt like the whole world was on a shopping spree. The government was pumping money into the economy, interest rates were low, and people were stuck at home, buying up everything in sight. But now, we're witnessing a sort of "return to normalcy."

Let’s check out this chart for instance. A two-carat natural diamond, for instance, has actually settled back to its pre-pandemic price range. Back in 2016, it was around $22,500, and as of 2023, it's sitting at $24,000. That's about a 6% increase. But during the height of the pandemic, it soared all the way up to $31,000 and change. So, you can see the journey – it's like the diamond market took a little detour and is now finding its way back home. 

Reason #2 - Lab Grown Diamonds

Alright, let's move on to reason number two: the introduction of lab-grown diamonds. This game-changer shook up the U.S. diamond market in a big way. Take a look at this chart showing pricing data from 2016 to 2023 for a one-carat diamond.

Before the pandemic, a one-carat diamond would set you back around $7,050. But fast forward to today, and you can snag a one-carat round diamond for just $4,500, marking a whopping 35% drop in price. Now, you might wonder why. 

Well, back in the day, if you had $3,000 to $5,000 in your pocket for an engagement ring, you'd often have to compromise on carat, color, or clarity to make it work. But now, with the same budget, you can score a much larger, more dazzling lab-grown diamond ring. Check out this video here to see what kind of sparkle you can get for around 5K on a lab-grown diamond.

Reason #3 - Diamond Supply

Let's dive into reason number three, folks – the booming supply of diamonds. Check out these side-by-side charts. 

Now, focus on the green line representing lab-grown diamonds. See how the prices of both one and two-carat lab-grown diamonds have consistently dropped by a whopping 75% from 2016 to 2023, no matter the carat weight.

Now, let's talk naturals. We already discussed how one-carat natural diamonds have seen a 35% drop in price, right? But when it comes to larger carats, there's a twist – they've actually seen a 6% increase. Why? Well, it's because we Americans love our bling, especially the big stuff. Natural diamonds are primarily produced in India and China, where energy costs are low. So they keep churning them out, making my job a tad more challenging because they're overproducing lower-quality goods at a rapid pace.

In a nutshell, the oversupply of diamonds is pushing prices down. When you can reproduce something indefinitely – compared to natural diamonds, which take billions of years to form naturally – well, you get the idea.

But why do people keep buying natural diamonds instead of lab-grown diamonds? Historically, natural diamonds have been a symbol of status and a token of special moments. 

People pay a fortune for a Birkin bag, not because Coach doesn't make a genuine leather bag, but because it's exclusive. Luxury brands are experts at creating desires and making things seem rare when they're really not. Celebrities flaunt them daily, and some folks save up to buy luxury items, even if it means living on ramen noodles for a while!

Everyone wants to feel special, right? Supporters of lab-grown diamonds argue that controlling the supply and inflating prices isn't all that different from creating limited editions of luxury items, like a limited version of a Daytona watch. They're available materials, but they limit the supply to make you feel special and, yes, inflate the prices.

On the flip side, natural diamond advocates argue that lab-grown diamonds aren't real and won't hold their value. But here's the kicker – demand for lab-grown diamonds is stronger than ever. In fact, LVMH, the company that owns Tiffany & Co., is even testing the waters by considering selling lab-grown diamonds in their entry-level brand. The times, they are a-changin'!

When Is the Right Time to Buy a Diamond?

So, there you have it – the three major reasons behind diamond price shifts. Now, let's dive into a bonus point: When is the right time to buy a diamond? Well, truth be told, there isn't a one-size-fits-all answer. It's a bit like asking a real estate agent when the best time to buy a house is – they'll often say, "The right time was yesterday. You missed the boat."

But here's the bottom line: diamonds aren't just investments; they're a way to capture those special moments in life, to celebrate love, and to add a little extra sparkle and joy to your world. So, whether you're considering a natural or lab-grown diamond, the right time to buy one is when it feels perfect for you, when it makes your heart sing, and when it's a beautiful chapter in your unique story. Do you feel like it’s the right time for you already? Check out our website and browse around our diamond section! Happy diamond shopping, folks!