The global diamond market is experiencing a sustained period of correction, as evidenced by the latest pricing data for 1 December. This report confirms another week of broad-based declines affecting both round brilliant and fancy-shaped diamonds.

The prevailing trend shows more price reductions than increases across most size, quality, and shape categories, signaling continued pressure on wholesale and retail pricing structures. While specific niches particularly higher-quality stones above 2 carats show resilience, the overall market trajectory remains downward. This analysis delves into the granular price movements, explores underlying market drivers, and provides context for traders, retailers, and investors navigating this complex landscape.

Detailed Analysis of Round Diamond Price Movements -

The Sub-1.50 Carat Segment:

The most pronounced weakness persists in smaller round diamonds. For stones in the 1.00 – 1.24 carat range with top-tier color (D) and clarity (IF–VS2), prices have retreated by -1% to -3.5%. This segment faces headwinds from reduced discretionary consumer spending and a shift in millennial and Gen Z preferences, who are increasingly allocating luxury budgets to experiences and technology over traditional luxury goods. For retailers, this presents both a challenge and an opportunity to acquire inventory at more accessible price points.

Explore current listings for round diamonds under 1.50 carats on our CaratX Diamond Marketplace to assess real-time pricing.

The 1.50 – 1.99 Carat Range: Moderate Declines

Diamonds in the 1.50 – 1.99 carat range, spanning colors D–F and clarities IF–SI1, saw declines of -0.5% to -2.5%. This category is often considered the "sweet spot" for engagement rings in many Western markets. The price softening here suggests that even core demand segments are not immune to broader economic forces, including inflation concerns and economic uncertainty.

According to the Gemological Institute of America (GIA), the consistent grading standards across this size range make it a highly liquid category, yet current market dynamics are testing that liquidity.

Mixed Signals in the 2.00+ Carat Category -

The market narrative becomes more nuanced for larger stones. For 2.00 – 2.99 carat rounds with G–J color and VS1–VS2 clarity, prices fell -1% to -2.5%. This indicates that buyers in this segment are prioritizing size over top-tier color, accepting slight tint in exchange for greater carat weight at a managed budget.

Conversely, a rare bright spot emerges in the 2.00 – 2.99 carat range with D–G color and IF clarity, where prices increased by +1% to +2%. This underscores a persistent flight to quality among high-net-worth buyers and collectors. Investment-grade diamonds with exceptional specifications continue to be viewed as a store of value, even during market downturns. For sellers with such premium inventory, platforms like CaratX’s Premium Diamond Portal offer access to an international audience of serious buyers.

Fancy Shape Diamonds:

Fancy cut diamonds including ovals, cushions, pears, and emeralds continue to face significant price pressure, a trend now lasting several quarters. The popularity boom experienced during the pandemic, driven by social media and celebrity influence, appears to be normalizing.

Sharp Declines in Mid-Size Fancies -

The most severe corrections were observed in the 0.70 – 0.79 carat range (D–G / IF–VS2), plummeting -2% to -7%. Similarly, 1.00 – 1.24 carat fancy shapes (D–G / VVS1–VVS2) fell -1.5% to -3.5%. This disproportionate impact on fancy shapes suggests a market saturation following a period of overproduction to meet earlier demand spikes. Retailers looking to diversify their offerings with fancy shapes can source at attractive prices through our Fancy Shape Diamond Collection.

Larger Fancies Show Relative Stability -

Larger fancy diamonds in the 2.00 – 2.99 carat range (F–G / IF–VS1) saw more modest declines of -0.5% to -2.5%. This relative stability indicates that the market for statement fancy pieces retains a firmer foundation, likely supported by consistent demand from established collectors and the bridal market for distinctive engagement rings.

Underlying Market Drivers and Macroeconomic Context -

Several interrelated factors are contributing to the current diamond market dynamics:

Economic Headwinds: Global inflation, rising interest rates, and geopolitical tensions have dampened luxury spending. Organizations like the World Diamond Council have documented the sensitivity of diamond demand to consumer confidence indices.

Lab-Grown Competition: The accelerating market share of lab-grown diamonds continues to exert downward pressure on the entry-level and mid-market natural diamond segments. While distinct markets, the price differential is influencing consumer expectations.

Inventory Correction: Following a period of robust demand, the pipeline is now undergoing a correction. Wholesalers and retailers are optimizing stock levels, leading to discounted selling of excess inventory.

Currency Fluctuations: The strength of the US dollar impacts purchasing power in key consumer markets like India and China, affecting global demand patterns.

For sellers navigating this complex environment, establishing efficient routes to market is critical. Registering as a seller on CaratX provides access to a global buyer network across 18+ countries, helping to liquidate inventory and reach new market segments efficiently.

Strategic Implications for Buyers and Sellers -

For Buyers (B2B & B2C):

The current market presents a strategic purchasing opportunity. Identifying categories with the steepest declines such as fancy shapes in the 0.70–0.89ct range allows for advantageous acquisitions. Buyers should conduct thorough due diligence, leveraging tools like GIA grading reports.

Our marketplace offers a wide array of natural diamonds and gemstones at competitive prices, with the transparency needed for confident purchasing.

For Sellers:

Adaptation is key. Consider:

Portfolio Rebalancing: Focus on holding investment-grade stones (D–G / IF–VS in 2ct+) which show resilience.

Market Diversification: Utilize multi-channel platforms to access global demand. The CaratX Seller Plan enables international sales not just of diamonds, but also of finished jewelry, maximizing revenue potential.

Transparent Pricing: In a declining market, clarity and competitive pricing win trust. Detailed pricing models are available on our Pricing & Launch Details page.

The Role of Digital Marketplaces in a Volatile Market -

In times of market uncertainty, liquidity and reach become paramount. Digital B2B and B2C marketplaces mitigate traditional geographic and relational constraints. By connecting sellers directly with a global pool of verified buyers, platforms like CaratX reduce friction, increase transaction speed, and provide valuable pricing transparency. For an in-depth look at how to leverage such a platform, review our guide on launching your products on CaratX.

Frequently Asked Questions (FAQs)

Q1: Is now a good time to buy a diamond as an investment? A: Investment-grade diamonds (typically D–G color, IF–VS clarity, 2 carats and above) continue to show stability. The current price dips in other categories may present entry opportunities, but diamond investment requires expertise and a long-term horizon. Diversify your portfolio and consult market experts.

Q2: Why are fancy shape diamonds falling more than rounds? A: Fancy shapes experienced a massive surge in demand post-2020. Current declines reflect a market normalization, potential over-supply in certain sizes, and a reversion of some demand back to classic round brilliants.

Q3: How can I, as a seller, protect my business in this market? A: Diversify your sales channels. A global online marketplace can provide essential liquidity. Consider listing your inventory on platforms like CaratX to access international buyers instantly. Also, explore selling finished jewelry, which often has higher margins.

Q4: Can I sell jewelry internationally through CaratX? A: Yes. The CaratX seller plan is specifically designed to enable sellers to list and sell diamond jewelry to both B2B and B2C buyers across our network of 18+ international countries, handling much of the logistical complexity.

Sources & Citations -

Market price change data sourced from aggregated industry reports and CaratX marketplace analytics as of 1 December.

Grading standards and definitions referenced from the Gemological Institute of America (GIA), the authoritative body in gemology. https://www.gia.edu/

Disclaimer: This blog post is for informational and educational purposes only. Diamond prices can be volatile, and past performance is not indicative of future results. Always conduct independent research and consult with professional advisors before making significant purchases or business decisions.

Ready to adapt to the current market? Whether you're looking to source diamonds at new price points or expand your selling reach, CaratX provides the platform.

Register as a seller today to start selling to a global audience, or explore our diamond marketplace to shop with confidence.

Image Credit - Robinson Jewelers