The price of one-carat diamonds hits a ten-year low, with consumer investment shrinking by over 99%, while gold prices increased by over 400% during the same period.

Once upon a time, the advertising slogan “A diamond is forever” carried the imagination of countless consumers about love and quality. But today, this “permanence” is being ruthlessly shattered by reality. The cliff-like drop in the price of one-carat diamonds has left consumers who bought with joy ten years ago facing the harsh reality of investment depreciation.

Behind Frequent Price Cuts by Industry Giants, the Diamond Market Faces Its Most Severe Modern Crisis

In mid-January 2026, the world’s largest diamond producer, De Beers, announced a new round of price adjustments. This is the third time in two years that the company has proactively lowered rough diamond prices. Industry analysts estimate the reduction to be between 10% and 15%, affecting mainstream commercial-grade diamonds over 0.75 carats.

De Beers holds significant influence in the global rough diamond trade, controlling about 60% of the international market share. The company hosts ten auctions annually, where participating dealers have traditionally passively accepted its pricing. But the market environment has now reversed—many diamond processors are negotiating prices, and repeated price cuts are clear evidence of this shift in bargaining power.

Since peaking in 2022, the diamond industry has entered its longest-lasting downturn in modern history. Factors such as U.S. tariffs on India, the world’s largest diamond export country, a global slowdown in luxury consumption, and breakthroughs in cultivated diamond technology are converging to fundamentally reshape the ecological landscape of the diamond market.

De Beers currently faces over $2 billion in inventory pressure, and its auction success rate continues to decline. Once accounting for 90% of the global diamond supply, this century-old giant now has to resort to price cuts to stimulate demand and ease inventory crises.

From Original Price to Floor Price: Why Has the One-Carat Diamond Become the “Depreciation King”?

Data best illustrates the issue. According to the authoritative diamond price index RAPI, in 2025, the price of 0.5-carat consumer-grade natural diamonds fell by over 20%. Larger stones over 3 carats experienced milder declines, with an annual decrease of 0.4%.

More alarming are the real feedback from consumers. Media reports indicate that in 2023, CCTV Finance publicly stated that the overall price of certified diamonds dropped by 35%-40% within a year. The most popular 0.5 to 3-carat range saw the steepest declines, with sales dropping by 30%-35%.

Personal cases are even more heartbreaking. A consumer in Chengdu bought a one-carat diamond ring for 100,000 yuan ten years ago; now, the buyback offer is only 30,000 yuan. A woman in Anhui purchased a diamond ring for 18,000 yuan ten years ago, and now it can only be resold for 180 yuan—an depreciation of 99%. Similar stories are happening in Xichang, Sichuan, where a 34-year-old woman bought two wedding rings for 14,000 yuan ten years ago, and now both can be sold for less than 200 yuan. Her sentiment is most profound: “I should have just bought gold.”

Jewelry traders admit that the buyback prices for diamonds are usually only 40% to 60% of the original price, depending on quality, brand, carat weight, and other factors. Broken diamonds and small stones have almost no resale value, and only large natural diamonds over 1 carat are recognized by the industry as having investment potential.

Gold Prices Surged Over 400% in the Same Period: A Stark Contrast in Investment Choices

The most ironic comparison comes from the precious metals market. Ten years ago, in January 2016, international gold prices were around $1,100 per ounce. Today, they have surpassed $2,100 per ounce, an increase of about 100%. Considering the RMB depreciation and the performance of the domestic gold market, the actual growth in gold consumption in China over the decade exceeds 400%.

This huge price gap can be summarized in one sentence: consumers who invested the same amount ten years ago in gold saw their assets appreciate, while those who invested in diamonds experienced severe depreciation. This explains why more and more people are questioning the investment value of diamonds.

Why Have One-Carat Diamond Prices Fallen to the Bottom? Weak Demand Is the Main Cause

The fundamental reason for the market downturn is demand. In 2025, U.S. finished diamond imports decreased by 48% year-over-year, directly reflecting the collapse of demand in the world’s largest consumer market. Rising gold prices have driven consumers to shift from diamonds to lightweight jewelry, further squeezing the diamond consumption base.

Additionally, slowing global economic growth and weak consumer confidence have dampened overall luxury spending. Once considered a wedding staple and symbol of love, diamonds are losing their irrational purchase cultural premium. More young consumers are approaching diamonds with rational investment perspectives, and historical data has mercilessly discredited the idea of diamonds as a long-term asset allocation tool.

Cultivated Diamonds Rapidly Gaining Market Share, Accelerating the Shrinking of Natural Diamond Market

Adding to the woes, cultivated diamonds are rapidly capturing market share. In 2025, the global diamond jewelry market saw cultivated diamonds account for over 40% of sales, an increase of more than eight times compared to 2019. Behind this is China’s leading position in the synthetic diamond industry—by 2024, China produced approximately 22 million carats of cultivated diamonds, a 144% year-over-year increase, accounting for 63% of global output.

More critically, price competition is fierce. The retail price of cultivated diamonds has fallen over 50% from its peak. Currently, a one-carat cultivated diamond costs about 3,500 yuan, down from 8,000 yuan, only one-tenth of the price of comparable natural diamonds. In Nanyang, Henan, cultivated diamond stores are bustling, with young consumers making up 70% of buyers, and sales doubling in 2025.

Store staff say these cultivated diamonds are comparable to natural diamonds in clarity and color, and are difficult to distinguish with the naked eye. But their price advantage is overwhelming. For price-sensitive young consumers, paying one-fifth of the natural diamond price for a virtually indistinguishable piece of jewelry is an almost irresistible choice.

The Future of One-Carat Diamond Prices: Long-Term Adjustment Without Hope of Recovery

Industry analysts point out that De Beers’ current and future price cuts are partly aimed at boosting sales and partly at giving midstream processors more profit margin to stimulate end-user demand. But such micro-adjustments are unlikely to reverse the macro trend.

The continuous decline in one-carat diamond prices has become the new normal in the industry. The once “value-preserving myth” has been completely shattered; natural diamonds are rapidly shifting from investment assets to consumer goods. For consumers who bought at high prices ten years ago, the only option is to accept reality and face the books. The most important lesson for future buyers is: true love and commitment have never depended on expensive diamonds.