Count back to about a decade ago, people will say that diamonds are among the most expensive items you can buy. But in recent years, there has been an observable steady decline in their cost.
There are many factors that add to this trend and it’s not because diamonds are losing their appeal. Diamond rings are still the best way to use for sealing matrimony or to be used as engagement rings.
For a better grasp of the true information, here are some of the main factors why diamonds are getting a price cut.
This is something we cannot ignore. The lockdowns due to the pandemic have affected the majority of world industries and the diamond industry is not exempted.
Since there are limited movement and gathering, sales events, which are a major factor in moving diamonds and helping its economy, have been canceled.
Mining has also been put to a halt, so the production of mined diamonds is also reduced or even stopped.
Another major effect of the pandemic is that people stopped buying diamonds altogether which resulted in a surplus of these gems. That alone had a significant effect on the declining prices of diamonds.
The Downfall of Diamond Guardians
Most diamond producers Alrosa in Russia and global leader De Beers have been seen to have a decline in their production.
De Beers had to close their branches in major cities which shows that even they can be affected by the decline in demand and different factors.
They are also leading the charge in cutting down the price of diamonds. As the perceived leader in the diamond industry, smaller companies and organizations are set to follow their price cut.
Consumers are Looking for Alternatives
There is no denying the fact that couples looking for their wedding rings are looking for alternatives that they can buy with their set budget. Even with the beauty and allure of a diamond with a great cut and quality, couples value saving a little more than investing in diamonds.
Aside from other types of gemstones, couples are also looking to solid bands as their wedding rings. One proof of this is that global leaders in jewelry Tiffany showed a significant decline in their holiday sales several years ago.
The price cut on diamonds may seem like alarming news to some, especially to those who are investing in them. But if you are a consumer and a collector, this may be an ideal time to purchase a diamond.
While we do not know if the prices will go up again to its prime level, the value of having a diamond be a symbol of your love and dedication will never fade away.