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Are Diamonds a Store of Value in 2026? Diamonds Are a Girl's Best Friend – Really?

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Helge Ippensen
December 9, 2025
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Why Diamond Prices Hit an All-Time Low in 2025 – And What This Means for Investors

The diamond market is currently experiencing something that seemed unthinkable for decades:
The prices of natural diamonds have fallen to the lowest level this century.
Never since 2000 have diamonds been traded so cheaply; never has their status as a store of value been so strongly questioned as it is today.

The myth of the diamond's eternal value is crumbling – and faster than the industry can react.

While gold remains stable and even benefits, diamonds continuously lose price, significance, and trust. But what is the reason for this historic slump of a gemstone that was considered the epitome of luxury for decades?


The Largest Price Drop in the Modern History of the Diamond Market

For many years, it seemed as if the diamond was beyond all doubt. Demand was stable, prices rose slowly, and the "Diamonds are forever" myth worked reliably.

However, the market has been changing dramatically for several years:

📉 Diamond Prices at Their Lowest This Century

The latest market analyses paint a clear picture:
2024/2025 marks the lowest point of the last 25 years.
Prices that once grew consistently have downright collapsed.

📉 Lab-Grown Diamonds Destroy the Old Market Logic

Synthetic diamonds are:

  • optically identical

  • available in large quantities

  • up to 80% cheaper

This eliminates the most important value factor of the natural diamond: artificial scarcity.

📉 Declining Demand in the US and China

The two most important sales markets, of all places, are buying less.
The purchasing decision is shifting – away from the status symbol, towards alternative luxury goods.

📉 Dealers Come Under Pressure – And Cut Prices Further

Many wholesalers report:

  • growing inventories

  • lower margins

  • decreasing trading volumes

What was once a coveted, scarce commodity is increasingly becoming a market with an oversupply.


A Gemstone Loses Its Luster – Why Now?

The central question is:
How could a market that was stable for decades plummet so drastically in such a short time?

It is a combination of four forces working together:

  1. Technology (Lab-Grown Diamonds)
    It removes the "rarity" prestige factor from the diamond.

  2. Changing Purchasing Behavior of Younger Generations
    Sustainability, price consciousness, and transparency become more important than luxury tradition.

  3. Lack of Price Transparency
    Consumers are increasingly unwilling to accept markets whose prices are essentially determined by marketing.

  4. Macroeconomic Uncertainty
    In uncertain times, money flows into true preservation of value – not into gemstones.

Diamonds are thus facing a structural problem that cannot be corrected with advertising.


Why One Investment Above All Proves Its Worth in 2025: Gold

While diamonds fall, what has always been historically true is once again evident:

🔸 Gold is not a lifestyle product – but a wealth anchor.
🔸 Gold has a real market value – worldwide, immediate, and independent of trends.
🔸 Gold benefits in uncertain times – diamonds lose in them.

Gold doesn't have to reinvent itself.
It doesn't have to sparkle like a gemstone.
It simply fulfills the same task it has for millennia: securing value.

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