Why diamond prices are crashing and what it means for India

Wholesale prices for natural diamonds have plummeted to a two-decade low, with costs now 30-40% below their 2021 highs, according to a recent market analysis published by TradingView. This downward trend is attributed to a combination of factors, including dwindling demand in key markets, an excess of inventory, and mounting competition from synthetic diamonds.

The decline has not been evenly distributed across the diamond market. Smaller and lower-quality natural diamonds have borne the brunt of the pressure, while larger, higher-quality stones have experienced less severe price reductions. Demand for natural diamonds has weakened in several prominent markets. De Beers, a major player in the industry, reported challenging conditions in rough diamond trading during the first half of 2026, citing geopolitical and economic uncertainty as factors affecting consumer confidence and logistics.

The impact of the price drop extends throughout the supply chain. De Beers' rough diamond production surged by 46% year-on-year to 14.9 million carats, while its total revenue shrank to $1.6 billion from $2 billion a year earlier. The company's average realized rough diamond price plummeted 32% to $105 per carat from $155 per carat in the first half of 2026, and its average rough diamond price index declined 16%.

This price reduction was primarily due to a shift in the sales mix, with a higher proportion of lower-value goods, as well as a decline in the overall rough diamond price index.