Wholesale prices for natural diamonds have dropped by 30–40% compared to their 2021 peaks, reaching levels not seen in over 20 years. Retail prices for a standard 1-carat natural round diamond currently range between $3,530 and $3,860.
The market is facing pressure from a surplus of lab-grown diamonds, which are 70–85% cheaper than natural stones. Wholesale prices for synthetic diamonds have fallen by more than 75% since 2022. Between March 2025 and late 2026, synthetic prices dropped by 29.9%, while natural stones saw a 4.0% decline.
China produces over 60% of the world's synthetic diamonds. In the first half of 2026, Chinese exports of these stones increased by 65.3% year-on-year. This surge in supply continues to impact the value of mid-tier natural diamonds, though high-quality stones remain resilient.
The sales decline has affected Debswana, a joint venture between De Beers and the government of Botswana. As diamond mining is a key component of the country's GDP, the drop in demand and prices has created significant fiscal challenges.
