Investment performance for diamonds has significantly trailed precious metals. An investment of $100 in gold in 2011 would be worth $216 today, while the same amount in silver would yield $122. Conversely, a $100 investment in diamonds would currently be valued at only $30. The Bloomberg Diamond Standard Index, which monitors investment-grade stones, has reached its lowest point in over two decades.
The rise of lab-grown diamonds has impacted market dynamics. These stones consist of the same carbon as mined diamonds and are indistinguishable without specialized equipment. Wholesale prices for a certified 1-carat lab-grown stone currently range from $76 to $87. Consumer behavior reflects this shift, with 61% of US couples choosing lab-grown engagement stones in 2025, according to The Knot.
Retail availability has further pressured the market, with Walmart offering half-carat lab-grown earrings for $12. This shift in value has affected major industry players. De Beers, which was valued at nearly $13 billion in 2011, is reportedly in talks for a sale that may fetch approximately $1 billion due to declining demand. Analysts suggest that diamonds are increasingly viewed as poor investment assets.
Despite the decline, natural diamond prices showed a slight increase in September, according to Rapaport data. Analyst Paul Zimnisky notes that while the market is not yet worthless, individuals selling stones can typically recover only about half of their initial purchase price. Unlike gold, which maintains a global price and limited supply, diamonds face competition from factory-grown alternatives.
