Diamond Prices Increased by Approximately 14% Per Year from 1960 to 2016
Key Takeaways
- Diamond prices recorded an average growth of about 14% per year over more than half a century (1960 - 2016). This sustainable growth was maintained thanks to De Beers' monopoly supply control...
Diamond prices recorded an average growth of about 14% per year over more than half a century (1960 - 2016). This sustainable growth was maintained thanks to De Beers' monopoly supply control strategy, marketing campaigns that turned diamonds into a symbol of eternal love, and their characteristic as an effective inflation "hedge."
Join Jemmia Diamond in looking back at this turbulent historical journey and deciphering why diamonds have always been an "eternal" investment channel in the article below.
Diamond prices before the 21st century
Diamond prices in the period 1960 – 1980
The 1960s marked a turning point when De Beers collaborated with N.W. Ayer to carry out a campaign making diamonds a symbol of marriage.
- In 1960: The price reached about 2,700 USD/Carat. Demand in the United States surged by 55%.
- The 1970s: As inflation and recession loomed, diamonds became a target for investors seeking to preserve capital. By 1970, prices had reached 6,900 USD/Carat.
- In 1980: Prices rose sharply to 10,500 USD/Carat. This was the period when diamonds established their position as the most steadily appreciating tangible asset.
Period 1980 – 2000
During this period, the market began to see new changes as major diamond mines outside the De Beers system appeared.
- Market share changes: De Beers declined from 90% to 80% by the end of the 1990s.
- Growth rate: Diamond prices increased slightly from 10,500 USD to 13,900 USD/Carat. As the market became more flexible, the increase was no longer as sudden as before, but still maintained a steady upward trend.
Diamond prices in the period 1960 – 1980
Diamond prices experienced many fluctuations in the early years of the 21st century
| Period | Average price level | Main event |
| 2001 | ~15,100 USD/Carat | De Beers was accused of monopoly practices, prices fell slightly. |
| 2008 | Down 12% | The global financial crisis caused diamond prices to decline more mildly than other industries. |
| 2011 | Surged 21.9% | Investment demand rose to a record high after the crisis. |
| 2016 | ~30,936 USD/Carat | Inventory stockpiling policies reduced supply, pushing prices to a new high. |
Why are diamonds always a smart investment channel?
History has proven that even when the financial market collapses (such as in 2008), diamonds only fell by about 12% – a "gentle" figure compared to the chaos of real estate or stocks. With policies controlling sales volumes below production volumes, major corporations always ensure that diamonds never fall into a situation of excess supply, thereby protecting value for long-term investors.
History has proven that even when the financial market collapses (such as in 2008), diamonds only fell by about 12%
Frequently asked questions (FAQ)
Can investing in diamonds really hedge against inflation?
Investing in diamonds can hedge against inflation. The history of the 1970 - 1980 period shows that when inflation soared, diamonds were the tangible asset that held value best, attracting a large number of investors seeking a safe haven.
Why did diamond prices surge in 2011?
2011 is considered a "leap forward" with a margin of 21.9% due to economic recovery and extremely strong demand from emerging markets such as China and India.
Where should you buy diamonds to ensure global value?
You should choose GIA-authorized units such as Jemmia Diamond. Here, 100% of diamonds are brand new and unused, with international GIA certification, ensuring liquidity and the best trade-in value.
Answers to frequently asked questions
Over more than half a century, diamond prices have proven the identity of an "eternal" asset. Although the market sometimes experiences adjustments, the overall trend has always been sustainable growth. Owning diamonds is not only a way to display class but also a savvy financial strategy to protect assets across generations.
