Once cherished as cultural icons and the centerpiece of countless engagement dreams, diamonds are rapidly losing their shine as lab-grown alternatives cannibalize demand for mined stones.
According to Bank of America Global Research, the diamond price index has plunged to its lowest level in a century.
"Diamonds may be a girl's best friend, but they're your portfolio's worst nightmare," data platform Barchart posted on X.
BREAKING 🚨: Diamonds
undefined Barchart (@Barchart) June 15, 2025
Diamonds may be a girl's best friend but they're your portfolio's worst nightmare. Prices have fallen to their lowest level this century! pic.twitter.com/LbGlFChIiy
After peaking in 2012 and briefly rebounding during the pandemic, prices have completely unraveled.
As of June 15, Bloomberg’s Diamond Standard Index sits at $3,300, less than half its February 2022 peak of $6,720.
The culprit, industry analysts say, is a broader luxury slowdown and the surge of cheaper, lab-grown gems now flooding the market.
For example, in China, once a critical growth engine for luxury stones, marriage rates tumble and younger buyers shift toward gold and synthetic alternatives, according to market research firm Daxue Consulting.
"Diamonds don’t really fit in anymore despite the strong legacy of De Beers under Anglo," independent diamond analyst Paul Zimnisky told CNBC last year.
Since then, the index has only continued to slide while most other precious metals are heading in the opposite direction.
Gold outshines diamonds
While diamonds may command a higher unit price, gold is proving far more resilient, both as jewelry and as a defensive asset class.
Beyond its long-standing appeal in luxury markets, gold has fully reasserted itself as the world’s ultimate safe-haven play.
Investors have piled trillions into the metal as geopolitical tensions rise, the dollar weakens, and central banks bulk up reserves.
Spot gold has now surged over 30% year-to-date, recently topping a new all-time high of $3,500.
Goldman Sachs analysts believe the rally has more room to run. In a recent report, the bank cited $12 trillion in global central-bank reserves, a spike in ETF inflows, and growing investor demand.
"Interest rates still matter for gold prices," Goldman noted, but emphasized that easing rates only increase gold’s appeal.
The firm now sees gold climbing to $3,700 an ounce this year with upside to $3,880 in the event of a recession.
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