Why are diamond prices rising?
Most of the reason is because of foreign markets–namely, China and India. These countries are demanding more and more diamonds, and this rising demand increases the price of diamonds.
In the past, the U.S. was the “big boy” in the diamond market–we were the ones that bought the most as consumers. Today, however, the fact is that we no longer buy the most diamonds from the world’s supply. Our economical circumstances are partially to blame, but much of this rises from the fact that other countries in the world are rising as economical leaders.
What does this mean for us? Well, some countries in Asia are driving up diamond prices, and as a result, we pay higher prices in the United States. Many people ask, “why are engagement rings so expensive these days?” Though a lot of the reason is a result of rising gold prices, much of that has to do with the diamond prices increasing, as well.
Is this a good thing or a bad thing? While increasing diamond prices are not pleasant for many Americans, it is a good sign that money is flowing around the world. We are, after all, in a global economy–and that includes the diamond market.
One positive point in this is the K-Jon’s diamond trade-up policy. Whenever you buy a diamond from K-Jon’s, you can always bring it back at any time in the future and get your money back to be used toward another diamond. That way, if what you really want is a little out of your budget, you can just go for something a bit smaller and upgrade to the larger one in the future.