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The Cut

Industry Insights by Diamond StandardIndustry Insights

Natural Diamonds: A Timeless Investment in 2024

Jan 30, 2024
7 min read
Diamond Standard

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The Shifting Diamond Market of 2023 and Beyond

In 2023, the diamond industry experienced a notable shift in the market dynamics of natural diamonds. The initial months of the year saw a downturn in their value, largely attributed to an oversupply from 2022. This was further impacted by the rising popularity of lab-grown diamonds. However, the tide began to turn in November 2023, when natural diamond prices started to ascend once again. In response to these market fluctuations, DeBeers, a globally recognized diamond mining and marketing giant, reignited the allure of natural diamonds. They achieved this by reintroducing their iconic slogan, “Diamonds are Forever,” thereby reasserting the timeless appeal of natural diamonds and consciously moving away from the lab-grown diamond segment.

Scarcity and Demand: A Balancing Act

The production of natural diamonds is dwindling, with a predicted decrease of 10-20% in operational mines by the end of the decade. This scarcity, coupled with a steady increase in demand for natural diamonds in both jewelry and financial markets, positions them for potential price appreciation. Diamond Standard has observed a surge in interest in natural diamonds as a viable investment. In contrast, the abundance of lab-grown diamonds has led to a dramatic price drop, diminishing their long-term value proposition.

Environmental Impact: Debunking Myths

The rise in popularity of lab-grown diamonds in 2023 was partly due to perceived environmental and social benefits. However, the energy-intensive process required to manufacture these diamonds has raised questions about their true sustainability. The Natural Diamond Council has been instrumental in debunking several myths surrounding lab-grown diamonds, highlighting the significant energy requirements and the ecological footprint associated with their production.

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Community Impact: The Natural Diamond Advantage

Natural diamonds have been a catalyst for transformative economic growth in regions like Botswana, where now over 90% of the population has access to clean water and electricity due to income generated by diamond mining, showcasing the positive impact of natural resources on community development. This contrasts starkly with lab-grown diamonds, which primarily benefit the companies that produce them.

Natural Diamonds: A Symbol of Timeless Value

As we navigate the dynamic landscape of the investment sectors in 2024, choosing between natural and lab-grown diamonds goes beyond personal preference. It reflects our core values, ethical stance, and commitment to preserving Earth's irreplaceable treasures. For investors, natural diamonds present a unique opportunity, offering inflation hedging, portfolio diversification, and the potential for increased returns.

At Diamond Standard, our focus remains unwavering on natural diamonds. We believe in the timeless value they offer as a solid investment option for both individual and institutional investors. Natural diamonds, formed over billions of years, carry an unparalleled authenticity. Their rarity and unique journey from the Earth's crust to exquisite jewelry pieces resonate deeply with those who value genuine, natural beauty.

We stand by the belief that natural diamonds are not just a wise investment choice but also hold intrinsic value, born from their geological origins and the positive impact they have on communities. In essence, we believe natural diamonds embody the age-old adage: Diamonds ARE forever.

Connect with the Diamond Standard Team and discover how natural diamonds can diversify your financial portfolio: Schedule a Meeting. Are you ready to explore the enduring investment potential of natural diamonds?

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