Diamond Pricing Trends
Many factors affect the pricing trends of diamonds. The two key factors to pay attention to are the state of the economy and the supply and demand for a particular type of stone.
In strong economies, diamond prices tend to appreciate with the inflation rate. People buying diamonds as investments tend to view the investment as a cash alternative. So instead of keeping their money in a bank, they prefer to own diamonds, and the prices increase.
The supply in the diamond market is controlled by a few key mining companies. These companies tend to manage the supply levels by only releasing a certain amount of goods onto the market. The amount they release usually reflects the current demand. The goal of these mining companies is to keep prices of diamonds relatively stable.
Current fashion trends can also be a factor in the prices of diamonds. Fashion can change the demand for a particular type of shape, color, or cut of a diamond. Currently, fancy colored diamonds are extremely sought after due to becoming very popular with a number of celebrities. Recently a large pink diamond was auctioned for over $1,000,000 per carat.
The below has info on a recently auctioned pink diamond: