Diamonds cheapest in decades: Should you buy jewelry or stick with gold, silver?

Buying a diamond has never been cheaper. Prices of natural diamonds have crashed to historic lows — even as gold and silver hit record highs — leaving Indian consumers wondering whether to shop, invest, or stay away.

Diamond prices are down nearly 60% since 2022, with a 1-carat natural stone now averaging around $3,987 per carat, more than 40% below peak levels. Analysts say it’s the steepest and longest slump in modern history.

For shoppers, the collapse means better bargains on jewelry. But for investors, it’s a stark warning: unlike gold and silver, diamonds are losing their shine as a store of value.

At the same time, gold has surged 23% in 2025, touching $3,274 per ounce, while silver has climbed 22% to $37 per ounce — both riding safe-haven demand amid geopolitical turmoil.

So why are diamonds falling while other precious assets soar?

• Oversupply: Mining firms have flooded the market.
• Lab-grown competition: More than 50% of U.S. engagement rings now use lab-grown gems, often at an 80% discount.
• Shifting tastes: Millennials and Gen Z prefer ethical, sustainable alternatives over mined stones.
• Economic strain: Luxury spending is down as households cut back.

Experts warn that while weddings and celebrations may keep demand afloat, diamonds no longer behave like an investment. “Gold and silver are safe-haven assets. Diamonds are now just discretionary luxury,” one Mumbai jeweler noted.