Current state of the diamond market: A mid year assessment

By Stanley Zale, Principal Consultant, Hill & Co.

As we pass the mid-point of 2023, it is a good time to consider where the diamond market is today and how does the rest of the year appear to be unfolding.

Coming off the 2021 and 2022 spending boom it can appear that the diamond industry is starting to face some tough times. After all, sales volume and prices are well below the record years we recently enjoyed. But let’s put things in context.

When comparing your 2023 YTD business performance it might be most realistic to use 2019 as the benchmark for comparison. After all the business growth we all experienced in the last 2+ years was driven by some unique factors.

Consumer spending during Covid was greatly impacted by the variety of restrictions put into place to limit, and hopefully prevent, the spread of Covid.

According to the US Bureau of Labor Statistics, the average US household spent about $2100 on travel in 2019. That average dropped by over 50% in 2020. With extra cash to spend, consumers looked to buy products that highlighted the value of their treasured relationships.

What could be of more value during those troubling years than the most meaningful relationships in our lives! Jewelry is the perfect product category to celebrate those relationships!

Now as the industry awakens from all that growth, it’s almost like waking up with a hangover after a wild party. But what is happening is that things are simply righting themselves back to normal times.

Another factor to consider through all of this is the ever-evolving market for Lab-Grown (LG) diamonds.

The LG market has seen spectacular growth over the last 10 years; most notably in the last seven years. As demand exploded, so did production. And there was the inevitable drop in prices as supply began to outpace demand. But yes, the laws of economics will prevail, and the pricing of LG diamonds will stabilize.

Regardless of what that price will be, the product seems to be here to stay.

Through all of this there remains the obligations of all members of the supply chain, from producers to B2C merchants, to abide by the laws and regulations pertinent to our industry.

All players have the responsibility, obligation, to correctly represent the product they are selling. This includes the quality assurance due diligence work of screening for undisclosed lab grown diamonds in the natural diamond supply chain. And yes, it also means that undisclosed natural diamonds in the lab grown supply chain must also be screened.

Yes, the same rules of correct representation apply here as well. Add to this the imminent implementation of stricter sanctions by several counties against the importation of Russian diamonds.

We need to all bear in mind that collectively this is OUR jewelry industry, and it is incumbent upon each of us to do the right thing and abide by all rules and regulations.

After all, if one of us fails it is the entire industry will suffer. Let us all accept the responsibility to do the right thing and help our jewelry industry to continue growing robustly and authentically!

How is 2023 unfolding for your business? Do you have a clear strategy for growth?

Whether you are ready to launch a new line, get new buyers, boost sales, scale rapidly or penetrate new markets, our team will help you achieve your growth goals.

We spot opportunities that you might not be aware of, as we build and execute results-driven growth.

We work with you to identify the technology, relationships and processes to drive you forward.

It all starts with a conversation.

Reach out to us at





Stanley Zale

Principal Consultant




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