Why the Market Is Becoming More Divided?
There is an interesting shift happening in the natural diamond market at the moment.
After several difficult years, the market is becoming increasingly divided by size, quality and rarity rather than moving as one market.
We're seeing continued pressure on some of the more commercial, readily available natural diamonds, while larger, rarer and better-quality stones are showing considerably more resilience.
One of the reasons is supply.
Major producers have been reducing production and adjusting their strategies as the industry works through lower demand and the continued growth of lab-grown diamonds. At the same time, the market is increasingly focusing on the natural diamonds that are genuinely scarce.
Another interesting development is that the price gap between natural and lab-grown diamonds continues to reshape the market. Rather than simply competing on price, the natural diamond industry is increasingly positioning natural stones around rarity, provenance, individuality and long-term desirability.
For jewellers, this makes stock selection more important than ever.
A 1ct natural diamond isn't necessarily behaving the same way as a 3ct, 5ct or fancy-colour diamond — and the difference between buying the right and wrong goods can become significant when the market is changing.
At Carat Smart, we're continuing to focus exclusively on natural diamonds, including individual stones, larger diamonds, fancy colours and selected jewellery goods.
We'll keep sharing what we're seeing in the trade as the market develops.
Carat Smart Australia
Wholesale Natural Diamonds
Subiaco, WA
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