When will diamond prices fall?
A big decline in diamond prices could see prices plummeting from about $6,000 per carat to under $1,000.
Diamond prices fell in 2017 for the first time since 2003 when the global market crashed, hitting a peak of $7,600 per carad.
However, that number dropped to $4,000 in 2018.
The price of diamonds has also been affected by supply.
The world’s demand for diamonds is on the rise, with global supply reaching nearly 2 billion tonnes last year, according to the International Monetary Fund.
And while there is much demand for gems, there is still a huge supply gap between demand and supply, leading to the price of gemstones falling.
“The market for diamonds and the supply for them are in a state of near parity, but with the price being so much lower than the price they were when the crisis happened, it has impacted demand,” Ms Stahl said.
It’s also likely to affect the prices of other gemstones.
While most gems are not considered luxury items, the market for emeralds and garnets has grown exponentially over the past decade.
Emeralds are the most sought after gemstone, with demand in many parts of the world rising to record highs.
Garnets are a more rare and expensive gemstone with demand growing slowly.
For many Australians, diamonds are the only item of jewelry they have and the price has been an absolute bargain.
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