Understanding the enduring value of natural diamonds in a changing market

Natural diamonds have long been synonymous with luxury, commitment, and legacy. In India, where weddings remain a grand affair, diamonds hold deep cultural and emotional significance. As income levels rise and the desire for luxury intensifies, the preference for natural diamonds continues to thrive, reflecting not only social status but also an investment in lasting value.

Timeless and lasting appeal across generations
From baby boomers to generation Z, natural diamonds hold universal appeal. Unlike alternatives that may diminish in value over time, natural diamonds retain their significance across generations. Consumers no longer seek flashy possessions; they want items that stand the test of time. Natural diamonds carry intrinsic value, rarity, and prestige— qualities that mass-produced alternatives simply cannot replicate.


Even from the perspective of value and resale, natural diamonds remain a preferred choice. From 2015 to 2024, the price of a 1.5-carat diamond that is not naturally grown decreased by over 83% in some cases. According to several global reports, the future of man-made diamonds remain uncertain as producers face challenges related to profitability and market saturation. In this scenario, natural diamonds hold a competitive edge.

The enduring value of natural diamonds lies in their rarity, heritage, and sustained worth. As global demand for responsibly sourced diamonds continues to grow, India's diamond industry remains at the forefront of this evolution.

Natural diamonds vs. manufactured alternatives
In July 2024, the United States, the world’s largest market for diamond jewellery, experienced a 6.5% growth in diamond jewellery sales. According to Paul Rowley, Vice President of Diamond Trading at De Beers, "India, on the other hand, is an emerging market expected to see double-digit growth.”

Unlike mass-produced commodities that become cheaper over time, like in the semiconductor industry, natural diamonds remain rare and exclusive. In contrast, engineered gems face price drops due to large-scale production and diverse uses beyond jewellery, such as in fashion and accessories. In the U.S., the price of engineered gems has declined significantly due to increased supply and expanding applications.

Natural diamonds: A steady demand
India's diamond industry is witnessing growth across major markets. With increasing consumer preference for responsibly-sourced natural diamonds, demand remains robust. With India now representing 11% of global demand for natural diamond jewellery, the country has surpassed China to become the second-largest market in the world.

Diamonds: A major player in the economy
India plays a pivotal role in the global diamond industry, processing over 90% of the world's diamonds. According to Bain & Co, despite fluctuations, natural diamond prices have seen an average year-on-year growth of 3% over the last 35 years. Furthermore, 99.8% of natural diamonds are certified conflict-free by the UN and WTO-mandated Kimberley Process (KP). Several major players are implementing responsible practices, such as the Tata Sustainability and Ethics Programme (TSEP), ensuring ethical sourcing, sustainable practices, and improved working conditions in processing units.

A diamond’s true magic reveals itself in the way it plays with light
While the commonly considered parameters for evaluating a diamond’s quality are the four Cs—cut, clarity, colour, and carat—light performance remains the most essential factor. Diamond light performance is evaluated using several metrics that measure how effectively a stone reflects and manipulates light. True light performance is typically assessed through key factors such as brilliance, fire, scintillation, contrast, and symmetry of light return.

Does a larger carat mean a bigger diamond?
Not necessarily. Although a higher carat usually indicates a larger diamond, its apparent size depends on several factors:

Cut – A well-cut natural diamond reflects more light, making it appear larger.

Shape – Some shapes, such as oval or marquise, appear larger than round diamonds of the same caratage.

Depth and spread – A natural diamond with greater depth may have more weight beneath the surface.