Diamonds have long been associated with timeless beauty, status, and wealth.
But in 2025, how do diamonds fare as an investment? Are they still the sparkling assets investors believe them to be? Let’s explore the current value of diamonds, their performance as an investment, and what buyers should consider before placing their capital in these precious stones.
The Current Value of Diamonds
The global diamond market has seen steady demand in the luxury sector, especially for natural diamonds over lab-grown alternatives. While prices dipped during global economic uncertainty, 2024 and early 2025 showed signs of recovery, particularly for high-quality, rare diamonds.
Key valuation trends in 2025:
- 1-carat round brilliant diamonds of excellent cut and colour range from $5,000–$15,000, depending on clarity.
- Fancy coloured diamonds, especially pink and blue, continue to command record prices at auctions.
- Investment-grade diamonds (GIA-certified, D–F colour, IF–VS2 clarity) are holding their value due to rarity and global demand.
Diamonds as an Investment: Pros & Cons
Advantages of Investing in Diamonds
- Portability: Diamonds are compact stores of value—easy to transport, hold, and transfer across borders.
- Inflation hedge: Like gold, diamonds tend to retain value over long periods, especially during currency devaluation.
- Tangible asset: Unlike stocks or crypto, diamonds are physical assets you can see and wear.
Considerations and Risks
- Illiquidity: Reselling diamonds can take time, and buyers may not offer full retail value.
- Grading variance: The value of diamonds relies on GIA or similar grading—variability in appraisal can affect resale price.
- Market volatility: Like any luxury good, demand for diamonds can fluctuate with economic shifts.
What Kind of Return Can You Expect?
While diamonds are not a short-term speculative asset, historical data shows that investment-grade diamonds appreciate steadily over time. For example:
- A 1-carat D flawless diamond purchased in 2010 for ~$10,000 now commands ~$17,000+ depending on market.
- Fancy vivid pink diamonds have increased over 350% in value over the past 15 years.
That said, returns on diamonds vary significantly by type, size, and rarity. Investors typically see returns between 3–6% annually for top-tier stones—less than aggressive stocks, but often more stable in uncertain economies.
Tips for Smart Diamond Investing
- Insist on Certification: Only buy diamonds graded by reputable labs like GIA.
- Prioritize Rarity: Focus on top-tier stones in colour, cut, and clarity—not just carat size.
- Work with a Trusted Jeweller: Establish relationships with established diamond experts who offer insight, transparency, and fair pricing.
- Understand Holding Periods: Treat diamonds as long-term assets, ideally 5–10 years
Final Thoughts: Are Diamonds Worth the Investment?
Diamonds remain a solid store of value—especially when chosen wisely. While they may not outperform tech stocks or real estate in bull markets, they offer beauty, stability, and long-term appreciation with lower volatility. For those seeking a tangible, inflation-resistant asset with enduring appeal, diamonds continue to shine as a worthy addition to a diversified portfolio.
Visit The Diamond Works Institute
At The Diamond Works Institute, we offer GIA-certified diamonds, expert guidance, and unmatched craftsmanship. Whether you’re looking to invest in diamonds or discover their fascinating history, we invite you to visit our showroom or join a guided diamond experience.
Invest with insight. Invest in diamonds.
📍 Cape Town & O.R. Tambo | 🌐 www.thediamondworks.co.za