History of Diamond Prices

Gemstone Values from WWII to Present

Diamond prices to World War II are sketchy at best particularly for cut diamonds. A book by Percy Wagner published in South Africa in 1914 the diamond fields of South Africa does give us a glimpse of the purses per carry fresh stone in the pre-syndicate days the prices aren't shillings per carat and it's difficult to translate this into the today's dollars. Nevertheless we can see trends from these pricing figures. In 1889 Prestons reselling according to Wagner the rate of 19 shillings per carat. By 1913 they were selling for 67 shillings per carat increase of some 250%. There were however considerable fluctuations in the interim. In 1907 for example the price of falling to 64 shillings for 2 years later due to the panic of 1907 presumably it was back down to 47 shucks.

From 1913 through 1926 diamond prices were fairly steady. In 1926 according to the book history of time and production and the time entry rough diamonds were still selling for only 69 shillings per carat. A sharp drop to a little over 55 shillings in 1927 before climbing back up to it he .67 on the eve of the great crash of 1929. Thereafter the price fell to 35 shillings in 1932. Of course this was mild compared to what happened to the Dow Jones industrial average and all of the prices in that time period. Part of the decline you recall was also due to the emergence of fast new sources of supply and late 1920s.

Any rate it was about this time of the newly formed world wide marketing mechanism of the diamond cartel really too cold. It stabilize prices through the rest of the decade. In following World War II diamonds started their inexorable modern decline. Since the deep arrangement of central marketing bye the big diamond manufactures in the 30s there has never been to Klein and pricing from time in Tulsa's. That's quite a track record. Let the record of rough stone prices as indicated as mandated by the wholesaler since 1948. It is a record that is steadily rising prices and steadily crime rates increase as we've entered the inflammatory age. I'll told it shows rough time and prices have proven prison over hundred percent in the last 30 years.

Ultimately rough stone pricing developments or basis for cut diamond prices. That is only a partial explanation however prefinished diamonds have enjoyed an even more impressive record of selling prices and restaurants. But ultimately price performance on both levels depends on the available supply. From the point of view of the cutter of course he must not only look at this total cost with material and labor but also demand what you thinks the market will bear. Whether by intentionally or not diamond manufacturers have been able to create a condition a perpetual scarcity for the last 40 years. There're never more goods in the market the manufacturer believes the market can use at any given level of prices. So there is actual scarcity perhaps real perhaps artificial scarcity nonetheless. What the best estimates put time and reserves on the decline ultimately only the manufactures know what's on the ground. I'm not talking.