If you have been planning to buy some gold jewellery, you would have noticed that there has been some fluctuations in the prices lately. If you’re a jewellery lover or planning to invest in some luxurious diamond jewellery soon, you might be wondering, ‘What happens to diamond jewellery when gold prices go up?’. Well, I am here to break it down and explain how gold and diamond jewellery prices are interconnected and how it impacts diamond jewellery prices.
Why do gold prices keep rising?
Before understanding how it affects the diamond jewellery industry, let’s know why the gold prices go up in the first place. There are some common reasons as to why the prices go up, such as:
- Global Economic Uncertainty
- Currency fluctuations
- Inflation
- Rising demand during the wedding or festive seasons
How does it affect Diamond Jewellery?
Gold prices directly and indirectly impact the prices of diamond jewellery. Here are some of the ways it may affect the diamond industry.
- The Setting
Most of the diamond jewellery is set in gold like white, yellow or rose gold. When gold price increases, then the making charges of diamond jewellery also increases, which results in higher retail prices. Similarly, when the gold prices drop down, diamond jewellery becomes more affordable. So, even if the price of the diamond remains the same, the gold component of the jewellery increases.
- Consumer spending trends can shift
When the price of gold increases, people might:
- Delay buying gold jewellery
- Shift to alternative investments
- Look for value in diamond only or lighter jewellery designs
This indirectly affects diamond demand but usually not significantly enough to change prices across the board.
What actually affects Diamond Prices?
- Global Diamond Supply – Diamond prices are influenced by mining activity, availability of rough natural diamonds and cutting/polishing supply chains. If supply of these natural diamonds is tight, the prices increase.
- Consumer Demand – When it is the wedding season or the festive season, premium diamond jewellery has a high demand. When there is a rise in demand, there is an increase in the price of diamonds.
- Certification and Quality – Not all diamonds are of the same quality. Diamonds are certified by the GIA or IGI certification. They are certified based on the 4Cs – colour, cut, clarity and carat weight. Better certification of diamonds commands premium prices, no matter how much gold is in it.
- Market Trends and Innovation – New cuts, designer collections or unique customisation options can increase or decrease the price of luxurious diamond jewellery. The more exclusive the design of the jewellery is, the higher is the value.
FAQs
- Why do gold prices fluctuate so much, while diamonds remain stable?
Gold is affected by global politics, currency shifts and economic fears. Diamonds are driven more by fashion, lifestyle demand and limited supply so they don’t move as wildly.
- Will diamonds become more expensive if gold prices stay high for a long time?
Not always. If gold remains high, jewellery trends may shift toward platinum, silver or minimal gold usage but diamond prices will depend on their own market factors.
- Do you offer designs with minimal gold to keep prices steady?
Yes. At The Diamond Store by ChanduBhai, we offer elegant and luxurious diamond designs that use less gold without compromising on sparkle.
Conclusion
Gold prices can fluctuate because of many world events, but diamond prices don’t always change the same way. Diamonds are more about beauty, quality and how much people want them. So even if gold becomes expensive, it doesn’t always affect diamonds.
At The Diamond Store by ChanduBhai, we are here to help you find jewellery that makes you feel proud, confident, and happy. From elegant rings and sparkling earrings to luxurious bridal and wedding sets, we have beautiful designs for every style and budget. Visit us now and explore our collection of luxurious diamond jewellery.
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