Diamonds see demand spike and prices follow
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Illustration: Aïda Amer/Axios
Diamond prices are up because demand is growing — despite the country's recent emergence from various forms of lockdown.
Why it matters: Diamonds were a big pandemic-era winner, when U.S. spending flowed out of service, travel and experiences into goods and high-end products.
- The trend hasn't reversed, with increases in online sales, younger men who are less anxious about going into stores, and purchases of larger stones.
By the numbers: De Beers, one of the biggest diamond miners in the world, has already reached 73% of its 2020 rough diamond sales so far this year.
- E-commerce sales for Signet, the parent company of Kay Jewelers and Zales, grew 125% over 2019 in the latest quarter, thanks to its virtual consultants and try-on features, the company says.
- And even though store foot traffic may still be down compared with two years ago, the company reported a higher average transaction value.
What hasn't changed: Celebs are still coveting the precious stones, and there's still tremendous value in rarity.
- Check out rapper Post Malone’s new 12-carat, $1.6 million fangs and the new 470-carat diamond that was just discovered in Botswana.
The big picture: Jewelry and accessories have been one of the biggest drivers of retail growth, especially online, over the past year.
- Jewelry sales saw the biggest jump of any retail category — up 45% last month versus 2019 — according to Mastercard.
What to watch: New strains of the coronavirus may impact supply chains for diamonds down the line.
