Buying Diamonds During the Pandemic: Is it a Good Idea?
Because of the COVID-19 pandemic, trade and sales of precious stones and jewelry have been put on hold:
- prices dropped
- transactions froze
- diamond prices have been unstable
- jewelry stock depreciated in value
- production for jewelry has almost shut down entirely
With the global disease testing the industry’s ability to adapt and continue to provide value in today’s society, it has made everyone rethink the diamond industry.
And with everything that’s been happening lately, people are beginning to wonder what’s in store for this precious stone in the future.
Here, Shira Diamonds will discuss different topics and issues surrounding this once sought-after stone, including how you can purchase them during these times, along with updates on the industry and where it will be in the years from now.
How to Buy the Perfect Diamond Ring Online During the Pandemic
With 54.4 million covid cases as of writing, the age-old tradition of having June as the month for weddings was broken this year, as the virus threw plans in a state of disarray, having canceled so many celebrations.
Those who are just planning to pop the big question aren’t faring well either, as restrictions are still in place, making it hard for some of us to reach physical stores and choose the perfect ring for our loved ones.
Don’t panic—it has become much easier to purchase an engagement ring online.
How Much Should You Spend on a Ring?
Most experts say that the benchmark to spend on an engagement ring should be worth your three month’s salary.
This, however, is a highly unrealistic expectation right now where 13% of the whole country is currently unemployed.
Sources report that the average cost for an engagement ring is around $5,000, but a third of the population will spend $3,000 or less.
Some even go below $1,000, but this all depends on your preferences, and how much you have to spend.
Basically, there is no right or wrong amount to spend on a ring, since this is entirely up to you and your partner.
Should You Get Your Partner Involved?
This is entirely up to you, but research does confirm that 40% of women would like to be involved in the process of selecting a ring, and will provide input on details such as the material and stones, while the remaining 60% would prefer being surprised.
There’s no agreed-upon answer though, so it’s best to talk to your partner and see what they prefer.
Another option is to talk to family members, particularly those who know about your plans and can help to set up a surprise.
When to Expect the Diamond Jewelry Market to Return to Normal
Experts from Bain & Co. and Antwerp World Diamond Centre believe that the diamond market will most likely overcome its difficulties by 2021, until then, however, it will need to weather the next year or two, which will get bumpy, according to their report.
Based on their estimate from historic patterns, the market should return to its pre-crisis state within two years, assuming that the demand rises, that rough supply keeps falling, and that the industry stays at its current marketing level.
It has been predicted that retail demand will remain at a standstill in 2020, due to the U.S and worldwide recession.
Before we see any real growth again, we may need to wait until we are well into 2021.
Are Most Diamond Factories Still Closed?
Surat in India is at the center of the diamond industry, where over 92% of the world’s diamonds are cut and polished. In recent months, activity has picked back up, as COVID-19 cases have decreased in their factories.
Of their 7,000 diamond manufacturing sites, around 5,000 small, medium, and large factories have returned to operations.
By following the mandated government guidelines, the city is working at 70% capacity.
How Much Was the Diamond Industry Affected During the Pandemic?
Some reports revealed that jewelry sales have dropped by as much as 82% when the pandemic first started — the initial stages saw people quarantined, and retail shops across the globe were shaken by the coronavirus.
According to Edahn Golan Diamond Research, Analysis & Data, jewelry sales were stable in February this year, yielding $2.65 billion, but dramatically dropped to just $470 million in April.
And even though April does tend to be a slower month every year, this level of sales has never been experienced since the 1980s.
Even so, experts predict that the jewelry business will slowly bounce back as 2020 transitions over to 2021.
Will Diamonds Still Keep Shining in the Future?
While there is uncertainty spreading across the industry, diamonds have never been more attainable and plentiful for consumers.
As the prices and production costs on lab-grown stones decline, these precious stones are now within reach for more people. Today, shoppers are able to pick from thousands of diamonds online and compare their prices before making their purchase.
Among these choices are the lab-grown diamonds which are quickly becoming the popular choice, since these have an identical chemical composition, atomic structure, and appearance as their mined counterparts.
In addition, they are priced 20% to 50% lower compared to traditional diamonds, depending on the size.
Based on this advancement alone, it’s probably safe to say that yes, diamonds will continue to shine long into the future.