📉 Is the Diamond Dream Dead? Why the "Ice" is Melting in 2026.
If you bought a diamond as an "investment" over the last 20 years, you might want to look away.
The latest data from BofA Global Research reveals a staggering reality: Diamond prices have crashed to their lowest levels this century. The "Diamond Price Index" has officially wiped out two decades of growth, falling below levels seen in 2002.
What’s killing the sparkle? 💎🔨
The Lab-Grown "Tech" Takeover: Lab-grown diamonds aren't just a trend; they’ve achieved total market disruption. Because they are manufactured, not mined, their prices follow the path of electronics (cheaper over time), dragging the value of "natural" stones down with them.
A Shift in "Store of Value": In a world of high interest rates and economic uncertainty, investors are flocking to Gold—which is hitting record highs—while diamonds are being viewed more as a depreciating luxury "appliance" than a financial asset.
The Gen-Z Factor: Younger consumers are prioritizing ethics, sustainability, and "experience" spending over the traditional 3-month-salary-rule for engagement rings.
The Portfolio Reality Check:
Diamonds have always been marketed as "forever," but from a liquidity and resale standpoint, they are currently a portfolio nightmare. Unlike gold or stocks, the "buy-spread" is massive, and the secondary market is currently flooded with supply.
Buy a diamond because you love it, but don't count on it to fund your retirement. The chart doesn't lie: the "Ice age" is facing a very warm 2026.
