Impact Of The COVID-19 Pandemic: Lower Diamond Prices?

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Amidst the global pandemic, while businesses and people were placed under lockdown…diamonds were piling up in the safes of the 5 biggest diamond producers. According to The Straits Times article, the world is now facing THE GREAT DIAMOND GULT. What does this mean for the diamond market and more importantly, you the consumer?

TLDR, here’s a quick summary of what’s going down:

+ Big time diamond producers such as De Beers and Alrosa have closed little to no sales since the month of February– resulting in an excess supply of diamonds building up in their vaults.

+ As COVID-19 restrictions are being lifted globally, they are now faced with a dilemma: how do they reduce billions of dollars worth of diamonds without undermining the recovery of the diamond industry? According to Gemdex, a specialist advisory firm reports that the big 5 diamond producers are sitting on about SGD $4.9 billion and the figure could reach up to SGD $6.3 billion by year end. To put that figure into perspective, that’s like owning 3,100 Lamborghinis in Singapore.

+ Even with the dilemma, De Beers and Alrosa are unwilling to cut their prices. However, that being said, smaller diamond producers have dropped their own prices and junior miners — who have been hard-hit even before the pandemic, have been offering steep discounts on their diamonds of as much as 25% in trading centres.

WHY THIS IS A GOOD SIGN FOR YOU

Not only did the pandemic cause a downward pressure on the whole diamond industry, it has also hit pause on all of our 2020 life plans. For many, this means putting a halt or postponement of proposals and wedding plans.

With global economies slowly regaining its tempo, manufacturing and production resuming and retail shops reopening; we can expect an uptake in diamond demand. With more demand, diamond prices could stabilise before we know it. To put it bluntly, if you want to take advantage of slashed diamond prices, there’s no time to waste…now’s the best time to buy diamonds.


HOW MUCH WILL YOU ACTUALLY SAVE

Does a 10% drop in diamond prices equate to 10% in savings? As we’re all too familiar with retail economics, it’s sadly not the case. Just like when oil prices fell to the negatives last month, the equivalent savings at the pump was a measly sum of 7 cents. (according to The Straits Times article). 

If you haven’t realised, there’s no better time to buy diamonds than now; because you’re bound to save. However, when you shop at diamond retailers, how much you’ll save is dependent on how high of a markup these retailers will place on their diamonds. In essence, they decide if you’ll reap the same rewards they benefited.

So, how exactly is LUXIEE different? As a marketplace that lists diamonds directly from suppliers, customers are able to purchase diamonds directly without paying a premium to middlemen or for a brand name. Hence, any percentage of savings in supply will be transferred to you the customer.

In layman terms, LUXIEE’s customers will have the closest access to diamond market rates and will reap the benefits of the slashed diamond supplier prices. All whilst retailers are stuck with inventories of diamonds with backdated pricing. 


Want to find out more about getting the best prices for diamonds? Email us at info@luxiee.com or Whatsapp us at +65 8893 6651 and we’ll be more than happy to chat!


Not convinced? Here are some examples of the diamond price differences between LUXIEE and other retailers:

Diamond SpecificationsLUXIEE’s PriceOther Retailer’s Price
Round shaped diamond · 1 Carat · 18K gold solitaire ringS$3,193S$7,698
Cushion shaped diamond · 0.7 Carat · 18K gold solitaire ringS$1,471S$2,750
Princess shaped diamond · 0.5 Carat · 18K gold solitaire ringS$1,145S$2,420

(Starting prices, as of 25 June 2020)

Still think your eyes deceive you? Take a little diamond excursion to a diamond retailer and check the prices of your preferred diamond. With the same/similar diamond specifications, head on back to LUXIEE to see the price difference yourself.

Regardless, the takeaway is the same — now’s the best time to buy diamonds. Even if you’re not thinking about getting married or proposing anytime soon, or might only be planning to renew your vows in 1 or 2 years time. Take it as an investment, anyhow when will we ever see diamond prices like these again?


NOT SURE WHERE TO START?

Taking advantage of this once-in-a-lifetime phenomenon can be rather overwhelming. Having to scramble to find the perfect diamond engagement ring ASAP and plan the proposal is easier said than done. We hear you and we got your back. Here’s a collation of guides that’ll help facilitate your diamond ring hunt and proposal planning:

Diamond engagement ring guides:

How to find out her ring size:

Ringspos:

Proposal ideas:

Hooray! Phase 2 is finally upon us and we are now open for in-person consultations. If you’d like to get to know more about LUXIEE, simply make an appointment with us via our Whatsapp at +65 8893 6651 or on our Facebook page.