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Are Jewelers Affected by the Diamond Overstock

by Byrne Anderson
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A question we need to address first is “how does overstock affect diamond sellers?”

This is because diamonds are marketed and sold at a price based on their rarity. So if there is a surplus of diamonds, then basing the pricing on those factors can have a different effect on the people they are selling to.

According to the New York Times, two of the world-leaders in producing diamonds Alrosa and De Beers have seen an increase in inventory and show no signs of reducing it as fast as they come in.

If that is the case with these two, then it probably is also the case for other smaller producers and cutters of diamonds. That will have a significant effect on the price of diamonds that jewelers will be well aware of.

As for consumers, here are some of the things you should know if you’re planning on getting diamond rings.

A Cut on Diamond Prices

Prices always depend on the supply and demand relationship. If the supply is high but the demand is low, there will be a drop in price to maintain a balance. On the other hand, if the demand is high but the supply is low, the prices will rise because people will want to vie for a piece to be on their wedding rings.

The latter has been the situation for diamonds in the last decade. But because of the overstock, the supply is up and the demand is low because of economic reasons as well as the current situation in the world.

Decrease in Demand

On that note, when people don’t buy, the stock remains in stores. They will not be able to sell the diamonds and thus will be kept in vaults until they are sold.

As diamonds do not dip significantly in their price, any overstock will still be sold at a profit, but maybe not as much as the seller would want to. But it is still sure that someone will still want diamonds on their custom engagement rings.

The Rise of Alternatives

Because of recent events, couples looking for engagement rings are looking to different gemstones which add to the stock of diamonds in their supply. This may seem like an alarming situation, but as for jewelers, it is only part of the trade.


While there are concerns about the pricing of diamonds in the world market, jewelers know better that they can still profit from other products they are selling. And while waiting for better days for diamonds, these precious gems will still retain their value to the wearer.

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