Rapaport Press Release: Consumer Alert: Synthetic Diamond Prices Crashing

LAS VEGAS--(BUSINESS WIRE)--Consumers Beware. Synthetic diamond prices are crashing yet some retailers are pricing them high by comparing them to prices for natural diamonds. Consumers think they are getting a good deal, but they are not. Synthetics trade as low as 98% below the Rapaport Price List for natural diamonds.

Synthetic prices are all over the place. Walmart sells a 3 ct., Round, F-G, VS1-VS2, synthetic diamond solitaire ring for $2,975, while Signet’s Blue Nile sells a similar 3.00 ct., Round, G, VS1 synthetic diamond solitaire ring for $8,190. That’s a 275% difference for the same ring.

Some jewelers are pushing synthetic diamonds because they can make huge profit margins. This won’t last because synthetic diamond prices are crashing to hundreds and even tens of dollars per carat. This is because they are available in unlimited supply.

Whether or not to buy a cheap diamond as an engagement ring is a consumer preference. However, consumers who spend thousands of dollars on synthetic diamonds may be seriously overpaying. Consumers should be aware that synthetic diamonds are not like natural diamonds which are rare and expensive. Synthetic diamonds are not real diamonds. They do not retain value.

“Consumers must be careful when buying synthetic diamonds. There is a high likelihood they may overpay as synthetic prices are crashing. Some jewelers are promoting the sale of synthetic diamonds as a replacement for natural diamonds because it allows them to make windfall profits. Synthetic diamonds are not real diamonds. They do not retain value,” said Martin Rapaport, Chairman of the Rapaport Group.

Additional information about synthetics is available at Rapaport.com/synthetics.

About the Rapaport Group: The Rapaport Group is an international network of companies providing added-value services that support the development of ethical, transparent, competitive, and efficient diamond and jewelry markets. Established in 1976, the group has more than 20,000 clients in over 121 countries. Group activities include Rapaport Information Services, providing the Rapaport benchmark Diamond Price List, as well as research, analysis and news; RapNet, the world’s largest diamond trading network, with daily listings of over 1.7 million diamonds valued at more than $9 billion; and Rapaport Trading and Auction Services, the world’s largest recycler of diamonds. Additional information is available at rapaport.com.