Diamond prices fall sharply in 2026

A one-carat natural diamond now averages about $3,898, down 51% from $8,007 in 2021, according to price data reported in September 2026. India is affected more than most because it cuts and polishes about nine in ten of the world’s diamonds, mostly in Surat.

Lab-grown diamonds are also seeing price drops. Wholesale lab-grown prices have fallen 96% since 2018, according to analyst Edahn Golan’s index. India exports both natural and lab-grown diamonds, and the industry is watching how prices change and how trade agreements affect exports.