In March of 2020, diamond mines closed. Unlike closures in other sectors of the luxury economy, however, mine closures gave the diamond market the jolt it needed after years of stagnation. Though sales volume suffered in the immediate aftermath of the pandemic, the demand for rarer and fancy diamonds soared in the following months. As a result, prices have risen dramatically.
According to the Zimnisky Index, a popular tool used to analyze global diamond prices, formulated each year by industry analyst Paul Zimnisky, global diamond production fell approximately 23% between 2019 and 2021. Before the pandemic, experts had already expected diamond production to decrease between 2021 and 2025, due to oversupply over the last five years. The pandemic, however, resulted in a 20% larger decrease in 2021 than predicted. Consequently, prices for diamonds above three carats rose approximately 20% between 2019 and 2020.