Why Diamond Prices are Having Such a Dramatic Fall in 2026:

As professional dealers in antiques and fine jewellery at Heritage Gold and Collectables, we are currently witnessing a market recalibration that is perhaps the most significant in a century. As we move through 2026, the intersection of technological advancement, geopolitical conflict, and massive corporate restructuring has created a perfect storm for both the natural and lab-grown markets.

The £1.8 Billion Correction: De Beers and Anglo American

The most stark indicator of the industry’s struggle is the massive devaluation of its most iconic player. In February 2026, Anglo American slashed the value of De Beers for the third time in as many years. According to financial reports from Bloomberg and the Financial Times, the parent company announced a fresh $2.3 billion (£1.8 billion) impairment on its stake in the diamond giant.

This means De Beers is now valued on the books at just $2.3 billion—a staggering drop from its valuation of over $9 billion in 2023. Anglo American cited a "prolonged shifting of customer preference" towards lab-grown alternatives and "macroeconomic uncertainty" as the primary reasons for this "hard reset" as they prepare to de-merge or sell the business later this year. (Source: Morning star)

The End of the CZ Era: The Pandora Pivot

Perhaps the biggest sign of the times comes from the high street. Pandora, the world’s largest jewellery brand, has fundamentally changed its material strategy. While Cubic Zirconia (CZ) was once their staple, they have moved to replace it with Lab-Grown Diamonds (LGD) in their main ranges. Because the cost of growing diamonds has plummeted, CZ—which is prone to clouding and scratching—is being pushed out of the "fine-fashion" market entirely.

More surprisingly, Pandora announced in early 2026 that they would be significantly reducing their use of silver—their signature metal—down to just 20% of their collection by 2028. This move is a direct response to silver prices more than doubling over the last year. In its place, they are introducing a new platinum-plated alloy, allowing them to maintain a "precious" feel without the volatile costs of pure silver. (retailboss; substack)

Geopolitics: The Russian Ban and the American Tariff Wall

The natural diamond supply chain has been fundamentally altered by two major geopolitical forces:

• The Russian Sanctions: By early 2026, G7 protocols required strict "traceability" to prove that diamonds polished in hubs like India were not originally mined in Russia’s Alrosa mines. This has squeezed the supply of certain natural stones, driving prices up for specific "conflict-free" sizes.

• The American Trade Tariffs: US trade policy has added a layer of complexity. Throughout 2025 and early 2026, the US imposed significant import duties on polished goods. India, which polishes 90% of the world’s diamonds, saw exports to the US halve due to these tariffs. While a "zero-duty" framework was recently proposed in February 2026 to revitalise trade, the period of high tariffs forced a massive global rerouting of stock through the EU and UAE, further destabilising traditional market prices.

The ‘Taylor Swift’ Cut: A New Romanticism

While technology drives supply, culture drives shape. Currently, the industry is seeing a massive surge in demand for the Elongated Cushion Cut, often referred to by our clients as the "Taylor Swift Cut."

Following her high-profile engagement with an antique-style elongated cushion, the market shifted overnight. By early 2026, searches for this specific cut surged by triple digits. The trend favours Old Mine Cut facets—chunky, romantic facets that glow under candlelight—which has significantly benefited the lab-grown sector. Because LGDs are more affordable, buyers can achieve that "Swift-sized" 8-carat look without the million-pound price tag. (Source: adiamondisforever.com)

History Repeating: Whitby Jet vs. Victorian ‘Plastic’

As specialists in antiques, we often look to the past to predict the future. In the 1860s, Whitby Jet was the height of fashion for mourning jewellery, famously popularised by Queen Victoria. However, the industry was eventually decimated by the arrival of the production of Bog Oak, (Bog oak occurs in many areas of the United Kingdom but jewellery usually originates from Ireland. It was produced from the early 1800s but became popular in the mid nineteenth century, reflecting the demand for Whitby jet, especially after 1852, when techniques to mass-mould and decorate the material (through the application of hydraulic or heated pressure to the dried wood) were invented) Vulcanite (In 1839 Charles Goodyear discovered the method of mixing sulphur with rubber to form hardened or vulcanised rubber, called Vulcanite. The proportion of sulphur can be increased or decreased in order to vary the required amount of hardening accordingly. Between 25-50% sulphur gives a hard product with the familiar feel of plastic. There are many Victorian vulcanite objects, but the most common form is an imitation of Whitby jet used widely in the production of brooches, bracelets and necklaces. Vulcanite could be produced in almost any colour, although the predominant colours are black (ebonite) and brown) and French Jet (black glass). Like today’s lab-grown diamonds, these imitations were more durable, easier to scale, and more accessible to the middle class. (source: Gem-A )

The natural Jet industry collapsed because it couldn't compete with the volume of manufactured alternatives. Today, natural diamonds are fighting a similar battle to prove their "inherent rarity" against a product that is chemically identical but infinitely replicable.

Why Diamond Prices are Having Such a Dramatic Fall in 2026 — What This Means for Your Jewellery Value and the Trade

For the trade, 2026 is a year of aggressive recalibration. The massive devaluation of De Beers and the "tariff wall" have stripped away the price stability that the industry relied on for decades. For you as a consumer, your jewellery value is now increasingly tied to design, provenance, and rarity rather than just "diamond weight."

While "commodity-grade" diamonds are seeing price drops due to lab-grown competition, high-quality natural stones—particularly antique cuts with verifiable origins—remain a strong store of value.

Do you have questions about the value of your own diamonds, or are you looking for a specific investment-grade piece?

At Heritage G&C, our experts are here to help you navigate this changing landscape. Please visit heritagegandc.co.uk and use our online questionnaire to:

• Ask a Question: Get professional advice on your diamonds or jewellery.

• Source Jewellery: Let us use our expertise to find a specific antique or unique piece on your behalf.

Simply fill in your details and a member of our team will get in touch with you directly to discuss your requirement.