When diamonds don’t dazzle

China’s crashing marriage rate is dealing another blow to the troubled global diamond industry, as young Chinese increasingly reject both traditional matrimony and the precious stones that have long symbolized it. The number of new marriages in China plunged 20.5% to a record low of 6.1 million couples in 2024, less than half the 13 million unions recorded in 2013. This cultural shift comes as polished natural diamond prices have already fallen 15% to 20% amid broader economic headwinds and competition from lab-grown stones. Meanwhile, India has overtaken China as the world’s second-largest diamond market. Why natural diamonds are struggling in China “China's a really interesting case. I think, across the luxury sector in China, demand has declined as Chinese economic growth has faltered somewhat,” De Beers Group CEO Al Cook told Bloomberg. “We see the regrowth of Chinese demand being a rather longer-term story." The diamond industry’s struggles reflect deeper changes in Asia’s jewelry market, where traditional preferences for materials like gold and jade are evolving alongside shifting demographics and consumer attitudes. While 71% of Chinese consumers still plan to purchase natural diamond jewelry according to Nielsen IQ data, industry experts say the market faces significant headwinds as younger generations prioritize experiences over traditional symbols of status and commitment. At the 2024 Presidents’ Meeting of the World Federation of Diamond Bourses (WFDB), held in Shanghai, panelists noted that Chinese consumers have turned cautious, and are unlikely to purchase assets in a downward trending market. Then there’s the rise of lab-grown stones. Kent Wong, managing director of Chow Tai Fook told Rapaport that lab grown diamonds are severely affecting the diamond industry because consumers are “confused” about what to buy. Older consumers sustain jewelry demand in China Still, China’s “silver generation” is emerging as a bright spot for the jewelry industry. Older consumers, with their stronger purchasing power and cultural attachment to precious materials, are helping sustain demand for fine jewelry despite economic headwinds. This demographic’s preferences extend beyond diamonds to traditional materials like gold and jade, which hold deep cultural significance. The World Gold Council reports that gold continues to dominate China's jewelry market in 2024, mirroring trends in India, where women own approximately 11% of the world's gold reserves. Though, in both India and China gold jewelry demand has weakened due to rising gold prices, while investing in gold has remained steady. How rising gold prices are shaping jewelry trends Jewelry content creator Kira Kirby has over 200,000 followers and took to Instagram to address the rising prices of gold, and what it might mean for future jewelry trends. She forecasts that recycled and preowned gold, lighter designs, hollow jewelry and thinner, more delicate pieces will be popular this year. One of the biggest shifts in jewelry trends will be that chunky, oversized gold jewelry will become a bigger status symbol than a large rock. Recycled metals aren’t commonplace in high and fine jewelry houses, and there isn’t a clear argument for their place either. “Recycled metals don’t necessarily make jewelry cheaper, as the refining and certification processes ensure the same integrity as newly mined metals,” Krish Himmatramka, founder of US-based jewelry brand Do Amore tells Jing Daily. Why platinum could gain favor in the jewelry industry With the gold price on an upward tear, platinum could be poised to gain traction as an affordable luxury alternative. “Platinum is more popular than it was since it's become a little bit closer in pricing to gold, but gold is still the primary seller for us in the USA,” Himmatramka says. Tim Schlick, CEO of Platinum Guild International elaborates on this shift: “The high gold prices raise concerns about margins and the risk of stock value, giving platinum a window of opportunity.” Not only is platinum cheaper, recent innovations have made the metal more durable for fine jewelry pieces. For instance, Inoveo Platinum, a new platinum alloy created by Anglo American and Alloyed, was launched at last year’s JCK Las Vegas trade show. “Platinum jewelry is typically 95% pure platinum, while 18K gold is an alloy of 75% gold and other metals with a rhodium coating,” Schlick adds. Metals are significant not only in jewelry, but also as investments. China’s futures market signals growing interest in platinum The Guangzhou Futures Exchange’s plan to launch platinum and palladium futures contracts this year underlines China’s growing interest. According to the World Platinum Investment Council, this initiative could attract further participation in platinum jewelry markets by mitigating price risks. With gold prices rising, platinum gaining ground, and the diamond market facing profound challenges, 2025 will be a crucial year for Asia’s jewelry industry. Brands must navigate these dynamics while seizing opportunities presented by the silver generation’s spending power and shifting consumer sentiment.

When diamonds don’t dazzle

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Published February 11, 2025

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When diamonds don’t dazzle