Diamonds are at an all time high in terms of pricing right now.
Emerging markets have driven prices up tremendously.
Even with the downturn in the world economies the prices on rough diamonds have continued to increase at sight holder auctions.
The Western culture of diamonds for engagement rings has penetrated every culture/market at this point. So specifically talking about diamonds, they are selling at record volumes and prices.
Most people that I talk to agree that prices are going to continue to climb. Mining activity is only producing so much and demand is highly outpacing supply.
I could say the same for rare non-diamond gemstones as well.
Although natural sapphires are not used as engagement rings very often (even though 80% of our sales are for sapphire engagement rings), rare gemstones have been increasingly popular in emerging markets, as more would-be-diamond buyers opt for less expensive and truly rare alternative non-diamond engagement rings.
All the major auction houses (Sotheby’s/Christies) have all had recent record sales for sapphires, rubies and diamonds for that matter (Record Price). I would say there is little doubt that prices for (specifically) extraordinary (large/fine/rare) gemstones will decline.
But with all that said, most people buy gemstones for reasons other than investment, such as emotional heirlooms that tend to be worth a lot more personally than monetarily to the people that eventually obtain them.