Diamond Price Drop?

Diamond prices are dropping. But don't expect to see cheaper prices at your local jewelry
shop. According to Ziminsky global rough diamond index, prices for rough diamonds -
the raw, unpolished and uncut stones- are the lowest they've been in a year. And one
economist says the price drop, plus a robust U. S. labor market could contribute to
a surge in marriage proposals.

"It's easy to find a job. Jobs are plentiful, and it's one of the reasons why you're seeing an
increase in household formations."

So what's behind the plummeting prices? Industry analysts are linking the slump
to declining sales at the jewelry counter, saying many post-pandemic consumers shy away
from luxury and discretionary goods and spend on more traveling, eating out, and other
experiences.

"Households actually had quite a lot of savings. They could insulate themselves."

It comes as the largest jewelry company in the U.S. predicts a marriage proposal boom.
According to Signet Jewelers engagements will soar as high as 2.5 million in 2024.

"I think that's a very good sign. That gives you just a really strong sense of just how robust
portions of the consumer market are and just how solid the U.S. economy."

For those looking to propose this year, don't expect cheaper diamonds. Analysts
say retailers don't typically adjust in-store prices based on price fluctuations to products on
the short term. For example, a one-carat round diamond at the store is on average 3% more
expensive right now than it was in January of 2020.
Comprehension Questions

1. Why are diamond prices dropping?

2. What factors contribute to the increase in marriage proposals?

3. Why are consumers shying away from luxury goods?

4. What does the largest jewelry company in the U.S. predict about marriage proposals?

5. Why are retailers not adjusting in-store prices based on short-term price fluctuations?