Smaller Diamonds Are In Vogue

Published on 04/05/10

Diamonds should be for ever, but they lost their sparkle during the recession. Now specialist jewellers and diamond merchants are reporting that, while business is slowly picking up, there is a noticeable new trend – consumers have turned their backs on the big rocks in favour of smaller diamond rings.

Last year the industry suffered its worst downturn for years with a slump in demand for luxury items. In the Hatton Garden area of London – where nearly 300 businesses sit cheek-by-jowl in a cluster of streets on the edge of the City – "footfall" has noticeably dropped.

But while people are willing to downsize to smaller stones, they are not prepared to compromise on clarity and colour. Even with the pressures of the recession, retailers say that half-carat diamonds remain a popular size for classic solitaire engagement rings.

Geoffrey Farrow, owner of Raphael, says: "There are fewer people about and those who are around are spending less. A decent one-carat diamond would currently cost upwards of £1,500.

But the smaller stones are, without doubt, much easier to sell and people are tending to go below one carat.