Second Life for Diamonds: Recycled Jewelry on the Rise
The diamond trade is seeing a shift towards sustainability, according to a report by Boston Consulting Group. Their findings indicate a growing trend of recycled pieces returning to the market as finished jewelry, rather than being broken down for loose stones.
This trend is attributed to a decline in the incentive for dealers to sell diamonds individually. The report suggests that factors like high gold prices are influencing this shift.
While the report highlights the rise of recycled jewelry, it doesn’t delve into the specific impact of gold prices on this trend. Here are some possible explanations:
- Increased Value of Settings: With gold prices on the rise, the metal used in a piece of jewelry itself holds more value. This makes it more profitable to keep the setting intact and sell the entire piece as recycled jewelry, rather than extracting and selling the diamond separately.
- Labor Costs: Extracting stones from older settings can be a labor-intensive process. High gold prices might make this process less economical, further incentivizing the sale of the complete recycled piece.
The rise of recycled jewelry presents an opportunity for consumers who are environmentally conscious or looking for more affordable diamond pieces. It also suggests a growing focus on sustainability within the diamond industry.