The first quarter of this year saw a further drop in the LGD wholesale price list, particularly for round-shaped goods. The average trading wholesale price of 1-3 carat rounds decreased by 8.9% from the fourth quarter of 2024, based on our Q1 price list (link below).
While LGD wholesale prices continued to decline, the rate of decline slowed down from the double-digit declines of the last few quarters. Here is why.
LGD Wholesale Price List Trends
As in the past, the steepest price drops occur when supply pushes the envelope in size, color, and clarity. There are various causes for this, but the main one is the introduction of new categories with high prices and substantial gross margins.
Price reductions are caused by a mix of retailer pressures and increasing competition, resulting in early severe falls that taper down over time.
And this leads to the second lab diamond price trend. Prices are beginning to flatten. In some size ranges, the LGD wholesale price list fell by a low single digit or rose by nearly half a percentage. This is particularly visible in one-carat fancy and square shapes.
US Retailers’ Costs
The LGD wholesale price list represents wholesale market trading rather than retail costs. The average cost paid by retailers for a round, 1 carat, IGI-certified LGD was $207 per carat, about double the wholesale market price.
The larger the diamond, the greater the markup. In Q1, US retailers paid $228 for a 2-carat LGD, more than double the market trading price, and $263 for a 3-carat stone, representing a 115% markup.
In Q1, US jewelry retailers dropped their loose LGD expenditures by around a third year on year, but the amount of loose LGD they purchased dipped to a low single digit.
Wholesalers should take note that a +100% markup provides plenty of room to lower prices and should expect retailers to continue to press for it.
Q1 2025 retailers’ average wholesale costs and purchases heatmap of round, 3 carats, D-H/VVS1-SI2
US Retail Prices
Both wholesalers and retailers have very high gross margins on LGD wholesale prices. US jewelry dealers have high markups over their LGD costs, resulting in an average gross margin of 75% for 1-3 carat rounds, which is up nearly 9% year on year, according to Tenoris.
LGD Wholesale Price List Q1 2025
About The LGD Wholesale Price List
The LGD wholesale price list was launched in October 2018 in response to requests from diamond industry companies to track and understand lab-grown diamond wholesale pricing. It originally tracked transaction prices of parcels of uncertified loose LGD sold by polishers at the market’s lowest pricing.
As the lab-grown diamond market evolved, the price list became more focused on transaction prices for larger certified lab-grown diamonds in nice makes. Prices are for purchases of a non-large volume.
The bulk of lab-grown diamonds weighing two carats or more are CVD. Goods under 2 carats include CVD and HPHT, with HPHT-made LGDs trading at a discount to CVD-made LGDs.
For more details and specific data on the LGD Wholesale price list, please contact us.
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