This is the amount paid today for an engagement ring

How much does it cost to put a ring on the finger? According to the annual review by the Jewelry Forum, the Israeli groom paid on average NIS 6,150 this year for an engagement ring. A natural diamond still leads, with 76% of the choices, but a shift is noted on the ground: 21% of the grooms who chose a lab diamond paid on average NIS 8,300 and received a diamond with an impressive weight of one and a half carats.

They also note that the diamond world is not immune to changing fashions. In recent years, there has been a clear decline in preference for square cuts, and consequently in prices. Diamonds with cushion and princess cuts have lost tens of percent of their value, simply because fewer buyers request them. Like in clothing, style also determines price in jewelry.

At Diamond Factor, they explain that the jewelry market moves between two opposing trends. On the one hand, in the past three years, prices of small diamonds (up to four carats) have dropped by twenty to thirty percent, a decline of thousands of shekels depending on size and quality. For example, a diamond ring of 0.51 carats currently sells for about NIS 4,800, compared to about NIS 6,000 in the past. On the other hand, consumers feel less of the discount due to the rise in gold prices. In the past six months, the price of an ounce of gold jumped by 27% and reached a peak of 3,485 dollars.

It is no coincidence that the price of gold jumped by 27% within six months. A series of factors joined forces and pushed it upward. Central banks in China, Russia, and Turkey are buying gold in large quantities as part of a global trend to move away from the dollar. Geopolitical tension, especially in the Middle East, only increased demand for gold as a safe haven.

Also, persistent inflation and low interest rates make gold a stable option for those looking to preserve value. Investors also see it as a way to hedge risks from volatility in the stock markets, especially against the backdrop of Donald Trump’s unpredictable moves.

2024 was not an easy year for the diamond industry, globally and especially in Israel. The negative trend that began with the outbreak of the war in Ukraine in February 2022 continued, and in addition came the direct impact of the October war on local activity. On the international stage, sanctions imposed by the Western bloc following the war disrupted trade routes and led to changes in price levels. At the same time, there is a noticeable decline in demand for natural diamonds, mainly in the engagement ring sector, against the background of a gradual shift to synthetic products, lab diamonds.

In Israel, the industry suffered another blow with the outbreak of the “Sword of Iron” war: A sharp drop in incoming tourism, a decline in luxury goods consumption, and fewer flights from and to Israel – all these also affected diamond shipments. Many diamantaires began to expand into related fields, such as jewelry and gemstones. The local damage joined a global market that was already weak. And how does 2025 look? Has there been a significant change, and is it for the better? Some recovery has been recorded, but the market has not yet returned to normal, industry insiders note.

Meanwhile, as Israel’s relations with regional countries continue to be tested under political and economic scrutiny, a country not counted among Israel’s official partners surprised on a new front. Recently, an Israeli delegation participated in an international event for the diamond and jewelry industry held in Doha, Qatar’s capital, for the first time ever.

Already in 2021, Qatar was included in the Kimberley Process Certification Scheme (KPCS), to which Israel has belonged since its establishment, and under which Doha committed to allow access to Israeli traders. However, in practice, most of the trade in the Gulf takes place through the DMCC diamond exchange in Dubai, which also serves as a platform against traders from countries with which Israel has no official relations.