You’re getting ready to pop the question and want to make sure that every moment is perfect. Start planning early because there could be a few hiccups along the way. And some may be a result of Russia’s recent invasion of Ukraine.
How does a crisis thousands of miles away affect your big, beautiful diamond engagement ring? Here are 10 things you should know.
- In response to the Russian invasion, President Joe Biden issued an executive order on March 11 that prohibits the import of Russian diamonds and other items to the U.S. That same day, the Jewelers Vigilance Committee, which offers legal education and compliance guidance to the jewelry industry, told U.S. companies to immediately stop any direct diamond transactions with Russian businesses.
- Nearly one-third of the world’s rough diamond supply comes from Russia, making the country the largest diamond producer by volume. According to the U.S. Treasury, about 90% of Russian diamonds are found in mines operated by diamond mining company Alrosa. To put that into perspective, Alrosa produced 32.4 million carats of diamonds last year.
- Alrosa and its CEO, Sergei S. Ivanov, were placed on the growing list of sanctions. Why? One-third of the company is owned by the Russian government and another third is owned by Sakha (aka Yakutia), the Russian republic where Alrosa is based. Plus, Ivanov’s father, Sergei B. Ivanov, is reportedly a very close ally of Russian President Vladimir Putin.
- Some experts predict that the sanction list and executive order banning Russian diamonds could cause the rough diamond supply to be slashed by at least 25%. As a result, gem prices could rise — especially in the U.S., which makes up about half of the world’s demand for diamonds. But certain industry analysts don’t expect this shortage to kick in right away. They recommend keeping an eye on prices around the middle of the year, when stores begin stocking up on diamond jewelry for holiday shopping.
- We know you’re impatient for your perfect engagement ring. But as long as the sanction list is in place, it could take a few extra months for manufacturers to receive rough diamonds for cutting and polishing. After that point, the polished stones will also need time to travel to jewelry stores for sale.
- The world’s diamond supply is already lower than it has been in a decade. That’s because demand for diamond jewelry was on the rise throughout the pandemic. Shoppers reportedly turned to their stimulus checks and savings for a bit of splurging. According to a report from management consulting firm Bain & Company, diamond jewelry sales were about 30% higher in 2021 than 2020. The report also expects an increased demand for diamonds during the first half of this year.
- All is not lost. Diamonds are still available, but U.S. businesses might need to start sourcing them from other locations across the globe, such as Canada, Brazil, Africa and Australia.
- If you’re still feeling uneasy, you could always opt for a lab-grown diamond. These stones are also real diamonds! They’re just created in a laboratory, so there’s no mining involved. Plus, they’re known to be 30-40% cheaper than natural diamonds!
- Want to know whether a gem you’re eyeing has a Russian background? Ask your jeweler! Diamonds often pass through many countries before making their way to your local jewelry store. So, it can sometimes be difficult to pinpoint their origin. But over the years, the diamond industry has made it easier for jewelers to determine each stone’s history.
- When you shop with Gage Diamonds, you won’t have to worry about Russian ties to your diamond. We’re no longer buying diamonds, precious metals or other gemstones from Russia. Plenty of credit card companies are also increasing interest rates in light of this crisis and inflation. But our financing partner, LendFirm, is keeping the same rates. We’re still offering financing at 4.95% for up to 24 months on everything, from engagement and wedding rings to diamonds and other fine jewelry. No hidden fees, penalties, tricks or gimmicks. Just another reason to get engaged with Gage and finance your purchase with LendFirm!
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Gage Diamonds is Chicago's premier jewelry showroom and online retailer of engagement rings, wedding bands, and fine jewelry. We offer a selection of dazzling handpicked diamonds, including certified natural diamonds, certified lab-grown diamonds and moissanites.
We’re committed to helping you find the ring of your dreams. For inspiration, browse our selection of natural and lab-grown diamonds, or set up an appointment with a member of our trusted staff at our in-person showroom.
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