You’re gettingready 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. Andsome may be a result of Russia’s recent invasion of Ukraine.
How does a crisisthousands of miles away affect your big, beautiful diamond engagement ring?Here are 10 things you should know.
- In response to theRussian invasion, President Joe Biden issued an executive order on March 11 that prohibits theimport of Russian diamonds and other items to the U.S. That same day, theJewelers Vigilance Committee, which offers legal education and complianceguidance to the jewelry industry, told U.S. companies to immediately stop anydirect diamond transactions with Russian businesses.
- Nearly one-third ofthe world’s rough diamond supply comes from Russia, making the country thelargest diamond producer by volume. According to the U.S. Treasury, about 90% of Russian diamondsare found in mines operated by diamond mining company Alrosa. To put that intoperspective, 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-thirdof the company is owned by the Russian government and another third is owned bySakha (aka Yakutia), the Russian republic where Alrosa is based. Plus, Ivanov’sfather, Sergei B. Ivanov, is reportedly a very close ally of RussianPresident Vladimir Putin.
- Some expertspredict that the sanction list and executive order banning Russian diamondscould cause the rough diamond supply to be slashed by at least 25%. As aresult, gem prices could rise — especially in the U.S., which makes up abouthalf of the world’s demand for diamonds. But certain industry analysts don’texpect this shortage to kick in right away. They recommend keeping an eye onprices around the middle of the year, when stores begin stocking up on diamondjewelry for holiday shopping.
- We know you’reimpatient for your perfect engagement ring. But as long as the sanction list isin place, it could take a few extra months for manufacturers to receive roughdiamonds for cutting and polishing. After that point, the polished stones willalso need time to travel to jewelry stores for sale.
- The world’s diamondsupply is already lower than it has been in a decade. That’s because demand fordiamond jewelry was on the rise throughout the pandemic. Shoppers reportedlyturned to their stimulus checks and savings for a bit of splurging. Accordingto 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 halfof this year.
- All is not lost.Diamonds are still available, but U.S. businesses might need to start sourcingthem from other locations across the globe, such as Canada, Brazil, Africa andAustralia.
- If you’re stillfeeling uneasy, you could always opt for a lab-grown diamond. These stones are also realdiamonds! 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 knowwhether a gem you’re eyeing has a Russian background? Ask your jeweler!Diamonds often pass through many countries before making their way to yourlocal jewelry store. So, it can sometimes be difficult to pinpoint theirorigin. But over the years, the diamond industry has made it easier forjewelers 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 longerbuying diamonds, precious metals or other gemstones from Russia. Plenty ofcredit card companies are also increasing interest rates in light of thiscrisis and inflation. But our financing partner, LendFirm,is keeping the same rates. We’re still offering financing at 4.95% for up to 24months on everything, from engagement and wedding rings to diamonds and otherfine jewelry. No hidden fees, penalties, tricks or gimmicks. Just anotherreason to get engaged with Gage and finance your purchase with LendFirm!
Have aquestion? We can help!
Gage Diamonds is Chicago’s premier jewelry showroom andonline retailer of engagement rings, wedding bands, and fine jewelry. We offera selection of dazzling handpicked diamonds, including certified naturaldiamonds, certified lab-grown diamonds and moissanites.
We’re committed to helping you find the ring of yourdreams. For inspiration, browse our selection of natural and lab-grown diamonds, or set up an appointment with a member of ourtrusted staff at our in-person showroom.
We offer no-credit-needed financing – feel free to apply and get your approval within 24 hours!
Pay over time, because love shouldn’t wait.