Natural-diamond prices have fallen to their lowest level since 2008 as demand continues to slide from the pandemic-era peak, trade figures show.

A widely watched index of one-carat natural diamonds fell more than 7% in September alone, extending a long decline driven by weaker consumer spending and stiff competition from lab-grown stones.

Lab-grown diamonds, which are far cheaper and visually identical, have taken a growing share of engagement-ring sales, while producers in China have added further pressure on natural prices.

Retail jewellers in the United States and other major markets have responded with discounts as they try to clear stock, and wholesalers report thin trading across the pipeline. Some dealers say stones are now changing hands at discounts not seen in nearly two decades, as buyers wait for prices to settle before restocking.

Analysts see little sign of a rebound. With younger buyers choosing lab-grown stones and economic uncertainty weighing on luxury spending, natural-diamond prices could stay under pressure through the rest of the year.