After sky-high increases in diamond prices last year, they’re finally coming back down to earth, according to research group Rapaport.

This story first appeared in the July 30, 2012 issue of WWD. Subscribe Today.

The group said the price for one-carat diamonds dropped 13.7 percent year-over-year in June. During the first half of 2012, prices for one-carat diamonds fell 3.6 percent, with the steepest declines occurring during the latter part of May and through June.

Rapaport also released data relating to the asking price of diamonds, and found that over the last month, prices for one-carat certified diamonds fell 1.6 percent, while 0.3 carat stones fell by 1.2 percent. Half-carat diamonds declined 1.4 percent.

Rapaport attributed the drops to slowing demand in the Far East and India, as the Indian rupee has recently fallen sharply. It also pointed to softening demand in Europe due to the banking crisis and woes surrounding the uncertain global economy. The group added that the decline may be linked to the market correcting itself following diamond-price increases in the first half of 2011.

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