Lab-grown diamonds are starting to lose their shine in the eyes of consumers as oversupply floods the market and buyers increasingly turn their attention back to natural stones, says World Diamond Council President Feriel Zerouki.
Since the middle of 2022, the natural diamond sector has been under pressure, following on from price highs in that same year. A strong driving force behind this has been the rapidly growing lab-grown diamond marketplace – particularly among younger jewellery buyers comparing Lab Grown vs Natural Diamonds for affordability.
Why Lab-grown Diamond Prices are Collapsing
Steep falls in the lab-grown diamond prices as output leaps, especially from manufacturers in China and India, are now undermining confidence in these synthetic stones, Zerouki told Reuters at a mining conference in Luanda.
"Recent trends show that lab-grown diamond prices are collapsing, and that is affecting how consumers feel about them," she said. Industry analyst Edahn Golan estimates that average wholesale prices for one- and two-carat lab-grown diamonds have fallen by as much as 96% since 2018.
Analysts say that if this price spiral continues, the perception of lab-grown diamonds vs. natural diamonds will shift even more. And lab diamonds risk being positioned more as low-cost fashion accessories and less as alternatives to natural diamonds, particularly in the crucial bridal segment.
"I think the lab-grown bubble has burst. We already see a shift within the trade and even at the retail level back toward natural diamonds," added Zerouki.
Zerouki is also De Beers' Vice President of Trading and Industry. She noted that a recovery in the demand for natural diamonds would not happen on its own.
The Luanda Accord: Producer Nations Uniting to Promote Natural Diamonds
She highlighted efforts like the Luanda Accord as crucial to rebuilding and strengthening the position of natural diamonds & gemstones.
The accord represents a collaborative agreement by diamond-producing nations and companies to establish a single marketing fund for the promotion of natural diamonds. Under the agreement, countries such as Angola, Botswana, the Democratic Republic of Congo, Namibia, and South Africa commit to setting aside 1% of their annual diamond sales proceeds toward campaigns aimed at uplifting and protecting the image of natural diamonds.
What This Shift Means for GEMGEM Buyers and Sellers
At GEMGEM, we focus only on authentic natural diamonds and gemstones – never lab-grown. And educate buyers on the real difference between Lab Grown vs. natural diamonds. As the market moves back towards natural stones, our community of buyers and sellers is already aligned with this direction.
For buyers, that means you can shop pre-owned natural diamond jewellery with professional checks and independent authentication where applicable (for example, IGI), so you know what you are really getting. For sellers, it means a place where the long-term value and story of your natural pieces are understood and respected, and you can easily sell your natural diamond jewellery to a global audience.
In a time when lab-grown prices are collapsing, and confidence is uncertain, our goal is simple:
to make it easier and safer for you to buy and sell real, natural diamond jewellery with clarity, transparency and trust.
Sources:
• Reuters - World Diamond Council on lab-grown price collapse
• NDTV (Reuters Repost) - Lab-grown gems losing value
