The Diamond Industry is Changing

https://qz.com/natural-diamonds-industry-tariffs-lab-grown-consumers

Quotes submitted:

1. What's your take on the global diamond industry in mid-2025? What are the main issues pulling sales down and why?

I think the global diamond industry is certainly experiencing some major changes in line with trends in recent years. Lab-grown diamonds are more popular and accessible than ever before, which is the main driving factor behind the major changes we’ve seen in the market. Broader global markets are experiencing a lot of volatility now, too, which means the supply chains involved in raw material commerce, including natural diamonds, are affected and less predictable. I think the volatility in general is affecting the consumer’s demand for luxury products, which is a category diamonds tend to fall under almost exclusively. It goes hand-in-hand with other trending factors, like an increasing awareness of diamonds’ lack of actual scarcity, issues with unethical sourcing, and many consumers favoring vintage pieces.

 

2. Source after source reports that natural diamonds are in free fall right now, as synthetic diamonds rise in sales revenues. What's going on with natural diamonds and why are sales collapsing right now?

I would hesitate to describe natural diamond prices as “in free-fall” because they’re still rather costly, but it’s true that the demand is not what it used to be, and it’s trending downwards still. Ultimately I don’t think the demand is really there like it used to be. Natural diamond marketing relied a lot on consumers being unaware of the downsides, or feeling obligated to perceive diamond jewelry as valuable and desirable. Lab-grown diamonds play more to a consumer who spends more time online, researching their purchases, and getting a good deal. I think there’s something to be said about scarcity, too. People have been mass-extracting and processing natural diamonds for so long now, and they also happen to be nearly indestructible. It makes sense to think that, at some point, we’d either produce so many that they’d be more abundant, or we’d get the technology to produce them in a lab, making the expensive, labor-intensive industry required to source them obsolete.

 

3. Aside from the rise of synthetic diamonds, what else ails natural diamond sales right now? Inflation? Tariffs? Consumer sentiment? Mining and exploration problems? What's your take and why?

Inflation and tariffs definitely play a role because these are things that directly affect the cost of goods and therefore the consumer’s ability to buy them. However I think consumer sentiment is the biggest driving factor behind lab-grown diamond popularity. They’re getting the same product for a fraction of the price–it’s chemically the same exact thing. Mix that with ethical concerns, and the consumer is hitting multiple birds with one stone by buying lab-grown. Current spending habits and norms, a lot of which revolve around making luxury items and services more accessible to consumers, seem to downplay whatever perceived importance there used to be to buying “the real thing” especially considering that the lab-grown version is nearly just as real, chemically speaking.

4. In your opinion, can natural diamonds survive the synthetic diamond onslaught? Will there always be a decent market for natural gems?

There definitely always will be a demand for natural diamonds. People love products that are both beautiful and derived from the natural world. Diamonds are a great example of that. But I think the market will have to continue to evolve, you’ll see a continued rising popularity in natural colored diamonds, for example. New marketing will be crucial, same with highlighting ethically sourced products. It will always boil down to the need for a consumer who wants to buy natural instead of lab-grown. What makes that consumer make that decision? That is what will guide the future of the industry.

5. Any particular advice for diamond buyers? Is synthetic a better deal than natural diamonds right now? Should shoppers buy online or not? Do natural diamonds hold their value as sales drop? What's your take and why?

I would tell my friends and family, number one, avoid buying any engagement sized diamond, natural or lab-grown, online. You should always purchase from a trusted source and even if the website you are purchasing from has hundreds of good reviews, it's always best to physically come in and look at the diamond you are about to spend major cash on. Also, I would say buy whatever fits your current prerogative, whether it be that a Natural Diamond is preferred over a lab-grown because it's "not the real thing" and the family you are purchasing this for has a stigma against anything man-made. Or preferring a Lab Grown Diamond because of its more affordable pricing, sustainability and sourcing concerns. Either way it's not something I can recommend. Buy the diamond that's right for your budget and the person you are buying it for.

Prices have been falling, and we don’t see any reason they’ll stop falling, right now. In my experience, precious metals like gold and silver are safer bets from a value-holding perspective. That’s not advice, it’s just the reality. If someone really wants a diamond though, buy something in your price range. You may have a sentimental reason to buy a natural diamond, and if you can find something in your price range that’s GIA certified, I’d go for it. Don’t be afraid of waiting for a better price, either, because it could very well come down. That being said, many people gravitate towards lab-grown diamonds for valid reasons, so you shouldn’t hesitate over social stigma or anything like that if that’s what you want to do, just make sure it's the right stone for whoever you are buying it for.

As for buying online, there’s nothing wrong with buying jewelry or smaller stones because there are numerous reputable sellers out there. That being said, I always recommend going into a shop or storefront so you can physically look at what you’re buying, especially with larger Natural Diamonds that have imperfections in them. Take a look at a natural diamond and then compare it with a lab-grown one with your own hands and eyes with a magnifying loop. It’s a worthwhile experience and, in our industry, that human connection still means a lot."