Editor’s Note
This article highlights a notable market shift as reported by Feriel Zerouki of the World Diamond Council and De Beers. It discusses how oversupply and falling prices are diminishing the appeal of lab-grown diamonds, leading consumers back toward natural stones.
Feriel Zerouki, President of the World Diamond Council and Vice President of Trading at De Beers, has announced a significant shift in the diamond market. She notes that lab-grown diamonds are becoming less attractive because of oversupply and a decline in their prices, pushing consumers to favor natural stones again.
Previously, the natural diamond industry experienced a price slump starting mid-2022, partly because lab-grown gems grew in popularity, especially among younger buyers. However, increased production in China and India has led to a sharp fall in lab-grown diamond prices. This price collapse has undermined consumer confidence in synthetic gems.
Experts warn that lab-grown diamond prices might fall so low they become mere fashion accessories, unable to compete with natural diamonds, particularly in the crucial bridal market.
To support natural diamonds, initiatives like the Luanda Accord are being promoted. This agreement involves diamond-producing countries and firms creating a collective marketing fund. Nations such as Angola, Botswana, the Democratic Republic of Congo, Namibia, and South Africa have committed 1% of their annual diamond sales revenue to campaigns promoting natural diamonds.
This news signals a major industry trend reversal, potentially affecting the profitability of lab-grown diamond manufacturers and boosting the value and demand for natural diamonds. This could impact jewelry retailers and commodity markets.