【USA】’Fake’ Gems Push Out ‘Real’ Ones… Diamond Rough Prices Plunge 40%

In the United States, surging demand for lab-grown diamonds is causing a significant drop in the price of natural diamonds.

According to Bloomberg on the 3rd (local time), De Beers, the world’s largest supplier of rough diamonds, lowered the price of its ‘Select Makeables’ rough diamonds for wedding rings to $850 per carat (approximately 1.13 million KRW) at the end of July this year. This represents a 15% price cut over the past month. This product had been priced above $1,400 per carat (approximately 1.85 million KRW) until June of last year, marking a roughly 40% plunge in price over one year. The media pointed out that while the drop in natural rough diamond prices is due to surging demand for lab-grown diamonds, rings set with natural diamonds are not being heavily discounted.

Industry experts cite the expansion of the lab-grown diamond market as one reason for the decline in natural diamond prices. Lab-grown diamonds are created in high-temperature, high-pressure facilities that replicate the natural diamond formation process. Initially used for producing industrial diamonds, the technology has gradually advanced and is now applied to low-cost jewelry.

In the U.S., solitaire diamond rings of 1-2 carats are popular for engagement rings, and the lab-grown diamond industry has entered this market. In fact, the share of lab-grown diamonds in India’s diamond exports has risen to 6% this year, more than six times the level from five years ago (1%).

De Beers analyzed the recent price weakness as a natural decline in demand due to the aftermath of the pandemic. However, they also expressed the view that while there has been some market penetration by lab-grown diamonds, they do not see it as a structural change.

Meanwhile, De Beers has contributed to the expansion of the lab-grown diamond market by introducing its own manufactured lab-grown diamonds at low prices since 2018.