Lab-Grown Diamonds: Are They Losing Their Allure?

H2 – Changing Trends in the Diamond Industry
Lab-grown diamonds are experiencing a decline in popularity, as the World Diamond Council President Feriel Zerouki highlights. Increasing oversupply and changing consumer preferences are steering buyers back toward natural stones.

H3 – Decline in Prices
Since peaking in early 2022, the natural diamond market has faced a price drop. This trend coincides with a surge in the appeal of lab-grown gems, particularly among younger jewelry enthusiasts.

However, the recent plummet in lab-grown diamond prices, driven by heightened production in regions like China and India, is shaking consumer confidence in these synthetic gems. Zerouki shared these insights during an interview at a mining conference in Luanda.

H3 – Market Dynamics
According to diamond industry analyst Edahn Golan, the wholesale price for one-carat and two-carat lab-grown diamonds has decreased by as much as 96% since 2018. This drastic reduction raises concerns that lab-grown diamonds could simply become fashion accessories, losing their competitive edge in vital markets such as bridal.

Zerouki believes the “lab-grown bubble has burst,” indicating a notable shift in the trade toward a renewed interest in natural diamonds.

H2 – Future Initiatives
Zerouki, who also holds the position of Vice President of Trading and Industry at De Beers, asserts that a resurgence in demand for natural stones won’t occur spontaneously. Instead, it will require structured initiatives like the Luanda Accord.

H3 – The Luanda Accord
This agreement, supported by diamond-producing countries and companies, aims to establish a collective marketing fund dedicated to promoting natural diamonds. Participating nations, including Angola, Botswana, the Democratic Republic of Congo, Namibia, and South Africa, have committed to allocating 1% of their annual diamond sales revenue to this campaign.

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As the diamond industry evolves, do you believe consumer preferences will shift significantly back toward natural diamonds?