At the recent New York Jewelry Show, a retailer raised a great question about the future of diamond pricing, with concerns over potential declines in both lab-grown and natural diamonds. As a manufacturer of lab-grown diamonds (LGDs), this question hits close to home. There’s still a lot of mystery—and frankly, marketing mythology—surrounding natural diamonds’ “value.”
? Diamonds Aren’t Actually Rare By Nature—Just Controlled by Industry
The rarity of mined diamonds is largely a manufactured perception. A closer look reveals vast reserves that go untouched to keep prices high. By tightly managing the release of diamonds into the market, major players like De Beers and Alrosa have historically managed stockpiles and released diamonds strategically to maintain high prices. During the pandemic, they reportedly held over $3.5 billion in unsold diamonds, waiting until the timing was right to release them to keep prices steady (source). Many more articles in Bloomberg and South China Morning Post show how diamond mining companies control supply to maintain the illusion of rarity—explore these insights and see through the myth. (Are diamonds really that scarce? )
? TDiamonds as an “Investment” Is Misleading
Diamonds, while culturally cherished, simply don’t hold their value the way true investments do. Since 1982, while the S&P 500 index grew over 2,800%, diamond prices have remained flat with little to no real growth. The resale value of most diamonds drops significantly; selling a diamond ring on the secondary market often returns less than half of its purchase price.
Consider this: A $10,000 investment in a 1-carat diamond ring in the early 1980s is worth most likely less today in the secondary market. Meanwhile, the same amount invested in the S&P 500 or real estate would have grown many times over. Real estate and stocks outperform diamonds by a long shot, making them a sounder choice for building value over time.
? A Masterclass in Marketing, Not Scarcity
Marketing campaigns in the 20th century famously cemented the “diamond is forever” slogan and encouraged the “two months’ salary” guideline, embedding the idea of diamond rings as essential symbols of love and wealth. These campaigns instilled a sense of scarcity and significance around diamonds when, in reality, they are as accessible as many other luxury commodities.
? Lab-Grown Diamonds Are Changing the Landscape
Lab-grown diamonds provide a transparent, ethical, and affordable alternative, offering the same beauty, brilliance, and chemical makeup without inflated prices or artificial scarcity. They resonate with today’s buyers, particularly those prioritizing ethics and affordability. Prices for LGDs have become increasingly competitive, especially as technology advances to support better quality and lower costs in larger stones. This trend is adding pressure to mined diamond prices across the board, especially affecting smaller diamonds or clusters labeled as ‘natural’.
Diamonds are beautiful and meaningful, no matter their origin—but they’re not rare, nor an investment. By breaking down these myths, we can empower each other to make informed choices in the era of sustainable, accessible diamond buying.
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