Diamond Prices Crash 51% as Lab-Grown Rivals Surge — SkimNews
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- Natural diamonds lost 51% of their value over five years, with a 1-carat stone now averaging $3,898 vs $8,007 in 2021, according to Rapaport Group; the Diamond Standard Index hit a record low of 2,490 in early August.
- Lab-grown diamonds sell for as little as $450 per carat vs $2,800–$3,200 for a comparable natural — up to 90% cheaper — and now account for 61% of engagement ring sales in 2025, up 239% since 2020, per The Knot.
- De Beers said in July it would halt production at its flagship Venetia mine in South Africa for more than two years, while at least two other diamond mines have announced permanent shutdowns in 2026.
- Signet Jewelers (parent of Kay Jewelers and Zales) saw shares surge 24% on Sept. 9 — its best trading day in nearly four years — after raising its annual profit forecast on strong lab-grown diamond demand; the stock is up 21% in 2026.
- Lab-grown diamonds generate gross margins of 60–65% vs 40–45% for natural stones, according to Gordon Brothers data cited by Raymond James analyst Rick Patel, who carries an outperform rating on Signet.
- Brilliant Earth is down 20% year to date but up 27% over the past three months, while Pandora (Copenhagen-listed) is up roughly 19% YTD as both expand lab-grown lines.
- Diamond Standard CEO Cormac Kinney said the wholesale market is already showing 'price appreciation for certain qualities' as mine closures tighten supply, calling it 'the beginning of a recovery.'
Why it matters: For consumers, lab-grown diamonds now dominate 61% of engagement ring sales at up to 90% below natural-stone prices, freeing budgets for weddings and homes. For investors, the margin gap is stark: lab-grown generates 60–65% gross margins versus 40–45% for naturals, rewarding retailers like Signet (up 21% YTD) while miners face mine closures. Physical diamonds remain a notoriously poor store of value — secondary sales can take over a year and often fetch less than half of retail.
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