Why Diamond Prices Are Falling So Fast

Overview

Natural diamond prices have dropped sharply—by about 60% over five years, from roughly $10,000 per carat at an all-time high (March 2022). The video attributes this plunge mainly to the rapid rise of lab-grown diamonds, which enter the market at much lower prices and have captured significant consumer share, putting pressure on the long-established natural diamond industry.

Key Points

• Lab-grown boom driving price collapse

  • Lab diamonds are produced by growing diamond crystals from a seed in a vacuum chamber using carbon-rich gases under controlled heat and pressure.
  • Because they can be produced at scale, lab diamonds typically sell for far less than mined diamonds.

• Consumer adoption is accelerating

  • In the U.S. (2026), lab-grown diamonds are reported to make up 61% of engagement ring sales—a 239% increase since 2020.

• Retailers pivot away from mined diamonds

  • Retailer Pandora reportedly stopped using mined diamonds in 2021 and shifted to 100% lab-grown.
  • The video also notes that a large portion of engagement rings sold today are now synthetic.

• Advantages beyond price

  • The video highlights a much lower carbon footprint for lab-grown diamonds, claiming ~90% lower emissions than mined diamonds of the same size.
  • It also frames lab-grown options as a cleaner alternative to problems tied to mined supply chains.

• Resale value concerns for both types

  • The video argues lab-grown diamonds may have weaker resale value than natural stones.
  • However, it also suggests buyers shouldn’t expect strong financial returns from natural diamonds either.

• Market disruption: concentration and geopolitics

  • Diamond mining is concentrated in a few countries, including Russia, Botswana, Angola, Canada, and the DRC.
  • The video cites geopolitical uncertainty, excess polished inventory, and higher import tariffs (notably from India) as pressures forcing producers to adapt.

• Major producers adjusting and experimenting

  • De Beers reportedly paused production at its Venetia mine in South Africa for over two years to cut costs and streamline operations.
  • De Beers previously launched and then shut down its lab-grown brand Lightbox, after wholesale lab prices allegedly fell by about 90%.
  • Alrosa (Russia’s state-owned producer, ~30% of global output) is also said to have reduced production between 2023 and 2025.

• Potential stabilization rather than collapse

  • The video suggests natural prices may have reached a low point.
  • According to Mano from Rapaport and the speaker’s organization, pricing shows signs of stabilizing, possibly already near “rock bottom.”

Conclusion

The video frames falling natural diamond prices as a supply-and-demand shock driven by lab-grown competition, ending with the idea that the market may be shifting from free-fall toward stabilization—with consumers benefiting from greater affordability, including the ability to buy larger stones.

Presenters / Contributors

• Mano (Rapaport)