Supply glut, lab-grown alternatives: What's behind the fall of diamond prices…
Natural diamonds have lost more than half of their value over the past five years.
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Several drivers are conspiring against diamonds, including a
Several drivers are conspiring against diamonds, including a glut of mined stones that hit the market over the past few years.
And while attempts to clear out that oversupply
And while attempts to clear out that oversupply are underway, another trend is compounding the issue: a rise in lab-grown diamonds. Diamonds have lost much of their shine in recent years.
Natural diamonds have lost more than half of
Natural diamonds have lost more than half of their value over the past five years. On average, a 1-carat stone now goes for $3,898, or 51% less than its average price of $8,007 in 2021, data from diamond trading platform Rapaport Group shows. The Diamond Standard Index, which tracks prices of so-called investment-grade diamonds, hit 2,490 in early August — its lowest level ever. This week, it was hovering just north of 2,500.
Several drivers are conspiring against diamonds, including a
Several drivers are conspiring against diamonds, including a glut of mined stones that has hit the market over the past few years. And while attempts to clear out that oversupply are underway, another trend is compounding the issue: a rise in lab-grown diamonds.
"There's a lot of doom and gloom about
"There's a lot of doom and gloom about natural diamonds," Diamond Standard CEO Cormac Kinney told CNBC. "There was a very large overhang of excess inventory back in 2023 and 2024 after excess production during Covid, and then [there's been] the falling sales due to the lab-grown [diamonds]."
Lab-grown diamonds are gems with the same chemical
Lab-grown diamonds are gems with the same chemical and physical properties as natural diamonds that are produced by applying heat and pressure to carbon seeds or from carbon-containing gas in a vacuum chamber. Although they are grown above ground, they look and feel identical to stones that are formed deep within the Earth.
The key difference between the two is price
The key difference between the two is price. A nearly colorless lab diamond with very, very slightly included clarity that has an excellent cut can go for $450 on Brilliant Earth's online marketplace, a CNBC search found. By comparison, a natural stone with the same specs falls in the range of $2,800 to $3,200. The price differential is due largely to how resource-intensive mining natural diamonds can be, as the process requires lots of fuel and labor.
Lab-grown alternatives are priced lower than natural diamonds
Lab-grown alternatives are priced lower than natural diamonds at every carat weight, according to Brilliant Earth. A man-made stone can be priced as much as 90% lower than its mined equivalent, although the exact difference in price depends on the size, cut and color of a stone.
This has led cash-strapped consumers to flock to
This has led cash-strapped consumers to flock to more affordable human-made diamonds in engagement and fashion jewelry, adding pressure on natural stone prices. Engagement rings with lab-grown center stones made up 61% of all engagement ring sales in 2025, up 239% since 2020, according to The Knot 2026 Real Weddings Study.
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Supply glut, lab-grown alternatives: What's behind the fall of diamond prices to record lows
Natural diamonds have lost more than half of their value over the past five years.
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Source: CNBC