Are Natural Diamonds Losing Their Value?

Natural diamonds have long been associated with rarity, luxury and lasting value. But in recent years, the market has undergone a significant shift. Following exceptionally strong diamond jewellery demand in 2021 and 2022, the natural diamond sector entered a sharp downturn. The IMF has attributed this to weaker global demand, particularly in China and the US, higher industry inventories and growing competition from laboratory-grown diamonds.

One of the biggest changes has been the growth of lab-grown diamonds. According to the IMF, laboratory-grown diamonds accounted for more than a fifth of global diamond jewellery sales in 2024. At retail, they can also cost substantially less than comparable natural diamonds.

Technology has played an important role in that shift. GIA has documented significant improvements in the size, colour and quality of laboratory-grown diamonds. Large, colourless stones that were once difficult to produce have become increasingly common as growing techniques have advanced.

This has given consumers considerably more choice — and has challenged the traditional pricing structure of the diamond industry.

However, declining market prices shouldn't be confused with natural diamonds becoming worthless. Natural diamonds remain a distinct product with geological rarity, and the market varies considerably according to the individual stone. The IMF also expects natural-diamond demand to recover partially over the medium term, although it notes considerable uncertainty around that outlook.

What has undoubtedly changed is the choice available to the person buying the diamond. A beautiful diamond no longer has to be limited by the price structure of the natural market.

For us, that means the conversation can move away from what a diamond is expected to cost — and towards choosing the stone you genuinely love.