In a modern twist on an old parable, diamonds are becoming more accessible, similar to the scenario where they are so abundant that they lose their value. The rise of diamond-growing technology is making these precious stones increasingly affordable. Now, Chinese eCommerce giant Alibaba offers a synthetic diamond-making machine for $200,000, a price comparable to a high-end sports car, reflecting the growing trend of lab-grown diamonds.
According to Ars Technica, lab-grown diamonds are becoming more popular and accessible. Signet Jewelers, which owns brands like Kay Jewelers and Jared, reported that lab-grown diamonds are capturing a larger share of diamond sales. In the second quarter of fiscal year 2025, sales of lab-grown diamond fashion jewelry increased by over 25%, leading to a drop in prices.
Signet Jewelers CEO Virginia Drosos noted that since 2019, lab-created diamonds have been widely available, and their prices have consistently decreased. She added that consumers are becoming more informed about the differences between lab-grown and natural diamonds, which affects their expectations regarding value retention.
Pandora, another major jeweler, is also seeing a rise in young consumers opting for synthetic diamonds. This shift comes amid economic pressures, as recent research from PYMNTS highlights that many consumers’ incomes are not keeping up with inflation, leading them to seek more affordable alternatives.
In response to these trends, the diamond market is becoming more streamlined and accessible. For example, B2B jewelry marketplace Nivoda has optimized its inventory distribution, enabling faster delivery times of just one to two days in Europe, similar to Amazon’s Fulfillment by Amazon (FBA) program.
