The Hidden Cost of Falling Diamond Prices, Lab-Grown Competition and Lost Livelihoods

 

The potential sale of De Beers highlights the challenges facing the natural diamond industry. The rise of lab-grown diamonds, weakening consumer demand, deteriorating economic conditions and years of changing consumer perceptions have combined to place unprecedented pressure on an industry that supports millions of livelihoods around the world.

The natural diamond industry is facing a defining moment. De Beers, one of the world’s most recognised diamond producers, is at the centre of a proposed ownership change as its controlling shareholder, Anglo American, seeks to sell its 85% stake in the business.

According to reports, luxury group Richemont, owner of Cartier and Van Cleef & Arpels, is considering joining a consortium led by former De Beers chief executive Gareth Penny. Other potential participants reportedly include Belgian diamond manufacturer Pluczenik and US jewellery retailer Signet.

The involvement of major luxury, manufacturing and retail businesses reflects the strategic importance of natural diamonds to the jewellery trade. However, it also raises a difficult question: are the challenges facing the diamond industry temporary, or are they evidence of a fundamental structural change?

The rise of lab-grown diamonds has changed the market

One of the most significant developments affecting natural diamonds has been the rapid growth of lab-grown diamonds.

Chemically and physically similar to natural diamonds, lab-grown stones can offer consumers comparable visual characteristics at substantially lower prices. Advances in production technology have increased supply and intensified price competition, particularly in the commercial and lower-priced segments of the diamond market.

For consumers primarily interested in appearance and size, lab-grown diamonds can be an attractive alternative. But their growing availability has also changed expectations about what a diamond should cost.

Natural diamonds and lab-grown diamonds are produced through very different processes. Natural diamonds are geological products formed over immense periods of time and recovered through mining. Lab-grown diamonds are manufactured using industrial processes that require equipment, energy and ongoing technological investment.

As manufacturing capacity expands and production becomes more efficient, lab-grown diamond prices can fall sharply. This creates a challenge for natural diamonds, whose supply depends on geological discoveries, mining operations, labour, infrastructure and substantial capital investment.

The consequences extend beyond competition at the retail counter. When consumers begin comparing natural diamonds with substantially cheaper laboratory-grown alternatives, natural diamond producers, manufacturers, wholesalers and retailers must reconsider pricing, marketing and inventory strategies.

The result has been significant pressure on diamond prices, although the impact varies according to size, quality, rarity and market segment. Higher-quality and genuinely rare natural diamonds may behave differently from more readily available commercial goods.

Economic uncertainty is adding to the pressure

Lab-grown diamonds are not the only factor affecting the natural diamond market.

Diamonds are discretionary purchases. When household budgets are under pressure, interest rates remain elevated, employment prospects become uncertain or consumers worry about the economic outlook, expensive jewellery can be postponed or removed from the shopping list altogether.

Weakening consumer confidence in major markets, economic uncertainty and changing spending priorities can therefore reduce demand for natural diamonds at the same time that lab-grown supply is expanding.

This combination is particularly difficult for an industry that relies on consumer confidence, luxury spending and the willingness of buyers to pay premiums for natural stones.

When demand weakens, retailers reduce orders, manufacturers become more cautious, wholesalers hold inventory for longer and miners may be forced to reduce production or sell rough diamonds at lower prices.

These pressures can reinforce one another. Lower prices affect profitability, weaker profitability reduces investment, and uncertainty throughout the supply chain makes it harder for businesses to plan for the future.

De Beers illustrates the scale of the challenge

De Beers has been loss-making since 2023, according to the figures reported in the source material. For 2024, it recorded an underlying earnings loss before interest and tax of approximately US$787 million, on revenue of nearly US$3.5 billion.

The proposed sale of Anglo American’s controlling stake has consequently attracted considerable attention.

For Richemont and other potential investors, ownership could provide greater influence over an important part of the natural diamond supply chain. For the industry as a whole, however, the central issue is whether consumer demand can recover sufficiently to support a sustainable business.

If the downturn is cyclical, an improvement in economic conditions and luxury spending could provide relief. If the market is undergoing a more permanent structural change because of lab-grown competition and evolving consumer preferences, a recovery may be considerably more difficult.

The distinction matters. A temporary decline can be managed by reducing costs and adjusting production. A structural decline requires businesses to reconsider their long-term strategies, their target markets and the reasons consumers should continue choosing natural diamonds.

The unintended consequences of the ‘blood diamond’ narrative

Another important chapter in the industry’s difficulties concerns the public campaigns against so-called blood diamonds.

The term emerged from genuine and serious concerns about diamonds being used to finance armed conflict and human rights abuses. These issues deserved attention, and initiatives such as the Kimberley Process were developed to help prevent conflict diamonds from entering legitimate international trade.

However, there is a difference between exposing documented wrongdoing and allowing a broad public narrative to create the impression that the entire natural diamond industry is associated with conflict or exploitation.

In the public debate, the distinction between diamonds from conflict areas and diamonds responsibly mined in other parts of the world has not always received the attention it deserves.

Botswana, Namibia, South Africa and other diamond-producing regions have developed legitimate mining industries that provide employment, government revenue, infrastructure and opportunities for local communities. In some countries, diamond revenues have played a significant role in funding public services and supporting economic development.

When consumers are encouraged to view natural diamonds as inherently unethical, without understanding where individual stones originate or how they were produced, the consequences can extend well beyond the intended target of the campaign.

The uncomfortable question is whether well-intentioned campaigns can sometimes cause harm to the very people they are meant to protect.

A campaign designed to discourage the purchase of diamonds associated with conflict may also discourage purchases of responsibly sourced diamonds from communities whose livelihoods depend on mining.

When demand falls, the consequences can reach miners, independent diggers, cutters, polishers, traders and local businesses. Workers who have spent years developing specialised skills cannot necessarily transfer those skills to another industry overnight.

Small-scale miners and independent diggers are particularly vulnerable. Unlike large corporations, they may have limited financial reserves and few alternative sources of income. If their stones become harder to sell or their prices fall below the cost of extraction, their livelihoods can disappear.

This does not mean that concerns about human rights, environmental damage or conflict financing should be dismissed. They remain important. It means that campaigns should be evidence-based, specific and attentive to the economic consequences of their demands.

The problem with being an armchair warrior

Public advocacy can play an important role in exposing misconduct and encouraging responsible business practices. But there is a danger when people who have little direct experience of an industry campaign for sweeping changes without fully considering the consequences.

It is relatively easy to demand that consumers stop buying a product. It is much harder to understand what happens to the workers, families and communities whose incomes depend on producing it.

An armchair warrior can advocate for a seemingly simple solution from a comfortable distance, without having to live with the consequences if the solution fails.

In the diamond industry, a blanket rejection of natural diamonds can affect people far removed from the controversies that prompted the original campaign. A responsible miner in southern Africa, an independent digger, a diamond polisher in India or a small jewellery business may have no connection to the conduct being condemned, yet still suffer from the resulting decline in demand.

The same principle applies to many industries. Campaigns that focus exclusively on one perceived problem can overlook the broader economic system in which millions of people work.

Good intentions do not automatically produce good outcomes. Effective advocacy requires an understanding of both the problem being addressed and the people who may bear the cost of the proposed solution.

Natural diamonds have a story lab-grown diamonds cannot replicate

Despite the challenges, natural diamonds retain characteristics that distinguish them from their laboratory-grown counterparts.

Their geological origins, natural rarity and individual histories form part of their appeal. For many buyers, a natural diamond represents more than its appearance. It can symbolise a milestone, a family connection, a relationship or an object intended to be passed from one generation to the next.

Lab-grown diamonds offer a different proposition. They can provide size and visual appeal at a lower purchase price, but their economics are closely connected to manufacturing capacity, production costs and technological development.

Neither distinction means every natural diamond will retain its value or that every lab-grown diamond is a poor purchase. Diamond prices depend on many variables, and consumers should not assume that either category guarantees future appreciation.

The important point is that the two products have different supply dynamics and different market propositions. Treating them as interchangeable simply because they may look similar overlooks the factors that influence their long-term supply and commercial value.

For the natural diamond industry, the challenge is to explain these differences honestly and convincingly, without relying on outdated assumptions or promising consumers that natural diamonds will always rise in price.

What happens next?

The proposed sale of De Beers is more than a corporate transaction. It is a test of confidence in the future of the natural diamond business.

Potential investors must weigh the company’s renowned position in the industry against its recent financial performance, the cost of mining, changing consumer preferences and the uncertainty surrounding future demand.

The outcome will depend on several interconnected factors:

• Consumer confidence: Whether improving economic conditions encourage households to resume spending on discretionary luxury goods.
• Lab-grown competition: Whether natural diamond producers can establish a clear and compelling distinction between mined and manufactured diamonds.
• Responsible sourcing: Whether the industry can demonstrate credible standards while ensuring that legitimate producing communities are not unfairly stigmatised.
• Supply discipline: Whether production can be aligned with genuine demand without undermining the long-term viability of mining operations.
• Consumer education: Whether buyers receive balanced information about origin, rarity, manufacturing, environmental considerations and the differences between natural and laboratory-grown stones.

The industry may emerge smaller and more focused, with greater emphasis on quality, provenance and genuinely rare natural diamonds. However, a sustained recovery cannot simply be assumed. If consumer preferences have permanently shifted in some market segments, businesses will need to adapt accordingly.

A final thought: good intentions need real-world understanding

The diamond industry is experiencing the combined effects of technological change, economic uncertainty, shifting consumer preferences and decades of debate about ethical sourcing.

Lab-grown diamonds have introduced a powerful new source of competition. Deteriorating economic conditions can weaken discretionary spending. Meanwhile, campaigns against conflict diamonds, although rooted in legitimate concerns, demonstrate why broad public messaging must distinguish between documented abuses and responsible producers.

Behind every price chart and corporate announcement are real people: miners, independent diggers, cutters, polishers, jewellers and families whose livelihoods depend on the trade.

Holding businesses accountable for genuine wrongdoing is necessary. But damaging an entire industry through inaccurate generalisations or poorly considered campaigns can create consequences that extend far beyond their original objectives.

Before demanding that an industry disappear, it is worth asking who will pay the price, what alternatives will replace the lost livelihoods, and whether the intended beneficiaries will ultimately be better off.

The future of natural diamonds will depend not only on corporate ownership and market prices, but also on whether the industry can rebuild consumer confidence, communicate its value and demonstrate that responsible diamond production can support both economic opportunity and ethical standards.

DCLA is the Diamond Certification Laboratory of Australia. Understanding the differences between natural and laboratory-grown diamonds, including their origins and identification, is increasingly important for consumers navigating today’s changing diamond market.

De Beers London launches Vibrations

 

De Beers London presents Vibrations: a High Jewellery universe inspired by the quiet yet enduring power of inland water. The collection celebrates De Beers London’s deep connection to the Earth and its diamond-sourcing countries. Dedicated to life-enriching bodies of water in Botswana, South Africa and Canada, three new sets join Echo, the first set unveiled in January 2026, which was inspired by the Fish River Canyon in Namibia.

“Vibrations embodies our ambition for De Beers London High Jewellery: to create a distinctive expression of High Jewellery, rooted in our connection to the source and brought to life through creativity, innovation and exceptional craftsmanship. From new expressions of diamond cutting to remarkable transformability, Vibrations pushes our artistry forward while celebrating diamonds of extraordinary rarity and character. We are particularly proud to unveil the collection in London, where every De Beers London creation begins, while remaining deeply connected to the landscapes from which our diamonds come.”
Emmanuelle Nodale, CEO De Beers London

Inspired by Inland Waters

As the only House with a direct connection to the source of its diamonds, De Beers London is uniquely placed to celebrate water as Earth’s elemental force. Vibrations captures the emotional resonance of water on the cusp of transformation: a river about to cascade down a precipice, droplets clinging to a verdant riverbank, or freshly crystallised clusters of ice. The abstract designs take inspiration from inland water: perpetual motion, grounded and invigorating.

Vibrations draws parallels between the transformative power of inland water as it gradually shapes the Earth’s landscape, and the billion-year journey of each De Beers diamond. Whether meandering through a lush delta or carving a path through ancient metamorphic rocks, inland water has the capacity to sustain life and alter the landscape. Fluid and dynamic, it has a vital energy that prevails. Likewise, De Beers diamonds are formed by phenomenal forces deep within the Earth, shaped into unique designs that mark what matters, and that will endure.

A Tribute to the Source

De Beers London’s privileged access to rough diamonds means only the most remarkable stones appear in its High Jewellery. Vibrations is defined by diamonds of exceptional rarity and beauty, selected directly from the origin, and transformed into wearable works of art that reflect the unique character of the landscapes where their journey began.

The collection showcases seven diamonds from the Natural Works of Art collection, representing the pinnacle of quality and character, including Fancy Pink and Blue diamonds, among the rarest stones the Earth has ever produced.

De Beers London’s High Jewellery artistry is expressed through the intricate articulation of the pieces, evoking the fluidity and movement of water. Three of the designs are transformable, permitting multiple styling options through technical ingenuity and masterful craftsmanship

GemFair: Diamonds Sculpted by River Currents

Flowing throughout the Vibrations collection are rare alluvial white diamonds, sculpted by powerful forces of water and discovered by independent artisans on ancient riverbeds in Sierra Leone. These diamonds originate from GemFair, a sourcing initiative that supports artisanal miners through traceability, fair prices, ethical practices and sustainable community development.

Appearing for the first time in De Beers London High Jewellery in both rough and polished forms, the artisanally sourced diamonds are individually selected for their character and quality. Rough white diamonds are particularly rare, requiring stones of exceptional purity and brightness.

Traced directly to their origins in Sierra Leone’s tropical river valleys, GemFair diamonds are a tangible link to where the journey begins, connecting De Beers London’s creativity with the Earth’s life-sustaining waters. They ground the collection in origin, celebrating the profound links between diamonds, water and the communities who work with them.

Echo

The Echo suite takes inspiration from the Fish River Canyon in Namibia, where over millions of years the ancient Fish River carved its meandering path through Africa’s largest canyon. In tribute to the river’s steady persistence, five fluid designs recall the rippling patterns that radiate across the surface after a pebble is dropped into water. The creations celebrate the contrast between the brilliance of polished white diamonds and the tactile beauty of rough alluvial diamonds sourced via the GemFair initiative, creating a play of light reminiscent of reflections on rippling water.

A transformable necklace is the masterpiece of the Echo set, featuring a 1.12-carat Fancy Intense Blue diamond from the Natural Works of Art collection, sourced in Namibia. Its colour mirrors the Fish River’s waters, and contrasts with precisely calibrated waves of custom-cut white diamonds that graduate in size, recalling echoes reverberating around the canyon. Expertly articulated to drape across the neck like a river traversing a canyon, the Echo Necklace transforms into six unique jewels, including a necklace, tiara, bracelet and earrings: the first time De Beers London has unveiled a piece of such technical complexity. The set also comprises a ring featuring a 5.21-carat D Flawless diamond, alongside a brooch, bracelet and earrings.

Cascade

The Cascade suite takes its design cues from Tugela Falls in South Africa, the highest waterfall in Africa. A towering force that plunges for more than 980m over sheer basalt cliffs, sending clouds of misty foam rising from its depths, Tugela Falls is a magnificent example of the intensity of Earth’s inland water. The four Cascade creations evoke the dramatic power of falling water through sculptural volumes, billowing silhouettes, swirling streams of diamonds and soft-blue chalcedony, the first time the hardstone has been used in De Beers London High Jewellery.

Chosen for its gentle translucency, luminous glow and aquatic hue, chalcedony is often linked to water. A fluid sautoir of chalcedony beads sourced from Namibia represents Tugela Falls’ steep plunge and the misty foam rising from the cascade. A pair of earrings feature a removable tassel of chalcedony beads. Elsewhere, carved chalcedony sourced from Kenya is shaped into bold curves that mimic the turbulent energy of a plunge pool. The Cascade designs combine round brilliant, pear- shaped, oval-cut, baguettes and princess-cut and pavé-set diamonds in swirling streams like colliding currents.

Shimmer

The Shimmer suite draws inspiration from the Arctic frost flowers that form in Canada’s Ellesmere Island, and the unique pink light observed during long polar transitions. As the sun hovers close to the horizon, ice crystals and cold air bend the light, casting vivid magenta, pink and violet hues across the island’s snow-capped peaks, glaciers and fjords. Rare Fancy Pink diamonds capture the pinkish glow of dawn and dusk across this icy wilderness, while intricate patterns of white diamonds echo the frozen crystalline patterns that form on newly created ice during still, cold weather, supporting microbial life like Arctic coral reefs.

Comprising seven pieces, Shimmer is defined by lace-like motifs that echo the delicate clusters of ice crystals that form frost flowers, while also connecting to the Couture tradition of High Jewellery. Prioritising fluidity and articulation, the geometric designs combine unusual diamond cuts including triangular and navette-shaped diamonds. The suite showcases four rare Fancy Pink diamonds, including a pair of harmonious pink diamonds from the Argyle mine. The Shimmer Masterpiece Necklace is set with a 2.07-carat Fancy Intense Pink diamond unearthed in Botswana, and a Shimmer ring features a 0.81 carat Fancy Intense Pinkish Purple diamond chosen for its remarkable saturation and clarity.

Undulation

The Undulation suite pays tribute to the Okavango Delta in Botswana, the Earth’s largest inland delta and home to some of the world’s most protected species. A vast oasis within the Kalahari Desert, the Okavango Delta boasts a unique wetland habitat within which a rich and diverse ecosystem can thrive. De Beers is deeply connected to Botswana, and particularly to the Okavango Delta, whose source waters it is committed to protecting through Okavango Eternal, a multi-year conservation project in partnership with the National Geographic Society.

The Undulation Suite comprises six fluidly articulated designs whose undulating curves mimic the path of the Okavango River as it traces the contours of the Delta’s lush vegetation. The sinuous shapes are trimmed by rough green diamonds, among the rarest diamonds ever unearthed.

For every 10,000 Fancy coloured diamonds discovered, just 10 display a natural green shade, created over millions of years as a result of natural radiation deep within the Earth’s crust. Every rough diamond was chosen for its unique character, creating a rich palette that reflects the diversity of shades in the Delta’s vegetation. Together, they are a tactile connection to the Earth and testament to De Beers London’s ability to source singularly rare diamonds whose scarcity is equalled by their beauty.

Introducing Cabochon-Cut Diamonds

The Undulation designs are finished with De Beers London’s cabochon-cut diamonds, introduced for the first time in High Jewellery. With softly rounded profiles reminiscent of water droplets resting along the river’s edge, the cabochon cut softens the way light is reflected, creating a deep, luminous glow rather than sharp brilliance. The cabochon cut has long been associated with coloured gemstones; applying the same shape to diamonds presented a distinct challenge due to their exceptional hardness.

A specialised cutting technique was developed over five years, involving precision technology to achieve a smooth, domed form while preserving the character of each diamond. With no facets to conceal inclusions, the cabochon cut places the diamond’s character fully on display, requiring rough diamonds of exceptional quality and purity alongside cutting-edge lapidary skills.

Such exacting requirements mean that less than 0.5% of diamonds meet the necessary colour and clarity criteria, and fewer still possess the optimal crystal structure, symmetry and quality. De Beers London’s diamond experts identified the rare stones with the potential to take on this distinctive form, before skilled diamond cutters shaped them into a distinct expression of the source waters that have nourished the Earth for millennia.

Source: debeersgroup

The Diamond: Nature’s Most Remarkable Gem

Diamonds are among the most fascinating natural materials on Earth. Known for their beauty, rarity, and incredible durability, diamonds have captured human imagination for thousands of years. But beyond their brilliance as gemstones, diamonds are remarkable scientific creations with unique physical properties that make them valuable in jewellery, technology, and industry.

A diamond is a natural crystal made entirely from carbon. What makes it extraordinary is not the element itself, but the way the carbon atoms are arranged. These atoms form a highly organised crystal structure known as the diamond cubic structure, creating one of the strongest natural materials known to mankind.

Pure diamonds are colourless, transparent, and extremely resistant to chemical reactions. They are tasteless, odourless, and do not dissolve in water. Their exceptional hardness and ability to conduct heat have made diamonds valuable not only as gemstones but also in advanced industrial applications such as cutting tools, polishing equipment, and high precision technology.

The Unique Structure of a Diamond

The secret behind a diamond’s strength lies within its atomic structure.

Each carbon atom in a diamond is connected to four other carbon atoms through extremely strong bonds. This creates a rigid three dimensional structure that gives diamonds their famous hardness.

By comparison, graphite, another form of carbon, has a completely different structure. Graphite atoms are arranged in layers that can easily slide over one another, making graphite soft and useful as pencil lead.

Although diamond and graphite are both made from carbon, their different atomic arrangements create completely different materials.

Diamonds are considered a “metastable” form of carbon. Under normal conditions, graphite is technically the more stable form, but the transformation from diamond to graphite happens so slowly that it would take millions or even billions of years.

How Diamonds Are Formed

Natural diamonds are ancient treasures created deep beneath the Earth’s surface.

Most natural diamonds formed between 1 billion and 3.5 billion years ago, long before humans existed. They developed under extreme pressure and temperatures deep within the Earth’s mantle, generally between 150 and 250 kilometres below the surface.

Under these conditions, carbon containing fluids moved through rocks and, over enormous periods of time, formed diamond crystals.

Volcanic eruptions later transported these diamonds closer to the surface. They became trapped in special volcanic rocks known as kimberlites and lamproites, where they could eventually be discovered and mined.

Some diamonds have come from even greater depths, reaching hundreds of kilometres below the Earth’s surface.

The Origin and History of Diamonds

The word diamond comes from the ancient Greek word “adamas”, meaning unbreakable, untamed, or unconquerable. This reflects the early belief that diamonds represented strength and permanence.

Diamonds are believed to have first been discovered and mined in India thousands of years ago, with early sources coming from river deposits. Ancient cultures valued diamonds not only for their beauty but also for their symbolic and spiritual importance.

Over time, diamonds became associated with wealth, power, and status. Their popularity increased dramatically from the 19th century as new diamond deposits were discovered, cutting and polishing techniques improved, and the global jewellery market expanded.

The Discovery That Diamonds Are Carbon

For centuries, the true nature of diamonds was unknown.

In the 1700s, French scientist Antoine Lavoisier conducted experiments using sunlight focused onto diamonds in an oxygen environment. He discovered that burning diamonds produced carbon dioxide, proving that diamonds were made of carbon.

Later, English chemist Smithson Tennant expanded on this work and demonstrated that diamonds and graphite were chemically the same element arranged differently.

This discovery changed the understanding of diamonds forever and showed that one element could exist in completely different forms.

Why Diamonds Have Different Colours

Although many people imagine diamonds as colourless, diamonds naturally occur in a wide range of colours.

A perfectly pure diamond has no colour, but natural diamonds often contain tiny amounts of other elements or changes in their crystal structure. These small differences create unique colours.

Nitrogen is the most common impurity and can create yellow and brown shades.

Boron can produce blue diamonds.

Radiation exposure can create green diamonds.

Structural changes within the crystal can produce pink, red, and other rare colours.

The rarest coloured diamonds, especially vivid pink, red, and blue diamonds, can become some of the most valuable gemstones ever sold.

Diamond Clarity and Natural Characteristics

No two natural diamonds are exactly alike.

During formation deep inside the Earth, diamonds can capture tiny internal features known as inclusions. These may include minerals, growth patterns, or small structural changes.

Clarity grading evaluates these characteristics under magnification and helps determine a diamond’s rarity and value.

The fewer visible inclusions a diamond has, the rarer it generally becomes.

The Importance of the 4Cs

The quality and value of a diamond are traditionally assessed using the famous 4Cs:

Colour

Colour measures how close a diamond is to being completely colourless. Colourless diamonds are highly valued, while naturally coloured diamonds are graded differently due to their rarity.

Clarity

Clarity evaluates internal inclusions and external features. These natural characteristics help identify the uniqueness of each diamond.

Cut

Cut is one of the most important factors affecting a diamond’s beauty. A well cut diamond allows light to enter and reflect back through the stone, creating brilliance, fire, and sparkle.

Carat

Carat refers to the weight of a diamond. Larger diamonds are generally rarer, but size alone does not determine value. Quality, rarity, and overall characteristics are equally important.

The Strength and Hardness of Diamonds

Diamonds are the hardest natural material on the Mohs hardness scale.

This hardness allows diamonds to maintain their polished surfaces for long periods, making them ideal for jewellery that is worn every day, such as engagement rings.

However, hardness does not mean a diamond cannot be damaged. Diamonds can still chip or break if struck in certain directions because they have natural planes within their crystal structure.

Diamonds Beyond Jewellery

While diamonds are famous as gemstones, their properties make them useful in many industries.

Their extreme hardness makes them ideal for cutting and polishing materials.

Their ability to transfer heat efficiently allows them to be used in advanced technology.

Their electrical and optical properties are also being explored for scientific and electronic applications.

Natural Diamonds and Laboratory Grown Diamonds

Modern technology has made it possible to create diamonds in laboratories.

Laboratory grown diamonds are produced using methods that recreate diamond forming conditions. The two main methods are High Pressure High Temperature (HPHT) and Chemical Vapour Deposition (CVD).

These diamonds have the same chemical composition as natural diamonds, but specialised equipment can identify differences in their growth patterns and characteristics.

Gem laboratories use advanced testing techniques to distinguish between natural and laboratory grown diamonds.

Diamond Certification and Trust

Because every diamond is unique, professional grading and certification play an important role in the diamond industry.

Independent laboratories examine diamonds using scientific methods to assess their characteristics, confirm authenticity, and provide accurate grading information.

At DCLA, diamond science, advanced technology, and expert knowledge are combined to provide confidence and transparency for consumers and the jewellery industry.

The Enduring Legacy of Diamonds

A diamond represents billions of years of natural history, transformed through expert cutting and craftsmanship into one of the world’s most admired gemstones.

From deep beneath the Earth’s surface to the jewellery worn around the world, diamonds continue to fascinate because they combine science, beauty, rarity, and history in a single extraordinary crystal.

Source: DCLA

Natural Diamonds at a Turning Point: De Beers Sale Signals a New Era for the Global Diamond Industry

 

The natural diamond industry is entering a defining period of transformation as one of the world’s most influential diamond companies, De Beers, moves closer to a change in ownership while the broader market shows early signs of recovery after several challenging years.

De Beers CEO Al Cook has indicated that a sale of the diamond giant could be completed within weeks rather than months, bringing to a close a two year process of negotiations. Speaking at the Reuters NEXT Europe conference in London, Cook said discussions have reached an advanced stage and that the company is closer to a sale than ever before.

Anglo American placed its 85% stake in De Beers on the market in May 2024 as part of a wider restructuring strategy following a prolonged downturn in diamond prices, weaker consumer demand, and the rapid growth of lab grown diamonds.

De Beers remains one of the most important names in the global diamond industry, with operations spanning Botswana, Namibia, Angola, South Africa, and Canada. The company has played a central role in shaping the natural diamond market for more than a century.

The potential buyers include diamond producing nations and strategic investors. Botswana, which already owns a 15% stake in De Beers, along with Namibia and Angola, have shown interest through various partnerships. These countries recognise the importance of diamonds to their economies and are looking to secure a stronger role in the future direction of the industry.

Cook highlighted that the current interest comes from groups with deep diamond knowledge, creating the opportunity for a strong public private partnership that could support the next chapter of De Beers.

Sources indicate that the number of potential buyers has narrowed from six groups in 2025 to two remaining consortia. These include diamond producing governments, former De Beers CEO Gareth Penny, investment groups, and international investors.

Natural Diamond Market Recovery Begins to Take Shape

While the industry has faced significant pressure since 2021, the market is showing signs of reaching a turning point.

The downturn was driven by several major structural changes. The rapid expansion of lab grown diamonds transformed consumer expectations, with improvements in CVD and HPHT technology allowing synthetic diamonds to become widely available at significantly lower prices.

This created pressure across the natural diamond pipeline as consumers became more focused on size and appearance rather than rarity and long term value.

At the same time, weaker luxury demand, particularly in China, reduced one of the industry’s most important growth markets. The slowdown affected miners, manufacturers, retailers, and diamond producing nations.

Botswana, the world’s largest diamond producer by value, experienced economic pressure as declining diamond revenues impacted national growth. The challenges highlighted the importance of diamonds not only as a luxury product but as a critical economic resource for producing countries.

A New Diamond Market Structure

The current recovery is unlikely to mirror previous diamond cycles. The industry is entering a new era where scarcity, provenance, quality, and consumer trust will become increasingly important.

Natural diamonds and lab grown diamonds are moving into different market positions. Lab grown diamonds compete primarily on affordability, while natural diamonds continue to represent rarity, geological history, and emotional value.

The potential sale of De Beers could become a major milestone in reshaping the future of the natural diamond sector. New ownership, combined with improving market fundamentals and a renewed focus on the uniqueness of natural diamonds, may help create the foundation for the next phase of the industry.

For the global diamond market, 2026 could represent not just a recovery year, but the beginning of a new chapter.The natural diamond industry is entering a defining period of transformation as one of the world’s most influential diamond companies, De Beers, moves closer to a change in ownership while the broader market shows early signs of recovery after several challenging years.

De Beers CEO Al Cook has indicated that a sale of the diamond giant could be completed within weeks rather than months, bringing to a close a two year process of negotiations. Speaking at the Reuters NEXT Europe conference in London, Cook said discussions have reached an advanced stage and that the company is closer to a sale than ever before.

Anglo American placed its 85% stake in De Beers on the market in May 2024 as part of a wider restructuring strategy following a prolonged downturn in diamond prices, weaker consumer demand, and the rapid growth of lab grown diamonds.

De Beers remains one of the most important names in the global diamond industry, with operations spanning Botswana, Namibia, Angola, South Africa, and Canada. The company has played a central role in shaping the natural diamond market for more than a century.

The potential buyers include diamond producing nations and strategic investors. Botswana, which already owns a 15% stake in De Beers, along with Namibia and Angola, have shown interest through various partnerships. These countries recognise the importance of diamonds to their economies and are looking to secure a stronger role in the future direction of the industry.

Cook highlighted that the current interest comes from groups with deep diamond knowledge, creating the opportunity for a strong public private partnership that could support the next chapter of De Beers.

Sources indicate that the number of potential buyers has narrowed from six groups in 2025 to two remaining consortia. These include diamond producing governments, former De Beers CEO Gareth Penny, investment groups, and international investors.

Natural Diamond Market Recovery Begins to Take Shape

While the industry has faced significant pressure since 2021, the market is showing signs of reaching a turning point.

The downturn was driven by several major structural changes. The rapid expansion of lab grown diamonds transformed consumer expectations, with improvements in CVD and HPHT technology allowing synthetic diamonds to become widely available at significantly lower prices.

This created pressure across the natural diamond pipeline as consumers became more focused on size and appearance rather than rarity and long term value.

At the same time, weaker luxury demand, particularly in China, reduced one of the industry’s most important growth markets. The slowdown affected miners, manufacturers, retailers, and diamond producing nations.

Botswana, the world’s largest diamond producer by value, experienced economic pressure as declining diamond revenues impacted national growth. The challenges highlighted the importance of diamonds not only as a luxury product but as a critical economic resource for producing countries.

A New Diamond Market Structure

The current recovery is unlikely to mirror previous diamond cycles. The industry is entering a new era where scarcity, provenance, quality, and consumer trust will become increasingly important.

Natural diamonds and lab grown diamonds are moving into different market positions. Lab grown diamonds compete primarily on affordability, while natural diamonds continue to represent rarity, geological history, and emotional value.

The potential sale of De Beers could become a major milestone in reshaping the future of the natural diamond sector. New ownership, combined with improving market fundamentals and a renewed focus on the uniqueness of natural diamonds, may help create the foundation for the next phase of the industry.

For the global diamond market, 2026 could represent not just a recovery year, but the beginning of a new chapter.

Source: DCLA