Natural Diamonds Face a Defining Period of Change and Opportunity

 

The natural diamond industry is entering a crucial period of transformation, with market leaders highlighting the key forces that will shape demand, supply and consumer confidence over the next five years.

According to analysis from De Beers, rebuilding demand for natural diamonds will depend on several important industry priorities, including stronger marketing, clearer differentiation from lab grown diamonds and a more balanced supply environment.

Marketing Remains Critical for Natural Diamond Demand

De Beers believes effective marketing will play a central role in restoring consumer desire for natural diamonds. After a period of changing consumer behaviour and economic uncertainty, the industry must continue to communicate the unique emotional value, rarity and enduring legacy of natural diamonds.

Building a stronger connection with younger consumers will be essential to ensuring natural diamonds maintain their position as symbols of love, commitment and achievement.

Lab Grown Diamond Pricing Faces Growing Pressure

The rapid growth of synthetic lab grown diamonds has created a new competitive landscape for the diamond industry.

However, current retail margins on lab grown diamonds are expected to face increasing pressure as competition expands and production continues to rise. As prices decline, the industry believes consumers will increasingly focus on understanding the differences between natural diamonds and laboratory created alternatives.

Differentiation Becomes Key to Consumer Confidence

Clear education and transparency will be vital for the future of the diamond market.

Natural diamonds are formed over billions of years beneath the earth’s surface, while lab grown diamonds are created through technological processes in controlled environments. Ensuring consumers understand these differences will be important in maintaining confidence and value perception.

Independent grading and certification from recognised laboratories such as DCLA will continue to play an important role in providing consumers with trust and assurance when purchasing natural diamonds.

Declining Rough Diamond Supply Could Support Long Term Market Balance

Another major factor shaping the future of natural diamonds is declining global rough diamond production.

With several major mines reaching maturity and fewer large discoveries entering production, supply is expected to reduce over the medium to long term. A tighter supply environment could help support a healthier balance between availability and demand.

Russia Introduces New Rough Diamond Export Duty

Russia is set to introduce an 8% export duty on rough diamonds weighing 0.45 carats or more from September 1.

The new measure, announced through a government decree, adds another layer of complexity to the global rough diamond supply chain. Russia remains one of the world’s largest diamond producers, meaning changes to its export policies can influence international market dynamics.

AWDC Launches First Sale of Traceable Artisanal Diamonds from Congo

The Antwerp World Diamond Centre has completed its first sale of artisanally mined rough diamonds from the Democratic Republic of Congo through the OrigemA programme.

Established in 2022 as a partnership between Belgium and the DRC, OrigemA aims to connect small scale Congolese miners with international markets by providing fully traceable artisanal diamonds.

The programme is designed to improve market access for artisanal miners while ensuring they receive fair value for their production. The DRC accounts for a significant share of global artisanal diamond output, making responsible sourcing initiatives increasingly important for the future of the industry.

Petra Diamonds Faces Ongoing Industry Pressure

Petra Diamonds continues to experience the challenges affecting many mid tier diamond producers as the industry works through a prolonged period of market disruption.

Lower rough diamond prices, weaker luxury demand in key markets and increased competition from lab grown diamonds have created financial pressure across the sector.

The company’s restructuring challenges highlight the broader issues facing producers with concentrated operations and single commodity exposure. The coming years are expected to test the resilience of diamond miners as the industry adjusts to changing consumer demand and evolving market conditions.

The Future of Natural Diamonds

The next five years will be a defining period for the natural diamond industry.

Success will depend on strengthening consumer confidence, improving education, supporting responsible sourcing and reinforcing the unique value of natural diamonds.

While the market faces significant challenges, declining supply, stronger differentiation and renewed storytelling around natural diamonds could create the foundation for a more balanced and sustainable future.

Source: DCLA

US Consumers Continue to Prefer Natural Diamonds, De Beers Study Reveals

 

New research from De Beers highlights continued strong consumer demand for natural diamonds in the United States, with natural diamond jewellery remaining the most desired choice among luxury jewellery buyers.

The latest US Diamond Acquisition Study, based on insights from 18,500 women across the US, reveals that consumers continue to view natural diamonds as a symbol of value, celebration and personal achievement.

The study found that natural diamonds rank as the most desirable luxury jewellery gift, with 11% of women choosing natural diamond jewellery as their preferred option. This places natural diamonds ahead of lab-grown diamonds at 8%, other gemstones at 5%, and plain gold jewellery at 4%.

Average spending on diamond jewellery has also increased significantly. The average purchase price for natural diamond jewellery reached $4,063 in 2025, up from $3,242 in 2023, driven by consumers choosing larger diamond sizes, with the average total carat weight increasing from 1.65 carats to 1.86 carats.

One of the key findings is the growing influence of Generation Z, which has become the second largest generation of diamond buyers. Gen Z now represents 23% of natural diamond demand value despite making up only 18% of the population.

Younger consumers are also spending more on natural diamonds, with Gen Z buyers spending an average of $4,080 per purchase compared with $2,250 for Baby Boomers.

While engagements and weddings remain important drivers of diamond demand, the way consumers purchase diamonds is changing. Three quarters of US diamond demand now comes from non-bridal occasions, including birthdays, career milestones, promotions, personal achievements and self-purchase.

De Beers found that Gen Z buyers are particularly motivated by self-expression, viewing diamonds as a reflection of personal identity. They also rely heavily on social media when researching jewellery purchases.

Diana Mitkov from De Beers’ Diamond Demand Insights & Analytics team said the findings show that consumers continue to aspire to own natural diamonds, while the reasons behind purchases are evolving.

“Traditional milestones such as engagements are no longer the only occasions where consumers celebrate with diamonds. Today’s buyers are looking for meaningful pieces that reflect their own stories and achievements.”

The report also highlighted positive trends among independent US jewellers. Retail data from 950 stores showed natural diamond sales increased by 4% year-on-year in the fourth quarter of 2025 and 9% in the first quarter of 2026.

Coloured and lower-colour natural diamonds, promoted through De Beers’ “Desert Diamonds” campaign, performed particularly well, with sales growth of 15% and 19% respectively.

While lab-grown diamond jewellery continues to grow in volume, falling prices have reduced its overall value share. In 2025, natural diamonds represented approximately 85% of independent jewellers’ diamond sales value compared with 15% for lab-grown diamonds.

The study also found that sales of larger lab-grown diamonds decline once stones reach 3 carats or more, suggesting consumers may question the value and appeal of very large synthetic diamonds.

De Beers believes the future of natural diamonds will be supported by changing supply and demand dynamics. Declining global natural diamond production is expected to help create a healthier supply balance, while improving demand conditions in key markets are providing renewed confidence for the industry.

The findings reinforce the ongoing appeal of natural diamonds as rare, unique creations of nature, with consumers continuing to value their emotional significance, individuality and long-term meaning.

Source: DCLA

What Is a Diamond? Natural vs Laboratory-Grown – Structure, Science and Pricing

 

A diamond is a solid form of the element carbon in which the atoms are arranged in a crystal structure known as diamond cubic. In this structure, each carbon atom is bonded to four others in a rigid tetrahedral arrangement (sp³ bonding), forming one of the strongest natural materials known.

In its pure form, diamond is:

• Colourless
• Odourless and tasteless
• Extremely hard
• A poor conductor of electricity
• Insoluble in water
• Chemically inert under most conditions

Although graphite is the stable form of carbon at room temperature and pressure, diamond is metastable and converts to graphite at an almost negligible rate over geological time.

---

The Physical and Optical Properties of Diamond

Diamond possesses extraordinary properties:

• Highest hardness of any natural material (Mohs 10)
• Highest thermal conductivity of any natural substance
• Extremely high refractive index (~2.42)
• High optical dispersion, creating the “fire” in gemstones
• Very low thermal expansion
• Exceptional chemical resistance
• High electrical resistance

Because the crystal lattice is extremely rigid, only very small amounts of impurities can enter the structure. These trace elements or structural defects create colour:

• Nitrogen → Yellow
• Boron → Blue
• Crystal defects → Brown
• Radiation exposure → Green
• Plastic deformation → Pink, red, purple

---

How Natural Diamonds Form

Most natural diamonds are between 1 and 3.5 billion years old.

They formed deep within the Earth’s mantle at depths of 150–250 km, and occasionally as deep as 800 km, under extreme pressure and temperature. Carbon-bearing fluids replaced minerals with crystallised carbon.

They were later transported rapidly to the surface via volcanic eruptions and deposited in igneous rocks known as:

• Kimberlite
• Lamproite

Historically, diamonds were first mined in ancient India along the Penner, Krishna and Godavari rivers, and have been known for at least 3,000 years.

The word diamond comes from the Ancient Greek “adámas”, meaning unbreakable or invincible.

---

The Discovery That Diamond Is Carbon

In 1772, Antoine Lavoisier demonstrated that when a diamond burns in oxygen, it produces carbon dioxide.

Later, in 1797, Smithson Tennant proved that diamond and graphite release the same gas when burned, confirming that both are forms (allotropes) of pure carbon.

---

Laboratory-Grown Diamonds

Synthetic diamonds are created using two main methods:

1. HPHT (High Pressure High Temperature)

Replicates natural mantle conditions using pressures above 5 GPa and temperatures above 1,300°C.

2. CVD (Chemical Vapour Deposition)

Carbon-rich gases are broken down in a plasma chamber, allowing carbon atoms to deposit layer by layer onto a diamond seed crystal.

Chemically, physically and optically, laboratory-grown diamonds are the same as natural diamonds. Both are pure carbon in the diamond cubic structure.

They are distinguished using advanced gemmological techniques such as:

• Spectroscopy
• Growth pattern analysis
• Inclusion study
• Thermal conductivity testing

---

Hardness, Toughness and Durability

Diamond is the hardest known natural material, but it is not indestructible.

• It has excellent resistance to scratching.
• It has cleavage planes, meaning it can split if struck in certain directions.
• Toughness (resistance to breakage) is good for a ceramic but lower than many metals.

Its durability makes it ideal for engagement rings and daily wear jewellery.

---

Natural vs Laboratory-Grown Diamonds: Pricing Comparison (2026 Market Overview)

Although structurally identical, pricing between natural and lab-grown diamonds differs dramatically due to rarity and supply dynamics.

Natural Diamonds

• Finite geological supply
• Mining costs, exploration, labour and environmental compliance
• Graded and traded based on rarity
• Price stability linked to long-term scarcity

In today’s market, a high-quality 1.00 carat natural diamond (G colour, VS clarity) typically trades wholesale in the range of USD $4,500–$7,000, depending on cut quality and certification.

Premium stones (D–F colour, IF–VVS clarity) command significantly higher prices.

Laboratory-Grown Diamonds

• Mass-producible in controlled environments
• Increasing global production capacity
• Rapid technological efficiency gains
• No geological rarity

The same 1.00 carat equivalent (G colour, VS clarity) laboratory-grown diamond now trades between USD $300–$600.

Retail prices decline as production scales.

---

Why the Price Gap Exists

The key difference is not chemistry — it is rarity and supply economics.

Natural diamonds:

• Formed over billions of years
• Limited global deposits
• High capital-intensive extraction

Laboratory diamonds:

• Manufactured within weeks
• Scalable production
• Compete with industrial cost structures

As production increases, laboratory diamond pricing behaves more like a manufactured product than a rare natural asset.

---

Investment and Resale Considerations

Natural diamonds retain secondary market value more effectively due to:

• Limited supply
• Established global trading networks
• Long-term historical demand

Laboratory-grown diamonds currently have minimal resale value in secondary markets due to continuous price decline and expanding supply.

---

A diamond, whether natural or laboratory-grown, is one of nature’s most extraordinary materials — a crystal of pure carbon arranged in a tetrahedral lattice that produces unmatched hardness, brilliance and thermal conductivity.

However, while they are chemically identical, their market dynamics are fundamentally different.

Natural diamonds derive value from geological rarity and billions of years of formation.

Laboratory-grown diamonds derive value from technology, efficiency and accessibility.

Understanding this distinction is essential for anyone buying, selling or investing in diamonds today.

Source: DCLA

Natural Diamond Engagement Ring Prices Surge in the US – What Australian Buyers Need to Know

 

The average price of a natural diamond engagement ring in the United States rose by 9 per cent to US$7,346 in 2025, according to the Natural Diamond Council (NDC). In its latest report, Natural Diamond Trends: A 2025 Overview, the NDC notes that the average centre stone size increased by 5 per cent to 1.16 carats, reflecting continued consumer preference for larger, statement diamonds.

Round brilliant diamonds maintained their dominant position, accounting for 62 per cent of all engagement ring sales, unchanged from the previous year. Oval cuts eased slightly to 14 per cent, down from 16 per cent, while long fancy shapes such as marquise and cushion continued to gain traction. SI1 clarity was the most commonly purchased grade, although the report did not specify the leading colour category.

Diamond engagement rings — including complete rings, loose centre stones and bridal semi-mounts — represented 38 per cent of all natural diamond jewellery sales by volume in 2025. The data, compiled by Tenoris from more than four million anonymised point-of-sale transactions across 2,500 US specialty retailers, highlights a market driven by quality upgrades and larger stones. Across the broader natural diamond jewellery category, the 2.00–2.24 carat and 1.50–1.59 carat segments recorded the fastest unit sales growth, contributing to a 10 per cent rise in average jewellery prices. Seasonal gifting periods — notably November and December, together with Valentine’s Day and Mother’s Day — accounted for 46 per cent of annual diamond jewellery volume.

How does this compare with Australia?

In Australia, the average spend on a natural diamond engagement ring is generally lower than in the US, typically ranging between AUD $5,000 and AUD $8,000 depending on city, retailer positioning and diamond specifications. While the Australian market also shows strong demand for round brilliant cuts, there has been a noticeable shift toward oval and elongated fancy shapes, particularly among younger buyers seeking distinctive designs.

From a grading perspective, Australian consumers — particularly those purchasing through independent jewellers and specialist laboratories such as Diamond Certification Laboratory of Australia (DCLA) — tend to place strong emphasis on accurate certification, cut quality and value retention. Carat weights commonly centre around the 1.00 to 1.20 carat range, closely mirroring US trends, although there remains a solid market for well-cut diamonds just under key weight thresholds (e.g. 0.90–0.99 carats) where value optimisation is a priority.

Overall, the US data confirms a global pattern: consumers are gravitating toward larger stones, higher specifications and enduring classic shapes. In Australia, while total average spend remains slightly below US levels when adjusted for currency, the qualitative trends — preference for natural diamonds, round brilliants and milestone gifting seasons — remain closely aligned with international markets.

Source: DCLA