Natural‑Diamond Prices Plunge To Record Lows Amid Surging Global Lab‑Grown Diamond Trade

BEIJING, Aug.12 - The DIAMINDX, an index compiled by diamond‑investment platform Diamond Standard to track prices of investment‑grade loose natural diamonds, tumbled to an all‑time low in early August.

 

After hovering within the USD 2,600‑2,700 range for nearly one month, the index suffered a sharp early‑August drop and stood at USD 2,490 as of 10:00 AM Eastern Time in the United States.

 

Reports note natural‑diamond prices have retained partial resilience over the past four years, with the inflation‑adjusted DIAMINDX falling by roughly 50 percent. Such resilience largely stems from deliberate supply‑side contraction within the natural‑diamond sector. To prop up market prices, the industry has cut its output by approximately 20 percent in four years, sliding from 120 million carats down to 98 million carats. Analysts warn prices could slump further once production bounces back to former levels.

 

The well‑known slogan "A diamond is forever" once fueled robust consumer demand for natural diamonds. In recent years, however, sustained price declines have reshaped public perceptions. Lab‑grown diamond technology undermines the traditional scarcity narrative of natural gems, turning natural diamonds into more ordinary commodities. Consumer migration toward lab‑grown alternatives has dragged down transaction volumes of natural diamonds. Sustained price pressure from lab‑grown diamonds has triggered simultaneous shrinkage in both trading volume and total transaction value across the natural‑diamond market.

 

Official customs statistics cited by Xinhua show China's exports of manufactured lab‑grown diamonds have skyrocketed. In the first half of this year, general‑trade exports of relevant products declared via the Shanghai Diamond Exchange hit 1.41 billion yuan, marking a 65.3‑percent year‑on‑year increase

 

Founded in 2000, the Shanghai Diamond Exchange functions as China's national‑level specialized marketplace and the country's sole platform for diamond import and export businesses. "Historically, the exchange mainly handled imports of natural diamonds," said Lin Qiang, President of the Shanghai Diamond Exchange. "Over the past five years, China's lab‑grown‑diamond exports have risen dramatically. Our country accounts for over 60 percent of global lab‑grown‑diamond output. With booming two‑way import‑and‑export activities, Shanghai is building an international‑trade arena where natural and lab‑grown diamonds can co‑exist and thrive."

 

According to Chen Wang, Sales Director at Ningbo Jingzuan, natural diamonds have long targeted wedding‑and‑romance consumers with relatively high spending thresholds. In some European and North‑American markets, rising public awareness and acceptance have pushed jewelry made from lab‑grown diamonds into everyday‑wear and gift‑giving scenarios.

 

China's status as a leading global lab‑grown‑diamond producer keeps strengthening, bringing fresh development opportunities for traditional diamond‑cutting and polishing industries in countries such as India.