News Summary
The diamond market in Beverly Hills is experiencing a transition as lab-grown diamonds gain popularity, leading to a decline in traditional natural diamond prices. A survey reveals that 52% of American newlyweds selected lab-grown diamonds in 2023, compared to just 12% in 2019. Retailers are adapting to this shift, offering both options, while emphasizing the unique value of natural diamonds. The landscape is changing as younger consumers prioritize affordability, driving a notable trend towards lab-grown alternatives as the average price of diamond engagement rings drops significantly.
Beverly Hills is witnessing a significant shift in the diamond market as the popularity of lab-grown diamonds surges, causing prices for traditional natural diamonds to tumble. Once seen as inferior, these lab-grown alternatives are now nearly indistinguishable from their natural counterparts, contributing to a growing trend among consumers prioritizing affordability.
According to a recent survey, 52% of American newlyweds chose lab-grown diamonds in 2023, a substantial increase from just 12% in 2019. This evolving preference is reflected in the decline of the mined diamond market, where prices for natural diamonds have dropped by approximately 26% since 2022. In a similar vein, De Beers, a titan in the natural diamond industry, reported a 23% revenue decrease in 2024, citing a decline in demand for mined diamonds.
Local retailers in Beverly Hills are adapting to this changing landscape by offering a mix of both lab-grown and natural diamonds. For example, jewelers like Martin Katz believe that the city will continue to retain its status as a hub for natural diamonds, largely due to its clientele’s appreciation for the rarity of these stones. Katz notes that natural diamonds are unique treasures that tend to appreciate in value over time, which is a stark contrast to lab-grown diamonds, which are manufactured in weeks compared to the billions of years it takes for natural diamonds to form in the Earth.
The market for lab-grown diamonds has rapidly expanded since their introduction, with various retailers emerging to meet rising consumer demand. Inexpensively priced, lab-grown diamonds can be sold for 80% to 90% less than natural diamonds, with prices continuing to decline. For instance, retailers such as William Logian’s RobinHood Diamonds offer manufactured stones starting as low as $119 for a 0.5-carat stone.
Consumers appear to be increasingly motivated by price over potential future value, illustrated by research reporting that 45% of engagement rings sold in April 2024 featured lab-grown diamonds. However, retailers are warning customers about the volatility of lab-grown diamond prices and the lack of trade-in value associated with these stones.
Data also indicates that the average price of diamond engagement rings in the U.S. has dropped to $2,735, significantly down from historical averages exceeding $3,200. This price shift is likely causing retailers to rethink how they communicate the value of diamonds as a symbol of commitment, particularly as the popularity of inexpensive lab-grown stones grows.
In response to these market dynamics, many jewelers are adjusting their strategies, yielding a focus on larger sales of lab-grown diamonds while still maintaining a selection of natural ones. Concurrently, vintage and antique diamonds are gaining popularity among consumers, appealing to those who value sustainability and personal history, especially younger, ethically conscious shoppers from Generation Z.
In a bid to retain customer interest in natural diamonds, the Natural Diamond Council is ramping up its marketing efforts, emphasizing the importance of origin and rarity. Retailers who effectively convey the intrinsic value and story behind natural diamonds may play a pivotal role in swaying consumer preferences back toward these traditional gems.
As some retailers shift their focus in light of the market changes, the emphasis on higher-end designs is thought to help maintain the status of natural diamonds as luxury items. The potential sale of De Beers by its parent company, Anglo American, could further impact the landscape of the diamond industry in the near future, making it essential for stakeholders to strategize accordingly amid this evolving marketplace.
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Additional Resources
- Beverly Hills Courier
- Wikipedia: Lab-grown Diamonds
- InStore Magazine
- Google Search: Lab-grown Diamonds
- Beverly Hills Courier
- Google Scholar: Lab-grown Diamonds
- National Jeweler
- Encyclopedia Britannica: Diamond Market
- Natural Diamonds
- Google News: Diamond Engagement Rings
