Are Lab-Grown Diamonds Devaluing Natural Diamonds?
It's one of the biggest questions in the jewellery world right now: as lab-grown diamonds take over more of the market, are they pulling down the value of natural diamonds? The short answer is yes, in part — but it isn't the whole story, and it isn't affecting every natural diamond in the same way.
What's Happened to Natural Diamond Prices?
Natural diamond prices have been falling for a few years now, and 2026 has been especially tough. Anglo American, the owner of De Beers, reported that in the first half of 2026:
Part of that headline drop came from De Beers selling a higher share of lower-value stones, but the direction is clear. Miners have been cutting production and pausing operations to try to match weaker demand, and prices have been reported at their lowest levels in decades.
How Lab-Grown Plays a Part
Lab-grown has quickly become the majority choice for engagement rings in the US — 61% of couples married in 2025 chose a lab-grown centre stone, according to The Knot. Every one of those is a ring that, a few years ago, would most likely have had a natural diamond in it.
Even the mining giants now say this openly. Anglo American's chief executive, Duncan Wanblad, said:
"Synthetic lab-grown diamonds also continued to affect demand for lower-value natural diamonds, adding pressure in more price-sensitive categories."
It's Not the Only Factor
It would be too simple to put everything down to lab-grown. Several things have hit natural diamond prices at the same time:
- Weaker demand in China, once one of the biggest growth markets for diamonds.
- Global economic and political uncertainty, which makes people more careful with big luxury purchases.
- Too much stock in the system — after the post-pandemic boom, cutters and dealers were left holding more diamonds than they could sell.
Lab-grown has made each of these worse by giving shoppers an easy, more affordable alternative, but it's one force among several.
Not All Natural Diamonds Are Affected Equally
This is the part most headlines miss. The pressure has landed hardest on smaller, lower-grade natural diamonds — exactly the stones that compete most directly with lab-grown on price.
Larger, higher-quality natural diamonds have held up much better. Anglo American noted stronger pricing for its higher-value stones even while its overall average fell. Genuinely rare stones remain rare, and there's still strong demand for them.
💡 If you're choosing natural, quality matters more than ever. A well-cut, well-graded stone is the kind of diamond the market continues to value.
Lab-Grown Prices Are Falling Too — Faster
It's easy to forget that lab-grown prices have fallen far more steeply than natural ones. According to De Beers, wholesale lab-grown prices dropped by around 90% between 2018 and 2025, and they're still coming down as production grows.
That's brilliant if you're buying — your budget goes a very long way. But it also means lab-grown diamonds hold very little resale value, so they're best chosen for how they look and what they mean, not as something to sell on later.
So What Does This Mean for You?
- If you love natural: choose it for its rarity, its story and its meaning — and focus on cut and quality. It's also a better time to buy natural than it has been for years.
- If you love lab-grown: you'll get more size and sparkle for your budget than ever before. Just see it as a beautiful diamond to wear, rather than something to sell later.
- Either way: neither should be bought as a financial investment. Buy the ring you'll love wearing every day.
We've put together a practical guide to choosing between them in Buying a Diamond in 2026.
Talk It Through With Us
We sell both natural and lab-grown diamonds, and we'll always give you an honest view of which makes more sense for what you want. Visit us in Lytham, or book a free consultation in person, by phone or over WhatsApp.
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Sources: Anglo American half-year results 2026, as reported by Miningmx; The Knot Real Weddings Study (couples married in 2025), as reported by IDEX and Rapaport; De Beers Group announcement on the closure of Lightbox, May 2025.