Lab-grown diamonds, once dismissed as subpar yellowish stones, are now practically impossible to distinguish from their natural counterparts by look alone. And as more buyers are drawn to their affordability and eco-conscious appeal, synthetic stones are upending a market long defined by tradition and exclusivity.
Last year, 52% of American newlyweds used an engagement ring with a lab-grown stone compared to just 12% in 2019, according to an annual survey by The Knot.
This boom in popularity has hit the natural diamond market hard.
The price of mined stones has dropped around 26% since 2022, according to jewelry data analytics firm Tenoris. In 2024, De Beers, the biggest name in the natural diamond business, reported a 23% year-over-year decrease in revenue driven by a loss in demand for mined stones.
This disruption is even being felt in the luxury shopping destination of Beverly Hills, where many retailers are now opting to sell both natural and mined stones.
But while the future for the overall industry is uncertain, high-end local jewelers remain confident that Beverly Hills will continue to flourish as a mecca for natural stones.
Photo courtesy of Grown Brilliance
“Just look at all the global brand jewelry houses building new salons in Beverly Hills,” said Beverly Hills jewelry designer Martin Katz. “That certainly confirms in my mind that there is an international confidence in the Beverly Hills market for genuine diamond jewelry.”
This confidence is founded in the fact that there will always be a customer base that appreciates the value of natural stones and will therefore be drawn to the concentration of top-tier jewelers in the city that specialize in rare and antique stones.
“Although they [lab-grown diamonds] may look the same to the naked eye, they are not the same,” said Katz. “Natural diamonds are formed over billions of years deep within the Earth under extreme heat and pressure, making them rare and unique treasures from Mother Earth that appreciate over time.”
Or, as renowned local jeweler Jack Weir puts it simply, “Natural diamonds have charisma; lab-grown diamonds do not.”
Manufactured diamonds are chemically, physically and optically identical to natural diamonds, but instead of being created inside the Earth over the course of 1 to 3 billion years, they’re created inside labs in a matter of weeks.
Akshie Jhaveri, founder of lab-grown diamond seller Grown Brilliance, vividly recalls the moment she understood the possibilities of lab stones. In 2020, her husband presented her with a group of natural diamonds and a group of mined diamonds and asked her to determine which was which.
“He had two parcels of diamonds, and I really couldn’t tell the difference,” she said. “I thought, this is amazing, this is crazy, and this is an opportunity we need to launch on before it gets too common.”
She founded Grown Brilliance later that year, at a time when there were only two other major players in the market. Fast-forward five years and lab-grown diamond businesses are “a dime a dozen,” she said.
One of the first three storefronts she opened was just across the border from Beverly Hills on Melrose Place. In addition to engagement rings, the store does a fantastic business in statement jewelry pieces perfect for flaunting at a red-carpet event, she said.
“The high jewelry collections that we carry are all made in the exact same way that you would make a natural diamond piece. It’s all handset, hand-polished with very high-quality solid gold, and our customers love it,” she said. “No one can tell the difference, so why would you go and invest in something that you will only wear maybe two or three times a year?”
In addition to spotting a key market opportunity, Jhaveri also said she became passionate about selling exclusively lab-grown diamonds because of the ethical and environmental benefits.
Unlike traditional diamond mining, which can involve destructive land excavation and high carbon emissions, lab-grown diamonds are created in controlled environments with a smaller ecological footprint. Additionally, purchasing lab-grown diamonds helps avoid the concerns associated with “blood diamonds”—gemstones mined in war zones and sold to finance armed conflict.
Grown Brilliance’s rate of growth has exceeded Jhaveri’s expectations. She now has 14 stores in eight states, with more locations on the way.
Improved lab technology and increased production have pushed down the cost of lab-grown stones, which has only served to further increase demand for synthetic jewelry.
In 2018, lab-grown diamonds were sold at an approximate 20% discount to their natural counterparts. Now they are sold at an 80% to 90% cheaper price compared to mined stones, and some experts predict their price will continue to drop even further.
Photo courtesy of Robinhood Diamonds
Among them is William Logian, co-founder of RobinHood Diamonds, who sells some of the cheapest manufactured stones on the market by electing to decrease the markup passed on to customers. The prices of diamonds on his website start at just $119 for a 0.5-carat pear shaped stone.
After working in the jewelry industry for three decades, including at top-tier companies like Tiffany & Co., Logian said the idea for RobinHood Diamonds was born from a desire to give back after surviving a Stage 4 cancer diagnosis.
“I kind of was in a moral distress of having three kids and being faced with such harsh life realities,” he said. “Then I came up with this wonderful idea of RobinHood Diamonds, where we are going to concentrate on making luxury accessible for all, and we are going to work diligently and very hard to encourage everyone in the industry to stop overcharging for the lab-grown diamonds.”
Logian predicts that lab-grown diamonds are only going to continue to drop in price and take over more of the jewelry market.
But what happens to the meaning of a diamond—a traditional symbol of luxury and elite social status—when it becomes accessible to everyone? High-end consumer demand shifts toward types of stones that hold on to their exclusive and irreplaceable nature.
“Obviously, the lab-grown diamond market is growing right now,” said Sasha Tarasova, head of sales for Jack Weir & Sons. “We have experienced impacts, primarily in shifting consumer demand towards colored gemstone rings as well as antique pieces and designer jewelry.”
Jack Weir started his first diamond business in 1981 after he was inspired by the gorgeous diamonds he saw on a trip to Brazil. His son Wyler joined the firm in 2011, and the following year they renamed the brand Jack Weir & Sons.
The Weirs consider themselves treasure hunters, traveling the world to secure the most beautiful and interesting stones to bring back to their Beverly Hills store. Because of the rare nature of their vintage jewels, the company does not suffer from increased demand for lab-grown diamonds.
“The people that we work with appreciate natural diamonds and specifically antique one-of-a-kind natural diamonds,” said Tarasova. “The old stones that we specialize in carry historical significance and emotional value. We consider them heirlooms, symbols of legacy as well as timeless investments.”
Some of the jewelry they offer is exceptionally rare. For example, they are currently selling a magnificent 1930s Art Deco, hand-cut Tiffany & Co. engagement ring. It’s a 5.03-carat emerald-cut diamond of G color with sparkling diamond accents, hallmarked with a signature and purity marks.
“It’s listed on our website for $188,000, but it’s a truly museum-worthy piece,” said Tarasova.
Photo courtesy Martin Katz
Acclaimed Beverly Hills jeweler Martin Katz is not concerned about the impact of lab-grown diamonds on his atelier for many of the same reasons, because his clientele appreciates the history and enduring value of natural diamonds.
“No two natural diamonds are alike, each one carrying its own history and story,” he said. “Much like the art market, an original work is far more valuable and collectible than a reproduction—even if an untrained eye cannot tell the difference between the two pieces.”
Katz has been in business in Beverly Hills for over 30 years and recently relocated to a penthouse salon in the Fred Hayman building, which allows him to spend more time designing jewelry and providing private one-on-one personalized service to his clients.
While Katz’s business is largely untouched by lab-grown diamonds, he anticipates they will continue to have a huge impact on the broader jewelry industry going forward.
“Some retailers will open just to cater to that [lab-grown] market as the profit margin percentages are massive compared to the margin on natural margins,” he said. “The mass market may be attracted to it, but the unlimited production of lab-grown stones keeps driving prices lower, so much so that the fashion industry will likely start using them in place of crystals.”
PHOTO COURTESY OF MARTIN KATZ
Tarasova also said she anticipates seeing more retailers enter the lab-grown business, while the natural industry will become more concentrated among the highest-end designers. And when it comes to the engagement ring industry, she does expect to see a continued growth in demand for colored stones and antique rings.
“People try to choose engagement rings that reflect their personality,” she said. “I’m sure a lot of people don’t want to be associated with something affordable and easily accessible.”
As the natural diamond industry adapts and contracts, both Tarasova and Katz predict Beverly Hills will remain a key marketplace where people come to seek natural stones.
“Beverly Hills is synonymous with luxury and heritage and timeless style,” said Tarasova. “The clientele here values craftsmanship, making it a natural house for a natural diamond market and destination for global shoppers who trust Beverly Hills with the highest standards of quality.”
