The Diamond Industry's Divide: Rapaport Declares War on Lab-Grown Stones
In his bold and fiery New Year address, diamond industry heavyweight Martin Rapaport once again launched into a passionate attack on lab-grown diamonds—branding them as emotionally empty, financially flawed, and even a threat to the sanctity of engagement rings.
While the natural vs. lab-grown diamond debate isn’t new, Rapaport’s recent comments have reignited the controversy. Once considered a niche market, lab-created diamonds have exploded in popularity as their prices have plummeted—some by as much as 80% over the last four years. And now, consumers are paying attention.
Rapaport’s Argument: Diamonds and Darwinism?
Rapaport claims that diamonds aren’t just about sparkle—they’re about survival. “The desire for diamonds comes from our need for emotional and financial security,” he stated. “If you want to have children, you need emotional and financial security. That’s Darwinian.”
Sure, most people would agree that stability is key to raising a family. But tying that to diamond purchases? That’s a stretch. Some might even call it outdated thinking. After all, diamond engagement rings—as romantic as they may seem—were made mainstream by a De Beers marketing campaign after World War II, not millions of years of evolution.
Lab-Grown = Bitcoin?
Rapaport also likened lab-grown diamonds to cryptocurrency—specifically, Bitcoin. In his words, lab-grown diamonds are “worse than Bitcoin,” lacking any scarcity and steadily losing value.
This comparison raised more than a few eyebrows. While cryptocurrencies have had their ups and downs, Bitcoin surged over 20x from 2017 to 2023. And lab-grown diamonds, while decreasing in price, still appeal to consumers who prioritize affordability and transparency over traditional luxury narratives.
Snobbery in Sparkle: A Case of Diamond Elitism
Rapaport’s harshest blow? Lab-grown diamond rings are “costume jewelry.” He doubled down, arguing that engagement rings must never be seen as mere accessories. Many in the industry echo this sentiment, with some retailers outright refusing to carry lab-created options, claiming they don't reflect their "values."
But what message does that send to the growing number of consumers who choose lab-grown rings—for ethical reasons, environmental concerns, or simply budget? Are their commitments less valid? Is their love worth less?
Pricing Pressure and a Shifting Industry
Lab-created diamonds continue to slide in price, with some analysts predicting a future where pricing is more linear—meaning a 2-carat lab-grown gem would cost twice as much as a 1-carat one. This contrasts with natural diamond pricing, which increases exponentially based on carat weight and rarity.
That shift is unsettling to many traditional retailers. If lab-grown diamonds take over 20%, 30%, or even 50% of the market, profit margins will shrink, and long-standing business models may collapse. Wholesale suppliers that once thrived on high capital and credit flows could be forced to evolve—or disappear.
The Future Is Clear (and Lab-Grown)
Like it or not, lab-grown diamonds are here to stay. As prices fall and awareness grows, they’ll likely continue to eat into the market share of natural stones. And while some retailers may hold firm in their rejection, others will adapt—just as they did when online diamond sales were once viewed as blasphemy.
In the end, love is personal—and so is the jewelry that represents it. Whether natural or lab-grown, what matters most is the meaning behind the stone, not its carbon pedigree.