The diamond and jewelry industry has promoted synthetic diamonds as a replacement for natural diamonds, driven by greed. Synthetic diamond dealers and jewelers have made huge profits by unfairly comparing the value of synthetic diamonds to natural diamonds.
Leading companies in the diamond trade, from De Beers to GIA to Signet Jewelers, support replacing natural diamonds with synthetic ones, despite knowing that the price of synthetic diamonds will plummet due to their unlimited supply.
The steep price drop of synthetic diamonds will disappoint consumers who bought them at high prices. They will lose trust in the diamond trade, leading to a strong consumer backlash and reputational damage to the diamond and jewelry industries.
Due to the negative impact of synthetic diamonds, we estimate that demand for natural diamonds will drop by 30% in the short to medium term. It will take years for the demand for natural diamonds to recover.
The "diamond dream" refers to a bride's promise to build an exclusive relationship and receive a rare, expensive gift—a diamond has always symbolized this dream. However, with the promotion of cheap synthetic diamonds, this symbolic gift of commitment has lost its value.
As the price of synthetic diamonds continues to fall, they will no longer be an alternative to natural diamonds for engagement rings. The idea that a commitment gift must be expensive will dominate, and many women who receive synthetic diamonds will feel deceived. With diamonds' reputation damaged, the wealthy may turn to other natural gemstones.
The value of natural diamonds depends on their reputation. Those who have tarnished the diamond dream do not deserve to benefit from it.