Diamonds grown in the lab are shining brighter than natural stones by grabbing market share, but their kryptonite could be the low prices and large carats indicating they really are in a different category, analysts and companies surveyed by The Wall Street. Journal say.
Post-pandemic demand for diamonds surged in 2021-2022, but then prices dropped by 8% compared with the first quarter of 2020 and lab-grown diamond (LGD) prices plunged by three quarters, the Wall Street Journal reported Friday, citing industry analyst Paul Zimnisky.
LGD prices are falling because their manufacturing costs also keep dropping, while slow demand is pulling down natural diamond prices, New York-based Ziminsky said. This downturn spurred diamond giant De Beers, owned by Anglo American (LSE: AAL), to cut its rough stone prices by 10% to 15% at its December sale, industry publication Rapaport News reported.
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