“The brand made mined diamonds synonymous with love and devotion.
Now the CEO decries what he calls a ‘huge con’ in lab-grown stones
masquerading as precious.” —Wall Street Journal
So you’ve probably already seen the Wall Street Journal article: “Are Diamonds Even a Luxury Anymore?” It’s a headline that’s hard to ignore—and so are some of the claims inside. [You may need a subscription to read the article.]
The piece touches on falling diamond prices, the rise of synthetic/lab-grown diamonds, De Beers’ strategy shift, and changing consumer habits. But while it raises important questions, it skips over some details that matter to those of us in the trade.
We’ve broken down the massive article into key talking points, and have highlighted areas where the reporting could use a bit more detail.
A review of the Wall Street Journal feature story
“Are Diamonds Even a Luxury Anymore? De Beers Reckons With Price Plunge”
by Jenny Strasburg and Suzanne Kapner.
Opening / Overview: A Crisis of Identity for Diamonds
De Beers CEO Al Cook is fighting to preserve not just the prestige of natural diamonds, but the future of the company. Based in London, Cook took over in early 2023 just as synthetic/lab-grown diamonds flooded the global markets—particularly from China and India—undermining the natural stone’s long-held aura of exclusivity.
“Since 2023, the influx of lab-grown diamonds out of China,
India and elsewhere has turned into a flood,
crushing demand for natural stones.” – Wall Street Journal
This feature story begins by establishing how consumer habits, economic pressures, and technological advances have reshaped what diamonds mean in modern culture—and why De Beers sees this as an existential threat.
Here is the Key Issue
Diamonds, once a symbol of rare and eternal love, are now mass-produced and increasingly seen as fashion items rather than heirlooms. With synthetic diamonds making up more than 50% of U.S. engagement ring sales last year, De Beers must reckon with a fundamental shift in value perception—and the steep decline in natural diamond prices that’s followed.
“Diamonds were always seen as expensive, a rich person’s asset,” says Matt Bick,
a third-generation diamond seller with a showroom
on the same London block as the De Beers headquarters.
“Now everyone can wear them.” – Wall Street Journal
So what is Cook going to do about it?
Going All In: Betting the Brand on Nature
Al Cook’s decision to shut down Lightbox, De Beers’ own synthetic/lab-grown diamond brand, was symbolic and strategic. It marked the company’s full commitment to mined diamonds as its differentiator. De Beers is now betting that customers will still be moved by the narrative of something ancient and rare—despite synthetic/lab-grown stones being chemically [, physically, and optically] identical. [One made by mother nature, and the other by humans in a factory.]
Cook’s concern is less about the quality of synthetic diamonds and more about the industry chaos he believes they’re causing. He warns of misleading pricing and diminished meaning, positioning natural diamonds as the “real thing” in an age of mass imitation.
Marketing Push: Making the Case for Authenticity
“De Beers’ future depends on consumers who believe that authenticity can’t be made in a lab.”
– Wall Street Journal
To change the narrative, De Beers and its majority supplier, Botswana, have significantly increased their marketing spend. The company has also partnered with Signet Jewelers, the world’s largest diamond retailer, on a campaign called “Worth the Wait”—a “romantic” return to the storytelling roots that once made “A Diamond is Forever” legendary.
Meanwhile, trade groups like the Natural Diamond Council are playing hardball, labeling synthetic/lab-grown gems “The Dupe.” But Cook is trying to walk a finer line: preserving prestige without resorting to fearmongering, and winning back younger buyers who are now more concerned about price than provenance.
The Botswana Deal: A Long-Term Lifeline
“Botswana, which depends heavily on diamond exports,
has slashed its economic-growth forecasts as it grapples with the protracted industry slump.”
– Wall Street Journal
In a move critical to its long-term supply chain, De Beers finally renewed a contentious licensing agreement with Botswana earlier this year, securing access to natural diamonds through 2050. The deal comes at a time when Botswana’s economy is reeling from declining diamond sales—and both partners are banking on a revival in demand.
Botswana’s ambassador to the U.S., Mpho Mophuting, emphasized how much the country relies on diamond revenue for education and infrastructure. But emotional appeals about diamonds funding national progress don’t always land with price-sensitive buyers in the U.S. and Europe.
The De Beers Legacy: From Monopoly to Market Chaos
The article dives into De Beers’s rich history, from its founding by Dutch settlers in 19th-century South Africa to its decades-long dominance of global diamond supply. That control started to erode in the 2000s due to the blood diamond scandal and rising competition from Russia and independent miners.
Today, De Beers is using technology to defend its niche. The company is now promoting a $9,500 countertop testing device called DiamondProof, which helps retailers—and consumers—verify a stone’s origin in seconds. The goal: to rebuild confidence in the value of natural diamonds.
Fashion Trends Change: The Synthetic/Lab-Grown Surge
“Walmart sold its first lab-grown diamonds in 2022, but now
the stones make up half of its diamond jewelry assortment.
Signet Jewelers, which says it is the world’s largest retailer of diamond jewelry,
with brands that include Kay Jewelers, Zales and Jared,
is partnering with De Beers to extol the virtues of natural diamonds
in a new marketing campaign.“ – Wall Street Journal
Despite resistance from high-end brands like Tiffany, synthetic/lab-grown diamonds have been winning the volume game. Walmart and Pandora have seen surging sales—especially as shoppers prioritize size and affordability over sentiment or “investment value.” Pandora, for example, stopped selling natural mined diamonds altogether in 2021.
Signet is now hedging its bets, expanding synthetic/lab-grown offerings for everyday fashion while defending natural diamonds for major life events. The company’s new CEO is rebalancing its portfolio after years of underperformance, betting that customers still associate natural mined diamonds with “forever moments” like weddings and anniversaries.
Falling Prices: A Race to the Bottom?
“When I’m 80 and looking to pass it to a daughter or granddaughter,
it will still be a sentimental and beautiful diamond,” she says.
“It’s not like I’m looking to resell it.” – Wall Street Journal
The final section of the article spotlights the massive price collapse: synthetic/lab-grown diamonds have dropped 86%+ in value since 2016, while natural diamonds have declined 40%. The gap between them, once narrow, has now widened fivefold—making synthetic diamonds a deal, but a risky one for value-conscious buyers.
Some regret their synthetic/lab-grown purchases, viewing them as emotionally hollow or financially unsound. Cook believes that synthetic diamonds are headed toward the same fate as cubic zirconia—cheap, indistinct, and eventually disposable. His parting sentiment? “I weep for you” if you bought high and watched your synthetic/lab-grown gem plummet in value.
Tap Here to read the full feature in the Wall Street Journal!
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