Diamond prices fall to lowest levels this two decades as lab-grown stones reshape market

China drives lab-grown diamond supply

China has become a major force in the lab-grown diamond market, accounting for more than 60 per cent of global synthetic diamond production.

Chinese exports of lab-grown diamonds increased 65.3 per cent year-on-year in the first half of 2026, adding to pressure on an already weak market.

The growing supply of cheaper stones has also affected mid-tier natural diamonds, which compete for many of the same consumers. Larger and higher-quality natural diamonds have proved more resilient, with their rarity helping them retain premium prices, reports TradingView.

The decline in demand has also affected diamond mining. Debswana, a joint venture between De Beers and the Botswana government, has recorded a sharp fall in sales. Diamond mining has historically been a major part of Botswana’s economy.

Diamonds face a different scarcity challenge

The comparison between diamonds and Bitcoin is not straightforward because diamonds are not interchangeable. The value of a 1-carat diamond can vary considerably depending on its cut, colour, clarity and inclusions.

Bitcoin, in contrast, is fungible, meaning each bitcoin represents the same asset. Its supply is also capped at 21 million coins.

The rise of lab-grown diamonds has challenged the traditional perception of diamond scarcity. Technological advances now allow chemically identical stones to be produced at scale, putting pressure on the prices and perceived value of some natural diamonds, according to a report in TradingView. 

For natural diamond miners, the top end of the market remains more resilient. Large diamonds with high colour and clarity can still command significant premiums because of their rarity.

However, such stones represent only a small portion of the overall market. Continued expansion of lab-grown diamond production, particularly in China, could therefore remain a key factor influencing prices across the industry.