Big drop in natural diamond prices: Laboratory diamonds shook the market

İSMAİL ŞAHİN İSTANBUL - Natural diamond prices in global markets have decreased by approximately 50 percent in the last four years, reaching an all-time low in the Diamond Standard Index. Experts state that, according to this index, which has been maintained for more than 25 years, prices are one of the lowest levels of the last 25 years. The biggest change in the market is the proliferation of laboratory-grown diamonds. These stones have almost the same physical and chemical properties as natural diamonds, but they can be produced much cheaper. The fact that the difference is becoming increasingly meaningless for consumers weakens the "scarcity" and "prestige" story of natural diamonds.

2. THREAT LEGACY

Mining companies have reduced natural diamond production by approximately 20 percent in the last four years, from 120 million carats to 98 million carats annually. Despite this, prices continued to decline. Analysts state that as the Baby Boomer generation ages, a large number of inherited diamonds will enter the second-hand market, further increasing supply pressure. Market commentator Saul Sadka states that the ability of diamonds as an investment tool has weakened and argues that diamonds may experience the transformation that pearls experienced in the past. Accordingly, diamond may cease to be a symbol of wealth and turn into an ordinary product.

Türkiye WAS LIGHT AFFECTED

In Turkey, the jewelry industry is a little different from the world markets. Mustafa Özcan, President of the Jewelery Exporters Association, stated that, in addition to laboratory diamonds, the international crises have seriously affected both the jewelery and precious metals sectors.

NO INTEREST IN Türkiye

Stating that he does not live in Turkey, Özcan said, "Turkish people will not be able to adapt easily to laboratory diamonds. The reason for this is that laboratory diamonds are seen as fake. The customer says, 'I will not buy fake diamonds for my wife or girlfriend.' Sales of solitaire diamonds used in marriage proposals in the USA have dropped by 35 percent. Laboratory diamonds have taken their place. The price of a 3-carat natural diamond is 30 thousand dollars. The price of a 3-carat natural diamond is 3 thousand dollars. When you want to sell it, it costs 400 dollars." "The people in the USA have purchasing power and they like to wear jewelry and they follow the trends," he said.

HOW ARE LABORATORY APPLES PRODUCED?

Laboratory diamonds are produced in the factory by imitating the conditions in which diamonds in nature take millions of years to form. Carbon atoms are converted into diamonds either under very high pressure and temperature (HPHT method) or by growing layer by layer in special gas chambers (CVD method). The resulting stone has the same chemical and physical properties as natural diamonds. When the production time is reduced to a few weeks instead of millions of years, costs decrease and pressure is put on diamond prices.

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