Are diamonds even a luxury anymore? De Beers reckons with price plunge

It made mined diamonds synonymous with love and devotion. Now the CEO decries what he calls a 'con' in lab-grown stones masquerading as precious

- Jenny Strasburg & Suzanne Kapner

De Beers Chief executive Al Cook wants to save a generation of lovers and newlyweds from what he calls a "huge con" when it comes to buying diamonds.

In the process, he hopes to rescue his iconic brand—and perhaps the diamond industry as it has existed for more than a century—from an ominous decline.

London-based De Beers almost singlehandedly persuaded generations of consumers that love wasn't genuine unless it was sealed with a diamond. The stones were prized not only for their beauty but also as a miracle of nature formed over a billion years deep in the earth, and then extracted in exotic locales—often on behalf of De Beers.

Now diamonds can be made in labs that mimic the earth's extreme pressure and temperatures, but for a fraction of the price. A decade ago, such man-made gems were novel. Today they are mainstream, and increasingly challenging the perception of diamonds as a luxury accessory.

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. But last month, Signet said it, too, has been adding more lab-grown diamonds to its fashion jewelry, which was among the factors helping to pull the company out of a prolonged sales slump.

Synthetic diamonds currently account for more than a fifth of global diamond jewelry sales, up from less than 1% in 2016, according to Paul Zimnisky, an independent analyst.

For engagement rings, the penetration is even higher. More than half the engagement rings purchased last year in the U.S. had a lab-created diamond, a 40% increase compared with 2019, according to a survey of nearly 17,000 U.S. couples by wedding planning website The Knot.