NO MORE FOREVER

The rise of lab-grown diamonds raises awkward questions for the natural variety

- SHARLEEN D'SOUZA

Most of the diamonds we have in the world today were forged 1 billion to 3 billion years ago. We are speaking about the natural variety here.

There is another kind, which is also created under extreme heat and pressure, but in a matter of half a dozen days or so, and in a laboratory. This is creating a problem for the natural kind because lab-grown diamonds are also widely considered to be—well—diamonds, chemically and physically. And they look just like natural diamonds, to the extent that you need sophisticated machinery to tell the two apart.

Unsurprisingly, a lot of buyers, especially millennials and Gen Zers, are going in for lab-grown diamonds. They say it is socially and environmentally more sustainable. What need not be stated is that lab-grown diamonds are cheaper, much cheaper than natural ones—according to different accounts, 80 to 95 percent cheaper.

"First and foremost, the massive success of lab-grown diamonds has reduced prices for natural stones well beyond what the mining industry had expected, driven largely by consumers who want more affordable options."

Second, in the context of rising environmental, social, and governance concerns, consumers are looking for improved sourcing traceability for their gems. And third, industry players are navigating sanctions against products from Russia, a major rough-diamond producer," says a study dated November 26 on the McKinsey & Company website.

Suddenly, the legendary advertising line—a diamond is forever—is losing its shine. Worse, the prices of natural diamonds are declining.

De Beers-Tanishq tieup