Diamond giant De Beers has cut the price of its lab-grown rough by nearly 40%, citing a plunge in wholesale prices, the London-based company said on Friday.
This engineered gemstone has become popular among frugal diamond buyers, with its price reduced from $800 to $500 per carat, a 37% discount.
De Beers, which makes lab-grown rocks under the Lightbox brand and is also the largest producer of natural diamonds, said the lower costs would be “permanent savings.”
De Beers has been fighting the trend towards LGD by downplaying its quality for many years. But it shocked the industry by launching Lightbox in 2018 and opening a $94 million manufacturing facility in Gresham, Oregon, two years later.
De Beers’ profits have taken a hit in recent years as sales of LGD have soared while sales of natural diamonds have declined.
In January, the company cut the price of natural diamonds by 10% in an effort to revive sales.
“The retail price differential between natural and lab-grown diamonds is rapidly widening, accelerating consumer recognition that these are fundamentally different products,” said Sandrine, CEO of the De Beers brand.・Mr. Conseilor said in a statement.
“We believe it is important that jewelry consumers understand that lab-grown diamonds are a separate product category because they do not have the same lasting value as natural diamonds.”
Some say De Beers’ price cuts are in line with what most retailers are charging for LGD.
“De Beers is aligning with the market,” said Leah Papasifakis, head of product at New York City-based Ritani (25 West 48th Street).
Ritani’s LGD sales have been “stable” and represent a significant portion of the private company’s sales, Papasifakis said.
Jewelers say demand for LGD pendants and earrings has only increased in recent months.
Litani prices are approximately $500 per carat for LGD, compared to approximately $15,000 per carat for natural diamonds.
It is impossible for the human eye to distinguish between the two types of diamonds and can only be detected with special equipment.
