Public Perception of Synthetic Diamonds Impacts Gem Market

Ever since synthetic diamonds became a significant player in the wider diamond marketplace in 2018, gem news has been dominated by theories trying to predict how lab-grown stones would change the global diamond trade. Now reflecting on the last seven years, we can see that synthetic diamonds gained traction with buyers at a mind-boggling pace, altering how people view the diamond trade as a whole. At the 2025 Tucson AGTA and GJX gem shows, dealers explained that they are now observing lab-grown diamonds having an effect beyond the diamond marketplace, impacting perception and sales of colored gemstones.

Anything is Possible with Synthetic Diamonds

Diamond-growing technology has advanced to the point where very large, multi-carat stones can be created quickly and cheaply. It is not just the final consumer at the end of the supply chain who saves money, the cutter who facets the stone also benefits. 

Because there is an infinite supply of big, high-quality, and low-priced synthetic raw crystals, lapidaries don't have to worry about how much weight a gem loses during the faceting process. Instead, cutters can sacrifice however much of the crystal as they like to maximize the beauty of the final product. This has resulted in the production of large numbers of the most perfect examples of standard shapes like rounds and ovals. The advantage of this style of cutting is that it produces identical stones with uniform and maximized sparkle. While most lab-grown diamonds fall into this category, there is a growing community of cutters who are creating unconventionally shaped lab-grown gems - some designs looking to the past and others that are entirely new. Dealers report that their buyers have quickly developed a taste for them. 

Looking to the past, Michael Money, a representative of John Buechner, Inc., said that their clientele is increasingly interested in lab-grown stones that are crafted into older cuts whose proportions vary widely, resulting in unique sparkle patterns. "Old and rose cuts give a costume feel that people like. Following the demand, some companies are now cutting naturals for an old look. There is a romance associated with the old cuts." 

Thanks to the inherent variation in the faceting arrangement of the rose-cut, each of these diamonds sold by John Buechner has a distinctive appearance. 

Beyond exciting shapes, lab-grown diamonds are also grown in a variety of colors. Prior to colored synthetic diamonds being available and affordable, many shoppers were not even aware that diamonds could be, for example, pink, green, or blue. The gems were simply so rare and expensive that they were not even considered by the general public. Anna Lipaygo, a sales executive at Lab Grown Diamonds USA, stated that the initial buyers of synthetic diamonds were purchasing mostly colorless stones because that is what they were familiar with. That, she said, is something that has changed dramatically - "in previous years, people were mostly buying colorless diamonds. Now, the demand is for blue, pink, yellow, and green stones."

Purchasers of Natural Diamonds Admire the Beauty of Imperfection

Pivoting to the natural diamond market, Sumeet Sethi, a representative of Manak Jewels, Inc., agreed with Money, saying that his customers have had "a growing interest" for a long time in fancy and old-cut natural diamonds whose proportions and symmetry differ from the mathematically perfect standard that is characteristic of so many lab-grown stones. The Manak Jewels customer, Sethi said, "is looking for something that is different and unique. Not mass market." To satisfy this demand, Manak Jewels carries both antique/vintage gems as well as new natural diamonds whose cut is "antique-inspired". 

Similarly, Eshvar Kotahwala said that old-mine cut diamonds, known for a wide variation in the placement and dimensions of individual facets, are selling particularly well for Vinod Kotahwala Inc., as are Asscher cuts. "Fancies", he said, "overall have a higher desirability than standard rounds".

Capitalizing on the interest in non-standard natural diamonds, Misfit Diamonds specializes in what representative Ashkan Asgari calls, "niche shapes". One of those niche shapes is the rose-cut, which features faceting on the crown of the stone that best reflects incandescent candlelight.

Thus far, diamond growers have not managed to create a convincing synthetic version of highly included mined diamonds. Kunal Nekiwala represents Star Colors Inc., a company that sells natural diamonds with large amounts of eye-visible clarity characteristics called salt-and-pepper stones, said that he has recently seen synthetic gems which try to mimic the natural look, but they are easily distinguishable from the natural product by "artificial-looking dalmatian dog spots". As salt-and-pepper diamonds have no convincing synthetic counterpart, Nekiwala described the demand for them "crazy" and predicts that sales will remain strong with buyers who want to show off jewelry that cannot be mistaken for synthetic. He describes "rustic salt-and-pepper diamonds" as "stones that are different from the traditional look". This, again, reflects the preference of mined diamond buyers for unusual and one-of-a-kind stones.

OM Imports offers its clients both natural fancy-cut gems as well as salt-and-pepper stones. Nick Suhagiya reported that he has received some requests for synthetic salt-and-pepper diamonds, but said "it is a small market and I do not anticipate it growing much". Instead, Suhagiya said that OM Imports buyers are mostly interested in clear, fancy-cut stones - "kite shapes, hexagons, and emerald cuts are our bread and butter right now. One and a half carats up to two and a half carats is the most popular weight range." Suhagiya also noted that OM imports is "creating a space for ourselves with respect to matched side diamonds" that is consistent with the trend towards unique, personalized jewelry.

Colored Gemstone Market Also Impacted by Lab-Grown Diamonds

Of all the ways that the abrupt introduction of low-cost synthetic diamonds has had on the public perception of gemstones, perhaps the most destructive has been a fundamental questioning of value. First, customers were told that a synthetic diamond is the same as a natural diamond, just less expensive. The question buyers then had to ask themselves was whether or not they cared about origin. This, in of itself, is not problematic to the wider gemstone marketplace. However, the per-carat values of synthetics continue to drop at astonishing rate, making buyers feel very unsure of whether or not they are "getting a good deal" when it comes to diamonds in general. 

Some sellers noticed that this shaken trust increased sales of non-diamond gemstones. Ivan Hackman of Intercolor said "people used to buy colored gems as cheaper alternatives to diamonds. Now with synthetics, diamonds are less money than corundum."

Examining this subject from a different perspective, Bryan Lichtenstein of 3090 Gems said that his customers report that they now assume any big diamond they see is synthetic. While there are synthetic versions of many colored gemstones available, they make up only a small fraction of the market. This, Lichtenstein says, "leads people to turn to natural spinel, emeralds, and corundum."

Unfortunately, not everyone is as optimistic as Lichtenstein. Other sellers say that the lack of faith inspired by synthetic diamonds has done more harm to the colored stone market than good. Malinda Daniel who represents Tim Roark Inc. offered the statement "lab diamonds may have hurt the colored stone market as people have lost faith in the industry." Rahul Sacheti of M.S. International, Inc. echoed this sentiment - "labs have killed the colored stone sales because there is no guidance or trend to follow or believe in. There is no rhyme or reason to prices."

With respect to lesser-known colored gems, James Carpenter of Unconventional Lapidary, LLC. spoke about a possible link between the demand for unique diamond shapes and an increased interest he has seen for geometric shapes like hexagons, shields, and trillions. Such designs, he said, may have as little as a 15% yield, but those are the shapes that are selling. As a result, Carpenter said that "lapidaries are enjoying creative freedom and are doing lots of free-form cutting."

Low-Priced Synthetic Diamonds May Shrink the Whole Industry

Pulling back and considering how synthetic diamonds are continuing to shape the wider gems and jewelry marketplace, some sellers are worried the size of the whole industry will be reduced overall. One dealer who requested anonymity, offered the specific example a diamond tennis bracelets. A bracelet with mined stones, he estimates, costs somewhere between ten and fifteen thousand dollars. The same bracelet set with lab-grown stones may be priced as low as two thousand dollars. The customer who wants such a bracelet will likely only purchase one, because they don't need two of the same item. He said, "if the purchaser chooses the synthetic option (as so many are right now), that means that the difference in price, which in this example is about thirteen thousand dollars, is not being invested in the jewelry market." Considering that almost half of all engagement rings sold in the U.S. in 2024 featured synthetic diamonds, this is potentially a huge economic hit for the industry. 

Patricia Ahdoot of Diamond Trading Company summed up the market for natural diamonds best. "People are looking for something that is not the same as what everyone else has. They want to be different. We are seeing a general movement away from celebrity trends and millennials don't want basic round stones. Individuals are increasingly relying more on their personal style." 

What to Expect

Looking to the immediate future, it appears that customers of natural and synthetic diamonds, as well as colored gemstones, will have sustained interest in non-standard shapes as a reaction against the formulaic faceting used on so many synthetic diamonds. However, you can certainly expect to continue to see plenty of mathematically perfect lab-grown stones.

With respect to antique cuts like the rose and old mine shapes, natural diamonds are selling steadily, and it is likely that there will be an increasing availability of lab-grown stones. Also, manufacturers of custom fantasy cuts are pushing hard to make people aware of their product, and are banking on this awareness leading to increased demand. 

What we will be watching for is if the ever-decreasing per-carat price of synthetic diamonds starts to redirect large numbers of buyers towards non-diamond gemstone purchases.