Separation of the Natural and Synthetic Diamond Markets Revisited

At the 2024 JCK show, we interviewed both natural and synthetic diamond sellers about the state of the global diamond market as a whole. We were interested in a few topics in particular: the current and predicted stability of natural diamond values, how synthetic diamond sellers were attracting new buyers, and how consumers were choosing between natural and synthetic diamonds for their jewelry.

This year, we were fortunate to reconnect with Kunal Shah, President of Pristine Gems and now Vice President of the Indian Diamond and Colorstone Association (IDCA), who contributed significantly to our previous article. Last year, he spoke about how the rapid introduction of synthetic diamonds into the trade was causing chaos amongst sellers, designers, and buyers alike. This turmoil, he said, undermined the stability of both natural diamond values as well as consumer confidence. 

Whilst Shah acknowledged at the time that no solution would resolve these issues quickly, he advocated for a rapid and complete separation of the diamond market into two categories - natural and synthetic. Treating stones as separate gemstone species, he believed, was a necessary first step towards stabilizing the wider industry - "Colorless white diamonds are in direct competition with synthetics. The problem is that the lab market, with rapidly decreasing per-carat values, has completely destabilized everything. It is a very challenging and demanding time for natural diamonds and natural diamond sellers."

Now, a year later, Shah revisited the issue with us, discussing the changes that have been implemented in the wider diamond market, how sellers and jewelry designers have adapted to the flood of inexpensive synthetic diamonds, and what additional steps he feels are vital going forward. We were also able to speak with other sellers, both at JCK and the Couture Show, which was hosted at a neighboring venue, to gain a balanced view of the issue at hand.

The Diamond Market is Increasingly Bifurcated

The diamond market is, by nature, a global trade with stones traveling to many different places as they are fed through the multi-step supply chain being mined, processed, faceted, graded, set in jewelry, and sold. The path a synthetic diamond travels is much shorter, but, again, can be an international trip. As such, there is no single governing body that can make statements or enact regulations to the industry as a whole. Instead, it is up to individual countries and organizations to make independent decisions about how they market and sell natural and synthetic stones. 

Over the past year, several high-profile policies have been enacted in various parts of the world that aim to accomplish what Shah and the IDCA have championed for years - a definitive separation of the natural and synthetic markets. 

It is important to stress that none of these actions are intended to punish synthetic diamonds or deny their place in the trade. Indeed, there are sellers who happily offer both options to their clients. Rather, the principal goal is to minimize confusion and unease surrounding the inherent value of natural diamonds and the low cost of synthetic gems by emphasizing that they are different materials. 

Nomenclature Matters

One of the most powerful actions that can be taken to separate a single concept into two separate notions is to use different terms when describing each side. In 2023, Belgium declared that the weight of synthetic diamonds could no longer be described using the standard carat measurement. Instead, it was to be reported in grams. Subsequently, Belgium-based HRD Antwerp labs recently announced that, effective at some point in 2026, they will cease issuing reports for loose synthetic diamonds. In February of 2024, France enacted a law that stated that manmade diamonds must be sold using the term "synthetic", and banned other descriptive terms like "cultivated" or "lab-grown". 

American-based GIA labs have taken similar steps. In June of 2025, it was announced that GIA will soon change how it refers to both the color and clarity of synthetic diamonds. The new system will utilize "a combination of metrics related to color, clarity, and finish" to assign one of two grades: "premium" and "standard". Stones that fall below the criteria for a "standard" grade will not qualify for an official designation. 

Describing the attributes of natural and synthetic diamonds differently is exactly the type of separation that Shah and the IDCA continue to campaign for.

Creating Physical Space

While using unique descriptive terms goes a long way in separating concepts that have been viewed as a single issue, creating physical distance between products is an absolute way to emphasize that, despite appearances, they are not the same.

Beginning with the 2025 Tucson Gem Show, the AGTA banned synthetic diamonds from their show floor. Sellers, they said, were free to continue selling their synthetic product, but they were not allowed to bring such stones onto the showroom floor. This was a very powerful, yet non-judgmental decision intended to separate synthetic from natural diamonds. 

JCK takes a different approach, permitting both types of diamonds to be displayed and sold, but has designated areas for each product. This keeps the diamonds separated from each other, but allows buyers to easily access both products.

Diamonds Are Not the First Gemstone to Contend with Synthetic Alternatives

The astounding speed at which synthetics gained popularity left many feeling dizzy, disorientated, and unsure of how to respond. However, Shah pointed out that the issue of affordable synthetic gemstone alternatives is one that we have seen before, and the ways that people responded to them in the past can help guide those in the trade moving forward. 

Beginning in the early twentieth century, scientists learned how to grow different species of colored gemstones, starting with Auguste Verneuil, who created the first commercially viable ruby. Today, many colored gemstones, including corundum, spinel, emerald, and alexandrite, can be grown by various processes. 

Just as we are seeing in the diamond market today, those purchasing natural colored gem jewelry became confused and concerned about the value of the stones. What emerged from the initial chaos was a simple separation of the gemstone marketplace, with affordable jewelry featuring synthetic stones and less expensive metals on one end and higher value items with premium metals and natural stones on the other. Now, when people shop for colored gemstone jewelry, they know what they will get at different price points. There is no confusion about the nature of the synthetic stones and no significant worries that they are intermixed. 

Observing booths are the JCK show, Shah pointed out that synthetic-colored gemstones were only being offered in a handful of places. This, he says, reflects that synthetic colored gem jewelry has its own distinct marketplace, and that platform does not have significant overlap with fine jewelry shows; "You no longer hear about synthetic colored gemstones at our tier. This is the inflection point that we are at now with synthetic diamonds."

Designers Are Adding More Color

Exploring the jewelry offered at both the JCK show as well as the Couture Show, it was apparent that quite a lot of jewelry with colorless diamonds had a significant amount of color mixed in. Shah says that there are two reasons that designers of fine jewelry support this trend: to show that their jewelry is, indeed, natural and high value, as well as to make their designs pop when featured on social media.

Addressing the first issue, it has become rather commonplace for individuals to embrace synthetic diamonds as their day-to-day jewelry, opting to keep their more valuable natural diamonds tucked away in a safe. Some people go as far as to have two identical pieces, especially when it comes to engagement rings, with one featuring natural stones and the other synthetic. This is a great strategy to show off diamond jewelry while minimizing the potential financial loss in the event of a misplacement or theft, but it also makes people wonder if the jewelry they see others wearing is actually valuable.

If there is one thing that famous name-brand designers and big design houses do not want people to do, it is question the authenticity of stones in their jewelry. The question then becomes, is there some design element that can be added to indicate the value of a piece? The answer jewelers have come up with is yes - you can add other details that people know to be costly. Specifically, colored gemstones.

As we just discussed, the markets for natural and synthetic colored gemstones have long been separated. Thus, when most people see fine jewelry with colored gemstones, it is assumed without thought that those stones are natural. The line of thinking is, if people believe that the colored stones are natural, it then indicates that the diamonds are natural as well.

Recognizing that designers are using colored stones in this way, many loose colorless diamond dealers are choosing to add colored gemstones to their inventory. Shah, for example, recently added Zambian emeralds to Pristine Gems offerings. "The timing," he said, "was right. Demand for rubies, emeralds, and sapphires, especially blue sapphires, has increased. I carry Zambian emeralds specifically because those stones speak to me." 

Also, increasing their colored gemstone inventory is Meridian Diamonds. Company representative Jonathan Terry stated that they "have gotten into colored gems and pulled away from diamonds. This is a result of the natural diamond market for items under $20,000 being depressed as a result of cheap synthetics. I see this as an industry-wide trend." However, Terry was happy to report that he has observed much greater stability in prices and some renewed interest in natural diamonds recently.

Addressing why the inclusion of color has been so rapid and seamless, Shah invoked an Indian fable which says, "when two cats fight, the monkey gets the bread." The core issue here, he says, is that people instinctively move away from conflict and towards stability. "Natural and synthetic colorless diamonds are fighting with each other. The colored stones had their conflicts with synthetics in the 1980s. It has passed. It is now an area of safety, and it is instinctual for people to go somewhere safe."

The second reason that contemporary designs feature colored gemstones is that they make designs more interesting visually, especially when viewed on a screen. In Shah's words, "colorless stones are just colorless. There is no variety, and it is hard to make something stand out. The human mind numbs to the same colors. I call it 'The Tuxedo Effect'. If you wear the same standard uniform with no color, no one sees you. For social media in particular, you need to show creativity and originality to be noticed."

Interestingly, Shah says that American culture is at the cutting edge in terms of adoption of color and unconventionality in general - "Americans are more willing to experiment with color. You have no rules. Your history is short compared to the rest of the world, so you don't have deeply ingrained habits."

Another thought regarding the addition of color, Shah said that natural fancy-colored diamonds remain a small part of the natural diamond market, but that the sector is growing. Interestingly, this interest may be a result of synthetic-colored diamonds. Previously, many buyers were not familiar with the rarer varieties of fancy-colored diamonds like pink and blue as their astronomical per-carat values made them entirely unattainable to all but the most wealthy. Now, growers are producing synthetic diamonds with vibrant shades, familiarizing the general public to their existence. Labgrown Box Inc., for example, grows synthetic diamonds of many colors, including pink - a hue that grower Khushi Vasoya says is very hard to reproduce uniformly. 

Nihar Savani of Akshar Impex explained that their natural pink diamonds are getting a lot of attention and said that he feels synthetic pinks still have not achieved a convincing natural appearance. Lavish Color Diam, Inc. similarly reports a great deal of interest in their natural colored diamond inventory.

There is a third option available - treated natural diamonds. Such stones are of natural origin, whose often bright colors are the result of some artificial treatment. This is just a small percentage of the industry, but it does exist and deserves to be mentioned.

An Unexpected Expense Connected To Synthetic Inventory

Shah spoke about profit margins for synthetic diamond sellers decreasing alongside decreasing prices. This is in spite of the fact that there are fewer people in the supply chain of synthetic diamonds who need to be paid than there are in the natural diamond industry. Yagnikkumar Pansuriya of Aashu Diamonds Inc. (IG aashu_diamonds_inc) had an interesting perspective regarding this issue. He said that in-store labor costs for synthetic diamond sellers are high partly because existing synthetic inventory must regularly be re-priced to accommodate the lowering of per-carat values. This further restricts profits. Benjamin Ahdout of International House of Platinum and the Sebastian Bernard design line put it simply - "As technology gets better, they will manufacture more diamonds more cheaply, faster, and of better quality. It will get to the point where there is almost no value attached to stones."

Strong Leadership is the Key to Meaningful Change

While individual jewelers have come up with tricks like mixing in colored gemstones to try and stabilize prices and demand for natural diamonds, Shah stressed that it is only with resolute global industry leaders that meaningful progress can be made to heal the market. He applauds Belgium and France for ensuring that synthetic diamonds are described differently than naturals. He also believes that the changes made in nomenclature by HRD Antwerp and, in the coming year, by the GIA, are important and meaningful changes that will greatly assist in educating buyers that the market for natural diamonds and synthetic stones is distinct from each other. Moving forward, Shah feels that progress would be greatly accelerated if more countries and international entities actively pressed for a separation of the marketplace. 

Conclusions

Reflecting on the last year, Shah is pleased by the important steps that have been taken to separate natural from synthetic diamonds and stabilize the market. The message that he feels still needs to be broadcast to buyers is that natural diamonds are a rare resource (the total yearly natural faceted product fits into a single exercise ball), and have inherent value. This value not only makes natural diamonds a good investment, but their purchase benefits all of the individuals who interact with gems from the initial mining to the ultimate sale to the consumer. In fact, as natural diamond deposits are mined out, gems will become even more scarce, and he feels that this will result in further increased value. Alternatively, synthetic diamonds are now being created in massive batches for ever diminishing costs. While the two types of gem share physical and optical properties, they are not the same material. 

Shah also expressed concern for companies that sell exclusively synthetic diamonds. With the decreasing production costs and per-carat values that continue to drop, their profit margins are becoming tighter. He observed that some of the synthetic diamond sellers who exhibited alongside him at JCK in 2024 are no longer in business.

With all things considered, Shah feels that the industry as a whole is in a much better place than last year, and he predicts more progress to be made. He also feels that the addition of color to diamond jewelry is a trend that is here to stay; "I am optimistic that the natural diamond market will recover. At the same time, it is a good moment to invest in the colored gems market. They may help the natural diamond market to recover."