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      Natural Diamond Prices Plummet as Lab-Grown Alternatives Surge

      Natural diamond prices have reached their lowest levels in over two decades, with wholesale values dropping 30-40% from their peaks in 2021. Retail prices for a standard 1-carat natural round diamond now range between $3,530 and $3,860. This decline is attributed to a combination of oversupply, weakening demand, and a significant influx of lab-grown diamonds, which are chemically identical to natural stones but priced 70-85% lower.

      Lab-grown diamond prices have experienced an even steeper decline, plummeting more than 75% since 2022. In the first half of 2026, exports of lab-grown diamonds from China surged by 65.3% year-on-year, contributing to a market environment where the perceived value of mid-tier natural diamonds is under pressure. Only the largest and highest-quality natural stones have maintained their value amid this turmoil.

      The impact of these trends is particularly severe for mining economies like Botswana, where Debswana, a joint venture between De Beers and the Botswana government, has reported significant sales declines. This situation poses a fiscal crisis for a country that has historically relied on diamond mining as a cornerstone of its economy. Meanwhile, Bitcoin has seen a contrasting rise, highlighting the differences in fungibility and market perception between these two asset classes.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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