Diamond Returns Volatile as De Beers' Control Declines and Lab-Grown Diamonds Emerge
-
Diamonds have historically offered steady returns for investors due to controlled supply and steady demand.
-
Recently, returns have become volatile as De Beers' market share has declined and lab-grown diamonds have emerged.
-
De Beers is trying to boost demand and differentiate mined diamonds via marketing campaigns.
-
Lab-grown diamonds are now 20-30% the price of mined ones, so their increasing supply lowers overall diamond prices.
-
De Beers' declining control of supply means they can no longer smooth out diamond price fluctuations.