Natural Diamonds Are Losing Gen-Z

The discussion between Avi and Matt Gabel of jewelry advisory firm MJ Gabel examined how younger consumers are reshaping the diamond market through their growing embrace of synthetics. The conversation underscored the structural and cultural shifts now redefining both product perception and the retail landscape.

These were the key themes that emerged from the debate:

Affordability

Price, accessibility, and perceived sustainability of synthetics outweigh the legacy appeal of natural diamond. Even older consumers are now buying lab-grown fashion pieces, reflecting a broad shift toward affordability and convenience.

Value, Price and Perception

Natural diamonds still hold long-term value, but most buyers focus on short-term cost. Synthetics prices have collapsed at wholesale, and declined at a slower pace at retail, yet consumers remain drawn to their size-for-price advantage. The traditional “diamonds hold value” argument has lost traction with younger shoppers.

Storytelling Deficit

The natural diamond industry’s narrative about rarity, symbolism, and heritage no longer resonates. Gen-Z responds to authenticity and individuality rather than perfection or status. Natural diamonds need a refreshed story that celebrates imperfection as uniqueness and positions each diamond as one-of-a-kind.

Social Media and Influence

Social platforms fuel aspiration but also commoditization. The Taylor Swift engagement ring, which served as a natural-diamond success story, was instantly replicated in lab-grown form. Gen-Z seeks the look of luxury at accessible prices, blurring lines between authenticity and imitation.

Return to Meaning

Amid digital noise and sameness, consumers may pivot back to products with emotional substance. The individuality and permanence of natural diamonds can meet that desire if the industry makes an intentional, values-driven appeal.

Retail and Market Dynamics

Buying patterns have changed. More couples are purchasing the engagement ring together, while lab-grown is popular for female self-purchases. Retailers, not miners, hold the key to reframing value and trust at the point of sale. The sector must also navigate direct-to-consumer pressure, squeezed margins, and an overcrowded online marketplace.

The Role of Luxury

High-end houses like Tiffany and Cartier still define the aspiration and “sex appeal” of natural diamonds. Their storytelling power offers a model for how the broader market can restore desirability.

Watch the full debate in the video above.