Synthetics Storm, De Beers Stumbles, Luxury Slides

Avi Krawitz
Jul 29
4 min read

It seems the synthetics debate knows no bounds — it’s back front and center in industry conversations this week. I break down what I think the debate is really about in my latest video, where I unpack where we’re at and what’s actually happening in the lab-grown diamond market.

Watch here: Lab-Grown Diamonds in 2025: Disruption or Decline?

Also worth your time: this telling LinkedIn post by Stuart Samuels, president of New York-based Premier Gem, in which he describes synthetic diamonds as “parasitic” to natural diamonds — doubling down on remarks he made last week at the Initiatives in Art and Culture: Gold + Diamond Conference. The comments section is lively, to say the least. You might want to grab some popcorn.

One area where lab-grown diamonds are seen to be piggybacking off natural diamonds is grading — and there’ve been some significant shakeups there recently. Rapaport’s Leah Meirovich poses the question: Does the New Certification Stance Affect Lab-Grown Diamonds?

With synthetics dominating both industry concerns and headlines, marketing natural diamonds is widely seen as the solution. But what stories are we telling — and how effective are they? Are we really tapping into the full potential of our creativity?

Those are questions I’ve been asking myself for a long time. Which is just one of many reasons I was proud to collaborate with artist Reena Ahluwalia and three fellow trade journalists on the ‘Diamond Trails’ project. I truly believe it brings something fresh to the industry — and throws down the gauntlet for how we might rethink storytelling and marketing in the diamond space.

Check out my write-up here: Love Letters to Diamonds — I think it’s my favorite piece I’ve written this year.

Also, Hot Off The Diamond Press

This Week in Diamonds — Your latest industry news round-up.
Redefining Desire: How the Jewelry Consumer is Evolving — My latest piece for Solitaire International on shifting consumer trends.

Now, the Pressing Matters at hand.

>>> De Beers: 2Q Steady, But Outlook Still Murky

What should we make of the De Beers production and trading update that Anglo American released last week? On the surface, the second quarter numbers look solid: rough diamond sales rose 14% year-on-year to $1.19 billion, thanks to a 23% increase in the average price per carat to $174. That uptick came from stronger demand for higher-value stones, even as consolidated sales volumes slipped 7% to 6.8 million carats.

But the headline numbers don’t tell the full story. De Beers’ overall price index actually dropped 13% compared to a year ago, suggesting broader weakness in the market despite premium pricing for select goods.

Management tried to strike an upbeat note, saying that “improved industry sentiment at the end of the first quarter led to stabilization of polished diamond prices.” However, a single quarter of improvement doesn’t offset the weakness seen at the start of the year.

Despite the second-quarter stability, De Beers’ rough diamond sales fell 33% year-on-year to $1.71 billion in the first half overall. Anglo American warned that it expects to report negative underlying EBITDA for De Beers in its upcoming interim earnings report on Thursday.

De Beers maintained a cautious tone about the market. “Uncertainty surrounding US tariffs announced in April subsequently slowed polished trading,” the company said. While consumer demand for diamond jewelry held broadly steady in the first half, it wasn’t enough to offset the market drag from geopolitical jitters and uneven trading conditions.

All told, the relatively solid second quarter performance doesn’t change the broader picture. The diamond market remains under pressure—and De Beers is still struggling to regain momentum.

See my latest editorial: De Beers Inventory Gains, Political Strains

>>> LVMH Results Hint at Shift in Luxury Spending

LVMH reported a 4% decline in group revenue and a 22% drop in net profit, weighed down by an 8% fall in its core fashion and leather goods segment with rising trade tensions compounding the uncertainty. The results have intensified concerns that the slowdown in luxury spending may be more entrenched than previously expected, driven by changing consumer attitudes toward luxury in uncertain economic and geopolitical times.

There was relative stability in the group’s watches and jewelry division, home to brands such as Tiffany & Co., Bulgari, and Tag Heuer. Revenue from the unit dipped just 1% to €5.09 billion ($5.98 billion), though profit from recurring operations fell 13% to €762 million ($895 million), reflecting higher investment in Tiffany store renovations and increased marketing spend at Bulgari.

While the watches and jewelry segment showed some resilience, the broader results point to a tougher operating and consumer environment—one where even the strongest brands must differentiate more sharply and continually adapt how they engage with consumers.

Chart Check

Chow Tai Fook managed to slow its declines in the first fiscal quarter ending June 30, reporting a 1.9% drop in retail sales. Same-store sales also pointed to relative stability after more than a year of sharp declines. The company continued to streamline its operations, closing a net 307 points of sale during the quarter—bringing its total store count to roughly 1,200 fewer than a year ago. The results suggest that jewelers in Greater China may be finding their footing, having adjusted to a new baseline of softer consumer demand.

Coming Up

Don’t forget to sign up for session two of The Business of Jewelry Roundtable. As part of The Diamond Press community, you’re invited to join the conversation. [Learn more here]

Here’s what’s on my radar this week: