Only Natural Diamonds Are Real for the U.S. Consumers: DPA Survey

New survey results released by the Diamond Producers Association (DPA) and The Harris Poll demonstrate that a clear majority of Americans recognize that diamonds created in a factory (also known as “synthetic” or “laboratory-grown”) are not “real” diamonds. Nearly seven in ten (68 per cent) made such a distinction with a significant majority saying synthetic diamonds are not real because they are not “natural,” nor “from the earth,” or because they are made by people. Few Americans (16 per cent) said that a diamond created in a factory is “real.”

Consumers described real diamonds as “genuine,” “natural” and “authentic.” They called laboratory-grown diamonds “man-made,” “artificial” and “imitation.”

“Diamonds are billion-year-old treasures of the Earth that came to us very, very slowly, which makes them uniquely meaningful in today’s on-demand world,” said DPA Chief Executive Officer Jean-Marc Lieberherr. “At a time when everything ‘artificial’ aims to compete with, and replace, ‘natural’ and ‘real,’ these results show consumers care about the inherent value, authenticity and symbolism that a diamond carries.”

Added Mr. Lieberherr, “These results are important, and confirm what our consumers tell us: ‘Real Matters’—a perspective shared across generations and one that cannot be replicated in a matter of weeks. The makers of synthetic diamonds calling their products ‘real’ not only goes against the spirit of existing terminology standards, in opposition of consumer belief, but they are also creating confusion in the marketplace.”

The new survey adds to the DPA’s much larger body of research, which aims to help the industry better understand consumers, trends and perceptions around diamonds. On behalf of DPA, 360 Market Reach conducts a national survey on “Diamond Attitudes and Usage” every six months with the U.S. millennials who have acquired a diamond over the prior 24 months. Among these consumers, consideration of synthetic diamonds has remained stable over the last year, at 70 per cent. However, since the last survey, a diminishing number of consumers would consider synthetic diamonds for milestones such as engagements, birthdays or the birth of a child, “pointing to a growing consumer realization that synthetic diamonds lack value,” said Mr. Lieberherr.

The implications of both studies, in combination with independent diamond industry analyst Paul Ziminsky’s latest findings – that prices of laboratory-grown diamonds have been falling rapidly and that the price differential between a 1.0 carat laboratory-grown and natural diamonds has increased by 71 per cent over the last year – is clear. “Laboratory-grown diamonds are already distinguished from natural diamonds in terms of their origin, impurities and growth structures, and their financial and emotional worth. Simply put, they will never deliver on the promise of a real diamond precisely because they are not natural. And now we are witnessing their separation from diamonds in the marketplace as they find their inevitable place in the fashion jewelry market,” said Mr. Lieberherr.

Of further note, while the price of laboratory-grown diamonds has been falling, demand for natural diamonds in the US reached an all-time high in 2017, climbing to $43 billion, up 4 per cent from last year, as was  announced by De Beers Group on May 17, 2018. Over roughly the same period, Ziminsky’s latest research also notes that the price of a 1.0 carat natural diamond increased by 5 per cent, demonstrating healthy dynamics and strong consumer desire for diamonds.

Conducted May 3-7, the DPA-Harris Interactive poll surveyed a nationally representative sample of 2,000 people.