Losing its sparkle: can the natural-diamond industry survive?

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Money Talks from The Economist

2025-10-02

36 分钟
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De Beers built an empire by convincing the world that “a diamond is forever”. But the supply chain it once dominated is under pressure from cheap lab-grown diamonds that are chemically identical to the mined stones De Beers has been peddling for 140 years. Threats ranging from tariffs to the weakened Chinese economy stalk the diamond industry too, and the iconic De Beers business is now up for sale. So, is there still room for natural diamonds and the companies that sell them, in a world awash with man-made gems? Hosts: Mike Bird and Alice Fulwood. Guests: diamond-industry analyst Paul Zimnisky; and Alexander Lacik, CEO of Pandora. Transcripts of our podcasts are available via economist.com/podcasts. Listen to what matters most, from global politics and business to science and technology—subscribe to Economist Podcasts+.
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  • The Economist.

  • In the 1940s, De Beers had a problem.

  • The Great Depression a decade earlier had left it with vaults full of diamonds and almost no one who wanted to buy them.

  • If only there was a way to convince post-war America to embrace the stones.

  • The diamond engagement ring.

  • How else could two months salary last forever?

  • A diamond is forever.

  • De Beers.

  • The ad campaign worked.

  • In just a generation, popping the question without a diamond became almost unthinkable.

  • In Hollywood, gossip columnists wrote about lavish proposals and movie stars wore diamond jewelry on screen.

  • Diamonds are a girl's best friend.

  • But De Beers was more than just a smart ad campaign.

  • The company had a near monopoly on the supply of diamonds.

  • Diamonds were discovered in South Africa in the 1860s,

  • and by the early 1900s, one single company, De Beers, controlled about 90% of the world's production of rough diamonds.

  • But now, that business model is under threat from an almost perfect substitute.

  • We now offer lab-grown dream diamonds you can actually afford.

  • Discover real brilliance at fabulous prices.

  • Cheap lab-grown diamonds, chemically identical to mined stones,