Diamonds in the Rough Times are Tough for Sparkly Rocks Thanks to Tariffs and Lab Grown Bling

Shiny Rocks Shady Deals

Alright folks Saul Goodman here your friendly neighborhood attorney (at law!) and let me tell you things are getting dicey even for someone who knows how to 'handle' things. Turns out even those sparkly rocks we all love – diamonds you know the ones that scream 'I Do' or 'I'm loaded' – are in a bit of a pickle. This Trump guy slapped a potential 10% tariff on those shiny pebbles. Now I'm no economist but even I know that's gonna sting! Karen Rentmeesters from the Antwerp World Diamond Centre bless her heart calls it a 'perfect storm.' And you know what happens in storms right? People get soaked. And usually need a lawyer. Like yours truly.

From Botswana to Your Finger…Via a Whole Lotta Trouble

So these diamonds see they got a whole lotta baggage before they even get to your finger. They're mined in some far flung places like Botswana or South Africa then they bounce around trading hubs in the Middle East or Europe. It is like laundering money but with extra steps! They get cut polished and finally end up in some fancy jewelry store. All this travel makes 'em super vulnerable to any trade hiccups. And let me tell you a tariff is a pretty big hiccup! Gold and copper are getting a pass but these rocks? Nope! They're getting the Saul Goodman treatment…and not in a good way.

Fake It 'Til You Make It…With Lab Grown Diamonds

But wait there's more! As if tariffs weren't bad enough these lab grown diamonds are stealing the show! They're chemically the same look identical to the real deal and are selling at a massive discount. Think 80% off! Folks are eating 'em up. Half the couples in the US are rocking these fake rocks in their engagement rings. Even Pandora that jewelry giant is ditching the mined diamonds. It is like switching from a Cadillac to a Hyundai! Their CEO Alexander Lacik says these lab grown diamonds are gonna bring more people into the diamond game. Sounds good right? Unless you're sitting on a pile of mined diamonds. Then you're probably thinking 'Better Call Saul!'

Diamond Prices are Plummeting like Jesse After a Binge

The price of mined diamonds has taken a dive since March 2022. This is due to all the shenanigans! I mean these tariffs and competition from these laboratory diamonds are making the fancy rocks less shiny. An analyst says the prices might be stabilizing soon though. I think consumers need to see the difference between the diamond products. I think that if customers want to spend more money for a natural diamond they need to know it is a natural diamond. They need to be sure!

De Beers is Digging in Their Heels and Sticking with Real Rocks

Now De Beers they're doubling down on real diamonds like Walter White sticking with his blue meth. They are closing their lab grown diamond business. This is their way of saying they believe in the real stones. Their CEO Al Cook says that the cheap value of the lab grown diamonds is causing customers to see a difference between the real diamonds and the lab created diamonds. It looks like the business is trying to streamline itself. Maybe they need a lawyer… someone who knows how to… streamline things.

The Future is Still Shiny (Hopefully)

Even with the rough patches analysts say people still love the story behind the diamonds how they were created. One of the analysts says people love the emotional value behind the diamonds. I think the industry needs to get that message out to the people. They need to make sure consumers know they are buying the real rock. Of course if they need help spinning that yarn Saul Goodman is always open for business! After all as I always say 'If you’re committed enough you can make any story work. I once convinced a jury that a chihuahua was my grandmother.' Just kidding! ...mostly.