Why diamond prices are falling so fast
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Think about these questions before watching.
- Have you ever chosen a more affordable, man-made alternative over a traditional, natural product, especially for something significant like a gift or a personal item? What were your reasons?
- When you think about luxury items or special gifts, what factors usually contribute to their perceived value? Is it the material, the brand, the rarity, or something else entirely?
- Beyond price and appearance, how important are ethical sourcing and environmental impact to you when considering a major purchase? Can you give an example of a product where these factors might influence your choice?
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You only need to watch the highlighted section below — the exercises focus on this part.
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Answer these questions in your own words. Support your answers with evidence from the video.
01What is the primary reason for the significant drop in natural diamond prices, according to the video?
Sample answerThe video states that the main reason for the big drop in natural diamond prices is the huge increase in popularity of lab-grown alternatives, which are much cheaper and have surged in the market.
02How are lab-grown diamonds created, and what impact have they had on U.S. engagement ring sales?
Sample answerLab-grown diamonds are made by placing small diamond seeds into a vacuum chamber with carbon-rich gases, then applying controlled heat and pressure. This process has led to a major shift in sales; by 2026, lab-grown stones accounted for 61% of all U.S. engagement ring sales.
03Beyond the rise of lab-grown diamonds, what other challenges are forcing major players in the natural diamond industry to adapt, and how has De Beers Group responded?
Sample answerIn addition to lab-grown diamonds, the natural diamond industry faces challenges like geopolitical uncertainty, too much inventory of polished diamonds, and higher tariffs on imports from India. De Beers Group, for example, paused production at its Venetia mine for over two years to cut costs and even launched its own lab-grown brand, Lightbox, which later closed down.
04In what way does the video challenge the traditional idea of a diamond as a financial investment, and what is the ultimate benefit for consumers from the current market situation?
Sample answerThe video challenges the idea that diamonds are a financial investment by stating that you don't get much value back on either lab-grown or natural diamonds. The ultimate benefit for consumers is that diamonds are now more affordable, allowing them to buy larger stones and save money for other important things like their wedding or a house.
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Vocabulary
Vocabulary
These expressions will help you communicate more naturally about this topic.
Examples
disrupt the market — to significantly change the way an industry or market operates, often by introducing new products or services that challenge existing ones.
Usage note: This phrase is commonly used in business and economic discussions. It suggests a powerful, often sudden, change that forces established companies to adapt. For example, 'New technologies often disrupt the market.'
a shift in consumer preferences — a change in what customers want or choose to buy, often leading to a change in demand for certain products or services.
Usage note: This is a common phrase in marketing and economics. It implies a gradual but significant change in public taste or priorities. You might say, 'There's been a shift in consumer preferences towards sustainable products.'
a fraction of the cost — a very small part of the total cost; much cheaper.
Usage note: This phrase is used to emphasize a significant price difference, highlighting that something is considerably less expensive. It can also be used with other nouns, like 'a fraction of the time' or 'a fraction of the effort'.
undermine the value — to gradually make something less strong, effective, or valuable, often by reducing its perceived worth or importance.
Usage note: This expression suggests a subtle but damaging effect on something's worth or reputation. It's often used when discussing how new alternatives might lessen the appeal of traditional items. For example, 'The availability of cheaper alternatives could undermine the value of luxury goods.'
at a crossroads — at a point where an important decision must be made, or a significant change is about to happen, often affecting future direction.
Usage note: This is an idiomatic expression, often used for individuals, companies, or industries facing a crucial choice about their future path. It implies a moment of uncertainty and potential transformation. For instance, 'The industry is at a crossroads, needing to adapt to new technologies.'
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Complete the sentences with words from the box. One word is extra.
Word bank
01The sudden rise of lab-grown diamonds threatens to for traditional jewelers.
02The increasing demand for sustainable products indicates towards more ethical purchasing.
03Many people are now choosing lab-grown gems because they offer similar beauty for of natural ones.
04Some argue that the abundance of cheaper alternatives could of natural diamonds in the long run.
05With new technologies emerging, the entire diamond industry finds itself regarding its future direction.
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Use the word in brackets to form a new word that fits each gap.
01
The sudden of new technologies can completely change established industries.
02
There has been a noticeable among consumers for ethically sourced products.
03
Many consumers are attracted to products that offer a cost compared to traditional options.
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Some worry that an oversupply of goods could the perceived worth of luxury items.
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Businesses facing rapid market changes need to make moves to stay relevant.
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The increasing landscape forces companies to innovate constantly.
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Grammar: Expressing concession and contrast
Grammar
When we want to show a surprising or unexpected result, or highlight a difference between two ideas, we use words and phrases of concession and contrast. These structures help us connect ideas logically and express more complex relationships between them, which is essential for discussing nuanced topics like market changes.
Examples
Although lab-grown diamonds are chemically identical to natural ones, their market value is significantly lower.
Use 'although', 'even though', or 'though' followed by a clause (subject + verb) to introduce a contrasting idea.
Despite the rapid increase in popularity of lab-grown diamonds, many consumers still prefer natural stones for their symbolic value.
Use 'despite' or 'in spite of' followed by a noun phrase or a gerund (-ing form) to express a similar contrasting idea.
The price of natural diamonds has plummeted; however, the demand for high-quality, rare gems remains strong.
'However' is a conjunctive adverb used to connect two independent clauses, showing contrast. It typically follows a semicolon or a full stop.
While lab-grown diamonds offer an affordable alternative, natural diamonds carry a unique history and provenance.
'While' can be used to show contrast between two facts or ideas, often implying a direct comparison, similar to 'whereas'.
Key points
- Use 'although', 'even though', 'though' + clause (subject + verb).
- Use 'despite', 'in spite of' + noun phrase or gerund (-ing form).
- 'However' and 'nevertheless' connect two independent sentences, often separated by a semicolon or period.
- 'Whereas' and 'while' are useful for direct comparisons of contrasting information.
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Rewrite each sentence using the structure indicated to express concession or contrast.
01Lab-grown diamonds are much cheaper, but they still offer the same quality and appeal.
Rewrite the sentence, starting with 'Despite'.
Hint: 'Despite' is followed by a noun phrase or a gerund (-ing form).
02Natural diamonds have been a symbol of status for centuries. Many consumers are now showing a clear preference for lab-grown alternatives.
Combine the sentences using 'Although'.
03The traditional diamond industry finds itself at a crossroads. It is still reluctant to fully embrace the potential of lab-grown gems.
Combine the sentences using 'however'.
04Lab-grown diamonds are available at a fraction of the cost. Some purists argue that this might undermine the perceived value of all diamonds.
Rewrite the sentence, starting with 'In spite of'.
Hint: 'In spite of' is followed by a noun phrase or a gerund (-ing form).
05The rapid growth of lab-grown diamonds has significantly disrupted the market. Many established jewelers are now adapting their business models.
Combine the sentences using 'Even though'.
06The video explains the economic factors behind falling diamond prices. It also highlights the changing ethical considerations for consumers.
Combine the sentences using 'While' to show contrast.
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Sort each item into the correct category.
Expressing concession
Expressing direct contrast
The natural diamond industry emphasizes tradition; in contrast, the lab-grown sector highlights innovation.Some consumers prioritize ethical sourcing; on the other hand, others are primarily concerned with price.In spite of efforts to promote natural diamonds, the popularity of lab-grown alternatives continues to rise.Although lab-grown diamonds are a fraction of the cost, they share the same chemical properties.The traditional diamond market is at a crossroads, even though it has adapted to changes before.Demand for natural diamonds is decreasing; however, the market for lab-grown gems is expanding rapidly.One type of diamond is seen as an investment, while the other is viewed as a fashion accessory.The new technology has the potential to disrupt the market; nevertheless, established brands are resisting.The cost of natural diamonds can undermine the value of lab-grown ones, but the reverse is also true.Despite the significant shift in consumer preferences, some still value the rarity of natural diamonds.Natural diamonds are mined from the earth, whereas lab-grown diamonds are created in a factory.While the price of natural diamonds has fallen, their perceived value remains high for some buyers.
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Words to take with you
Vocabulary
These expressions are not in the video but will help you discuss this topic more fluently.
Examples
market dynamics — the forces that influence prices and the behavior of producers and consumers in a market.
Use this phrase when talking about the underlying reasons for changes in a particular industry. For example: "Understanding the current market dynamics is crucial for any business to succeed."
perceived value — the worth that a customer believes a product or service has, often influenced by factors beyond its objective cost or quality.
This is useful when discussing why people choose one product over another, even if they are objectively similar. For example: "The perceived value of a brand often plays a bigger role than its actual cost."
to gain traction — to become popular or accepted, especially after a period of limited success.
Use this verb phrase when describing how a new product, idea, or trend is becoming more widely adopted. For example: "Lab-grown diamonds are really starting to gain traction with younger buyers."
a saturated market — a market in which there is more supply than demand, leading to intense competition and often lower prices.
This noun phrase describes a market where there are too many products or suppliers, making it difficult for new ones to succeed or for existing ones to maintain high prices. For example: "The smartphone market is quite saturated, making it hard for new brands to enter."
to weather the storm — to successfully deal with a very difficult period or situation.
This idiom is perfect for discussing how companies or industries manage to survive challenging economic times or significant changes. For example: "Many traditional retailers are struggling to weather the storm of online competition."
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Match each word on the left with its natural partner on the right.
A
B
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Useful phrases: Discussing market trends and business challenges
Vocabulary
In today's fast-changing world, understanding and discussing market trends is crucial. These phrases will help you articulate observations, express concerns, and talk about the challenges businesses face when new products or consumer behaviours emerge.
Examples
''It seems like the [industry/market] is really undergoing a significant transformation, doesn't it?'' — This phrase helps you open a conversation about broad changes you've noticed.
Register: Neutral. Use when you want to initiate a discussion about current market shifts or trends you've observed, inviting the other person's opinion.
''I think we're seeing a clear shift in consumer preferences towards [X].'' — Use this to state an observation about changing customer demands or buying habits.
Register: Neutral. This is useful when you want to explain why certain products or services are gaining or losing popularity.
''The emergence of [new product/technology] is really starting to disrupt the market.'' — This phrase describes how a new factor is significantly changing an industry's established way of operating.
Register: Neutral/Slightly formal. Use when discussing how innovation or new competitors are challenging existing businesses and their models.
''This trend could really undermine the value of traditional [products/services].'' — Use this to express concern about the potential negative impact on existing offerings or established practices.
Register: Neutral/Slightly formal. This is appropriate when discussing how new developments might devalue or weaken established products or practices.
''Many businesses in this sector are finding themselves at a crossroads right now.'' — This highlights a critical decision point or a period of uncertainty for an industry or company.
Register: Neutral. Use when discussing the difficult choices or strategic re-evaluations companies face due to significant market changes.
''The fact that [alternatives] are available at a fraction of the cost is a game-changer.'' — This phrase emphasizes the significant impact of a much lower price point on the market.
Register: Neutral/Slightly informal. Use when highlighting how a drastic price difference is influencing market dynamics or consumer choices.
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Choose the best answer based on what you heard in the video.
01What is the primary reason for the significant drop in natural diamond prices?
02According to the video, what market share did lab-grown diamonds achieve in U.S. engagement ring sales by 2026?
03What action did De Beers Group take in response to market changes and challenges?
04Which of the following is NOT mentioned or recommended in the video?
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The sparkling dilemma: natural versus lab-grown diamonds
Read the passage below, then answer the comprehension questions.
The traditional diamond industry finds itself at a crossroads. For centuries, natural diamonds were synonymous with luxury and enduring value, often seen as an essential part of significant life events. However, the emergence of lab-grown diamonds has dramatically disrupted the market. These man-made alternatives, identical in chemical and physical composition, are available at a fraction of the cost, making them increasingly appealing to a new generation of buyers.
This shift in consumer preferences is undeniable. Many consumers, especially younger ones, are not only drawn to the lower price point but also to the perceived ethical advantages of lab-grown stones. Although some purists argue that only natural diamonds possess true rarity and emotional depth, the widespread availability of affordable, conflict-free options threatens to undermine the value proposition of their mined counterparts. The industry is grappling with how to differentiate its product and maintain its allure, even as the definition of "precious" continues to evolve.
01According to the passage, what is a primary reason for the growing appeal of lab-grown diamonds?
Sample answerLab-grown diamonds are available at a fraction of the cost compared to natural diamonds, and many consumers also appreciate their perceived ethical advantages.
02How has the rise of lab-grown diamonds affected the traditional diamond market?
Sample answerThe rise of lab-grown diamonds has dramatically disrupted the market and threatens to undermine the value proposition of mined diamonds due to a shift in consumer preferences.
03What does the passage imply about the future challenges for the traditional diamond industry?
Sample answerThe passage implies that the traditional industry needs to find new ways to differentiate its product and maintain its appeal, as the definition of what makes a diamond 'precious' is changing. They are 'at a crossroads' and must adapt.
04The passage states that the traditional diamond industry 'finds itself at a crossroads.' What does this idiom suggest about its current situation?
Sample answerThis idiom suggests that the industry is at a critical point where it must make important decisions or undergo significant changes to determine its future direction, especially concerning how it competes with lab-grown alternatives.
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The changing landscape of the diamond industry
The market for diamonds is undergoing significant changes. Read the passage below about the challenges and shifts in this industry.
Fill in each blank with the correct word or phrase from the word bank.
Word bank
The traditional diamond industry is currently facing unprecedented challenges. The emergence of high-quality, lab-grown alternatives, available at the cost of their natural counterparts, has begun to significantly the market. This development reflects in consumer preferences, with many buyers now prioritizing ethical sourcing and affordability over traditional notions of rarity. While some argue that this innovation makes diamonds more accessible, others worry it could the perceived value of natural stones. Consequently, the centuries-old industry now finds itself , needing to adapt quickly to these evolving dynamics to secure its future.
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Understanding market changes
Match each item on the left with the correct item on the right.
A
B
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Discuss these questions with a partner. Try to use vocabulary from the lesson.
- Do lab-grown diamonds truly undermine the value of natural ones?
- What products in your country show a shift in consumer preferences?
- Is buying items for a fraction of the cost always beneficial for consumers?