Lab-grown diamonds challenge traditional mined diamond industry.

The natural diamond industry is facing a decline in popularity due to the rise of lab-grown diamonds, which offer a similar sparkle for a fraction of the price. Lab-grown diamonds are produced above ground using chemicals and heat, replicating the process that creates mined diamonds. This shift in consumer preference is impacting the mining industry, including in Canada's North, where hundreds of people have been laid off at a diamond mine in the Northwest Territories.

The natural diamond industry is experiencing a significant decline in popularity due to the rise of lab-grown diamonds, which offer a similar sparkle for a fraction of the price. Lab-grown diamonds are produced above ground using chemicals and heat, replicating the process that creates mined diamonds. This shift in consumer preference is impacting the mining industry, including in Canada's North, where hundreds of people have been laid off at a diamond mine in the Northwest Territories.

According to Aret Oymakas, owner of Livia Diamonds in Toronto, natural diamonds made up 100 percent of his business until 2018 when lab-grown diamonds came on the market in a big way. Now, natural diamonds account for only three to four percent of his business [1]. The cheaper option is winning out, as consumers are more price-sensitive than ever. For instance, a two-carat real diamond engagement ring might cost $35,000, while a two-carat lab-grown diamond with the same clarity and color could be about $3,500 [1].

The technology used to make lab-grown diamonds has also improved dramatically since they first came onto the scene, allowing for more customizable stones. Additionally, ethical concerns surrounding the diamond mining industry have played a significant role in the shift towards lab-grown diamonds. The blockbuster 2006 movie "Blood Diamond" exposed many consumers to the realities of the diamond mining industry, and lab-grown diamonds do not carry the same ethical concerns [1].

The diamond industry launched a "Real is rare" campaign in 2016 to market real diamonds to millennials in a less traditional way, but the campaign did not pull them back to the mined variety. The idea of a mined diamond as "real" and a lab-grown one as fake just hasn't stuck with younger generations [1].

The decline in the natural diamond industry is having a significant impact on Canada's North, where thousands of people are directly employed in diamond mines in the Northwest Territories. The Ekati diamond mine, which the Point Lake mine is part of, was the first in the country when it opened in 1998. The closure of the industry in Canada's North would result in the loss of 1,500 direct jobs and many more indirect ones, plus an exodus of people from northern communities [1].

In conclusion, the rise of lab-grown diamonds is significantly impacting the natural diamond industry, leading to a decline in popularity and job losses in the mining industry, particularly in Canada's North. As consumers become more price-sensitive and ethically conscious, the demand for lab-grown diamonds is likely to continue to grow.

References:
[1] https://www.cbc.ca/news/business/lab-grown-diamonds-1.7592336