Office Hours: The Lab-Grown Diamond Boom, Investment in Women’s Sports, and Deciding Whether to Quit Your Job

Lab-Grown Diamonds

The rise of lab-grown diamonds is reshaping the diamond market, offering consumers a cost-effective alternative to traditional diamonds. Scott Galloway highlights that lab-grown diamonds are chemically identical to natural ones but are sold at a fraction of the cost, with global sales reaching $12 billion in 2022, a 38% increase from the previous year 1. This surge in popularity is driven by mainstream retailers like K Jewelers and luxury brands such as Gucci integrating lab-grown diamonds into their collections. However, these diamonds do not appreciate in value, selling at an 80% discount compared to natural diamonds 1.

Lab-grown diamonds sell at an 80% discount compared to natural diamonds.

--- Scott Galloway

Despite their affordability, the lack of value appreciation remains a significant downside for lab-grown diamonds.

   

Traditional Diamonds

Traditional diamonds, despite facing competition from lab-grown alternatives, maintain a unique value proposition due to their scarcity and historical significance. Scott Galloway explains that the demand for natural diamonds is declining, with prices down 18% from their peak in February 2022 2. However, the intrinsic value of naturally formed diamonds, which take millions of years to create, continues to hold strong.

The truly fine, naturally grown diamonds that took millions of years for carbon and pressure and heat to create will always have value.

--- Scott Galloway

This enduring value is attributed to their rarity and the perception of diamonds as a symbol of love and commitment, a narrative heavily marketed by industry giants like De Beers.