Navigating the Evolving Landscape of Lab-Grown Diamond Valuation

Q2 2026 Price Dynamics: A Shifting Landscape for Lab-Grown Diamonds

According to the latest Q2 2026 wholesale price assessment for lab-grown diamonds, a notable 13% decrease was observed over the past year. However, this downturn was not uniformly distributed across all diamond sizes and shapes.

Dissecting the Price Drop: Larger Stones Bear the Brunt of Declines

The most substantial price reductions were recorded for larger diamonds, a segment that traditionally commanded the highest wholesale profit margins. This exposure made them particularly susceptible to downward pressure from both retail markets and consumer expectations for lower prices.

Current Trends: Declines in Larger Carats, Stability in Smaller Sizes

This trend of decreasing prices for larger lab-grown diamonds continues. For instance, wholesale prices for round lab-grown diamonds weighing between 1.50 and 1.99 carats saw an 11% decline year-over-year, while 2-carat round stones experienced an even sharper 20% drop. In contrast, 1-carat round diamonds actually observed a modest 1% increase in their wholesale value.

Long-Term Perspective: The Consistent Downward Trajectory of the LGD Index

Since its inception in July 2018, the Lab-Grown Diamond (LGD) Wholesale Price Index has demonstrated a significant cumulative decline of 96%, reflecting a prolonged period of price adjustments within the market.

Beyond Rounds: Varied Performance in Fancy and Square Cuts

Prices for fancy-shaped diamonds, including hearts, marquises, ovals, and pears, experienced even greater reductions than their round counterparts, averaging a 17% decrease in wholesale value. Similar to round diamonds, larger fancy shapes saw more pronounced price drops.

Significant Reductions in Square Shapes and High Clarity Stones

Square-shaped lab-grown diamonds witnessed a decline exceeding 21% over the past year. Some specific size ranges within VVS clarities faced even steeper decreases, falling by more than 25% when compared to the second quarter of 2025.

Market Implications: The Interplay of Price, Demand, and Supply Chain Pressures

Current retail data indicates that reduced pricing tends to stimulate demand in terms of unit sales, whereas price stability correlates with relatively consistent sales volumes. A critical unknown factor is the recent surge in raw lab-grown diamond prices. This increase could eventually influence polished diamond prices at both wholesale and retail levels. However, it will take several months to ascertain whether these higher costs will be absorbed throughout the supply chain or if they will be met with resistance from consumers.

Strategic Imperatives: Aligning Offerings with Consumer Willingness to Pay

For the immediate future, success hinges on retailers' ability to offer products that align with price points consumers have already shown a readiness to accept, rather than venturing significantly above or below these established thresholds.

Understanding the LGD Wholesale Price List: Evolution and Methodology

First introduced in October 2018, the LGD Wholesale Price List was developed to address the industry's need for a reliable benchmark in lab-grown diamond wholesale pricing. Initially, it monitored transactional prices for lower-priced, uncertified loose lab-grown diamonds from polishers. As the market matured, the list evolved to track transactional prices for larger, certified lab-grown diamonds of superior craftsmanship, based on smaller volume purchases. Currently, most lab-grown diamonds weighing two carats or more are produced using the CVD method, while smaller stones include both CVD and HPHT growth methods, with HPHT diamonds typically selling at a discount.

Data Foundation: Cash Transactions and IGI Certification

The pricing data for this list is derived from cash transactions conducted in Mumbai and Surat for IGI-certified goods. It's important to note that these prices do not include shipping, insurance, or import duties.