Lab-Grown vs. Mined Diamond Price Trends in Recent Years
Over the past few years, lab-grown diamond prices have declined sharply due to rapid advances in production and increasing supply. Retail prices for lab-created stones have fallen dramatically. For example, the average price of a one-carat lab-grown diamond dropped from about $3,410 in January 2020 to only around $900 by December 2024, a decline of roughly three-quarters. This steep drop reflects how quickly lab-grown gems have lost their rarity premium—today they can be grown in days and in high volume, driving prices down.
In contrast, natural (mined) diamonds have also softened but to a lesser extent. After a pandemic-era boom, mined diamond prices peaked in mid-2022 and then fell roughly 25–30 per cent by late 2024. High inflation and waning demand (fewer weddings, economic uncertainty) have pressured natural diamond prices, but the biggest factor has been competition from cheaper lab-grown stones.
The table below compares recent price movements for mined versus lab-grown diamonds:
| Price Metric (2019–2024) | Natural Diamonds | Lab-Grown Diamonds |
|---|---|---|
| Peak price & date (1 carat) | ~$6,800 in mid-2022 | Peaked earlier; on continuous decline |
| Price in Dec 2024 (1 carat) | ~$5,000 | ~$900 |
| Price change over recent peak period | −26 % | −74 % |
| Lab-grown price as % of natural price (2024) | — | ~18 % (as low as ~7 % for 3-carat stones) |
Even mined diamonds have shown volatility in recent years—a departure from the traditional “diamonds are forever” idea of steady value. Lab-grown diamonds now command roughly a 90 per cent discount relative to natural diamonds, a striking change from the mid-2010s when prices differed by only about 10 per cent.
VRAI’s Bitcoin Diamond™ – Structure and Concept
VRAI (the consumer brand of Diamond Foundry) has launched the world’s first Bitcoin-backed diamond, known as the VRAI Created Bitcoin Diamond™. This product is essentially a lab-grown diamond bundled with Bitcoin, uniting a physical symbol of love with a digital asset.
The purchase price mirrors that of a mined diamond of the same size and quality. The difference between that market price and the lower production cost of the lab-grown stone is automatically used to purchase Bitcoin on behalf of the customer. That Bitcoin is held in a regulated custody account and recorded on the diamond’s certificate, ensuring traceability. Owners can redeem the Bitcoin value at any time by returning the diamond and its certificate to VRAI. A unique GemPrint optical fingerprint ties each diamond to its corresponding digital asset.
The diamond itself is produced sustainably in proprietary plasma reactors that transform greenhouse gases into gem-quality stones within roughly four weeks, powered entirely by renewable energy. By linking the timeless symbolism of a diamond with Bitcoin’s scarcity and growth potential, VRAI aims to deliver an asset that is both emotionally significant and a true store of value.
Impact of Diamond Price Volatility on the Bitcoin Diamond’s Value
The volatility in lab-grown diamond prices directly affects how customers perceive and realize value in VRAI’s Bitcoin Diamond.
The VRAI Bitcoin Diamond™ component serves as a hedge or counterweight to that depreciation. Customers effectively lock in the value difference as Bitcoin at the time of purchase, so if the lab-grown stone loses value, Bitcoin’s potential growth may offset the decline.
A continuing fall in lab-grown diamond prices could actually strengthen the product’s appeal. Buyers might be reassured that a significant portion of what they paid is sitting in Bitcoin, an independent and potentially appreciating asset. On the other hand, if lab-grown diamond prices continue to fall rapidly, future buyers of Bitcoin Diamonds may receive a larger Bitcoin allocation for the same price, creating a perception of opportunity cost for earlier purchasers.
If lab-grown diamond prices were to rise or if natural diamond benchmarks were to drop, the dynamics would shift. A narrowing of the price gap would mean a smaller Bitcoin allocation or a lower overall ring price. Early buyers who secured a larger Bitcoin reserve during times of cheaper lab-grown pricing might have better value.
Bitcoin itself introduces its own volatility. The cryptocurrency can undergo steep drawdowns but also long-term appreciation. If Bitcoin’s price drops sharply after the purchase, the total combined value of the Bitcoin Diamond will fall accordingly. Conversely, if Bitcoin surges, the Bitcoin Diamond’s value could appreciate well beyond the original purchase price.
In short, the Bitcoin Diamond’s worth is a balance of two volatile elements: the lab-grown diamond market and the cryptocurrency market. This pairing is designed to stabilise or even enhance long-term value compared to a stand-alone lab-grown diamond, which typically depreciates.
Customer Advantages and Risks of VRAI’s Pricing Structure
Advantages
- Value retention and upside: A portion of the purchase is converted into Bitcoin, an asset that has historically shown strong long-term growth, offering potential appreciation well beyond what a traditional diamond ring might provide.
- Hedge against diamond depreciation: The Bitcoin component can cushion the financial impact of further declines in lab-grown diamond prices.
- Emotional and symbolic appeal: Combining the permanence of a diamond with a modern digital asset creates a meaningful narrative for tech-savvy couples.
- No additional cost premium: VRAI does not add a markup for the Bitcoin purchase; customers effectively receive a Bitcoin investment at the same total price as a comparable mined diamond ring.
Risks
- Bitcoin volatility: The digital asset can fluctuate sharply, which means the ring’s combined value can rise or fall quickly.
- Redemption caveat: Accessing the Bitcoin value requires returning the diamond and certificate, which may be an emotional or logistical barrier.
- Loss or theft implications: Does losing the ring mean losing access to the Bitcoin value unless protected by insurance or company safeguards? Surely, their term and condition should define that situation. The company’s representative commented ” In the case of loss or theft of a VRAI Created Bitcoin Diamond™, VRAI will still make the possibly appreciated bitcoin value available to the customer. The customer need only submit a certificate of loss to VRAI along with a police report filed and the customer can then use their Bitcoin value in US dollars to obtain replacement VRAI created diamonds or jewelry from VRAI. And in the case of inheritance, a customer’s legal heirs may retrieve the value in the same way as the original purchaser upon loss [or return]“
- Market perception and resale: The resale market is untested. Future buyers may not fully value the Bitcoin component, or they may prefer to redeem the Bitcoin directly.
- Opportunity cost and simplicity: Savvy customers might question whether buying a less expensive lab-grown ring and purchasing Bitcoin separately would provide greater flexibility.
Broader Implications for Luxury and Asset-Backed Models
The Bitcoin-backed diamond signals a potential shift in the luxury market toward asset-backed products:
- Redefining “store of value”: Luxury goods could increasingly combine emotional appeal with investment-grade backing, changing the perception of high-end purchases.
- Appealing to crypto-affluent consumers: Wealth holders familiar with cryptocurrency may view such hybrid products as a natural evolution of luxury.
- Balancing risk and innovation: This model introduces investment-like elements into consumer goods, raising questions about regulatory oversight and long-term trust.
- Sustainability and ethics: The concept complements the growing demand for sustainable and ethically produced jewellery while aligning with technological innovation.
- Market education: As more luxury products integrate digital assets, both retailers and consumers will need deeper financial and technical literacy.
Conclusion
VRAI’s Bitcoin-backed diamond responds to a critical market challenge: the rapid depreciation of lab-grown diamonds. By combining a physical gem with a digital asset, the company creates a product that is not only beautiful but potentially retains or even grows in value. This pioneering concept may inspire a new category of luxury goods that merge emotional significance with investment potential, reshaping how consumers think about enduring value.
