The natural diamond industry is accelerating efforts to strengthen consumer trust as it faces growing competition from lab-grown diamonds and persistent price declines. In a significant development, the Gemological Institute of America (GIA) acquired a 30% stake in Tracr, a blockchain-powered platform developed with support from De Beers Group to track the origin and journey of natural diamonds.
According to De Beers, the agreement demonstrates GIA’s confidence in the platform’s ability to expand traceability across the global diamond industry through a shared infrastructure. The initiative is expected to provide consumers with greater transparency regarding the sourcing and processing of diamonds while reinforcing the value proposition of natural stones.
Industry experts believe enhanced provenance tracking could help revitalize natural diamond sales. Lu Qi, an associate professor at the School of Gemmology at China University of Geosciences in Beijing, explained that the platform records critical information throughout a diamond’s lifecycle, including its origin, design details, cutting procedures, and polishing history.
Lu indicated that the system enables buyers to review the complete production journey of individual diamonds, which could improve consumer understanding and strengthen confidence in purchasing natural stones. However, the added traceability measures may also increase costs within the natural diamond supply chain.
Natural Diamonds Face Mounting Market Pressure
The traceability initiative comes at a challenging time for the natural diamond sector. Between 2022 and 2025, the IDEX Diamond Price Index, a widely followed benchmark for global diamond prices, declined from 158 to 86, representing a drop of more than 45%.
At the same time, advances in manufacturing technology have fueled rapid growth in the lab-grown diamond market. Many artificial diamond producers are concentrated in China’s Henan province, where large-scale production has significantly reduced prices.
In mainland China, a one-carat lab-grown diamond typically sells for approximately 3,500 yuan, or about $518, making it available at less than one-tenth the cost of a comparable natural diamond. Because the two products appear nearly identical to the naked eye, consumers increasingly view synthetic diamonds as a practical alternative.
According to data cited by state broadcaster CCTV, lab-grown diamonds accounted for more than 40% of global diamond jewelry sales last year, marking an eightfold increase compared with 2019 levels. Lu noted that lower prices and broader design choices have enabled lab-grown diamonds to capture a portion of the natural diamond market while expanding consumer options.
Consumer Preferences Remain Divided
The rise of synthetic diamonds has sparked ongoing debate among consumers regarding their role in engagement rings and other symbolic jewelry purchases. While some buyers view lab-grown diamonds as offering superior value, others continue to associate natural diamonds with greater prestige and emotional significance.
Discussions on social media have reflected these mixed sentiments, with some consumers expressing appreciation for the affordability of lab-grown diamonds while still feeling attached to the tradition of owning a natural stone.
Tracr’s Growing Industry Role
De Beers emphasized that GIA’s investment strengthens Tracr’s long-term credibility across the global diamond value chain and supports wider adoption of traceability standards. Company Chief Executive Officer Al Cook stated that consumers increasingly expect clear information about the origins of their diamonds and deserve confidence regarding the source of each stone.
The company has been developing Tracr since 2018 and described it as one of the leading blockchain platforms dedicated to diamond provenance. More than five million rough diamonds have already been registered on the platform, representing roughly two-thirds of De Beers’ rough diamond production by value.
Consumer research suggests that transparency could play an important role in future purchasing decisions. In a recent NielsenIQ survey of 1,170 respondents in China, 95% indicated plans to purchase jewelry within the next year, while 70% expressed a preference for natural diamonds. The study also found that traceability and value-added services are becoming increasingly important, with 92% of respondents viewing diamond traceability as a highly significant factor when making buying decisions.
