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Lab-Grown Diamonds: Jewelers Are Making Money, But They’re Not Happy About It

A new Brain Squad survey finds a majority of retailers seeing positive business impact — even as they call the product “garbage,” “costume jewelry” and “sign of the apocalypse.”

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LAB-GROWN DIAMONDS have become one of the most polarizing products in jewelry retail. And according to INSTORE’s January Brain Squad survey, that tension isn’t going away — jewelers are profiting from lab-growns even as many remain philosophically opposed to selling them.

Lab-Grown Diamonds: Jewelers Are Making Money, But They’re Not Happy About It

The numbers tell a conflicted story. When asked about the business impact of lab-grown diamonds, 61 percent of respondents reported a positive effect — with 44 percent calling it “strong positive” and another 17 percent saying “weak positive.” Only 19 percent saw a negative impact, while 20 percent remained neutral.

Yet when we asked those same jewelers to describe their feelings about lab diamonds in three words, the responses were anything but warm. “Sign of the apocalypse,” wrote one Illinois retailer. “Garbage, trash and s***,” said another from Texas. A Canadian jeweler offered a creatively censored verdict: “S_hit, sh_t, SHI_.”

Others were more measured in their disdain. “Substitute for cubics,” said a Calgary retailer. “Costume jewelry,” wrote a New Jersey jeweler. “For poor people,” offered one from New York.

On the other side, enthusiasts made their case just as bluntly. “Love. Those. Moneymakers!” wrote a Pennsylvania jeweler. “Sell, sell, sell,” said one from North Carolina. A Wisconsin retailer summed it up: “Lovely, perfect, easy.”

The pragmatic middle ground may have been best captured by a Virginia Beach jeweler: “We are selling them at a good profit, but kind of ‘hold my nose’ in doing so.”

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Most Jewelers Aren’t Panicking

When it comes to the future of natural diamonds, most jewelers aren’t panicking. Just over half — 51 percent — said they don’t worry that lab-growns are threatening naturals, while 25 percent said “possibly” and just 18 percent expressed genuine concern.

Lab-Grown Diamonds: Jewelers Are Making Money, But They’re Not Happy About It

INSTORE Brain Squad Survey: January 2026, 115 responses

Consumer confusion is another matter. Asked whether lab-growns are creating confusion among buyers — specifically around the idea that “both are the same, only the price is different” — 42 percent of jewelers said yes. Another 32 percent acknowledged some confusion but said it wasn’t at a worrying level, while 25 percent saw no confusion at all.

As one Lake Havasu City retailer put it: “Cat’s outta the bag, so embrace them.” Or as four separate jewelers said, with varying degrees of resignation: “Here to stay.”

The takeaway? Lab-grown diamonds are firmly in the product mix right now, and numerous jewelers have found a way to profit from them. But the market hasn’t finished having its say — one jeweler already sees “a two-tier market now: lab for fashion or young buyers.” If that split continues, lab-growns could land squarely in discount territory, following the lead of former diamond substitutes like cubic zirconia or moissanite, while natural diamonds become the higher-end signal.

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SPONSORED VIDEO

Honoring a Legacy: How Smith & Son Jewelers Exceeded Every Goal With Wilkerson

When Andrew Smith decided to close the Springfield, Massachusetts location of Smith & Son Jewelers, the decision came down to family. His father was retiring after 72 years in the business, and Andrew wanted to spend more time with his children and soon-to-arrive grandchildren. For this fourth-generation jeweler whose great-grandfather founded the company in 1918, closing the 107-year-old Springfield location required the right partner. Smith chose Wilkerson, and the experience exceeded expectations from start to finish. "Everything they told me was 100% true," Smith says. "The ease and use of all their tools was wonderful." The consultants' knowledge and expertise proved invaluable. Smith and his father set their own financial goal, but Wilkerson proposed three more ambitious targets. "We thought we would never make it," Smith explains. "We were dead wrong. We hit our first goal, second goal and third goal. It was amazing." Smith's recommendation is emphatic: "I would never be able to do what they did by myself."

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