De Beers invests in blockchain technology as the demand for lab-grown diamonds increases.

      **Summary:** De Beers is leveraging blockchain technology to protect the market for natural diamonds against competition from lab-grown ones. The Gemological Institute of America (GIA)’s acquisition of a 30% stake in Tracr lends credibility to the blockchain platform that tracks diamond origins. However, with a significant decline in diamond prices and increasing popularity of lab-grown stones, technology alone may not justify the higher price of natural diamonds.

      The natural diamond sector faces an invisible challenge: lab-grown diamonds now closely resemble mined stones, are significantly cheaper, and their adoption is rising rapidly. De Beers, the largest diamond producer and distributor globally, believes that blockchain can provide the proof of value that geology can no longer offer.

      **GIA's Investment in Tracr:**

      The GIA has decided to purchase a 30% interest in Tracr, a blockchain platform backed by De Beers for tracing diamond origins. Announced in June 2026, this move represents a significant advancement in establishing Tracr as an independent industry framework. De Beers has been working on Tracr since 2018, registering over five million rough diamonds at their source, accounting for about two-thirds of its rough diamond production in terms of value. While the concept of blockchain-based provenance tracking isn’t new, its large-scale implementation in the diamond industry is.

      According to Al Cook, CEO of De Beers, "Consumers deserve to know where their diamonds come from, and they should feel more confident in understanding each diamond’s source." Cook joined De Beers in February 2023 after serving as an executive vice president at Norway’s Equinor.

      **A Struggling Market:**

      The need for Tracr’s expansion is underscored by recent data. The IDEX Diamond Price Index, a key global metric, reached approximately 155 in 2022 but has seen a drastic decline. Year-on-year, losses of 17.9% in 2023, 13.7% in 2024, and 10.9% in 2025 depict a troubling trend, with the index reportedly dropping from 158 to 86—a decline of over 45%. While independent data confirms a peak around 155 and consistent declines, the exact end figure for 2025 at 86 could not be precisely verified. The general trend and approximate severity of the drop are not contested.

      Lab-grown diamonds are the main contributor to this market shift. In mainland Chinese stores, a 1-carat lab-grown diamond reportedly sells for about 3,500 yuan (US$518), which is less than one-tenth the price of a comparable natural diamond. Production is highly concentrated in Henan province, making up around 80% of China’s lab-grown diamond output.

      **Context of the 40% Statistic:**

      The article mentions that lab-grown diamonds represented over 40% of sales in the global diamond jewelry market last year, which is an eightfold increase since 2019. However, independent market data from Statista estimates the lab-grown market share at approximately 21% in 2025, creating a significant discrepancy with the 40% figure. This gap might arise from differences in how "sales" are defined, whether by volume, pieces sold, or revenue, and may reflect data specific to China rather than a global statistic. Readers should approach the 40% claim with care until the methodology is clarified.

      **Can Blockchain Justify the Premium?**

      According to Lu Qi, an associate professor at China University of Geosciences (Beijing), tracking provenance allows buyers to trace a diamond’s journey from its origin to its cutting and polishing processes, which should enhance consumer confidence. She suggests that this traceability might increase the price of natural diamonds—an interesting dynamic considering the current market decline. This strategy aligns with Deloitte’s research, which identifies supply chain transparency as one of blockchain's strongest applications in business.

      A NielsenIQ survey in China, involving 1,170 respondents, found that 95% intended to purchase jewelry in the next year, with 70% preferring natural diamonds. Additionally, 92% considered traceability to be very important. However, this survey's findings could not be independently confirmed through another source apart from the SCMP article and De Beers-related press releases.

      **The Broader Perspective:**

      De Beers’s investment in blockchain ultimately serves as a branding initiative rather than a measure to lower the price of natural diamonds or to visually distinguish them from lab-grown alternatives. It aims to create a verified narrative for each diamond, transforming provenance into a value proposition uniquely suited for blockchain technology. The real question is whether consumers will see enough value in this narrative to justify a tenfold price increase. For De Beers, the hope is that many still regard a diamond's origin as more significant than its material composition.