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- In recent years, consumer preference for diamonds has shifted from mined stones to lab-created ones, as they offer better value and are more aligned with a younger generation's environmental morals.
- But that shift in demand was hit by a coronavirus-led lag in supply chains due to disruptions in trade, especially from one key diamond-processing country.
- 90% of mined diamonds and 99% of lab-grown diamonds are cut and processed in India, which had one of the world's strictest lockdowns.
- India temporarily halted all imports during the pandemic, meaning it was unable to receive any goods to cut or polish, clipping the supply chain and lively halving diamond exports by 50% this year.
- "Realistically, there's very little need for new goods to be put into the marketplace when it comes to mined diamonds," Amish Shah, founder of a lab-grown diamond company, told Markets Insider.
- Visit Business Insider's homepage for more stories.
Global demand for industrial diamonds is slowly being satisfied by synthetic, or lab-grown diamonds, according to a Statista report.
That means demand for genuine precious stones is slowly diminishing, and there is good reason for that, with buyers now worried about both the environmental impact of diamond mining, and the industry's historical link to bloody conflicts in Africa.
See the rest of the story at Business Insider
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