by David Turgeon, EVP
For years, the lab-grown diamond market has operated in a fog of ambiguity—part innovation, part opportunity, and part chaos. The lack of early, industry-wide standards for grading and pricing opened the door to confusion, inconsistent practices, and a patchwork of credibility that made long-term trust difficult to build.
Now, GIA has made a decision that may begin to reshape that narrative.
The organization recently announced it will cease using full 4Cs grading on its Lab-Grown Diamond Reports, shifting instead to broader descriptive ranges such as “Premium” and “Standard.”
As production of lab-grown diamonds has improved over the years, and the vast majority of finished stones fell into high clarity and color ranges, traditional 4C grading became essentially irrelevant. The intent is clear: to reaffirm the distinction between natural and lab-grown diamonds and to eliminate any perceived equivalence in how the two are assessed.
It’s a move that many feel is overdue—and one that brings both clarity and consequences.
The lab-grown category, once a frontier of margin-rich sales and younger customer enthusiasm, was launched into the market with very little consistency. Retailers relied on “back of Rap” pricing strategies, inconsistent grading, and varying narratives—some transparent, some not. While some sellers leaned into the chaos, others chose a steadier path: presenting lab-grown stones clearly, pricing them responsibly, and always educating clients on what they were (and weren’t) buying.
That approach—anchored in honesty—is now paying off.
With major brands like Signet, Pandora, and Swarovski heavily invested in lab-grown diamonds, this product category is clearly here to stay. But what’s likely to disappear are the high margins that once defined it. Commoditization is setting in. Supply is abundant. Consumer awareness is evolving.
What remains essential is trust.
By stepping away from full 4Cs grading for lab-grown diamonds, GIA is attempting to reset expectations and preserve the distinct value narrative of natural diamonds. Whether the market embraces that shift or resists it remains to be seen—but what’s certain is this: customers will continue to want lab-grown options. And how those options are presented matters more than ever.
So what does this mean for Fruchtman Clients & Friends? It means your edge won’t come from who can discount deeper—it will come from what you have always done - lean into integrity; educate better, build confidence with your customers, not confusion, lead the conversation with facts, not fear.
Keep doing what you’ve been doing. Protect your margin as best you can. Present lab-grown diamonds with clarity, integrity, and full disclosure. As the lab-grown market matures, it won’t be the loudest, flashiest or cheapest that will win—it’ll be the most trustworthy.
