Diamonds Are a Lab’s Best Friend | The summer of 2025 has been dominated by two diamond rings: one of them is very, very large — bordering on obscene — and the other one is very, very small — so small that it almost looks as if it were made out of a sliver of tinfoil:  Two proposals, one question: What’s it worth? Left photo via @georginagio on Instagram, right via Prime Studios Now what if I told you that both of these rings were worth the same amount? That would outrage you, no? The emerald-cut rock that Cristiano Ronaldo slid onto his fiancé’s finger — estimated to be 22 carats — likely cost more than a million dollars. And the barely-visible flash of gold seen on Belly Conklin’s hand in The Summer I Turned Pretty will run you less than $300. The two couldn’t be further apart! Yet in the age of lab-grown diamonds, the once-precious stone is becoming impossible to price, says Allison Schrager. “Diamonds hold a special place in my heart, not just as fan of jewelry but also as an economist,” she writes. “When young economists first start to ponder the concept of value and why things cost what they do, we inevitably turn to the OG, Adam Smith. It is remarkable, he observed, that diamonds cost more than water. ‘Nothing is more useful than water; but it will purchase scarce any thing,’ he wrote. ‘A diamond, on the contrary, has scarce any value in use; but a very great quantity of other goods may frequently be had in exchange for it.’” That scarcity, combined with the genius marketing of De Beers, made the diamond market shine. But now that the stones can be cooked up in a lab with little-to-no fuss, engagement rings are losing their luster. “And it is not just diamonds,” Allison writes. “Everything in the economy whose value is predicated on scarcity is suddenly abundant: luxury handbags, music, even currency itself. Why is anything worth anything anymore?” It’s a question that Andrea Felsted has on her mind as US tariffs spook consumers. “Such an environment has opened the way for dupes and fakes. This has been thrown into sharp relief by Lululemon accusing Costco Wholesale Corp. of copying its designs in a lawsuit filed in June,” she writes. “The first thing to know is that dupes and fakes are different,” Andrea explains. “Fakes are counterfeits, usually with an identifiable label or logo, making them easier to challenge in court.” Dupes, on the other hand, are more complicated: “They don’t pretend to the be real thing; instead they offer a similar but cheaper version. This is what the Lululemon and Costco case is about,” she writes. And yet copycats haven’t diminished demand for some of the highest-end items. Allison and Andrea point to the abundance of Birkin bag dupes available at Walmart — aptly called “Wirkins” — as proof. “To an untrained eye these bags are indistinguishable from the real thing — also leather, also look nice, also carry your things — and yet people still desire a real Birkin, for which there is a years-long waitlist. It could be the mystique, or the valuable resale market, but there are people willing to spend $15,000 on an authentic Birkin,” Allison writes. Indeed, “there’s a lesson to be learned from Birkin’s multifaceted appeal,” Andrea adds. “Not only is it notoriously hard to get hold of, but it is handmade in Hermes’ workshops in France. Such supply chain integrity is a crucial weapon in fighting fakes.” Yet diamond dealers can’t create scarcity out of abundance, argues Allison: “The diamond market is too large for De Beers to use the Hermes strategy. It needs diamonds to be rare and special — but also on every engagement ring in America.” “This may not be realistic anymore. A likely alternative is a world where natural diamonds are still coveted — they hold their value and have special symbolism — and, like the Birkin, are mainly consumed by an elite segment of the market. The market for smaller, lower quality natural diamonds may well disappear.” I guess Belly better head to the pawn shop before it’s too late. Bonus Scarcity Reading: The high-end art market is struggling. Could more human connection provide the boost the sector needs? — Howard Chua-Eoan Sometimes I wonder what it’d be like to print the visitor badges at the White House. On Wednesday, Apple’s Tim Cook was the guest of honor. On Friday, it was Nvidia’s Jensen Huang. And on Monday, Intel’s Lip-Bu Tan burst through the doors of the Oval Office to — in the words of Dave Lee — “explain to Trump why he thinks he should be allowed to keep his job.” Is the president secretly filming a 16th season of The Apprentice in there? Because that’s a lot of CEOs in less than one week! Instead, Matt Yglesias says it’s all part of Trump’s plan to curry favor with the business world: “Corporate titans are put to work providing propaganda wins for the White House, and in exchange are accorded favors unavailable to any startup ... Week after week, announcement by announcement, Trump is bolstering his ego at the cost of America’s long-term economic future.” As we all know by now, Trump’s love language isn’t so much gift giving as it is receiving. Look no further than the bespoke sculpture that Cook handed him — made of iPhone glass and real gold! — in exchange for immunity on microchip tariffs. “To Trump, the important thing is announcing these pledges, not enforcing them,” Matt notes. “During his first term, there was an infamous vaporware investment from Foxconn in Wisconsin that never amounted to anything. The real benefit to the president is the sycophantic photo op, when the CEO smiles for the cameras and praises Trump’s dealmaking prowess.” Yet Dave fails to see any hint of prowess in the AI deal the White House just inked with Nvidia and Advanced Micro Devices. The two tech companies have agreed to hand the US government 15% of their revenues from Chinese AI chip sales. “Where exactly the 15% cut to the US government will go, and to what ends, hasn’t been fully disclosed,” Dave writes. “Regardless, the primary winners from this deal are Nvidia and China.” Bonus Tariff Reading: The godfather of the Mar-a-Lago Accord is going to the Fed. — John Authers | 
