Throughout your life, you must have come across the word diamond at least once. It is nearly impossible not to as the diamond industries have done their fair share of advertising the idea that diamonds are the ultimate symbol of love.
Perhaps your favorite entertainment industry celebrity can’t stop showing the new bling they got. It is definite that diamonds are here to stay, but are you aware that not all diamonds are mined and some are grown in a lab? lab created diamonds are very similar to mined diamonds except that these are made in a lab, unlike mined diamonds.
Why are people foregoing diamonds?
The diamond industry has run some successful campaigns convincing consumers to lean toward the fact that diamonds are the one true symbol of love. It has also led to a huge growth in the wholesale diamond industry in the past couple of decades.
Recently, consumers have become more aware of their fashion choices and what impact it has on the environment. It is proven that mining diamonds have a severe environmental, social and economic impact. Mining diamonds have led to armed conflict in communities. To reduce the sale of “blood diamonds” the governments around the world came together and signed a certificate known as the Kimberley process which helps in reducing the mining and exporting of blood diamonds.
Industry Expert’s View
Due to lab grown diamonds gaining popularity among consumers, let’s look at some expert reviews to understand the significance of lab-grown diamonds and what value they hold.
- Lab-grown diamonds are expected to grow by 22% annually: Due to cheaper prices and growth in technology, industry experts have predicted a 22% growth in the Lab-grown diamond industry.
- Sales of lab-grown diamonds have increased eightfold: According to an expert in the diamond industry, studies have shown that lab-grown diamond sales have increased eightfold in the last two years. Due to the increase in sales and rapid market penetration, there are questions if this will cause turbulence in the mined diamond industry.
- Fun fashion but not engagement material: For years, the Diamond Industry has pushed real diamonds as the true symbol of love, which led to the huge engagement ring industry. Now due to the growing market for lab-grown diamonds, the diamond industry is separating the two by retailing lab grown diamonds too but for different purposes. Companies have started their own retail stores that sell lab-created diamonds but focus more on wearing them in a more casual and fun way.
Do Lab Created Diamonds Hold Their Value
Lab grown diamonds also pass through the same test as mined diamonds, so they share the same value. If you compare the value of a lab-grown diamond with a mined diamond, then you can see that both share the same value. Now because the factor of scarcity is removed, any diamond you buy, lab-grown or mined will have a cut in its cost which will lead to a fall in the value of diamonds. They can still be valued as the most luxurious stones that can be bought and it’s now possible for more people to afford diamonds because of the lab-grown diamond industry.
Are mined diamonds over?
The whole idea of having a nuclear family has started to fade away with the millennial and Gen Z generation. This makes it difficult for companies to push the factor as diamonds for engagement rings or other marital gifts. The companies to try and adapt to the new changes have also started working on lab-grown diamonds and selling them as more fun and casual accessories and gifts.
Some companies have their separate retail stores for Lab-grown diamonds which focus more on selling diamonds as gifts that are given on achieving milestones in someone’s life, like graduation gifts or birthday gifts.
Should I invest in diamonds?
Even though diamonds are a suitable alternative to store wealth when compared to alternatives like gold or other metals, some might wonder if it’s a worthy investment.
Some might say it’s not advisable to invest in diamonds because the diamonds, whether mined or lab-grown, are going to lose their value over time. Since the introduction of lab-grown diamonds, consumers have come to the realization that lab-grown diamonds are much safer for the environment and are much cheaper compared to mined diamonds.
These factors will lead to a fall in the prices of diamonds which is good for consumers as more people can own and adore these gemstones.
How has the diamond industry reacted to lab-grown diamonds?
Diamond industries have tried to create a difference between lab-grown and mined diamonds by calling the mined ones “natural diamonds” but by now, we are aware that even lab-grown diamonds are real and the only difference is they are made in a lab and don’t have a severe impact on the economy or communities.
The industries have even pushed the government to claim that lab-grown diamonds are not real diamonds but have not been successful because they are real diamonds.
Till now the companies have been able to charge a premium on mined diamonds but overall, the prices have come down.
Despite a shortage of mined diamonds in the next few years and a huge demand for them, this gap can only be filled with lab-grown diamonds. As we can see, lab-grown diamonds are the future and there is no way to stop them. Lab-grown diamonds are here to stay because they are a real, trendy, and cheaper option without sacrificing quality.