February 2, 2023

Why lab-grown diamond sales are surging

4 min read

It’s not like you know the difference. Man-made diamonds look just like naturally occurring diamonds. The only significant difference is the price tag.

“The results are really impressive,” said Eden Golan, an independent analyst in the diamond industry.

He said the March figures showed the number of sales of engagement rings, one of which was a featured one. The price of diamonds increased by 63% over the previous year, while the number of rings sold with natural diamonds decreased by 25% in the same period.

For another month, until February, data showed that the number of rings sold with lab diamonds this month increased by 80% compared to a year ago, while the number of natural diamond rings decreased by 13%. Had occurred

“The big fear in the natural diamond industry is that consumers will start accepting lab-made diamonds in rings,” he said. too late. “It’s actually happening.”

The tide is turning.

Why are consumers turning to man-made diamonds? Cost is the most obvious reason. The average retail price of a single-carat round man-made diamond for the most popular engagement ring in March was $ 2,318, Golan said.

“It’s significantly lower – up to 73% cheaper – than a natural diamond of the same size as a man-made diamond, which will cost 8,740,” he said. In addition, the low price allows couples to buy a large stone.

“The lab diamond is a real diamond, but it may take a few weeks to make,” Golan said. “Natural diamonds were made in 800 million to three billion years and have an unlimited supply.”

This makes natural diamonds more expensive, and prices are likely to rise as Russia’s invasion of Ukraine tightens the supply chain for natural diamonds.

Kay Jewelers The LEO Legacy Lab Made Diamond Three Stone Engagement Ring in 1 ct tw 14K White Gold (Price $ 2,999.99)
Restrictions Target Al-Rusa directlyPartly owned by the Russian government, which the US government has identified as the world’s largest diamond mining company, accounting for 28% of global diamond production.

Man-made diamonds are also gaining popularity because consumers are more aware and educated about them, said Dan Moran, a third-generation diamond expert and owner of Fine Jewelers Concerned Diamonds in LA. Buyers of man-made diamonds are usually less than 40 years old, Moran said. And very budget conscious.

Mined diamonds have a controversial history that has been linked to child labor in some African diamond mines, as well as to illicit trade. “The Diamonds of Controversy” Who fund conflicts in war-torn areas.
Among millennials and Gen Z, their environmental mentality and ethical concerns about the acquisition of natural diamonds is another factor influencing their preference for unconventional engagement rings. According to a report From the wedding planning website The Knot.

A small but growing part of the diamond market

Although the fraction is growing, the market share for man-made diamonds is relatively low.

Golan said that currently, about 7% of the market for special diamond jewelry is man-made diamonds, up from 3% in 2020.

Some major jewelry retailers are trying to bring man-made diamonds into the mainstream. The world’s largest jewelry company in 2021, Pandora (پنڈی)Has made a major change by announcing that it will discontinue the use of mined diamonds and replace laboratory-made diamonds in its jewelry.

Pandora said it is launching the transformation as part of an effort to sell durable jewelry, and also because consumers are increasingly asking for it.

Cigarette, (SIG) The largest jewelry company in the United States (which owns Zales, Kay Jewelers and Jared Chains) noted the popularity of Lab Diamond Jewelry in a March earnings call with analysts.
This engagement ring from Concierge Diamonds features a 1ct lab-grown diamond with 2 pink sapphires in a14K yellow gold band.  (Prices start at $ 3,500 per center diamond)

Calling it a “fast-growing category” in its jewelry portfolio, Signet CEO Virginia Dros told analysts that lab-made diamond jewelry is one of the biggest jewelry trends they expect this year. Are doing

The company said it has expanded its selection of bridal jewelry at both its Zells and Key Jewelers stores. Demand

Fine jewelry brand Charles & Collard, which makes laboratory-made diamonds, said consumers not only want to look good with the jewelry they are wearing, they also want to feel good about it.

Dan O’Connell, president and CEO of Charles & Colward, said, “As the pace of conscious consumerism grows, it is not surprising that lab-made diamonds are on the rise.” “[Consumers] Want to know the origin of their stones and make sure they are free from controversy. They are accepting the option of buying a piece of fine jewelry that is in line with their values. “

The lab-produced diamond brand VRAI said that the epidemic has also given rise to attention and action on social and environmental issues. Consumers are re-examining the companies and industries they support, along with more thoughtfulness and their shopping habits, he said.

However, one important thing for everyone who buys laboratory-made diamonds is this: the resale value of man-made diamonds is low.

“Although you can’t tell the variety of natural diamonds made by the factory, anyone with a trained eye can tell,” Golan said. Once the stone is recognized as a factory diamond, even if you pay a very low price for it, you will not get much for it.

But the value of the ring is not just financial.

“As a professional in the industry, I am always asked by people what I think of the ring they have,” said Moran, a concierge jeweler. “I always say, if you love it, be happy with it. The engagement ring is a symbol of commitment and lasting love.”

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *