Lab-grown diamonds are man-made diamonds that mirror the qualities and appearance of natural diamonds. These synthetic stones consist of carbon atom structures with the same chemical and visual characteristics of the natural diamond crystal.
On 24th of July 2018, it was officially declared that the Lab-grown diamonds are the same as Natural diamonds. By none other than The Federal Trade Commission. This was simply because of the pure similarity of the chemical composition and physical properties of the former and the latter. One might now ask how this changes the effect of diamonds on the business and investment sector.
To be true, Jewelry is nowhere near to the business criteria. That diamonds tend to provide, and hence both the criteria are very distinct from one another. Just for an example, will a 3D machine-printed Picasso hold the same emotions. And value like the original Picasso. Just because the dimensions of both the paintings are equal and both these paintings are done on canvas? Not, right?
It’s the same for Lab diamonds in the diamond investment industry too. We will be describing this more briefly later.
Currently, Lab-grown diamonds are estimated to hold a total value of about $150 million each year. And it is predicted that it will surely spike up the billion-dollar mark in about a few more years to come.
Ethical, Eco-friendly and Affordable
The educated populations are largely starting to favor the lab-grown diamonds over the natural ones. Simply because they are tagged with certain specific terminologies like being ethical, eco-friendly, and all. But if “Ethics” is the point of consideration is it the same for the other daily life essentials that they use and purchase as well? What about the cell phone components that are made using African children as laborers or clothes from Bangladesh. That originally are also results of child labor exploitation?
The thing is, this difference in the opinions is not recent. And has been there since they originate from the lab-grown diamonds; and no doubt will continue its way in the future as well. But one fact is for sure, and we want the readers to enlighten themselves about it too; it’s that there is no comparison in between the demand of lab-grown diamonds in the jewelry industry. And their role in the investment industry.
Stats and Facts About Lab-Grown Diamonds
The prices of laboratory-made diamonds will further decrease. From what it is now in the coming years and it will keep on decreasing over time. They are a product of technology as always been use to make our lives easier. As for now, per carat costs for lab-grown diamonds have already decreased from $4000 to prices less than $800. And it is predicted to even go below $400 in due time. Now, if calculated, this is a price declination of over 90 percent. Such had, is, and will never be possible for the naturally formed diamonds.
One of the essential criteria that one searches for will investing in something is the degree of rarity of the particular product. For natural diamonds, it is always at the highest levels. As we never know whether the natural diamond we purchased maybe something one of a kind. Or maybe part of some unique historical story itself. On the other hand, lab-grown or manmade diamonds are just products made as per demand. Yes, they are not fake but, if frowned upon the emotional content of them. They can be depicted as simple replicas of the natural ones; the bodies without any “soul”. This is exactly which the Diamond Producers Association or DPA termed the naturally mined diamonds as “Real is Rare”.
Another essential element for investment business is the liquidity and degree of value during the resale of the product. Being said so, there is no absolute resale market for the lab-grown diamonds ( there are- like the MiaDonna and the Ada Diamonds. But they still are a loss as they offer only up-gradation values. Meaning it will cost the customers about 70 percent of the new diamonds total price). Now, it is a clear fact that one will certainly not try and invest in something. That will prove to be a loss for them in the future. Right?
Yes, it is correct they have their claims of superiority in comparison to natural diamonds. But those are only when the gemstone and jewel markets come in question. Yes, they are cost-efficient and better in terms of their inclusion amounts and are available in much abundance and varieties. But, such only decreases their rarity value and hence ultimately their choice as an investment.
The Future of Lab-Grown Diamonds
If we talk about the future of the lab-grown diamond industry, they will certainly grow up in their market. Hereby market we mean industries apart from jewelry as well. It must not be something of astonishment for one, but lab-grown diamonds have their use in many other industries; the natural one falls short on that. They have their need and applications in the medical, scientific, computer, and abrasives industry also, of course, the jewelry industry too.
This certainly implies how much there is the total demand for lab-grown diamonds in the overall market. And the fact that they can be produced easily also implies. That they are more reliable as source products if we compare the natural diamonds. Which of course are much scarce in our environment.
From cell phones to PCS the future of electronics and electrical industry will certainly increase and establish the use of diamonds. Because they simply are a very good semiconductor and thermo conductor element, even better than silicons.
The pricings of lab-made diamonds will continue to decline and decline along the coming years. The idea of investment does not act upon the distant future predictions and assumptions. It works on the present market valuations and by reviewing the past stats and analytics. For a normal person, they may be the best choice and the most bang for their hard-earned bucks in terms of rings and pieces of jewelry. But for a businessman or an investor, they are less likely to claim their attention.
Hence, if one thinks of purchasing a lab-produced diamond as a jewelry piece. We will be more than satisfied and would be recommended him or her to do so. But would not suggest anyone invest in them just now, as per their present market valuations.