Diamond Industry In TroubleBoth betterdiamondinitiative and Berenberg are in agreement – that lab-grown diamonds (also referred to as synthetic diamonds by some) are a disrupter. Berenberg’s survey of ~2,000 millennial women from around the globe showed that while there is still a market for earth-mined diamonds, there was a growing preference for lab-grown diamonds. The reasons for this are many.
Lab-grown diamonds generally have less flaws than earth-mined diamonds. In markets where flaws are considered inauspicious, the preference for lab-grown diamonds is growing. It is seen to be more friendly to the ecology (it does not scar the earth) and avoids the taint of blood diamonds
Second, it is almost impossible to tell the difference between earth-mined and lab-grown diamonds.
Third, lab-grown diamonds are less expensive than earth-mined diamonds (sometime by over 30%). The market for this type of diamonds, says the Berenberg report, could swell to $3.7 billion by 2030.
What is equally interesting is that the price of earth-mined rough diamonds has begun to fall. The rate of price declines could be expected to accelerate.
Market demand is soft for diamonds. Second, the shift to lab-grown diamonds is now evident. Third, lab-grown diamonds are available at lower prices for quality and sparkle that outmatch earth-mined diamonds.
De Beers has begun producing lab-grown diamonds
The reducing demand for earth-mined diamonds, and the competition of lab-grown diamonds has caused the prices of roughs to start falling. This is notwithstanding the reduced supply of roughs in the world. People expect these prices to continue falling.
Yet the sparkle in diamond jewellery has only increased. This is because lab-grown diamonds offer a better sparkle. Moreover, the industry has even begun producing large stones.
https://www.asiaconverge.com/2018/11/diamonds-are-not-forever/