— Production speed for starters: Unlike mined diamonds, which take millions of years to form naturally, lab grown diamonds are created in controlled environments using advanced technologies like High Pressure High Temperature (HPHT) and Chemical Vapor Deposition (CVD). This significantly reduces production time, from millions of years to mere weeks, leading to a much faster supply influx.
— Technological Advancements: Constant innovation in lab grown diamond technology allows for more efficient production processes, further driving costs down.
— Targeted Market: The most significant price drops are observed in lab grown diamonds within the 1-2 carat range, typically used in popular solitaire engagement rings. This strategic focus by lab grown diamond producers caters to price-sensitive consumers seeking affordable luxury for their special occasions.
— De Beers’ Response: De Beers, a major player in the mined diamond industry, has acknowledged the pressure exerted by lab grown diamonds. They have strategically reduced prices for rough diamonds, particularly in the “select makeables” category used for smaller engagement rings, indicating their attempt to remain competitive in a changing market.
Despite all these reasons, lab diamonds are still valuable and preferable to natural mined diamonds. Here’s why…
Why Choose a Lab Grown Diamond If Their Price is Falling?
1. True Value Beyond Rarity:
Lab grown diamonds boast the same chemical, optical and physical properties as mined diamonds, yet their price reflects their actual production cost, not inflated rarity, which like a car, value drops significantly when out of the store. This allows you to access larger and more stunning diamonds without breaking the bank. The price drop signifies a shift towards affordability, not diminished value.
2. Unearthing a Flawed Price Comparison:
Historically, mined diamond prices were artificially inflated by marketing and perceived a limited supply. Lab grown diamonds, priced based on true production cost, offer a fairer comparison. Moreover, their increasing availability is pressuring mined diamond prices downwards.
3. Beyond Price: Sustainability and Ethics:
Lab grown diamonds offer a sustainable alternative, minimizing environmental impact through controlled creation. Additionally, ethical concerns surrounding mined diamonds, like potential human rights abuses, are eliminated with lab grown options.
4. Unveiling True Brilliance:
Lab grown diamonds are indistinguishable from mined diamonds in terms of beauty, sparkle, and durability. Choosing a lab grown diamond doesn’t compromise quality or aesthetics.
By opting for a lab grown diamond, you embrace a more sustainable, ethical, and transparent diamond industry, while still enjoying the brilliance and timeless beauty of beloved diamonds.
What is the Creation Process? Unveiling the Science Behind the Sparkle…
1. Mined Diamonds: Formed deep within the Earth for over millions of years under immense pressure and heat. The mining process involves extensive excavation of land, sorting, and cutting of the rough diamonds. Practices in the diamond mining industry are often unethical and unsustainable causing harm to both people and the planet.
2. Lab Grown Diamonds: Created in controlled environments using two primary methods:
- High-Pressure High-Temperature (HPHT): Mimics the natural diamond formation process by subjecting a carbon source to extreme pressure and temperature.
- Chemical Vapor Deposition (CVD): A carbon-rich gas is introduced into a chamber under controlled conditions, where it crystallizes onto a seed diamond, forming layers of diamond.
A lot of energy is required to grow a diamond in lab conditions. Not all suppliers consider this so whether the energy used to grow a lab diamond is renewable or has been carbon offset is at the discretion of the producer and whether they are honest about their energy use.
Diamond Pricing System: Understanding the Diamond Market
The diamond market operates on a complex pricing system based on the “4Cs”: Cut, Color, Clarity, and Carat weight. However, several additional factors influence the final price:
- Certification: Diamonds certified by independent gemological institutes like GIA or IGI generally command higher prices. At JaemsAnthony “Where less is more”, all of our lab grown stones have been certified by GIA or IGI to ensure that you have only the highest quality lab grown diamond in your jewelry.
- Shape: Based on popularity, round brilliant cuts are typically the most expensive, while fancy shapes like princess or emerald may be slightly less expensive.
- Brand Recognition: Established brands in the lab grown diamond market may have slightly higher prices due to their reputation and marketing efforts.
The Crash Landing: Why are Lab Diamond Prices Falling?
The rapid price decline of lab grown diamonds is primarily driven by the factors mentioned above: increased production speed, technological advancements, and strategic targeting of the “bridal market.” Additionally:
- Market Saturation: As more companies enter the lab grown diamond market, competition intensifies, leading to price drops to attract customers.
- Shifting Consumer Preferences: Younger generations prioritize ethical and sustainable products, potentially impacting the demand for mined diamonds in the long run, further pressuring (pun intended), lab grown diamond prices down.
These reasons do not suggest that falling costs is a bad thing. In fact they suggest the opposite. The general population are becoming more interested in making cost effective, sustainable, and responsible choices when it comes to jewelry that reflects true love and commitment over unethical and harmful mining practices.
Looking Beyond the Price Tag: What is the Future of Lab Grown Diamonds?
While lab grown diamond prices are expected to continue falling for now, experts predict that their cost will become more stable over time according to the true production value and desire for lab grown diamond jewelry. A “shakeout” in the non-branded segment has also been predicted, with only strong brands likely to survive the increasing competition. However, the overall demand for lab grown diamonds is expected to rise due to their affordability, ethical appeal, and growing environmental consciousness among consumers.
