Why is the sale of diamonds made in the lab increasing, how is the price?

Engagement numbers are on the rise as couples make their vows. At the same time, the sale of laboratory-made diamonds is increasing.

Looking at these artificial diamonds, you wouldn't realize they were made in a factory. These man-made diamonds look exactly like mined diamonds. You can understand the difference between these two types of diamonds by their price list.

Idan Golan, an independent analyst who monitors the diamond industry. He told CNN that sales of lab-grown diamonds rose 63 percent in March of last year compared to the same period a year earlier. At the same time, sales of natural diamond engagement rings fell 25 percent. In his words, 'The results are really amazing.'

In February of last year, sales of lab-made diamond engagement rings jumped 80 percent. Sales of natural diamond engagement rings fell 13 percent that month. Idan Golan said there was a fear in the natural diamond industry that people would one day start accepting lab-grown diamonds for engagement rings. According to him, "it's starting to happen."

Current changes
The question is, why are consumers turning to lab-grown diamonds? The simple answer is price.
The one-carat round diamond is the most commonly used engagement ring, with an average retail price of $2,300 in March of last year, Idan Golan said. It is about 73 percent cheaper than natural diamonds. A natural diamond of the same size, cut and brilliance costs $8,700. And because of the low prices, couples can buy bigger diamonds.

Lab-grown diamonds are real diamonds, says Idan Golan. He said that while natural diamonds take 800 million to 3000 million years to form, lab diamonds are made in just a few weeks. Natural diamonds, on the other hand, do not have an endless supply.

This is why natural diamonds are so expensive. Due to the Russia-Ukraine war, the price of such diamonds may increase further. Alrosa is one of the targets of Western sanctions against Russia. The Russian government partially owns the company. According to the United States, it is the world's largest diamond mining company, supplying 28 percent of the world's total diamonds.

Dan Moran, owner of Los Angeles-based jewelry firm Concierge Diamonds and a third-generation diamond expert, says man-made diamonds are becoming more popular because consumers are becoming more aware and knowledgeable about them. People under 40 and budget-conscious are the main buyers of lab-made diamonds, he said.

Child labor is often involved in extracting diamonds from mines. This complaint is especially high in the case of diamonds from Africa. Also, there are shipments of diamonds from warring countries, known as 'conflict diamonds'. Although the sale of these diamonds is prohibited, they come to the market.

The market is growing
Lab-created diamonds still have a small share of the diamond market. But this market is growing. According to Idan Golan, 3 percent of the diamond market in 2020 was occupied by man-made diamonds. Currently this share is 7 percent.

Some major jewelry companies are looking to bring lab-grown diamonds to the mainstream. Pandora, the world's largest jewelry company, announced in 2021 that it would no longer use mined diamonds. Instead, they use lab-grown diamonds in their jewelry. It was a big change.

Signet is the largest jewelry company in the United States. They own Gel, Kay Jewelers and Jared Chain Shop. They also acknowledge the popularity of lab-grown diamonds. Describing it as a "fast-growing sector," Signet Chief Executive Virginia Dross said she thinks lab-grown diamonds will be a big jewelry trend.

Jewelery brand Charles & Colvard manufactures its own diamonds in the lab. According to them, looks are no longer the only consideration for consumers. They want to experience beauty now.

There is a major shortage of lab-grown diamonds The resale price is not very good. "You can't tell which is a lab-made diamond and which is natural, but a trained expert can," says Idan Golan. So at whatever price you buy the diamond, you will get a lower price at the time of sale.

The value of a ring cannot be judged only by its monetary value.

According to Idan Golan, 'People often ask me what I think about the price of rings they have. One thing I always say is, if you love it, be happy with it. An engagement ring is no ordinary thing, it is a symbol of commitment and lasting love.'