Recently, we’ve engaged in discussions with numerous industry peers from both natural diamond processing and trade sectors, as well as wholesale and retail sectors of cultivated diamonds.
Through these ongoing conversations, two predominant sentiments have become increasingly apparent:
1) A steadfast commitment to natural diamonds. It’s essential to clarify that this isn’t meant as a derogatory term. On the contrary, it reflects a strong, almost unwavering belief: natural diamonds hold promise as a product.
2) A somewhat resigned acceptance of cultivated diamonds. The term “resigned acceptance” is used because many individuals express sentiments akin to “what can we do? Its impact on natural diamonds is significant.”
These intertwined feelings of commitment and resignation form the prevailing sentiment conveyed to us by industry insiders:
The development of cultivated diamonds is indeed contentious, with some favoring it and others not, yet all must confront reality.
This situation didn’t arise suddenly but has roots in various historical, societal, and economic factors, making it exceedingly complex.
A recent blog post by Israel’s Sarine Diamond Technology Group, titled “The New Real, A New Narrative: Lab-Grown Diamonds,” published on January 12th, may serve as a reference.
Sarine enumerates three significant reasons why cultivated diamonds are attracting younger consumers:
1) Equal Brilliance to Natural Diamonds
A key reason for consumers’ heightened enthusiasm for cultivated diamonds is their identical performance to natural diamonds in physics, chemistry, and optics.
Recent technological advancements have allowed scientists to replicate the necessary conditions for diamond growth, resulting in products visually indistinguishable from natural diamonds. Cultivated diamonds sparkle and charm just like natural diamonds, adhering to the same 4C standards and optical performance ratings.
2) Budget-Friendly Options
Traditionally, the cost of an engagement ring equated to approximately three months’ salary, according to conventional notions. However, the emergence of cultivated diamonds renders this notion outdated.
Lab-grown diamonds are approximately 80% cheaper (for equivalent grades) than natural diamonds, enabling many who couldn’t afford diamonds previously to purchase products they love. This affordability grants consumers the luxury of diamonds without hefty expenditures.
3) Perceived Ethical Superiority
In addition to cost considerations, ethical concerns surrounding diamond mining are prompting many consumers to seek alternatives. Environmental impact, labor issues, and occasionally controversial sourcing are driving buyers to increasingly prioritize environmental and ethical attributes.
For modern consumers, particularly the socially and environmentally conscious Millennials and Gen Z, cultivated diamonds evidently alleviate concerns regarding the ethical implications of traditional diamond mining.
It’s worth noting that the process of producing cultivated diamonds also entails gas emissions and environmental impacts. However, there remains a “gray area” in understanding cultivated diamonds, which is crucial. Nevertheless, cultivated diamonds are perceived as an ideal “eco-friendly and ethical alternative,” imbuing their purchase with added value and significance.
Based on recent communications outlined at the article’s outset, the aforementioned points are indeed the most prevalent topics we’ve encountered. As for the controversies—whether rational or emotional—at this stage of development, they are all reasonable. Nonetheless, we must acknowledge a reality:
The cultivated diamond market is experiencing an upward trend, and the contentious phenomenon of price reduction may merely represent a rationalization of its pricing.