Man-Made Diamonds – Are They Really Man-Made?
It’s proposal season, and diamond engagement rings are selling like crazy. But what many consumers don’t know is that most of those shiny rock stacks aren’t mined, they’re man-made. And it’s no secret that the price tag is far lower than the real thing.
While many jewelers are hopping on the bandwagon and offering lab grown gems at a fraction of the cost of their natural counterpart, the move may not be sustainable. In fact, it’s already causing significant angst among some retailers and consumers.
One big reason: the eye-watering http://ventsmagazine.com/2023/09/13/discover-the-brilliance-of-calgary-lab-grown-diamonds-at-breslauer-warren-jewellers/ profit margins of some of the start-up lab-diamond companies have been slashed by falling prices for natural diamonds. De Beers, backed by mining giant Anglo American, is the clear leader in the market, with profit margins of about 50 percent. Its business model relies on a wide gap between retail and manufacturing costs to offset its initial investment, which it can pass on to shoppers.
But that gap has widened since the beginning of this year as prices for natural diamonds have plunged by about 40% in just three months. As a result, fewer retailers are willing to apply the same pressure on their suppliers to drive sales of lab-diamonds. This could be a major setback for the industry, says industry analyst Edahn Golan.
Despite the price decline, the popularity of lab-diamonds continues to rise. In March, jewelry retailer Signet (SIG), owner of Zales and Kay Jewelers chains in the United States, said demand for its “responsibly sourced” lab-created diamonds had jumped 63% in the previous year. The company plans to continue focusing on this segment of the market.
A lab created diamond is identical to a natural diamond, except it has been produced in a laboratory through either high pressure/high temperature (HPHT) or chemical vapor deposition (CVD) processes. These are the same processes that form carbon atoms under the Earth to create natural diamonds, only in weeks instead of millions of years.
The lab-grown gems can be cut into any shape or size, just as natural diamonds are. And just like natural diamonds, the color of a lab-created diamond can be enhanced with heat, giving it an iridescent glow.
But if you want to ensure that your diamonds are authentic, it’s best to ask for a certificate from a respected gemological laboratory, such as the Gemological Institute of America (GIA). That’s because only a trained professional can tell the difference between a natural and a lab-created diamond by their appearance alone. Also, don’t confuse the phrase “lab-created” with “man-made,” which has a negative connotation. Look for the GIA designation “lab grown.” This indicates that your diamond was indeed produced in a laboratory. It’s important to remember that lab-created diamonds have no resale value, so once you’re ready to sell them, you won’t get much money for them. But you’ll have a beautiful piece of jewelry to wear for the rest of your life. And that’s really the point of a diamond: not the material, but the sentimental value.
