Apart from the reasons of environmental and conflict concerns and limited supply of mined diamonds, one of the reasons why one should buy a Lab-grown diamond is because of its availability in several colors. Fancy colored diamonds are in vogue this season and the trend is expected to continue during the year. Joseph Lau, a Hong Kong billionaire recently spend USD 77 million to buy 2 fancy colored diamonds – a 12.03 carat vivid blue and a 16.08 carat vivid pink at different auctions. The extraordinary prices of colored diamonds are just one reason why consumers should consider buying Lab-grown diamonds, albeit at much lesser prices – 30-40% less than their mined counterparts.
Realizing the huge potential of the Lab-grown diamond industry, Silicon Valley billionaires have backed a California-based company – Diamond Foundry, which creates Lab-made diamonds. Being physically, chemically and optically identical to mined diamonds, several companies have now started growing Lab-grown diamonds.
Unlike the simulants like Cubic Zirconia (CZ or even popularly known as Zircon), Lab-grown diamonds are 100% real diamonds and are set to become the way of the future. However, many of the consumers who are though aware of Lab-grown diamonds don’t really know what they really are and a widespread confusion between Lab-grown diamonds and simulants still persists, as per an informal poll by a journalist.
Many of the affluent millennials now prefer Lab-grown diamonds over mined diamonds. 32% of the respondents (both men and women) in the journalist’s poll are already inclined towards Lab-grown diamonds, which cater to tech-savvy and socially conscious clientele.
According to Frost & Sullivan research, by 2018, Lab-grown diamonds are expected to meet 1.9% of global polished diamond sales. However, the cutting & polishing industry especially in Surat, India has recently been on a downfall with thousands of jobs lost and numerous units shut. Lab-grown diamonds have the potential to add 320,000 jobs in the diamond industry by 2030, of which 276,000 will be in the diamond processing sector. KPMG forecasts that by 2015, China’s diamond processing industry will reach 21.3% and India’s share will decline from 57% to 49%. In such a scenario, Lab-grown diamonds give a solution for India’s diamond industry problems.
Backed by developments in technology and changes in consumer preferences, the disruptive product – Lab-grown diamonds are set to become the way of future luxury.