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Understanding the Surge in Lab-grown Diamond Sales April 28, 2022 (0 comments)

Los Angeles, CA--The sale of lab-grown diamonds is on the rise. And it's hard to tell the difference between real and factory-made diamonds. The only visible difference is the price tag.

[Image: Pixabay Commons]

A news report highlighted that the sale of engagement rings featuring manufactured diamonds rose by 63% in March compared to the same period last year. The sale of natural diamond engagement rings declined by 25% during the same period.

The numbers indicate the rise in popularity of lab-grown or manufactured diamonds. And it's quite a threat.

"The big fear in the natural diamonds industry is that consumers will start accepting lab-grown diamonds in engagement rings," Edahn Golan, an independent diamond industry analyst, said in the report. "It's actually happening."

The product cost is a driving factor behind customers moving to the manufactured diamond market. Golan pointed out in the report that the price of a one-carat round man-made diamond engagement ring was $2,318.

"This is substantially less — as much as 73% cheaper — than a natural diamond of the same size, cut and clarity as the man-made diamond, which would cost $8,740," he said, as highlighted in the report.

The rarity of real diamonds makes them expensive. The prices are on a rise because of Russia's invasion of Ukraine as it has choked the supply chain of natural raw diamonds.

Even though the market's booming, the share of manufactured diamond's relatively small. Golan pointed out in the report that only about 7% of specialty diamonds in the jewelry market were man-made. But the growth's been rapid, as the figure stood at 3% in 2020.

Read more on the surge of lab-made diamonds in this report.