One thing’s for sure…
Lab-grown diamonds are here to stay.
Because last year was an explosion of lab-grown diamonds everywhere, in every jewelry store, in all the catalogs, ads, billboards…It was lab-grown diamonds getting radio advertisements, almost exclusively…
Because of the prices.
The prices of lab-grown diamonds has dropped so much in the past few years because of demand. It’s a mind-blowing reality. For example, you can get a 3 carat lab-grown diamond, right now, for under $6,000. That is insane.
I work with jewelers doing advertising, and I see it every day. The prices keep dropping due to competition. It’s to the point where they can’t drop anymore.
So what has lab-grown diamonds done to the industry?
You would think it would mean that jewelry stores are only making half the profit that they used to…
With prices so low, and engagement rings selling cheap, one would expect low margins and less money in the bank. But this is not the case…
Jewelers are making up the difference in more sales, because diamonds are much more affordable now. They are making it up with bigger diamond sales than normal. One local jeweler I know just had his 3rd biggest year in a row (after being in business for over 35 years). It used to be that anything over 1.00 carat was considered a big deal. But now, half the rings we sell are over 1 carat (so much for the dream diamond carat weight). People are buying 2 carats, 3 carats, 4… Because they are affordable. It’s like a win-win situation.
And I see no end to it.
What will happen to Earth-grown diamonds?
These prices have come down too. With less demand on the market, they had no choice but to evolve and keep their market share.
Many jewelers originally thought lab-grown diamonds was just going to be a trend. Just like rose gold, trilliants, platinum, and Moissanites. But lab-grown diamonds have filled the showcases and the hearts of the consumer, especially the younger generation, and especially now with the downward economy.
So what’s your take on buying bigger diamonds?
Are you buying bigger with lab-grown diamonds? Or are you still spending $30,000 for that 3 carat? Let me know in the comments below.