The Impact of
Lab Grown Diamonds
on
the Traditional Diamonds
The Impact of Lab Grown Diamonds on the Traditional Diamonds: Traditional Diamonds have always been cherished and have retained their popularity till today. But the emergence of lab-grown diamonds has created a stir in the diamond market. So, how do the lab-grown diamonds affect the mined-diamond market? Will they impact the value of the naturally occurring diamonds? Let’s explore this exciting development.
How much will the Lab Grown Diamonds Cost?
The cost of lab-grown diamonds is another concern that jewellers might have. The synthetic diamonds or the lab-made diamonds will be valued at 30 to 40 % less than the naturally occurring diamonds, and it is a vast difference between the prices of the two. However, it is believed that there will always be demand for natural diamonds, and interested buyers will pay the premium price to buy them. Those with budget -constraints but keeping their love for the sheen and shine of a diamond intact will prefer to buy the synthetic diamonds available at much lower prices.
Lab-Grown Diamonds Marketing Strategy
The best marketing strategy for lab-grown diamonds is to stick to their benefits rather than compare them with Natural Diamonds. The market for Natural Diamonds is vast with a loyal customer base, and it would be futile to undermine their popularity. The synthetic diamonds are identical to the naturally occurring diamonds with similar optical properties but available at a comparatively much lesser price than the mined diamonds. So rather than comparing it with natural diamonds, jewellers dealing in lab-grown or synthetic diamonds should address the potential customer base and focus on creating awareness of the lab-made diamonds’ properties and the benefits they offer, which are discussed below-.
The most crucial advantage that a buyer gets is budget-friendly prices. The synthetic diamonds are available at a much lower price- but have the same optical properties.
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Environmental friendly:
Synthetic diamonds pose no harm to the environment, and they are obtained without causing any damage to the environment. Therefore attract environmentally conscious people. Moreover, buyers get a diamond within their budget. Millennials, in particular, will opt for lab-grown diamonds; therefore, we can say that a potential market is ready for synthetic diamonds.
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Same quality:
The Lab-grown diamonds are made in an environment that mimics the earth’s natural environment. They have the same atomic properties -similar crystal lattice-like structures present in the naturally occurring diamonds. Apart from the same physical properties, diamonds have identical physical and optical properties.
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Similar Visual Appeal:
Synthetic diamonds have the same sparkle, sheen, and clarity as that of a natural diamond. Interestingly, both natural and synthetic diamonds appear identical to the naked eye, and certified gemologists can cite the difference between the two using specialized instruments.
Conclusion - The Impact of Lab Grown Diamonds on the Traditional Diamonds
From the above discussion, we can conclude that lab-grown diamonds have their niche market. The synthetic or engineered diamonds will not threaten the market for Natural Diamonds, and their value will not be affected. The new generation is interested in buying synthetic diamonds, which are available at less than half of the price of the mined diamonds. Both the diamonds- Natural and Lab-grown can co-exist and offer buyers varied options. However, it is essential to note that synthetic diamonds have a niche market and should be marketed well. They need marketing and promotional activities on a large scale to attract more and more buyers.
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Author
Pathik Shah
CISA, FCA, CS, DISA (ICAI), FAFP (ICAI)
Pathik is a Chartered Accountant with more than 22 years of experience in jewellery industry. Be it accounting, auditing, compliance, business process reengineering, software development, or digital marketing, he possesses all-encompassing diversified expertise.
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