Diamonds have been the most sought after gemstone for jewelry (and other things) for generations now, resulting in in the industry generating billions in sales each year.
Thanks to a genius marketing campaign in 1948 where De Beers introduced the idea that “diamonds are forever” people have wanted them in all sorts of pieces, and especially in engagement rings.
This has worked out very well for the diamond industry including mining companies, retailers, and of course, De Beers itself.
While things have gone well for a long time, there are many reports that indicate things are taking a hard turn, with millions in profit being lost in just the last few years.
While there are many reasons for this, the largest is undoubtedly the growing popularity of lab grown diamonds. Ankur Daga, the founder and CEO of Angara, an e-commerce jeweler, says:
“The diamond industry is in trouble.” and went on to say that the core issue is the, “rapid growth of lab-grown diamonds.”
The technology for lab grown diamonds has been around for about 70 years, but it has only been relatively recently that their quality and abundance made them a practical option for most jewelers.
Even once they were readily available, only a small percentage of people wanted them in their jewelry.
As recently as 2019, only about 12% of people said that they would consider lab grown diamonds for engagement rings.
According to a recent report, that number is up to about 50% today.
There are multiple reasons why so many people are happy to move to the lab created diamonds.
First, they are created without any worry about the terrible working conditions that exist in mines around the world.
Second, lab created diamonds can be about 85% cheaper than natural diamonds, which means people can afford larger diamonds in their jewelry.
The third, and potentially most important, reason cited is that the lab created diamonds are identical to those that are found in mines.
This means that without extremely specialized equipment, it is impossible to tell whether a diamond is mined or created in a lab.
This also explains why when talking to friends or family, most people say that even recently purchased diamonds are natural. Since nobody can tell the difference, many people tell a little white lie to impress their friends.
After all, why not save potentially thousands of dollars while still getting an incredible gem.
Remember, diamonds are forever, whether they are created in a lab or from the pressure of Earth’s mantle.
If you think that’s impressive, check out this story about a “goldmine” of lithium that was found in the U.S. that could completely change the EV battery game.