“Synthetic Diamonds”, the Hot New Trend?
Well, you might have seen an uptick in advertising for lab created or synthetic diamonds within this past year. Maybe you’ve seen these in magazines, your Instagram, or maybe while browsing at an online or brick and mortar store. Keep in mind...lab created gemstones (diamonds included) have been around since the 1800′s, and were readily used in both high-end and costume jewelry. So, the use of synthetic stones is not a new phenomenon, but the rise in marketing definitely is.
Here’s a quick guide to synthetic stones and where exactly they previously fit into the jewelry market:
Man made stones (synthetics) have found a solid fit into the world’s jewelry industry, as well as, being utilized for other various industrial purposes. This is simply due to the fact that they are created with the exact same chemical structure as their natural gemstone counterparts. As natural stones became a higher priced commodity, these lab created stones gained momentum as a more affordable means for the average person to enter into the luxury jewelry market. There are many mid level jewelry designers and retail outlets who incorporate these synthetic stones in their jewelry pieces: Effy, Jared’s, Kay’s, and Helzberg, to name a few. This was usually limited to high end colored stones, such as rubies, sapphires and emeralds. Diamonds, however, tended to have a more finicky market. Even though the trend of a diamond engagement ring is fairly new, starting only in the mid 1930′s; most around the world today still consider the diamond the most appropriate gemstone. Most clients felt that a lab created stone for such an important milestone was not as respectable as an unearthed natural diamond. More importantly, marketing for lab created diamonds was almost non-existent, as diamond manufacturers like De Beers (Anglo American plc), had limited themselves to strictly selling only natural diamonds for the jewelry market and synthetic stones for industrial use. Well....times have changed.
If you where to walk into any of the above mention retail stores today, you would see that your options for lab created diamond jewelry, engagement rings included, have widened drastically. Why this sudden change? Well, the grumblings that we in the jewelry industry heard a couple of years back came to fruition. One of the largest diamond manufacturers, De Beers, entered into the synthetic diamond jewelry market. In 2019, De Beers retracted it’s age old policy of selling only natural diamonds for the jewelry industry. They not only began selling synthetic diamonds on the open market, but invested in itself by creating “Lightbox”, a retail market for lab created loose stone diamonds and finished jewelry items. They are also in the last stages of construction on a $94 million dollar laboratory in Gresham, Oregon, designed specifically for the lab creation of synthetic diamonds. These lab created stones are being marketed as...... you guessed it....... lighter on your wallet and more importantly, a way to enjoy a more responsibly sourced diamond. These are both extremely important marketing points, as jewelry clientele are more budget conscious and knowledgeable of the adverse affects mining has had not only on our plant, but also on the local mining populations.
The shift in the market that occurred, and the no doubt large amount of money that De Beers has invested into these synthetic stones has created an even more competitive synthetic diamond market. Prices for synthetic diamonds have dropped by approximately 60% since De Beers entered the market this year alone. So, are you wondering why such a large corporation would take such a bold step into a market that they are negatively affecting? Is it just to diversify and gain a stake in the synthetic jewelry market? Do they think that in the long run, synthetic jewelry will be an even more profitable venture?
After pondering these same questions, speaking with other jewelry professionals and doing a bit a research, I have come to a conclusion. The negative effects on the market value of synthetics is exactly what De Beers wanted to accomplish. If the market is flooded with these beautiful synthetic diamonds and more and more people are inclined to purchase jewelry items made of lab created stones, the more rare and sought after a natural diamond becomes. Within the past few years diamond wholesale prices have stagnated and even began to drop. This can be contributed to many modern day vices that can be tackled in another article. The lesson learned is that corporations like De Beers have been able to create, influence and even change what we as a society wants or thinks it needs. The fact that they now have a large hold on both the natural diamond market and the synthetic market is one we should watch carefully. Gaining a foothold into the fairly new synthetic diamond market allows De Beers and the handful of other large diamond manufacturers to set pricing on both the natural and synthetic diamond markets. Thus, they can control and manipulate both markets at a whim for their gain.
Bottom line: there are three diamond markets that you as a customer can buy into. If you prefer knowing that a synthetic, conflict free, more environmentally sourced diamond sits within your jewelry items, then take pride in that and invest in those pieces. If you prefer a new natural unearthed diamond and feel that the mining industry has achieved great improvements in the way diamonds are sourced, then take pride and enjoy your diamond jewelry. If you are someone who prefers the beauty and history of an Antique or Art Deco piece, then take your time hunting for that special estate diamond that speaks to you. It is up to each individual to make the decision on what it truly important and beautiful when it comes to the jewelry they own.
