Are Diamonds Losing Their Luster?
Are diamonds destined to lose all their value because the prices for lab-grown diamonds keep plummeting? Over just the last five years, prices for two carat lab diamonds have plunged by 90%
The diamond industry is facing a pivotal moment as lab-grown diamonds rapidly increase in availability and plummet in price. Over just the last five years, prices for two carat lab diamonds have plunged by 90%. A lab diamond purchased today costs about a tenth of its identical twin from five years ago. Even the lab-grown giant Lightbox, owned by De Beers, recently slashed prices up to 38% in a bid to stay competitive.
With lab diamonds now comprising around half of all two carat diamond sales, what does this mean for the traditional diamond's value retention? Typically, a comparable lab diamond costs 60-85% less than an identical mined stone in terms of carat, cut, color and clarity. These synthetic jewels offer undeniable beauty at about a third of the price.
However, the market for truly rare and precious diamonds remains rarefied and seems poised to increase in value over time. While there are tens of millions of white mined diamonds, making that category far from scarce, the same cannot be said for diamonds possessing exceptionally vibrant fancy colors like red, blue or pink hues.
Take, for example ,the breathtaking 5.11 carat triangular brilliant fancy red diamond of internally flawless clarity owned by renowned London jeweler Moussaieff. Among the rarest of gemological phenomena, only around 30 pure red diamonds have ever been uncovered in nature.