Published by the Australian Financial Review, the aptly named report, ‘Should you buy lab-grown or natural diamonds?’, has fanned the flames leading into the all-important holiday sales period.
The report noted the remarkable expansion of the lab-created diamond industry over the past decade. Analyst Paul Zimnisky highlighted that lab-created diamond engagement rings above three carats are becoming increasingly popular because of the ‘bang for your buck’ factor compared with natural diamonds.
Sara Spence, co-founder of Australian jewellery brand Kate & Kole, addressed the limited resale value of lab-created diamonds. Based in Newcastle, the business started in 2015 and exclusively offers lab-created diamond jewellery.
“When we decided to use lab-grown stones 10 years ago, we had no idea that we were entering into an argument. We’ve never positioned ourselves as us against them,” Spence said.
“Most of our customers aren’t looking at resale, and in my opinion, both natural and lab-grown engagement rings don’t have a good resale value anyway. People don’t want a second-hand ring.”
She continued: “There are natural diamonds that have exceptional value and do appreciate, but most natural stones don’t hold significant resale value. If you want to invest, I’d say buy gold - six months ago.”
Another contributor to that report was Olivar Musson, creative director of Musson, based in Sydney. Musson said that while he has no issue with those who opt for lab-created diamond jewellery, his business will remain with natural diamonds.
“I’ve always applauded humankind synthesising nature. It’s remarkable that we can replicate something that nature has produced,” he said.
“We have only ever dealt in natural, unenhanced gemstones, because of the sheer feeling they give us. There will be people [for whom] synthetics are great; they can acquire a diamond that they may never have had the opportunity to otherwise.”
Musson continued: “The global market for natural diamonds now is pretty much controlled by a few key miners. The amount of effort they put into supporting the communities of the countries they are in [is significant]. They’re creating industry and business that supports the population from their natural resources.”
Coming Soon!
Later this month, Jeweller will publish the Great Diamond Debate III.
The original Great Diamond Debate was published in December 2018 and addressed the impact of the De Beers Group’s decision to launch Lightbox Jewelry.
That special issue proved so popular that The Great Diamond Debate II was published the following year, tackling the pressure placed on consumers as industry confusion intensified.
The Great Diamond Debate III will include perspectives from across the global jewellery industry. Some contributors from previous issues will return, while others will voice their opinion for the first time.
Each contribution will take its own approach; some will delve into data such as price trends, sales figures, and market dynamics. Others will confront more abstract questions: What do today’s consumers really want? What defines right and wrong in an industry with so much room for interpretation?
More reading
Coming Soon: The Great Diamond Debate III
The Great Diamond Debate: Round II
The Great Diamond Debate - Round I
Natural Diamonds: Damned if you do, Damned if you don't