RapNet Blog
In a world where lab-grown diamonds are becoming increasingly accessible, the debate between natural and synthetic diamonds is heating up. This blog delves into the multifaceted conversation surrounding the two, guided by insights from industry expert Garry Holloway.
Tips for selling natural diamonds when synthetic diamonds are so cheap
- Refer to diamonds as “natural”, not “earth mined” or “mined”
- Say “factory made” or “manufactured diamonds”, not “lab grown”
- Call out the greenwashing
- Call them “conflict diamonds” not “blood diamonds” (blood diamonds were stopped 2 decades ago)
- Consider the benefits of fluorescent diamonds
- Most importantly, natural diamonds are going to get much rarer.
Read on to learn the supporting evidence for all the tips above to stop people from wasting their money on fakes.
Countering Lab-Grown Diamond Marketing
Synthetic gem diamonds became commercially viable around 10 years ago. Investors saw a huge opportunity and spent small fortunes on marketing. The main thrust was focusing on the perceived negatives of natural diamonds, such as: the environment, conflict blood diamonds, and child labor.
The Environment
Mining has connotations of digging up the earth, and that’s bad, right? So, reframe it by using the term ‘natural’, instead of calling them Earth diamonds, mined diamonds or Earth-mined diamonds!
Consumers have also been falsely persuaded that LGDs are more environmentally friendly. Yet 95% of factory-made diamonds are grown in countries where 60-70% of the energy is fossil fuelled. The coal mines that power the presses and reactors are around twice the size of all the world’s diamond mines.
While the lab folk tell you how much energy their CVD reactors consume, they forget to mention the CO2 from growing seed crystals and the HPHT post treatment to whiten the brown CVDs.
Blood Diamonds
Are blood diamonds really an issue?
The original blood diamond whistle blower, Ian Smillie, told me fewer than one in 100 stones today are conflict diamonds.
The Kimberely Process stopped conflict diamonds. Diamonds found in countries that do not meet the KPs standards are close to worthless.
Child Labor
“Children in Africa are mining diamonds.”
This is true; however, the Diamond Development Initiative and Resolve were able to get kids miners licences so they can sell their diamonds and not be taken advantage of. As a result of AIDS, Africa has 50 million orphans. For many kids, diamonds are a life-saving income.
More than a million people’s livelihoods depend on artisanal diamond mining in third world countries blessed with diamonds.
Natural vs. LGD Cut Quality
LGD are cut better than natural diamonds. They out-sparkle natural diamonds because CVD diamonds are grown to the minimum depth needed to produce the desired carat weight. Natural diamonds, sadly, are cut too deep to get the heaviest diamond possible. That results in deeper, duller natural diamonds.
The GIA support deeper cuts by allowing their Excellent cut grade diamonds to exceed their stated maximum depth of 63%. At the time of writing there are 47,113 GIA X cuts between 63.1 and 64%. There is more evidence of this in my book.
My US patented HCA cut grading system gives three quarters (74%) of lab grown diamonds Excellent or below 2.0 scores on HCA. Only a quarter (26%) of natural GIA Excellent cuts diamonds get HCA Excellent cut.
We, as an industry, must improve our game. Diamond cutters, wholesaler and retailers, please only deal in better cut quality natural diamonds.
LGD Traded Off Natural Diamond Rarity
The Lab business is ripping off millions of consumers, while retailers and wholesalers have taken huge hits as inventory investments fell. Even the growers and cutters, mostly natural diamond businesses in India, face crippling oversupply. Wholesale prices have halved this year alone!
Early LGD marketers were ‘trading off a superior product’: “This is a real diamond at half the price.” Yet today on RapNet a 3ct F VS1 natural is $56,000, the same lab diamond can be bought for $366. Large naturals cost 150 times more! Online prices are as much as $15,000 for a stone that wholesales for less than $500!
People laughed at me several years ago when I said larger lab grown diamonds would cost less per carat than smaller stones. On the chart below you can see this flipped in August this year, 2024. I monitored diamond prices on a platform every month this year. See the chart below.
Prediction: LGD Will Make Natural Diamond Prices Skyrocket
Why? Lab diamonds are introducing many more people to diamonds. Young Toyota and KIA owners might buy one, two or three carat lab grown engagement rings. Historically the Beemer, Merc and Porsche drivers, and their ilk, purchased the highest quality natural diamonds. But remember that many current luxury car owners started out with a cheaper first car. Five or ten percent of young lab grown diamond buyers, will one day be wealthy and will be told “Honey, for my anniversary I want you to put a real diamond in my engagement ring”. And you guessed it – it can not be smaller!
Promotional Low-Quality Diamonds are History!
The low value promotional TLB SI3 natural diamond jewelry will have little appeal when compared to lab grown jewelry. Many more tennis bracelets, earrings and other jewelry self-purchases and gifts will be sold with man-made diamonds.
That will result in many diamond mines closing.
Up to half of mine revenue comes from low quality smaller stones. Consider the Australian Argyle diamond mine. It's rough gem diamonds were worth between $6 to $12 per carat. Today the Argyle mine would not be viable.
What to Call Synthetic diamonds?
Factory made or manufactured diamonds are my pick. They are made in huge factories. The gemmological correct term ‘synthetic’ was ruled out by the US FTC (to learn my conspiracy theory real reason, get my book).
And remember, please do not call real diamonds earth mined!
Buy and Sell Blue Fluorescent Diamonds
The safest diamonds to buy have blue fluorescence. Synthetic diamonds do not fluoresce to cheap long wave UV torches, so a blue fluorescent diamond is guaranteed to be natural. Blue fluorescent diamonds face up whiter and are brighter than non-fluorescent diamonds. Us oldies can remember when blue fluorescent diamonds cost more than diamonds with none. Although they have historically been undervalued, fluorescent diamonds offer an opportunity for retailers to offer high-quality diamonds at competitive prices. Understanding and educating consumers about fluorescence can create new market opportunities and provide differentiation from lab-grown options.
The diamond industry is at a crossroads, with lab-grown diamonds reshaping consumer expectations and market dynamics. By promoting the unique qualities of natural diamonds, advocating for ethical sourcing, and educating consumers on the differences between natural and lab-grown diamonds, the industry can adapt to this evolving landscape. Natural diamonds will continue to hold a special place in the market, representing enduring value and unmatched beauty that synthetic alternatives cannot fully replicate.
Garry Holloway is an internationally recognised diamond cut quality expert. He invented the Ideal-Scope and the HCA cut grading system. Educated as a geologist, he has diplomas in Gemmology and Diamond Technology and has two diamond stores in Melbourne, Australia. Garry challenges the diamond industries so-called conventional wisdom. His book, How to Select the Best Diamonds, is a testament to that and is available on Amazon as a Kindle e-Book and paperback from Ideal-Scope.com.
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