INDUSTRY VIEW: The future of lab-grown diamonds

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Lab-grown diamonds are only growing in popularity, and are not going anywhere any time soon.

Here Lucas Smith, digital specialist at Heart in Diamond, takes an in-depth look at how two of the industry’s giants are approaching the lab-grown diamond question and what that could mean for the future of diamond jewellery.

The first examples of diamonds being worn as jewellery dates back to around the 11th century, when kings and queens showed off the glittering gemstones in crowns.

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For hundreds of years, regal headdresses were the only places diamonds were used as glamorous accessories, up until 1477, when the first diamond engagement ring was given.

Since then, diamonds have featured prominently in all kinds of jewellery available to the masses. As times change and society’s interests head in a different direction, a new type of precious gemstone is emerging: the lab-grown diamond.

Synthetic diamonds aren’t anything new. The first ones were created in 1954 and mostly used for industrial-grade tools in a sector in which their affordability and durability were major advantages.

For around 60 years, jewellers all over the world largely shunned this kind of lab-grown gemstone. They were firm in their beliefs that it was an inferior fringe product, even though technology was improving and becoming more sophisticated each decade.

Today, industry-leading jewellers are having a change of heart and becoming more open to the idea of diamonds grown in laboratory conditions.

De Beers and Pandora are both creating beautiful lab-grown diamonds using generic carbon and advanced technology which imitates the natural conditions used to create traditional diamonds.

Other companies, such as Heart In Diamond, are taking a slightly different approach and making lab-grown diamonds from the ashes of deceased loved ones and pets.

The synthetic gemstone market has even attracted large-scale investors from Silicon Valley and Hollywood. Leonardo DiCaprio, the star of the film Blood Diamond has been helping promote lab-grown diamonds as an ethical and low-carbon alternative to the natural gemstone.

At this time, lab-grown diamonds only account for approximately 2% of the overall diamond jewellery market. But as demand for affordable and sustainable gemstones increases in the millennial and Gen Z market, this figure is anticipated to rise over the next few years.

Here’s a look at how two major players in the jewellery industry are approaching synthetic diamonds and the reasons behind their choices.

De Beers

After vowing to never sell lab-grown diamonds, De Beers shocked the industry in May 2019 when it began doing just that. In that month, a 1 carat synthetic diamond cost around £3,030, with the equivalent mined gem costing around £4,330. Just four months later, De Beers began selling 1 carat man-made diamonds for £580.

Industry experts believe that the biggest risk in De Beers producing lab-grown diamonds is that it could undermine the value of natural diamonds. However, others argue that by getting involved in the man-made gemstone industry, De Beers has actually strengthened the market by showing confidence in a product some consumers were unsure of.

A quick glance at the De Beers website and Lightbox, the lab-grown diamond subsidiary, immediately highlights that the two brands are taking very different marketing routes.

While the original De Beers site emphasises grandeur and sophistication with phrases such as “Nature’s rarest works of art” and “The gift of timeless elegance”, Lightbox takes a more light-hearted approach. De Beers’ lab-grown diamonds are marketed as sparkly pink, blue and white fashion accessories, far from the precious real gems they scientifically are.

De Beers confirms that the disparity is intended to create a clear distinction between the pieces made with mined diamonds and the pieces made with lab-grown diamonds. Through smart marketing, the company aims to reinforce the mystique of stones formed by the Earth so consumers continue to purchase them for special occasions, such as engagements and weddings.

This is most likely due to the significant imbalance in profit between mined and lab-grown diamonds. According to analyst Paul Zimnisky, natural diamonds are more than 50% more profitable than their man-made counterparts.

forced to lower the price of their lab-grown diamond jewellery accordingly. To maintain healthy profits, the industry giant will naturally strive to continue selling more mined diamonds than lab-grown ones.

Some diamond specialists believe the industry leader has made an unsafe move by breaking into the lab-grown diamond industry. Martin Roscheisen, Chief Executive of Diamond Foundry, said his company didn’t see the new jewellery range as competition and had not had to cut their prices,

“It’s a very high-risk gamble that De Beers is taking that so far we don’t see working out, because they have primarily legitimized the man-made category.”

Pandora

For years Pandora has specialised in offering its clients affordable luxury jewellery. Although the company is best known for its bracelets and collectible charms, Pandora also sells a range of jewellery featuring mined diamonds. However, sales figures are fairly low, with just 50,000 diamond jewellery sales out of a total of 85 million being made in 2020.

In 2021, Pandora launched its first ever lab-grown diamond campaign in the UK, with plans to go worldwide by 2022.

Instead of targeting the engagement and bridal market, the primary focus for many diamond sellers, Pandora is marketing its rings, bracelets and necklaces featuring synthetic diamonds for women to buy as a gift for themselves.

Many industry experts consider this to be an irregular move, considering the current consumer market. Millennials and Gen Z are the primary purchasers of diamonds for engagement rings and studies show that almost 70% of millennials are considering purchasing a lab-grown diamond instead of the mined alternative.

Taking this into account, it’s easy to see why many people would think Pandora has missed out on a lucrative market. However, Alexander Lacik, the CEO of Pandora, explained his shrewd approach in an interview with Bloomberg.

“We don’t want to denigrate the value the industry has built up around diamonds—the whole flair around diamonds. We definitely want to keep that.”

Although the lab-grown diamonds used in Pandora’s new jewellery range cost around ⅓ of the price of mined diamonds and are made using renewable energy and carbon offsets, Lasik doesn’t want to angle them as an alternative to natural diamonds, therefore destroying the value so many have worked hard to establish.

All diamonds are here to stay

Millennials and Gen Z are drawn to lab-grown diamonds because of their low price, transparency and sustainability. Demand for this type of environmentally-friendly and affordable gemstone is set to maintain its 15-20% annual increase, resulting in a market of between 10 million and 17 million carats by 2030, according to a report commissioned by the Antwerp World Diamond Centre (AWDC).

But just because the synthetic diamond sector is expected to grow doesn’t mean jewellers have to turn their backs on traditional diamonds. Many companies are finding a profitable balance in providing both mined and synthetic diamonds, reaching a broader customer base while staying true to their roots

Sidney Neuhaus, co-founder of Kimaï, the company that made Meghan Markle’s famous lab-grown diamond earrings, told the BBC that as long as diamonds hold their emotional resonance, consumers will continue to shop for both lab-grown and mined diamonds.

It’s not about the price or rarity. It’s about the emotional value of the gemstone and the memories it holds.

Words by Lucas Smith, Heart in Diamond digital specialist.

Police release photos of suspect in Charm Diamond jewelry theft

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More details are being released into an alleged jewelry theft at the Quinte Mall including a suspect description and photos.

When Belleville police responded to Charm Diamond Centre on Monday at 4:40 p.m. they were told a man had grabbed two rings from a store employee and fled from the mall through the Shoppers Drug Mart entrance.

He got into a white SUV believed to be a Mazda Tribute waiting at the entrance and fled the scene toward Denny’s exiting onto North Front Street.

Video footage showed that the license plate had been removed from the vehicle prior to the robbery.

The suspect was Caucasian and in his mid-30s. He is described as 5'6 with a thin build. He has crooked teeth with a chipped right front tooth. He was wearing a blue toque, dark blue jacket, blue jeans and black boots.

Police are asking anyone with information to contact Constable Cory Mooney at 613-966-0882 ext 4180 or cmooney@police.belleville.on.ca

‘We’re here, we’re open’: London retailers open for business with restrictions

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LONDON, ONT. – Local retail owners are happy to welcome customers through their shop doors once again, as the region enters red-control zone measures.

Sharon Lehman, owner of LifeStyles of London and Josh’s Shoes, says her business has been closed to foot traffic since Christmas Day during lockdown.

With the region entering the red-control-zone on Tuesday, the retail store can now operate at 50 per cent capacity.

“Okay guys were here, we’re open….get your runners on and let’s go!…I couldn’t even sleep, so very very excited, it’s almost like re-opening your business again.”

With snowy road conditions, it was a slow start to the day for business, but loyal customers quickly showed up to offer their support.

Sharon Lehman, right, owner of LifeStyles of London, speaks with a customer on Feb. 16, 2021. (Jordyn Read/CTV London)

‘Even though it’s a snowy day, it’s a happy day we all need to support each other through this pandemic and I am glad to be here,” said customer Elaine.

Lehman runs her business online as well as in-store, but says business always booms when customers can roam freely through the store.

‘Oh my goodness our business grows. Honestly I’m just so grateful to be open, it could pretty much do anything and I’d still be here.”

Hair salons in the city can now operate at half-capacity.

Carla McGilton, manager of Salon Entrenous, says clients are calling around the clock for a last-minute touch-up.

‘We have been over the top with phone calls it has been incredibly busy.”

McGilton says the team is working hard to make up for lost time.

“We started cancelling clients on Dec. 23 (2020), so it has pushed clients all the way to March and April. Everyone is just really pleased to be back and working hard to get their clients in as soon as possible.”

A hairstylist works on a client’s hair at Salon Entrenous in London, Ont. on Tuesday, Feb. 16, 2021. (Jordyn Read/CTV London)

Malls were also given the green light to open with restrictions.

At White Oaks Mall, it is the first time Londoners can shop inside since Christmas Eve.

Manager of Charm Diamond Centre, Sue Hammond, says she’s ecstatic to see customers walk through once more.

“Absolutely fantastic. Customers are excited they’re in. Jewellery is emotion, they love to come in and touch and feel and try it all on and make sure everything is perfect.”

For more information on how the red-control zone regulations may impact you, click here.

Province still recommends staying home

While the stay-at-home order has been lifted, the province continues to recommend leaving your home only for essential reasons for those living in red zones.

Not visiting other households and avoiding social gatherings is also encouraged.

Indoor gatherings are discouraged and remain capped at five people. Outdoor gatherings are also not recommended and are capped at 25 people.

The restrictions under red are expected to be in place for at least two weeks before being reassessed.

Here are some of the restrictions that took effect in Middlesex-London and Elgin-Oxford on Tuesday:

Retail

supermarkets , convenience stores and pharmacies open at 75 per cent capacity

all other retail at 50 per cent capacity, including big box, liquor, hardware and garden stores

capacity limit and signs advising not to enter if you have COVID-19 symptoms must be posted publicly

only non–adjacent fittings rooms open

maximum of 10 patrons seated in mall food courts

Restaurants and bars

10 people allowed indoors where distancing allows, maximum of four per table with two metres or an impermeable barrier between tables

no buffet-style service

patrons must be screened and contact information collected

face coverings required except when eating and drinking

workers must wear PPE, including eye protection when coming with two metres of someone not wearing face covering

no liquor served after 9 p.m., establishments must close by 10 p.m.

no dancing, singing or live music

night clubs and strip clubs can only operate as restaurant or bar

Sports and recreation

no contact, maintain two metres distancing at all times or three metres around weights, equipment or in exercise/fitness class

where distancing can be maintained, 10 people allowed indoors or 25 outdoors, no spectators except one guardian for those under 18

reservations required and patrons can remain for maximum of 90 minutes unless playing a sport

training only allowed for team sports, no games or scrimmage

exceptions for high-performance athletes and parasport

face covering required except when exercising

patrons must be screened and contact information collected

Personal service

no services requiring removal of face coverings is allowed

oxygen bars, steam rooms, saunas, bath houses, most sensory deprivation pods and other adult venues closed

patrons must be screened and contact information collected

Other businesses and events

organized public gatherings can include a maximum five people indoors, 25 outdoors

religious services can operate at 30 per cent capacity indoors, 100 people outdoors

casinos, bingo halls and gaming can open with 10 people indoors, 25 outdoors, no table gaming, no liquor served after 9 p.m., no liquor consumption after 10 p.m., patrons must be screened and contact information collected

cinemas closed except for drive-ins, rehearsal and performance of recorded/broadcast events allowed with restrictions

Chatham-Kent and Windsor-Essex also reopened in red, while areas covered by Huron-Perth Public Health, Lambton Public Health and the Haldimand-Norfolk Health Unit reopened in the orange-restrict zone, while Grey-Bruce falls into the yellow-protect zone.

Full details of the provincial framework and rules in each zone are available here.