Synthetic Diamonds will Raise the Price of Real Diamonds
Synthetic Diamonds will Raise the Price of Real Diamonds
Recently, I was reading an article on technology.org regarding Synthetic Diamonds and how they can now be grown using a microwave. Now, most people will read that heading or even peruse the report and conclude that the Engagement Diamond Market will soon feel the pressure of Synthetic Diamonds and collapse. It's is easy to come up with that conclusion using a cursory knowledge of supply & demand. However, this isn't a simple apples-to-apples comparison, and there are many reasons natural diamonds can actually become more expensive.
Before going any further, it is important to understand that regardless of what side of the fence you may be on when it comes to Synthetic Diamonds, it is all speculation. The process involved with creating a Synthetic Diamond is complicated, requires particular materials, and can take weeks to complete. None of those things makes it currently easy, but you never know what the future may hold.
Authentic Diamond prices will only benefit from this, and here's why:
Legislation: Even at these early stages there is already a legislative push for the labeling of Synthetic Diamonds. While scientific methods exist to differentiate between synthetic and natural Diamonds, labeling will make it easy for the layperson to make that distinction. Their respective manufacturers clearly label current Lab Created Diamonds. Whenever you bring labeling of origination or quality into play, you also open up a potential black market for that item, but that's nothing the Diamond Industry can't handle.
Rarity: Diamonds are already a non-rare stone. As we've mentioned on the site, the Diamond market is highly controlled to maintain prices and limit flooding. The introduction of "Chocolate Diamonds," which are plentiful, did not affect the pricing of Colorless Diamonds. Unlike other commodities which can enter a price war to burn out the newcomers (see recent oil prices), there are highly stratified distinctions within the Diamond market. Only so many "D," "E," etc., diamonds are mined per year. So while there are millions of Diamonds dug up, only a tiny percentage of those can be considered Engagement Ring quality. Add that the Diamond Market is majority controlled, and you have a recipe for sustainable and increasing prices.
She'll want a Real Diamond: This is the prime reason prices of Real Diamonds will increase. Remember, Diamond Engagement rings are strictly a marketing ploy. Granted, one of the greatest marketing ploys in the history of humanity. Thinking that the industry won't take advantage of an opportunity to emphasize further the "rarity" of your love is dismissive. I can't wait for the commercial that states: "Show her that your love is real, buy her a Natural Diamond."
Only time will tell how Synthetic Diamonds will ultimately affect the market. In the meantime, if you're in the market for an Engagement Ring, you have to try and do the best you can to pick out a quality stone. Since a Diamond ring should never be used as an investment, the future price should have no effect on the artistry of the ring and what it means to you emotionally.
Would you like us to help you with your diamond ring search? Contact us and we will provide you with a one-on-one service that will get you the best diamond available!
