Laboratory grown diamonds are a fact of life. They are a new and very relevant alternative
Price competition and acceptance of laboratory grown diamonds to impact the industry
According to ABN AMRO´s insight report `Nothing is forever´, the diamond industry should gear up for changes. The structural changes forecasted in the industry for the near future could make a shift towards a shorter supply chain. Amongst the various factors, two important ones greatly impacting the diamond industry are, the price competition and wider acceptance of laboratory grown diamonds.
Stuller Inc. – one of the largest manufacturers in the US adds laboratory grown diamonds to it’s product mix
Stuller Inc., an industry leader in the domestic and international wholesale jewellery and one of the largest jewellery manufacturing and distribution facilities in the United States has become the latest company to offer laboratory grown diamonds.
Stanley Zale, Stuller’s vice president of diamonds and gemstones, says “The company has been selling the loose gems since before Christmas. We have been watching this, as everyone has. Our view is that we want to provide customers with options. This is another stone, another price point. Some customers have been concerned the lab-grown diamonds could get mixed up with naturals. We screen every diamond we sell for lab-grown, noting the company takes lots of precautions to keep the two kinds of diamonds apart.”
Stuller also has a sizable natural inventory, but he isn’t worried that one market will cannibalize the other. “This isn’t going to change anything. The technology is here. It won’t go away. The way for the industry to go forward is to understand this product,” he says.
A recent article on Idex comments on Stuller´s decision :
IDEX is one of the leading magazine and an online platform for the diamond and jewellery industry. A recent article on Idex online comments on the decision,
“Stuller Inc.’s announcement this week that it has added lab-grown diamonds to its existing product mix is important. The company has been in existence for more than 45 years and its decision to offer lab-grown diamonds is a big deal, because it signals that there is synergy, where technological expertise has reached a stage of advancement that has coincided with the willingness of jewelry retailers to sell the product. And lab-grown diamonds are here to stay, let us make no mistake about that. As retailers’ margins and profitability continue to get squeezed, is it not a logical and rational move for a large manufacturer to make this move?
….. a distinct market for both synthetic and natural products exists – they live side-by-side, and in large part, not only have sales of the natural product not been negatively affected, they have in fact increased. If we can appropriately differentiate between lab-grown diamonds and natural stones, and that always seems to be a sticking point, is it impossible that the two products can live in harmony?”
This reflects on the growing acceptance by jewellery retailers to sell this new kind of diamond. This rational move shows a rapid wave of change and advancement in the industry. Laboratory grown diamonds are here to stay. This calls for responsible selling. If sold legitimately with disclosure they are creating new opportunities.
At Madestones®, we sell laboratory grown diamonds with full disclosure and transparency.
Our goal is to continue to challenge the traditional jewellers mind set with new and viable ways to introduce laboratory grown diamonds. We don’t wish to be seen as a disruptive force but as natural progression, marketing together with jewellers and the natural diamond industry.