Diamonds were formed deep inside the bowels of Planet Earth billions of years ago. “As the edges of Earth’s tectonic plates plunged down into the upper mantle, bits of carbon, some likely hailing from long-dead life forms were melted and compressed into rigid lattices. Over millions of years, those lattices grew into the most durable, dazzling gems the planet had ever cooked up. And every so often, for reasons scientists still don’t fully understand, an eruption would send a stash of these stones rocketing to the surface inside a bubbly magma known as kimberlite. There, the diamonds would remain, nestled in the kimberlite volcanoes that delivered them from their fiery home, until humans evolved, learned of their existence, and began to dig them up.”
However, diamond mining scars the earth. Hence, some diamond seekers have turned to lab-grown diamonds. “These gems aren’t simulants or synthetic substitutes; they are optically, chemically, and physically identical to their Earth-mined counterparts. They’re also cheaper, and in theory, limitless. The arrival of lab-grown diamonds has rocked the jewelry world to its core and prompted fierce pushback from diamond miners.”
The lab-grown diamond industry is about to take-off: “Today, that sector is taking off. The International Grown Diamond Association (IGDA), a trade group formed in 2016 by a dozen lab diamond growers and sellers, now has about 50 members, according to IGDA secretary general Dick Garard. When the IGDA first formed, lab-grown diamonds were estimated to represent about 1 percent of a $14 billion rough diamond market. This year, industry analyst Paul Zimnisky estimates they account for 2-3 percent of the market. He expects that share will only continue to grow as factories in China that already produce millions of carats a year for industrial purposes start to see an opportunity in jewelry.”
As a result, the establishment is not just waking up and taking notice, it is blessing lab-grown diamonds: “In the summer, the Federal Trade Commission (FTC) reversed decades of guidance when it expanded the definition of a diamond to include those created in labs and dropped ‘synthetic’ as a recommended descriptor for lab-grown stones. The decision came on the heels of the world’s top diamond producer, De Beers, announcing the launch of its own lab-grown diamond line, Lightbox…”
Now, here comes the problem for you and me – the lab-grown diamonds are virtually indistinguishable from the natural diamonds and that creates a real risk that any diamonds we have might lose their value: “And while lab-grown diamonds boast the same sparkle as their Earthly counterparts, they do so at a significant discount. Zimnisky said that today, your typical one carat, medium quality diamond grown in a lab will sell for about $3,600, compared with $6,100 for its Earth-mined counterpart—a discount of about 40 percent. Two years ago, that discount was only 18 percent. And while the price drop has “slightly tapered off” as Zimnisky put it, he expects it will fall further thanks in part to the aforementioned ramp up in Chinese production, as well as technological improvements. …Zimnisky said that if the price falls too fast, it could devalue lab-grown diamonds in the eyes of consumers.”
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