Lab Grown Diamonds

Kevin Bingle

Allan Jewelers is choosing not to sell lab grown diamonds.  There are many reasons to believe that they are an undesirable alternative to natural, mined diamonds.  For all the important jewelry in your life, there is no substitute for a natural, mined diamond.

For some people, imitations of the naturally, mined diamonds have been an ongoing quest.  During that search, the natural diamond mining business has been building communities and entire countries’ economies with the timeless rarity, beauty, and durability of nature’s hardest and most brilliant gem.  Imitators are trying to ride on its success.

Natural, mined diamonds have limited availability, require great effort and
expertise to uncover. 
Their attributes make them valuable.  The naturally mined diamond business has endured for 1000s of years.  There is no shortcut to the brilliance and lasting value these diamonds offer.  The only lasting attribute of the imitation diamond quest is the failure to hold their value.  The imitator’s cycle starts with the excitement and high price at the moment of introduction and ends with the fall when the value is settled down to the cost of their mass production.

Eight years ago, a woman came into our jewelry store with a pair of moissanite
earrings, with the intentions of trading them in for a pair of naturally mined
diamond earrings.  Moissanite was the “diamond alternative” of that time.  She had purchased her earrings for $2200.00, which had they been natural, mined diamonds would have cost $4500.  Unfortunately, she was surprised to learn that the moissanite had no trade-in value.  If they were natural, rare, and as highly prized as natural diamonds, they would have had a great trade-in value.  I was apologetic because I felt moissanite was something a knowledgeable jeweler never should have sold to her.  Her $2200 purchase was only worth the value of the gold that the moissanite was set in.  While she thought she saved $2300, she actually lost.

The lessons we have learned from previous imitators are being taught by the lab grown diamond.  In late March 2018, 1.00-carat lab grown diamonds were being sold at $4000.00, when a comparable naturally mined diamond was being sold at $8000.00 DeBeers stepped in on May 29, 2018, and reset the market for lab grown diamonds.  This irrefutable move has set the value at $800 for a one carat lab grown diamond.  I would not want to be the jeweler who sold the $4000.00 lab grown diamond that is now worth $800.00.  I also would not want to be the buyer of the $4000.00 lab grown diamond, especially when they decide to upgrade the size on their engagement diamond on a 5th or 10th anniversary.  Unfortunately, someone is going to lose.

Natural, mined diamonds have held a solid value throughout history.  Imitation diamonds have been a low value, fun alternative.  There is no substitute for the rare beauty of the natural, mined diamond.  Let’s continue the tradition.