Lab-grown diamonds in demand as prices of natural diamonds, gold skyrocket

As the price of natural diamonds continues to rise, consumers are rapidly turning towards buying diamonds made in laboratories, which are 70-90% cheaper than natural diamonds. 

“The difference in price is the reason why demand for lab-grown diamonds is on the rise. However, the income from these diamonds is decreasing,” said Dinesh Navadiya, former president of the Surat Diamond Dealers Association.

The jewellery made with lab-grown diamonds can be sold just like conventional jewellery, as these diamonds also come with a certificate.

Rising gold prices have also turned jewellery consumers towards lab-grown diamonds. The rising prices of imitation jewellery are also a factor in a boost in the lab-grown diamond business.

In Surat, 15-17 large units manufacture lab-grown diamonds. However, the new players may find it hard to survive in the business due to low margins, experts believe.

Lab-grown diamond exports are increasing to the US, Hong Kong, Bangkok, the United Arab Emirates, and the European Union countries.

The figures below show how the lab-grown diamond market was the least affected in terms of business last year.