will laboratory grown fancy colored diamond be the future for the diamond industry?

[Mike Asscher]

Hi

I am very curious what you all think about the upcoming of laboratory grown fancy colored diamonds.

Do you think this will be the future for the diamond and jewelry industry?
Do you think this is a great opportunity for all who love fancy colored diamonds?
Do you think this can be a huge thread to the diamond industry? or does this create the opportunity for all mankind t finally own mother natures most spectacular miracles?

Can laboratory grown diamonds go the same direction as the cultured pearl has gone to?

I my self am passionate about fancy clored diamonds and this topic is such an interesting topic as so many people have so many different thougts.

Will you share your thought with me and open up the discussion as the best ducation of this topic can only be reached by talking about it with all.

Thank you in advance for participating.

 

[Karl_K]

Date: 11/21/2009 4:46:43 AM
Author:Mike Asscher

Hi

I am very curious what you all think about the upcoming of laboratory grown fancy colored diamonds.

Do you think this will be the future for the diamond and jewelry industry? no, but they will be a larger part of it I think

Do you think this is a great opportunity for all who love fancy colored diamonds? yes

Do you think this can be a huge threat to the diamond industry? or does this create the opportunity for all mankind t finally own mother natures most spectacular miracles?
opportunity for the industry both in color and white. it is only a threat to those unwilling to change

Can laboratory grown diamonds go the same direction as the cultured pearl has gone to?

I don't think they will take over the market like cultured pearls have

If the proper rough was available I would seriously consider having some Octavias cut from it but the rough is not suitable.
I have toyed with the idea of designing a cut specifically for it.
I would jump at it if a client wanted to hire me to do so.

 

[Alexei Zarakhani]

Date: 11/21/2009 4:46:43 AM
Author:Mike Asscher

Hi

I am very curious what you all think about the upcoming of laboratory grown fancy colored diamonds.

Do you think this will be the future for the diamond and jewelry industry?

Do you think this is a great opportunity for all who love fancy colored diamonds?

Do you think this can be a huge thread to the diamond industry? or does this create the opportunity for all mankind t finally own mother natures most spectacular miracles?

Can laboratory grown diamonds go the same direction as the cultured pearl has gone to?

I my self am passionate about fancy clored diamonds and this topic is such an interesting topic as so many people have so many different thougts.

Will you share your thought with me and open up the discussion as the best ducation of this topic can only be reached by talking about it with all.

Thank you in advance for participating.

Hello Mike,

Thank you for starting this discussion. However, my answers will be "biased" since I''m directly involved in a production and marketing of lab grown diamonds.

1. Lab grown diamonds, both fancy colored and colorless, are already a part of the diamond industry. They are neither imitations like CZ or moissanite, nor they are just "synthetics" as some industry players tend to portray them - first and foremost THEY ARE DIAMONDS. For some, they are an eco-friendly and conflict-free alternative to their mined counterparts, especially it is the case for colorless diamonds. For others, they are low cost alternative as in the case of lab-grown blues, yellows and pinks. As production capacity will grow those markets will be developed further and those niche markets will become mainstream ones.

2-3. I tend to think that natural and lab grown diamonds will coexist for years to come. Speaking about colorless diamonds, lab grown and natural diamonds cater to different clientele groups. No doubt, that socially responsible aspect of man-made diamonds in a long run will attract more customers, especially younger generation. As for fancy colored lab grown diamonds, I don''t think they can become the "future the the diamond industry". They will always remain in minority vs. colorless diamonds. However, the size of the market for fancy colored diamonds will grow. First of all, they became more affordable (fyi, our 1ct VS blues are $10,000 per ct vs. $300,000 for similar natural) and, secondly, they became readily available in a variety of colors and sizes, so a designer can create jewelry pieces which weren''t possible to do before. Can you get, cost aside, 50 matched fancy intense blue 50 pointers in natural diamonds? It opens new perspective for the fashion jewelry industry, a great opportunity...

4. Cultured pearls overtook natural ones for two main reasons - they are pearls (not imitation) and they are no less beautiful than natural ones Now, with diamonds it''s a bit more complicated than that. As in the case of pearls, lab grown diamonds are real diamonds and they are not less beautiful than their mined brothers. The difference between them lies in their origins. Natural diamonds are billions years old and, as traditional diamond industry suggests, because of that they possess certain emotional/romantic/whatever value... But their origin brings along also negative aspects - environmental and conflict - and nowadays those start to overshadow the perceived "romantic" aspect. Values tend to change and it happens very quickly - what matters now may not matter at all in a decade... We see that more and more customers turn to lab grown diamonds for their environmental and socially-responsible values. Majority of our customers are bridal couples and they find more emotional value in lab grown diamonds than in natural ones (FYI, we price our colorless diamonds on par with similar natural to remove any price differential. So, that is their conscious choice). That is a new reality, a new trend. It needs to be seen how it develops over time.

Will a diamond origin matter in the long run?

5. This is 1.12 SI1 fancy light blue asscher. See it here: BA08

 

[Richard Sherwood]

I have given this a lot of thought over the years.

Synthetics have their place though out history. Practically every natural gemstone has been synthesized. Ruby, Emerald, Sapphire, Emerald, Alexandrite, Opal and even Amethyst.

In each case, after considerable anxiety and tribulation among the trade and the public, the synthetic has found a niche market of its own and ceased to threaten the natural market.

Consider now the synthetic diamond market. When they first came about (in fancy colors only), there was considerable debate as to whether they would be the bane of the natural diamond market.

But after a while, it became clear that they could easily be differentiated from natural stones by their inclusionary growth characteristics, along with other signs.
Once it becomes clear that a synthetic can be differentiated from a natural, the synthetic becomes relegated to a secondary market. A “niche” market, if you will.

This has been the case with every synthetic which has been developed, even though sometimes the synthetics are more beautiful than the natural. Take the case of synthetic versus natural rubies. The truth is that the most basic of synthetic rubies can be more beautiful to the lay person than the majority of natural rubies, yet they cost pennies on the dollar compared to naturals.

Take synthetic versus natural amethyst. One of the signs of a synthetic amethyst is that it can just look “too good’ compared to the natural. So the synthetic, once indentified, falls into a lesser, secondary market which commands far less of a price than then natural.

Does this make sense? To the practical, non-purist kind of buyer it makes absolutely no sense. They say “Well, it’s the same mineral, only lab grown, so why shouldn’t it be as good (or even better), than a natural diamond.”

But for some reason, people tend to prefer natural (earth grown) over synthetic (lab grown).

In my opinion, there is something deeply ingrained within the human psyche that makes them prefer natural versus lab grown. They might wear a lab grown piece as a “fun” piece, but they will treasure a fine natural piece in their heart as a “special” piece. I know I feel this way. I am a trained, experienced gemologist. I know all the science of lab grown versus natural gemstones. Yet, their is something deep within my gut that makes me prefer a good or fine quality natural gemstone over a fine or extra fine quality lab created gemstone. I will pay extra money for the natural versus the synthetic, and this is from a person that knows all the facts and all the differences.

I think lab grown diamonds will command their own as a “niche” market, but I feel they will never wipe out or overtake the “natural” market. I also feel a fine quality natural gemstone will have a better resale value than a fine quality lab created gemstone, and that appeals to my practical nature.

It reminds me of print art versus original art. The prints can look spectacular, and will have a considerable market on their own. But that market will never impinge on the natural market.

 

[Alexei Zarakhani]

Date: 11/22/2009 11:42:56 PM
Author: Richard Sherwood

I think lab grown diamonds will command their own as a “niche” market, but I feel they will never wipe out or overtake the “natural” market.

Speaking about definitions... How do you define a "niche"? By volume in carats? Or in dollars? Let''s take blue diamond(type IIb) market. Well, it''s a niche by itself as well as the rest of colored diamond market. Anyway, carat-wise AOTC Group produced and sold more blue lab grown diamonds in 2009 than was actually mined over the past decade (it''s a hard fact, not a prediction). So, is it a niche within the blue diamond market or part of this market or the market by itself? Where would you place blue lab grown diamonds?
Please note, I do not imply that lab grown diamonds can successfully compete with unique one-of-a-kind name-bearing natural diamonds. But apart from those, there are lots and lots not so rare, absolutely ordinary and sometimes of inferior quality natural diamonds available in abundance...

Speaking of predictions... I truly believe that over time lab grown white melee diamonds will overtake mined counterparts. Prices for both will be on par. White synthetic melee will be well-accepted product. Unfortunately, at this moment I can''t put a time frame on it. For sure, it won''t happen overnight, it will be a lengthy process...

Happy holidays and a very happy New Year!

 

[Garry H (Cut Nut)]

Date: 11/21/2009 4:46:43 AM
Author:Mike Asscher

Hi

I am very curious what you all think about the upcoming of laboratory grown fancy colored diamonds.

Do you think this will be the future for the diamond and jewelry industry?
Do you think this is a great opportunity for all who love fancy colored diamonds?
Do you think this can be a huge thread to the diamond industry? or does this create the opportunity for all mankind t finally own mother natures most spectacular miracles?

Can laboratory grown diamonds go the same direction as the cultured pearl has gone to?

I my self am passionate about fancy clored diamonds and this topic is such an interesting topic as so many people have so many different thougts.

Will you share your thought with me and open up the discussion as the best ducation of this topic can only be reached by talking about it with all.

Thank you in advance for participating.

http://www.idexonline.com/portal_FullEditorial.asp?id=33522
Seems you guys already made the decision.
I imagine you saw the article i co-authored in IDEX magazine about a year ago.
I am all for it - and as long as the companies and people involved behave them selves - that is great.

But you gotta do something about calling them Mine diamonds - that is very misleading