Lab-grown diamonds yet to dazzle the Indian buyer

Would you purchase a lab-grown diamond that’s priced at only a fraction of the worth of a pure diamond? It’s visually alike, chemically related and produced extra sustainably than a mined diamond. Solely, it isn’t as uncommon.

Through the years, the ecological and economical attract of lab-grown diamonds (LGDs) has attracted dazzling investments from main jewelry manufacturers the world over. LVMH (Moet Hennessy Louis Vuitton), the father or mother firm of luxurious manufacturers Bulgari, Tiffany & Co and Hublot, just lately joined different traders in pumping US$ 90M in an Israeli LGD producer — Lusix, that makes use of solely photo voltaic vitality in its diamond labs.

Apparently, De Beers group, the worldwide main participant in mined diamonds, was one of many first main manufacturers to launch a complete jewelry line of LGDs referred to as Lightbox in 2018 with an funding of US$ 100M. Moreover, De Beers has arrange its very personal diamond synthesis lab in Portland, which might generate 2,00,000 stones a yr. One carat of LGD at Lightbox is priced at US$ 800 — practically 60-80% lower than a natural-mined diamond of the identical weight!

The ‘greener’ selection?

LGDs are cheaper and greener than pure diamonds. A report by the Diamond Producers Affiliation and S&P World states that the greenhouse fuel footprint per one carat of polished pure diamond is 160kg. An LGD, grown and polished, has a carbon footprint of solely 8.17 kg CO2e per carat, in accordance with Pandora, a number one international jewelry model that just lately introduced it now not makes use of mined diamonds.

Artificial diamonds like cubic zirconia, moissanite or crystals have been round for many years. “What units LGDs other than different sorts of artificial diamonds is that they’re grown by simulating the circumstances of a pure diamond’s progress. Carbon, various ranges of stress, and temperatures are utilized on a diamond seed or diamond substrate to develop it right into a desired kind of diamond that’s chemically, bodily and optically just like a pure diamond”, explains Shashikant Dalichand Shah, chairperson, Lab-Grown Diamond and Jewelry Promotion Council (LGDJPC).

Mined diamonds type naturally under the floor of the earth, over a number of years, whereas LGDs might be created in a lab over a interval of only some weeks by means of two processes: Excessive Stress-Excessive Temperature (HPHT) or Chemical Vapor Deposition (CVD). Shashikant explains, “LGDs and pure diamonds encompass pure carbon in the identical crystalline type. An skilled can distinguish between the 2 with assistance from a high-tech machine, however not with the bare eye.”

Pure vs artificial debate

Earlier this yr, Titan firm (Tanishq & Caratlane.com) made an fairness funding of US $20 million in Clear Origin, an American retailer of LGDs and LGD jewelry, by means of its wholly-owned subsidiary TCL North America, Inc. ‘Are lab-grown diamonds actual? The reply is 100% sure!’ states Clear Origin’s web site.

LGDs are at the moment perceived as a definite territory within the jewelry market and never a direct competitors to mined-natural diamonds. ”They’re an important start line for shoppers aspiring to personal diamond jewelry”, says Smit Patel, Convener, Lab-Grown Diamond Panel, Gem & Jewelry Export Promotion Council (GJEPC). “In accordance with estimates, the pure diamond pipeline is valued at about $80 billion when it comes to diamond jewelry on the retail stage”, he provides. However, the LGD market share appears to be rising steadily and is anticipated to account for 10% (estimated at 19.2 million carats) of the whole worldwide diamond market by 2030, in accordance with statistics by GJEPC.

Speaking numbers

“We consider that diamonds aren’t solely ceaselessly, however for everybody”, explains Mads Twomey-Madsen, Vice President, international communications and sustainability at Pandora, which sells jewelry in additional than 100 nations by means of 6,800 factors of sale. “For example, we see that lots of our prospects wish to purchase a diamond ring for themselves to mark an necessary milestone of their lives, which is able to take diamonds past the classical engagement and wedding ceremony events”, he provides.

“Lab-grown artificial diamonds are flawless! Pure diamonds alternatively, can have some impurities — although invisible to the bare eye — it’s this pure distinction that helps in figuring out them. That is additionally why pure diamonds are perceived to have a better intrinsic worth, and proceed to be in larger demand,” says Ramesh Kalyanaraman, Govt Director, Kalyan Jewellers, including that by means of each classes can “co-exist individually,” Kalyan focuses on “all-natural, licensed diamonds.”

Thus far, “only a few Indian jewellers are retailing lab-grown diamonds,” says Smit, including that almost all of reduce and polished LGDs are exported to the US. India, nevertheless, is selecting up tempo within the manufacturing and exports of LGDs.

“India produces 30 lakh tough LGDs, per yr”, says Shashikant Dalichand Shah of LGDJPC. India exported USD 1.3 billion value of CVD lab grown diamonds in 2021-22. “When it comes to acceptance of LGDs there is no such thing as a downside however there isn’t sufficient consciousness,” says Parag Agarwal, CEO of Fiona Diamonds, which sells LGDs on to prospects, on-line in India. He provides, “We cater principally to professionals, self-purchasing girls who don’t understand jewelry as an funding.”