The environmental concerns that are attached to mining activities, regardless of what kind of mining activity, be it mining for gold, rare earth or precious stones such as diamonds, the environmental and ethical implications of mining are have heavily influenced modern purchasing habits especially among the millennial and Gen Z consumer group which incidentally make up the biggest consumer segment the world has ever seen.
The natural diamond trade has always been mired in controversies and these controversies have given lab grown diamonds a competitive advantage over conventional gems that has lead the industry to the state that it is in now. The advent of lab grown diamonds in the initial stages caused a series of disruption which has resulted in natural stones losing value as consumers and investors alike moved away from seeing diamonds as an investable asset.
In contrast lab grown diamonds which are incidentally identical to natural diamonds in every way, offer a variety of positives which go far beyond just lower prices. Added to the fact that lab grown diamonds do not come with any ethical related baggage renders lab grown diamonds more preferable compared to natural diamonds. The preference is attributed to the fact that the new consumer generation’s view lab grown jewellery as a practical option and for the most part they deem them as ‘wearable investment’.
This means that they are able to afford and purchase more varieties of diamond jewellery albeit they are jewellery that are fitted with lab-grown diamonds as opposed to only owning one or two diamond jewellery pieces that cost a year’s worth of income. From a practical point of view the new generation of consumers are now able to adorn engagement rings with bigger rocks that cost 80% less than mined diamonds.
In terms of quality, lab grown diamonds are generally rated higher within the context of the 4Cs. The higher quality of lab grown diamonds compared to natural diamonds however does not add more value to them as these stones are not scarce as natural diamonds are and therefore do not hold any form of ‘store value’.
The current state of the environment is another driving factor that has pushed lab grown diamonds deeper into the market. Lab grown diamonds consume significantly lesser resources such as energy, water and labour to produce compared to natural stones which requires an assortment of machinery that utilise both fossil fuel, water, electricity, various types of chemicals and intense human labour.
When all these factors are put together, it becomes quite evident as to why lab grown diamonds have moved into the market as far as they have. Even the diamond engagement ring market segment is currently leaning towards lab grown stones as each day passes.
More and more consumers are accepting the fact that lab grown diamonds are indeed the better and more practical option leaving the natural diamond market as a niche market reserved for those who value nostalgia.
