Are Lab Diamonds Good for Investment or Not?

“Lab-grown diamonds are not popular.” If we say this, we would be telling a blatant lie. That's because Lab Diamonds Dallas TX are even chosen by celebrities, such as Bindi Irwin, Nikki Reed, Penelope Cruz, Meghan Markle, etc. You can find quality lab-grown diamond jewelry from shops like Eaton Custom Jewelers, but are they worth investing in? We answer this question in today's blog, so stay tuned with us till the end. 

Factors to Consider

If you are thinking about whether lab-grown diamonds are worth investing in or not, you need to consider a few factors. We list these factors in the following points, so keep reading. 

Consumer Awareness and Attitude Towards Lab Diamonds

As per reports, only 9% of consumers were aware of and wanted to buy man-made diamonds in 2010. However, this percentage rose to 51% in 2018, and has increased even further in the past few years. Even though brands didn’t put a lot of effort and investment into their marketing, lab-created diamonds have successfully made their mark in the market. This is only because consumers are realizing the value of man-made diamonds and prioritizing them over mined diamonds. 

Lab-Grown Diamond Online Searches

At present, people are increasingly choosing lab-grown diamonds over natural ones. This is because lab diamonds have fewer impurities, are more affordable, and are eco-friendly compared to natural diamonds. The online search for high-quality lab-grown diamonds has tripled in the last decade. Millennial consumers of lab diamonds also increased significantly.

Market Size and Potential of Lab Diamonds

Reports suggest that the market size of lab diamonds will increase significantly over time. Analysis by Citi estimates that the lab-grown diamond industry represents 2% of the overall rough diamond market; however, it is likely to rise to 10% by 2030. Every individual connected to the lab-grown diamonds, whether they are manufacturers, polishers, or jewelry designers, is admiring these gems.

Trade Perspectives-Lab-Grown Diamonds

The margins of lab-grown diamonds are between 10% and 26% for manufacturers and retailers, which is significantly higher than those of natural gems. More than 70% of retailers, manufacturers, and loose lab-diamond dealers reported that they are happy with the profitability of lab-grown diamonds.

With this profit margin, now 85% of retailers are looking forward to increasing their lab diamond inventories. If reports are to be believed, inventories include 10% to 40% lab-grown diamonds, which is about to change very soon. In short, jewelry portfolios and inventories are prioritizing man-made diamonds over natural diamonds.

Are Lab-Grown Diamonds Good For Investment

Although lab-grown diamonds face challenges in the market, their demand is growing constantly, which is why they are a good option to invest in. All the reports indicate that Lab Diamonds Dallas TX, has started and will conquer the market in the near future. 

Do you want to buy quality lab diamond jewelry? Then, contact Eaton Custom Jewelers and no one else. We are a trusted jewelry shop delivering quality man-made diamond rings, pendants, bracelets, etc. We also deliver jewelry appraisals, repairs, and customisation services, within your budget. Visit our store and buy your favorite jewelry at budget-friendly prices.