Editor’s Note
This article highlights a surprising demographic split in the lab-grown diamond market, as reported by a retail CEO. It underscores how different generations are drawn to synthetic stones for distinct reasons, from budget to ethics.
Randy Cole, CEO of jewelry retailer Diamond Vault of Troy, breaks down the perhaps surprising demographics of natural and synthetic demand in the latest episode of the Rapaport Diamond Podcast.
Cole sees two main age groups that buy lab-grown diamonds at his appointment-only store in Troy, Michigan: 34 and younger, and 60 and over, he told Rapaport’s Joshua Freedman.
Typical under-35s prioritize a house, a car and experiences, Cole explained. They’ll buy a lab-grown diamond and invest any excess cash in a 401(k) pension plan.
In terms of exceptions, “we get a little bit in the younger group that are going to natural,” he continued. “We don’t get too many in the older group that are going to natural. Most of the people who are older that are coming in for 30th anniversary, 50th anniversary, they’re going lab. They want to save the money. This is a tough economy.”
He also observes a migration to lab-grown among couples buying engagement rings for second marriages. The weakening of natural-diamond prices has made them reluctant to repeat the investment they made before their first marriage, he commented.
Around 90% of sales at Diamond Vault of Troy are lab-grown by units, and 70% by value, Cole reported. He is, however, seeing many consumers gradually shift back to natural, wishing to stand out from friends who wear a stone that so big it’s obviously lab-grown.
Speaking on December 23, Cole also reflected on a “really good” holiday season, with high gold and silver prices driving investment demand for gold and silver.