Editor’s Note
The Gemological Institute of America (GIA) will cease using the term “synthetic diamond” on its certificates starting in July, adopting “lab-grown diamond” instead. This follows a similar 2018 FTC guideline update, reflecting the industry’s shift toward more neutral terminology for these stones.
The label ‘synthetic diamond’ is gradually exiting the historical stage. Recently, the authoritative gemstone appraisal and grading institution GIA (Gemological Institute of America) announced that starting from July, it will adopt new certificates and will no longer use the term ‘synthetic diamond,’ instead changing it to ‘lab-grown diamond.’ This move echoes last year’s action by the FTC (Federal Trade Commission): it no longer recommends using the descriptor ‘synthetic’ for diamonds not mined naturally.
With lab-grown diamonds receiving official recognition, their spring in the jewelry field seems to be arriving even faster. Shen Xiangyin, a professor at the School of Gemology at China University of Geosciences, told reporters that at the Hong Kong International Jewellery Show in March this year, a dedicated area was set up for cultivated diamonds and gemstones, with about thirty to forty exhibitors showcasing and selling there.
Shen Xiangyin emphasized that the concept that must be clarified is that cultivated diamonds and natural diamonds are both real diamonds. The two have identical structure and composition, and possess the same physical and chemical properties; they belong to the same category of mineral gemstones. Common market items like moissanite and cubic zirconia, from a gemological perspective, have completely different structures and compositions from cultivated and natural diamonds and are considered imitations.
There are two mainstream methods for cultivating diamonds: High Pressure High Temperature (HPHT) and Chemical Vapor Deposition (CVD). Shen Xiangyin introduced, “Currently, both technologies have achieved considerable development. Using CVD to produce two- to three-carat diamonds is basically problem-free. HPHT has even greater economic prospects and can already produce cultivated diamond rough stones of seven, eight, ten, or even one hundred carats.”
In May last year, diamond giant De Beers announced its entry into the cultivated diamond jewelry field, launching a new brand named Lightbox, sparking heated discussion in the industry and leading many to believe the trend for gem-grade cultivated diamonds had arrived. In fact, China has long been a major producer of lab-grown diamonds. According to the “Report on the Development Status and Prospects of Synthetic Diamonds” released in 2016, China’s synthetic diamond output accounts for over 90% of the global total.
Henan has consistently been a major province for lab-grown diamond production. The aforementioned report listed eight major domestic synthetic diamond manufacturers, five of which are located in Henan, distributed in places like Zhengzhou and Xuchang. These enterprises mainly produce cultivated diamonds for industrial applications, but in recent years, they have also been gradually transforming and attempting gem-grade cultivation work.
For example, Zhengzhou Sino-Crystal Diamond Co., Ltd. has established two brands, MULTICOLOR and Brisa & Relucir. According to its annual report released on April 16, during the reporting period, the company actively strengthened market guidance for gem-grade large single crystal diamonds and promoted the value of large single crystal diamonds in the consumer field. At the same time, the company increased investment in a 7-million-carat gem-grade diamond project. Based on the production of carat-grade white and yellow diamonds, it can produce rare pink and blue diamonds, with hopes of benchmarking against Chow Tai Fook Jewellery Group in similar business segments.
In addition to the transformation attempts of large enterprises, new entrants also include relatively smaller-scale self-created brands, such as Caraxy, which has been established for four years.
Caraxy is one of the earliest domestic companies to promote cultivated diamonds. CEO Huo Sheng, when interviewed by reporters, stated:
Huo Sheng said their factory uses the HPHT method to cultivate diamonds. On one hand, China’s research and development has primarily followed the HPHT direction, providing a strong foundation. On the other hand, the high-temperature, high-pressure cultivation method is closer to the growth state of natural diamonds.
In fact, the cost of cultivated diamonds is not low; initial factory buildings, equipment, and later R&D all require relatively high investment. Caraxy initially positioned itself as a wholesaler, providing new rough materials to jewelry brands. However, Huo Sheng now believes that from the perspective of upstream suppliers, the technological gap between major domestic manufacturers is not particularly large. Even if some manufacturers are technologically leading and can produce two- to three-carat cultivated diamonds, as the industry matures, everyone will develop to the level of producing two- to three-carat diamonds, which is already the upper limit of the mainstream consumer market. Developing towards five or six carats or even larger sizes is meaningless because consumers won’t buy diamonds that large. Therefore, he judges that future competition will not be in technology but in cost control. At that point, the rough material end will become a price war. In the long run, the added value of selling rough materials is not high and is easily affected by industry cycles, so the company is also laying out branded jewelry retail.
Not only are domestic companies rising, but international brands are also eyeing the Chinese market. At the end of last year, the US-based lab-grown diamond company Diamond Foundry announced its entry into the Chinese diamond market, establishing a wholly-owned subsidiary in Shanghai and a diamond polishing factory in Xi’an.
Regarding jewelry retail, the price of cultivated diamonds is significantly lower than that of natural diamonds, but brands with different positioning also have their own distinctions. It is understood that Lightbox’s pink, blue, and white diamonds are all priced at $800 per carat. Caraxy’s single diamond rings: 50-point sizes are priced between 5,000 and 8,000 yuan, 1-carat sizes are over 10,000 to over 20,000 yuan. Diamond Foundry’s single diamond rings: 50-point sizes are around 7,000 yuan, customized diamonds of 1.5 carats and above are priced from over 10,000 to over 30,000 yuan. Although Multicolor produces and distributes diamonds from 0.01 to 3 carats and cultivates full-color and fancy color diamonds, its micro-stores and Tmall flagship store mainly focus on smaller-carat multi-diamond jewelry, with prices ranging from over one thousand to over nine thousand yuan.
