【Mumbai, Indi】Synthetic Diamond: Prices of Lab-Grown Diamonds Fall, Yet Consumers Pay More; Details Inside

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Editor’s Note

While wholesale prices for lab-grown diamonds have plummeted due to overproduction, a significant gap persists between this trend and retail costs. This article explores the market dynamics causing consumers to pay more, even as the underlying commodity becomes cheaper.

HAL के बाबू 'बोनस' के लिए करते थे राष्ट्रीय सुरक्षा से खिलवाड़, रिटायर्ड एयर मार्शल दीप्तेंदु चौधरी का चौंकाने वाला वीडियो
Prices Fall, Yet Consumers Pay More

Sudha Shrimali, Mumbai:
Prices of synthetic diamonds, or Lab Grown Diamonds (LGD), are continuously declining. However, despite this, customers are paying higher prices. Due to overproduction in global markets, the prices of Indian lab-grown diamonds fell by 45 percent in FY24. Yet, higher prices are being charged in the market.

“With gold becoming expensive, people’s attraction towards LGD has increased somewhat. People feel they are getting a good deal. But that is not the case. Synthetic diamond trade is happening at 99 percent discount. There is no fixed benchmark for its prices. Because of this, large jewelry businesses are staying away from it for now.”

– Kumar Jain, Principal, Umedmal Trilokchand Zhaveri

Increase in Sales

Experts say that compared to natural diamonds, LGDs are much cheaper. They also look the same. In markets like the USA, their sales are higher. In India, sales are gaining momentum due to government incentives. However, some industry experts say that some jewelers are also pushing lab-grown diamonds to achieve higher profit margins.

Reasons for Falling Prices

According to Shazil Shah, Director of Maitri Lab Grown Diamonds, one reason for the fall in LGD prices is that suddenly many people have entered the field for production. Now, the decline in synthetic diamond prices is causing losses to manufacturers.

“When lab-grown started, it was available at a 65-70 percent discount compared to natural diamonds. But later, when everyone started making diamonds quickly in labs, its oversupply began. The situation is such that according to the Rapaport Price, LGD, which was available at a 60-70 percent discount from natural diamonds, is now available at a 99.9 percent discount. In the Rapaport Price, the price of LGD is determined according to natural diamonds.”

– Siddharth Sacheti, CEO of Jaipur Gems, a leading retailer in natural diamonds

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⏰ Published on: May 25, 2024