As the entire industry analyses sanctions against sale of Russian diamonds by the G7 countries being implemented from the 1st of March 2024 and the continued positive growth of lab grown diamonds as the more ethical alternative, dealers and consumers are contemplating which way to turn in the long run when they choose to buy and sell diamonds.
When one looks at major jewellery auction house results, statistics show continued strength in natural mined diamond sales as a keeper of value in the very long run. This is true in cases of very high end valuable and branded jewellery. What about the normal consumer who does not have hundreds of thousands of pounds and dollars? Where do they go in this climate?
We at Marlows continue to feel there is space for both mined and lab grown diamonds with new markets like India developing for lab grown diamonds. On the other hand, France has re-initiated a new law from 2002 prohibiting selling of lab grown diamonds as diamonds, insisting the word synthetic be added to the sale of lab grown diamonds. The word “synthetic” seems a harsh word to use as lab grown diamonds are 100% carbon and grown from a diamond seed. The French may be protecting their high end diamond and jewellery brands like LVMH in the process when making it illegal to sell lab grown diamonds without the word synthetic being added. This also aims at “protecting” the natural diamond industry. Marlows, as an ardent believer of free trade and simple economics of demand and supply, believe the natural mined diamond industry does not need protecting. It should be able to stand on its own feet as it has for hundreds of years.
From our analysis, what has actually happened with the mined diamond industry is an actual price correction of 30% which has been a long time coming. Due to the option of lab grown diamonds, the mined diamond industry have realised the price increases pre and then post COVID was unsustainable. Mined diamonds have now become affordable for the normal consumer and now presents a good value option to lab grown diamonds specially in the £5000-£50000 price bracket.
We at Marlows will continue to stock and sell both mined and lab grown diamonds for your engagement ring and every day jewellery to suit the needs of every customer who walks through our doors, and we will continue to sell lab grown diamonds as diamonds which has exact chemical properties to mined diamonds. Obviously in addition to diamonds, we stock precious gemstones as an alternative to diamonds should you choose to have something different.
We hope this industry insight according to our analysis has been helpful. Should you want a one to one consultation about further information on this blog, please call us on 02074051477.
