At Marlow’s, we have been selling fine diamond and gemstone jewellery for the past 75 years. We have noticed positive and negative trends in the industry over long periods of time.
Lab grown, man made or synthetic diamonds have recently been a major disruptor in the industry and we have seen a significant surge in demand for synthetics especially in the UK and USA with limited demand in Europe and Asia.
As the supply of lab grown diamonds is unlimited, values have fallen by over 90% since 2021 when this trend took off, influenced predominantly by Google and Social Media. At dealer level, the cost of a 1ct decent quality lab grown diamond has dropped from £2000 to £200 with further falls expected due to its unlimited supply. During the same period, as disruption took effect, natural diamond prices have fallen by 40%. Cost of a 1ct decent quality GIA natural diamond has fallen from £5000 to £3000 and is now stable as demand for natural diamonds grow at these lower price levels.
Over 95% of customers who opt for lab grown diamonds in our stores do so because of the price differentials and this accounts for 50% of our sales by volume. On the other end, luxury jewellers who sell only natural diamonds have seen a resurgence in demand as customers educate themselves with associated values and a move away from synthetic diamonds. Natural gemstone set engagement rings continue their upward trend.
We feel lab grown or synthetic diamonds are here to stay and will continue to be an offering by the company, but as values change these will over time become part of the fast fashion jewellery trend, associated with brands like Pandora and Monica Vinader with negligible resale values, sold predominantly in charms and other pieces of fashion jewellery.
When it comes specifically to engagement rings, associated with commitment and long term partnerships, things will be slightly different. Diamonds and fine gemstones have been a store of value at time of need and couples will eventually start realising that stored value rather than fast fashion is strongly associated with commitment.
The past four years has given us a perspective of lab grown diamonds, customers who paid £20,000 at retail for some lab grown diamonds in 2021, now realising the values to be near zero has hurt the industry overall leading to a decline in customer confidence in the entire industry.
In summary, if cost is your main factor, continue to opt for lab grown or synthetic diamonds but expect no resale values in future. If non cost factors drive you, choose a natural diamond with some form of future stored value and upgrade options.
Marlow’s – A UK leader in the supply of GIA Certified Diamond Engagement Rings
