Some longtime wholesalers of mined diamonds are now supplying lab-grown, while others remain adamant about selling mined diamonds only — and some offer both. But all agree, the choice is up to the retail customer.
NY: Glad of lab-grown“We get new customers for lab-grown diamonds every day,” said Hemakshi Motka, manager of New York-based wholesaler Lab Grown Diamond Inc. “We don’t have to look for them.”
Based on strong holiday sales, she anticipated increased growth for this year. “Our retail clients were really happy after the Christmas season. They told us that their customers were glad they were offered the option of lab-grown.”
More and more consumers know about lab-grown, Motka explained, pointing out that synthetics are available at major department stores such as Macy’s and JCPenney, and big-box stores including Sam’s Club and Costco.
This family-owned business was a wholesaler of mined diamonds for over 25 years before it switched to supplying only lab-grown approximately a year ago. But Motka believes there is a place in the market for both types of diamonds.
“Lab-grown is not taking over from mined diamonds,” she elaborated. “It is just creating another segment of the diamond market, and they are a much better deal than cubic zirconia.”
While economic factors cut across all age groups, she added, millennials in particular appreciate lab-grown stones, viewing them as an eco-friendly option that has no ties to so-called “blood diamonds.”
“Think of it as the pearl market, which includes natural and cultured pearls. They may appeal to different customers, but they are both being sold,” she observed.
Philadelphia: Natural value“The economy is strong. We’ve already sent out a slew of larger diamonds [4-carats and up],” said Daniel Geil, national sales manager at wholesaler and manufacturer GN Diamond. And while the Philadelphia, Pennsylvania, company is set to be “well-ahead” of a “record-breaking” 2018, it has had no requests for lab-created stones.
Lab-grown can never replicate the monetary or emotional value of a diamond, Geil argued. Historically, diamonds do not lose their value; they appreciate over time. Furthermore, he said, the value of lab-grown has decreased 60% in value over the last few years in the diamond market.
GN Diamond offers its own branded diamond, the 81-faceted Forever After, complete with marketing support. “Customers want to know the story behind the diamond, which gives mined diamonds a distinct advantage,” explained Geil.
To that end, he has incorporated technology to help the company’s retail partners educate their customers. By downloading mobile barcode reader I-nigma, customers can scan a diamond — without removing it from the case — and immediately have access to a light-performance report, 3D image, Gemological Institute of America (GIA) certification, and a gem print that maps out any inclusions.
“The value of a mined diamond goes to the heart of what the end-customer is purchasing,” said Geil. “Instead of a 1-carat, the jeweler can offer a 90-pointer that satisfies the customer’s needs and becomes a walking billboard for their store.”
Chicago: Offering options“We take an open-minded entrepreneurial approach to responding to the needs of our clients, which is why we are wholesalers of both mined and lab-grown diamonds,” said Louis Price, chief operating officer at M. Geller in Chicago, Illinois. “About five years ago, we connected with one of the original lab-grown producers and received positive feedback from our national client base,” he related, citing significant double-digit growth in lab-grown sales.
“Lab-grown is very important to our total business; we are very focused on it for future growth,” added sales director Zach Grosser. “Approximately 18 months ago, we introduced New Dawn Diamonds, a branded lab-grown collection with a full complement of marketing support.”
Today’s customer has unlimited access to information through a cellphone, Price pointed out. “What is particularly interesting about the awareness of lab-grown is that it’s mostly viral. It’s organic. It’s Instagram. It’s social media.”
Price stressed his company was an advocate for both mined and lab-created stones. “Ultimately, we are dealing with what the customer wants. Lab-grown is a legitimate product that offers great value — as do mined diamonds.”
Article from the Rapaport Magazine - February 2019. To subscribe click here.