Like other types of businesses, the jewelry industry has always attracted women. Notably among them is the diamond business. There are now different types of diamonds available, and they constitute a part of wedding rings for women.
Because of the rising demand for these gems, and increased scarcity of naturally mined diamonds, many manufacturers have taken to producing diamonds in the laboratory.
The lab grown diamond market currently makes up a small percentage of the entire market. In recent times, however, its shares have been growing in exponential amounts.
If you’re looking to jump on the market, a particular question you may ask yourself is the profitability of the market. Let’s consider this crucial factor that affects other business types, not just the diamond enterprise.
Benefits of Investing in the Lab Grown Diamond Market
As you may know, the demand for high-quality, original diamond studs is always high. Here are a few factors worth considering before you start out.
1.Return on Investment
Making investments in real estate returns good ROI over time. Diamonds, silver, and gold also fall into this category. The high value for diamonds is increased because it is portable. Business owners can always ask for various diamond cuts, making it easy to carry about. This singular feature where entrepreneurs can carry thousands of dollars in diamonds in secrecy has boosted its value.
It is unlikely to find more natural diamonds, because of controlled scarcity. Hence, a natural shift to lab grown diamonds is the new cool.
Diamond studs for women have always been a staple classic and timeless fashion piece. Only the cost implication is enough to make women want to get a pair for themselves. The same is also true for other types of diamond jewelry pieces.
Despite the high price, the value of these items do not diminish over time because of the constant demand. Hence, the ROI for any valuable diamond jewelry piece is always looking up.
2.Fashion
This could probably be the highest reason for anyone to invest in the lab grown market. Diamonds will be in the middle of it all, whether for bridal or just for fashion. There are thoughts that the demand for diamonds may revolve around bridal purposes. It is not uncommon to find different diamond ring shapes, to fit women of all sizes.
If you want to get into the fashion world, the lab grown business can conveniently service your needs for high-quality and reliable fashion items. Here are some of the top usefulness where lab grown diamonds have become essential.
- Diamond Wedding Band. Many people believe a good way to show their love is through diamonds. Proposal rings and wedding bands for women are made from lab grown diamonds, and currently has a high acceptance.
- Diamond Studs. You won’t find many earring studs not made of diamonds. The common feature is possible due to laboratory processes.
- Diamond Pendants. If you’re a lover of pendants, the attraction could be due to diamond bling. Manufacturers are particular about this accessory, and some of the best lab created diamonds are channeled into pendants production.
For bridal purposes, diamond products from the laboratory also serve well. A diamond wedding band will also gleam in the sunlight. Its rating is quite impressive if you compare its prices and quality with other forms of diamonds.
3.High Demand Value
The entire lab grown diamond market was priced at $19 million at 2019 and is projected to grow to around $30 million by 2028. The demand stems from jewellers who need diamonds to create a proposal ring or other types of wedding jewellery. This increased value now sees the demand for diamonds, especially the lab grown, almost daily.
With how the market looks like now, a projection for this market to estimate at $1 billion and above in a few years is not impossible at all. There’s no better time to move into the market and claim a share of dividends and probably contribute to wedding day diamonds.
As the jewellery business continues to grow, diamonds will be crucial to its increase in the coming years.
4.Insurance
Like the mined diamonds, the lab grown variety can also be insured against theft. There are truths that a person with a high taste for diamond jewellery may want to enquire if the diamond you sell is natural or synthetic.
However, many jewellery lovers do not ask, which also increases its value. Many insurance firms will gladly provide insurance cover for your product if you want, at any time.
Between Mined Diamonds and lab grown Diamonds
When considering the differences between both varieties, price is the first determinant. There is no fixed pricing since diamond is not a stock item. One thing is clear, the increased demand makes it high value with good ROI. you can still get an idea of which is higher than the other. Most sellers think that the mined diamonds are higher than the gems produced in the lab.
The place of difficulty might be getting the colored types of diamonds. It may be hard to differentiate between the types when they are both coloured. To protect yourself, it is always better to buy diamonds that come with a certificate, preferably GIA.
GIA is mainly regarded as the standard rating for all diamond shapes and sizes. It becomes useful when you’re buying lab grown diamonds. Of course, there are other certifications like IGI. The difference is in the strictness by which both grade diamonds’ quality. The characteristics, colour, and pricing are also critical differences between both types.
Starting a lab grown Diamond Business
If you’re interested in investing in this business, you should have an understanding of its basics. Setting a budget for how much you want to invest is essential. The next step is knowing when to diversify to reduce your risk. For instance, if you plan to invest $20,000 in the lab grown diamond business, it’ll be wise to buy two $10,000 diamonds. You can split it into three if the budget permits equal sharing.
Also, consider going for colored gems instead of the same colours. The prices for colored types of diamonds are unprecedented and can keep going up. It’s another good risk management strategy. Also, search for cheaper lab grown
diamond brands, so you can sell at a higher price. It doesn’t mean you’re buying fake, but the best possible bargained price.
Again, you can save costs by cutting off middlemen and directly approaching manufacturers.
Conclusion
The hardness of diamonds has made its applications far more comprehensive than just jewellery. Although a fashion statement is still the primary purpose, it can be used for drilling, cutting, and grinding purposes. These new applications are now shooting the demand for diamonds high, which could be profitable in the coming years.