When consumers buy diamonds, they always try to find out if they are a good investment or not since the ticket price is very high. However, when it comes to lab-grown diamonds, many consumers are confused as to whether they are worth the investment or not.
The post below will answer that question and cite various experts to help make the right buying decision.
Yes, lab-grown diamonds are worth the investment for the reasons listed below.
1. Less expensive
When making any investment, the buying price matters a lot. According to New York University, lab diamonds are certainly less expensive than natural ones. It means that the buying price is much lower. Approximately 50% lower as compared to natural diamonds. That means you buy an asset at a 50% discount to its peer. That certainly increases the probability of getting a good return on the asset. This is the primary reason lab diamonds are such a good investment.
2. Increasing market size
It is difficult for any asset to retain its market value in a decreasing market. However, this is not true for lab diamonds. According to Morgan Stanley and Citi group, the market size for lab-grown diamonds is going to grow year on year and multiply over the next decade. It means that not only will the market size increase but so will the demand.
With such high market growth, it is almost inevitable that these diamonds’ value will increase.
3. Increasing availability
The accessibility to any asset class also determines whether its price increases. For that to happen, traders and diamond stores need to add lab-grown diamonds to their inventory in larger quantities. Truth be told, they have a great incentive to do so. Not only is lab-grown diamonds cheaper, which means less inventory cost, but the margin in such diamonds is often higher than in natural ones.
It means that by adding such diamonds to their inventory, websites, and stores will certainly profit more. The increasing awareness of lab-grown diamonds means that they won’t have an alternative but to add more options of lab-grown diamonds to their inventory. Otherwise, customers will likely buy lab diamonds from another website or store.
The addition to the inventory in such stores and websites will fuel the demand for lab diamonds. When that happens, the prices will certainly appreciate. In fact, dedicated marketplaces like rare carat allow you to buy certified diamonds online at rare carat. The point is that their addition to the inventory is already happening, which will propel the prices of such diamonds higher.
4. Better clarity
Natural diamonds can have their flaws. Such flaws can be introduced during cutting or polishing. Constituently, the clarity of such diamonds might not be up to the mark. There can also be inclusions, due to which the diamond might not be able to retain its value. All this happens because natural diamonds have to go through many processes to be encrusted in jewelry or sold as stand-alone stones.
All these problems do not occur in lab-grown diamonds. They are designed perfectly and usually do not have to undergo so many cuts. Since they are designed, they can be easily encrusted in various pieces of jewelry.
Consequently, lab-grown diamonds have better clarity and more perfect cuts. That certainly means that years later as well, their appearance will remain the same, which will help them appreciate in value.
5. High durability
Lab diamonds do not have any imperfections. Consequently, the durability of such diamonds is higher than the natural ones. Because of this, it can be passed from one generation to another. When the holding time frame is so long, of course, they are going to be a great investment, even with modest returns on an annual basis.
In this regard, the higher durability of the lab diamonds certainly works in their favor.
While many consumers are confused as to whether lab-grown diamonds are a good investment or not, truth be told, they certainly are a great investment because of the reasons listed above. With the opinions of various experts cited above, one thing that is clear is that lab-grown diamonds are not only here to stay, but the demand and availability will only increase, which will propel their prices higher as well. Considering these parameters, it makes perfect sense to invest in lab-grown diamonds at the current stage, whether as stand-alone stones or as jewelry pieces like Rare Carat rings.
