For years, the jewelry industry has wrestled with whether synthetic/”laboratory-grown” diamonds would replace natural diamonds, stand alongside them, or eventually create their own category.
If the conversations coming out of the JCK/Luxury Shows in Las Vegas are any indication, many retailers may have already moved on from the wrestling match.
Instead, they are figuring out how to sell both.
Gary Roskin
Roskin Gem News Report
Hedging the Bet
That shift became apparent in a conversation we had shortly after the show with an independent mom & pop retail jeweler, who described a strategy that is becoming increasingly common amongst small independent retailers.
“I’m adding a significant amount of lab grown diamond to hit price points,” he told the Roskin Gem News Report.
When we responded that we didn’t see how many local independent jewelers could survive without selling synthetic/”laboratory-grown” diamonds in today’s market, he agreed.
“I know, that’s why I decided not to fight the change,” he said.
For our friend, the decision wasn’t about choosing one product over another. It was about being able to stock finished jewelry that customers can afford.
“I can stock a ring with a 1-carat lab for $450/$550. If they want the natural, I can change it.”
That flexibility, he believes, gives him an edge over competitors who increasingly rely on samples and special orders rather than maintaining inventory.
“My competition is moving to sample goods and ordering the real piece. That gives me an advantage.”
Testing His Metal
He also pointed to another reality facing retailers: rising precious metal costs.
“With the price of gold, I can give a real product with diamonds and at a reasonable price. Not a silver CZ piece of junk.”
Perhaps most telling was his final comment.
“Lab grown is one change I can live/sleep with.”
That statement may summarize where many retailers find themselves today.
A few years ago, much of the industry’s discussion centered on whether synthetic/”laboratory-grown” diamonds were a threat to natural diamonds.
Today, the conversation appears to be shifting.
Natural diamonds continue to occupy the luxury end of the market, with mining companies, producers, and trade organizations emphasizing rarity, provenance, traceability, and the billions of years required for their formation.
Meanwhile, many retailers appear to be viewing synthetic/”laboratory-grown” diamonds as a practical merchandising tool — one that allows them to offer larger stones, finished jewelry, and attractive price points while maintaining healthy inventory levels.
That’s a Rap
Even Martin Rapaport delivered a similar message during his Sunday morning breakfast presentation at JCK Las Vegas. “The future of the real diamond business is all about luxury! Expensive diamonds for wealthy people.”
But that doesn’t mean the debate over natural vs. synthetic/”laboratory-grown” diamonds has disappeared.
In fact, efforts to further distinguish the two categories continue to emerge around the world. Industry organizations, grading laboratories, and regulators have all been discussing how synthetic/”laboratory-grown” diamonds should be disclosed and marketed. Some commentators have even suggested that synthetic/”laboratory-grown” diamonds should eventually be weighed in grams rather than carats to further separate them from natural diamonds, although no widespread regulatory change has happened.
While mining companies, grading laboratories, and industry organizations continue debating terminology, disclosure, and long-term market positioning, many retailers appear to have quietly reached their own conclusions.
They are stocking what their customers can afford, offering what their customers request, and adapting to a market that continues to evolve.
Leaving Las Vegas
One Las Vegas narrative seemed difficult to ignore: while the natural diamond business is increasingly talking about rarity, luxury, provenance, and emotional value, many retailers are using synthetic/”laboratory-grown” diamonds to maintain price points, keep inventory in stock, and remain competitive.
Those two trends are not necessarily in conflict. They may simply represent the diamond market finding its new balance. – gr
