They say a diamond is forever, but rarely tell you how to value it. The conjecture on the financial viability of lab grown diamonds has been long and expansive, but today we aim to settle the debate once and for all. Expect this blog to tell you all the benefits of investing in diamond jewellery and how to start your journey with them.
In the realm of fine jewellery and elegance, diamonds have long reigned as the ultimate symbol of luxury and sophistication. However, as our awareness of ethical and environmental concerns grows, so does the demand for more sustainable alternatives.
Enter lab-grown diamond investment– a revolution in the world of jewellery portfolios that not only offers unparalleled beauty but also aligns with modern values of sustainability and ethical sourcing.
Transparency and Stability: The Foundation of Value
What makes anything an attractive investment choice?
- Your ability to understand the process of value creation, and
- Your ability to forecast its price trends.
One of the key factors that make lab-grown diamonds an attractive Diamond Jewellery Investment is their transparent supply chain and stable pricing. Unlike natural diamonds, whose value can be subject to fluctuations due to factors such as mining regulations and geopolitical instability, lab-grown diamonds offer a more predictable pricing trajectory.
What is even more important is the interpersonal trust between you and your preferred lab grown diamonds brand. At Elmas we place importance on educating our buyers about the product they are buying. Customer relationship and satisfaction is at the core of our company policy and we make sure we’re with you in every step of the way in your lab grown diamond investment journey.
With a clear understanding of the production process and a controlled supply chain, we empower our customers to make informed decisions about the value and potential growth of their future investments. This transparency instils confidence and stability, which are crucial elements in any good investment plan.
Growing Demand, Finite Supply: Driving Value Upwards
As consumer preferences shift towards sustainable and responsibly sourced products, the demand for lab-grown diamonds is experiencing exponential growth. This surge in demand, coupled with the finite supply of lab-grown diamonds, creates a favourable market dynamic that is expected to drive their value upwards in the long term.
For investors and buyers alike, this presents a lucrative opportunity to capitalise on the rising popularity of lab-grown diamonds and realise substantial returns on their future investment.
Learning From The Market
Over the past decade, the market for lab-grown diamonds has experienced significant growth. According to a report by MVI Marketing LLC, the lab-grown diamond market grew by approximately 22% in 2019 alone. This trend suggests increasing consumer acceptance and demand for lab-grown diamonds, which can drive up their value over time.Consistency and Quality
Unlike natural diamonds, which can vary widely in terms of colour, clarity, and cut, lab-grown diamonds are produced under controlled conditions, resulting in greater consistency in quality. This uniformity ensures that investors receive diamonds of consistent beauty and value, minimizing the risk of discrepancies in appraisal and resale value. In fact, it is solely because of this consistency that we, at Elmas, offer a buyback policy, wherein we offer 100% value of metal rate at the prevailing metal rate and 80% value of diamonds at the prevailing market price.
Certification and Traceability
Every lab grown diamond at Elmas is in its purest form. The origin of the Elmas lab grown diamond is conflict free and 100% traceable. This ensures transparency and ethical sourcing throughout the supply chain. They are certified by the International Gemological Institute (IGI).
These certifications provide detailed information about the diamond's characteristics, including its carat weight, colour grade, clarity grade, and cut grade, ensuring transparency and authenticity. All of these factors help in developing the image of lab grown diamonds as trustworthy and reliable modes of investment in diamonds.
Long Term Value Preservation
Lab-grown diamonds have demonstrated resilience in maintaining their value over time. While natural diamonds may experience fluctuations in market value due to external factors such as economic conditions and consumer trends, lab-grown diamonds have shown stability in pricing, making them a reliable long-term investment option. Whether held as a store of value or passed down as a family heirloom, lab-grown diamonds offer enduring value and appreciation potential for generations to come.
Cost Effectiveness
The affordability of lab-grown diamonds compared to natural diamonds allows consumers to get more value for their money. For the same budget, one can afford a larger or higher-quality lab-grown diamond, making them an attractive option for those seeking luxury without breaking the bank. This cost-effectiveness extends to both initial purchase and potential resale, as the lower initial investment can lead to higher returns on investment in the long term. Numerous studies and market analyses have shown that lab-grown diamonds typically cost 20% to 40% less than natural diamonds of comparable quality. For example, a report by Bain & Company found that lab-grown diamonds are priced at a discount of around 20% to 40% compared to natural diamonds of similar size and quality. This price differential makes lab-grown diamonds a more affordable option for consumers looking to purchase diamond jewellery.
All in all, lab-grown diamonds have the potential to offer competitive financial returns over time. As consumer preferences shift towards sustainable and responsibly sourced products, the value of lab-grown diamonds is expected to appreciate, providing investors with the opportunity for capital appreciation.
In a world where ethical considerations and financial prudence intersect, lab-grown diamonds shine as a beacon of opportunity for savvy investors.
With their transparent supply chain, growing demand, and diverse investment potential, lab-grown diamonds offer a compelling proposition for those seeking both financial returns and ethical integrity.
Whether as a standalone investment or as part of a diversified portfolio, lab-grown diamonds hold the promise of sparkling returns for years to come. By embracing the potential of lab-grown diamonds, investors can not only enrich their financial portfolios but also contribute to a more sustainable and ethical future for the jewellery industry and beyond.
