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Zimnisky releases matured LGD market report!

Demand for lab-created diamonds has steadily grown in recent years. In 2018, the man-made stones represented <5% of total global diamond jewelry sales, this year the product is expected to breach 10% —and at this pace, 20% is possible by the end of the decade according to diamond industry analyst Paul Zimnisky.

As the lab-grown diamond market matures, Zimnisky believes that there are four primarily characteristics that could shape the industry: 1) limitless supply, 2) standard high quality, 3) branding and proprietary design, 4) and, custom shapes and colors.

In a report published on August 3rd, Zimnisky says that advancements in lab-diamond production capabilities and capacity will likely continue to boost output as well as the quality of the stones.

He notes, “Despite, steadily increasing demand for man-made diamond jewelry over the last four years, relative prices have also steadily declined. This is presumably due to increases in supply and improvements in the quality of supply.”

He notes that in mid-2018, a generic 1-carat VS1-clarity, G-color lab-diamond retailed for $3,625 while a natural equivalent retailed for $6,600. Today the same quality diamonds sell for $1,615 and $6,705, respectively.

“Eventually, almost all man-made diamonds will likely be of a universal-high-quality, which could render grading of lab-diamonds non-necessary... (which would) further reduce the price of man-made diamonds relative to natural diamonds for consumers,” says Zimnisky.

He continues, “This will make branding and proprietary design of lab-diamond jewelry essential for those that want to market it as a luxury product.”

That said, Zimnisky notes that lab-diamond as a material is unique in that it can be fabricated into jewelry in ways not possible or economic with natural diamonds, “this will allow lab-diamonds to drive incremental demand for the larger diamond industry as the product matures and develops its own identity.”

Read the full report here which includes data charts and tables. Please read the full disclosure at the bottom of the page.

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