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Lab-Grown Diamonds To Lower Prices In 2019 - ABN AMRO

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Lab-Grown Diamonds To Lower Prices In 2019 — ABN AMRO

(Kitco News) - The popularity of lab-grown diamonds will put pressure on natural diamonds and likely push prices lower in 2019 and 2020, ABN AMRO said in its diamond sector outlook.

“The diamond industry has moved from a relatively stable environment to a highly uncertain environment,” said the Dutch bank’s coordinator of currency and precious metals strategy Georgette Boele. “2019 and the years ahead will see lab-grown diamonds for jewellery entering the growth phase.”

Last year, De Beers launched its lab-grown diamond jewellery. And this trend is likely to expand in 2019, Boele pointed out.

“We think that 2019 and 2020 will be the years that lab-grown diamonds take off … This has serious consequences for the actors in the diamond industry. Natural diamond buyers such as retailers, consumers and jewellery manufacturers will likely de-stock and hold less inventory. This will result in lower demand for natural diamonds and weigh on prices,” she wrote.

A few of the consequences will be a reconsideration of how valuable diamonds really are and the miners’ approach on how to obtain the precious stones.

“Consumers will profit from the wider variety of diamonds at more attractive prices,” Boele said. “Lab-grown diamond producers have been able to produce larger and better-quality lab-grown diamonds.”

One of the most impressive examples of lab-grown diamonds came from a Russian company New Diamond Technology LLC, which revealed that it successfully produced a 103.50 carats lab-grown diamond — the largest ever man-made diamond.

This trend change might mean more affordable diamonds for consumers, but buyers need to keep in mind that lab-grown diamonds “do not hold investment value,” Boele noted.

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