Did you know that the global market for lab-grown diamonds may touch 19.2 million carats by 2030!
By 2025, the global market value for these types of diamonds is expected to reach $29.2 billion.
In 2020, the share of synthetic diamond sales was 3% in the US market. It climbed up to 5% in 2021. The first quarter of 2022 showed a higher sales share of lab-grown diamond jewelry, 7%, to be precise.
This goes to show that people have become more conscious of sustainable and eco-friendly alternatives. It also means there will be quite a few investment opportunities.
In this post, we shall talk about different ways you can invest in lab-grown diamonds. But before that, you should know why you should think about investing in it.
Why Invest in Lab Grown Diamonds
There are many ways to look at it. Here are a few reasons why the Lab grown diamond industry is expanding rapidly:
If you were to choose between natural and lab grown diamond earrings, which one would you pick? An environmentally conscious person would go for the latter.
That’s because lab-grown diamonds pose no harm to the environment. The whole manufacturing process is conducted in advanced labs.
That’s quite safer than extracting mined diamonds. Remember, the extraction of natural diamonds is a lot more complicated. It involves:
- Digging the earth
- Blasting the surface and causing harm to the plantation and natural habitat
- Rising pollution
On top of that, the miners are exposed to high health risks. Their life is constantly in danger as there’s always a threat of landslides, suffocation, animal attacks, etc.
The setup will require a meager initial investment. Plus, the operational cost will be nothing compared to the total expenses incurred in natural diamond extraction.
More importantly, there will be fewer losses and more wins, making it a viable opportunity for investors.
Quality and Pricing
In general, lab-grown diamonds look and feel like natural ones. And they are backed by certification from authentic sources.
Because of a shorter production cycle and safety, lab-grown diamonds are more accessible. This is why you can find a wider variety of diamond studs and diamond cuts.
And because of the low production cost, lab-created diamonds are less expensive than mined diamonds.
Ideas to Invest In Lab Grown Diamonds
There are many different ways to invest your savings in lab-grown diamonds.
Some of them are mentioned below:
1.Find a Synthetic Diamond Stock
This, undoubtedly, would be the first thing you’d search on the web. And doing so means you’re on the right track to finding some good ones. Here are a few things to ensure before you invest in any lab-grown diamond stock:
- Market capitalization: It shows the financial position of the company. The ones with the highest earnings would make a strong contender.
- Reputation: Consider how good they are with other stockholders. You can check out some online reviews to get the idea.
- Fees (or Commission): Some stock brokers charge a small percentage on buying and selling. While others charge a fixed monthly or annual amount.
- Minimum investment: Some stocks require a very small investment, as low as $5 while others may require $100,000. On the other hand, some stocks offer zero investment along with a bonus.
While these factors are important, you also need to know what manufacturing processes they follow. Since you’re investing in sustainable stocks, they must follow eco-friendly procedures as well.
2.Find a Lab Grown Diamond Company
You can choose to become a stakeholder in that company that produces lab-grown diamonds. For this purpose, you can surf the web and look for small and large-scale businesses selling their shares.
Here, it is important to understand that a lab-grown diamond manufacturer is different from a traditional diamond producer.
Lab-grown diamonds are produced ethically without causing harm to mother nature. Unlike mined diamonds that are extracted from the earth, lab-grown alternatives are produced in well-equipped labs.
Therefore, conduct in-depth research to make sure you’re investing your money in an ethical, sustainable, and eco-friendly process.
While doing your research, make sure that the company you’re going after has a good market value, a reputation, and offers a good enough yearly income.
Working with a lab-grown diamond manufacturer can benefit you in two ways:
- If you have a sufficient sum to invest, you may decide to start your collection of jewelry and sell them to end-users.
- Or, you can opt to promote their items and earn a commission on every sale you make.
The next section will tell you how you can go about reselling lab-grown diamonds.
3.Start Reselling Lab Grown Diamonds
Initially, you may need to create your collection of lab-grown diamonds. This will be a starting point where you can get more people into buying your items. These could be:
- Wedding day diamonds: These are small diamond pieces that can be fixed to engagement rings, bracelets, pendants, bangles, earrings, etc.
- Wedding bands for women: These are wedding rings forged from gold or other precious metals.
- Proposal rings: These are meant for the special day, so they have to look unique and attractive.
- Earring studs: They are available in the form of solitaire diamonds. Ear studs are mounted on the rounded metal post of the earrings.
- Bracelets: Wrist bands made of symmetrical diamonds or gemstones connected with the help of a thin metal chain.
- Necklaces: Necklaces come in different shapes and sizes, and the essential feature of the necklace is a gemstone or a small piece of diamond.
- Diamond wedding sets: A wedding set usually features a necklace and a pair of earrings. But, expensive sets may have a ring and a pair of bangles.
As your business prospers, you can reach out to lab-grown diamond manufacturers with your offer.
You can also start selling from social media pages on Instagram, Facebook, Pinterest, etc. Jewelry enthusiasts, especially women, always show interest in unique items.
So, with the right advertising, you can attract brides, fashion models, and even celebrities.
4.Find a Jeweler Who Deals in Lab Grown Diamond
Well, if not manufacturers, you may well come across jewelers who deal in lab-grown diamonds. If you happen to have a strong and long-term relationship with your jeweler, you might well tap into this opportunity.
Like other jewelry, the prices of lab-grown diamonds also tend to fluctuate. You can buy and sell your pieces based on market fluctuation and make a handsome amount.
Anyhow, if you simply want to increase your savings, a jeweler with a solid reputation would be more suitable.
5.Buy and Save: Sell Later
If you’re not keen on selling jewelry, lab grown diamonds can still help you keep your investments safe. Diamonds can stay with you for a lifetime and may give you a good return in the long run. For example, the price of a diamond carat was $15000 in 2000. In 2016, it was twice as much.
However, keep in mind that lab-grown diamonds are not like other metals that you can resell after a few months and earn profits. Diamond does lose its value over time, so make sure:
- You bought it at a wholesale rate
- Keep it with you as a long-term investment
The way the industry is flourishing, your investment may give you substantial returns if you sell these possessions after 5-10 years. Just make sure to keep all the certificates safe with you.
The industry of lab-grown diamonds is expanding. And the recent facts and figures make the investment in lab-grown diamonds a viable option for everyone.
Moreover, the manufacturing processes are ethical and cause no harm to the environment. So, as responsible human beings, you can play your role in saving the earth from further deterioration.
Take a step now!