Fortrove News

In the near future, lab-grown diamonds could develop their own scaling as far as price goes, separating themselves from the natural diamonds. The former chief executive officer of Alrosa, Andrey Zharkov, has made that prediction during a previous webinar.

“Honestly speaking, I think that, in the future, in two or three years, we will see more pricing for laboratory-grown diamonds based on benchmarking,” said Zharkov. “It will be an important differentiation for laboratory-grown diamonds and natural diamonds.”

Zharkov, who's now the head of the lab-grown diamond company Ultra C, said that lab-grown diamond sellers are still basing their price range on Rapaport. Diamonds with color, however, are a different matter in terms of pricing.

“[For them,] we use the benchmark for colorless. The prices of fancy colored lab-grown diamonds and natural diamonds cannot be compared.”

According to Zharkov, lab-grown diamonds are more of a “technical product. So, we look at the cost of manufacturing, and we know that we can produce as much as we want, so we price it as a technological product,” he continued.

According to the secretary of the International Grown Diamond Association, Richard Garard, both types of diamonds “have taken a hit” in matters of pricing, and certain lab-grown stones will be more of a difficult endeavor to grow, leading to a small price fall or none at all.

“It still takes the same high technology, the same expertise to grow a large D-E-F lab-grown diamond,”says Garard. “It does take time. Those costs do not go down. We are seeing stable prices in the larger, better-quality stones. We don’t see those prices going down. The demand [for lab-growns] continues to outpace the supply, even with a lot more producers coming on,” he later added.

Zharkov has been very clear in his critique of two separate sectors within the diamond industry. he said that 

“We never used terms such as non-conflicteco-friendlyWe also see some natural diamond companies say that lab-grown variants are not real. It’s very dangerous to the marketing of diamonds. We all live in glass houses.”

Information originally sourced from JCK.