The man made diamond industry is an increasingly lucrative and growing field that offers many investment opportunities for someone to get involved and markets a quality product that has just as many benefits as mined diamonds.
What is a man made diamond?
A man made diamond is a synthetic diamond that was grown in a laboratory over the course of several weeks, as opposed to being mined and discovered in the surface of the earth. Some of the reasons that these synthetic diamonds are increasing in popularity is due to the lower cost of these pieces and the fact they are conflict free. Some studies have found that several young people actually prefer man made diamonds to natural diamonds, although there are still many who either prefer natural diamonds or thought that synthetic diamonds were equivalent to glass or cubic zirconia, which is false.
There is an increasing amount of companies appearing that specialize in man made diamonds, proving how the market for these stones is on the rise. Some of these company’s founders have started this business because they wanted to create a diamond that wasn’t mined in unethical ways and give back to communities that have been ravaged by the effects of diamond mining and child labor. This conscientious production and marketing technique appeals to many young people who would otherwise consider buying a natural mined diamond.
Another feature that has proved to be beneficial for this industry is that people are having tremendous difficulty distinguishing these diamonds from the real ones. Although this is great news for synthetic diamond makers, it has many natural diamond jewelers concerned. The market for man made diamonds was worth 15.7 billion dollars in 2014, but is expected to soar to a value of 28.8 billion dollars by 2023. The production of lab grown diamonds is expected to significantly increase, as well.
Although, there has been some evidence to support the idea that many people consider synthetic diamonds to be cheap or fake and would not purchase them for momentous life occasions over the real deal, it does appear that those who are genuinely concerned about “blood diamonds” or the steep price of mined diamonds are purchasing them more frequently. As of right now, the man made diamond industry will most likely not replace the natural diamond industry, but there is no doubt that it is growing and may be a competitor in years to come.
Chris Burch is a venture capitalist and founder of Burch Creative Capital.