The diamond market has proven to be one of the most dynamic and evolutionary economies. While other commodities and industries struggle, precious stones weather the storm. While the jewelry trade has had its fair share of roller coaster bull and bear markets, diamond demand continues to increase around the world. In Israel, the diamond economy’s 45% increase in growth shows no signs of slowing. The 2020 diamond commerce crash has indeed proven to be a temporary setback.
The diamond industry, once valued at millions, is now worth billions in economic power in Israel. For a country the geographic size of the State of New Jersey, the diamond market is an economic powerhouse that constantly innovates and expands.
Lab diamonds are finding similar growth. Consumer spending patterns toward the stones is evolving generationally in Israel and around the world. The “grown” stones have carved an impressive niche in the jewelry market. The eco-friendly and environmentally conscious stones are attracting new consumers and interest from multiple generations.
Public opinion polling points to interesting trends in the priorities of Millennials and Generation Z when it comes to jewelry and the future of the diamond industry. Changing attitudes and trends of these generations has been, in part, the impetus for the evolution of the lab diamond trade. Over 35% of “millennials” and over 45% of “Generation Z” feel it is less important that stones be natural in jewelry choices. More interestingly, consumers of these age groups are shopping for larger diamonds on a lower budget and are increasingly looking to eco-friendly lab grown diamonds. The result? A recent report by GN Diamond notes that there is “a surge in grown diamond purchases” and companies like Pandora use lab grown diamonds exclusively.
Israel, long known for its leadership in diamond innovation and cuts, has become the leading epicenter of that interest. Israeli diamonds have successfully adapted to new demands. The Israeli diamond trade has expanded exponentially with the UAE, India, and Belgium. Trade and Industry experts also note that the Abraham Accords put Israeli diamond trade leaders on new courses for expansion. Specifically, a Calcalist report noted that there is an over a 300% increase in the diamond trade with the UAE alone.
The expansion of new markets for the diamond trade has extended to lab grown diamonds. According to lab diamond dealer, and Israeli actor Dan Mor, lab diamonds are “a new frontier for growth in jewelry, fashion and sustainability.” The Israeli actor seen in the Cannes Festival Award winning series “When Heroes Fly,” “Tehran” and the series “Beauty Queen of Jerusalem” on Netflix, has been involved in the diamond industry for years. “Lab diamonds have become the go-to diamond for people looking for stone perfection that is affordable and checks all the boxes for being environmentally friendly,” said Mor adding, “they are the diamonds of the new world.”
Mor points to several attracting factors in consumer interest in lab diamonds. “First, people are looking for the perfect diamond. People like the fact that you order a diamond to your desires and specifications exclusively. When people come to me for a piece of jewelry, whether it is a ring, necklace or set of earrings, they know exactly what they want, and it fits in with their style and preference. Lab diamonds do it exactly to their instructions and budget. That is why the demand is growing.”
Lab diamond growth and interest is expanding. Companies like Lusix have raised over $45 million in capital for plant expansion in Modi’in. Green Rocks Diamonds built a new production facility in Nazareth. Companies like Sarine Technology Lab have become the technological focal point for artificial intelligence in grading of diamonds.
“Precious stones will always capture the imagination of consumers. It is an important part of the economy. With attitudes of consumers changing about where precious stones come from, people are going to opt for lab diamonds. It is a present-day reality,” said Mor adding, “mined diamonds are nature’s gift and made diamonds are a gift of mankind’s intellect.”