Taking a shine to lab-grown diamonds

Demand for more affordable synthetic alternatives is on the rise as mined diamonds lose their lustre

- Louisa Lim

The diamond industry is finding itself in the rough.

In 2024 alone, mined diamond prices have fallen by 10.8 per cent, according to industry expert Paul Zimnisky's Rough Diamond Index, resulting in a 34 per cent drop from their peak in 2022. Industry insiders cited by business magazine Forbes are even predicting an additional decline of 15 to 20 per cent over the coming year.

Compounding the industry's challenges is the growing prevalence and increasing sophistication of lab-grown options.

New York-based investment bank Morgan Stanley reported in 2024 that lab-grown diamonds which primarily originate from China and India constituted about 14.3 per cent of the diamond supply in 2023, a figure that is expected to rise to 18 per cent in 2024 and 21.3 per cent in 2025.

In 2020, they accounted for just 7.5 per cent of the total market.

Ms Patsy Loo, business director for local jeweller Lee Hwa and its sister brand Goldheart, recalls when lab-grown diamonds first hit the Singapore market about five years ago, many consumers assumed they were not "real".

She says: "But as our customers become more educated, they understand that lab diamonds are real diamonds in both material properties and look. Unlike diamond simulants, lab-grown diamonds are chemically and structurally identical and possess the same stunning qualities as mined diamonds."

Furthermore, renowned gemological institutes like the Gemological Institute of America (GIA) and International Gemological Institute (IGI), which traditionally issue certification for mined diamonds, also verify lab-grown diamonds and grade them by the same strict standards.