Considering how the popularity of lab grown diamonds is growing exponentially, new business opportunities are now emerging in the industry. Many people are considering starting their own lab grown diamond business but seek expert advice and validation if it is a good idea to proceed.
If you have the capital and the interest to build a business from scratch, it is a good idea to think about your own lab grown diamond jewelry business.
But, are you wondering what the scope of a business like that would be? Or, how to answer the most popular question among your customers – Are lab grown diamonds real?
Let’s find out.
Why Are Lab Grown Diamonds Becoming Popular?
Did you know the production of lab grown diamonds has gone over the moon in the last few years?
According to a report, over 6 million carats of lab grown diamonds were produced in 2020, and the numbers are multiplying.
The number is expected to grow manifold as lab created diamonds are marketed more to those looking for an affordable option and are more conscious about finding sustainable solutions.
Many people have stopped the purchase of earth-mined diamonds due to a lack of transparency and abuse of labor in the diamond mining industry. Earth-mined diamonds don’t have a clean past, and the miners continue to suffer at the hands of the elite, which is one of the significant reasons behind the popularity of lab-grown diamonds.
Next, let’s deal with the question that is rooted in the popular misconception stating that lab grown diamonds are synthetic diamonds or moissanite, which is deliberate.
Are lab grown diamonds real? This is one of the most common questions asked by people new to lab-created diamonds. There is no chemical or biological difference between the properties of a natural diamond and a lab-created diamond. Both share the same chemical and physical attributes and optics, making lab-grown diamonds as genuine as natural diamonds.
The only difference is that earth-mined diamonds are mined from the pits of the earth, whereas lab-created diamonds are grown in laboratories. Earth-mined diamonds are scarce, but lab-grown diamonds are limitless, which is also why there is nearly a 50% cost difference between the two.
5 Reasons Why a Lab Grown Diamond Business Would Be a Good Idea
Starting any business whether its a salon or clothing store, isn’t free of risks. Every business has its strengths and weaknesses. But the road to success for any business leads from whether you’re solving a problem.
Starting a lab grown diamond business is an impeccable idea in more than one way. They’re more affordable than earth-mined diamonds and allow jewelry lovers to explore new markets.
But if you’re still not convinced, here are our top 5 reasons to consider starting a lab created diamond jewelry business.
One of the primary reasons why starting a lab grown diamond business would be a fantastic idea is because these diamonds aren’t limited in quantity.
Lab grown diamonds are grown in labs. This means their creation is in the control of scientists, and as long as you have the bare minerals for producing diamonds, all of which are limitless, the supply of these diamonds will also be limitless.
You will never have to shut down your business because diamonds have suddenly become scarce. This is precisely why businesses that sell earth-mined diamonds suffer because when the availability becomes scarce, they don’t have an alternative, and the resources take a financial blow.
Since the pandemic, many people have shifted towards online shopping because of convenience and ease. The same goes for buying diamond jewelry.
You can decide not to open an outlet initially and use an online store to simply see how the business takes off and the customer response. This will not only save you tons of money, but you can also assess bigger consumer markets.
Eventually, when you do decide to open a jewelry outlet of your own, you will know where to open it and what kind of customer response you will get.
Another prominent factor that compels us to grab the opportunity of opening a lab-grown diamond business is its versatility. If you think people are only interested in wedding day diamonds, engagement rings, and other forms of diamond jewelry for occasions, you have no idea how wrong you are.
Diamond is the most rigid precious stone on earth. Besides wedding bands and diamond engagement rings, other widespread uses of diamonds include various applications, such as drilling, cutting, grinding, etc. The diamond quality doesn’t matter for these purposes, and HPHT diamonds are used primarily.
Industries such as laser, electronics, and optics have an increased demand for lab grown diamonds, which gives all the more opportunities to those in this business.
No Past Conflict
With the rise in environmental concerns, many people around the globe have become skeptical about the moral conflicts of earth-mined diamonds. The unfavorable working conditions that laborers are forced to endure, the irreversible deforestation, and how mining itself causes drastic effects on the planet are refraining from people investing in them.
Lab grown diamonds have the strong advantage of being ethically sourced and conflict-free. They have come to show that people can experience the joy of using diamonds without worrying about the detrimental impacts of the diamond commodity chain.
This means the market of lab grown diamonds will eventually grow exponentially. These diamonds don’t unleash havoc on the environment and are free of conflict, making them the perfect alternative to mined diamonds.
Lab grown diamonds are 50% cheaper than earth-mined diamonds. Naturally-grown diamonds are costly, which is one of the reasons why diamond wedding sets and other classy pieces of diamond jewelry remain only a dream purchase for many.
With the rise of lab grown diamonds, more people are considering investing in them. They have become affordable, and with a limitless supply, the demand is bound to grow.
Starting a business, regardless of the industry, is risky. Someone who has never stepped into the manufacturing industry doesn’t always know what can and can’t go wrong. But, with the booming industry of lab grown diamonds, it is safe to say that people who start a business now will have more growth opportunities.
It’s a solid industry with a limitless supply. Plus, the target market is massive for lab grown diamonds.
Though it requires substantial capital, you will need the know-how to run a business and reliable and certified vendors to ensure a high-quality, consistent supply of lab created diamonds. Once you step into it by starting small, you will eventually be able to make it big. The lab grown diamond industry has tons of potential; this is the right time to harness it.