January 2020 - Lab Grown Magazine

January 2020 | LG | The Lab Grown Diamond Resource Book 14 About the Author Jerry Taylor is a GIA Graduate Gemologist and CEO of Lab Grown Source, the largest online trading platform dedicated to lab-grown diamonds. ♦ Setting the Facts Straight and Dispelling the Myths About Lab-Grown Diamonds Myth - Lab-grown diamonds aren’t real diamonds. FACT - Lab-grown diamonds have the same physical, chemical, and optical properties of a mined diamond. Last year, the FTC removed the word “natural” from the definition of a diamond.This means a diamond is a diamond, whether it’s created above ground by humans, or below ground by Nature. This is the foundational fact that customers need to understand. Lab-grown diamonds are real diamonds. Period. Myth - Lab grown diamonds will plummet in value as technology advances. FACT - Growing a diamond is one of humankind’s greatest scientific achievements. It is not simple and it is not cheap to grow a diamond, nor will this change. Ph.D scientists are required and complex equipment is needed to grow gem quality diamonds. Many argue that lab-grown diamonds will become as easy and inexpensive to produce as CZs. This myth disregards a basic understanding of the economics of growing diamonds and the complex nature that will never change. Also, the cost of cutting and polishing a lab-grown diamond is exactly the same as the cost to cut and polish a mined diamond. For that reason alone, lab-grown diamonds can never be as inexpensive to produce as cheap simulates such as CZs. Myth - Mined diamonds appreciate in value and lab-grown diamonds don’t. FACT - Buying a diamond ring is not an investment that will yield a positive return to the end consumer. If you sell diamonds under this pretense, STOP! Jewelers cannot and should not be expected to pay more than what their customers paid them if the customer wants to sell back their diamond. And they don’t.They might offer trade-in credit, but that requires a larger purchase where the jeweler can recoup the cost of the original sale. You don’t want your customers to think they can take the diamond they buy from you and in five or ten years walk in to any jewelry store and resale it for more than what they paid.That is absurd, and if your customers believe that, they will despise you when they realize it’s not true. Buying a diamond ring is romantic. It’s a gesture of commitment and love. It’s exciting and it’s sexy. The sentimental value of a diamond ring is the same whether it’s lab-grown or mined. And as more jewel- ers offer lab-grown diamonds, the resale market for them will get bigger, and eventually be similar to the resale market for mined diamonds. Again, customers lose a lot of money when they resell their diamond, whether it’s mined or lab-grown, so don’t sell diamonds as if they were a bond or mutual fund. They are not! In summary, lab-grown diamonds are here to stay. As more and more jewelers are closing their doors, embrace the future and this exciting opportunity to thrive as a jeweler! Start offering lab-grown diamonds to your customers and you will see why it’s a win-win for you and your clients.