July 2022 | Lab Grown Magazine

July 2022 | The Lab Grown Diamond Resource Book 22 To advertise call (888) 832-1109 | July 2022 23 LGD Value, or the Belief “There is None” Pages of past evidence have been written in previous editions, proving all diamonds have an emotional price tag that is impossible to measure. That noted, I’m compelled to reiterate I’ve pointed out many LGD jewelry individuals are selling their previously purchased LGD item on Ebay and like platforms for as much (and in some cases) much more than they paid. These examples were offered with published links proving all diamonds command a resale value. Past examples also cite certain LGDs appearing to retain a stronger than average value, if accompanied by a major lab’s grading recent report denoting the stone “as grown.” Also contributing to a LGD’s extended life value are those with more impressive carat weights (above 5 carats), those with specific specialty cuts, and the truly rare and outstanding man-made vivid or intense colored (fancy) diamonds including a red diamond that made its way to a recent Sotheby’s auction, the second LGD to ever hit the major auction block to date. Key Take-Aways Be it the opinion of independent retailers who reject or support the sale of LGDs, or designers opposed or approving of LGD applications, three consistent points resonated. Those (ranging in degree of importance depending on the sub-set of questions) were: 1. Concerns over the validity of carbon reduction, or complete carbon elimination claims made by certain LGD producers. This includes paid third party corporations benefiting financially from sustainability certificates awarded to certain LGD companies as an attempt to ‘officialize’ and ‘guarantee’ reduced or zero carbon footprints. These concerns stem from potential customer distrust or satisfaction issues, and/or possible incorrect evaluations contributing to an inappropriate elevated LGD selling price or life value. 2. Concerns over long-term consumer adoption and demand. This issue is directly linked to a lack of historical reference data on LGDs. This is most notable when reviewing the current and future tangible LGD asset or market value. Also aligned to this concern is the unprecedented inability to forecast LGD’s global market cap, completive advantages/ disadvantages, and the seldom discussed possibility of white diamond market saturation (mined and man-made) as a vast surplus of white diamonds may flood certain markets in certain timeframes. 3. The present lack of any major fashion house creating their own branded LGD. A repeated reference (and offered in this story for illustration purposes only ) is that of the non-existent ‘Versace diamond.’ Clearly, any top fashion brand (Gucci, Chanel, Dior) could create their own cut and branded LGD, but have not yet done so. Graphic: Luxe Licensing Top 5 U.S. Jewelry Designer Hierarchy of LGD Needs/Requests 5 COLOR/QUALITY CONSISTENCY Fancy LGDs are appealing to jewelry designers, yet they share concerns over color consistency especially when purchasing high volume in the same/similar carat weight & cut. 4 CONSUMER ADOPTION/ PRECEIVED VALUE 3 SUSTAINABILITY & LEGAL ISSUES Citing a lack of non-bias, Federally-approved audits, or legal U.S. governance over "eco-friendly" LGD sustainability claims, plus growing concerns over FTC "letters of warning," possible hefty fines or law suits against those not following regulations regarding the proper advertising vernacular of LGDs was a common concern, ranking third in the top five. The confusion and possible legal woes has many designers waiting in the wings. 2 ROUGH SOURCES Some designers seek to create their own speciality-cut LGDs or wish to brand their own diamond, thus cut LGD from rough, or have consistent supervisory control of the cutting process. This group isn't interested in being a grower, rather acquiring lab-graded, price protected & timely shipments of LGD rough from trusted growers, preferably from the US. This need stems mostly from white stones, but also speaks to a growing request for colored rough. 1 ICONIC LEADER History proves when a new product category comes to market, it typically comes with at least one iconic, cornerstone brand backing the category. This serves as a B2B proof of concept and tends to help build business relations and trust for pending launches.. While mined diamond brands like Harry Winston, Cartier and Tiffany are household names, the lack of any major fashion house branding their own LGD leads the list of needs/requests from jewelry designers waiting to embark into the LGD market. Leads like Gucci or Versace could dominate the branded diamond space, yet no major brands have moved to do so. Not yet. Rumors of a 'Versace diamond' remain rumors, while the added awareness has only placed the brand more top-of-mind. A lack of LGD consumer research from the National Retail Federation (NRF) has many puzzled. Typically quick to jump on a new product category report & analysis, the lack of such + there is no historical reference for long-term LGD consumer adoption or any value analysis to chart.