Supply and demand for Lab-Created Diamonds
When it comes to supply and demand, these three subjects come up more often than others: rarity, production cost and resale value.
According to DPA and De Beers with Lightbox, lab-grown diamonds are cheap and easy to manufacture, which makes their supply essentially unlimited. They promote this idea as the reason for lab-grown diamonds having no real value, but potentially flooding and ruining the market.
In actuality, the situation is quite the opposite! The supply of lab-grown diamonds is limited by investment, manufacturing capacity and access to the technology. Lab-grown industry will need billions of dollars of investment to even get close to the global annual volume of production of mined diamonds. Moreover, one of the biggest chunks of production cost is energy expenses. It’s highly unlikely that the cost of electricity is going down drastically anytime soon.
Matching the supply of mined diamonds is nowhere near as fast and easy. With the current market share of ~ 2-3%, lab-grown diamonds are likely to stay rare for decades to come.
Lab-grown industry = 3000000 cts of rough per year
mining industry = 142000000 cts of rough diamonds per year
At the same time, the mined diamond industry has been facing constant oversupply year after year. And according to many scientific researches, there are still plenty of diamonds under the Earth’s crust. So the famous saying ‘a diamond is rare’ is nowhere near close to the truth.
In fact, many retailers are more concerned with rapidly increasing demand for lab-created diamonds from their customers - high quality lab-grown diamonds are hard to find. That’s why LaBrilliante is here to help!
Matching the annual supply of mined rough with one machine - 71000 years
Matching the annual supply of mined rough within one year - 71000 machines
(35.500.000,000USD + production cost: electricity/material/salaries etc.)