Hey there, it’s Mike Fried and Ira Weissman,
the Diamond Pros.
Today we’ll be talking about a pretty hot
topic lately; lab created diamonds.
Lab created diamonds are the new kids on the
block, so it stands to reason that there is
a lot of chatter about them.
Let’s get something out of the way at the
beginning.
Lab created diamonds have the same characteristics
as a natural diamond.
That is not what we’ll be talking about.
We’ll be focusing on whether its a good
idea for you, the consumer, to buy an engagement
ring with a lab created diamond.
Lab created diamonds became a serious option
for consumers in 2016.
At that point, the prices were roughly the
same as the prices for natural diamonds.
Since then there has been a huge drop in prices
for lab created diamonds.
Lab created diamonds that cost $2,000 a year
ago are going for less than $1,400 less than
a year later.
Thats sounds great for the consumer, right?
Well, not so much.
Here’s the thing about lab created diamonds.
There is no floor to the price.
The only thing that is keeping the price up
on lab created diamonds is technology.
As they increase in popularity, you see manufacturers
rushing to reduce the costs of manufacturing.
There is nothing stopping that $1,400 diamond
from being $200 in a couple of years.
At the same time, a natural diamond that was
selling for $2,000 a year ago is selling for
roughly $2,100 today.
Natural diamond prices do go up and down,
but historically their value goes up slowly
but surely over time.
Buying a natural diamond today seems a pretty
sure bet that your purchase will retain value.
On the flip side, buying a lab created diamond
seems like a fool's errand to me.
Yes, it will be cheaper right now.
But no one wants to make a fancy, expensive
purchase only to see them on sale at Walmart
for 80% cheaper in a few months.
In economic terms, this phenomenon is called
“deflationary expectations” and just knowing
that prices will be going down can drive down
the prices even faster and further now.
If you have any other questions, or would like some help picking out the perfect diamond ring,
feel free to contact us. One of our diamond consultants will be happy to help you find the perfect engagement ring.
Once again, it's Mike and Ira, the Diamond
Pros.
Thanks for watching.
