Natasha Bernon, FGA
The current market is changing rapidly, with the price of gold on a sharp ascent, and lab diamonds on a gradual decline in the general retail market.
Something being ‘synthetic’ means it’s man-made, chemically identical to that of its natural counterpart, and sharing the same optical properties. Because of this distinction, lab diamonds have been marketed as a good alternative to natural diamonds under the guise of being both ethically and sustainably better than natural diamonds.
The sustainability angle can be debunked when you look at the two main methods of synthesization of lab diamonds – CVD (chemical vapor dispersion) and HPHT (high pressure high temperature), both of which require the use of fossil fuels either directly or indirectly. The largest producers of lab diamonds are based in countries outside the EU, where labour and sustainability laws are far from EU standards.
Another factor to consider is the sharp decline in the price realised of lab diamonds – they opened on the market still considerably lower than natural diamonds, which is why they were initially attractive for consumers and jewellers alike. However, since their introduction, they have rapidly decreased in value when bought new. There is even a jeweller based in New York that gives a free lab diamond replica of the client’s natural diamond ring as a travel ring. There was also a recent jewellery trade show in Hong Kong, which was advertising lab diamonds for free and only pricing the gold for pieces – “We only charge for the gold; the lab diamonds are free.”
Lot 393: Natural Diamond Line Bracelet. Price realised at O’Reillys €30,000 in October.
Natural diamonds have been proven to appreciate by 2% or 3% annually. It is true that the introduction of lab diamonds to the market initially brought about a little confusion to the natural diamond market. But the market has started to recover and the natural diamond prices are once again on a slow and steady increase.
Auction results over the last 12 months on a global stage have indicated that natural diamonds are still where people are choosing to invest their capital. Few items hold their value globally, so even gemstones (any stone other than diamonds) will command different prices based on geographical market tastes.
Upcoming Auctions at O’Reillys Fine Jewellery, Watches, Silver & Coins November 26 & December 10.
