LGDS
Are diamonds a good investment option?
Falling prices and an unhealthy secondary market do not make it a good investment.
Are lab-grown diamonds forever? Examining their impact on the natural gems business
It’s 2024, and that carefully crafted chain of the diamond business is now being disrupted. Enter lab-grown diamonds (LGD). A lab-grown diamond, priced a fifth of a stone coming from a De Beers mine in Africa or from the Russian giant Alrosa, looks indistinguishable from a mined diamond. That alone has kindled consumer demand.
Four lakh workers face salary delays as lab diamond prices fall
Nearly four lakh workers in Surat's LGD industry face wage delays and job uncertainties due to falling prices of lab-grown diamonds, impacting revenue of units. Export demand is not as expected, leading to concerns of job losses. Export volume growth has slowed down, and the value of lab-grown diamonds has fallen significantly.
Rising gold prices drive Indian consumers towards lab-grown diamonds
The recent rise in gold prices has shifted consumer interest towards lab-grown diamond (LGD) studded jewellery due to its affordability. Major metropolitan areas are witnessing a surge in demand, with growth rates exceeding 15%, particularly in tech-populated cities like Pune. Consumers appreciate the value proposition of LGD jewellery, which offers more gold proportion within the same budget compared to natural diamonds.
Global glut takes shine off Indian lab-grown diamonds
Indian lab-grown diamonds (LGDs) prices crashed by 45% in FY24 due to overproduction in global markets. Indian LGD exports dropped by 18.2% in April to $83.77 million as demand rises with increasing gold prices, prompting consumers to opt for LGDs to reduce jewelry costs.
Lab-grown diamond exports expected to grow by 7-9% in FY25: Report
The Lab-grown Diamonds (LGDs) exports are set to rebound in FY25, with an expected growth of 7-9% to reach around US$1500-1530 million, as per CareEdge Advisory. Despite recent declines due to falling prices, LGD demand is poised to increase due to factors like cost-effectiveness and environmental sustainability, with India emerging as a key player in the global LGD market.
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Top jewellery chains shy away from lab-grown diamonds amid lack of consumer interest
Top jewellery chains like Kalyan Jewellers and Tanishq are hesitant to adopt lab-grown diamonds due to low demand. Despite the growing popularity globally, Indian retailers like Joyalukkas remain cautious about integrating LGDs into their stores.
Diamond exports set to fall by 25-30% to multi-year low this fiscal
India is the world's largest centre for diamond cutting and polishing, accounting for around 95 per cent of the world's polished diamond production, while the US and China are the primary consuming markets, together accounting for around 65 percent of the country's exports.
Lab-grown diamond exports decline in December despite price fall
Lab-grown diamond manufacturers say that the export figures are down because of the price correction even though the export volume has increased. Export of polished LGDs for the period April -December FY24 stood at US$ 1024.6 million showing a decline of 22.97% over the comparative figure of US$ 1330.18 million in FY23.
Gem and jewellery exports face downturn: FY24 witnesses 20.78% YoY drop amid global economic challenges
Gem and jewellery exports in FY24's April-December plunged by 20.78% YoY to USD 22.7 billion, attributing the decline to global economic challenges and geopolitical factors. The import of gems and jewellery also saw a 22.43% YoY decrease. Notably, rough diamonds imports fell by 23.51%, while cut and polished diamond exports declined by 28.27%. Lab-grown diamonds, previously on the rise, experienced a 22.97% dip in gross exports. Despite the current setback, industry experts, including Colin Shah of Kama Jewelry, anticipate a gradual recovery from the 3rd quarter of FY25.
What are lab-grown diamonds, are they worth buying?
Young Indian buyers prefer lab-grown diamonds (LGD) in comparison to their mining counterparts due to the affordability factor. Lab-grown diamonds, also referred to as synthetic or cultured diamonds, are created using cutting-edge technology that mimics the natural diamond-growing process. LGDs have seen price drops of around 50 percent, while the prices of natural diamonds have declined 40 percent.
Lab-made diamonds grow on buyers this Dhanteras-Diwali
Lab-grown diamonds, which emerged as a new category and an alternative to the pricier natural diamonds, became more popular in this year's festive season as prices plunged to less than half year-on-year. Prices of LGD rings with 1 carat solitaire fell to ₹80,000 to ₹1 lakh from ₹2 lakh last year, a fraction of about ₹5 lakh for 1 carat natural diamond ring.
Over 35 lakh weddings in coming months promise strong season for jewellery retailers: Vipul Shah, GJEPC
Global demand has remained on the lower side in the past few months. India’s gems & jewellery sellers can take relief in the strong festive and wedding season coming ahead.
Romancing the stone, and not breaking the bank: Why diamonds are a good deal this festive season
Six months ago, a 1-carat LGD ring at the retail level was priced at ₹2 lakh. But now it costs ₹80,000-₹1 lakh. Similarly, a 1-carat natural diamond ring was priced ₹8 lakh six months ago but now it has dropped to ₹5 lakh, a fall of 37.5% . Diamond solitaire rings are flying off the shelves, as well-heeled customers take advantage of this trend.
Diamond houses hope to cut through slump in next four months
The trade that suffered a 30% drop in prices of natural stones and dealt with over 50% slide in lab-grown diamond (LGD) prices in the past one year, is in touch with global mining giants like DeBeers for marketing assistance after putting a temporary ban on imports.
Demand for diamonds hit in key consuming markets but India performing well: De Beers’ Paul Rowley
Lower disposable income is affecting the demand for diamond jewellery in key consumer markets. De Beers expects the situation to improve once the broader macroeconomic environment stabilises.
Last nail in coffin? Israel-Hamas conflict makes diamond players ask if they should revisit trade strategy
The battle in West Asia in itself would not have worried India’s diamond cutting and polishing units. But it is a blow to an industry already hit by the Russia-Ukraine conflict and falling global demand.
Lab-grown diamonds set to catch festive sparkle
Even high-net-worth individuals (HNIs) have taken a shine to lab-grown diamonds, which earlier attracted mainly the 18-35 age group that could not afford natural diamonds, said people in the know. This, they said, has prompted listed players like Senco Gold & Diamonds to enter the market in this financial year to tap into the growing demand. Price remains a key magnet for customers, to be sure, as a carat of lab-grown diamond (LGD) costs ₹60,000-70,000, a fraction of ₹10-11 lakh for a natural diamond. "
Creating the next Cartier: Indian jewellers can aim for a $30-billion opportunity with some branding
India is known for mass and fast manufacturing of jewellery. However, working on nuances such as design development, innovation and production can help it be seen as much more than just a low-cost manufacturing centre.
Exports of lab-grown diamonds slump 28.57% YoY despite government backing
Manufacturers of lab-grown diamonds (LGD) – which are 80% cheaper than natural diamond – also claimed that export volumes have increased with the US being the largest importer. They attributed the fall in export value to price instability after several new players entered the market.
What’s driving growth for Chola Investment? CFO Arul Selvan answers
Chola Investment & Fin's President & CFO, Arul Selvan, says that the asset quality for Q1 will deteriorate slightly as collection efforts were high due to end-of-year activities in Q4. However, Chola Investment AUM has seen healthy growth across all verticals, especially vehicle finance and SME business. The cost of funds is expected to moderate going forward, and the new rate book for vehicle finance will take at least three to four quarters to reflect the new rates. Despite provisions tripling, the asset quality is performing much better than pre-COVID on a quarter-on-quarter basis.
Shining bright: Why Indian exports of lab grown diamonds have risen six-fold in three years
LGDs have been gaining traction globally because of factors such as price and awareness about conflict diamonds. Being more self-reliant in the trade and investing significantly in R&D can take things up a notch for India.
PNB buries ghost of 2018 to fund lab diamonds
Under the new policy that was finalised a few weeks ago, the public-sector bank would give working capital as well as term loans to manufacturers of lab-grown stones against 100% collateral security and high internal rating of the borrower, said a person familiar with the bank's internal circular.
Lab-grown diamonds to be 10% of total polished exports in three years: ICRA
Lab-grown diamonds (LGD) have witnessed a sparkling rise over the last three years and accounted for 7.5% of the total polished diamond exports from India in the first nine months of FY2023, up from 1% in FY2019. Besides attractive prices, LGDs have lower carbon footprint compared to natural diamonds, are less prone to supply disruptions and can be produced in different varieties with a high degree of customisation.
Budget 2023: Govt to cut import duty on raw material for lab-grown diamonds
"With the depletion in deposits of natural diamonds, the industry is moving towards Lab Grown Diamonds (LGDs) and it holds huge promise. To seize this opportunity, I propose to reduce basic customs duty on seeds used in their manufacture," she said.
Gem, jewellery industry seeks abolition of import duty on raw material for lab-grown diamonds in Budget
About jewellery repair policy, Shah said that countries like UAE, Hong Kong and Turkey are major competitors of India as they have a simple policy of re-importing jewellery for repair and sending it abroad. "India undoubtedly has the potential to be the global repair capital in gems and jewellery. Large exporters shall find it easy to open their service centres here for the import and re-export of jewellery exported by them abroad on an outright basis. This will create jobs, transfer technology and increase exports from India," he added.
GoI to increase export as part of growth strategy; gem and jewellery sector to reach $45.7bn in 2022-23
The entire supply chain of the G&J industry is transforming - from the thrust on the sunshine segment of lab-grown diamonds (LGDs) that has energised India's export performance, to the emergence of hybrid retail models, application of new-age technology for innovative jewellery and the use of artificial intelligence (AI) for sales and consumer data aggregation.
Lab-grown diamonds come to the rescue of 2.5 lakh workers in Surat
Exports of lab-grown diamonds have increased by 108.27 per cent in FY22 as compared to FY21. The diamond trade has also urged the commerce minister to bring lab-grown diamond under PLI (production-linked incentive) scheme as it has an export potential of Rs 40,000 crore within next five years.
India set to become a major hub of lab-grown diamonds
India accounts for about a quarter of the estimated global laboratory-grown diamonds output of 6 to 7 million carats.
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