Pandora which is the world’s biggest jewelry maker said it will no longer sell mined diamonds and will focus on laboratory made diamonds. Pandora is said to ditch the mined diamonds for the diamonds grown in the lab. Let’s look at what exactly is lab diamonds and the reason for Pandora to use Lab Diamonds in the future.
Pandora is a jewellery manufacturer and a retailer company. It was founded in the year 1982 and has its headquarters located in Denmark. The company has around 7,090 locations with its service spread across the globe.
The company is known for designer rings, necklaces, charm bracelets and watches which it discontinued lately. The company has a production site in Thailand and markets its products to more than 100 countries in 6 different continents.
Why Pandora will only Sell Lab Diamonds
On 4 May 2021, Pandora announced that it would remove the mined diamonds from its glass cases and would concentrate on selling the diamonds that are generated in the labs. This is considered as a pointed move from an industry that is dependent on scarcity for value and consumer demand for sustainability and ethical sourcing.
The sentiments of the younger buyers who are more likely to focus on the environmental factors and the concerns regarding human rights before purchasing the products with the changes in the market due to the coronavirus pandemic has led Pandora to shift into man-made diamonds which is easy to be produced at a fraction of time and cost.
The chief executive Alexander Lacik said that this is the right thing to do and said that they are focusing on becoming a low carbon business. He added saying that he has 4 children and that he would leave the earth someday. He says that the step taken by the company is to try to leave the earth in a better shape than the one created in the last 50 years.
In the United States and especially in countries such as China and India, younger consumers have said that one of the important factors they consider in their decision-making process is sustainability and the added saying that this factor would be an influence while deciding on the purchase of jewellery.
What are Lab Diamonds
Pandora claims that its lab grown diamonds have the same physical and chemical characteristics compared to the mined diamonds. They are also graded based on the carat, clarity, colour and cut. The lab diamonds are created in hot pressurized chambers which would require a lot of electricity.
The diamonds can be produced in a week’s time and can be produced within one third of the mining price. Even though it uses a lot of electricity this method is considered sustainable as the mined diamonds that are pulled from the earth would take centuries to form.
Stephen Morisseau who is a spokesman for a non-profit institution called Gemological Institute of America said that both the diamonds natural and the diamonds grown in the laboratory have a place in the market that is based on the consumer choices and preferences. The Gemological Institute developed the international diamond grading system.
He added saying that both natural and diamonds grown in the laboratory are diamonds and while they are not exactly identical, they share the same optical chemical and physical properties.
According to a report from Antwerp World Diamond Centre and Bain & co the retail diamond industry has a valuation of around USD 64 billion which has pushed back against the synthetic diamonds. As the diamonds grown in the laboratory are considered to be a threat to the scarce real diamonds which are highly profitable.
But the lab made diamonds are significantly considered to be less expensive. Compared to the real diamonds the lab grown diamonds are less costly as much as one tenth of the cost. This interests the younger customer base due to the concept of affordability.
Future of lab grown diamonds
In the year 2020 the production of lab grown diamonds had reached to the rate of up to 6 million to 7 million. This led to the fall of retail diamond prices where the wholesale prices remained stable in the markets concentrated in the United States.
If there is a further price drop for diamonds, lab grown diamonds would be opened up for a broader range of consumers from all income groups and diamonds would move from a luxury category into the fashion category making it more affordable.
Do lab grown diamonds have resale value?
Lab-created diamonds have very little to no resale value.
Do lab grown diamonds last?
Lab diamonds as durable as natural stones, but they're also chemically, optically, thermally, and visually identical to mined diamonds.
Can you resell a lab grown diamond?
Yes, you can resell a lab grown diamond.
Pandora’s diamonds are being produced using more than 60 % of renewable energy and they claim that with a global launch it would reach up to 100 % renewable sources for manufacturing of diamonds. The company is expecting to reach carbon neutrality by 2025.