Are Indian Retailers Ready to Stock Lab-Grown Diamond Jewellery?-Lab-grown diamond jewellery

The intention is to keep the two pipelines in BDB —natural and lab-grown—separate. Allowing lab-grown diamond trading will help sustain the Indian diamond manufacturing industry. The industry has always believed in being inclusive, and there is a place for every product to exist as long as the disclosures are made. I see no reason why natural diamonds and lab-grown diamonds cannot co-exist. Colin Shah, Chairman, GJEPCIs the end consumer ready for labgrown diamond jewellery? This question is gaining momentum with every passing day. Lab grown diamonds have been around for some time now, but only recently have they become widely known. Now, jewellers are able to offer the highest quality lab grown diamond jewellery at lower prices than competitors from other countries.

So, let’s get down to the brass tacks: What exactly are diamonds? Lab grown diamonds are identical to their natural counterparts in every way, except they are grown in a lab from a diamond seed instead of pulled from the earth. “Diamonds are made up almost entirely of pure carbon. That’s why both lab diamonds and mined diamonds have the exact same physical properties. They replicate the exact natural process that forms earth grown diamonds, but cost up to 40% less,” explains Parag Agarwal of Fiona Diamonds, Mumbai.

What impact will BDB’s decision have?
The Bharat Diamond Bourse is mulling over the possibility of offering trading options to lab grown diamonds along with natural ones. Possible guidelines include a separate application or registration for those who want to trade lab-grown diamonds and separate stock and inventory management systems.

Companies trading both natural and lab-grown diamonds may be asked to form two separate entities and set aside an office space solely for lab-grown diamonds.“The BDB members will have to adhere to a set of guidelines formed by the bourse’s management before they are allowed to trade in synthetic diamonds,” said Vice President Mehul Shah in a press release about the decision. “The intention is to keep the two pipelines—natural and labgrown— separate. Allowing lab-grown diamond trading will help sustain the Indian diamond manufacturing industry. The industry has always believed in being inclusive, and there is a place for every product to exist as long as the disclosures are made. I see no reason why natural diamonds and lab-grown diamonds cannot co-exist as both products are important for keeping the kitchen fires burning,” GJEPC Chairman Colin Shah said.

The intention is to keep the two pipelines in BDB —natural and lab-grown—separate. Allowing lab-grown diamond trading will help sustain the Indian diamond manufacturing industry. The industry has always believed in being inclusive, and there is a place for every product to exist as long as the disclosures are made. I see no reason why natural diamonds and lab-grown diamonds cannot co-exist. Colin Shah, Chairman, GJEPCAre retailers ready to take the plunge?
Although there is some confusion on whether natural diamonds are the same as lab grown diamonds, lab diamonds contain all the properties and characteristics that natural diamonds possess. The two are in every way the same—right down to their chemical and optical properties. Even trained geologists can’t tell the difference between the two with the naked eye alone. Explains Raghava Rastogi of Jugal Kishore Jewellers, Lucknow, “I don’t see lab grown diamonds becoming a rage in India for at least the next 5-6 years because the buyback concept in India is very strong and lab grown diamonds don’t have a definitive buy back structure. No manufacturer will take back lab grown diamond jewellery from any retailer. I am quite skeptical about selling lab grown diamonds.”

Lab grown diamonds have given rise to unscrupulous cases and that is why grading has become intensive. Labs have started using the word ‘natural’ diamond in their certification.Rajesh Kalyanaraman of Kalyan Jewellers explains, “Lab grown diamonds can never replace natural diamonds totally. The demand for lab grown diamonds seems to be rising in some circles, however, our nation-wide studies prove that almost all clients prefer natural diamonds. So Kalyan Jewellers will not stock lab grown diamonds anytime soon.” At the same time, “A few years down the line if the demand for lab grown diamonds shows a positive growth and many people start asking for it we may rethink our decision. In the near future, however, I do not expect any such change,” asserts Kalyanraman

I don’t see lab grown diamonds becoming a rage in India for at least next 5-6 years because the buyback concept in India is very strong and lab grown diamonds don’t have a definitive buy back structure. No manufacturer will take back lab grown diamond jewellery from any retailer. I am quite skeptical about selling lab grown diamonds. Raghava Rastogi, Jugal Kishore Jewellers, LucknowClients in India always demand naturally occurring diamonds and there is no one coming forward to buy lab grown diamonds. The technology available for manufacturing lab grown diamonds is evolving so fast that the mechanisms and machinery involved needs constant change. Currently, a well-made lab grown diamond looks exactly like a natural diamond – all factors are exactly similar. However, the Indian consumers are shying away from buying diamond jewellery.Despite the advantages of lab grown diamonds Pankaj Seth, Durga Das Seth Jewellers, Amritsar, says, “We would not deal in lab grown diamonds ever. Lab grown diamonds are chemical products, natural pieces will have their own charm. The only way to stop damage to the industry is by not dealing in lab grown varieties at all. If prices of natural diamonds are high so be it, but a good retailer will should never dilute the quality aspect. We will not deal in any type of synthetic stones.”

Drawing the distinction
“Lab grown diamonds are more like cosmetic jewellery – the profits may be high in lab grown variety – however, demand for lab grown is diamond is relatively absent among majority of customers coming in to buy diamond jewellery,” explains Rastogi. Pure Swarovksi crystals are akin to synthetic diamonds. In case of pure Swarovksi, the brand matters – they have a different supply-chain and the consumer class is different. There is no comparison between Swarovksi and naturally occurring diamonds. Similarly, one cannot compare lab grown diamonds and natural ones.

Will a sudden spurt in trading of lab grown diamonds give rise to unscrupulous activities among diamond jewellery retailers? To which Pratap Kamath, Abaran Timeless Jewellery, Bangalore says, “Those who want to engage in deceit will do so, no matter what – we cannot say because of lab grown diamonds entering the market such activities will increase. Wrong people are there in every field. They carry on with their malpractices no matter what. We cannot stop them. What we can do is provide increased authenticity to products we deal in -- we have gone in for a certification from Forevermark for all our diamond jewellery – stating that we have all naturally occurring diamonds in our jewellery. This gives an extra edge for the buyer to buy from our store.”

Naturally sourced diamonds like the Kohinoor diamond, or the Cullinan diamond, Star of South Africa, have stood the test of time – they are part of our history. Diamond jewellery is often part of a legacy in families – where these are heirloom pieces – what is the history of manmade diamonds – a lab? Shreyansh Kapoor, Kashi Jewellers, KanpurLab grown diamonds have no history
Shreyansh Kapoor of Kashi Jewellers, Kanpur. “Naturally sourced diamonds like the Kohinoor diamond, or the Cullinan diamond, Star of South Africa, these diamonds have stood the test of time – they are part of our history. Diamond jewellery is often part of a legacy in families – where these are heirloom pieces – what is the history of man-made diamonds – a lab? It sounds ridiculous.”

“The fact that BDB is planning to allow trading of lab grown diamonds will have no impact on the retail industry which decides to remain loyal to naturally sourced diamonds. This is because even before BDB existed small angadias have couriered and sold diamonds for generations –they used to open small pouches of select natural diamonds and sell it to manufacturers and retailers. Informal diamond trade has been mixed with trading in nonnaturally occurring diamonds for years now. The percentage of mix-up may have been miniscule – but it was there and retailers and manufacturers bought it despite knowing everything,” explains Kapoor.

In case of contemporary lab grown diamonds and naturally occurring ones, the refractive index is same, specific gravity is same, hardness of ten Mohs’ scale is same. Here, only the integrity of the trader comes into picture and the certification provided.

Sometime back, a Kimberly process and certification of origin was introduced to certify naturally occurring diamonds – how can anyone determine the origin for every diamond? It’s practically impossible. “My suggestion is – have a separate branding and supply-chain for lab grown diamonds and don’t juxtapose it with naturally sourced diamonds. Another suggestion is to start with coloured lab grown varieties,” adds Kapoor.

Mined diamonds have a crystal structure and so do lab grown diamonds. Lab grown diamonds replicate the crystal lattice-like structure of mined diamonds. “Despite their similarities, lab grown diamonds don’t destroy wildlife or harm workers. Lab diamonds grow in a controlled environment of extreme pressure and heat, known as High Pressure High Temperature (HPHT) or Chemical Vapor Deposition (CVD). Thanks to extensive research and practice, lab grown diamonds grow in the same way mined diamonds do,” explains Veeral Luvani of Finegrown Diamonds.

At present the Indian consumer at a macro level is not willing to spend on lab grown diamonds, many still prefer mined diamonds. In future however the scene could be different and people may view lab grown diamonds as a good substitute for naturally sourced diamonds.