High Retail Margins on Synthetic Lab Grown Diamonds

Posted in: Diamonds

High Retail Margins on Lab-Grown Synthetic Diamonds

Here at diamonds.co.nz we have made the decision not to sell or promote lab-grown diamonds.

This is not to say that we dislike lab-grown diamonds as we class them as a new category for the jewellery industry. This will be very much like sterling silver and gold is to high end Jewellers where the younger generation purchase silver jewellery and lab-grown diamonds and as they get older and more affluent, they progress to gold and platinum and natural diamonds.

Going forward, the affordability of lab-grown diamonds will become more in line with the traditional margins used historically for lower priced jewellery products. Currently the margins applied to lab-grown diamonds are well above the usual margins from their low starting point and this will be of concern to anyone who has purchased recently.

Synthetic ruby and sapphire have been in the jewellery market for decades and they were never priced by being compared to natural ruby and sapphire prices. Therefore, why should synthetic lab grown diamond prices be based off natural diamond prices as lab grown diamonds, although chemically and optically the same their origins are a completely different product.

The following prices are what a loose round lab-grown diamonds, F colour, VS1 clarity excellent cut, polish and symmetry and no fluorescence should be sold for in New Zealand using historic retail margins:

1.0ct - $835.00

1.2ct - $960.00

1.5ct - $1,200.00

2.0ct - $1,575.00

These prices are in NZD, including GST and calculated at 0.56 exchange rate against the USD.

If you are quoted prices higher than the above, please consider finding another lab-grown diamond retailer.