Natural Diamonds are the Future

Gold at a record high, lab diamonds on the decline – what does this mean for the jewellery market at auction?

The current market is changing so rapidly, with gold on a sharp accent of the price per oz and the gradual decline of lab diamonds in general retail market.

The definition of synthetic is a man made, chemically identical to that of its natural counterpart, and also shares 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 require the use of fossil fuels either directly or indirectly. The largest producers of lab diamonds are based in countries outside of the EU where the labour and sustainability laws are far from EU standards.

Another factor to consider is the sharp decline of the prices 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 away a lab diamond replica of the client’s natural diamond ring for free with their purchase as a travel ring. There was 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”.  

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.

Recent sale results over the last 12 months at auctions 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, even gemstones (any stone other than diamonds) will command different prices based on geographical market tastes.

Carat – Carat is the weight of a stone. It is the unit of measure we use for diamonds and gemstones, where 1 carat = 0.2 gram. All other factors being equal, i.e., colour clarity and cut, prices for diamonds are usually given per carat.

Colour – colourless to near colourless diamonds, all other factors being equal, the more colourless the diamond the greater the value. With fancy colour diamonds the rarity, desirability and intensity of colour would affect the price. The introduction of impurities within the diamond can relate to the colour that is observed.

Clarity – The clarity of a diamond refers to a stone’s freedom from inclusions, graded from a scale of ‘flawless’ to ‘imperfect’.

Cut - The better the cut the greater return of light, this will make the stone bright and lively and so improve the appearance of the stone. 

Natasha Bernon FGA

Lot 283: A DIAMOND THREE STONE RING, the old cut diamonds mounted in platinum. Estimated: weight of diamonds: 2.85 ct & 1.75 ct x 2, size O €35,000 - €40,000

Lot 225: A DIAMOND SET ART DECO STYLE PANEL BRACELET, the interlinking four geometric panels set with round & baguette cut diamonds, mounted in white metal. Approximate: diamond weight: 18.80 ct., together with a AGI gem report €30,000 - €32,000

Lot 326: A DIAMOND SOLITAIRE RING, the brilliant cut diamond mounted in platinum. Together with a IGI diamond report stating: 2.00 ct, colour and clarity: E, VS2, size J €20,000 - €25,000

Lot 330: A 19TH CENTURY SUITE OF ANTIQUE DIAMOND JEWELLERY, comprising a snowflake cluster brooch and a pair of cluster earrings with detachable drops, set throughout with old cut diamonds and mounted in rose gold and silver. Estimated: weight of large snowflake: 4.80 ct,, cluster earrings: 2.00c t, drops: 2.20 ct, total weight of diamonds 9.00 ct, The pear shape drops ca 2.20 ct., the small clusters ca 2.00 ct. Estimated: weight of large snowflake: 4.80 ct, in original fitted velvet and leather case €12,000 - €16,000