Last fall, Gemworld began the Lab Grown Diamond Price Index in coordination with a new trading platform for LGDs founded by Jerry Ehrenwald, former director, IGI Laboratory in New York. www.lgdex.org. When the first price list was published in October 2019, we predicted that prices would fall over time due to the continuing increase in producers, greater supply, and the technology-based production, which is controllable and can grow as needed vs nature, which is uncertain, slow to grow, and expensive to produce, if even available. So far, the trend has been lower pricing for LGDs in part due to increased supply.
However, lab grown diamond producers debate the long-term pricing and do not think prices will tumble. In a JCK Online article by Rob Bates, he quotes several industry players from a webinar hosted by CIBJO. One participant, Richard Garad, secretary of the International Grown Diamond Association, noted that certain diamonds will always be hard to grow and prices will likely not fall. He also stated that demand continues to outpace supply.
We at Gemworld have talked to many jewelers that have entered this arena and have been pleased and successful so we agree that demand has greatly increased. Still, the production is even greater today with quick ramp up of factories and exponential growth in production. Considering prices are not going up, supply is keeping pace with demand as both grow tremendously.