Pandora Switches to Lab-Made Diamonds — What That Means for You
Diamonds are really pretty and strong stones, which makes them a good choice for jewelry that would be worn every day. In geologic terms, they aren’t all that special. Diamonds are crystalline carbon, and carbon is super common. About 12% of the average human is carbon.
To maintain the perceived value of diamonds, the De Beers corporation operated a cartel in the market. Its artificially inflated prices accommodated bad activity, such as the use of diamonds to fund terrorist activities in different African nations.
De Beers has lost its monopoly, many consumers are concerned about the origin of their diamonds and the world probably has too much carbon. This is a perfect setup for creating alternatives to mined stones. The world’s largest jewelry company, Pandora (OTCMKTS: PANDY), announced that it will be transitioning its diamond inventory to lab-created diamonds. This would allow it to sell diamonds at a lower price point while ensuring that its offerings are socially and environmentally responsible.
Bain & Company and the Antwerp World Diamond Centre released its annual report on the global diamond market in February. The study found that demand for diamonds fell off less than demand for other luxury jewelry during the pandemic, and the number of stones mined has been falling steadily. Prices are declining due to the increase in manufactured diamonds, especially in the Chinese and Indian markets. Of those consumers surveyed, 75% intend to continue purchasing diamonds at the same rate or higher in 2021 as in the past; they continue to see it as a desirable gift and a key element of a wedding.
Looking ahead, fewer diamonds will come from mines. Between the current amount of diamonds in circulation and the increased share of manufactured stones, diamond jewelry may become even more common without mining. The stones may lose some of their status, but they will still be pretty and strong.
More From GOBankingRates
- Money’s Most Influential: Where Do Americans Get Their Financial Advice?
- Don’t Miss Out on Nominating Your Favorite Small Business To Be Featured on GOBankingRates — Ends May 31
- ‘Rich Dad Poor Dad’ Author Robert Kiyosaki: You Should Never Say ‘I Can’t Afford That’
- Everything You Need To Know About Taxes This Year