Findings of a new survey conducted by the Diamond Producers Association (DPA) and KRC Research released recently, found that “over 53 million Americans (21%) plan to purchase a diamond between Thanksgiving and Valentine’s Day”. The survey also found that the consumer categories for “these authentic symbols of love” were most likely to be men and Millennials, this holiday season. “Of Americans who plan to buy a diamond, more than 20 million plan to buy a diamond engagement ring,” DPA said in a press release.

One question that the natural diamond industry has been pondering – about consumer perception – since lab grown diamonds have been popularised in the jewellery marketplace, has been answered by the survey. 

“The survey confirmed that there is clear confusion among diamond purchasers about the differences between natural diamonds and laboratory-created diamonds, including differences in value, rarity, physical growth structure and origin,” DPA noted.

“Diamonds shine especially bright this year,” said gemmologist and diamond expert Grant Mobley. “Consumers, especially Millennials, are seeking ways to share authentic, emotional and lasting symbols of love with the special people in their lives.”

While it may seem that there is reason for cheer, it comes with a caveat. For, Mobley warned, this year the arrival of synthetic, or lab-created, diamonds can cause consumer confusion at the jewellery counter. He urged diamond shoppers to do their homework, so that they can ensure they are confidently buying a natural diamond, DPA said.

Nearly half of diamond purchasers (44%) were unaware of the significant differences in value, rarity, physical growth structure and origin between natural diamonds and laboratory-created stones, the survey found.

“However, more than seven in 10 (71%) became more likely to buy a natural diamond over a laboratory created diamond as they learned the differences,” DPA underlined.

The organisation went on to spell out the key differences between natural diamonds and laboratory-created diamonds which include:

• Natural diamonds are significantly more valuable than laboratory-created diamonds.

• Each natural diamond is rare because it is unique and authentic; laboratory-created diamonds are not rare because they can be made in unlimited quantities.

• Natural diamonds can take millions or even billions of years to be created in the earth; laboratory-created diamonds are typically made in two weeks.

• Natural diamonds and laboratory-created diamonds have easily detectable differences in their physical growth structures.

The survey also found that more than three-quarters (78%) of Americans are more likely to consider purchasing a natural diamond once they learn of the positive social, economic and wildlife conservation impacts of the diamond industry.

Summarising the key facts that influence purchasing decisions the DPA stated them as:

• The diamond industry supports 10 million jobs around the world and contributes US$ 8.4 billion a year to African economies.
• Investments by the diamond industry protect vulnerable wildlife around the world, including thousands of caribou, grizzly bears, and elephants.
• 99.8% of diamonds on the market are certified conflict free through the Kimberley Process.

The survey was conducted between November 5-7, 2018 by KRC Research. The study assessed a nationally representative population of over 1,000 U.S adults aged 18 and over. “The new survey adds to a body of credible and statistically significant surveys conducted by DPA,” stated the organisation whose members account for the bulk of the world’s rough diamond production. “This research underpins the steady demand for diamonds, appreciation for the positive impact of the diamond industry, and the need for transparency about the differences between diamonds and laboratory-made diamonds.”

DPA spelt out the objectives of the survey as understanding the US consumers’ responses with regard to:   

• Current likelihood to purchase a natural diamond between Thanksgiving and Valentine’s Day.
• Change in likelihood to purchase a natural diamond once made aware of the positive impact the diamond industry has on the world.
• Current understanding of the differences between natural diamonds and laboratory-created diamonds.
• Change in likelihood to purchase a natural diamond versus a laboratory-created diamond when aware of key differences.
• Change in the likelihood to purchase a laboratory-created diamond once made aware of the positive impact the diamond industry has on the world.

The survey’s key findings have been summarised by DPA as:

A/ Plans to Purchase and Current Knowledge of Diamonds

• More than 1-in-5 Americans plan to purchase a diamond between Thanksgiving and Valentine’s Day (21%), with men and millennials among the most likely to be in the market this holiday season.

• 35% of millennials plan to purchase a diamond, and more than 1-in-10 plan to buy a diamond engagement ring (13%).
• 27% of men plan to purchase a diamond, and more than 1-in-10 plan to buy an engagement ring (11%).

• Purchasers’ decision to buy a natural diamond is reinforced when made aware of the positive impact of the diamond industry   

• More than 3-in-4 Americans who already plan to buy a diamond say they are even more likely to consider purchasing a natural diamond when made aware of some of the positive impacts of the industry (78%).
• More than 4-in-5 of those planning to purchase a diamond engagement ring are more likely to consider their purchase with knowledge of these positive impacts.

B/ Understanding the Differences between Laboratory-Created and Natural Diamonds

• Knowledge of the difference between natural diamonds and laboratory-created diamonds is less common.

• 7-in-10 are unaware of any specific differences between natural diamonds and laboratory-created diamonds.
• 3-in-10 are aware of the differences in value, rarity, physical growth structure and origin between natural diamonds and laboratory-created diamonds.

• Over a third of men indicate they are aware (34%) compared to just over a quarter of women (26%).

• Nearly half of diamond purchasers (44%) and more than 3-in-10 engagement ring buyers are aware of the differences in value, rarity, physical growth structure and origin (31%).

C/ Understanding key differences between natural diamonds and laboratory-created diamonds increases diamond purchasers’ likelihood to buy a natural diamond.

D/ Diamond purchasers and consumers in general are even more likely to consider choosing a natural diamond over a laboratory-created diamond when they understand the positive impact of the diamond industry.

“Highlighting the positive impact that the natural diamond industry can significantly increase a purchaser’s likelihood to consider choosing a natural diamond over a laboratory-created diamond,” DPA stressed in conclusion. “Highlighting natural diamonds’ significantly higher value and uniqueness over laboratory-created diamonds can show those looking to purchase a diamond just how special they really are.”