As per some people, before the epidemic, artificial diamond supply would be more plentiful, and the mined stone business might retain the big carat market. However, the melee diamond market was perhaps lost back then.
You can find good lab grown diamonds at better rates, and jewelers set several small diamonds in jewelry pieces on the basis of their appearances. Therefore, the mined diamond market would find it harder to compete with the melee diamond market. Besides, when it comes to one of the engagement rings featuring 100 pave-set diamonds, it is difficult to claim that melee diamonds are more valuable than others.
Still, lately, small mined diamonds have turned into hot commodities as well as have had larger rate increases as compared to other categories. According to a recent Bloomberg write-up, there is a frenzy over small and cheap diamonds. Why? Because the whole market is popular now. Now, why have small diamonds become big?
Firstly, the Argyle mine’s closure and other manufacturing setbacks have impacted the distribution of small diamonds. That said, another potential explanation is more interesting. Lately, smaller artificial diamonds have become very trendy as well as rarer than before. The rates of the smaller stones had long been declining but have become stable now. Paul Zimnisky, a leading diamond industry analyst, has not found price stabilization for any lab-made products before this. Why? Because the artificial business mastered bigger sizes more quickly than expected.
European and American manufacturers are attempting to create bigger diamonds with higher quality since they expect bigger profits in that category. Consequently, it has become a crowded area of the diamond market, and the rate of a few of those products has been affected badly.
Furthermore, almost every smaller lab-created diamond is made in China, usually with the HPHT method and less often with the CVD method. However, trade and supply chain issues with the nation have caused it to be more difficult for the US to get the diamond manufacturing material. Besides, as the rates have declined, it has not been as profitable to make diamonds as in the past, which reduced their overall production. As per a lab-made diamond business insider, diamond manufacturers in China negatively impacted the process for everyone.
There is a strong requirement for CVD diamond melees, considering the apparent reluctance of a few US and Indian organizations to do trade with China.