Romancing the stone, and not breaking the bank
And, it's all possible because prices are dropping for both natural gems as well as lab-grown diamonds (LGDs) as more manufacturers enter this segment of the jewellery market.
LGDs have seen price drops in the range of 45-50%, while the natural diamond category has seen a price drop of 35-40%, as the economic slowdown in developed markets of the US and China has hurt demand for the gemstone.
Six months ago, a 1-carat LGD ring at the retail level was priced at ₹2 lakh. But now it costs ₹80,000-₹1 lakh.
Similarly, a 1-carat natural diamond ring was priced ₹8 lakh six months ago but now it has dropped to ₹5 lakh, a decline of 37.5%. Diamond solitaire rings are flying off the shelves, as well-heeled customers take advantage of this trend.
«Customers come with a mindset to buy 3 carats of LGD.
But when they find the price comfortable, they upgrade to a 5-carat,» said Pooja Sheth Madhavan, founder of Limelight Lab Grown Diamonds, the country's largest LGD jewellery brand.
With LGD manufacturers marketing the stones as an investment proposition, offering resale and buyback opportunities, they are an attractive option for millennials, high networth individuals, and upper middle-class buyers, she explains.
The exchange and buyback offers give customers the confidence to invest in bigger solitaires, say industry experts.
Shamlal Ahamed, managing director (international operations) of Malabar Gold & Diamonds, says that anniversary gifts are the top segment opting for upgrades. «Someone who had presented a 1-carat natural diamond solitaire to his wife five years ago, now comes to our store and upgrades it to 3 carats.
