As natural diamonds gain popularity as an investment choice with promising returns, several key considerations are shaping the narrative for buyers in the UAE.
The Natural Diamond Council (NDC) has released its latest report, titled ‘Diamond Facts: Busting Myths About the Diamond Industry,’ aimed at providing buyers with crucial information to make informed decisions when investing in diamonds.
Sustainability
The report challenges the belief that all lab-grown diamonds are sustainable. While lab-grown diamonds are often marketed as eco-friendly, the manufacturing process is energy-intensive and relies heavily on fossil fuel-based energy sources.
Ethical sourcing and sustainability remain key priorities for the natural diamond industry, as it strives to decarbonize operations and protect biodiversity.
Pricing
Natural diamonds are exceptionally rare and take millions, if not billions, of years to form, making them highly coveted. Analysts have noted a significant drop of over 74 percent in the price of lab-grown diamonds over the past six years, while natural diamond prices have demonstrated a consistent annual increase of 3 percent.
This trend suggests that lab-grown diamonds may find their place primarily in fashion or semi-precious jewelry categories, while natural diamonds are expected to retain and increase their long-term value.
Quality
Professional verification instruments are available to easily differentiate between lab-grown and natural diamonds. Retailers and jewelers selling lab-grown diamonds are legally obligated to disclose their origin and provide relevant grading reports and certifications.
Transparency
In the UAE, recent announcements regarding 100 percent resale value on diamonds have generated increased interest among consumers across different age groups. To further enhance transparency in the diamond supply chain, industry stakeholders, including key players such as Al Jawhara and La Marquise, have partnered with the NDC in the Gulf Cooperation Council (GCC) region. These collaborations aim to accelerate traceability initiatives and ensure higher value for consumers.
GCC jewelers embrace natural diamonds
Tawhid Abdullah, CEO of Jawhara Jewellery and Chairman of the Dubai Gold & Jewellery Group (DGJG) said: “At Jawhara, we firmly believe in the unparalleled allure and enduring significance of natural diamonds. And so we have partnered with Natural Diamond Council (NDC), an organization that shares our commitment towards promoting these wonders of nature.
“We support the Diamond Facts report released by NDC, as it is helping create transparency and dispel common myths in the industry. Our common goal is to empower the consumer in the GCC to make informed choices when it comes to purchasing natural diamond jewelry.”
Nishith Shah, CEO of La Marquise Jewellery said: “La Marquise jewelry was created for the young, informed ‘glocal’ consumer and to fulfill their desire for exquisite, exclusive natural diamond jewelry. As a brand, we have collaborated with the Natural Diamond Council as we both believe in the significance and beauty of these precious gems.
“We are very happy to promote the NDC’s Diamond Facts report as it dispels misconceptions and offers real, fact-based information to the GCC consumer on both natural diamonds and lab-grown diamonds, leading them to making an educated choice.”
Richa Singh, Managing Director – India & Middle East, Natural Diamond Council said: “Today’s consumer is making conscious, mindful choices, and are looking for reliable, trust-worthy and transparent information. At Natural Diamond Council, one of our key missions is to inspire, educate and protect consumers from misinformation.
“The ‘Diamond Facts’ was launched with the objective of busting myths and clarifying misconceptions about diamonds, and advancing the integrity of the modern diamond industry. We are happy about the positive response we have received in the GCC region and will continue to work towards building the diamond dream here, and across the world.”
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