Exploring Diamonds: Real vs. Lab-Grown
Let’s dive into the world of lab-grown diamonds and their potential for investors. Lab-grown diamonds have seen remarkable growth, with the market skyrocketing from €1 billion in 2016 to €12 billion in 2022. In fact, half of all diamonds sold last year were lab-grown. People are drawn to them not only because they’re eco-friendly but also because they can be much more affordable than natural diamonds.
And the best part? Most of us can’t even tell the difference!
The Advantages of Lab-Grown Diamonds
One major advantage of lab-grown diamonds is the production process. While natural diamonds can incur a whopping 98% loss during mining, lab-grown diamonds face a minimal 2% loss. Plus, thanks to advancements, these diamonds can now be created in just one month.
The value of both natural and lab-grown diamonds has decreased in recent years, but lab-grown diamonds have taken a bigger hit. Why? Well, the process of making them has become more efficient and, as a result, cheaper.
Lab-grown diamonds are the fastest-growing segment in the luxury goods industry, boasting a remarkable 38% growth in one year. So, how can investors tap into this growth?
Investors need to tread carefully, though. The major player, Stone Lab Grown Diamonds, isn’t publicly traded. Instead, investors might want to consider smaller options like Signet Jewelers, which trades on the New York Stock Exchange. Signet Jewelers, a leader in selling jewelry, has started offering its own lab-grown stones. Trading at around $100 with an expected profit per share of $10 in 2024, it currently has a P.E. of 10.
Another contender in the market is Adamas One Corp, a pure lab-grown diamond company. While they have an intriguing video on their website explaining their process, they’re not yet profitable, so caution is advised.
In conclusion, the lab-grown diamond industry is booming, but it’s not without risks. For those interested in exploring investment opportunities, consider reaching out! Let’s grab coffee, share insights, and discuss how to start your investment journey.
P.S. To delve deeper into investing in diamonds on the stock market, check out the complete vlog on this topic at https://www.youtube.com/c/hugoinvesting.
“It’s a jungle out there, Trade Saf€”
Kaspar is founder of the Academy for Investors and CEO of the regulated broker Hugo Investing. He has over 26 years of financial industry experience. With a mission to empower both private and professional investors to become better at investing, Kaspar and his team draw on their combined 60 years of experience working closely with investors. They deeply understand the mistakes beginners often make and the opportunities they may overlook. Kaspar loves to share his expertise, inspiring and guiding investors on their journey to becoming more skilled traders and investors.
Founder of https://academy-for-investors.com/
CEO of https://hugoinvesting.com/
Vlogger at https://www.youtube.com/c/hugoinvesting
Former CEO BinckBank Spain https://www.binckbank.com/hugoinvesting
Former CEO Saxo Bank Spain https://www.home.saxo/about-us
Co-founder Alex Beleggersbank https://nl.wikipedia.org/wiki/Alex_(bank)
The information in this article should not be interpreted as individual investment advice. Although Academy for Investors compiles and maintains these pages from reliable sources, Academy for Investors cannot guarantee that the information is accurate, complete and up-to-date. Any information used from this article without prior verification or advice, is at your own risk. We advise that you only invest in products that fit your knowledge and experience and do not invest in financial instruments where you do not understand the risks.