An Insight Into The Lab-Grown Diamonds Industry
An Insight into The Lab-Grown Diamonds Industry Introduction Naturally formed Diamonds Diamonds are a symbol of everlasting love that endures through all hardships and pains to retain a sparkle that doesn’t wane. Like love, diamonds withstand their own share of torments. 120kms below land, under pressures of 45kbar, through intense heat of 900°C-1300°C, and over hundreds of millions of years, when carbon crystallises to form diamonds, this miracle is conceived. And then, when any event deep in the earth causes magma to erupt to the top, from great depths, these diamonds are transported to the surface, where they are found embedded in rock structures called kimberlite. What are lab-grown diamonds On the other hand, lab-grown diamonds, or cultured diamonds, are grown in highly controlled laboratory environments using advanced technological processes that duplicate the conditions under which diamonds naturally develop when they form in the mantle, beneath the Earth’s crust. These labcreated diamonds consist of actual carbon atoms arranged in the characteristic diamond crystal structure. Since they are made of the same material as natural diamonds, they exhibit the same optical and chemical properties.
Lab-grown diamonds display the same physical, chemical and optical characteristics as natural diamonds. As a result, even trained diamond and gem experts find it difficult to differentiate between both even with a microscope. The main difference lies in their chemical compositions which is highly influenced by their origins. Natural diamonds have tiny amounts of nitrogen, whereas lab-grown diamonds have none. ‘Fluorescence’ also acts as a discerning factor to determine which one is a natural diamond and which one is lab-grown. Fluorescence refers to the afterglow effect that remains after an initial exposure to UV light. Lab-grown diamonds tend to display fluorescence, unlike natural diamonds. This fluorescence can be checked using advanced equipment. Origin of lab-grown diamonds The history of lab-grown diamonds is a subject of dispute. Two accounts of which have been given below. History as given by International Gem Society The discovery that diamonds were made up of pure carbon was made in 1797. This revelation catapulted the science world into a frenzy. For the entirety of the 19th century, scientists made attempts to recreate the necessary conditions for the formation of diamonds inside their labs. And although, there were claims of success, such claims were rejected consequent of failure to replicate the results. ‘Project Superpressure’ was the first to achieve this ground-breaking feat. General Electric began efforts on this project in 1940, but work had to be postponed due to the breakout of the second world war. For years, scientists experimented with various methods, temperatures, and pressures to produce diamonds from carbon. Using a high-pressure belt press, they subjected small seed crystals to temperatures of 1,600°C (2,912°F) and pressure of 100,000 atm. In this device, they dissolved graphite — another mineral made of pure carbon — in metals, including iron, nickel, and cobalt, to accelerate the transformation of graphite to diamond. At one point, the resulting material broke the scientists’ cutting tools. This was, when they realised, they had achieved the characteristic Mohs hardness of 10 found in diamonds. Diamonds are known to be hard enough to scratch and destroy metal tools. A team of scientists, including both, Herbert Strong and Howard Tracy Hall, received credit for this discovery. The diamonds GE produced via this process were far too small for gem use. Instead, they were used for industrial purposes. Nevertheless, this discovery paved the way for GE to create gem-quality crystals in 1971. Their process used a tube to add heat and pressure to a graphite seed in the centre until it grew into diamond. Initially, these lab-grown diamonds faced many issues. The high temperatures and pressures required were far too expensive to economically compete with natural diamonds. They were often found to have a yellowish tint caused by the nitrogen content and had many inclusions (unwanted materials trapped inside gems). These diamonds didn’t receive high grades in comparison to white / colourless diamonds on the basis of colour and clarity. Some further adjustments lead to the production of colourless diamonds. Within a few decades, research by scientists in the United States, Russia, and China made it possible to create diamonds in laboratories that could exceed natural diamonds in carat (size), colour, and clarity. Slowly, these gems made their way into the diamond market. History as given by Gemological Institute of America • 1950s: Union Carbide produces the first Chemical Vapor Deposition (CVD) diamonds in 1952. Others produce diamonds using the high pressure, high temperature (HPHT) method soon after. These diamonds are used for industrial purposes, such as in telecommunications and laser optics and as abrasives and more. • 1970s: General Electric researchers create the first gem-quality laboratory-grown diamonds. They are of high enough clarity and large enough size to be used in jewellery. GIA scientists publish the first scientific study of laboratory-grown diamonds in 1971. • Mid-1980s: Manufacturers grow commercial quantities of gem-quality laboratorygrown diamond crystals. These lab-created diamonds are initially mostly small and yellowish or brownish in colour, but their quality improves over the ensuing decades. • 2000s: Gem-quality diamonds are created using the chemical-vapor deposition (CVD) method, which requires lower pressures and temperatures than the HPHT method. • Mid-2010s: Colourless laboratory-grown diamonds are available in the jewellery market in commercial quantities. Both HPHT and CVD continue to be popular methods of laboratorygrown diamond production. Production Lab-grown diamonds are manufactured in a setting that is specifically developed to replicate the conditions under which diamonds are formed below the earth’s mantle. There are two methods which are used to make such diamonds: 1. High Pressure, High Temperature (HPHT) Method 2. Chemical Vapour Deposition (CVD) Method Both of these methods make use of a diamond seed, which is a thin slice or a wafer of a real diamond.High Pressure, High Temperature (HPHT) The HPHT method is the original method for the formation of lab-grown diamonds. This was the method by which lab grown diamonds were originally discovered. The HPHT method requires the replication of the same conditions that form diamonds underground. While the diamonds formed using HPHT method were very small in the beginning to be used as gems, these diamonds were, instead, used for industrial purposes. It was only in the 1950s that HPHT was further developed to manufacture gem-quality diamonds. One key advantage of the HPHT method is that it can be used to enhance the colour of diamonds in order to make them colourless, pink, green, blue or yellow. In the HPHT method, a diamond seed is placed inside a metal cube containing pure carbon, the element which diamonds are made of. This metal cube is exposed to immense levels of heat (1300°C-1600°C) and pressure (5-6 GPa). This pressure and heat are generated with the help of electric pulses. At this point, the carbon around the seed melts and forms a diamond around the seed. The metal cube is cooled, and a diamond is obtained. Similarly, by exposing to large amounts of heat and pressure, the colour of diamond can be changed. The colour of a diamond comes from the different elements trapped in the structure of a diamond. For example, the presence of boron gives the diamond its blue colour, and the presence of nitrogen is the source of the yellow colour. The HPHT method, by simulating the conditions of heat and pressure, provide a setting for such elements present in the diamond to relax and display their natural colour. Cross-shaped fluorescence pattern is a diagnostic feature of HPHT diamonds.
Chemical Vapour Deposition (CVD) The CVD method is the more recent method among the two. Developed in the 1980’s, this method was made to imitate the formation of diamonds in interstellar gas clouds rather than underground. The diamond seed is placed inside a vacuum chamber, into which gas containing carbon is pumped. The chamber is heated to temperatures of 700°C to 1300°C. At these temperatures, gas turns to plasma, in turn releasing carbon pieces which layer over the seed to eventually form diamonds. The eventual size of the diamonds depends on the time allotted for growth. The CVD process produces Type IIA diamonds, which are extremely rare for naturally occurring diamonds. These diamonds are the most chemically pure diamonds and lack boron and nitrogen impurities, unlike HPHT diamonds which are exposed to nitrogen. The common traits of a CVD diamond include brown under tones, spotty inclusions and internal graining. Where such undesirable traits exist, the diamond will usually undergo a post-growth HPHT treatment. However, removing these flaws with post-growth treatment can make the diamond then appear milky and hazy. Comparison The manufacturers of lab-grown diamonds are often faced with the dilemma of choosing one of the two methods for the production of diamonds. In India, the CVD method enjoys a higher popularity, one of the reasons being that lab-grown diamonds made using the CVD method fall under the purview of the ‘Make in India’ campaign. CVD method is considered as an economical alternative to the HPHT counterpart due to the low operational cost, cheaper and smaller machines, lower energy consumption and lesser duration for production. CVD method is also less laborious, and hence, overall considered budget-friendly. But it is important to note, that lab-grown diamonds made from either of the methods, cost significantly lesser than mined diamonds
Diamonds made from both methods have inclusions. CVD diamond have dark pinpoint inclusions, whereas HPHT diamonds could develop metallic flux inclusions. In terms of patterns, HPHT diamonds can show graining patterns based on their growth structure, unlike CVD made ones. CVD diamonds can instead display banded strain patterns. Both diamonds have a trait of fluorescence, which differ lab-grown diamonds from the natural ones under inspection. HPHT diamonds tend to have a little higher fluorescence than CVD. HPHT diamonds also tend to exhibit magnetic response, but this alone cannot be a sufficient separating factor between both. HPHT diamonds may possess a bluish tint as a result of the presence of boron in the manufactured diamond. CVD diamonds, on the other hand, can have a brownish undertone. CVD diamonds are fastgrowing diamonds, and hence, are more prone to impurities, causing the need for post-growth HPHT treatment. HPHT method diamonds are usually of a higher quality, and the HPHT treatment can be used to achieve clarity and colour in diamonds. Most experts agree HPHT diamonds are of a higher quality in comparison to CVD diamonds. CVD diamonds are more economical than HPHT diamonds. Market Study The global market for lab-grown diamonds was valued at ₹1.86 lakh crore in 2021, and is projected to reach ₹4.63 lakh crore by 2031, following a growth trajectory of 9.8% Compounded Annual Growth Rate (CAGR). Out of this, the Indian Market accounts for ₹2.2 thousand crore (as of 2022) and carries a CAGR of 14.8%. The Market for lab-grown diamonds in India can be studied under 3 different segments: 1. Diamonds Landscape (Demand Overview) 2. Supply Side Diamonds Landscape for India Diamonds on the whole, have an existing market of ₹7.91 lakh crore as of 2021 and grow at a CAGR of 4.4% to reach ₹11.65 lakh crore in 2031. At present, the largest share out of this is taken up by the US followed by China and India. The popularity for diamonds stems out of its status as the most valuable ornament. They are predominantly purchased for weddings & other occasions, and for industrial purposes as a cutting and polishing tool. Besides the jewellery industry, lab-grown diamonds are used in computer chips, satellites, 5G networks as they can be used in extreme environments due to their potential to operate at higher speeds while using less power than silicon-based chips. LGD has vast application in field of defence, optics, jewellery, thermal & medical industry. India ranks at 3rd but is anticipated to be the fastest growing diamond market in the running decade. India provides a unique case wherein, the market not only accounts for the diamonds purchased for consumption, but also rough diamonds purchased for further manufacturing: cutting and polishing. India’s market size was ₹1.56 lakh crore in 2021, for both natural and lab-grown diamonds and carries a CAGR of 3.4%. As per industry estimates, India’s share in global trade of diamonds in the financial year 2021-22 was 25.8% However, India has to depend on other countries for the supply of critical machinery components and ‘seeds’ — which are the raw material for producing synthetic diamonds. Trends New-Age Customers: Breeding amongst the next generation of Indians, are the tendencies of materialism and consumerism. The Private Final Consumption Expenditure (PFCE) as a share of GDP in India was at 61.6% in the 3rd Quarter of FY23, and the Marginal Propensity to Consume (MPC) was at 0.54. These numbers are almost at par with highly capitalist and consumer-oriented countries like the USA, and even exceeding by large amounts in MPC (USA stands at 68.6% and 0.35 respectively). India ranks among the hardest working nations globally, putting forth a 50-hour workweek. What all this means for India is that the ethos of a glamorous life and dreams in technicolour are evidently gaining widespread prominence. In addition, the per capita income has almost doubled from ₹86,647 to ₹1,72,000 in the span of the past 8 years. The figure that captures the attention is: 56% of diamond purchase in the country is contributed by those from the age group of 18-35 years. Urbanisation, growing economy, increasing income and expenditure levels all contribute to the consumerism, a launchpad for diamond as well as luxury items’ sales. Sustainability Conscious Demand: Customers in India are increasingly growing aware of the socioeconomic and environmental impact companies have. Around 60% of Indians in urban areas say that they would be willing to pay a premium up to 15%-20% for sustainable products. 93% of Indians are preferring natural diamond sourced ethically. Many market leaders are deliberately adopting ecofriendly cutting and polishing procedures. Moreover, companies are always on the lookout for providing an additional degree of customer satisfaction, and achieving sustainability, i.e., carbon neutrality and fair ESG practices, seems to be the way ahead in the coming decade, and a necessity further on. Increased Price Sensitivity: Since the COVID-19 pandemic, the prices for diamonds have been declining. Round diamonds saw price declines of 5-6% for sizes 0.18-0.22 carats and 4.5- 5.5% for sizes 0.23-0.29 carats. Fancy cuts, on the other hand, saw price increases of 1.5- 5.5% for sizes 0.50-0.69 carats and 12.5% for sizes 1.00-1.24 carats. While the desire to possess luxury items has seen a rise in India. The demand has fallen due to inability of the 0 2 4 6 8 10 12 14 2021 2022 2023 2024 2025 2026 2027 2028 2029 20302031Years Predicted Market Size for Diamonds over the Years Global Market for Diamonds Global Market for Lab-Grown Diamonds Indian Market for Diamonds Upraise Finserv Private Limited www.upraiseindia.com Complied By Manit Malani, B.A. Hons. (Eco), SRCC, DelhiIntern at Upraise Finserv Private Limitedpublic to buy such goods. Moreover, there is a certain ‘Engagement Gap’ that is evident since the pandemic, wherein the number of couples getting engaged have been on a decline. Fancy cuts have seen a price increase resultant of the increase in demand for these diamonds. Fancy cuts are generally cheaper than round diamonds, and hence, more and more people are opting for them as a substitute.