The COVID19 global pandemic that began in the early months of 2020 instilled a lot of fear among people. For safety sake and to avoid the spread of the virus, most countries announced a lockdown. We’re a year and a half ahead of it and the situation still is pretty much the same. The lockdown, essentially meant shutdown of business caused a collapse in the world economy. The global market was seen crashing and one of the things to be affected by that was the jewellery market as well.
The diamond market also felt the ripples of the collapse but not a lot. Because people are still getting married and engaged despite the lockdown and do diamonds were still being bought. So does that mean that the demand for diamonds, and especially lab grown ones increased in the lockdown? Or not? Let’s find out.
It could increase
- The price
Lab grown diamonds are significantly cheaper than organic diamonds. They are prices for Lab grown diamond rings are almost 30% lesser. Since everyone is on a saving spree during the lockdown due to loss of jobs, savings being spent and medical facilities costing a bomb, people prefer cutting down on extra expenses. So buying a lab grown diamond will definitely make more sense. After all, you get a real diamond for half the price. So that could be one reason why lab grown diamonds could be well in demand even in the lockdown.
The pandemic taught people a lot about what’s important, what should be prioritised, etc. But the most important thing it taught people is the uncertainty of life. Many people are choosing to get married in a hurry thinking they should live in the moment. Instead of grand functions, people are uniting with one another in the presence of only their immediate families. With so many weddings and engagements happening around, a good amount of rings are being purchased as well. So that also might mean the demand for lab grown diamonds could increase.
It could not as well
On the other hand, with the industries shut, the production of the diamonds must have stopped as well. Unlike organic diamonds, lab grown ones are made in a period of 1 to 2 months. So batches are made frequently and then polished, fit into jewellery such as Lab grown engagement rings and then sold in the market. With the industries and factories that produce these diamonds being shut, there would be lesser stock of them in the market and so the demand will eventually go down as well, when people realise that they are not available for sale. But then again, that’s just the supply; the demand could still be high despite the supply being low.
Well, it seems like the demand is more likely to increase. The reasons supporting that hold more weight and with the lockdowns being relaxed and the pandemic situation improving in some countries, there may be a hope of the jewellery market getting back to normal as well. Also, to put it a little symbolically, diamonds are meant to be forever, and everyone wants to be hopeful of forever in these tough times.