BIG is Back, Baby!

Big is back, and I am here for it! I feel like this is due to the huge demand for lab diamonds. Nobody wants a one-carat lab diamond and especially anything smaller. The hottest selling size lab diamond for rings is the two-carat and three-carat. For earrings, the four-carat total weight is the most in demand. The popularity of labs has suppressed the demand for smaller carat natural diamonds. Now is the time to pick up a well-priced natural diamond at 1-1.5 carats. Only problem is nobody wants them! The trend of the moment is big! 

What I find interesting is the changing tide of the lab diamond vs. natural debate. My customers are much more informed about what a lab diamond is. They appreciate the beauty and when faced with the price of a natural diamond vs. a lab diamond the choice is obvious. In the months of December and January our lab diamond jewelryoutsold the natural diamond pieces!

For my soon-to-be-wed couples facing down the significant cost of the wedding, honeymoon, and down payment on a house, of course the ring budget takes the hit. In this uncertain economy, it just makes sense. This is what I love about labs. The grand look is within reach for the average person. The fact of the matter is a large-carat size natural diamond is a significant purchase. When women are faced with the choice between a smaller, lower color and clarity natural diamond or the diamond of their dreams in lab they tend to choose lab. In my experience, most women want the bigger stone. There will always be the consumer that prefers natural but for the most part, labs are having their moment. They have come down in price significantly lately. Every time my suppliers lower their price for labs, I lower my price. I do a lot of online research of my competitors and I have not seen them lower their prices in response to the decrease in cost. I can easily beat the big names online and the local chains. 

Our Valentine’s Day special of $999 for two-carat total weight lab diamond stud earrings proved quite popular, and a couple of pairs are still available. Compared to a hefty price tag of $10,000 or more for natural diamonds, this is a bargain! I always spend a little extra time explaining the cost and value of lab diamonds to my customers. The bottom line is what we are paying for when we buy a lab diamond is the cost of manufacturing and cutting. The diamond itself has no intrinsic value and has little to no resale value. As manufacturers improve the technology and flood the market, the costs will continue to fall. Nobody knows when we will hit the bottom. Some people inquire about waiting for prices to come down; it’s not a bad idea. Most of the time, people don’t want to wait. The women in general I have been dealing with are not wasting time thinking about it. They want a fabulous big look and they want it now! In fact, they often wear them out of the shop - no box necessary - always with a big smile on their face! In all honesty, they are a blast to sell and design with. The possibilities are endless now that I have an affordable material to work with. 

You know what hasn’t come down in price? Gold! Gold is hovering at $2,900-$2,950 an ounce and we are wringing our hands and wiping the sweat off our brow at this point. Customers who haven’t priced out gold jewelry or repairs such as sizing in many years are suffering from sticker shock to the point where we should have oxygen and smelling salts behind the counter. Every day I have the same conversation about the rising price of gold and how we should have bought gold bricks in the 90’s. I returned to the store five years ago and gold was a reasonable $1,474 per ounce. Yes, in the last five years alone gold has doubled. If that trend continues, my dad and I may resort to selling hot dogs. It’s a real problem for us on a daily basis. Items we stock regularly are going up hundreds, even thousands of dollars seemingly overnight. We are constantly seeking out new sources for better pricing, but gold costs what it costs. We have no control over the market. On the other hand, now is the time to trade in that old gold you have hanging around for a new pair of lab diamond earrings or something new to wear. 

As always, thank you to our loyal patrons. We always appreciate your kind words about the articles we write. It seems as though my dad’s sassy stories generate the most laughs, but the people really seem to enjoy my take on things, too. So many wonderful things happen on a daily basis in our little modest shop, and I love sharing the good stuff.