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LVMH Makes It Official: Lab-Grown Diamonds Are Luxury


In 2018, the FTC permitted “a mineral consisting essentially of pure carbon crystallized in the isometric system” to be described as a “diamond,” whether naturally occurring or man-made. Ever since then, the jewelry establishment has been erecting barriers of entry for lab-grown diamonds into their lucrative $84 billion global market.


The Natural Diamond Council established the official party line, declaring “Crafted by nature over millions of years, natural diamonds are inherently valuable, rare and precious.” Lab-grown diamonds, by contrast, are cheap manufactured substitutes whose value is “tied strictly to the cost of production” and therefore have no lasting value.


With the most to lose, luxury brands, including Bulgari, Cartier and Tiffany (now an LVMH brand), stood firmly behind that barrier and held only natural diamonds were luxury.


But now the walls have been breached with LVMH Luxury Ventures, along with other investors, having completed a $90 million investment round in Israel-based Lusix, a pioneer in the lab-grown diamond (LGD) industry...


“LVMH’s investment in the lab space is a statement that lab-growns are going into luxury in a big way,” shared Marty Hurwitz, founder of The MVEye, a research firm specializing in the jewelry market.


“Right now demand for lab-grown diamonds is through the roof and the only thing holding it back is supply. LVMH investment in Lusix will give them secure access to premium-quality supply,” he continued...


Without a doubt, this is exciting news for the entire lab-grown diamond industry which today is estimated to total just under $6 billion and before this announcement was predicted to double in size by 2025.


With LVMH now giving its official luxury imprimatur to lab-grown diamonds, it is safe to bet it will grow even faster than that.


“Lusix is going to double its production by 2023 which will accelerate the market even faster,” Hurwitz shared..."


ORIGINALLY PUBLISHED BY Forbes