Diamonds Collapsed After Gold Surged: Chinese Man-Made Diamonds Hit the World and Can Even Be Given Away for Free
In a surprising turn of events, the diamond market is now seeing a decline in popularity as gold prices continue to soar. Chinese man-made diamonds have emerged as a formidable competitor, with some even being given away for free.
The price of gold, which reached a record high at the end of April, has caused a shift in consumer preferences. Mainstream gold brands like Chow Tai Fook saw prices skyrocket to 718 yuan/gram, leading many to reconsider their investment choices.
On the other hand, the diamond market in China has been experiencing a steady decline, with a decrease of approximately 27% in market size compared to the previous year. This decline can be attributed to the rise of artificially grown diamonds, which offer a more affordable alternative to natural diamonds.
Artificially grown diamonds are produced using advanced technology, with Zhecheng County in Henan province leading the way in production. The county has become known as the “capital of man-made diamonds,” with an annual production of 6 million carats. Globally, the production of lab-grown diamonds is expected to reach 9 million carats in 2021.
As a result of this shift in the market, some tourists have reported receiving diamonds as gifts while visiting Luoyang. The rise of man-made diamonds has certainly changed the landscape of the jewelry industry, offering consumers a more accessible and affordable option compared to traditional diamonds.