What are lab-grown diamonds and how do they compare to natural diamonds?

Lab-grown diamonds are real diamonds created in controlled laboratory environments rather than mined from the earth. They have the same physical, chemical, and optical properties as natural diamonds but typically cost 30-40% less. They're also considered more ethical and environmentally friendly since they don't require mining. The quality can be just as high as natural diamonds, and they're becoming increasingly popular with younger consumers who value sustainability and affordability.

Why is the Ekati diamond mine suspension significant for investors?

The suspension of operations at the Ekati mine signals a major shift in the diamond industry. When a large mine stops production due to "historically low diamond prices," it indicates structural problems in the natural diamond market. For investors, this creates opportunities in alternative luxury companies that may capture spending shifting away from traditional diamonds. It also highlights the growth potential for lab-grown diamond companies that can offer similar products at better prices.

What is the "alternative luxury" market?

The alternative luxury market refers to premium products and experiences that serve as substitutes for traditional high-end goods like natural diamonds. This includes lab-grown diamonds, premium watches, designer accessories, high-end home furnishings, and ethical fashion brands. These alternatives often appeal to consumers seeking luxury experiences at more accessible price points or with stronger ethical and sustainability credentials. As consumer preferences evolve, these alternative luxury products are capturing spending that might have previously gone to conventional luxury items.

How might changing consumer preferences affect luxury market investments?

Today's consumers, particularly younger generations, often prioritize experiences, sustainability, and personal values over traditional status symbols. This shift is driving growth in alternative luxury brands that offer ethical sourcing, transparency, and better value. For investors, this means traditional luxury companies may face challenges while brands that align with new consumer values could see stronger growth. Companies that successfully adapt to these changing preferences by offering accessible luxury, ethical practices, or unique experiences may outperform the broader market.

17 handpicked stocks

Shifting Sparkle: The Rise of Alternative Luxury

This carefully selected group of stocks captures the exciting shift from traditional diamonds to lab-grown alternatives and new luxury experiences. Our professional analysts have identified companies poised to benefit as consumer preferences evolve toward more accessible, ethical, and diverse luxury options.

Han Tan | Market Analyst

Updated 2 days ago | Published at जुलाई 21