JB Insights
LGD prices tumble; “green, sustainability” hype is fading out
New 18K Lightweight Designer Brand Launches in Trivandrum, Blending Style, Comfort, and Ethical Luxury
The man-made diamond boom is over, and prices for ultra-trendy lab-grown diamonds are set to tumble this year, industry veterans say. Paul Zimnisky, a leading diamond analyst, foresees jewellers scaling back their business in lab-grown diamonds while ramping up their focus on natural diamonds over the next year. In fact, most jewellers aren’t even bothering to stock lab-grown diamonds in inventory, and are only purchasing them on consignment, he told Business Insider.
Some of the shine behind lab-grown gems has diminished, largely because they’re so widely available. Lab-grown stones now make up around 20% of the total diamond market, Zimnisky estimates, up from nearly zero percent in 2015.
It’s the exact opposite of what jewellers have seen since 2018, when the hype around lab-grown diamonds took off. “Some of the fad is starting to fade a bit,” Zimnisky said. Retailers now “aggressively” push lab-grown stones. “I think it’s become a lot more mainstream.”
Lab-grown diamond prices, already a fraction of natural diamonds, could see an additional 80% decline, according to industry expert Cormac Kinney, CEO of Diamond Standard. Since their mainstream introduction in 2018, the price gap between lab-grown and natural diamonds has expanded, with some lab-grown diamonds now priced at just 10% of their natural counterparts. Kinney believes there is still significant room for prices to drop, anticipating a further 50% to 80% reduction.
“Fashion jewellery is always a very small fraction of real jewellery. Only real is rare.” He added: “Jewellers will tell me that a growing number of couples are coming in one to three years after buying an engagement ring and replacing it with a natural diamond.”
The hype about LGDs being “green and sustainable” seems to be dying out. Pandora’s CEO Alexander Lacik says consumers don’t buy LGDs because they’re “sustainable”. They buy them because they’re cheap.
Alexander Lacik told Fortune magazine: “When we talk about product choice, there are only two things that actually drive behaviour,” he said. Price and design. “ESG (environmental, social, and corporate governance) is a nice feature and for the people that are interested, we have a good story to tell, but it’s not the driver of the business.”
Gen Zs and millennials may claim they’re driven by environmental concerns, said Lacik, but at the end of the day they want the biggest stone they can get for their budget.
LGDs are mostly produced in factories by machines that require constant power. While there is a substantial range of outcomes depending on where the factory is located, the notion that lab-grown diamonds are “more environmentally friendly” is debatable.
By Invitation
Secured Gold Loans vs. Collateral Free Credit: Which One Truly Offers Peace of Mind?
By Priyank Kothari, Director of Arvog
Life throws curveballs. Whether it’s a medical emergency, a sudden travel plan, or a business cash crunch. when you need money fast, choosing the right kind of loan matters. Should you take a personal loan without any collateral, or borrow money against the gold sitting idle at home?
More people in India are leaning toward gold loans and not without good reason.
What’s the Real Difference?
- Gold Loans (Secured): You give your gold to the lender jewellery, coins, or bars and they lend you a portion of its value, usually 60–75%. Once you repay, your gold comes back to you, just as it was.
- Collateral Free Loans: These don’t need any security, but lenders will look closely at your credit score, income, and repayment history. If you miss payments, it can hurt your credit profile, and collection calls can be stressful.
Why Gold Loans Are Catching On
Let’s look at what the numbers say:
- From Rs1.16 lakh crore to Rs2.51 lakh crore in just one year gold loans grew 115% between May 2024 and May 2025.
- Disbursements jumped by 124% year over year.
- Industry experts predict the gold loan market could touch Rs.15 lakh crore by FY27, with NBFCs driving a big chunk of that growth.
Clearly, this isn’t just a trend it’s becoming a go to financial choice.
What Makes Gold Loans So Attractive?
1. Lower Interest Rates
Since your gold backs the loan, lenders take on less risk. That usually means lower interest rates than a collateral free loan.
2. Quick and Easy Process
Need cash fast? Gold loans are often processed within a few hours with minimal paperwork.
3. Credit Score Not a Dealbreaker
Even if your credit history isn’t perfect, your gold can still help you get the funds you need.
4. Your Gold Is Safe
It’s assessed in your presence, securely packed, stored in top tier vaults, and often insured arguably safer than keeping it at home.
What About Collateral Free Credit?
Personal loans without collateral do offer quick access, but they come with a few caveats:
- Higher interest rates make them costlier over time.
- You need a strong credit profile and steady income to get a good deal.
- A few missed payments can hurt your credit score and stay on your record for years.
- High interest + long tenures = a debt trap if you’re not careful.
So, Which One Gives You Real Peace of Mind?
If you own gold and need money in a hurry, gold loans give you four big wins. lower interest, fast disbursal, less paperwork, and the comfort of knowing your credit score isn’t standing in your way.
In uncertain times, gold loans offer something rare a way to raise money quickly, without losing control or peace of mind.
Jb Exclusive: Digital View
Secured Gold Loans vs. Collateral Free Credit: Which One Truly Offers Peace of Mind?
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