Why Ada's Diamonds are Less Expensive than Comparable Mined Diamonds
Given that it is more expensive to grow a diamond than it is to dig one out of the Earth, how is Ada Diamonds able to offer lab grown diamonds at a discount to mined diamonds? Three reasons:
- Diamond mining is extremely profitable. De Beers reported a profit of $667 million in 2016 and ALROSA, a Russian mining company, reported $2.3 billion profit on $5.5 billion of revenue in 2016.
- Mined diamond supply chains date back to the 15th century and are quite inefficient. The journey from mine to market is quite long, with many middlemen marking up the price of the diamond along the way. On the other hand, synthetic diamond supply chains are short and efficient. Most of the diamonds that Ada sells are cut and polished in-house by the grower of the diamond and sold directly to Ada Diamonds for fabrication in fine jewelry. Thus there are no middlemen marking up lab diamonds.
- Ada's novel Diamond Concierge Process is a far more efficient sales process than the traditional luxury jeweler. Ada primarily sells online and our physical locations are only open by appointment. In addition, almost all of Ada's sales are custom made to order for the client. Thus, Ada Diamonds has significantly lower overhead, personnel, and insurance costs than the typical luxury jeweler of mined diamonds