Over the past decades, jewelry with even a small diamond was considered a real treasure, and its price corresponded to the premium status of the gem. However, the jewelry industry also has complaints about precious stones: the inability to customize the size, shape and other characteristics of a stone, its high price and often unethical mining methods. Companies solving these issues can dictate the conditions for the entire market, which is why investors are focusing on lab-grown diamond stocks. The gems created in a controlled environment shine no less brightly and can bankrupt classic mining companies due to a significant increase in supply.

Methods of synthesizing diamonds have existed since the middle of the last century, but traders avoided the products because such sales could destroy the fragile order of the diamond business. However, this cannot be ignored forever. The lab-grown diamond market has grown in the last decade. Forecasts point to a $59.2 billion capitalization by 2032, which could trigger the opposite process — the closure of most diamond mining companies.

Adamas One (JEWL)

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Six years of operation is a relatively short period compared to companies with a production history of several centuries. Nevertheless, Adamas One (NASDAQ:JEWL) is an industry pioneer and the first lab-grown diamond company.  The “Best Lab-Grown Diamond Manufacturer for 2023” has managed to unlock the potential of gemstones in terms of jewelry and technology. From creating a diamond seed to forming a monocrystal, the production process is controlled and scalable. This positively distinguishes Adamas One from classic mining methods. The company’s 36 patents guarantee optically, chemically and physically indistinguishable products from those mined in India, South Africa or anywhere else.

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The first six months after the IPO in 2022 were a difficult test of strength but did not stop JEWL from taking the top position among lab-grown diamond stocks. The market capitalization of $17.4 million could become a launching platform for take-off. The industry’s planned CAGR of almost 9% for 2023-2028 prepares investors’ pockets for profits. In Q1 2024, Adamas One’s gross margin was 81.4% and could exceed 70% after the production expansion is completed.

Brilliant Earth (BRLT)

Brilliant Earth Group (NASDAQ:BRLT) sees the shift from old ways of mining diamonds as a step towards ethicality. Since 2005, the world leader in the supply of artificially grown diamonds has been setting the trend for transparency and sustainability in the jewelry industry. To popularize the brand, the company uses both an e-commerce platform and a network of showrooms, as a significant part of customers still prefer to see the product offline.