Lab Grown Diamonds to follow rapid US growth

Thursday 12th December 2019The saying goes, “Pioneers end with arrows in the back and settlers make money”. Michael Hill International (MHI) have been criticized for…
Posted in Diamonds, News

Thursday 12th December 2019

The saying goes, “Pioneers end with arrows in the back and settlers make money”. Michael Hill International (MHI) have been criticized for their advertising of Laboratory-grown diamonds (LGD), but as an Industry magazine we feel a duty to give a voice to both sides of the story for the industry. Showcase started the ball rolling with the introduction of ALTR Created Diamonds into store. ALTR CEO Amish Shah said he has removed many arrows from his back. While some may criticize the move, MHI should be applauded by the trade for opening the doors wider by accepting that LGD has a place in the industry and in their stores. With the confusion in the industry round synthetic or created or Laboratory-grown diamonds there is no wonder retailers are also confused when promoting LGD to the consumer.
 
Our December magazine provides updates on CIBJO’s plans to create a Laboratory-grown Diamonds Committee to manage rapid changes they see in the industry. In only a matter of weeks, however, I have been inundated with fresh developments in the LGD segment, that point to rapid growth in the sector. From news of changes to tariff regulations for lab-grown diamonds, to Goldmark’s launch of lab-grown diamonds last week and Michael Hill’s announcement that their Lab-grown diamonds trial is set to expand further in the next six months. The industry has picked up pace to prepare for a steep growth curve, that has been seen in the US over recent years.
 
An interview this month with the CEO of ALTR Created Diamonds, on Fox News in the US, referred to Lab-Created Diamonds as a US$150m industry in 2016  but estimated that in 2020 it will be a USD $1 billion industry.


For industry observers, the magnitude of this change was foreseeable. ‘Near term and high potential impact’ was how Bain & Co. categorised three interconnected trends affecting the Diamond Industry in their 2018 report – digital technologies, developments in Laboratory-grown diamonds; and generational shifts in consumer preferences. Their report predicted an annual growth rate in the sector of 15% – 20%.
 
Last month Grand View Research Inc released figures showing that while the Global Diamond Market as a whole is expected to grow at a rate of 3 per cent (CAGR) to reach well over USD 120 billion by 2030; LGD will grow at more than triple that rate, at 10% CAGR and are expected to account for USD 15 billion by 2035.
 
In January of this year, Stockhead.com quoted independent diamond analyst Paul Zimnisky, “I see the Laboratory-grown diamond jewellery market growing from $US2 billion today to $US15 billion by 2035, with market share encroaching more on the fashion jewellery market than the fine jewellery market”.


Others have been more bullish, LGD start-up, Diamond Foundry’s Martin Roscheisen was quoted in December 2018, as saying the industry could eclipse mined diamonds by 2030, citing a doubling of the company’s production and sales every quarter.


‘Innovate or perish’ is a well-worn refrain in most industries that have already felt the pain of digital disruption – in the traditionally slow moving jewellery industry however, a tidal wave of change looms high. Industry disruption was listed as the eighth biggest risk facing the Mining and Metals industry in a 2019-2020 report on the topic by EY. For mining and metals industry stalwarts, the advice has been clear: “We are now in an era of constant disruption, and it is coming from unexpected places. Instead of seeing it as a threat, you should see it as a great opportunity to innovate, evolve and thrive,” Paul Mitchell -EY Global Mining and Metals Advisory Leader.
 
At the opposite end of the spectrum, one major Australian retailer who is innovating in this space is Michael Hill, they have already expanded their initial trial of LGD’s from 11 stores to 23 stores across three countries plus its online channel in recent months and plan further expansion across its markets in the next six months. Let’s also reflect on what MHI does for the industry with their marketing strategy. All the advertising MHI do to promote their brand and products, stimulates and excites the consumer toward a jewellery purchase which we all benefit from.
 
According to Michael Hill, CEO, Daniel Bracken who is a little over a year into the job, the trial is the first of its kind for a major retailer in Australia and makes the business an industry disrupter.
 
He cites two key triggers for rapid growth in the Laboratory-grown diamond segment: The launch of DeBeers’ Laboratory-Grown Lightbox Jewellery and the planned unveiling in 2020 of DeBeers’ USD $94m manufacturing facility in Oregon – which will produce 500,000 polished carats per annum or $200m worth of sales.
 
Of the US, he says “It’s a much more mature market there and some retailers are saying that Laboratory-grown diamonds make up 20 percent of their bridal solitaire business”.


Responding to accusations that Michael Hill had not been fully compliant in its language describing Laboratory-grown diamonds across its marketing materials, the CEO said:
 
“Michael Hill has always sought to be transparent to the market and to show customers very clearly the process by which Laboratory-grown diamonds are made. As our first venture into market with Laboratory-grown diamonds we have taken a test and learn approach as we continually refine our response.
 
Mr Bracken also says the controversy is not surprising, citing the US experience as having ‘a handful of detractors’, before the industry understood and adopted the conventions for marketing Laboratory-grown diamonds.
 
“This is a game changer for the industry over time, our role is to help educate consumers along the way.”
 
Whilst many have speculated about the continued movement of DeBeers in the industry to both secure its mined diamond business and invest heavily in the LGD space. Others such as Diamond Foundry Chief Executive Martin Roscheisen, claimed that DeBeers have ‘primarily legitimised the man-made category’.
 
Legitimacy is at the heart of the controversy surrounding Laboratory-grown diamonds and it’s one that is in decline as consumer perceptions evolve and LGD gain popularity due to high affordability and low cost.


A survey by market research company MVI, showed that the attractiveness of a LGD for an engagement purchase had risen from 55 per cent in 2016 to almost 70 per cent in 2018.


While calling out manufacturing capacity limits, and other constraints such as access to technology, and funding; Bain & Company, Partner – Olya Linde also suggests the industry can have it both ways with the accessibility of Laboratory-grown diamonds for a wider consumer market, they could increase demands for diamonds in general.

Further reading:
Outpacing supply: Lab grown diamonds have taken off faster than anyone anticipated

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    How Long Do Drug Metabolites Stay In Your Hair?
    The bad news is that drug metabolites stay in your hair for the length of time that the hair is on your head.
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    A hair follicle drug test is the same as any other drug test in regards to you just going along and submitting a sample.
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    Methods That Won’t Beat A Hair Strand Test
    These are the methods that are often talked about, but that definitely will not remove drug toxins from within the hair shaft:
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    There are two main methods for passing hair drug test that has a track record of passing. One is called the Macujo method, and the other is the Jerry G method. Although they have similarities, the Jerry G method is more invasive.
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    Macujo Method: Full Seven Day Course Instructions
    You should do the Macujo method once per day for seven days, so a total of seven times running through this set of instructions I’m now going to give you.
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    2. Before you start, you need to remove any toxin contamination. That means stopping taking drugs. It also means washing your clothes, washing your hair, and completing the Macujo method in a room where there won’t be any drug contamination. Also, keep away from cannabis smoke, and other situations where stray drug toxins could get attached to your clothes or body.
    3. The first step of each run-through of the Macujo method is to get yourself in front of a large sink or bath with plenty of hot water. Put on the rubber gloves
    4. Wet your hair thoroughly, then massage a good palm full of vinegar into your hair and scalp. Really work it in. It may start to sting after a few minutes.
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    10. This is the step that will definitely need the goggles, as you don’t want to get detergent into your eyes. You are going to apply a small palm-sized amount of liquid detergent to the hair and work it in thoroughly. You will keep doing this until your hair is really squeaky when you rub your fingers through it. Then, wash it out completely with lots of water.
    11. This is the last step, which you only do once after the last time you run through the Macujo method. This will obviously be the time just before your drug test. If you do the last Macujo method run through the night before your test, do this step about one hour before you leave on the day of your test.
    You’re going to use ZyHeading 2dot Ultra clean to clean your hair thoroughly. Wash out plenty of warm water. Then, to avoid contaminants, make sure you use a fresh comb or brush, put on clean clothes, and leave to do your drug test immediately to really minimize the risk of stray toxins attaching to the hair.
    Success Stories Of Passing Hair Follicle Drug Tests
    If you do it right, you can have success with this method, and any full Macujo Method review should tell you about successes and failures.
    Failure will come if you don’t run it through enough times before your test. If you only have three days before your test, do it twice per day. That’s six times, and pretty close to 7.
    I wouldn’t advise you do this more than twice per day, because it could start to cause damage. Just focus on trying to get the time to run through it seven times in advance.
    You’ll find plenty of success stories online, but in terms of success stories for passing a hair follicle drug test, I can assure you of my own.
    It was two years ago, and it was for an internal promotion to management. Excuse the pun, but they wanted to weed out drug problems, so we knew in advance that applicants would be hair-drug tested.
    I ran through the Macujo method seven times, once per day in the lead up my drug test. I also stopped smoking weed, cleaned my place up, washed all my clothes, bought a new hairbrush, and kept away from my friends during that time as well to avoid contamination.
    It worked like a charm, and I passed my drug test with ease. It’s definitely the best way to remove metabolites from hair.
    Where To Buy Aloe Toxin Rid & Zydot Ultra Klean
    Old-style Aloe Toxin Rid has discontinued years ago. It’s made by Testclear, a highly reputable drug test avoidance product company, who recreated the original formula though. Because it’s a specialist, it’s not cheap. A single bottle will cost you $235 . But, it’s the only way to pass a hair follicle drug test.
    You can also get Zydot Ultra clean from them as well. That costs just $35. So it is quite a large financial outlay, but you really do have no other choice if you want to pass a hair drug test.
    Hair Follicle Drug Test FAQ
    How is a hair follicle drug test performed?
    The person conducting the test will take around 100 strands of hair from your head. These samples will be taken from different areas of the head. This is both to ensure you don’t get a bald patch, and you get an even overall sample taken. Then, the sample is sealed to avoid contamination, and is sent for testing.
    It will then undergo an ELISA analysis. If any issues are highlighted, or drug metabolite signals are found, then it will go for a full gas chromatography – mass spectrometry analysis to rule out any problems with false positives, and give a full and detailed breakdown of the sample.
    Can you clean your hair for follicle test?
    It is perfectly possible to clean your hair to pass a hair follicle test. It’s called the Macujo method, and it involves several steps to open up the hard cuticle layer on the top of each hair shaft, flush out drug toxins and then close them up again.
    How accurate is a hair follicle drug test?
    Hair follicle drug tests are highly accurate. If you have taken any substance in the past 90 days, it will 100% be picked up by a hair follicle drug test. There is absolutely no way to avoid getting caught unless you follow the Macujo method to flush out the drug toxins before the test.
    What shows up in a hair follicle drug test?
    The substances detected will vary slightly depending on the provider. LabCorp standard drug testing looks for amphetamines/methamphetamines, marijuana, cocaine, opiates, PCP. Therefore, it is basically the same as a standard urine five panel drug test. But it’s important to note that additional panels can be added, in the same way as they can for urine testing, all the way up to the usual 12 panels/substances (although the maximum is usually 14 panels and alcohol detection).
    How far back does a hair follicle drug test check?
    A sample of around 100 strands of hair will be collected from your head. If they can’t collect a sample from your head, they will collect a sample of body hair, which grows slower and records the same history. Your drug taking history will be trapped in the entirety of the hair. But legally only the most recent 90 days of hair growth can be checked. For the hair on the head, this equates to about 1.5 inches. So it doesn’t matter how long the sample is, or how many drugs you have taken more than 90 days ago, it’s the last 90 days which matter.
    How much does a hair follicle drug test cost?
    In the USA, the basic five panel hair drug test costs around $125. The price then goes up proportionately with panels added, with the 12 panel test currently costing around $375. There is a 14 panel test which is rarely used, and that can cost as much as $450, especially if alcohol testing is also included.
    Where to buy an at home hair follicle drug test?
    You need to buy a hair drug test that has a good level of cut-off, meaning a sensitive test that will detect at similar levels to professional drug testing. A hair test has to be sent off to be analyzed, so the price is higher than a urine test which can be conducted by you. From Test Clear, a reputable drug test avoidance product company, the basic hair follicle postal test costs $60.

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