Why Ada's Diamonds are Less Expensive than Comparable Mined Diamonds
Are lab diamonds less expensive than 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 an EBITDA (profit) of $1.25 billion and ALROSA, a Russian mining company, reported $2.48 billion profit on $4.75 billion of revenue in 2018.
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, lab 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. Thus there are fewer middlemen marking up lab diamonds.