Some retailers are spreading false information about the value of lab-grown diamonds, said Olivia Landau, CEO of The Clear Cut, on the latest Rapaport Diamond Podcast.
“I don’t think consumers understand how inexpensive lab-grown diamonds are,” said Landau on episode number 101. “Precisely at the retail level, jewelers are marking them up so significantly, putting them side by side with the natural and saying, ‘Hey, they’re the exact same thing, this is just 50% or 70% cheaper,’ even though they’re making over 300% margin.”
Landau, a fourth-generation jeweler and former Tiffany & Co. salesperson, cofounded The Clear Cut as a side hustle that turned into a full-time business helping consumers find custom-made natural-diamond engagement rings.
The Clear Cut does not sell synthetics but gives away a free lab-grown diamond as a travel ring for customers buying a natural-diamond engagement ring. The company purchases lab-grown stones for under $100 per carat, Landau says, noting that its vendor also makes a margin.
In conversation with Rapaport’s Joshua Freedman, Landau also talks about the state of US consumer demand ahead of the holidays, the role of social media, and how the company uses non-fungible tokens (NFTs).
Listen to the episode here: