In one of the latest Rapaport podcasts, analyst Joshua Freedman interviews Randy Cole, CEO of Diamond Vault of Troy, an independent jeweler based in Troy, Michigan, offering both natural and lab‑grown diamonds. Cole examines the clientele for each segment, with findings that are sometimes surprising. Although he values the rarity and authenticity of natural stones, he acknowledges that lab‑grown diamonds have effectively saved his revenue.
Diamond Vault of Troy recorded solid growth, particularly during the holiday season. Jewelry sales increased by 3.5% year‑over‑year, with lab‑grown diamonds accounting for 70% of value and 90% of volume. These stones appeal primarily to customers under 34 and those over 60. The former prioritize purchasing a home or a vehicle, and the latter prefer not to invest in a diamond at this stage of their lives.
Some clients who were initially drawn to lab‑grown diamonds eventually return to natural stones. Among them are those who opted for large lab‑grown diamonds and later felt uncomfortable wearing jewelry that was visibly synthetic to those around them. Others, however, make the opposite journey, such as second‑marriage customers who prefer not to reinvest in an expensive natural stone. In some cases, they no longer view the natural diamond as an investment, believing its price is declining. Nevertheless, in the high‑end segment, natural diamond purchases are rising—and, notably, buyers are selecting finer stones.
Randy Cole emphasizes the profitability of a highly personalized client experience. Appointment‑only sales, private showings in a prestigious location—the former Huntington Bank vault—G‑Cal 8X certification, and thorough client “education” are among the differentiating elements he considers essential. Personalized appointments yield an exceptional conversion rate of nearly 70%, far above typical figures in the high‑end jewelry segment. His tailored approach to advising clients on engagement‑ring settings allows him to sell up to 95% of wedding bands alongside engagement rings, compared with an industry average of around 40%.
Lab‑grown diamonds represent a significant, even strategic, share of Diamond Vault of Troy’s sales, particularly for customers seeking an optimized carat‑weight‑to‑price ratio. Margins on lab‑grown diamonds are higher than on natural stones. However, their resale value is zero, and these jewels cannot be bought back or circulated on the secondary market. Cole notes that lab‑grown diamond prices have fallen by 40% over the past three years, creating a real challenge for inventory management—along with customer loyalty.
Natural diamonds remain at the heart of his philosophy. In his view, an effective storytelling strategy—highlighting programs that support local mining communities and the social, economic, and environmental benefits of the natural‑diamond industry—could help sustain demand. Conversely, campaigns that disparage lab‑grown diamonds risk confusing consumers.
The CEO of Diamond Vault of Troy stresses that today’s market requires a dual expertise: being able to sell lab‑grown diamonds with healthy margins while simultaneously conveying the heritage, narrative, and social impact associated with natural stones. Only a high‑quality, educational, and personalized approach that delivers a meaningful client experience can meet this expectation and foster long‑term loyalty.
The full podcast can be listened to HERE.