Is Moissanite Over? Understanding the Recent Charles & Colvard Bankruptcy
You may have encountered a startling claim recently: "The biggest moissanite company just went bankrupt. Is moissanite over?" The simple answer is no. However, let's dive deeper into the facts to clarify the situation.
In March 2026, Charles & Colvard, the original commercial producer of gem-quality moissanite since 1995, filed for Chapter 11 bankruptcy in the United States. This was indeed real news, bringing unfortunate job losses, and it understandably raised concerns among moissanite buyers in India, many of whom had recently made or were contemplating purchases.
Allow me to introduce myself. I'm Aaman Shah, and for over 60 years, my family has operated S.P. Jewellers in Ahmedabad. I started Myraé, focusing on moissanite because I believe it offers the best value for those looking to wear beautiful jewellery. Let's explore the details behind Charles & Colvard's bankruptcy without the smoke and mirrors.
What Led to Charles & Colvard's Bankruptcy?
To clarify, Charles & Colvard did not declare bankruptcy due to any shortcomings of moissanite as a gemstone. Instead, they struggled due to specific financial challenges within the Western market that had little to do with moissanite's inherent qualities.
Founded in 1995, Charles & Colvard thrived for nearly three decades by promoting moissanite as a cost-effective alternative to diamonds. Their marketing hinged on the idea that moissanite offered a diamond-like appearance at a fraction of the price. However, this premise crumbled when the diamond market experienced a seismic shift.
From 2021 to 2026, the price of lab-grown diamonds plummeted by 50% to 70%. This wasn't just a minor adjustment; it was a dramatic collapse. Lab-grown diamonds, made with the same properties as mined diamonds but produced in controlled environments, transitioned from luxury items to commodities in a remarkably short time. As retailers began undercutting one another, the price of a one-carat lab diamond dropped from around $4,000 in 2021 to below $1,000 by 2025.
This price drop eroded the core argument Charles & Colvard had relied on: that moissanite was an affordable substitute for diamonds. With lab-grown diamonds now approaching moissanite's price point, Charles & Colvard failed to adapt quickly enough, leading to their bankruptcy filing.
What Does This Mean for Moissanite?
Despite the bankruptcy of Charles & Colvard, nothing about moissanite as a gemstone has changed. Moissanite is composed of silicon carbide, a natural mineral first discovered in a meteor in 1893. Its intrinsic properties, such as hardness and refractive index, remain constant regardless of external market fluctuations.
Moissanite boasts a hardness of 9.25 on the Mohs scale, where diamonds rank at 10. This means nothing can scratch moissanite, ensuring its durability. Moreover, with a refractive index of 2.65, moissanite exhibits greater brilliance than diamond, making it a visually striking choice.
Additionally, moissanite is still conflict-free and lab-grown, negating concerns over ethical sourcing and supply chain issues. While Charles & Colvard held many early patents, most have since expired, allowing manufacturers globally to produce gem-grade moissanite. Therefore, this stone is far from disappearing from the market.
The bankruptcy of Charles & Colvard merely signals the end of one company's approach within a specific market.
Should Indian Moissanite Buyers be Concerned?
Absolutely not. The value proposition for moissanite in India has never hinged primarily on its comparison to diamonds. This argument has always catered to the American market. In India, jewellery has a deeper significance, often tied to culture, savings, and status. Gold signifies security, while diamonds symbolise prestige.
In our society, jewellery is not just adorned; it is often locked away in safes, seldom worn due to concerns over loss or damage. Women may hold onto exquisite pieces but worry about judgment or practicality, leaving beautiful jewellery unworn.
In this context, moissanite stands out as a practical and beautiful option, allowing individuals to enjoy the aesthetic appeal without the stress of high-value investments.
In conclusion, moissanite remains a compelling choice for Indian buyers. The excitement around this gemstone is unwavering, even in the face of market fluctuations. So rest assured, your interest in moissanite remains well-placed.