Moissanite sales, both retail and wholesale, are being negatively impacted by the significant decrease in lab diamonds.

The "traditional" market segment has been declining for years due to direct competition from C&C and the availability of less expensive Moissanite in the marketplace. However, C&C has been unsuccessful in convincing jewelers and jewelry brands of the beauty and durability of Moissanite, as their preference for diamonds remains strong.

Over the past three years, the wholesale price of a 2ct round lab diamond has dropped from $4500 to $1200, while a 1ct diamond has gone from $1800 to $550. C&C's business model of selling high-quality but expensive Moissanites at prices just slightly lower than lab diamonds isn't sustainable, given consumers and jewelers strong preference for diamonds.