Have you ever wondered about the difference between natural and laboratory-grown diamonds? Truly, the only difference between lab and diamond-grown diamonds is their chemical composition and price points. Lab-grown diamonds are a hot topic in the diamond industry right now. As the economy slowly slides into desolation, increasing numbers of people have opted for diamonds that don’t break the bank but still possess mined diamond’s signature gleam.
Diamonds symbolise love and commitment and are famously treasured for their use in engagement and wedding rings. Historically, diamonds have also been associated with wealth and high social standing, which is why you’ll often spot the rich and famous donning them at events.
Does being lab-grown affect artificial diamonds’ worth and performance? Both natural and lab-grown diamonds can be certified by reputable gemological laboratories like Gold and Diamond Traders to ensure their quality and authenticity. They’re chemically and physically identical, making them indistinguishable to the naked eye.
Read on to discover natural and lab-grown diamonds’ differences, genesis, pricing differences, and consumer trends.
Are Lab-Grown Diamonds Inferior?
Lab-grown diamonds are not inferior to their natural counterpart, just different. They have the same brilliance and sparkle. Lab-grown diamonds have almost no imperfections, or inclusions (internal flaws) since they’re grown in a controlled environment. Their primary differences are how they’re formed. Natural diamonds grow very close to the earth’s core, whereas artificial diamonds are grown in laboratories by chemists. Essentially, their only difference is their origins. They have almost identical chemical makeup, and both come with certification.
The average Joe is very unlikely to be able to tell whether a diamond is natural or lab-grown. They would need specialised lab equipment to test whether it contains nitrogen (lab-grown diamonds have no nitrogen). All diamonds have an identifying code inscribed onto their bodies by the relevant regulatory body, which tells buyers and labs whether they’re natural.
Natural diamonds are often more expensive because of their rarity, mining costs and demand. In contrast, lab-grown diamonds are more affordable because production costs are lower and supply is abundant.
Diamonds: The Earth’s Best Friend?
Recently, concerns about whether diamond mining is ethical and its practices have arisen, especially regarding how it affects our environment. Diamond mining can lead to deforestation because of the amount of land that needs to be cleared to find them, reduces soil fertility because of the amount of topsoil lost, contaminates water because of the chemicals used to find them, pollutes the air because of the gases used in the machinery, and contributes to greenhouse gas emission and energy overuse. According to a 2021 study, mining one carat of diamond can use between 96 and 150 kilowatt hours of energy, depending on the technology used.
Some companies have implemented environmentally friendly and human-safe practices to mitigate diamond mining’s negative effects, though this doesn’t solve its core problem of unfair labour practices and harming the environment– cultures deeply ingrained in the industry.
Conversely, lab-grown diamonds are ethically superior because of their significantly smaller environmental footprint and lower energy consumption. Since lab-grown diamonds are grown in laboratories, there are no concerns about child labour. Moreover, being grown in a lab means artificial diamonds don’t contribute to international conflicts, since they’re grown within their country of origin’s borders.
Are Lab-Grown Diamonds Less Valuable?
This depends on your perception of value. For centuries, mined diamonds have been associated with wealth, prestige, and eternal love, making for a deep-rooted public sentiment that mined diamonds are more valuable, even though it’s been established that they’re physically and chemically identical. They profoundly impact public image and make a statement.
Mined diamonds are always in demand and scarce, which makes them more valuable in the jewellery market. They’re rare and unique because of how close to the earth’s core they’re grown.
You can purchase a lab-grown diamond and truthfully say it’s a diamond. Scientifically, lab-grown diamonds hold the same value as natural diamonds and only differ by their nitrogen content. The public has long thought that mined diamonds possess an innate rarity and hold eternity and status in them, which puts them in such high demand.
Pricing Differences
Artificial diamonds are much cheaper than diamonds but can still command a premium price. Generally, you can expect to pay anywhere from 30 to 70% less for lab-grown diamonds.
Natural diamonds’ prices are measured in US dollars, which is why you may pay even more than you’d hoped, depending on the strength of the Rand. Additionally, mass-market jewellers, the ones you see in the mall, mark up their prices exorbitantly to cover costs like wages, rent, insurance, and more. Gold and Diamonds Traders is an independent diamond tailor, aiming to make diamonds accessible for everyone.
Prices depend on things like weight, colour, colour, and clarity. Factors like cut, clarity, colour, carat (4Cs), fluorescence, market supply, demand, and global economics all dictate how much you’ll pay.
The 4 Cs of Diamond Pricing
Diamond pricing is assessed using a grading criterion called the 4 Cs: cut, carat, colour, and clarity.
Cut
Excellent cut diamonds possess more fire and brilliance Fire is how much light a diamond gives off and brilliance is how bright and white a diamond is. Excellent cut diamonds’ geometry and facets (small, flat, and polished surfaces located on the crown and the pavilion) are proportioned so that they reflect 100% of the light that travels through them, giving them that signature sparkle.
Carat
A carat is a unit of measurement used to weigh gemstones. One carat is equivalent to 0.2 grams. Since bigger diamonds are rarer, they cost more, and so have more value per carat.
Colour
Diamond colours are determined by their chemical composition. Completely see-through diamonds contain zero impurities and allow 100% of the light to travel through. These can be graded on a scale starting from D that moves to Z. The further you move through the alphabet, diamonds will contain more yellow tint traces because of the nitrogen impurities in them.
Clarity
Diamond clarity refers to its inclusions (natural flaws). The fewer inclusions a diamond has, the more expensive it will be. Similarly, the more inclusions it has, the less a diamond will cost.
Trends in The Diamond Industry
The diamond industry has significantly changed, especially between 2023 and 2024, with lab-grown diamonds trumping natural lab diamonds as Gen Z gains purchasing power and the economy sharply declines. Natural diamonds have retained their belovedness and position in the market.
Live, Laugh, Lab
Millennials and Gen Z in particular opt for lab-grown diamonds because of their affordability and ethical considerations. Millennials and Gen Z have grossly less purchasing power than their Gen X and Boomer counterparts did at the same age. For them, spending 2 or 3 months’ salary as De Beers suggested, is simply not viable.
Gen Z is characterised by its awareness of social issues and ethical considerations. This doesn’t stop at the diamond industry. Gen Z chooses not to support businesses that harm humans or the planet. In fact, the generation is more likely to purchase from companies that promote their commitment to sustainability, a major selling point of lab-grown diamonds.
Au Natural
Mined diamonds’ core consumer base remains the same, focusing on luxury and prestige. The natural diamond industry has begun emphasising rarity, heritage, and investment potential. The industry has also responded to ethical concerns by sourcing diamonds responsibly and certifying them independently.
Importantly, both natural and lab-grown diamond retailers have started investing in consumer education, emphasising benefits and addressing misconceptions.
The global synthetic diamond market for jewellery should reach $21.77 billion by 2030 from $13.02 billion in 2023. The natural diamond market will not slow, either, but may be overshadowed by the boom of the middle class and younger generations buying artificial gems. Both are likely to coexist between different market segments: the wealthy and the new generation.
The diamond industry is undergoing massive transformation, especially as Gen Z disrupts century-long-held consumer trends in the name of sustainability. While natural diamonds remain prized as a symbol of eternal love and status, lab-grown diamonds have begun to flood the market because they’re affordable, more ethical, and easy to manufacture.
Ultimately, the choice depends on what diamonds mean to you and your budget. Gold and Diamond Traders stock both natural and lab-grown diamonds and are happy to help you find a gem befitting your budget, colour and, cut preferences. Contact us now to find your perfect diamond.
… see you in part 2!