Lab-Grown vs. Natural Diamonds: What’s the difference?
Pictured above are a mix of earth mined and lab-grown diamonds.
Even though lab-grown diamonds have been around since the 1950s, they have only recently bloomed into popularity within the past couple of years. According to Trendalytics data, searches across social media for lab-grown diamonds are up 48.3% compared to just last year. In my own experience, I have never seen such an abundance of lab-grown diamond inventory and people are loving it as a cost-effective and more sustainable option to earth-mined diamonds. The first question I get asked is: are lab-grown diamonds REALLY diamonds? The answer is yes. They are physically, optically, and structurally the exact same as natural, mined diamonds. Laboratories mimic the natural growth process of diamonds by putting pure carbon under extreme pressure and heat, causing diamonds to form in about 6 to 10 weeks compared to Earth which takes anywhere from 1 billion to 3.3 billion years in order to appear close enough to the surface to be mined out.
The next question I always get is: Is there any resale value for lab-grown diamonds? The short answer is no; the long answer is we don’t know yet. Due to how recently the lab-grown market took off, the value changes almost daily and because of the volatility of the market, jewelers are very hesitant to buy back any lab-grown diamonds. When I first started selling lab grown diamonds, a 3ct was going for almost $15,000 but now you can find a 3ct for about $8,000-10,000. No one is sure if the pricing will continue to drop as lab-grown supplies increase, or if the prices will start to stabilize or even rise depending on how the big players in the game decide to play.
At the end of the day, I believe there is a market for everyone and lab-grown diamonds definitely have their place in the industry. Everyone’s situation when shopping for diamonds is unique and if you are looking for a big, high quality stone for a good price but don’t put too much stress on resale, then lab-grown is probably for you. If one of your main priorities is investing in a relatively stable market and having something to pass down for generations knowing there will always be value, then earth-mined diamonds might be the way to go. You may also want to consider how much you end up initially saving by buying lab-grown compared to the buy back value of a natural. Either way, diamonds are not meant to be flipped. Even the nicest of natural diamonds will fetch a lower price than what you paid if you were to buy it today and sell it a week from now. For example, if you buy a $30,000 natural diamond and sell it for $18,000, your losses on the natural are greater than the $8,000 you would’ve spent on a lab-grown even if you got nothing back for it. Both lab-grown and earth-mined diamonds are special in their own right and ultimately, it might take looking at what you can get for your budget on both sides in order for you to really know what your priorities are. In either case, I’m here to help and source the perfect diamond for you!
