“Real or synthetic (lab-grown)?” is a question first-time diamond buyers are confronted with. Then “what’s our budget?” comes next. The two are closely related. They provide a good basis for their buying decisions. Should the die fall in favor of the lab-grown, more information and questions are forthcoming. One of which is “what are lab-grown diamond prices and value?

Lab-Grown Diamond Prices and Value

Lab-grown diamonds are a boon to jewelry enthusiasts who do not want to break the bank when shopping for diamonds. They are marketed as both environment-friendly and much cheaper alternatives to natural diamonds. These alone would be enough reasons to convince anyone to go for these stones. However, lab-grown diamond prices and value have always been an issue for prospective buyers.

Of course, you can’t get to the bottom of this question without first knowing what they are.

What are Lab-Grown Diamonds?

As the name implies, lab-grown diamonds are diamonds made in the lab. They are often called synthetic, man-made, or lab-created diamonds.

Currently, there are two accepted processes used to make such kinds of diamonds the HPHT (high pressure and high temperature), and the CVD (chemical vapor deposition):

HPHT

• The seed is coated with carbon and placed in a high-pressure/high-temperature chamber.
• Then it is subjected to a pressure of 1.5 million psi (pounds per square inch) and a temperature of up to 1,500 degrees Celsius.
• These conditions are maintained until the carbon layer melds with the diamond seed forming a complete diamond.

CVD

• A thin slice of diamond seed (often from the HPHT process) is placed in a tightly-sealed chamber.
• Then methane and hydrogen gases are introduced into the chamber.
• Heat and pressure are then introduced into the chamber (heat and pressure are lower than in the HPHT process).
• The temperature, around several hundred Celsius, breaks down the carbon atoms in the gases and builds around the diamond seed.

“But are they real diamonds?” you may ask. “Yes,” they are real diamonds. Their chemical composition is the same as real diamonds, They look exactly the same and are just as hard. And they are graded according to GIA’s 4Cs – carat, clarity, color, and cut.

Pros of buying lab-grown diamonds

Buying lab-grown diamonds carries with it some salient advantages. These are:

• Environment-friendly – mining a carat of natural diamonds requires disturbing or destroying 100 sq ft of land, and creating 6,000 lbs of mineral waste.

• Ethically sourced – most mines employ child labor and some mines disregard safe labor practices. In fact, the estimated annual injury rate in a diamond mine is 1 in every 1,000 workers.

• Cheaper – lab-grown diamonds are roughly between 20%-30% cheaper than natural diamonds.

The only difference between natural diamonds and the lab-grown variety is the source. Natural diamonds are mined while lab-grown is made in laboratories.

How Much Does It Cost to Grow a Diamond in a Lab?

A 1-ct, H color lab-grown diamond with an SI1 diamond clarity would cost around $2,300. In comparison, a similar natural diamond would roughly cost $ 6,100.

Note: These are 2021 prices.

However, never expect these prices to remain steady. Several factors are always in play to make these prices fluctuate like the ocean tide.

Consider this—mined diamonds have a market-wide industry standard in price determination —which is basically governed by the 4Cs.

Though lab-grown diamonds are graded the same way, their price is affected by other factors.  For example, a year ago a 1-carat lab-grown diamond was more expensive than it is today. This drop in price was caused by the advancement in technology available today. Equipment and processes are now cheaper and more efficient than they were.

Looking into the future

The price structure of lab-grown diamonds shall remain fluid into the future. Other than those mentioned above are the supply chain costs.

The capital outlay for starting a diamond mine and putting up a laboratory are almost the same. So are the upstream processing costs like sorting, grading, cutting, and polishing. But it takes a longer time for a natural diamond to reach the market than for the lab-grown variety. Natural diamonds have more handling costs, which will add up to their tag price.

Then there is its impact on the environment. Diamond mining companies are fully aware of the destruction they wrought on the environment and spend enormous sums of money to minimize or eliminate the negative effects of their processes on the environment. Companies creating lab-grown diamonds don’t have these issues.

So it is highly speculative to expect the prices of lab-grown diamonds to remain at their current level or trend into the foreseeable future because of these:

• First: lab-grown diamonds are still real diamonds, and have an inherent value as natural diamonds, albeit lower.

• Second: they are expensive just as expensive to cut. Diamonds are so hard it requires special equipment and highly-skilled cutters to produce a properly-cut, beautiful diamond.

• Third: though the process and equipment continue to go through various innovations, they still need expensive supervision and management.

• Fourth: while the demand for lab-grown diamonds may increase exponentially, so do the raw materials and energy costs of production.

Innovation is the key

Compared to natural diamonds, the lab-grown ones are still in their infancy, hence their prices are still very affordable. Their market prices haven’t yet reached equilibrium. On the other hand, the prices of natural diamonds are controlled by three major companies. Making lab-grown diamonds is a free-for-all affair (at least for those who can afford to invest in it).

The silver lining may start to appear in the coming years. Like anything made from emerging technology, prices will start going down as more experience is learned and the evolution of technology continues. More than six years ago, a 1-carat, investment grade, lab-grown diamond cost just a little less than a natural diamond of the same weight and grade. The price has dramatically gone down. Not only that, today it is easy to find a beautiful 7-carat lab-grown diamond.

Do Lab Grown Diamonds Have Any Value?

To put things in proper perspective, it is better to understand the difference between price and value:

• Price – is what you pay for something or what the market thinks it is worth.
• Value – is what you think it is worth.

This is how it works by looking at, for example, the 1 carat lab-grown diamond price. In 2017, the price for a VS lab-created diamond was $ 4,100. (it has gone down by 35% since then).

But what is its value?

Its value is its importance to you and why. At the end of the day, you must realize that diamonds, natural or mined. represent love. And love is love. Its value is not in its origin, or the money you paid for it. But in what represents its emotional appeal. 

Well, that’s the philosophical or romantic point of view. Sadly, you buy diamonds for more personal or mundane reasons. One of which is its resale value a few years down the road. This bit of foresight may prompt you to ask, “are lab diamonds dropping in price?”

The answer to this is “Yes.” But it’s not due to declining demand. It still is popular. But just like any product of technology, prices will go down as technology improves, and economies of scale kick in. Experts believe that they shall remain popular in the $1,000 diamond engagement ring market.

So if these rather unflattering facts don’t deter you, good. But be sure to go all in despite the rough ride ahead.

Lab-created Diamond Prices and Value

But before jumping right in, be sure to know the answer to the question, “how much cheaper is a lab grown diamond?” At current prices, they are about 45% cheaper. Then going forward, you might be tempted to ask, “how much can I resell this for?”  Sadly, not much. You can gain more “gratitude points” by giving it as a gift rather than sell.

Not unlike natural diamonds, the price fluctuations of lab-grown diamonds are affected by the following:

• Shape: the most popular and expensive lab-grown diamond shape is the round brilliant, like the one in this Natalie Diamonds review. It’s because it gives off the most brilliance and sparkle. Then comes the oval and the Asscher.

• Cut: this impacts a diamond’s beauty (natural or lab-grown) more than anything else. An ideal or excellent cut will always be more stunning, and expensive, than a “good” or “very good”cut.

• Carat weight: this is the weight of the stone. Counter-intuitively, a heavier diamond is more expensive.

• Color: lab-created diamonds are graded by the IGI (International Gemological Institute) of Belgium. IGI’s color-grading nomenclature is similar to GIA’s, i.e. D to Z. Where D is colorless and Z has a noticeable yellow or brown tint. When buying lab-grown, look for those in the G-J range because they look great to the naked eye, yet are cheaper.

• Clarity: this is the absence of blemishes and inclusions. Diamonds with higher clarity are more expensive compared to those with less. Go for the VS1 to the VS2 when you shop for lab-grown stones.

• Certification: though certification does not affect a diamond’s price, it a proof of the genuineness of what you are paying for. While the GIA is the authority in natural diamonds, the IGI holds sway over lab-created. It has more experience and an extensive method of grading these types of diamonds.

The Bottom Line

If you buy lab-grown diamonds, let it be driven by a powerful personal reason, not an act of settling for the second-best. That will diminish the value of your purchase.

Don’t forget that a lab-grown diamond is every bit similar to natural diamonds. The only thing that differs between the two is the method by which they are brought into this world.

Don’t get so hang-up on its lack of re-sell value either. You are buying it for keeps, not as an investment.

In the mid-1990s, lab-created emerald was introduced into the market. Being one of the most precious and rarest gemstones, this got people excited. Lab-grown emerald jewelry, engagement rings (not unlike the one in this Finks review), pendants, and earrings, started popping up in jewelry stores. This mania drove the gem prices to the point of being worthless.

Will lab-grown diamonds follow the same path?

That’s a tricky question. While emeralds are beautiful and people are crazy about them, it has not gained as much foothold in the jewelry market as diamonds. Diamonds have captivated people’s interest and imagination for close to a hundred years and will remain so for the next hundred.

As long as this love affair with the precious gems exists, there will always be a place for lab-created diamonds. And buying one may fall into any one of seven reasons.

Yes, they are cheaper and have no resell value. But buying once carries one or more of the following benefits:

Cheaper

At the risk of being repetitive, lab-grown diamonds are cheaper than mined diamonds. And they will continue to be so as technology improves further and demand goes higher.

At current prices, they are 4%-5% cheaper than mined diamonds. Doesn’t that look great?

Environment friendly

At a time when we are reminded daily of the effects of global warming, lab-grown diamonds are a welcome respite.

Diamond mining has, for a long time, been the target of environmentalists concerned about the damage it does to our fragile ecosystem. Going for lab-grown diamonds is tacit support for the environment.

It is as real as mined diamonds

If ice from your fridge is as real as ice on your pond, so is a lab-grown diamond vis-a-vis natural diamond. They have the same chemical composition, hardness, and appearance, and are graded by the same grading institutes.

They are as varied as natural diamonds

There was a time when technology was in its infancy and the choices for lab-grown diamonds were rather limited. Now, you can get as many different colors, carat sizes, clarity, and cuts as natural diamonds.

Stephen Morisseau, of the GIA, says “lab-created diamonds are not fakes.” They have all the same physical and chemical properties of a mined diamond.” Yes, they are as real as real diamonds except that they are made in laboratories using cutting-edge technology. Lab-grown diamonds are chemically, physically. and optically the same as natural diamonds.

For these reasons, lab-grown diamonds are experiencing an upward trend in the industry. They are very popular among young people because of their price, transparency, and environmental reasons. In fact, this segment of the engagement rings market is experiencing a 15% to 20% uptick in sales annually.

On top of that, roughly 4.7% of the specialty diamond jewelry market in the United States. is represented by lab-grown diamonds. This is a whopping 34% increase from 2020 figures.

But skepticism remains in the buying public’s mind. And only time can tell whether these beautiful, yet artificially-made gems, will gain full and undiluted acceptance by the jewelry-loving crowd.