Lab Grown vs. Natural Diamonds

A client recently introduced me to a family member who was looking to purchase an engagement ring, and shared a screenshot of what he had in mind. It was a 1.50ct oval shaped lab grown diamond, set in white gold, for $6,999.

I assured him that we could find a comparable lab grown diamond for about half the price, (we work on a wholesale markup, so our prices are better than traditional retailers), and then I asked if he understood the difference between lab grown (man-made) and natural (mined) diamonds. He said that he did not, but that his girlfriend seemed fine with a lab grown stone.

I hear this often. Few understand the intricacies surrounding this choice. As I shepherd a client through the purchasing process, I believe that it's my responsibility to explain it.

Both natural and lab grown diamonds are beautiful—even experts can’t tell the difference between them! As for price, lab grown diamonds are often sold for a fraction of their natural diamond counterparts, a disparity that continues to grow.

So, what’s the difference?

Lab grown diamonds are a product of technology. And as all technology develops, they become easier to produce, more players enter the market, and prices decrease. In the few short years that lab grown diamonds have come to market, they have already lost value for these reasons.

Meanwhile, the value of natural diamonds has increased by an average of 20% in the same amount of time.

Additionally, I should note that lab grown diamonds require a lot of energy to produce—they are not environmentally friendly, like many falsely assume.

Why is this important to the consumer?

Traditionally, an engagement ring was meant to symbolize a commitment. This commitment was expressed in part with a natural diamond, which increases in value over time. For instance, your grandmother’s diamond ring is worth much more today than it was when your grandfather purchased it. There are few material things that can be used and enjoyed over decades that compare in this way.

Many couples decide to upgrade their diamond later in their relationship. If they purchased a lab grown diamond, it will have little or no value to the jeweler. So if they want or need to sell it, they’ll likely receive only a fraction of what they originally paid for it, if anything.

In the end, this choice should be a personal one. The jeweler’s role should be to explain it in a way that allows each buyer to weigh the facts and make the decision that is right for them. As for this prospective client, he ultimately chose a beautiful 1.25ct natural diamond.