Why Lab diamond? Why Natural diamond?
Once upon a time, choosing an engagement ring with a diamond was a simple task. You would go to a jeweler, look at a few different diamonds, and make your choice. But now, with the introduction of lab-grown diamonds, the decision has become a bit more complicated.
On one hand, there are natural diamonds that have been mined from the Earth, billions of years in the making. On the other hand, there are lab-grown diamonds that are man-made, yet identical in every way to their natural counterparts at atomic levels of chemical composition, physical properties, and optical properties. So, which one is THE ONE for you?
Here are a breakdown of the pros and cons from a jeweler, myself at Ouri Fine, who deal with both lab and natural diamond. Since we work with both, we are not biased in one side or the other, and we are not writing this to sell you one over the other, but rather to educate our clients to aid them in making an educated decision to express their forever-and-ever.
There are FOUR major considerations to narrow down your decision in lab or natural diamonds:
QUALITY
PRICE
SUSTAINABILITY
MARKET VALUE
QUALITY
What is quality in a diamond? You may have heard about the 4 C’s of a diamond, and yes that is the big umbrella of judging the quality of the diamond set by the leading diamond grading house, Gemological Institute of America (GIA).
Lab diamonds are man-made in a controlled laboratory. This means that the stones are quality and quantity controlled, and therefore is easier to yield higher quality and bigger carat of diamonds than that of the nature-made diamond.
Lab diamonds are also made at a greater quantity under a much shorter period of time, than that of natural diamonds. For example, lab diamonds are made in about 2 to 3 months, whereas natural diamonds are made through millions to billions of years under the Earth’s deep crust with Earth’s natural pressure, heat, and chemistry of minerals.
Finding a nice quality of 1 carat polished natural diamond takes about 250 tons of Earth and other minerals, therefore high quality with big carat size natural diamonds are rarer than making a high quality of bigger carat lab diamonds.
Because the lab diamonds are easier to manipulate and produce in high quality at faster pace and greater volume, the price per carat for each diamond is a lot less than those of natural diamonds. We will further discuss the details in the ‘Price’ section.
Lab grown diamonds that are certified have laser inscription on their girdle of their own identifying number alongside letters LG or Lab Grown, just like natural diamonds that are certified have GIA and identity numbers inscribed on their girdle.
2. PRICE
Is the rumor true that Lab diamonds are much cheaper than natural diamonds? YES!
Lab diamonds are about 20-60% less per carat than natural diamonds. For example, we sourced a 2ct lab marquise diamond at G SI1 for $7k CAD, whereas the natural diamond at this caliber would have been about $30k.
Sourcing a lab isn’t just about cheaper price though. Making sure you source from a lab dealer who is reputable and honest id key in this growing market. The whole natural diamond industry took a long time to get to where we are today to have as much transparency as possible and honesty within the business. The lab diamond also come with certification, like naturals, and for diamonds above 0.5ct should ideally come with a certificate to ensure you are getting what you are paying for.
Making sure you are getting the best price for the quality of diamonds are very important, and there is no exception when it comes to lab diamonds. As the industry gets more and more competitive with lab diamonds pricing and become more accessible, finding the best diamond for the best price is up to your jeweler’s ability to source.
3. SUSTAINABILITY
There is a huge debate currently in our diamond market that lab diamonds are more sustainable and environmentally friendly than natural diamonds. Is this true? Let’s talk about it.
Lab diamonds being more environmentally friendly, less harmful to the ecosystem, and use less energy and precious resources than natural diamonds are a controversial debate. This is because lab diamonds use about 250 kWh per carat energy that is equivalent to almost 8.7 days worth of energy use in an average American household.
Lab diamonds are made in two major ways called CVD or HPHT, and most of the times these methods are used together to create one perfect diamond. Meaning, there is still a lot of non-renewable energy use with creating lab diamonds.
Natural diamond mining on average are comparable to digging up 250 tons of Earth to find one carat of polished natural diamond. However, natural diamonds do not involve chemicals to dig up, and water used in the mining process gets treated and recycled. Modern mining follows a very strict environmental controls from local governments and communities. For example, Canadian mines have some of the most stringent environmental protocols in the world for mining practices of the natural diamonds. However, the fact is, digging up holes in the Earth disrupts the biodiversity of the ecosystem and the natural habitat for organisms.
With the rise of lab diamonds’ accessibility and popularity, people are focusing more on the novelty of the Earth’s natural creations, and its rarity is being highlighted by the slowed-pace and difficulty we are experiencing in mining high quality diamonds. Most mines have a run-time estimated to produce a certain amount of diamonds, and once the mine produces that level, they are closed down and repaired by covering up the “hole” in hopes to repair the damage.
Natural diamond mining has become some of the countries and cities’ entire economy, i.e. Botswana, where the people of these places are living off of what their land provides them as a source of living. There has been a lot of donations and developments in these places to enhance the living of the local people who are involved in diamond mining. With the growth of lab diamonds, natural diamond industry has been shed worse lights in efforts to sell more lab diamonds, but the reality of the support and community growth natural diamond mining provide has been threatened of its longevity and volume.
At the end of the day, a choice of a lab or a natural diamond comes down to each clients’ preference based on all of the pros and cons they are willing to accommodate to.
What truly is saving the Earth and being sustainable? It all comes down to what you prioritize and value, with or without the conversation about the lab/natural diamonds’ environmental impact.
4. MARKET VALUE
What else can hinder your choice in choosing lab versus natural diamond? Market value. Lab diamonds are growing in population and popularity day by day. What that means is that they are becoming easier and easier to make, find, and buy. Just as any noble product, the more popular they get, the more competitions come up, and the more accessible they become, the cheaper they become, and the less value they hold per item.
Lab diamonds have been declining in their value/market value day by day due to the increased production competition, pricing competition, and popularity. Unlike lab diamonds, natural diamonds have defeated the concern of losing value due to lab diamonds becoming a popular option. Naturals have been steadily increasing in their market value even more since the lab diamonds’ grown popularity.
We have yet to discover more diamond mines in the world, but we are seeing lesser abundance of bigger and higher quality carats. Therefore, the market value of the natural diamond is only projected to increase year after year, meaning that your investment of 20k today are likely to be worth more in a few years. However, we cannot get confused with perceived market value and resell value.
Some natural diamonds that are very popular regardless of trend has proven to be a good choice for steady increase in market price. For example, 2ct Oval G SI natural diamond was about 20k just 3 years ago, and today we buy it for as high as 30k. Does this mean you can sell your 2ct oval today for 30k? NO. Diamonds at this commercial level do not hold increased resell value. Diamonds that are considered rare today and are appraised as an estate diamond that can be auctioned are seen as an investment piece. Even then, we do not tell our clients that diamonds are “investment pieces”, because no one can promise the fluctuating market value that is set by market demand and perceived value.
That being said, a diamond is resold at about 20-50% of the original price, meaning a $10k diamond can be resold for as little as $2k. Diamonds hold the most amount of value when a 2 carat bought for a few hundred dollars from your grandmother gets handed down to your mother and then to you that is worth $30k today to buy. So, if you want to buy any nice diamond as an investment, see it as an heirloom diamond to hand down throughout generations for love and appreciation. That’s why diamonds are a choice for “eternal love”, isn’t it?
Ultimately, the decision between lab-grown and natural diamonds comes down to personal preference. Do you value the rarity and natural beauty of a diamond mined from the Earth, or are do you prioritize the lower price tag and accessibility of lab diamonds? Do you want a diamond that will hold its value over time, or are you more interested in diamond for its hard-wearing qualities with great brilliance regardless of the resell value?
At the end of the day, there is no right or wrong choice. It's all about what matters most to you. So, whether you choose a lab-grown or natural diamond, remember that the most important thing is the love and commitment that the ring represents.
- Ouri Fine Jewelry Design ltd.