If two polished diamonds of roughly the same size and shape were placed in front of you, would you be able to tell the difference between the laboratory-grown diamond (LGD) and the natural diamond?
The reality? No. As the fundamental structure of both is identical, the way they shine and sparkle is also the same. In fact, you’ve probably seen plenty of LGD jewellery without even realising it. While LGDs have been around since the 1950s1, production of gem-grade material has accelerated in the last decade, meaning they are now available in abundance.
And while LGDs have positioned themselves as the more affordable and environmentally friendly (or ‘ethical’) option, the reality is a little more nuanced. Let’s dig a little deeper into the hotly contested debate of lab grown vs natural diamonds.
Lab-grown diamond cost vs natural diamond value
To better understand the real cost of lab grown vs natural diamonds, it’s important to understand their origins. What’s the real difference between natural diamonds and lab-grown?
Natural diamond formation happened deep within the Earth between 90 million and 3.5 billion years2 ago, under intense heat and pressure far below the Earth’s surface. It’s this formation process that creates the unique set of clarity features in natural diamonds that sets every single crystal apart, resulting in the one-of-a-kind gemstones we know and love.
LGDs on the other hand can be produced in a few hours to a few weeks, using one of two main technologies: the High-Pressure High Temperature (HPHT) method and Carbon Vapor Deposition (CVD)3. The ease with which LGDs can be manufactured means mass production is possible, taking away the element of rarity and uniqueness traditionally associated with diamonds. Because the manufacturing cycles are shorter, and their supply isn’t limited (like it is with natural diamonds), LGDs are considerably less expensive to purchase at wholesale, with prices just above manufacturing cost – a stark contrast to natural stones, where factors like diamond clarity play a key role in value.
Lab-grown diamonds: early history and jewellery adoption
LGDs were first produced in 1953 by ASEA in Sweden, but were first pushed out commercially by General Electric several years later as a vital industrial material, initially for the tooling of military armaments and later for automobile manufacture. The material they created was unsuitable for jewellery.
It wasn’t until the 2000s that colourless LGDs emerged and could be produced commercially in large quantities. Since then, advancements in technology and lower production costs have contributed to an explosion in the supply of LGDs; a tenfold increase since 20184.
While greater accessibility has made these stones more visible in the market, it also underscores the importance of transparency. Certification and clear disclosure remain essential when purchasing, particularly when distinguishing between laboratory-created stones and natural diamonds, whose rarity and geological origins continue to set them apart.
This distinction is no longer just aesthetic. It is now formalised. In India, new guidelines by the Bureau of Indian Standards reserve the word “diamond” exclusively for natural gemstones, reinforcing their unique identity within an increasingly complex market.
Ethical jewellery and sustainable diamonds: natural diamonds vs lab grown
In the debate of LGDs vs natural diamonds, energy consumption often comes up as a major consideration, with LGDs often hailed as the more ‘sustainable’ option.
In truth, diamond sustainability and the answer to the question ‘what really counts as ethical diamonds and conflict-free diamonds’ is far more nuanced. The life-cycle emissions of LGDs can vary substantially depending on how and where they are made. While across the world, specifically in the Asia-Pacific region, renewable energy is increasingly being considered as a method for the creation of LGDs, for the most part, the process requires large amounts of energy, water and fossil fuels to power and cool machinery. India is not exempt from these requirements either. Nickel, iron and cobalt are usually part of the process too, so it’s not technically a mining-free process5.
Meanwhile, most major companies within the natural diamond industry employ multiple initiatives to reduce the impact of mining within their operations, from transiting and renewable energy to recycling of water. As audited members of the Responsible Jewellery Council, companies such as Rio Tinto and De Beers Group work to ensure their operations adhere to the rigorous standards the council imposes, as well as applying their own stringent auditing process. Currently, as much as 99% of the waste from diamond recovery is rock, and 84% of the water used in diamond recovery is recycled6.
Diamond companies are also required by law to plan for a mine closure before it’s even opened. Meaning diamond mines require a specific environmental ‘rehab plan’ with funding set aside, that aims to rehabilitate the land and return it to sustainable community use afterwards. For countries like India, which stands out as a global cutting and polishing hub for a large portion of all the world’s diamonds, transparency becomes an even more crucial factor.
Another important consideration when weighing up lab grown vs natural diamonds is the impact on local communities. Today, more than 10 million jobs worldwide rely on the production of natural diamonds, with many countries undergoing enormous transformations as a result.
Botswana, for example, was one of the world’s least developed countries in 1967 when its first major diamond deposit was discovered. It is now a thriving nation with free education and world-class healthcare, thanks to natural diamond revenue alone. Yet, in diamond-rich countries such as Botswana and Namibia, economies supported by natural diamonds are being negatively impacted by the rise of LGDs.
A diamond’s heritage and its emotional meaning
When you consider something a savvy investment, do you only take its financial value into account? When you weigh it up, there are plenty of other factors to consider too, such as cultural and symbolic importance, alongside emotional value.
Whether it’s a solitaire engagement ring that you would, one day, like to pass on to your son, or a little diamond pendant, a self-gift that you wear every day because it so closely represents who you are, natural diamonds aren’t just objects of adornment. They serve as a carrier of your memories, doubling up as worthy family heirlooms.
Time has told us that it’s the rarity of a natural diamond and its unique journey that lends it that unrivalled sentimental value and underpins the emotional significance of a diamond.
The long-term value of lab-grown vs natural diamond
Imagine you and a friend have decided to invest in diamonds. While you’ve opted for a natural diamond, they’ve chosen an LGD. They’ve spent significantly less than you have, making you wonder if they’ve made a more cost-effective choice. But does the ‘affordability factor’ guarantee that their purchase is sustainable? Not necessarily.
In fact, research suggests that LGDs often have a lower resale value7 with factors such as steep depreciation, lower demand in the secondary (resale market) and an overabundance of similar products all contributing to the decline in cost. And while it’s impossible to say resolutely what the future holds for diamonds in either form, resale value and longevity are important factors to keep in mind before purchasing a diamond.
Ultimately, the choice between LGDs and natural diamonds lies with you. Ask yourself: What are your priorities? How much are you willing to invest in the diamond? Do you plan on wearing it daily or is it going to be more occasional wear? Do you see it being passed down to future generations?
If you’re looking for an inexpensive, sparkly gemstone and feel less concerned about its origin, rarity or heirloom potential, you might consider an LGD. But if it’s an investment-worthy piece that could one day turn into a treasured piece to hand down to future generations, the choice must be a natural diamond. After all, a diamond is forever.
Sources
- www.4cs.gia.edu/en-us/simulants-moissanite-and-lab-grown-diamonds/ ↩︎
- www.gia.edu/gems-gemology/fall-2024-diamond-reflections/ ↩︎
- www.4cs.gia.edu/en-us/simulants-moissanite-and-lab-grown-diamonds/ ↩︎
- www.web-assets.bcg.com/the-future-of-the-natural-diamond-industry/ ↩︎
- www.naturaldiamonds.com/diamond-facts-full-report/ ↩︎
- www.naturaldiamonds.com/diamond-sustainability/environmental-protection/ ↩︎
