Most people know about diamonds. After all, who can forget about the iconic line – “diamonds are forever.” However, not a lot of people know about a lab-grown diamond.
So, what are lab-grown diamonds? And, most importantly, is it cheaper or costlier than traditional diamonds?
In this article, you will learn the answer to these questions and more.
Lab-grown Diamonds – What Is It?
Most people know that diamonds are mined. The difference with a lab-grown diamond is that it’s created in a laboratory. Science already knows the molecular composition of diamonds. And from that, humans are now capable of making diamonds in a laboratory setting.
Mined and lab-grown diamonds are the same concerning the visuals and molecular composition. Both sparkle the same way and come with various carat weights, clarity, and color. Both can also be cut into different beautiful shapes. Both are also the same in terms of durability and hardiness.
The main difference is that lab-grown diamonds are made from a precise scientific process. By careful manipulation of gases, temperature conditions, and high pressures, a specialized laboratory is able to create diamonds at a fraction of the time compared to how nature does it. Furthermore, lab-grown diamonds significantly cost less in terms of real diamond mining. And, let’s not forget about the massive negative impact of mining on the environment.
Mined Diamonds Vs. Lab-grown – Price Difference
As mentioned above, the resources required to produce lab-grown diamonds are far lesser than mined diamonds. Hence, it’s no surprise that lab-grown diamonds are typically 50%-70% more affordable compared to mined diamonds. However, other crucial factors affect the final pricing difference.
For example, the demand for mined diamonds is greater than the lab-grown. Hence, this makes mined diamonds more expensive as more consumers are willing to pay a higher price. This supply and demand factor is only exacerbated due to companies artificially regulating the supply of mined diamonds. Hence, the supply versus demand of mined diamonds is always on the sellers’ side, which then allows them to charge significantly higher prices.
Another pricing factor that needs to be considered is innovation. Technological advances will generally lead to more efficient products, which bring down the final price to consumers.
Technological advances in the field of mined diamonds are far between. In fact, most companies are still employing methods and techniques that have been around for decades. In other words, there’s little innovation in mined diamonds. Thus, the innovation factor is doing a minimal job at reducing the price.
Compare this to lab-grown diamonds, and you have a drastically different picture. Growing diamonds in a laboratory setting is experiencing rapid technological and innovative advancements. For every significant advancement, you can expect a better quality or cheaper product.
To better illustrate the difference, here’s one example. If you are looking for a diamond with an excellent cut with H color, 1 carat, and SI1 clarity, the mined variety will cost you around $6,000. A lab-grown diamond with the same specs would only cost you approximately $2,300. It’s even possible that you can get better quality at that price.
Is There A Risk Of Market Flooding?
Some people are worried about diamonds flooding the market because they can now be grown in the lab. This would translate to diamonds becoming very cheap. In theory, this is possible, but there are few signs that this may happen for several reasons.
One reason why most people love to own a diamond is because of its natural beauty. Since lab-grown diamonds are just as beautiful as mined diamonds, the chances are good that they will retain their value.
Another reason is that lab-grown diamonds are just as hard to cut compared to mined diamonds. This means you need complicated machinery guided at the hands of expert artisans. In other words, not everyone can do it, which restricts its supply to some extent.
Finally, the demand for lab-grown diamonds is growing at an exponential rate. Then, the prices of raw materials and energy to produce one are also rising. Hence, prices may be affordable for now, but it does not mean they will plummet because of the rising demand and the inability of the supply to outgrow the demand.
Wrapping It All Up
Lab-grown diamonds are kinds of diamonds that are made in a laboratory instead of being mined. Such type of diamond is molecularly and visually the same as mined diamonds.
Because lab-grown diamonds are far cheaper to produce compared to mined diamonds, you can expect a price difference of less than 50% – 70%.