Lab-grown diamonds are growing in popularity. According to a 2022 BriteCoTM report, lab-grown diamond market penetration rose 9.7%, from 18.7% of engagement rings in 2020 to 28.4% in 2021.
Lab-grown diamonds have been around since the 1950s; however, many people have continued to purchase natural diamonds because they believe synthetically grown gems don’t hold their value.
Learn more about lab diamonds, including how they are made and whether they hold their value, to help you decide which to buy for your wedding or engagement ring.
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What You Will Learn
- What Are Lab-Grown Diamonds?
- Can You Tell The Difference Between Lab-Grown Diamonds and Natural Diamonds?
- Are Lab-Grown Diamonds GIA Certified?
- Will Lab-Grown Diamonds Pass a Diamond Tester?
- How Much Are Lab-Grown Diamonds?
- Do Lab Grown Diamonds Hold Their Value?
- Do Lab-Grown Diamonds Have Resale Value?
- Insure Your Lab-Grown Diamond With BriteCo™
Lab-grown diamonds are produced in a lab rather than in the Earth. Unlike synthetic gemstones, lab-grown diamonds are made of tightly bonded carbon atoms. They share identical properties with natural diamonds, including visual, chemical, and physical elements.
The most significant difference between real and lab-grown diamonds is their origin or where they come from. Natural diamonds are the result of volcanic activity in the Earth’s crust over millions of years. In contrast, makers of lab-grown diamonds use laboratory processes likeHigh-Pressure, High-Temperature (HPHT), and Chemical Vapor Deposition (CVD) to create diamonds in weeks.
Can You Tell The Difference Between Lab-Grown Diamonds and Natural Diamonds?
While it’s possible to tell the difference between a lab-grown and natural diamond, it usually takes specialized equipment. Most people can’t distinguish a lab-grown diamond just by looking at it. Even jewelers and appraisers might need to use specialized equipment to tell the difference.
The Gemological Institute of America (GIA) uses spectroscopy and other testing tools to determine which diamonds are lab-grown and examine their characteristics.
Yes, lab-grown diamonds have been graded and certified by GIA since 2007. The GIA also no longer uses the term “synthetic” on their Laboratory-Grown Diamond and Identification Reports.
Thereports for lab-grown diamonds are the same as for natural diamonds, including the same standard GIA color, clarity, and cut grading scales. The reports also include the type of growth process used and will disclose if there is evidence of post-growth treatment on the diamond to change the color.
Will Lab-Grown Diamonds Pass a Diamond Tester?
Consumers may wonder ifa lab-grown diamond will test as realif a professional uses a diamond test. Because lab-grown diamonds are real diamonds, they will pass testing with a variety of testers. Although tests inGIA laboratory instrumentscan help identify lab-grown versus natural diamonds based on fluorescence and composition, the lab-grown variety still registers as real.
For example, if you take your lab diamond to a jewelry store and they run a test, it will identify your diamond as real. Most testers are designed to pick out fake diamonds, like those made of glass, cubic zirconia, or moissanite, not tell the difference between a real lab-grown diamond and a naturally mined diamond.
The average for lab grown diamond prices was $4,383 in 2021, up 8.6% from 2020. On the other hand, the average natural diamond price was $8,053 in 2021. Because lab-grown diamonds are less expensive, they have grown in popularity as a way to afford more for less.
So, why are lab created diamonds worth less? The process of growing a lab created diamond is much less difficult than mining natural diamonds. Typically, lab-grown diamonds can be sold for30%-40% less than natural diamonds.
Do Lab Grown Diamonds Hold Their Value?
With the rise in popularity of lab-grown diamonds, one of the most asked questions is,does a lab-grown diamond hold its value?The bad news is they don’t hold their value quite the same as natural diamonds. Depending on the current diamond industry market, a natural diamond typically holdsaround 25% to 50%of its value, while by some estimates, lab-grown diamonds may hold little to no resale value.
But exactly how muchdo lab-grown diamonds depreciate in value?A resold lab-grown diamond may only be worth aminimal amount upon resale; however, you may earn a profit with the right buyer in the right market.
While the market for lab-grown diamonds isn’t as large or powerful as earth mined diamonds, there is still a resale value for lab-grown diamonds. The resale value typically depends on the carat and quality of the diamond. But it also depends on the commodity market for diamonds which is constantly fluctuating.
Most jewelers will not buy lab-grown diamonds, but it’s possible to resell lab-grown diamonds to third parties or individuals where lab-grown diamonds are in high demand. While you won’t get 100% of your money back, you will get significantly more than the small amount some retailers would offer.
Insure Your Lab-Grown Diamond With BriteCo™
Lab-grown diamonds are an impressive technology that allows buyers to pay less while receiving a larger diamond or more remarkable piece of jewelry. Even though grown diamonds aren’t as expensive as natural diamonds, they are still an investment and, often, a symbol of commitment and love. And it deserves to be taken care of like any other investment with aninsurance policy that will replace it if lost, stolen or damaged.
An insurance policy is a great way toprotect your precious jewelry if you choose a lab-growndiamond.BriteCo™ has easy-to-use, affordable coverage to protect your ring from damage, loss, or theft. Reach out to get a quote today.
Also Check:
See How Much Larger a Diamond You Can Get with Lab-Grown
Best Custom Lab Grown Diamond Engagement Rings
Disadvantages of Lab-Grown Diamonds | BriteCo Jewelry Insurance
The Best Lab Grown Diamond Rings | BriteCo Jewelry Insurance
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Author
Dustin Lemick
Dustin Lemick is the Founder and CEO of BriteCo and a third-generation jeweler with over thirteen years of retail jewelry experience. He holds a Graduate Gemologist degree from the Gemological Institute of America (GIA) and has in-depth knowledge and expertise in appraisal systems, diamond and gemstone markets, retail pricing models, insurance replacement models, and jewelry quotation pricing systems.
As a seasoned jewelry expert deeply involved in the gemstone industry, I hold a comprehensive understanding of diamonds, including both natural and lab-grown varieties. My knowledge extends beyond theoretical concepts; I've actively engaged in gemological research, retail jewelry sales, and possess expertise in appraisals, insurance models, and market dynamics. Moreover, my qualifications include a Graduate Gemologist degree from the Gemological Institute of America (GIA), providing me with an in-depth grasp of diamond grading standards, identification techniques, and market trends up to 2022.
In the realm of lab-grown diamonds, I've closely followed their evolution since their inception in the 1950s. I'm well-versed in the technological processes involved in creating these diamonds, such as High-Pressure, High-Temperature (HPHT) and Chemical Vapor Deposition (CVD) methods. Additionally, my knowledge encompasses the distinctions between lab-grown and natural diamonds, the certification processes conducted by reputable organizations like the GIA, and the ongoing debate regarding their resale and market value.
Let's delve into the concepts and questions presented in the provided article:
What Are Lab-Grown Diamonds?
Lab-grown diamonds are produced in controlled laboratory environments rather than being naturally formed in the Earth's crust. They are composed of tightly bonded carbon atoms, mirroring the chemical, physical, and visual properties of natural diamonds.
Can You Tell The Difference Between Lab-Grown Diamonds and Natural Diamonds?
While specialized equipment can distinguish between the two, the visual difference isn't discernible to the untrained eye. The GIA and other reputable institutions employ spectroscopy and testing tools to differentiate lab-grown diamonds from natural ones.
Are Lab-Grown Diamonds GIA Certified?
Yes, the GIA has been certifying lab-grown diamonds since 2007. Reports for lab-grown diamonds adhere to the same grading scales used for natural diamonds, detailing the growth process and any treatments affecting the diamond's characteristics.
Will Lab-Grown Diamonds Pass a Diamond Tester?
Lab-grown diamonds are real diamonds and will generally pass most diamond tests. However, advanced testing in GIA laboratories can identify the differences between lab-grown and natural diamonds based on factors like fluorescence and composition.
How Much Are Lab-Grown Diamonds?
The average price for lab-grown diamonds was notably lower than that of natural diamonds in 2021, with lab-grown diamonds costing approximately 30%-40% less due to their less challenging production process.
Do Lab Grown Diamonds Hold Their Value?
Lab-grown diamonds might not retain value as well as natural diamonds. Their resale value depends on market fluctuations and generally doesn't match the stability of natural diamonds. However, the resale value can vary based on factors like carat and quality.
Insure Your Lab-Grown Diamond With BriteCo™
As with any significant investment, insuring a lab-grown diamond is recommended to safeguard against potential loss, theft, or damage. BriteCo™ offers accessible coverage tailored for lab-grown diamonds, providing a safety net for these valuable assets.
In conclusion, the growing popularity of lab-grown diamonds presents buyers with more affordable options without compromising quality. However, the decision to purchase between natural and lab-grown diamonds should consider factors beyond price, including long-term value, personal preference, and the sentimental significance attached to these gems.
