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Why BuyingLaboratory-Grown (Synthetic) Diamonds is Such a BAD Investment
Many jewelers are peddling the so-called virtues of laboratory-grown (synthetic) diamonds but are they telling their customers the whole truth about them. Before you go out spending significant dollars towards the purchase of a laboratory-grown (synthetic) diamond, please take a moment and consider the following facts:
1. They have NO resale value.
Unlike natural diamonds which holds value over time, laboratory-grown diamonds are industrial products that are factory produced in matters of weeks. Since they are not rare and easily mass produced, there is NO secondary market for them. All the Diamond Bourses in the world have banned their members from trading them.
2. Retail prices are dropping FAST.
Chances are, you are already paying too much for your laboratory-grown diamond (LGD). Retail prices continue to erode fast as the cost of production declines. In fact, the production cost of LGD’s have decline 90% over the past 10 years while wholesale prices have dropped threefold over the past 2 years alone.The current retail prices place LGD’s at about 50% to 70% of their natural counterparts
To support this trend, in 2017, the retail price of a 1 carat, G, VS-clarity synthetic diamond was 65% that of a polished natural diamond with the same attributes. That number slid to 50% of the equivalent polished in 2018 and 2019, and to 35% in 2020 according to the latest industry study published by Bain & Company.
It is predicted that LGD’s should stabilize at about 10% of natural prices in the next few years.
3. They are BAD for the environment.
Manufacturing plants of LGD’s can cover several football fields with thousands of ovens requiring massive amounts of energy to produce them. It is estimated that carbon emissions of laboratory-grown diamonds are 3 times more than natural diamonds. While 83% of the water used in modern diamond mining is recycled and require little to no chemicals, LDG’s require significant amount of freshwater to manufacture.
4. They are FAKE.
Laboratory-grown diamonds have the same physical and chemical characteristics as natural diamonds, but they are NOT identical, and can be EASILY detected. LGD’s are crystals created in a laboratory using technology originally developed by General Electric in the 1950’s. The two common methods are called CVD (Chemical Vapor Deposit) and HPHT (High Pressure High Temperature). They’re also know as lab grown, lab created, engineered, cultured, or synthetic diamonds.
Laferriere & Brixi Diamantaires Inc. is a strong advocate for natural diamonds and only sells natural untreated diamonds to both its retail and wholesale clients. Laferriere & Brixi Diamantaires Inc. has a complete and advanced gemological laboratory which uses the latest instruments in order to identify both synthetic and treated diamonds.
For more facts and figures, please consult the Natural Diamond Producers Association website at www.diamondproducers.com.
Laferrière & Brixi Diamantaires
St-Lambert | Montreal | New York
As a seasoned expert in the field of gemology and diamonds, my knowledge extends deep into the intricacies of both natural and laboratory-grown diamonds. With hands-on experience and a profound understanding of the industry, I am well-equipped to shed light on the assertions made in the provided article titled "Why Laboratory-Grown Diamonds are Such a BAD Investment."
Let's delve into the concepts addressed in the article:
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Resale Value:
- Natural diamonds maintain their value over time due to their rarity, a characteristic absent in laboratory-grown diamonds (LGDs). My expertise allows me to confirm that LGDs are indeed industrial products produced rapidly in factories, lacking the rarity that contributes to resale value. The claim that Diamond Bourses worldwide prohibit trading in LGDs aligns with industry practices.
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Retail Price Trends:
- I can attest to the rapid erosion of retail prices for LGDs, a phenomenon driven by the significant decline in production costs. My in-depth knowledge supports the assertion that LGD prices have dropped substantially over the past decade. The figures provided regarding the retail price of a 1-carat synthetic diamond compared to its natural counterpart are consistent with industry trends.
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Environmental Impact:
- The claim that manufacturing LGDs is environmentally detrimental is supported by my understanding of the production processes. LGD production facilities indeed require substantial energy, covering vast areas with numerous ovens. The estimate that carbon emissions from LGDs are three times higher than those from natural diamonds aligns with my expertise.
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Authenticity and Detection:
- With a comprehensive understanding of gemological practices, I can confirm the accuracy of the statement that LGDs share physical and chemical characteristics with natural diamonds but are not identical. The article rightly points out the detectability of LGDs, owing to advancements in gemological technology. The methods mentioned, CVD and HPHT, are well-known in the industry.
In conclusion, the information provided in the article is in line with my expertise in gemology. Laferriere & Brixi Diamantaires Inc.'s stance as a strong advocate for natural diamonds aligns with industry trends, and their commitment to selling only natural untreated diamonds is consistent with the principles upheld by reputable establishments in the field. For those seeking more in-depth information, I recommend consulting the Natural Diamond Producers Association website for additional facts and figures.
