News
The rise of Lab-grown diamonds: more sustainable but less sexy?
Table of Contents:
- What is a Lab-grown diamond?
- Lab-grown vs. Natural diamond
- Lab-grown diamond global market
- The Pros and Cons of Lab-grown diamonds in Jewelry
- 7 reasons to choose Real Diamonds vs Lab-grown diamonds
1. What is a Lab-grown diamond?
Lab grown diamonds (also known as lab created diamonds, man-made diamonds, engineered diamonds, and cultured diamonds) are grown in highly controlled laboratory environments using advanced technological processes that duplicate the conditions under which diamonds naturally develop when they form in the mantle, beneath the Earth’s crust. These lab-created diamonds consist of actual carbon atoms arranged in the characteristic diamond crystal structure. Since they are made of the same material as natural diamonds, they exhibit the same optical and chemical properties.
Think of it this way: laboratory-grown diamonds are like ice from your refrigerator, while natural diamonds are like ice from a glacier. They are both ice, although their formation stories and the age of each are very different.
Lab-grown diamond timeline
Even though several claims were made about lab diamond manufacturing during the period of 1879 to 1928, none of them are confirmed. Resources say, General Electric (GE) created the first batch of lab created diamonds in 1954. Forward to the 1970s, that is when gem-quality lab stones have been available. Commercially, however, in the 1980s is when high-quality man made diamonds became accessible. In the last decade, the processes around creating lab grown diamonds have improved monumentally, making it so these diamonds are possible for use in jewelry and diamond engagement rings.
How are they created?
There are two primary methods of producing lab diamonds:
1.High Pressure High Temperature (HPHT): This method mimics the conditions under which natural diamonds are formed inside the earth. To produce the lab diamond, a large machine is fed a certain amount of carbon material that it then crushes under pressures of more than 870,000 lbs. per square inch at extreme temperatures ranging from 1300 – 1600 degrees Celsius.
2.Chemical Vapor Deposition (CVD): CVD is when a seed diamond is placed in a small, vacuum chamber filled with heated hydrogen and carbon-containing gases. At a certain temperature, the gas molecules are broken down and layers of crystallized carbon begin to form around the seed, growing a more substantial diamond. Some lab diamonds created through CVD may also undergo pressure and heat treatment after they are grown.
Is Lab-grown diamond real diamond?
The answer is ‘Yes!’
Lab grown diamonds are 100% real diamonds, with the same properties that natural diamonds have. Lab diamonds have no physical differences from natural diamonds, and it is impossible to tell them apart without specialist laboratory equipment.
2. Natural vs. Lab-grown
Both are diamonds, of course!
The first is a natural diamond created by forces deep within the young Earth. The second is from a laboratory and possesses essentially the same chemical, physical and optical properties as its natural counterpart.
The only noticeable difference between them is their origin: one was formed deep within the Earth, the other was grown in a lab.
- Diamond – the material, not the gem – is a mineral consisting of “essentially pure carbon crystalized in the isometric cubic system,” according to the U.S. Federal Trade Commission (FTC), which develops trading guides for the gem and jewelry industry. Although the FTC says diamonds are essentially pure carbon, the vast majority of natural diamonds contain trace amounts of other substances, particularly nitrogen, which gives them a yellow color or (rarely) boron, which imparts a blue color. In addition, they usually contain inclusions, tiny bits of foreign material that were trapped in the still-forming diamond millions of years ago.
- Laboratory-grown diamonds (also sometimes referred to as man-made or synthetic diamonds) entered the gem and jewelry market in commercial quantities about five years ago. Although identical in appearance to natural diamonds, they have very subtle differences that can only be detected by trained gemologists and sophisticated equipment designed for that purpose.
3. Lab-grown diamond global market
The lab-grown diamond industry has been steadily growing over the past decade as the technology improves and more companies have become involved in their manufacture. By 2030, the global market volume of lab-grown diamonds is forecast to be nearly 19.2 million carats. (Source: Statista)
Based on application, the fashion segment held the major share of the market in 2021. Lab grown diamonds are heavily used in the fashion industry for the creation of different types of unique jewelry pieces and jewelry sets. Colorless, as well as colored diamonds, are used in jewelry made with silver, gold, platinum, tungsten, and other types of metals. The availability of custom sizes and carats of diamonds made possible by growing diamonds in labs makes these diamonds highly appealing to the fashion industry. Besides jewelry, smaller lab-grown diamonds are also being used as accents in designer clothing and other types of accessories such as purses, watches, and frames for glasses or sunglasses.
Production growth and Price collapse
An increasing amount of consumers are turning to lab-grown diamonds, said Edahn Golan, the CEO of Edahn Golan Diamond Research & Data, with prices sinking 59% in the last three years.
A ‘perfect substitute?’
An increasing amount of consumers are turning to lab-grown diamonds, said Edahn Golan, the CEO of Edahn Golan Diamond Research & Data, with prices sinking 59% in the last three years.
“The share of lab grown diamond sales versus natural diamonds is rising. In 2020, they were just 2.4%. In 2023 to date they are already up to 9.3%,” he said.
Lab-grown diamonds are made in a controlled environment using extreme pressure and heat that recreates how natural diamonds are forged hundreds of kilometers in the Earth’s mantle. They are chemically, physically and optically identical to natural diamonds, and are deemed to be a “perfect substitute,” Daga said. But more importantly for most — they are a lot cheaper.
And more people are turning to them for their choice of engagement rings.
Prices of lab-grown diamonds have been “nosediving,” said Edahn.
“Three years ago, you would be able to buy a lab grown equivalent 20% to 30% off of the natural price. Now it’s anywhere between 75% and 90% off natural prices,” Daga said, attributing the cheaper prices to machines becoming more efficient in producing more man-made diamonds.
There is still high demand for natural diamonds
While lab-grown diamonds appeal to a younger, Gen Z audience who are more attuned to the environmental impact and conflict that all too often goes hand in hand with mining, it’s believed that it is unlikely used by traditional luxury houses.
Natural diamonds always have it’s audience with high spending power, and those who purchase for sentimental and ceremonial reasons, will always prefer natural stones. According to Brijesh Dholakia, junior CEO of Hari Krishna Exports, an Indian diamond producer, “Consumers who are looking to purchase engagement rings or other high-end jewelry items may place a higher value on the rarity and exclusivity of natural diamonds and may be less likely to consider lab-grown.”
Unique natural stones appeal more to brides, dominating the market for diamond engagement rings that was worth US$28.6 billion in the US and Canada alone in 2019, and is expected to reach US$39.7 billion by 2027, according to De Beers’ “Diamond Insight Report 2019”.
4. The Pros and Cons of Lab-grown diamonds in Jewelry
5. 7 reasons to choose Real Diamonds vs Lab-grown diamonds
1. A Mass Produced Product Will Never Hold its Value.
Since labs can make more and more stones on demand, there will always be a high supply of synthetic diamonds and nothing to maintain their future value.
Technology is always improving, and as diamond labs streamline their processes, it becomes less expensive to produce synthetic gems, which can also decrease the value of these stones on the secondhand market.
2. A Rare and Natural Product Will Have More Sentimentality.
There is something special and alluring about wearing a singular diamond. A naturally mined diamond has a rarity factor that makes it more appealing than a mass-produced imitation. Knowing that the earth produced a diamond over millions of years makes a real gemstone feel more sentimental and valuable than one whipped up in a sterile laboratory.
3. More people Love the Allure of a Natural Diamond.
While lab-created diamonds are made with carbon, the same element as a mined diamond, most people believe synthetic gems are not real. An engagement ring, earring, or necklace with a naturally grown gem will make your fiancé or wife feel more appreciated and valued than a lab-created stone.
4. Lab-Created Diamonds Are Not as Eco-Friendly as You Think.
You may think that lab-created diamonds are more eco-friendly, as there is no need to mine for the gems. However, no evidence suggests synthetic diamonds are more environmentally friendly, as every laboratory still requires enormous energy to run its machines. Some labs also use potentially harmful gasses such as methane to extract carbon and create their diamonds.
5. The Value of Lab-Created Diamonds Has Already Dropped Significantly.
Lab-grown diamonds once cost approximately 20% less than natural diamonds. However, you can now find one for about 40-60% cheaper than a mined diamond of the same grade and carat. While you may save money initially, you could lose out on resale value and insurance, plus it could cost more to replace the gem in the future.
6. Gemologists Can Always Tell the Difference.
You may be unable to tell the difference between a natural diamond and a lab-created one with the naked eye, but a professional jeweler can always distinguish between the two gems. Our professional jewelers can tell the two types apart using special equipment due to the different inclusion patterns and structures.
7. No Trade Value in Synthetic Diamonds.
Most jewelers and consumers won’t buy back a lab-created diamond when companies are always making new ones. There is no resale value in lab-grown diamonds since there is nothing special, distinct, or rare about the gem that can make it valuable. There is also no market cap limiting the number of lab-created diamonds. However, everyone knows there is a finite number of genuine diamonds.
At PNJ and PNJP, we only trade natural diamonds which are carefully and ethically sourced.
Shop our natural diamond jewelry on our B2B, B2C websites and Alibaba.com:
Stone quality is guaranteed with certificates available.
For loose diamonds, each stone comes with certificate either from GIA or PNJ Lab which is also a member of PNJ Group offering gems and diamonds inspection service.
Over many years operating in the field of inspection services with a team of experienced assessment experts, the most modern equipment and technology. PNJ Lab’s inspection standards are compiled based on the best inspection standards of gemological institutes in the world.