Cost Difference Between Lab Diamonds vs. Natural Diamonds

Lab grown diamonds have been around for ~70 years, but have recently surged in popularity as the stones become more accessible and widely distributed across reputable jewellers. With this rise in popularity, the question of costs and value of lab diamonds vs natural diamonds is one that many prospective buyers come back to. So, what is the difference in costs? And are there any other considerations when purchasing a lab grown diamond over a traditionally mined diamond?

What's the cost difference between lab diamonds vs natural diamonds?

The cost difference between natural diamonds and lab diamonds can be between 60 to 80% - lab grown diamonds are considerably cheaper than naturally mined diamonds. 

It’s no secret that diamonds are a significant purchase - however, it’s one that people are happy to make for the symbolism, emotional significance, and value diamonds can hold. 

And while lab diamonds are becoming more popular, natural diamonds are still in higher demand. The diamond mining process is over hundreds of years old and has not changed over this period; natural diamonds continue to be in high demand with a lack of supply, making diamonds more of a rarity and causing prices to stay high.

Lab grown diamonds, on the other hand, rely on modern technology and innovation. First invented in the 1950s, lab grown diamonds have the ability to be mass-produced, resulting in considerably lower production costs.

Lab grown diamond vs mined diamond costs by carat

Typically, a lab grown diamond with identical carat weight and quality grade to a natural diamond, will cost between 60% to 80% less to purchase. 

Depending on how highly graded the diamond is, a natural 1 carat diamond will cost between $2,000 to $16,000, whereas a lab-grown diamond with the same rating will retail for $600 to $1,000. 

As you might expect, the larger the carat size, the higher the value of the diamond. Whether it be finding a diamond in the mines or growing the diamond in the lab, the larger the diamond, the more time and resources are required - naturally increasing costs. 

Why are lab grown diamonds so much cheaper?

Lab grown diamonds are so much cheaper than traditional diamonds purely because of the production process involved. As mentioned above, the efficiency and ease of which lab grown diamonds can be created means that suppliers can create stunning, high-quality diamonds at a fraction of the time and cost of natural diamond mining. 

Natural diamonds take billions of years to form; the mining process is both costly and time-consuming. Lab-grown diamonds can be formed within a month in the lab.

How do the 4cs affect diamond costs?

The 4cs - carat, clarity, colour, and cut - are each graded to determine the value of a diamond, impacting purchase costs dramatically.

The 4cs give each diamond unique characteristic traits. Carat measures the mass of the stone, clarity measures its purity, and cut describes a stone's shape and facets - giving the diamond its sparkle. 

Not all diamonds, lab-grown or natural, are created equal. The 4cs determine where a diamond is scaled to establish its retail value, providing customers a range of options.

Is it possible to tell the difference between lab and mined diamonds?

The naked eye cannot see the difference between a lab-grown and a mined diamond. Because of the identical chemical and physical makeup as a natural diamond, lab-grown diamonds are, in effect, real diamonds. 

To differentiate a mined and lab-grown diamond, jewellers can conduct tests using cutting-edge technology like a microscopic examination, diamond grading, UV rays, and an infrared spectrometer.

Do lab grown diamonds hold their value?

Lab-grown diamonds are made of the same material as natural diamonds and aren’t treated with additional chemicals or irradiation - therefore, lab-grown diamonds, like their naturally-grown counterparts, will last forever when cared for properly. 

In terms of retail value, there is an insignificant difference between lab-grown diamonds and natural diamonds. There is a common misconception that lab grown diamonds don’t hold their value after purchase - however, just like natural diamonds, they do offer resale value. It will just come down to the piece itself, and the diamond.