Is a Lab-grown Diamond Cheaper Than a Mined Diamond?

Mined diamonds are not the only gemstones couples can use on their engagement jewellery. The diamond industry, with the help of technology, has come up with an innovative way to create sustainable diamonds called Lab-grown diamonds.

These artificial diamonds look and feel like diamonds, sharing the same chemical properties too. However, they come with an added advantage. Lab-grown diamonds are cheaper and could cost between 50-70% lower than mined diamonds.

There are a couple of reasons why this is so. Let’s show you.

What are Lab-grown Diamonds?

The simple answer to this is, lab-grown diamonds are real diamonds grown in a laboratory. Yes, that seems to be the only thing that differentiates them from mined diamonds. They share the same chemical and physical composition and could pass for one another. Only a gemologist can tell the difference.

Unlike natural diamonds, they are not excavated or have any history attached to them. Lab-grown diamonds are formed from scratch by applying heat and pressure on gases or graphite. They are then cut to look like mined diamonds.

The process of creating lab-grown diamonds is way safer and better. Humans and wildlife are not at risk during the creation process of artificial diamonds.

What makes lab-grown diamonds cheaper?

Lab-grown diamonds are the cheaper, more sustainable alternative to mined diamonds. And there are a couple of factors that influence their prices. Here are some of those factors:

1.   The Demand is Relatively Lower

Mined diamonds are synonymous with engagement rings. When people see an engagement ring, they expect to see and hear about a gemstone that has a long history behind it, not something made in the lab. Using mined diamonds is more of a tradition that has been passed down through generations, and many people still stick to it.

Lab-made diamonds have not grown on people yet. Many still fantasise about the price and bragging rights mined diamonds bring. So, the demand for natural diamonds is higher. But as sustainability slowly becomes a hot topic in the jewellery industry, lab-grown diamonds are gaining more traction. Maybe over the years, the price gap will get closer when people begin to demand the environment-friendly option.

2.   Unregulated Supply

The resources needed for creating artificial diamonds are not limited. Anyone can access a lab-made diamond as long as they can afford it. Couples don’t have to go through thick and thin just to get engagement jewellery.

Mined diamonds, on the other hand, are limited in supply. They take millions to billions of years to form beneath the earth’s crust. Coupled with its high demand, the price gap between mined and lab-grown diamonds keeps growing.

Also, mined diamonds have a regulated supply that controls their availability in the market. The reason behind this is to keep it scarce and prevent its price from going down.

3.   Lower Production Cost

The creation process of lab-made diamonds has seen a lot of innovation in the past years. Technological advancement has reduced the number of scientists needed, processing time, and resources needed.

However, mining operations still make use of traditional approaches. There has been no innovation in the extraction of mined diamonds for centuries. The resources and manpower needed in mining areas have been the same for years. So, the production cost is higher for mined diamonds than it is for lab-grown ones.

4.   Inexistent Standard for Pricing

Mined diamonds have industry standards that structure their prices. These standards determine prices based on the combination of colour, carat weight, and clarity. To ensure that there is consistency in the market price, these pricing standards are updated every week depending on fluctuations in the market.

The case is different for lab-grown diamonds. There are no standards or pricing lists that help structure their monetary value. Hence, the prices of lab-grown diamonds have been inconsistent over the years.

You get more price options when shopping for engagement jewellery. Unlike mined diamonds, the prices for lab-grown diamonds are based on the quality of equipment used, the proficiency of the staff growing the diamond, and the level of expertise of the cutter. All these factors will lead to a wide range in prices in lab-grown diamonds, even when you make a specific request based on the 4Cs.

5.   Resale Value

Natural diamonds have a larger resale market than lab-grown diamonds for pretty obvious reasons. The mined diamond has years of history that help retailers project future changes in price.

The resale value for lab-made diamonds is lower, as there isn’t a standard pricing or history for it yet. But this shouldn’t matter, nobody plans on reselling their engagement rings anyway.

Why Lab-grown Diamonds Make A Good Competition

Lab-grown diamonds are catching up to the mined diamonds hype. Not surprisingly, people are beginning to see reasons why going for the artificial alternative is the best decision for an engagement ring gemstone. Here’s why.

1.   Sustainability

Lab-grown diamonds are eco-friendly. They don’t cause harm to humans or wildlife. The mining operations of natural diamonds, however, are highly questionable. These activities have been linked to forced migration, pollution, and environmental degradation.

Couples and retailers are beginning to support the pro-environment movement by sticking to the environment-safe option.

2.   Same Qualities as Mined Diamonds

To the ordinary eye, both lab-made and mined diamonds look the same. Lab-made diamonds have similar sparkle, durability, design, and colours as mined diamonds, but for a lower cost. Today, couples are taking a cost-effective approach to purchase their engagement jewellery.

3.   Grading Specifications

The same specifications are used to grade both lab-grown and mined diamonds. They both come with a grading report from the IGI (International Gemological Institute) and the GIA (Gemological Institute of America), two of the most trusted independent laboratories.

Final Thoughts

Lab-grown diamonds are cheaper and ideal for engagement jewellery, especially if you want a diamond on a budget. You don’t have to spend a fortune to put a natural diamond ring on it. In the end, all that matters is the joy of getting married to the one person that stands out in the crowd.