Ten Questions You’ve Always Had About Lab Made Diamonds, But Never Had The Person to Ask
What are lab made diamonds and why all the buzz?
As the name suggests, lab made diamonds are created in laboratories and factories as opposed to being naturally mined. They are made from carbon, just like mined diamonds, and so they look just like their naturally mined counterparts. A lot of the buzz is because lab made diamonds very closely resemble natural ones. They are much less expensive, and consumers are told that they are better for the environment.
2. Are lab made diamonds really better for the environment?
Not at all. Unfortunately, we are led to believe that mines are terrible for the environment. Diamond mines are governed by some of the strictest environmental standards possible. Additionally, companies and governments involved in mining must always re-fill mines once they are exhausted and the landscape is brought back to its original condition once mining is finished. Even though it may be less apparent, and in our faces, labs or factories that create such diamonds consume huge amounts of energy and are located in countries with minimal pollution standards. On a side note, natural mines financially support vast amounts of people, often in underdeveloped countries.
3. How do prices for lab made diamonds compare to naturally mines diamonds?
Historically, it cost more to produce lab diamonds than their natural counterparts. However, advances in technology have overtime, brought down production costs to a fraction of the costs for naturally mined diamonds. As expected with any other high-tech production, costs to produce lab made diamonds are coming down continuously.
4. How have natural diamond prices been affected by lab made diamonds?
At its peak in the last few years, some 80% of young, engagement ring consumers chose lab made diamonds instead of mined diamonds. Buyers could get larger lab made diamonds for their budgets. Also, lab mades have been heavily promoted, since retailers are able to have much larger markups on them. Basically, the engagement ring purchase, which is the foundation of the diamond industry, caused the rug to be pulled from below and diamond prices fell by some 25-30%.
5. Are lab made diamonds graded just like natural ones and do they come in fancy colors?
Absolutely. Lab made diamonds could and should also go through GIA and receive full color/ clarity gradings. GIA will easily detect the seed within the diamond and determine that it’s lab made. The same technology can be used to create lab made color diamonds. However, the color diamond market is much smaller, and it is more difficult to create in a lab. Therefore, companies haven’t prioritized lab-made color diamonds, and that segment is lagging.
6. How are lab made diamonds actually made and how long does it take to make?
It’s a hi-tech process. A very thin sheet of carbon is used as a seed. Vacuum encased machines are able to send carbon containing gas around the seed, under high pressure and high temperature, which causes a snowball effect. This turns into diamond rough and depending on the desired size, this process could take between a few weeks to a few months.
7. Where are lab made diamonds made and where are they cut?
The vast majority are made in China followed by India. However, small amounts are made in many diamond trading countries all over the world. Cutting and polishing is a separate, distinct step. India now controls the vast majority of cutting both for lab made and naturally mined diamonds.
8. Should I buy a lab made diamond instead of a natural one?
Well, no one should tell you what to do with your own money. However, you should be a well-informed consumer, no matter what the purchase. You should be aware that lab made diamonds are not necessarily better for the environment. Also, lab made diamonds are a technology-based product. As with any other form of technology-based product, their prices go down at a very rapid pace. (Think mobile phones, computers, electric cars etc.) In other words, you should expect your lab made diamond purchase to be worth much, much less, and very rapidly. So, it’s definitely not an investment.
9. How long have lab made diamonds been around?
They have actually been around since the 1950’s. General Electric is the largest buyer and user of commercial, industrial diamonds. They started a program to make such diamonds in a laboratory more than 70 years ago. However, it’s only within the last 10-15 years that lab made diamonds have become commercially viable and made in high, jewelry quality.
10. What is the future of the lab made diamond industry?
Technology will allow lab made diamonds to be made ever more quickly. Therefore, there is no question that lab made diamond prices will continuously fall and rapidly so. Unfortunately, this will create a lot of buyer’s remorse for consumers who previously made large purchases. Consumers will also become better informed about this product. They will understand that lab mades are not an investment and not necessarily better for the environment. There will always be a group of consumers who will be tempted by the low pricing, but this group should soon become a small minority of diamond buyers. This effect will further pressure price drops.
Once the dust settles on the incredible journey of lab made diamonds, this technology will be mainly used for industrial diamonds, and naturally mined diamond prices should steadily increase to their normal levels within the next few years.
Rodney Rahmani is President of Brilliant Stars and a 3rd generation International Gemstone Merchant. He is considered a leading authority in the subjects of gemstones, jewelry, mineral economics, and the global luxury consumer market. He is a noted speaker and author of many articles on these subjects. He may be reached at [email protected]
