Understanding Natural Diamonds & Laboratory-Grown Diamonds

Natural Diamonds.

A natural diamond is a rare occurrence in nature. They are formed between 150-250km below the earth’s surface, under huge pressure of 45 to 60 kilobars, and high temperatures of 900-1,300 Celsius. These natural diamonds were brought to the earth surface by volcanoes over one billion years ago. Once the diamonds are found, they are then graded for whiteness and how clear they are. Only the diamonds that meet strict quality criteria are considered suitable for jewellery. These criteria add to the rarity of a natural gem-quality diamond. These rarity factors in finding natural diamonds on the earth’s surface, and their natural beauty and sparkle, has created the demand for these natural gems. 

Lab Grown Diamonds

Laboratory grown diamonds, known as lab diamonds, while chemically and physically identical to natural diamonds are produced in a controlled environment using advanced technology. This method allows for a more predictable and abundant supply, which can impact their market value over time.

The companies that have developed the machinery to make lab diamonds, must continue to sell their machines to remain in business. This will continue to lead to more and more supply of lab diamonds in the market.

Which diamond to choose

When making the choice, it’s important to consider what resonates most with you and your partner. Some may find profound meaning in the origins of a natural diamond, appreciating the connection to earths history. People also appreciate the unique beauty and sparkle of a diamond and are enamoured with the way in which they are formed in nature. Others may value innovative and sustainable value that a lab grown diamond gives.

In either case the true value of a diamond lies not just in the physical properties or market value but in the memories of those significant moments or shared promises.

Value

The first few years of an increasing supply of lab diamonds has seen one major difference between a natural diamond and a lab diamond: the long-term value. Earth mined diamonds are rare and finite and tend to increase in price over time, lab diamonds are now readily available, and now that there is no limit to supply there has been a steep decline in the value of lab diamonds.

For example:

Natural Diamond: a 2.00ct, F colour, VS2 Clarity, GIA certified natural diamond sold for €30,000 in 2021, the same stone today is still selling for €30,000.

Lab Diamond: a 2.00ct, F colour, VS2 Clarity, GIA certified lab diamond sold for €14,000 in 2021, the same stone today is selling for €1,400.

The lab diamond value has seen a drop of 90% in value since 2021.