The Difference Between Natural & Lab Grown Diamonds

My name is Craig Husar, and I own Craig Husar Fine Diamonds. As a Graduate Gemologist and former GIA Instructor of Gemology, I have spent a lifetime studying gemological treasures. Recently, lab-grown diamonds entered the marketplace and created exciting new options. Here are the key differences that set natural diamonds apart from lab-grown diamonds to help you navigate the diamond shopping experience and give you the facts.

When shopping for diamond jewelry, many everyday things must be clarified and frequently asked. What is a natural diamond, and is it the same as a mined diamond? How do we tell natural diamonds from laboratory-grown diamonds? What are the differences between natural and lab-grown diamonds? Are there environmental or social benefits to one over the other? It’s important to understand the facts about what you’re buying before you buy.

1. How are they created?

Natural diamonds are formed by the heat and pressure of the Earth, from 1 to 3 billion years ago, making a natural diamond the oldest thing you will ever touch.

The extreme conditions within the Earth that created natural diamonds are only the beginning of their journey. Millions of years after their formation, on average, 100 miles deep within the Earth, natural diamonds were blasted toward the surface of the Earth by ancient volcanoes. These volcanoes trapped diamonds in their molten rock as it exploded to the surface, and today, diamonds are found in the remanence of these ancient volcanoes we call kimberlite pipes. Natural diamonds are sometimes called ‘mined’ diamonds, although some natural diamonds are recovered without mining.

On the other hand, lab-grown diamonds are created by humans using machinery and energy to force carbon to crystallize. Although sharing physical and optical properties, lab-grown diamonds’ quick growth process makes them easily identifiable from natural diamonds using a proper tester.

2. Are they rare and valuable?

The total amount of natural diamonds, one carat or larger, recovered in a year would only fill one exercise ball.

The value of a natural diamond derives from its rarity as a finite, natural gem. This rarity and finiteness make natural diamonds valuable. Over the last 35 years, natural diamonds have been shown to appreciate by approximately 3% annually. Natural diamonds retain inherent value over time, making them an incredible heirloom.

However, like other manufactured products, lab-grown diamonds can be replicated in unlimited quantities. Between 2016 and 2022, the prices of laboratory-grown diamonds fell by more than 70%.

3. What is their environmental impact?

The environmental impact of a one-carat natural diamond from mine to finger is about the same as manufacturing three smartphones.

Researchers are using the rocks in which diamonds are found, called kimberlite, to absorb carbon dioxide from the atmosphere in a groundbreaking research program aimed at reaching carbon neutrality within this decade. Also, triple the land natural diamond companies use is set aside for environmental conservation.

No toxic chemical bi-products are used in natural diamond recovery because diamonds are easily extracted from the host rock once they are removed from the ground. The leftover rock is then stored on-site to return the land to its original state when the mine is closed.

Lab-grown diamonds are produced using electricity and machinery to recreate Earth’s conditions and generate temperatures of 2,700 Fahrenheit and pressure of 1.5 million pounds per square inch. They also need large amounts of water to cool down the reactors. Around 60% of LGDs are manufactured in China and India, countries that rely heavily on coal. Production facilities have also used hydropower to replace fossil fuel, which is still a limited option for most laboratory-created diamond markets.

4. What do they symbolize?

The word ‘diamond’ comes from the Greeks, who named the stone ‘Adamas’, meaning unbreakable or unalterable.  

Since their discovery almost 4,000 years ago, natural diamonds have fascinated humans with their unique properties that were previously unseen. They immediately came to symbolize strength, resilience, and power. Ancient Greeks named them ‘Adamas,’ meaning unbreakable, just like love. Mythology also sees Cupid’s arrows tipped with diamonds, as a diamond was said to aid in falling in love. The first diamond engagement ring was given in 1477, sparking the tradition and cementing their status as the ultimate symbol of love, a sentiment that has spread across cultures and through time.

5. Are they sustainable?

The natural diamond industry supports the livelihood of 10 million people globally.

Together, the world’s leading diamond producers create $16 billion in net positive socioeconomic and environmental benefits annually in countries where they operate–80% of which stays within local communities. Entire countries, such as Botswana, and remote areas, like Canada’s far North, have been entirely transformed by the discovery of natural diamonds.

The wealth generated by laboratory-grown diamond companies primarily benefits a few venture capitalists and investors who have yet to demonstrate socioeconomic contributions similar to those of the natural diamond industry.

FAQ:

Which type of diamond is more valuable?

Natural diamonds are rare, often five to ten times the price of a lab-grown version, and rarity is why people choose natural diamonds. No new significant diamond mines have been discovered or opened in the past 30 years. The existing natural diamond mines will eventually close and cause severe shortages, causing many to speculate that diamond prices will soar.

Should I buy a lab-grown or earth-grown natural diamond for an engagement ring?

An engagement ring is a highly personal possession. It's important to remember that both lab-grown and mined diamonds are both diamonds. For this reason, it’s hard to say whether you should go with the mined or lab-grown diamond when buying one.

There are a few factors that can help you make the decision:

Price: Lab-created diamonds cost less than natural diamonds because they come through a shorter supply chain.

Resale value: Mined diamonds have a long history and because no new mines have been discovered in the past 30 years, are becoming more and more rare. Lab-grown diamonds are too new to have established a resale market but the increased demand will only help strengthen their resale value. 

Want to learn more? Connect with one of Craig Husar’s Trusted Jewelry Advisors today.