Lab grown diamonds are rapidly gaining traction in the jewelry industry, with sales of lab engagement rings increasing by 63% from the previous year. These gems are attracting more attention by offering an affordable and ethically sourced alternative to natural diamonds.
But what about their pricing? Explore the factors that influence the market value of lab grown diamonds and see how they compare to their mined counterparts.
Lab Grown Diamonds vs. Natural Diamonds: Current Market Prices
When choosing between lab grown and natural diamonds, one of the biggest factors for many buyers is price. Below is a summary of the pricing differences and range for lab grown and natural 1-carat diamonds, influenced by factors like shape, color and clarity.
| Diamond Type | Average Price | Price Range | Cost Comparison |
| Lab Grown | $687 | $467 to $1,347 | Typically 84% less expensive than natural diamonds. |
| Natural | $4,347 | $1,320 to $10,401 | More expensive due to scarcity and traditional appeal. |
The price discrepancy between these two diamond types arises from their origins and the methods used to bring them to market. Natural diamonds are extracted from the earth, a process that is often labor-intensive and expensive and raises ethical concerns related to traditional mining practices.
Lab grown diamonds are created in controlled environments using advanced technological processes that replicate the natural growth conditions of diamonds. These methods are more socially responsible and less expensive, which is reflected in the lower prices of cultivated gemstone jewelry like lab grown diamond rings and lab grown diamond bracelets.
What Factors Influence the Valuation of Lab Grown Diamonds?
Although they are identical to their earth-mined counterparts, several factors influence the value of lab grown diamonds. The technology used in their creation, market demand and consumer perceptions all play roles in determining the worth of these sparkling gems.
Production Costs
Lab grown diamonds are created using advanced technologies like High Pressure High Temperature (HPHT) or Chemical Vapor Deposition (CVD), which replicate the natural conditions for diamond formation.
These methods use a lot of energy but require less labor and have a smaller environmental impact than traditional diamond mining, which involves heavy excavation and processing.
The scalability of lab technologies enables more efficient production, reducing costs over time, in contrast to the rising expenses and diminishing availability of natural diamond mining.
Quality and Characteristics
The value of lab grown diamonds is assessed using the same criteria as natural diamonds, referred to as the 4 Cs: cut, color, clarity and carat. For example, lab grown diamond rings and lab grown diamond bracelets that showcase larger, clearer stones are priced higher than pieces featuring smaller gems with lower color and clarity ratings.
| Factor | Description | Impact on Value |
| Cut | The diamond’s proportions, symmetry and polish influence its sparkle and overall visual appeal. A well-cut diamond will reflect light better, enhancing its brilliance and value. | Higher quality cuts make the diamond more brilliant and valuable. |
| Color | Graded from colorless to yellow, colorless diamonds are the most sought-after. | Colorless diamonds are more desirable and costly. |
| Clarity | Describes the absence of inclusions or blemishes in the diamond. | Higher clarity grades increase the diamond’s desirability and price. |
| Carat | Measures the diamond’s weight. | Larger diamonds are rarer and command higher prices. |
Market Demand and Consumer Perception
As awareness of the ethical issues with mining natural diamonds grows, lab grown diamonds are becoming a popular choice for socially responsible jewelry. This appeal is particularly strong among Millennial and Gen Z shoppers, who are influencing the future of the jewelry market.
This change in perception is driving a surge in demand for lab grown diamonds, with their market value expected to grow by 9.6% by 2032. Despite this increase in demand raising prices, lab grown diamonds still offer better value than natural diamonds. With ⅔ of couples between 21 and 40 choosing cultivated gemstones, they are preferred for items like lab grown diamond engagement rings and lab grown diamond tennis bracelets.
Economic Factors
Economic trends play a role in shaping the pricing and valuation of lab grown diamonds. In times of inflation, the rising costs of materials and technology necessary for producing these diamonds can increase prices.
Consumers with extra disposable income are more likely to splurge on luxury items such as diamonds, spiking demand and potentially boosting prices. In shaky economic times, luxury spending often takes a hit as people tighten their belts, leading to decreased demand for lab grown diamonds and lower prices.
Invest in Lab Grown Diamonds
Lab grown diamonds are establishing their presence in a market traditionally ruled by natural stones. As preferences evolve, these gems dazzle with their stunning beauty and provide a more ethically sourced choice for jewelry enthusiasts.
Whether you’re looking for a dazzling diamond ring or a stylish tennis bracelet, lab created diamonds provide a captivating mix of affordability, ethical standards and visual appeal that’s too good to pass up.
