Lab-grown diamonds have surged in popularity for many compelling reasons. At a glance, distinguishing between a natural diamond and a lab-grown one is nearly impossible. However, the most noticeable difference is often the price. Lab-grown diamonds cost significantly less than natural diamonds of the same size and quality. But does this difference in cost affect their long-term value?
What is a Lab-Grown Diamond?
A lab-grown diamond is a man-made gem created in a laboratory to replicate the properties and appearance of a natural diamond. These diamonds consist of carbon atoms arranged in the same crystal structure as natural diamonds, making them virtually indistinguishable without specialized equipment.
Why Choose a Lab-Grown Diamond?
Cost-Effectiveness
Lab-grown diamonds are more affordable due to the controlled and efficient production process. While natural diamonds take billions of years to form, lab-grown diamonds can be created in just a few weeks.
Ethical and Environmental Benefits
Choosing lab-grown diamonds supports sustainable practices, reducing the environmental impact associated with traditional diamond mining.
What Determines the Value of a Lab-Grown Diamond?
Lab-grown diamond prices, like natural diamonds, are influenced by the “Four Cs”: cut, color, clarity, and carat weight.
Shape
Shapes range from the popular round to the less expensive square, with many other styles in between to suit personal preferences and budgets.
Cut
The cut significantly impacts the diamond’s brilliance and overall beauty.
Carat Weight
Larger diamonds are more expensive due to their rarity and the amount of material required.
Color
Lab-grown diamonds are graded on a D to Z scale, with D being colorless and the most valuable.
Clarity
Clarity measures the presence of inclusions or blemishes. Higher clarity grades command higher prices.
Do Lab-Grown Diamonds Hold Their Value?
In short, lab-grown diamonds do not retain their value as well as natural diamonds. While natural diamonds typically hold around 50% of their value if resold, lab-grown diamonds have little to no resale value. The resale market for lab-grown diamonds is still developing, which affects their long-term investment potential.
The Bottom Line
Lab-grown diamonds are a beautiful and ethical choice, but their financial value may not endure. At Alberta Diamond Exchange, we are here to help you find the perfect ring that aligns with your values and budget. Contact us for personalized assistance in selecting your ideal diamond.
