Why buy lab-grown diamonds?

As we know, there are two types of diamonds. Those formed by nature and those created synthetically. Among those created synthetically, there are two procedures: HPHT and CVD. Both methodologies give laboratory diamonds, which in the rough, have different shapes, but the chemical characteristics remain the same: diamond and hardness 10.

The market is showing an upward trend towards laboratory diamonds, the reasons? Mainly end-consumers have opened their eyes to the traffic of so-called “blood diamonds”, which are diamonds that are smuggled in a variety of ways. These are clandestinely smuggled diamonds that may be associated with other crimes such as child exploitation, slavery or human rights violations.

Blood diamonds are diamonds that do not follow the KPC (Kimberley Process Certificate) regulation that governs that they must have certain export licenses and declare them both on leaving and entering the country. This document was created in the year 2000 as a result of the wars that took place in the 90’s in West Africa, whose guerrillas financed their armament with diamonds obtained from clandestine mining.

Nowadays it is really complicated to know if your diamond is blood diamond or not, if it was extracted in a legitimate or illegitimate way, but if you are still doubting, I will give you one more reason to join the “lab-diamond” trending: its low cost.

To hear low cost in the diamond market sounds like low quality, but if you are talking about lab diamonds, it is the other way around: when you buy a lab diamond you get higher weight, better clarity, better color and better cut, all this for a lower or higher price. If you want to learn how diamonds are priced click here.

Natural diamonds generally have a high price due to the high costs of digging in natural environments (which also destroys the environment) and sometimes, what they take out of the ground is scarce. What does that mean? Well, in order to continue excavating and make a profit, what they have found is going to have a very high price, and who pays for that? The end consumer, no doubt. In addition, this high price does not assure you a high quality or characteristics that make your friends look at your diamond and say “wow”. Sometimes natural diamond cutters, in order to reach the Rapaport Listing quotation block, need to get 0.01 carats more weight. This means they prefer to leave a less symmetrical diamond (less brilliance and less life) to get a heavier diamond so they can sell it for more.

Of course, they won’t tell you this. Another trick of jewelers is that the natural diamond they sell you has been purchased from someone who sold it in desperation, far below the price they originally paid for it. Come on, the likelihood that someone has owned that diamond before you is very high, especially in Spain where, since there is no diamond exchange, you have a good chance of buying used diamonds with a new lab certificate. The same diamond can be generating a significant amount of capital over time.

If you buy lab-grown diamonds, you won’t have any of these problems, and there won’t be hidden issues, nor will you be unable to trace their origin. Laboratory diamonds are produced with machines powered by solar energy from solar panels. That’s why lab-grown diamonds are called “eco-friendly diamonds” or “natural friendly.”

The traceability of a lab-grown diamond is more accurate. The companies that create these diamonds handle the entire process and do not sell the rough diamond as such to other companies or stakeholders. The diamond is created and certified by the same company. Moreover, being able to produce diamonds of better quality, they are not concerned about being priced in a lower Rapaport group, which is why they always come with a “triple excellent” cut, meaning their brilliance will sparkle even in the dark.

Another reason to buy lab-grown diamonds is their price. Laboratory diamonds have a much lower production cost, so producers and manufacturers prefer to create a higher quality diamond to maintain superior standards and thus offer the customer a diamond with good color, fewer inclusions, greater weight, and better brilliance. Sometimes you see a wedding ring with a natural diamond that looks small, yellowish, poorly cut, and also expensive. With a lab-grown diamond, you would have the same diamond for 20% of what a natural one would cost, and if you wanted to spend the same amount as a diamond with the mentioned characteristics, you would get a diamond 5 times larger, with a stunning cut, without inclusions, and 100% new.

Additionally, if you visit the stock of Smart Diamond Investors, you can find diamonds of all colors: from colorless (D-Z) to blue, pink, orange, and yellow diamonds.

These last colored diamonds, also known as “Fancy colored diamonds,” would cost at least $100,000 per carat if they were natural, in the case of pink and blue ones. But in our stock, you can find them for $300 per carat, and they have the same qualities as the natural ones.

Another reason to buy lab-grown diamonds is that there is no stock retention as there is with natural diamonds, which are subject to speculation. Natural diamond suppliers create and simulate scarcity, telling the market that there is little natural diamond when they are actually hoarding them, claiming there is none to drive up the market price. And guess who pays for this? As always, the end consumer.

In short, if you want to buy a diamond for an engagement or because you want to create a special piece of jewelry for yourself or a loved one, lab-grown diamonds offer you more for less, allowing you to use the rest of the money for a vacation with your partner, for your children’s education, or to buy a new car. The reality is this: there is inflation, and the market trend is leaning towards environmental sustainability, market transparency, the fight for human rights, the reuse of renewable energies, and, of course, a fashion trend that highlights all these values for a better and more sustainable future for everyone.