Lab Diamonds vs Real Diamonds Cost: What You Need to Know

Lab-grown diamonds and real diamonds share the same chemical and physical properties. The key differences between them lie in their origins and cost. 

While real diamonds are made deep within the Earth’s crust in high-pressure, high-temperature environments, synthetic diamonds consist of carbon atom structures formed using sophisticated technology in controlled conditions.

Here, we explore the price difference between lab-grown and natural diamonds, looking at factors such as production costs, market value, and overall investment value. By understanding these elements, you’ll be able to make a more informed decision when deciding between real and lab-grown diamonds.

Production Costs

The cost of lab-grown diamonds vs real diamonds is a popular question among those shopping for jewelry and engagement rings. Generally, the price of natural diamonds is higher than synthetic diamonds. This is largely due to the mining process, which requires extensive labor and operational expenses.

On the other hand, the technology involved in producing lab-grown diamonds is comparatively efficient and cost-effective. This results in lower retail prices, as these lower production costs are passed onto the consumer. 

Are Lab-Grown Diamonds Less Expensive than Real Diamonds?

When it comes to comparing a synthetic diamond’s value with a natural diamond, there are significant differences. Typically, a synthetic diamond’s value is up to 80-95% less than a real diamond. 

For example, a Pandora 1 carat lab grown diamond ring with a clarity grading of VS+, a color grading of G and an excellent cut is priced at £1,290, while a Tiffany diamond ring at just an ever so slightly 1.02 carats with the same grading is priced at £16,200. This is mostly a result of the time, energy, and environmental impact associated with natural diamonds, as well as the brand prestige associated with Tiffany diamonds. 

The Market Value of Lab-Grown Diamonds versus Real Diamonds

 The market value of lab-grown versus natural diamonds depends on their perceived preciousness and rarity. For instance, real diamonds are typically seen as more valuable due to how they are formed. The natural, geological elements required for them to form makes them inherently rare, in a way that synthetic diamonds just cannot mimic. 

While synthetic diamonds don’t hold the same historical value, they are perceived by many as equal in quality and beauty. The quick and predictable nature of their creation does mean their market value is typically lower, but to the budget-conscious consumer this can be an advantage – they are still diamonds after all! 

Synthetic Diamond Value and Investment Opportunities

With the price difference between lab-grown diamonds and natural diamonds, you may be wondering where the best investment value lies. Historically, natural diamonds have been considered a stable investment, with their rarity causing their value to steadily increase over time.

Conversely, lab-grown diamonds, despite having similar characteristics, hold a reputation for not being particularly investment-worthy. This is because they are created in a controlled environment with no limit on production numbers. 

However, this means that as the number of synthetic diamonds increases, the value of natural diamonds is potentially set to decrease. This makes it an opportune time to consider selling any natural diamond jewelry. 

The Final Verdict: Lab Diamonds vs Real Diamonds Cost

For buyers, the choice between natural and synthetic diamonds is ultimately likely to come down to personal taste, budget, and intended use. For those conscious of the environmental impact and high price of real diamonds, lab-grown diamonds are an appealing alternative. However, for many, when considering a stone’s investment potential, the rarity of natural diamonds will always be alluring and – for the time being – they maintain their status as a luxury item.

Nevertheless, some commentators say that as the market continues to mature and people are becoming more accustomed to the similarities between synthetic and real diamonds, it is possible that we might see a shift in consumer preferences. This may see the value of lab-grown diamonds increase and the demand for natural diamonds to fall.

Conclusion

In summary, whichever type of diamond you opt for, understanding the differences in natural diamond and synthetic diamond cost, production, and market value can help you to make better selling and purchasing decisions. 

If you're considering making the most of the current market conditions to sell your natural diamonds, our expert team of jewelry advisors would be delighted to assist you in obtaining a no-obligation quote. At Auctentic, we have a network of over 2000 international diamond buyers, ensuring you receive the best possible price for your precious stones. Get started by visiting our Sell Your Diamonds page today.