Summary

• Lab diamonds are 30% to 45% cheaper since they’re easier to make in the lab, unlike natural diamonds that need to be mined.
• The resale value of lab diamonds is virtually zero. Most manufacturers would not want to buy back a lab diamond owing to the fact they can easily manufacture it. Selling it on eBay will attract a few pennies. Natural diamonds continue to appreciate in value with years.
• Lab diamonds resemble natural diamonds in every aspect if not better including the carat, color, cut, and clarity.
• Lab diamonds should not be confused with Cubic Zirconia (CZ) or Moissanite as the latter do not resemble real diamonds entirely.
• Lab diamonds were recognized as real diamonds by the Federal Trade Commission in 2018.
• The perception that lab diamonds are lesser diamonds compared to natural diamonds makes their prices lower as buyers prefer buying natural diamonds.
• The high prices of natural diamonds witnessed globally are usually as a result of hoarding by manufacturers, reducing their supply, and raising their supplies to keep their value high.
• Lab diamonds do not contain impurities as found in natural diamonds such as nitrogen, hence they’re more brilliant than natural diamonds.
• Lab diamonds are also graded for quality. The best grading certification labs include IGI, GIA, and GCAL.

Introduction

Over recent years, it seems the world as we know it is being transformed into a small cocoon of digitization, meticulous technologies, an artificial creation of items believed to be naturally made. It started with food, then came artificial intelligence, and now we’ve gone into the definite “God’s creation,” earth.

Diamonds have long held the standing of being one of the most expensive and precious stones ever conceived by man, and with enough merit. This stone takes billions of years to form under extreme pressure and heat. The chemical changes associated with its formation are so meticulous and complex that to think man has mastered them almost makes no sense.

We now have artificially made diamonds which are stones that have been subjected under similar natural conditions to give a perfect replica of the natural diamonds. In fact, these lab diamonds have better qualities owing to the fact that their formation follows precision and perfection to achieve the desired outcome, unlike natural diamonds formed virtually under trial and error.

With that being said, it is important to note there’s virtually no difference in the cut, clarity, or even carat between a lab diamond and a natural diamond of the same quality. The two achieve the same purpose and beauty and no one can tell the difference.

However, fundamental circumstances that have made the creation of the lab diamonds realistic are the same ones that make them cheaper and less desired compared to natural diamonds. Now, granted, these sentiments hold ground for every jewelry enthusiast, for it is believed it is their mysterious nature that made them so popular and valuable in the first place, and what essence are they now that they can be created in the lab? Hence the demand for natural diamonds remaining high.

Additionally, proponents of lab diamonds argue that natural diamonds bring more calamities to the human race than any good. Natural diamonds have even been labeled “blood diamonds,” owing to their highly emotive political exuberance witnessed in African countries and politicians who will do everything to gain maximally from the trade. There’s no telling to when the rivalry between artificial diamonds and natural diamonds will come to an end, but by the time that happens, the world will have moved to another symbol of affluence, beauty, and love, just like what happened to emeralds.

Here are a few things that make lab diamonds cheaper even though they possess the same or better qualities than natural diamonds.

1. Perception

Natural diamonds are perceived to be special. They were made by “God.” They grew under the earth’s surface. Surely, you can’t compare such a gem with a hand-made stone, can you? In fact, darlings of natural diamonds believe that no matter what we do, we can never achieve the same level of precision as on natural diamonds simply because it is beyond our grasp. But to break it to them, that was broken decades ago when the first lab diamond was created.

When viewed even by expert gemologists, there’s virtually no difference between a lab diamond and a natural diamond. It’s all in the mind of the buyers and unless you point out clearly that it’s a lab diamond, it can easily be mistaken for a natural diamond.

The only difference between the two diamonds is the duration it takes to make each. One takes billions of years, the other one takes a few weeks. The chemical structure remains the same, the atoms and molecules are similar, and the cut when done by a professional cutter, yields the same brilliance. Unless that perception changes, lab diamonds are going to sell for less than natural diamonds.

2. Easier to manufacture

As in the name, lab diamonds are made in a lab. The lab contains chambers where all the necessary ingredients required to make a diamond stone are subjected under favorable conditions to produce it. It only takes a few weeks and the stone is fully formed and ready to be cut.

A natural diamond was formed billions of years ago under extreme pressure and temperature from the earth’s core. These conditions made it possible to have those qualities and it’s what gemologists have studied and mastered in making the lab diamonds. However, the natural diamonds are buried deep into the earth’s surface. It takes extensive hard labor and complex machines to dig out the stone. When extracted, it has to be broken down into small pieces using complex machines and then cut to precision by an expert. By the time the one-carat natural diamond reaches you, it has taken more than a few months.

The lab diamond is equally expensive to make but doesn’t take long, and that gives it a competitive edge over the natural diamonds.

3. Hoarding of natural diamonds

It’s a known fact that diamonds, like any other treasured natural resource like oil and gold, are hoarded to retain value by major stakeholders in the industry. We are made to believe that diamonds are extremely rare when the reverse is true. What they do is create a shortage in the market, make the demand be greater than the supply and subsequently, increase the prices of these precious stones. Buyers, who are willing and able to buy them, can then get them at whatever price the manufacturers set. Those unable to buy at that price are locked out. Their prices, therefore, remain high throughout the year.

Well, not anymore, as lab diamonds are filling up that gap. Since they’re easier and faster to make, they’re making it hard for hoarding to take place.

4. They have no resale value

Unfortunately, with the current perception and mindset in the jewelry industry, lab diamonds are considered undesirable and once sold, no seller or manufacturer will rebuy them back. In that sense, their resale value is always zero. Even if you were to sell it online on eBay, you’d receive a few pennies on the dollar. This, therefore, means that a lab diamond has sunken costs: costs you will never recover back. It, therefore, sells at a lower price, because no one will buy a lab diamond at the same price as a natural diamond while, essentially, a natural diamond will retain at least 70% of its value over the years. And even as technologies evolve, a lab diamond made today will most probably be valueless in the coming years as new better quality diamonds get manufactured in the lab using better technologies.

Are Lab Diamonds Similar to Natural Diamonds?

A lab diamond, when placed next to a natural diamond, will appear completely identical to the natural diamond if not better. The lab diamond has the same hardness as a natural diamond, has the same clarity, gives off the same fire, has the same brilliance, and can be cut into any shape.

Lab diamonds should not be confused with cubic zirconia (CZ) or Moissanite. Cubic Zirconia may produce more fire and color but is nowhere near the hardness of a diamond. It sustains scratches and cracks over time. Moissanite may be closer in hardness to a natural diamond but has less fire and brilliance. Lab diamonds, however, were even recognized as real diamonds by the Federal Trade Commission in 2018.

The cost of making lab diamonds is exceedingly lower than in a natural diamond. This is because we depend on Mother Nature to form the stones and then go extract them from the ground. Lab diamonds are made in the comfort of our labs. Interestingly, the cost of making lab diamonds has been going lower and lower compared to when it was first made. The cost for making a lab diamond was $4,000 per carat in the early days but it has come down to a few hundreds of dollars per carat. This is owing to the improved technologies that make it even easier to manufacture the lab diamonds. When compared with a natural diamond, the lab diamond costs 50% less to make, and that discount is directly transferred to the consumer.

One of the main fundamental differences between the lab diamond and the natural diamonds is in their resale value. The lab diamond loses all its value once purchased by the consumer. The natural diamond continues to appreciate in value over the years and will resell at no less than 50% of the initial value.

Another physical difference between a lab diamond and a natural diamond is that a lab diamond is made from pure carbon atoms. It’s flawless. A natural diamond contains traces of nitrogen and is one of the identifying factors.

Lab diamonds are rarely graded by large diamond grading labs like AGS. When graded, they’re not subjected to the same strict standards as natural diamonds making it quite hard to identify a perfect lab diamond for your engagement ring. However, GIA grades lab diamonds and has a zero-tolerance policy. We suggest buying lab diamonds with a GIA certificate. IGI USA, on the other hand, has more experience grading lab diamonds and is a trusted diamond certification lab. However, if you’re looking for strict grading, you should consider the GCAL certificate.

James Allen lab diamonds

Looking to purchase quality lab diamonds online? James Allen has got you covered. They’re one of the largest online diamond retailers whose reputation precedes them. This is especially so because of their advanced technologies in the creation process as well as the display. Here are a few reasons why you should consider buying your lab diamonds from James Allen.

• Customizable

At James Allen, you can get your desired diamond made precisely for you. This means that you decide the carat you want, the shape, the color, clarity, and the setting and let James Allen make it for you. This way, you get precisely what you desire all at no extra cost.

• 360 degrees view

If you’re looking to purchase your lab diamond online, you want to be able to view the diamond as though you were in the store. Well, with James Allen, that is not a problem as their advanced technology allows them to display diamonds in interactive 360-degree photos allowing you to scrutinize the diamond and receive exactly what you ordered.

• Quick turn-around time

We know that most diamonds are used in engagement and wedding rings and it makes sense to ensure that you receive them as soon as possible before the event. James Allen will not disappoint. If you need your diamond within a specific time, you can be certain that it will come even earlier. The icing on the cake, you won’t have to worry about the quality.

• Cheaper

James Allen lab diamonds are significantly cheaper and you will get 30% extra size than natural diamonds for the same price. This means you get to save some extra bucks that can be channeled to other activities. Mind you, lab diamonds and natural diamonds have no fundamental optical difference.

• Best quality lab diamonds

Don’t settle for less when you can have the best. James Allen lab diamonds come with unmatched quality to give you the best experience. Order now and experience the best.