Are Lab Grown Diamonds Cheaper?

When out jewelry shopping, there are a lot of great gemstones to consider to help you make a good decision. If you are looking at diamonds though, you may find that they do get quite expensive to find a good one. You may wonder whether going with a lab grown diamond, which is often cheaper, is a good idea for you.

Lab grown diamonds are often up to 50% less expensive than real diamonds. This is due to the quality of the diamond, some of the technological advances with making the diamond, and even the competition out there that drives the price down.

If you would like to have a beautiful piece of jewelry that looks just like a diamond without the high price tag, then a lab grown diamond is one of the best options.

Let’s take a closer look at what lab grown diamonds are all about, why they often cost less, and why they may be the best choice for you when purchasing a new diamond.

What is a Lab Grown Diamond?

A lab grown diamond is still considered a real diamond. It is going to be just the same as a diamond created within the earth, but the process to create it is different.

When you purchase a diamond grown in a lab, you can eliminate any of the political and environmental concerns that come with real diamonds. You can save yourself some money too!

Lab grown diamonds are going to appear similar to a natural diamond in almost every respect. In fact, outside of a professional looking at the diamond, you will not see much of a difference. Even if you put a lab grown diamond and a natural diamond right next to each other, you won’t be able to tell.

This can make the lab grown diamond even more enticing. It is inexpensive and looks really nice in your jewelry all at the same time.

Why are Lab Grown Diamonds Less Expensive?

Many people are impressed that lab diamonds are less expensive compared to natural diamonds. There are 4 reasons why a lab grown diamond will cost less than a real diamond and these include:

1. The Perception

There is a big perception that natural diamonds are seen as more special. This is why Tiffany’s doesn’t sell lab diamonds.

While there is almost no difference that can be found between the lab grown diamond and one grown under the earth (even the experts struggle to tell the difference), the perception for most jewelry shoppers is that the natural diamond is better, and therefore more valuable. This is a big factor in driving the cost of the diamond up.

2. Easier to Manufacture

The lab grown diamonds are easier to create. They are created in the lab, with all the necessary ingredients and the perfect conditions to get the work done.

On the other hand, a natural diamond can take hundreds of thousands of years to get done, waiting for extreme pressure and temperatures from the core of the earth. And then it needs to be found and mined before anything else can be done on it.

The ease of creating lab grown diamonds make them less expensive.

3. Hoarding of Natural Diamonds

Diamonds are hoarded for their value by those who are stakeholders in the industry. They want to make it seem like the supply is more limited than it really is.

This helps to create a shortage and drives the price of the diamonds up higher than they would be if all the diamonds who are released.

This kind of practice makes it harder for some people who would like to purchase a natural diamond to get it.

4. They Do Not Have Resale Value

Unlike natural diamonds, lab grown diamonds are not going to have much resale value. Once they have been sold to the customer, there really are not a lot of sellers or manufacturers willing to buy them back. The value is almost zero, even if you try to sell it secondhand.

They may look nice, but it is hard to earn anything off them if you want to get rid of the jewelry. This can help keep the original price lower because no one wants to pay a bunch of money on a diamond that they can never sell back.

Despite having a lower price than a natural diamond, most people are pleasantly surprised that these diamonds are so similar to what you can see with a natural diamond.

There are a few differences and there are times when the lab grown diamond is not going to look as good as the natural diamond. But often the two are not very different from one another.

If you would like to get some jewelry that looks nice and can impress your friends, but you do not want to spend all that money, then a lab grown diamond may be the best option for you.

Carl A. Jones, GIA GG

Carl A. Jones is a GIA Graduate Gemologist with over 20 years of experience in the diamond industry. He is an independent jewelry appraiser. He specializes in determining the value of diamonds and advising consumers on how to buy quality diamond jewelry.

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