Lab Diamond vs Natural Diamond Price: A Clear-Cut Comparison
So, you’ve decided to buy a diamond—perhaps for an engagement ring, a thoughtful gift, or just to spoil yourself. Either way, you’ve probably come across two different types: natural and lab-grown diamonds. The vast difference in their price is the first thing you’d have noticed.
It’s quite perplexing! What causes the drastic difference in the price of two diamonds that are bafflingly identical to the naked eye? For now, we leave it for later and try to clarify it out of some other complexity confusion.
The Bottom Line Up Front
Compared to their natural counterparts of the same quality and size, lab-grown diamonds are much cheaper.
You can expect to pay somewhere between 50% to 80% less for a lab-grown diamond on average. Not only is this price difference quite substantial, but it also keeps getting even larger as technology advances and lab-grown diamonds become even easier to get.
Let’s put it in numbers:
A one-carat natural diamond typically costs between $5,000 and $6,000.
A one-carat lab-created diamond of the same quality costs between $1000 and $1500.
That's a huge savings that makes it simpler to acquire a larger or higher-quality stone for the same price.
Let’s Visualize the Difference
To get a sense of how the costs compare, the following chart shows the median pricing for round brilliant diamonds of good quality (VS1 clarity, G color).
An overall comparison of costs for a 1-carat diamond with VS1 clarity and G color.
What Explains the Wide Price Gap?
Here’s the explanation for the price gap:
1. The Journey: Supply Chain & Production
Natural Diamonds : For one, natural stones have a captivating story to tell—they take billions of years forming under the Earth’s crust. And to retrieve them, there’s the whole concept of mining which is laden with insane operational costs, curly supply chains, and of course limited supply. This entire rigid struggle is reflected in the price.
Lab Grown Diamond : Contrastingly, lab-grown diamonds take mere months, or weeks even, to be grown using an expensive and advanced technology. The process, graceless as it might seem, is becoming increasingly efficient and scalable. With the process being controlled, the supply is not only predictable but also abundant. This plummets the price.
2. The “Rarity” Factor
Natural diamond deeply cherished for their old, geologically rare origin. Ever since, the marketing towards them has been founded on their distinctive, natural structure and the fact that they are a scarce resource. This rarity perception has always been the cornerstone of their value.
Lab-Grown Diamonds : are unique for not being unique. Diamonds can now be crafted with precision at any carat weight and clarity for a given quality. Given the potential supply, and unlike natural diamonds, these can be considered a consumer technology for all intents and purposes—and hence are subject to depreciation.
3. Resale Value: An Important Consideration
The discussion takes a fascinating turn here.
Natural diamonds have an existing, though somewhat flawed, resale market. Similar to a car, a diamond will almost always sell for less than the purchase price, but unlike cars, they retain value owing to their rarity.
Lab Grown Diamond market value is either very low or nonexistent. Since the market is in its early stages, there is little incentive for jewelers to purchase secondhand stones, especially given the low cost for producing new ones.
Think of it this way : A natural diamond is like a piece of antique furniture, whose value is defined by its provenance and age. On the other hand, a lab-grown diamond is like a new, well-crafted piece of furniture from a chain retailer—it looks good and serves its purpose, but its monetary value takes a nosedive as soon as you buy it.
The Right Choice For You
For the question of which choice is right for you, certainly there is no "right" or "wrong". It all boils down to your personal priorities, the amount you want to spend, and the values that matter to you.
Opt for a Natural Diamond if:
The stone's rarity and natural origin matter.
You are thinking about the long-term value and are viewing the diamond as an heirloom piece.
The natural diamond's traditional and symbolic history means something to you.
Opt for a Lab-Grown Diamonds if:
Maximizing one’s budget is intended to get the largest and most brilliant stone.
The ethical and environmental advantages of a non-mined stone are appealing.
Unlike an investment, where the diamond is a piece of beautiful jewelry to have and wear.
The Final Word
Both natural and lab-created diamonds are real, genuine diamonds. They each are chemically, physically, and optically alike. The distinction really comes down to personal preference.
For the shopper who is mindful of budget and size: Lab-grown is outstanding.
For the admirer of classic rarity and natural beauty: The natural stones are likely the choice.
This understanding allows sharper judgment while shopping and increases your appreciation of your choice. Enjoy the treasure hunt for the perfect stone