Natural or Laboratory Grown Diamonds?

When I started working in the diamond industry in 2018, I was working for a natural diamond supplier and the grumblings about laboratory grown diamonds had already begun within the trade. Shortly after, I moved to open a new company that grew and supplied laboratory grown diamonds to jewellers. It was, at the time, considered a rather bold and treacherous move.

Over the years I have seen and taken part in many of the conversations around natural and laboratory grown diamonds and, for the most part, I think the industry has chosen to focus on completely the wrong thing.

I do not see it as my place to tell a client which is better, both have considerations. My job is to find you the best diamond within your budget and for what you are looking for. It is not our place to tell clients that the only choice is a natural diamond. It is an outdated and rather elitist trope that the industry is still trying to promote today. Natural diamonds are not rare, and they do not symbolise love and commitment any better than a laboratory grown diamond or a gemstone.

The beauty of laboratory grown diamonds is that they made a 1ct diamond engagement ring a choice for so many more people whereas prior to their creation, a natural diamond engagement ring was a choice only a small percentage of people could afford to make. I love that diamonds are now so much more accessible and that the joy of a beautiful diamond engagement ring, designing a piece of jewellery for yourself or gifting something special to a loved one, is something that is accessible to many more people.

So, as someone who spent 6 years picking diamonds for some of the best jewellers in the country and who sold both natural and laboratory grown diamonds, below are my unbiased opinions on both.

Can you tell the difference between them?

No. Anyone who tells you that they can is just talking nonsense. With the right equipment or putting your diamond under a 60-magnification microscope then yes, you can tell the difference. I personally try to avoid the people who ask to see my rings under a microscope.

Quite simply, laboratory grown and natural diamonds look and behave in the same way. They are chemically, optically, and structurally identical to one another. A laboratory grown diamond has the same hardness and durability as a natural diamond. It has the same refraction index which means it will have the same fire and sparkle that we love about natural diamonds.

I have looked at tens of thousands of both natural and laboratory grown diamonds over the years and as long as they are both well cut and come from nice, clear rough then you will not be able to tell the difference with the naked eye.

Is a natural diamond a better investment than a laboratory grown diamond?

All diamonds (and jewellery in general) are a terrible investment. You can read my blog post here for more information on why.

Laboratory grown diamonds have been gem quality for the last 10-15 years, however, in that time the quality and the technology has vastly improved. This means that the cost has come down significantly and will likely continue to come down in larger sizes.

Natural diamonds, however, are not a stable price. In 2023, I watched on the trade side as natural diamonds lost around 40% of their market value in nearly every size and shape as they began to compete with laboratory grown diamonds for the engagement ring sector.

The best way to think of both is much like you would a luxury car or a luxury handbag. There might be a handful of designer handbags and luxury cars that do hold their value or even appreciate over time (in the diamond world the equivalent would be natural fancy pink diamonds or very large, high colour unique stones), however, the majority of cars that you drive off the lot will immediately lose half their value. The same is true for 99% of natural diamonds used in engagement rings. You would be very lucky to get 50% of the price you paid for a natural engagement ring if you try to sell it back to the jeweller or on the second hand market.

This has never stopped people wanting to buy luxury cars, luxury clothes or designer handbags. The difference is that there has never been any deception here that these items will hold or appreciate in value, whereas with diamonds we have long been told that natural diamonds are an investment.

Neither a laboratory grown nor a natural diamond is an investment and anyone trying to tell you otherwise, is trying to profit off the tired marketing that diamonds are rare. They are not. What they are is something beautiful and coveted for their famous sparkle. One is a miracle of nature that grew over billions of years, the other is a miracle of humankind who replicated nature so perfectly.

If you can afford it and you romanticise the idea that your diamond grew over billions of years, then natural diamonds may be the choice for you. If you value the savings that laboratory grown diamonds can offer upfront or the increase in size, colour, and clarity you can achieve, or perhaps you want to spend less on an engagement ring and put more towards your honeymoon or first house together, then laboratory grown diamonds may be the right choice.

It is absolutely correct that a natural diamond will hold more of its retail value over time than its laboratory grown counterpart which is guaranteed not to, however, the majority of people never consider the prospect of selling their engagement ring in the future and so, it is an argument that never comes into play. If that is an important consideration for you then you are probably better to choose a natural diamond, as long as you are fully appreciative of the fact that it will hold some value but nothing close to its RRP.

In summary, neither are a good investment but natural diamonds will do better in the long run than their laboratory grown counterparts. You will, however, never recoup the full retail price of your natural diamond ring should you try to sell it in the second hand market or back to a jeweller. Ultimately, buy what you can afford and are comfortable spending because the true value of your diamond engagement ring is the sentiment and the memories it will spark every time you look at it and are reminded of the proposal and wedding day.

Are laboratory grown diamonds a more environmentally friendly choice?

It’s complicated, there is no easy or short answer to this.

If I were to compare the data on land displacement, for example, laboratory grown diamonds will win every single time. If I were to compare the data on energy usage, however, natural diamonds will almost always win. This is also making the assumption that each factory grows diamonds in identical ways, which is just not true.

You can spin the data however you want to and there is no value in painting all laboratory grown diamonds as “green” (which has been very prevalent in the industry and very misleading) nor is it true that all natural diamonds are bad. Throughout the years I have met many people and companies in natural diamonds who want to improve that reputation and are doing the right things for traceability and working conditions. Throughout the years I have also visited some pretty awful laboratory grown diamond factories that are horribly polluting, all whilst trading off the value of the word “green” in marketing today.

Essentially, there are good and bad players on both sides and comparing the data is like comparing chalk and cheese. Keep in mind that these are wildly different production methods and that no one to date has managed to produce compelling data that fairly compares the two. I will say that the short supply chain and traceability of laboratory grown diamonds is a major trump card. Simply put, it is relatively easy to trace a laboratory grown diamond’s journey from growth to cutting, then to trade and onto the jeweller whereas, even with the Kimberly Process, a natural diamonds’ journey to your ring is far longer and much harder to follow.

Ultimately, the best practice is to question your jeweller on who they source their diamonds from. There is no cookie cutter answer to this question and it is rather nuanced and situation specific.