Lab-grown diamonds. What's the difference? Can you tell the difference between a natural and lab grown diamond?
Well, the answer is yes. We have a very simple tool that tells us whether a diamond is potentially a lab-grown diamond. Lab-grown diamonds are in a category of type 2. Most diamonds 95, 97% are type 1 diamonds and are simple types. That tells us whether a diamond is type 2. If it's a type 2, we do some further testing and if we can't make a decision, we send it off for spectroscopic analysis with expensive testing and expensive machinery. But the diamonds we sell all come with a GIA grading report and the GIA do these expensive testing as a matter of course. So, if a diamond has a GIA grading report, it will not be synthetic, it will not be a lab-grown diamond.
I don't particularly like that term ‘lab-grown’ diamond, because it implies that the diamond is grown in a lab. In actual fact, they're grown in huge factories that consume huge amounts of energy. Most of those factories, 99% of those factories in fact, are in China and India and they are burning coal to produce the diamond.
The main reason that I don't like lab grown diamonds and when people say “Will you sell me a lab round diamond”, I explained to them that I can't buy that diamond back because that diamond, in five years time, will be worth a 10th of what it is now. Sadly, the lab-grown diamond people are trading off the Rapaport Price List. They are getting the diamond graded and they will tell you that this diamond is a D, VS1 diamond and therefore, it's worth more than a J, SI2 diamond. Frankly, in five years time nobody will be making J, SA2 diamonds. They will all be of a high quality and as such, there is no rarity. There's no rarity in lab-grown diamonds. And again, it's explained in our Diamond Buying Guide.
The main factor of rarity is that if you double the carat weight of a diamond, the price goes up by a factor of four. Big diamonds are rare. They genuinely are rare, in spite of, what you might read in the popular press etc. about safes “full of diamonds in London” blah blah blah. Big diamonds are genuinely rare.
That rarity factor is something that the synthetic diamond producers are trading off. What they do to make a diamond that is twice the size is, they run their machine for another day or two and they grow a deeper crystal. From that deeper crystal they cut a diamond that is twice the size. So there is no real rarity factor.
The DeBeers factory producing synthetic diamonds is almost complete. They are selling diamonds at the same price per carat independent of the carat size. Today, they're only going up to one carat but they will be making larger lab-grown synthetic diamonds. Those diamonds won't be more expensive.
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