Everyone loves diamonds. They’re status symbols. They’re luxurious and often the embodiment of the fact that someone thought of you and decided to give you something special. Diamonds are also a relatively stable investment, and they are very likely to maintain or appreciate over time. In recent years, synthetic and lab-grown diamonds have soared in popularity for individuals who love the look of diamonds, but not the high price tag.
What Are Synthetic — or Lab-Grown — Diamonds?
Natural diamonds take billions of years and immense pressure to form. Mining natural diamonds requires a lot of capital and highly skilled labor. Both the time and expense of accessing natural diamonds are reflected in their high price tag. Synthetic and lab-grown diamonds are chemically and physically identical to natural diamonds, but they are created in the conditions of a lab in mere days.
Lab-grown diamonds are created in a machine, and the price of production has been rapidly declining as technology advances. In 2008, it cost roughly $4,000 per carat, but in recent years, the price has fallen as low as $300 to $400 per carat.
Lab-Grown Diamonds Are Growing in Popularity
As mentioned above, the cost of lab-grown diamonds has been steadily plummeting. This trend is expected to continue until the price eventually stabilizes. For this reason, any money you spend purchasing a lab-grown diamond may not be reflected in resale value as the cost of production continues to fall. However, the falling cost of lab-grown diamonds is going to continue to make fine diamond jewelry accessible to the public.
Lab-Grown Diamonds Are Environmentally-Friendly
Lab-grown diamonds do not require the same water and ecological demands as traditional mining practices. Most of the world’s diamonds have come from the third world and developing nations with complex political relationships with the western world. By comparison, lab-grown diamonds are ethically produced in an isolated environment without the politics of exploitation and environmental impact.
Lab-Grown Diamonds Can Be Appraised and Certified
Overall, lab-grown diamonds may present incentives to inexperienced diamond buyers, but some people may choose to remain loyal to mined diamonds. With the fact that lab-grown diamonds can be appraised and certified, it’s clear that the lab-grown diamond industry will continue to grow and the environmental aspect has favorable marketing incentives for jewelers.