lab grown diamonds Archives

When is a diamond not a diamond?

What do you call diamonds that are not formed underground but grown in a controlled environment that mimics the conditions under which natural diamonds develop? So, are they synthetic, lab-grown or factory grown or simply ‘diamonds’?

First of all, lets look at how you ‘grow’ those divine diamonds.

There are two popular ways to grow a diamond. Both involve starting with the ‘seed’ of another diamond. The first lab diamond was made in the 1960’s and the industry has changed massively in size and complexity in the intervening 65 years.

The growing of LGD’s is a little like the VHS and Betamax fight in the 1980’s. The first option is using a High Pressure High Temperature (HPHT) system, where the seed is then placed amidst some pure graphite carbon and exposed to temperatures of about 1,500C and pressurised to approximately 1.5 million pounds per square inch in a chamber. The alternative model to make diamonds is called Chemical Vapor Deposition (CVD). This was slower out of the starting blocks but the quality and size of diamonds produced using this method is arguably superior to HPHT.

This system involves putting the seed in a sealed chamber filled with carbon-rich gas and heating to around 800C. Under these conditions the gases begin to “stick” to the seed, growing a diamond carbon atom by atom.

No one knows quite yet who will win the fight like VHS did back in the day. Vast research development and investment is being put into both practises with neither side prepared to admit defeat yet.

LGD’s represent nature at its most perfect, at a fraction of the price of a natural diamond.

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3ct G VS1 round brilliant cut LGD in 2021 – £16,500
3ct G VS1 round brilliant cut LGD in 2023 – £7,500
3ct G VS1 round brilliant cut certificated natural in 2021 – £55,000
3ct G VS1 round brilliant cut certificated natural in 2023 – £70,000

Some of the questions we are asked are ‘Are they real diamonds?’ and ‘Can you tell them apart from a natural diamond?’

The answer is yes to the first question. They test as a diamond (2.412 on a refractometer) visually and chemically identical to a natural diamond.

However, they can be told apart by those in the know.

Using LWUV and SWUV (long wave ultraviolet and short wave UV) the florescence of a factory made stone is an absolute giveaway. They often have a strong turquoise or purple colour that you never find in the natural world. The growth structure can also give away a man-made diamond because they were grown so quickly, the atomic structure does not have the same chance to settle into a classic framework.

The pricing of diamonds, whether natural or labgrown, depends on various factors such as carat weight, cut, colour, and clarity. While lab-grown diamonds are generally more affordable than their natural counterparts, the price difference is becoming more pronounced as technology advances and demand grows.

Natural diamonds are esteemed for their rarity, formed over millions of years deep within the Earth. Lab-grown diamonds, despite sharing the same physical and chemical properties, are sometimes perceived as less valuable due to their manufactured origin. Costs over the last two years has dropped in value of these stones while natural diamonds are keeping their value.

The latest findings propose that there is very little resale value for a LGD. Many auction houses will not take them and many of the large fine jewellery houses will not sell them including De Beers who set up their own LGD factory and company for their ‘Lightbox’ ranges. They stopped making engagement rings in 2022.

The marked retail price difference gives rise to the challenge in ensuring transparency and proper disclosure to the consumer. Some critics argue that buyers may not always be adequately informed about whether the diamond they are purchasing is natural or lab-grown.

Due to the price differential this could be a devastating find?

Did you know; if a diamond is marketed or sold or valued as a ‘diamond’, without a pre-fix such as lab-grown, synthetic etc, then it is assumed to be an earth grown natural diamond? All lab-grown diamonds of any shape or size must have a pre-fix to aid a consumer’s educated decision process.

During a recent valuation, a diamond ring was presented from a charming young man, who had purchased it to propose to his girlfriend. However, during our appraisal, Annabell had to give him the devastating news that it was not a natural diamond. He had purchased the stone for £38,000 when infact,the price should have been around £9,000– did the jewellers know it was lab grown?

This type of miss-selling has caused the potential for market confusion. Consumers might face challenges distinguishing between natural and lab-grown diamonds, impacting the perceived value of their purchases. So, it is important to buy your jewellery from a recognised jewellery company.

Having reviewed some of the challenges for LGDs verses natural diamonds, they are still hugely popular. In August 2023, LGD amounted to 50% of all diamonds purchased in America. Pandora, who are one of the world’s largest jewellery companies, uses LGD for many of their designs. Gems TV and ‘fashion jewellery’ brands are developing price sensitive ranges for LGDs and because of the size of the market and the lower margins being made, the producers are concentrating on melee size cut goods for watches and ‘halo’ rings and larger (2ct plus) ultra high quality diamonds, such as E & F colour VVS clarity.

So, are Lab-Grown Diamonds here to stay… the rise of lab-grown diamonds is indicative of a broader trend toward sustainable and ethical practices in the jewellery industry. While traditional diamonds maintain their allure and value, lab-grown diamonds are carving a niche for themselves, driven by consumer demand for more price sensitive choices. As technology continues to advance and consumers prioritise ethical considerations, lab-grown diamonds are likely to remain a significant player in the market. However, the coexistence of natural and lab-grown diamonds is expected, with each catering to different preferences and values. The issues associated with lab-grown diamonds against natural stones are multifaceted, touching upon perceived value, ethical considerations, disclosure, and market dynamics.

Will natural diamond values increase due to scarcity? Will women prefer to have a natural diamond on their finger rather than a lab-grown diamond or will price decide?

We wait and watch!

Laboratory-grown diamonds have been around for about 20 years but they have always been more expensive than the natural product and some have appeared in very unnatural colours. Techniques have improved and will continue to do so and prices have therefore dropped considerably.

De Beers have just launched their own brand of laboratory diamonds called their ‘Lightbox’ range – and are building a new factory in Oregon with a production target of 500,000 carats a year. They have indicated a retail price of $200 for a ¼ carat and $800 for a 1 carat stone which, despite sounding low, will still provide them with a larger profit margin than for their natural products. A reasonable ¼ carat natural stone would retail for £500 + today in the UK and a reasonable 1 carat natural stone from about £3500.

There are 2 very ‘high tec’ processes which can grow the diamond from a pure carbon ‘seed’ to over a carat in weight in about 5 weeks as opposed to the natural product which takes millions of years deep in the bowels of the earth. Man-made stones are not all totally flawless; internal flaws in natural stones are normally specks of uncrystallised carbon, whereas in man-made stones the flaws are caused by slight production glitches and variations in conditions can influence the colour and clarity qualities.

Laboratory grown diamonds

De Beers have said that they will laser mark every stone they produce, then ticket and retail it accordingly. The question is, will all producers and retailers be as honest and transparent? Another consideration is the practice of ‘diamond sights’, which take place during the early stages of the production of a piece of diamond jewellery. This is where a few very select bulk diamond buyers are offered large quantities of stones in huge ‘lots’, by the big diamond suppliers. Recently in India, a ‘sight’ was found to include only 10% natural against 90% man-made stones – with no indication from the supplier that this was the case.

Will these laboratory-grown stones drag the price of natural stones down or will it be an opportunity to promote their natural qualities and increase prices? Despite advertising to the contrary, diamonds are not that rare and although some new mines have opened in Middle Africa there have been no major new diamond field discoveries since the ones in Canada nearly 20 years ago. De Beers calculate that there are only about 50 established legitimate diamond mines operating throughout the world. They predict that the effect of relatively cheap man-made diamonds on stone prices in general could mean the number of producing mines could drop by half in the next twenty years.

Currently a first-time engagement ring buyer looking for a 2-carat diamond ring will see a sparkling man-made single stone at £1500 and a visually identical natural stone at £7500. Most will buy on price in my opinion, but I sincerely hope I’m wrong. The problem for retailers, manufacturers and of course valuers is that these man-made stones are real diamonds – ie pure carbon – and will test as such when examined by hand held diamond testing machines.

So, with this size of price gap, for both the insured and the insurer, it is going to be very important to be as sure as possible about the stone’s origins. The type of inclusions (flaws) in a natural stone do look different from those in a man-made specimen so that will help when making a judgement. However, the age of the piece and its ‘family’ history will also prove helpful guidance factors. When appraising client’s new jewellery, the need to see a certificate and receipt from the supplier stating the stones’ origins or even better an independent laboratory certificate for the principal stones, is becoming increasingly more important to both valuers and insurers.

Colorless gem cut from diamond grown by chemical vapor deposition

Currently, the GIA (Gemmological Institute of America) which is the most recognised laboratory worldwide is saying that it will carry out stone inspections and will state if a stone is natural or man-made. In the case of a man-made piece they will state the carat weight, but they will not – at this stage – classify its colour or clarity. The other main laboratories like HRD and IGI have not yet made their positions clear but I would think they would follow GIA’s position. It is to be noted that there have been quite a few new ones emerging in the Middle and Far East, out of which have come some rather disturbing stories about the accuracy of their classifications.

Our recommendation is to stick to the well known and established laboratories. It is claimed that, say a 1 carat stone, E colour and VS1 clarity with a GIA certificate could be worth 10% more than an almost identical stone with a less high-profile laboratory certificate. However, unfortunately GIA do not have a UK laboratory currently.

The diamond trading market has changed enormously over the past 20 years with De Beers no longer in virtual ‘sole control’ and the Canadians and the Russians going their own way in marketing their diamonds. The monthly diamond Rapaport and Index reports, which list the average trade prices in US dollars of millions of loose diamonds of all sizes and qualities on offer throughout the world, are still used by the trade as their base point.

Making synthetic diamonds through high pressure

I think it’s too early to be certain which way the market will go. There are obviously wider and more general factors such as the economy and politics which may also have an impact, but for sure there’s uncertainty and nervousness in some areas of the market. The fact that De Beers have committed to their own production of stones, together with their prediction that the relative ‘cheapness’ of the man-made stones could halve mining and production of natural stones in the next 20 years, gives an indication of where they foresee the market heading. The other side of the coin is that in that situation natural mined stones will become rarer and rarer therefore the prices will rise.
In conclusion, the need for regular valuations of your diamonds is becoming increasingly more important.

Tag Archives: lab grown diamonds

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