The Future of Lab-Grown Diamonds
Knowledge Sustainability

The Future of Lab-Grown Diamonds (and Mined) – What You Need to Know

Last Updated on March 31, 2023 by LabGrownCarats

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Lab-grown diamonds are here to stay, and the future of lab-grown diamonds is shining bright. Lab-grown diamonds are not only cheaper for the consumer, but they are also better for the environment and society. In fact, they are likely to hold the future of diamonds and the industry. For centuries diamonds have been perceived as rare and a luxury that only the rich could afford and invest in. Luckily, this is now changing.

Are diamonds rare?

Not really. The diamond industry of the old world has spent billions of advertising dollars trying to convince us that diamonds are rare when, in fact, they are not. What is one way to increase consumer prices? To decrease supply (real or not). Perceived rarity and even high prices may increase demand in some cases. The supposed rarity has added a premium to diamond prices, which has only served the mining and traditional diamond companies. With the advent of lab-grown diamonds, the rarity argument clearly is no longer valid, and diamonds are no longer a finite good that only the well-off can afford.

Will lab-grown diamonds hold their value?

Lab-grown diamonds – as well as mined – will likely decrease in cost over time. Therefore, any diamonds (mined or not) that you buy today will likely decline in value.
It is our expectation, as well as that of industry commentators, that diamond prices, on the whole, will decrease. So our clear advice is to not invest in diamonds as a store of value (like gold, fiat currencies, or even cryptocurrencies) but invest in diamonds for what they are – the most beautiful gemstone that you can buy. And now, more people can enjoy the timeless beauty of high-quality diamonds.

Will diamonds ever be cheaper than simulants (aka “faux diamonds”)

Very likely not. Even if you take the production or mining cost out of (raw) diamonds, there are still significant costs associated with cutting, polishing, grading, etc., which will likely not change dramatically. So while both mined and lab-grown diamond prices are likely to decrease over time, they will always be valuable pieces of jewelry requiring many hours of work to perfect. The diamond industry is safe – and so is your jewelry investment. It’s just the mining part that’s being taken out of the equation. And that’s good for your wallet and the environment.

Should I invest in diamonds?

No, we don’t think you should invest in diamonds. First, most diamonds are likely to decrease in value over time (except for perhaps a few diamonds so large they have been given a name, such as the Hope diamond). This includes both mined and lab-created diamonds. Second, as lab-grown diamonds disrupt the industry and consumers learn that they are cheaper and better for the environment and people, mined diamonds will lose their allure and won’t be able to carry their historically high price. That is fine. This only allows more people to be able to adorn their jewelry with real diamonds. And diamonds can even be used in computing and industry, driving growth and creating jobs.

Second, we generally do not believe you should invest in commodities to store wealth (and possibly hide it from tax authorities). Instead, invest your money in real companies that produce real things and employ real people.

How has the diamond industry reacted to lab-grown diamonds?

The established diamond industry (which relies primarily on mining) has tried to drive a wedge between lab-created and mined diamonds and often refers to mined diamonds as “natural.” But, as you have learned here, there is no difference between diamonds extracted from Earth and diamonds created in a laboratory (except for the latter’s minimal environmental and social impact). So why have the mining companies desperately tried to tell another story? The reason is, of course, that their business model is challenged. They have even lobbied for governments to enforce that lab-grown diamonds not be referred to as “diamonds” but have not been successful (because they are indeed diamonds). Lab-created diamonds must still be labeled as lab-grown, however.

So far, the industry has succeeded in adding a premium to mined diamond prices. Still, the overall costs of diamonds have fallen – partly because of the very real and sustainable alternative consumers have found in lab-grown diamonds.

Learn more from The Economist

To get an unbiased understanding, we recommend watching the below excellent informational piece published by the renowned newspaper and magazine The Economist sharing their views and that of the industry.

The Economist on Lab-Grown Diamonds

Need help?

When know that the task of buying lab-grown diamonds can be daunting. We are here to help you find the right diamond, the best place to shop or answer any questions you might have.