In this guide, we’ll delve into the pricing of lab-grown diamonds, a topic that has garnered significant attention recently.
We will explore the factors influencing their prices, making comparisons with natural diamonds, and provide insights into the current market trends.
Lab Created Diamond Pricing
Unlike natural, earth-mined diamonds prices, which are influenced (or let’s say, controlled) by the market, the lab created diamonds are priced differently due to various factors unique to their production and market presence.
Let’s go in a little more details to understand what factors influence lab-grown diamonds prices.
- Production Techniques: The price is influenced by the sophisticated technology used, namely HPHT (High Pressure High Temperature) and CVD (Chemical Vapor Deposition). These methods, while becoming more cost-effective over time, involve significant investment in equipment, energy, and skilled labor.
- Quality Factors: As with natural diamonds, the 4Cs (Color, Clarity, Cut, and Carat) play a pivotal role in determining the price of lab-grown diamonds. High-quality diamonds that exhibit superior color, clarity, and cut, and larger carat weights command higher prices.
- Market Dynamics: Similar to natural diamonds, the pricing of lab-grown diamonds is also affected by market demand and supply, but the main difference is that in lab grown diamonds, when demand increases, diamonds factories can increase supply, unlike mined diamonds.
As consumer interest grows and production methods become more efficient, prices can fluctuate.
Typically, mined diamonds retain about 50-60% of their original purchase price when resold.
For lab-grown diamonds, it’s much worse, generally we see a steeper depreciation in reselling lab diamonds, they often retain only about 10-20% of their initial value (and sometimes less than that.)