The current upward trend of lab-grown diamonds as an alternative to their traditional earth-mined counterpart appears unstoppable. There is a very strong demand for all fine jewellery, especially rings, sold with lab-grown diamonds in the UK.
A common question we receive from clients is whether lab-grown diamonds have inherent value. Is it better to purchase a smaller, lower-quality earth-mined diamond than the new lab-grown option? Are lab-grown diamonds carbon neutral? Are they real diamonds?
We shall make an effort to provide transparent answers to these queries regarding the current state of the sector.
Companies like Pandora and Light Box from DeBeers are now producing and marketing diamond rings made exclusively with lab-grown diamonds. Some luxury jewellers are also contemplating moving production to lab-grown diamonds in the medium to long run. The majority of jewellery retailers and internet businesses give all of their clients this choice.
Lab-grown diamonds are 100% real diamonds as they are grown from real earth-mined diamond seeds using techniques called Carbon Vapour Deposition and High-Pressure and Temperature processes. A larger actual diamond in the rough is created from the real diamond seed and is subsequently cut and polished as normal. As there is human input in the rough diamond, most lab-grown diamonds come with Ideal proportions and no fluorescence, unlike their earth-mined counterparts.
Customers who are deciding between the two can find the value of both diamonds confusing. The vastly varying online opinions on diamond engagement rings do not help either.
Simple economics dictate the price of any product depending on demand and supply. Currently, the supply of lab-grown diamonds is lower than earth-mined and demand is growing at a much faster pace than earth-mined ones. Over 80% of the industry still works on the supply of earth-mined diamonds, hence demand for lab-grown diamonds is currently outpacing supply, although production is catching up.
Now for the maths: a 1-carat round diamond, which is a suitable size for comparison, costs about £8000 on average for a fine quality (D colour, VS1 clarity) earth-mined diamond, but a lab-grown diamond of the same quality purchased in the UK costs about £1500. Unfortunately, VAT makes up £1333 of the £8000 and is not included in the diamond's inherent value.
Comparing this to the £1500 lab-grown diamond (VAT is £250), the maths is very simple. When you walk out of Marlow’s Diamonds with the earth-mined diamond, a normal retail customer loses £1333 in VAT, while with a lab diamond, one loses £250, and that too on a smaller initial investment. Both are real diamonds of 1ct and the same quality.
Assuming you're looking to buy a high-quality real diamond and do not intend on selling it anytime soon, you can go with a lab-grown diamond. This is recommended for purchases up to £15,000. Your ring will sparkle much more if produced in the right way as at Marlows, will be larger like for like and you will enjoy wearing or gifting the ring plus doing your small part in reducing carbon emissions.
When dealing with bigger, more significant, higher-quality diamonds, the analysis and conclusion become more complex. Generally, for important diamonds costing £30,000 Plus, we recommend you continue the search for the earth-mined option. The main factor is that larger better quality lab-grown diamonds are rarer as of today.
Should you want more details, please call us on 02074051477 or 01212364415, or visit our store in the UK.
