The buzz in the world of diamonds has been how laboratory-grown diamonds (LGD) have taken over the jewellery market.

That is almost correct. Laboratory-grown diamonds have had a significant impact and gone from 10-15% of engagement sales to over 60% in just a few years. The impact of this has been to slow down the sale of naturally mined diamonds and to force the pricing of natural diamonds down. And if the natural diamond was a low quality, the price drop was huge.

There are a lot of misrepresentations and dubious claims made about LGD.

First, they have a smaller carbon footprint than natural diamonds. The facts are not easy to prove but the difference from start to finish, using the best references suggests the difference has been very small and just slightly in favor of LGD. The problem is that most LGDs are manufactured in India and China, where true measures are very difficult to verify.

Second, is that LGD are worthless. That is not true but keep in mind that LGD prices came down a huge amount in early 2023. The prices seem to have stabilized. As long as somebody can make as much as you want will mean that there will always be a lot of product available for sale. If there is a lot of product, why would someone, like a retail store, buy back a LGD that is easily sourced and doesn’t have to be looked at closely to authenticate the diamond. Simply put, less stores or buyers are around that are willing to purchase LGD when they are readily available from so many suppliers. That doesn’t make them worthless, just hard to resell.

This may change once the market stabilizes. Just keep in mind that not all natural diamonds are automatically bought back either. The most important point to understand about diamonds, whether naturally minded or laboratory grown, is that these are not purchased as an investment with the belief that they will go up in price. Diamonds are purchased for the emotional ties they have and the beauty they offer. I don’t know of many items that can be worn everyday for decades that have any resale value of any kind.

The third point is that LGD are not made in a laboratory by people in white coats. The name suggests that but blame that on the US government when they decided what the name should be for man-made diamonds. These diamonds are made in a heavy industrial setting. That doesn’t make them bad, it is just the truth of what they really are and how they are made.

Why would someone buy a laboratory-grown diamond?

This is the big question. It is really simple. This is a price proposition. People who want a larger diamond that is affordable and gives the look of naturally mined diamonds will move to LGD. In the large sizes, the LGD is simply far more affordable for the look. Many of the LGD are on the order of one-fifth to one-tenth the cost of a similar size and quality of their naturally mined counterpart. That difference can be huge for the first-time engagement ring buyer, or maybe just for the person making a self-purchase that wants a statement piece that they feel they can wear anytime and not worry about it.

Are laboratory-grown diamonds just like cubic zirconia or moissanite?

Nope…not a chance. LGD are NOT the same as cubic zirconia or moissanite. They are far superior. They won’t discolor or yellow over time. LGD won’t suddenly lose their brilliance. They are diamonds and diamonds are special for their brilliance and scintillation. That is the same for naturally mined diamonds as it is for LGD. LGD are diamonds in every sense. They have the same chemical composition, and they look like natural diamonds. They can be tested to show they are man-made but just to look at them, you would be guessing if you thought you could tell the difference between LGD and naturally mined diamonds. When it comes to telling the difference between cubic zirconia, moissanite and LGD, I feel that is easy with just the naked eye.

A company in the jewellery business offered me this analogy that I thought was fair. If you made ice cubes in your fridge or found ice outside on a frigid winter day, they are both ice and both the same make up. One is natural and one man made. This is the same comparison for LGD to naturally mined diamonds.

LGD offers a great alternative to natural diamond from both a visual (identical to naturally mined diamonds) and cost basis (a fraction of the price for the same appearance). Here is another point of view. Why would I spend a few thousand dollars on a diamond that had lots of inclusions when I could buy a very high quality LGD, that looks superior, for a fraction of the price?

At Troy Shoppe Jewellers, the alternatives are set out so you can make the choice that is best for you.

By David Blitt, Owner, Troy Shoppe Jewellers, Calgary