Will Lab-Created Diamonds Lose Value?

Posted by Koorosh Daneshgar on Jan 18th 2023

Lab-created diamonds have been gaining popularity in recent years as an alternative to natural diamonds. They are created in a laboratory using advanced technology, and are virtually identical to natural diamonds in terms of their physical and chemical properties. However, a common concern among consumers is whether lab-created diamonds will lose value over time.

It is important to note that lab-created diamonds are not the same as diamond simulants, such as cubic zirconia or moissanite, which are made from different materials and have significantly lower value. Lab-created diamonds are real diamonds, made of the same material as natural diamonds and with the same properties.

When it comes to the value of lab-created diamonds, there are a few factors to consider. The first is that lab-created diamonds are generally less expensive than natural diamonds. This is because they do not require the same extensive mining and processing as natural diamonds. Additionally, lab-created diamonds can be produced in large quantities, which helps to keep the cost down.

However, it is important to note that the value of a diamond, whether natural or lab-created, is determined by the 4C's (cut, color, clarity and carat weight) and not by how it was formed. The 4C's are the standard measurement of a diamond's quality and value, so a lab-created diamond that is the same in terms of the 4C's will have the same value as a natural diamond.

Another factor to consider is that lab-created diamonds are becoming more popular, which means that there is a growing demand for them. This can help to maintain or even increase the value of lab-created diamonds over time.

It is also worth noting that lab-created diamonds can be a more ethical choice than natural diamonds. Natural diamonds are often associated with human rights abuses and environmental destruction, which can negatively impact their value. On the other hand, lab-created diamonds are made in a laboratory, which eliminates these negative associations.

In conclusion, lab-created diamonds may be less expensive than natural diamonds, but their value is determined by the 4C's, which are the standard measurement of a diamond's quality and value. As lab-created diamonds are becoming more popular, the demand for them is increasing, which could help to maintain or increase their value over time. Additionally, lab-created diamonds are considered a more ethical choice than natural diamonds. Therefore, it is unlikely that lab-created diamonds will lose value over time, and they may even increase in value.