We’ve been seeing a lot about “the diamond industry being threatened by lab diamonds,” so let’s jump right in:

PROs of Lab Diamonds:

– They are CHEAPER: Lab diamonds (aka CVD) cost 30-40% less than natural stones with comparable 4 C’s: Cut, Color, Carat, Clarity.
– They have the SAME ATOMIC MAKEUP: Meaning they look the same. A lab diamond will appear to be a real diamond to the naked eye – even to an expert.
– They LOOK AMAZING: Lab diamonds don’t have the same imperfections of a natural stone, and in general, come in around the F-VVS clarity level. That means that if no expert can test your piece at an event, no one will know the diamonds are lab-grown. You still get the same “social value” of wearing diamonds.
– They are MORE ETHICAL? Maybe… The argument FOR this is that mining is bad for the environment, and without mining, vulnerable populations won’t be exploited. Not all mining companies are evil, so this is a toss-up. Natural stones are a $4 Billion opportunity for the employees that mine stones.

CONS of Lab Diamonds:

– They have basically NO RESALE VALUE: Because there are no supply constraints and an endless amount of CVD goods can be produced, there is no argument to be made that this is a consumer investment. They are “social value only.”
– Emerging technology makes them DETECTABLE: When CVD was new, the goods were the ultimate life-hack because they could pass diamond testers. Now technology is emerging to detect CVD. Who wants their jewelry collection AND reputation to be labeled as “fugazi.”
– Probably NOT BETTER FOR THE ENVIRONMENT: While Lab Grown stones do avoid the carbon footprint produced by mining equipment, they still require TONS of energy to produce. There may not be any real environmental benefit over time.
That said, it’s a toss-up on the Consumer side. If you want to get the social value of diamonds at a discount, but don’t care about resale value – Lab is a great way to go. Just bear in mind that a GIA-certified diamond can and will hold it’s value, which makes that engagement ring an actual store of wealth.

For a Jewelry Business, you really have to be willing to draw a hard line for your brand identity.