HomeBusinessLab Grown Diamonds Are A Great Investment: Here's Why

Lab Grown Diamonds Are A Great Investment: Here’s Why

Following years of scuffle between mined diamonds and lab grown diamonds, the Federal Trade Commission, in 2018, announced the removal of the word “natural” from the definition of diamonds. The lab grown diamonds, that were considered synthetic by origin, were promoted to the stature of real diamonds by chemistry and by choice. 

From there on, the lab-grown diamond market has grown significantly. Pricing: the reason behind mined diamonds not being a popular choice among investors, was disregarded with the introduction of lab grown diamonds that typically are 40% cheaper than mined ones. 

However, that doesn’t fully describe why lab grown diamonds are a great investment option. The same socioeconomic reasons that made them what they are today are making them grow beyond expectation in the investors’ market. We’ll discuss them all, but let’s understand what lab grown diamonds are. 

What Are Lab Grown Diamonds?

Mined diamonds are naturally occurring polymers that are made from carbon. They are formed when carbon deposits formed deep within the earth are subjected to extreme pressure and temperature. While some natural diamonds form within a year or two, some take millions of years. 

On the other hand, lab grown diamonds are created in controlled environments, typically, in a lab through CVD and HPHT methods. A tiny diamond seed is cultivated until it grows and it is then cut and polished into loose lab created diamonds that can be used in jewelry.

Although they also are created from carbon, they don’t take nearly as much time as it takes a mined diamond to materialize—making them cheaper and more sustainable. Additionally, lab grown diamonds are more environment-friendly and safer to produce. Which only makes them more appealing to investors. 

Why Lab Grown Diamonds Are a Great Investment

They’re Less Expensive

Mined diamonds are way more expensive than lab grown diamonds. Due to that, it’s not a particularly appealing choice for diamond investors. Moreover, the mined diamond market has started to become saturated and is expected to even shrink in recent years. All of that is due to the rise of lab grown diamonds. 

The whole cost of the mining operation for diamonds increases with finding cheaper quality diamonds that can’t be sold as luxury items. That decrease in supply increases the price of brilliant quality mined diamonds—making them unreasonably more expensive than they should be. 

Lab grown diamonds are preferred by jewelry lovers and investors alike due to the low investment amount it requires to get started. With a price point of more than half of their mined counterparts, lab-grown diamond markets have boomed in recent years—making them enthralling to investors. 

Similar Properties With Mined Diamonds

Lab grown diamonds are quite similar to mined diamonds. Both in magnificence and chemical properties. If you were to judge a VSI mined and a lab-grown diamond with your naked eye, you would fail miserably. Only professional diamond technicians can differentiate between mined and lab grown diamonds with precise magnification tools.

The similar properties, that diminished the word “natural” from the definition, is also the cause behind lab grown diamonds being extremely popular among jewelry enthusiasts and investors. And as the demands for lab grown diamonds are expected to grow soon, the potential to make a profit through reselling the stones will also increase.

Unmatched Brilliance and Quality

Not all mined diamonds are created equally. Some of them have so many inclusions that they appear darker to the eyes and are used for industrial purposes. 

Lab grown diamonds are safer in this aspect. All the while they are safer to produce, they are similar in terms of clarity and quality to mined diamonds. As they are created in a controlled environment, they have fewer inclusions. The unmatched brilliance, clarity, and cut quality of lab grown diamonds make them a great investment.  

Ethical Point of Origin

The term “blood diamond” was coined in the 1990s when the rebel groups of central and west Africa exploited local miners to mine diamonds in horrific inhumane conditions to fund their movements.

After it became public knowledge, the United Nations put Kimberley Process in place to reduce unethical practices by tracking and certifying each diamond. Although it has significantly reduced the unethical diamonds from the world market, the process is yet to become foolproof, especially in countries like Zimbabwe. 

Lab grown diamonds don’t have blood on them. They are conflict free from the origin to the store. Although that doesn’t increase their prices directly, it increases the value of the diamonds to a great extent. This increase in value has fueled the demand for lab grown diamonds more to satisfy your needs as an investor. 

They Retain Emotional Value for a Long Time

Lab grown diamonds are forever. Even though they are created in a lab, their attachment to happiness, success, and love is similar. Therefore, they remain emotionally valuable to the wearer for a long time; whether as loose diamonds or as jewelry. 

Lab grown diamonds can also be an heirloom, just like natural diamonds. Sure enough, lab diamonds can withstand the test of time as it has a hardness grade of 10 on the Mohs scale of mineral hardness.

Much Less Environmental Impact

Mining diamonds requires heavy machinery and digging. In addition to contaminating the ground waters, diamond mining also weakens the earth’s surface—making it more prone to collapse during heavy rains and floods. 

Lab grown diamonds are much more environmentally friendly. Although they still require a lot of mechanical and electronic tools, those aren’t comparable to earth-moving vehicles used in diamond mining. Moreover, lab grown diamonds are also more sustainable for us—humans. 

Additionally, since the Millennials and Gen Z strive to minimize their impact on the environment, lab grown diamonds are a much better alternative for investment than mined diamonds.  

The Bottom Line

Hopefully, you’ve understood why lab grown diamonds are a better investment option for you than mined diamonds. All while being similar in physical properties, they are cheaper, more sustainable, and ethical. Moreover, they’re much more environment-friendly and retain value for a long-time.


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