A report released earlier this year by Research and Markets revealed the global lab-grown diamond market was valued at over US$22 billion in 2022 and forecasted to grow to more than US$37 billion in the next five years.
“In just the past two years here we’ve seen a huge shift,” Nick Nielson, Polished Diamonds’ owner and designer, tells Verve. “While four or five years ago, lab-grown diamonds accounted for around one in 10 sales, now it’s almost 50-50. Given the current economic situation, buying a lab-grown diamond for nearly half the price of a natural one, and, for all intents and purposes, being the same if not a better option, is very appealing for many people.”
While naturally occurring diamonds are formed under unimaginable heat and pressure up to 200km beneath the Earth’s surface – with some being up to three billion years old – lab-grown diamonds are created in controlled conditions in as little as a few days. It’s done by taking a slither of an existing diamond, known as a ‘seed’, and introducing it to a heated sealed chamber filled with carbon-rich gas. Carbon atoms attach to the seed causing a new diamond to grow which is physically and chemically exactly the same as the ‘real’ thing.
“Lab-grown diamonds must be laser engraved and disclosed as being laboratory grown,” says Nick. “But once out on the street in a beautiful custom-made ring, there’s no difference in the actual gem, even to the trained eye.”
Nick uses the analogy of ice in our freezers being exactly the same as that in ancient glaciers: “It’s all ice which can be put in your lemonade. Lab-grown and natural diamonds are similar because the material is 100% diamond. So, lab-grown diamonds will not tarnish in time or look any different from those naturally made.”
Lab-grown diamonds are also billed as an ethical, sustainable alternative to the naturally occurring jewels – however, dig a little deeper and that’s not so clear cut.
“It takes a lot of energy to replicate the conditions required to make a diamond in a lab,” says Nick. “I won’t go into the politics, but some countries making lab-grown diamonds may not have the best clean energy practices. Therefore, saying a lab-grown diamond is better for the environment is not necessarily true.”
A report by the Diamond Producers Association even found that diamonds grown in labs may be responsible for up to three times the amount of greenhouse gas emissions than mined ones – however, it should also be noted that the association represents seven of the world’s largest diamond miners, including De Beers and Rio Tinto. And though there have been several lab diamond companies in the USA warned about their unsubstantiated eco-boasts by the Federal Trade Commission, the consensus appears to be that lab diamonds are a (perhaps only slightly) greener alternative to mined ones, rather than being an outright green choice. Much of the diamond mining industry is now arguably more regulated than the labs, which also makes data comparisons more difficult.
Also, the introduction of the Kimberly Process in 2003 has helped stem – though not eradicate – the trade in conflict (or blood) diamonds, allowing ethical diamond mines to provide relatively safe employment for local communities. Lab-grown diamonds may therefore indirectly rob these people of income.
“If you start to grow diamonds in a lab, you’re not only taking away a job, but you’re also closing down communities and closing down countries,” Urica Primus, who is from a mining family in Guyana, tells the Guardian. “How will miners survive, how will they sustain themselves, their livelihoods, their families?”
I ask Nick how he believes the industry will evolve.
“The interest in these diamonds has grown significantly, even in the past two years,” he says. “With higher demand, comes more people getting into the trade, and increasing supplies. At this point, I firmly believe they’re not a fad. But the machines to test if a diamond is lab grown is expensive. I expect technology to catch up on this and make it cheaper.”
As for whether lab-grown diamonds are a good investment, Nick says that the jury is still out.
“Currently, those tools to determine whether a diamond is lab grown are only owned by the top jewellery valuers. This is important to consider when purchasing a diamond. Our natural and lab-grown diamonds are internationally certified through companies like GIA or IGI and not just pulled from a warehouse somewhere.
“Natural diamonds have consistently increased in value and will continue to do so, but we just cannot currently be so sure about lab grown ones. Although, a lot of customers do say that they don’t plan on selling them anyway – which we don’t argue against.”
Alternate Gems
It’s not just lab-grown diamonds that are hitting the market – other precious gems are being manufactured and available, too.
“A great example of this is alexandrite,” says Nick. “This used to be June’s birthstone, but we found out that it is a lot rarer naturally than previously expected. A large, natural alexandrite can be more expensive than an average white diamond.
A lab-grown alexandrite – which is significantly cheaper – is a terrific option if wanting to own this beautiful gem.”
