Lab-Grown Diamonds: Cheaper Sparkle, Smarter Buy Or Just A New Trend?

For generations, buying a diamond has meant buying a piece of nature.

That's changing now.

Today, a diamond can be grown inside a laboratory. It can have the same chemical composition and essentially the same physical and optical properties as a mined diamond. The difference is not what the stone is made of. It is where and how it was created.

And that difference can show up sharply in the price. 

Laboratory-grown diamonds can cost substantially less than comparable natural diamonds. In some cases, the price gap can be as high as 80-90 per cent, depending on factors such as size, cut, colour, clarity and the retailer.

But are they actually diamonds? How are they made? Are they sustainable? Will they hold their value? And, perhaps most importantly, is this the right time to buy one?

First, What Exactly Is A Lab-Grown Diamond?

A lab-grown diamond is not the same thing as an imitation diamond. Moissanite and cubic zirconia, for example, are diamond alternatives. They can look similar but are different materials.

A laboratory-grown diamond, on the other hand, is diamond. The difference is its origin.

Natural diamonds form deep inside the Earth under extreme heat and pressure over geological periods. Lab-grown diamonds are produced in controlled environments using advanced technology that recreates conditions needed for diamond formation. There are two main methods:-

• HPHT, or High Pressure High Temperature, replicates the high-pressure and high-temperature conditions associated with natural diamond formation.
• CVD, or Chemical Vapour Deposition, uses a diamond seed in a chamber filled with carbon-containing gases. Energy breaks down the gases and allows carbon atoms to deposit onto the seed, gradually forming a diamond crystal.

The stones can then be cut and polished just like mined diamonds. The Gemological Institute of America (GIA) says laboratory-grown diamonds have the same chemical make-up as natural diamonds, although their growth conditions leave identifiable markers that specialist laboratories can detect.

So, no, a lab-grown diamond is not a "fake diamond". It is a diamond with a different origin.

Why Are Lab-Grown Diamonds So Much Cheaper?

Natural diamonds are geological products. Their supply is constrained by what can be mined, where deposits are found and the economics of extraction. A laboratory, by contrast, can produce diamonds in a controlled environment. 

Technological improvements and increasing production have also made laboratory-grown diamonds more accessible. But consumers should not assume that every lab-grown diamond will automatically be 80-90 per cent cheaper than its natural counterpart. The actual difference varies considerably across stones and jewellery.

For shoppers, however, the attraction is obvious. The same jewellery budget can potentially buy a larger stone, a more elaborate design or several pieces instead of one.

Shyamala Ramanan, Business Head - beYon (from the House of Titan), told NDTV the laboratory-grown diamond market has now reached a relatively stable price point and does not expect dramatic price movements in the near term unless there is a significant technological breakthrough.

So, Should You Buy One Now?

If you are buying a diamond as jewellery, the answer may be simpler than people think: "The right time to buy is when you find a piece of jewellery you genuinely fall in love with," says Ramanan.

However, buyers must know that natural and laboratory-grown diamonds occupy very different positions in the market. A natural diamond has scarcity attached to it. A laboratory-grown diamond is manufactured. As production technology evolves, supply can increase.

Hence, looking at a lab-grown diamond purely as an investment may not be wise. Ramanan puts it bluntly: "We does not view laboratory-grown diamond jewellery as a speculative financial investment." Instead, she sees it as a way for consumers to enjoy jewellery more freely.

However, not all consumers may share her view. Mumbai-resident Tanni Mandal feels "the rarity and natural origin of a diamond give it a different kind of value." Talking to NDTV, Tanni said, "A natural diamond has a certain beauty and sheen that I personally feel is different from a lab-grown diamond. For me, the bigger thing is the heirloom value. Jewellery in our families is often passed down from one generation to another. If I am buying a diamond today, I would like to think that my children could wear it someday. Personally, I don't think I would feel the same way about passing on a lab-grown diamond."

What Should You Check Before Buying Laboratory-Grown Diamond?

Forget the idea that there is one perfect diamond. 

The traditional 4Cs -- cut, colour, clarity and carat -- still matter. But they should help you understand what you are buying, not turn the experience into a technical examination. Start with the basics:-

1. Is it actually a lab-grown diamond? Do not confuse it with a simulant. Ask the seller for clear disclosure of the stone's origin. The US Federal Trade Commission says laboratory-created diamonds should be clearly described as laboratory-grown or laboratory-created and should not be represented as mined diamonds.

2. Check the certification: A reputable grading or identification report adds another layer of confidence. The GIA, for example, offers specific laboratory-grown diamond assessments. Its reports distinguish laboratory-grown stones from natural diamonds, and eligible stones can carry a laser inscription identifying them as laboratory-grown.

3. Understand the growth method: Ask whether the stone was produced using CVD or HPHT. Neither method automatically makes a diamond "better". They are simply different production technologies.

4. Look at the cut: Carat size catches the eye. Cut determines much of the sparkle. A well-cut smaller stone can look more impressive than a poorly cut larger one.

5. Ask about treatments: Some laboratory-grown diamonds undergo post-growth treatment, including processes used to alter colour. This should be disclosed.

6. Understand the retailer's policies: Ask about warranties, repairs, upgrades, returns and future servicing. The relationship with the jeweller matters almost as much as the stone.

7. Do not forget the design: This may be the most important point of all. A diamond is ultimately being bought to be worn.

Ramanan urges consumers not to approach laboratory-grown diamonds with an overly rigid checklist. The most important consideration, she said, is choosing a brand that consumers trust and that is transparent about the product and supports them through ownership.

Are Lab-Grown Diamonds Really Sustainable?

This is where the conversation becomes complicated. It is tempting to say: lab-grown means green. That is too simplistic.

Growing a diamond in a laboratory still requires energy. The environmental impact can therefore depend on how efficiently the diamond is produced and where the energy comes from. Therefore, consumers should be cautious about sweeping claims that one category is automatically "better for the planet".

Ramanan takes a similar view. "What excites us about laboratory-grown diamonds is not a claim that one process is 'better' in absolute terms, but rather the human ingenuity behind creating this alternative sparkle," she said.

Can You Tell A Lab-Grown Diamond From A Natural One?

Not reliably with the naked eye. Because laboratory-grown diamonds share many of the same chemical and physical properties as natural diamonds, conventional visual inspection cannot reliably establish their origin. Specialist equipment and laboratory testing are used for definitive identification.

That is why certification and disclosure matter. GIA notes that sophisticated testing can identify the growth origin and that laboratory-grown diamonds can carry a laser inscription on the girdle. So, if someone tells you they can simply look at a diamond and know whether it came from a mine or a laboratory, be sceptical.

What About Resale Value?

This is perhaps the biggest question for buyers thinking beyond the sparkle. Neither natural nor lab-grown diamonds should be treated like guaranteed-return financial products. Retail purchase prices and resale prices can be very different.

But the issue is particularly important for laboratory-grown diamonds because technological progress and increasing production can affect market prices. A buyer should, therefore, enter the market with the expectation that the primary value of the jewellery is wearability and enjoyment, not future appreciation.

Could India Become The World's Jewellery Capital?

"Don't you think we already are?" Ramanan said when asked whether lab-grown diamonds could help India become the world's jewellery capital.

India, she pointed out, already has enormous structural strength in jewellery -- from craftsmanship and manufacturing to design innovation and a deep cultural love for jewellery.

Laboratory-grown diamonds, she said, simply add another dimension to that foundation. The country has a deep jewellery culture, skilled craftsmen, large-scale manufacturing capabilities and a strong diamond-processing ecosystem.

For a consumer with Rs 50,000 or Rs 1 lakh to spend, the choice that lab-grown diamonds provide is hard to miss. A bigger stone, a different design or simply the freedom to buy diamond jewellery without feeling that every purchase has to be a once-in-a-lifetime investment.

The diamond may be grown in a laboratory. But the reason for buying it remains wonderfully old-fashioned: You saw it. You liked it. You wanted to wear it.