Category Archives: Diamond

In a prior post I discussed the necessity of dealing with someone who you can trust.

In the course of my daily business I am sometimes the buyer of diamonds from one who has previously purchased a diamond.

Today I was presented with such a diamond. The owner/seller had acquired this diamond from a retailer in Philadelphia where my office is located. The owner/seller provided me with the opportunity to look at the diamond as well as the grading report that they were given at the time of purchase.

According to the paperwork, I assume that the purchaser thought that they were getting a good deal at the time of purchase. Upon looking at the diamond and grading it to “fair” and “proper” standards, the diamond was actually six grades lower than what the buyer/seller/owner thought she had acquired. The diamond was not a GIA certified diamond and was graded by a “fraudulent” grading lab.  The diamond was, in fact, worth only 32% of the value of what they thought they were buying!!

This true story is stated here just to reiterate the subject matter of my prior post on the subject of “Trust”.

Obviously, as should be learned from this brief story, there are those in the world who think that low price is all that matters – and who later ind out that they have been cheated.  More importantly, this brief story should reiterate the necessity of dealing with someone with a reputation for trust and integrity.

For as long as I can remember I have been recommending to any diamond buyer that they buy a diamond with a  GIA “certificate” or “diamond grading report”.  It has recently occurred to me that, while this recommendation my be second nature to someone like me who is involved in the whole diamond trade, the idea of a GIA “certificate” is a concept that is not familiar to the consumer diamond buyer.

The Gemological Institute of America (GIA) is the preeminent authority in determining the quality of a specific diamond. The GIA is an nonprofit educational institute which operates diamond grading laboratories in multiple locations around the world.

Although there are other laboratories that issue diamond grading reports, there are no other diamond grading laboratories or companies that have the same significance with regard to accuracy and respectability.   In fact, other diamond grading laboratories have been the subject of a major class action lawsuit among diamond consumers who alleged that they were defrauded when they purchased diamonds with a certificate that was, in fact, very inaccurate with regard to GIA quality assessment standards.

A GIA “Certificate” or “Grading Report” is a report issued by the Gemological Institute of America with regard to the specifications of a specific diamond. The report represents an  independent and professional assessment of a diamond’s specifications with regard to the actual carat weight, color and clarity of a specific diamond.

The information within the report provides specifications about proportions and other things that provide insight about the “Cut” of a diamond. The GIA has only recently begun issuing a grade with regard to the “Cut” of the diamond.*  Since 2005, the GIA has assigned a “Cut” grade only on round diamonds. Fancy shape diamonds, meaning all diamonds that are not a round shape, are not graded with regard to cut.

The GIA report records many aspects of a diamond’s specifications and scientific measurements which serve as “identification markers” of the diamond.  These “identification markers” identify and differentiate the subject diamond from all other diamonds. For this reason, the GIA report is a record of one specific diamond and thus becomes the “Certificate” for the diamond.

A “GIA certified diamond” refers to any diamond that has been submitted to a GIA laboratory and has been issued a grading report.  This report is in one of three formats.  It can be a full report which contains a diagram and plot of the diamond.  It may be a “Dossier” report which is smaller in size and is usually issued on diamonds which weigh less than 0.99 carats.  A newer report format is referred to as an “E-Report” as it refers to a diamond for which an electronic report is issued without a paper report.  This report, no matter which format, is referred to, interchangeably, as the “GIA Certificate” or “GIA grading report”.

A GIA report is not a statement of valuation. Diamonds of a similar GIA grade are not identical and are not necessarily of equal value.  There are many factors that determine the overall beauty and valuation of a diamond. For this reason, there can be significant valuation differences between diamonds of the same GIA grade.

With regard to diamonds that are not certified by the GIA, it is wrong to believe that such diamonds are less expensive than similarly GIA graded diamonds.  It is my professional belief that most diamonds that are sold without a GIA grading report are sold with inaccurate and exaggerated color and/or clarity grades at higher prices than would otherwise be realized with a GIA grading report.

An additional protection inherent in GIA certification is that the GIA will only offer a diamond grading report on a natural diamond. This eliminates the concern that the diamond may be a laboratory created “diamond” of significantly lesser value.  The GIA grading report will also note if the diamond has been subjected to any treatment or enhancement processes which, in most cases, will effect valuation.

Most diamonds that are sold at mass retailers or typical mall locations are not certified by the GIA.  The reason for this is that the diamonds sold in such stores are usually inferior in quality than that which is typically certified by the GIA.  Also, small diamonds used in jewelry are almost never certified by the GIA .

As I stated at the outset, I recommend that a diamond engagement ring buyer should purchase a diamond that has been certified by the GIA. The GIA diamond grading report provides essential information about the diamond.  A GIA certificate protects the buyer from “puffery” or exaggerated claims made by unscrupulous salespeople.  It protects against synthetic or lab grown diamond imitations as well as non-disclosed enhancements. The GIA report also serves as documentation and identification of the diamond that is useful to its owner with regard to insurance and other matters of ownership.

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For more information on the subject of the new “CUT’ grade, see:   “GIA’s new round brilliant cut grading system sheds light on diamond’s overall appearance”

What quality of diamond do I really need to buy?

If you expected an easy answer to this question I am sorry to have to disappoint you.

In everything in life, whether it is the purchase of an automobile or a house, we all start out with wanting our “dream” car or our “dream home”. In most cases, we make sacrifices when faced with the reality that our dream waterfront or mountainside home is beyond our financial reach. Such is life. And, in most cases, such is the search for the “perfect” diamond.

By this point in your search I assume that the reader is familiar with the Four “Cs” of a diamond: the Carat (weight), the Cut (this applies to shape as well as cut proportions), the Color, and the Clarity. Each of these factors significantly affects the “cost” of a diamond. This is true whether one is, like me, a wholesale dealer or a retail consumer.

The most significant factor of the “Four C’s” is the carat weight. Unlike going to a supermarket where one buys a 16-ounce (1lb) prime steak for $15.00 and a 32-ounce (2lb) prime steak for $30.00, the price of a larger diamond increases exponentially. For instance if a hypothetical 1.00 carat costs $10,000.00 that same diamond would cost approximately $20,000.00 if it weighed 1.50 carats. This diamond would cost approximately $35,000.00 in a 2.00 carat diamond. Conversely, this diamond would cost only about $4500.00 in a 0.75 carat diamond and a 0.50 carat diamond approximately $2500.00. The reason for this is twofold. On one hand, diamonds are priced per carat so the weight differential is part of the reason. On the other hand, each diamond is a rare natural gemstone and larger diamonds are much more rare than a smaller diamond.

As for the “Cut”, this is also a difficult factor to explain. It entails two different things. Firstly, there is the shape of the diamond – Round Brilliant, Oval, Cushion Cut, Princess Cut, Radiant, Emerald Cut, etc. There is also the factor of depth and table measurements and facet angles and other considerations. Because each diamond starts out as a “rough” diamond unearthed in a mine, the final price of a diamond is affected by the “return yield” of the rough diamond compared to the weight of the finished diamond. Because more rough diamond is lost in the cutting of a Round Brilliant diamond as opposed to all other shapes, a Round Brilliant diamond is usually the most expensive shape.

The final two C’s are much more esoteric and difficult to understand. These involve the “color” and “clarity” of a diamond. As previously stated, diamonds are a work of nature and each diamond is a unique creation. This being the case, diamonds can be absolutely colorless or they most likely will have some degree of “less white” or in some cases may have a slight or apparent tinge of yellow. It is believed that a whiter diamond is more beautiful than a diamond that has some tinge of yellow. For this reason, whiter diamonds are more expensive and more sought after than a more yellow diamond.

As for clarity, diamonds being the natural creation that they are, practically every diamond is naturally formed in a “less-than-perfect” molecular structure. If a diamond were a perfect molecular structure it would be a perfectly clear crystal. Although this is just a guess, I would say that this happens less than one-in-a–gazillion times. In practically all diamonds there is some kind of flaw or inclusion or imperfection – as is true with many things in life! Most diamonds are very much included and have many imperfections. It is the diamond that has very few and minor inclusions that become an engagement diamond (as opposed to being used for industrial usage).

In recent years, the Gemological Institute of America has established criteria that has become the cornerstone of diamond grading with relation the color and clarity of a diamond.

As you can see from the charts above, GIA grading terminology distinguishes twenty-three (23) grades of diamond color and assigns alphabetical color grades beginning with “D” through “Z”. The color “D” represents absolute white color with each subsequent color being slightly less white. Furthermore, GIA has assigned five general categories to its letter grades.

In its clarity grading system, GIA has distinguishes 10 clarity grades. These clarity grades range from IF (Internally Flawless) and continue though a continuum to “I3” (Imperfect, eye visible inclusions).

I do not mean to be disrespectful of the Gemological Institute of America (GIA) for I am a graduate of this esteemed institution. However if one considers all the possible combinations of GIA color and clarity grades there are two hundred and twenty (220) possible combinations of color and clarity. Diamond grading, in my opinion, is ridiculous and overdone.

As a consumer, one might think that there is a science to all this. One might also think that there are significant differences between each color grade and/or clarity grade. I can tell you as a fact that I have known of several diamonds that have been submitted to GIA and have received different grades on separate GIA reports. I had a recent experience in which the same diamond was submitted twice to GIA and received a grading combination that was three grades different in color and one grade different in clarity on the GIA grading report. The same diamond!! Yes, this is an unusual occurrence but it is true.

Sometimes I think the world made more sense when one purchased a diamond based on the “beauty” of a diamond as determined by one’s own eyes and the trust of the local established jeweler rather than on a piece of paper issued by a grading laboratory!

So, where does that leave us today? We are in a world where the consumer in many cases is not buying a diamond – they are buying a piece of paper. And we are also in a world where we all want the best of everything. So, naturally, when we are buying a diamond we go into this thinking that we must have a “D” color, ‘IF” or “VVS” clarity because that is the best (and we all want the best!).

Yes, a “D”-“Flawless” diamond is the best. And yes, a diamond with a color grade of “M-N-O-P” is going to be somewhat yellower in color than a “D” color diamond. Yes, a flawless diamond will be brighter and more sparkly than a diamond that has a clarity grade of “I2” or “I3”. But there are many grades in between “D”-“FL” and the lower parts of the scales that are exceptionally beautiful diamonds.

If you look again at the GIA grading scales above you will see that there are significant yellow tones in the higher alphabet letters that represent the color grades. You will also see that the difference between “D” color and “I” are, in reality, very subtle and insignificant. Although harder to see on this chart, the difference between a “J” color and an “M” color are much more apparent. And, believe me, I have seen some “M” color diamonds that are very beautiful and look white. In fact, if you knew what most people out there have in their engagement ring you might be shocked!

The same can be said with regard to the GIA clarity-grading scheme. Yes, there is a significant difference between an “IF” and an “I2” or an “I3”, but once again, look at the examples as provided on the GIA grading scale above. The difference between a ‘SI” grade and an “I1” or “I2” grade is much more significant than the difference between “FL” and “VS2”.

It should be remembered that diamond clarity grading deals with degrees of inclusions visible under 10X magnification. Obviously a flawless diamond (which as previously mentioned is a one-in-a gazillion) has no inclusions that can be found under magnification. But the differences, by definition, between “VVS” and “SI” is the difference between an inclusion that is “very, very slightly included and difficult to see” and “somewhat easy to see” under 10x magnification!! Yes, the “I1”,”I2” and “I3” grades are much different. These diamonds usually have inclusions that are seen without magnification and, in many cases (especially “I2” and “I3”), the inclusions affect the overall brilliance and sparkle of the diamond and these diamonds may be lifeless and not beautiful at all.

At this point it is necessary to look at this information in the context of price. A 1.00 carat “D-Flawless” Round Brilliant diamond is priced at approximately $27,500.00 on the wholesale diamond market. A 1.00 carat “F-VS2” Round Brilliant diamond is approximately $10,000.00. The same Round Brilliant 1.00 carat diamond in a “H-SI1” is approximately $7,500.00. FYI, this 1.00 Round Brilliant diamond in a “M-I3” grade is priced at approximately $1200.00!

To put these different prices into further perspective, recall the discussion above about the affect of the diamond size with regard to price. Quite simply, a “H-SI1” grade 1.00 carat Round Brilliant costs approximately $7500.00. The same grade diamond will cost $25,000.00 in a 2.00 carat diamond. To change it up a bit, a 1.00 “F-VS2” Round Brilliant diamond will cost approximately $10,000.00. It would cost approximately $38,000.00 in a 2.00 carat diamond! It should be noted that most diamond buyers tend to lower their quality “standards” as their desired size requirement increases.

Buying a diamond is a matter of balancing. One must balance size, color, clarity and – most importantly – price. I have many times looked at a prospective diamond buyer who comes in with “Pie in the Sky” requirements for what he or she “needs” and I have asked, “Who do you need to impress?”

A diamond is something that you buy for someone that you love. It is often purchased at the beginning of a long-term commitment that one makes as a symbol of one’s love and a commitment to another. Yes, you want to purchase a beautiful diamond. I would hope that you get good honest advice from a knowledgeable jeweler. But keep in mind that there are beautiful diamonds in this world that are not “D-IF”. Also keep in mind that your loved one and family and friends will not be using a magnifying glass when they admire your loved one’s diamond engagement ring.

For what it is worth, I get my diamonds for a wholesale price. My wife has a diamond that is an “I” color and “SI1” clarity.**  When I see it on her hand it is not yellow at all. Under normal circumstances, it has as much fire and brilliance as a “D” color, “Internally Flawless”. With forty-plus years of experience in the diamond and jewelry industry, I know it is a beautiful diamond but most importantly, she thinks it is too!!

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* * In the spirit of honesty and transparency, I have recently swapped my wife’s diamond for a new diamond. The original diamond was a round diamond that she received before we were married. Her new diamond is A Cushion Brilliant shape which is a “H” color and “VS2” clarity. If you read my posts you will see that my recommendations for round diamonds are somewhat different than my recommendations on fancy cut diamonds.     (05/02/2023)

** For a thorough understanding of diamond qualities, I encourage the reader to read the article “Diamond Quality Factors” on the GIA website. This is a link to “Diamond Quality Factors“.

For as long as I can remember in my 45+ years in the diamond and jewelry business, the most sought after diamonds in terms of GIA color and clarity grading has been “SI” (Slightly Included) quality diamonds. The reason for this is simply that a “nice” “SI1” or “SI2” clarity grade diamond often represents the best value in terms of the diamond’s appearance in relation to its price.

There are several caveats to this statement. Most importantly it is imperative when buying any diamond to buy a diamond that is graded by the GIA (Gemological Association of America). A GIA grading report (also referred to as a GIA Certificate) is the only diamond grading laboratory that is trusted and respected. All other diamond grading laboratories are BS! Yes, you read that right! The GIA is the ONLY diamond grading authority that is meaningful and accepted by those who are knowledgeable and respected in the diamond trade.

The SI (Slightly Imperfect) clarity grade is defined by the GIA as diamonds that contain “minor inclusions somewhat easy to see under 10x magnification” by a trained diamond grader in laboratory conditions. The “SI” clarity grade accounts for the majority of diamonds that are graded by the GIA.

“SI1” and “SI2” graded diamonds are the heart and soul of the diamond business. These are the most sought after grades in the industry by diamond dealers and traders as well as knowledgeable buyers. “SI” grade diamonds also represent the widest range of diamond quality within any diamond grade with regard to pricing and appearance. A “SI” graded diamond can be spectacularly beautiful or not beautiful at all – in other words “Ugly”!

Honestly, most “SI” graded diamonds are ugly. They contain inclusions that are visible to the eye without magnification. They may contain large black inclusions. They may contain multiple inclusions. They may have large ‘blob” like inclusions. They may have have “milky” or “dead” appearance because of the inclusions.

On the other hand, a diamond with a “SI” grade may be as beautiful and as brilliant and as “clean” as a Flawless diamond. This is indeed the rare “SI” graded diamond but this is what makes a diamond merchant’s life challenging . . finding that “SI” graded diamond that is exceptional because it represents the perfect “sweet-spot” of all diamonds. When found, it represents the perfect balance of diamond size and beauty and price!

The difference in price between exceptional “SI” graded diamonds and the other “SI” graded diamonds is significant. A beautiful “SI” graded diamond may be 50% or more expensive than an ugly “SI” graded diamond. Despite the “high” price of the top “SI” grade diamonds, this diamond will usually be priced significantly less than a “VS” grade diamond and will, in many cases, be as beautiful or perhaps more beautiful than a “VS” grade diamond.

The most important advice when buying a “SI” graded diamond is this: It is necessary to look at the diamond and not simply the diamond grading (GIA) report. After all, it is a diamond you should be buying and not a grading report!

For purposes of educating the consumer on the differences between “SI” graded diamonds, I will attempt to illustrate the differences by using images of actual diamonds and the corresponding GIA reports:

2.00 Round Brilliant GIA I/SI2 GIA *****16014

Retail Price $12,750.00

2.01 Round Brilliant GIA I/SI2 GIA *****49542

Retail Price $14,000.00

2.00 Round Brilliant GIA I/SI2 GIA *****16014

Retail Price $17,450.00

2.00 Round Brilliant GIA I/SI2 GIA *****00510

Retail Price $18,650.00

2.01 Round Brilliant GIA I/SI2 GIA GIA 2516343872

Retail Price $21,300.00

When looking at the diamonds in the photos above, it should be obvious to the reader that a GIA clarity grade is not the “tell all” when evaluating a diamond. This is true is all diamond grades with the exception of the “Flawless” grade. It is most noteworthy when evaluating diamonds in the “SI” range since, as previously stated, the “SI” grades have the largest ranges of appearances of all GIA clarity grades.

The diamonds in the top two photos are “UGLY” diamonds. These two diamonds contain large black carbon inclusions that will be obvious to the naked (non-magnified) and untrained eye. This is the reason that these two diamonds are priced at approximately 50% less than the other diamonds that are pictured.

To many people in the trade – and to most diamond buyers, the top two diamonds are not sale-able diamonds. Because of significantly low level of demand for these “ugly” diamonds, prices for these diamonds are very low in comparison to the other diamonds. In the world of diamonds, these ugly diamonds will get sold. They will be sold by unscrupulous diamond sellers who, like some consumers, believe that low price is all that matters! Also, these diamonds are sold by unscrupulous diamond sellers because their low price enables the reseller to make larger profits!

These low price ‘ugly” diamonds are also bought by unknowledgeable internet buyers for the reason cited above – they are low price items in relation to the others in online diamond listings and unknowing customers think they have beaten the system by buying a “cheap” diamond online. Such buyers do not understand the difference between low price and “value”.

The “service mark’ of my business – a business that is approaching its 100 year anniversary, is “The Right Diamond at the Right Price”. I mention that here because the top two diamonds above are certainly not the “Right Diamond”. At any price!

The middle diamond pictured above is a more typical GIA graded “SI2” diamond. It contains several inclusions which may or may not be noticeable to the non-magnified or untrained eye. This diamond will still be a nice and brilliant and scintillating diamond when set into a ring. Still, this diamond does contain inclusions that are located in the “table’ (center area) of the diamond which is something that I try to avoid when choosing the “Right” diamond. As you can see, this diamond is considerably more expensive than the the first two diamonds. It is also a much more sought after diamond by knowledgable and trustworthy diamond dealers and by most consumers.

The fourth diamond in the listing above is what I consider to be a “SI2(+)” diamond. The diamond does have several minor inclusions in the table area which some may find objectionable, however this diamond will be eye clean and should have great life and brilliance when set into a ring. It is my opinion that this diamond is certainly worth the 7% price difference of the prior diamond.

The final diamond pictured above is an exceptional “SI2” grade diamond. This diamond will have exceptional brilliance and life in a ring. This diamond will also look clean under magnification. This is a great diamond. It is the exceptional “SI2” grade diamond that a knowledgable diamond dealer looks at and says “Why is this an SI2?”. This is the diamond that I own in my inventory because this is “The Right Diamond at the Right Price”.

Getting back to the title question of this post – whether an “SI” (Slightly Imperfect) grade diamond is the “Right’ or a “Bad” choice when buying a diamond, the answer is “It depends on the diamond”. All diamonds are a unique creation of nature. Each diamond is different. I wouldn’t suggest choosing a wife based on a text description of what she looks like. I would hope that you at least see a photo or a video – but, to be sure, I would hope that you see her and know her before making such an important decision. The same is true about a diamond. It is a big investment in terms of dollars and a commitment hopefully for a lifetime. Be smart about it. A beautiful diamond is something you will look at everyday for many years!

Author’s Note: The diamonds above are shown with a retail price. Retail pricing will vary between different stores and regions and other variables. Prices for similar diamonds may be significantly less or more expensive depending on the reseller. Though these retail prices may differ, the pricing differentials based on qualities as shown above will be similar to those stated above as these prices are all based on actual wholesale costs.

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It has taken me a few years to write this post. As a wholesale diamond dealer with 45+ years of experience in the diamond and fine jewelry trade, I was not sure how to best answer this question when lab grown diamonds first started to appear on the world market. I had many questions.

• Are lab created diamonds as beautiful as natural diamonds?
• Would lab created diamonds be widely accepted by the diamond consumer?
• Would lab grown diamonds replace natural diamonds?
• Would lab created diamonds bring down the price of natural diamonds?
• Would lab created diamonds create an additional market that would coexist with natural diamonds?

After a few years of witnessing the development and growth of the lab created diamond market, I can finally address the issue of lab grown vs natural diamonds. However I cannot answer the subject title of this post. The answer is one that is very personal to the buyer for the reasons stated below.

A natural diamond is one of the wonderful and beautiful natural creations of nature. Mined from 150 to 200 kilometers deep in the Earth, natural diamonds (of the quality that are used in jewelry) are very rare. Natural diamonds have been cherished for hundreds years for their beauty and uniqueness and rarity- and as a symbol of love and marriage. Because of their uniqueness and rarity, natural diamonds are expensive and are thought to be a “store” of value and future price appreciation.

A lab created diamond is a man made simulated diamond that is grown in a laboratory environment. Unlike other simulated or synthetic diamonds of the past, lab created diamonds share the same chemical makeup as natural diamonds. Because of this, lab created diamonds are the same as natural diamonds in terms of their specific gravity. What this means is that whereas previous man made “diamonds” were easily distinguishable by their weight as well as other factors in their overall appearance, a lab created diamond will weigh exactly the same as a natural diamond.

To emphasize a point made above, natural diamonds are very rare! Natural diamonds are made by forces deep within the earth over a period that may take more than a billion years for the diamond to form. Estimates of a diamonds age range from a mere 90 million years to over 3.5 billion years! Because of the contrasting conditions of natural and lab grown formation, lab grown diamonds display several features which allow them to be Gemologically distinguished from natural diamonds.

As for their beauty, I must admit that lab created diamonds can be very beautiful and, in some cases, more beautiful than natural diamonds. Also I must state that I have seen many lab grown diamonds that are not nearly as beautiful as mined natural diamonds. Some lab grown diamonds display a brownish or grayish or bluish tinge which is not usually seen in natural diamonds.

A for my statement that lab created diamonds are more beautiful than natural diamonds, one must understand this is full context. A natural diamond and a lab grown diamond of similar GIA grading will be close in appearance as any two natural diamonds within the same grade. (See caveat about color tinges above). The reason for my comment is that most consumers who purchase a lab created diamond will purchase a lab grown diamond that is of a higher GIA grade than if they were buying a natural diamond. At 10% percent of the cost of a natural diamond, most buyers of lab grown diamonds can easily afford the difference in price between a high grade diamond as opposed to sacrificing quality in a natural diamond in order to meet their budget requirement.

Another factor affecting the beauty of lab grown diamonds is the fact that it may be easier to locate a beautiful lab grown diamond – particularly in “fancy shapes” – meaning all non-round diamonds. Beautiful fancy shape natural diamonds are more rare and are often more difficult to locate on the world market and consequently in retail stores. Lab grown diamonds, on the other hand, are readily available and more easily sourced at wholesale and retail levels.

As for my initial question about the “acceptance” of lab created diamonds, lab grown diamonds have made significant inroads into retail jewelry stores and consumer acceptance. To the retail jeweler, lab grown diamonds are more readily available and profit margins are likely to be significantly higher due to the lower product cost. To the retail consumer who is struggling to be able to afford a diamond in order to get engaged, a lab created diamond offers an opportunity to satisfy his partner with a bigger and nicer diamond than he would be able to acquire in a natural diamond.

To some, the justification for buying a lab created diamond is that it is a “greener” choice. The early marketing campaigns designed to interest consumers in lab grown diamonds focused on “sustainability” and “conflict-free”. I believe that these marketing “buzz words” serve as justification to one who is trying to justify the purchase of the lesser priced alternative. Some buyers choose a lab grown diamond because all that matters is “getting a ring” and they do not care about uniqueness or “natural” or long term value.

The fact of the matter is that lab grown diamonds are coexisting with natural diamonds. The prospective diamond buyer who frequents mall type operators such as Zales or Kay – the buyer for lower quality commercial grade diamonds and diamonds of 1.00 carat or less is more likely to acquire a lab grown diamond than the more affluent or more sophisticated buyer. Another likely buyer of lab grown diamonds is the customer who could afford a 1.00 carat – 2.00 carat diamond but wants to acquire a bigger size diamond.

Lab grown diamonds have had lesser impact at the higher end of the diamond market. The high-end and top quality diamond buyer has been non-receptive to the idea of lab grown diamonds.

It has been my experience that the natural diamond buyer is more traditional and more concerned with his own family history and traditions as well as his partner’s expectations. He understands the history and generational tradition of a diamond engagement ring. This buyer understands the uniqueness and rarity of a natural diamond. This buyer also believes that the acquisition of a diamond is an emotional and financial commitment to his future partner and feels that a natural diamond is “real” and that a lab created diamond is not the same.

So where does this leave us with regard to the title of this post, “Lab Grown vs Natural diamonds – Which to Buy?”. The answer is up to the buyer who must weigh these choices in relation to affordability and emotional considerations.

A lab grown diamond may be very beautiful. It may be a better choice than acquiring a natural diamond that is of a lower commercial grade. It is also a good choice when the primary objective is a large diamond with a limited budget. It is the right choice if this is what your prospective partner/girlfriend/fiancé/wife tells you that it is what she wants because the size of her ring is what is most important to her.

On the other hand, many diamond merchants and jewelers and many consumers compare lab grown diamonds to crypto currency or other “fake’ products. They are not “real” nor do they have any inherent or intrinsic value. I agree with this. However, I also understand that the lab grown diamond buyer is not interested in history or intrinsic value but simply in obtaining a beautiful and, in most cases, a bigger looking ring. If this is the objective, a lab grown diamond may be a good choice.

To others, the process of acquiring and owning a natural diamond is something that is steeped in pride and tradition and history. A diamond is a once-in-a-lifetime purchase. It is an financial and emotional acquisition that shows an emotional commitment and promise.

There is no right or wrong in the choice of lab-grown vs natural diamond. It is entirely a personal decision. In either case, the acquisition of a diamond engagement ring is the act of acquiring something beautiful that you and your partner should be proud of and that you will look at and admire for many years – hopefully for a lifetime.

* The lab-grown diamond boom is over, jewelry industry experts say. 

* Lab-grown gems are mainstream now and real diamonds are back in vogue, analysts told Business insider.

* Prices for lab-grown diamonds are likely to tumble amid a glut of supply. 

The man-made diamond boom is over, and prices for ultra-trendy lab-grown diamonds are set to tumble this year, industry veterans say.

Paul Zimnisky, a leading diamond analyst, foresees jewelers scaling back their business in lab-grown diamonds while ramping up their focus on natural diamonds over the next year. In fact, most jewelers aren’t even bothering to stock lab-grown diamonds in inventory, and are only purchasing them on consignment, he told Business Insider. 

It’s the exact opposite of what jewelers have been doing since 2018, when the hype for lab-grown diamonds took off. 

“Some of the fad is starting to fade a bit,” Zimnisky said, pointing to lower-priced retailers like Walmart and Pandora, who have started to “aggressively” push lab-grown stones. “I think it’s become a lot more mainstream.”

Prices for lab-grown diamonds will continue to fall over the next year, he said. Ziminsky didn’t have a price target, but said he believed loose lab-grown diamonds could see nearly the same price decline as they did in 2023, which the jewelry analytics firm Tenoris estimated to be about 20% in the 12 months leading up to November. 

Cormac Kinney, the CEO of the commodities trading firm Diamond Standard, believes the plunge could be even steeper as the hype over lab-grown gems fades. Man-made diamond prices could ultimately drop another 50%-80%, he estimated. 

“Fashion jewelry is always worth a small fraction of real jewelry,” Kinney said. “Only real is rare.”

Man-made fad

It’s not hard to imagine why man-made diamonds were so popular last year. Even A-list celebrities like Emma Watson and Meghan Markle have been known to buy lab-grown jewelry — they’re cheaper and basically identical to the naked eye. 

“It was basically a manufactured version of one of humans’ most valuable and natural resources,” Zimnisky said of lab-grown stones. “It basically allowed consumers to buy a diamond at really affordable prices that allowed consumers to buy very large diamonds that would cost hundreds of thousands of dollars if they were natural diamonds.”

But some of the shine behind lab-grown gems has diminished, largely because they’re so widely available. Lab-grown diamonds now make up around 20% of the total diamond market, Zimnisky estimates, up from nearly zero percent in 2015. 

Sales of lab-grown diamond jewelry soared 51% in the 12 months leading up to November, while sales of loose lab-grown diamonds grew 47%, Tenoris data shows.

But prices for lab-grown diamonds have actually been declining since 2015, the year they first started to become mainstream. Back then, a man-made diamond was priced at around a 10% discount to a natural diamond. Today, they’re priced at a 90% discount, Zimnisky estimates.

“I think people kind of just bought it, and they thought, ‘you’re the only one with a three-carat diamond. But … if you go to a wedding these days, you’re just looking at people’s engagement rings, there’s a lot of three-, four-, five-carat diamonds and it’s become ubiquitous,” Zimnisky said. “I think now you might actually start to see the opposite happen, where people are like, I just want a smaller natural diamond.”

“A synthetic diamond is not the same as a natural diamond,” Kinney added. “Any gem lab can tell the difference, and your friends probably can too — especially if the diamond does not match your economic status.”

That doesn’t mean demand for lab-grown stones will disappear, and the gems will surely still hold appeal for some buyers, but sales will likely grow at a slower pace. Zimnisky estimates that sales growth could fall as low as a single-digit percentage this year, down from the 20%-30% growth when lab-grown diamonds were at the peak of their popularity.

In fact, lab-grown stones will probably no longer be seen as an alternative to owning a bonafide diamond. Rather, they’ll segment off into a different, lower-priced market for those who don’t want to buy the real thing, or will one day upgrade to a real stone, Zimnisky and Kinney said.

And as for people who have already bought lab-grown stones? You’re probably stuck with them. According to Kinney, pawn shops likely won’t even pay 10% of what customers paid for any synthetic diamond — even diamonds above one carat. 

“Jewelers tell me that a growing number of couples are coming one to three years into a marriage and replacing a synthetic stone with a smaller but real natural diamond,” Kinney said. 

**The above content is a repost of an article published on February 18, 2024 in Business Insider written by Jennifer Sor.

NDR Diamond Grading Chart

Investment Grade

Investment Grade consists of those diamonds typically purchased for long term investment. Diamonds within this category are typically colorless (DEF color) and Flawless or near flawless (IF to VVS).  As with most things in life, the “BEST” and “RAREST” of anything is thought to be of “investment grade” because of their future potential for appreciation.  Diamonds that fall within the DEF/IF-VVS parameters are very rare are are sought after for this reason.  And, yes, a diamond that falls with these parameters will usually be exceptionally beautiful –  (assuming it has a good cut! – See Blog posts dealing with Cut)

Fine Grade

Fine Grade consists of diamonds that are exceptionally beautiful. Typically diamonds that are within the color range of DEFGH and clarity range of VS2 and better are considered fine.   I often use Tiffany & Company as a standard when speaking of Fine Grade diamonds as Tiffany adheres to a quality level that deserves respect throughout the diamond industry.   Tiffany & Co.  sells engagement diamonds that are of color grades ranging from “D” to “I” and clarity grades ranging from “VVS” to “SI1” clarity.  A “top” SI1 clarity will often be a “Fine” grade diamond.  There are also some SI2 clarity diamonds that may be considered fine, depending on the size, type and location of the inclusion.

Nice Grade

Nice Grade is characterized as a diamond that will appear to be white and brilliant and lively when used in a diamond engagement ring. Though considerably less expensive than diamonds in either the “Investment” or “Fine” grades, to the normal human observer in “real life” conditions (as opposed to laboratory environments) there is often very little difference in the overall appearance of a “Nice” diamond when compared to one of the top categories. 

Unlike the top two grade levels, this grade level may be a sliding scale within itself. For instance, an “I/SI1” diamond is still in many cases an exceptionally beautiful diamond.  On the other hand, a “K/SI2”, which is positioned near the end on the linear chart within this grade, is going to be somewhat less beautiful – but, in many cases, may still be a “Nice” diamond.

Furthermore, with respect to all categories, it should be noted that any combination of a “higher” color grade or clarity grade is more desirable and more valuable – (Read: Nicer and More Expensive!).  For instance, an “E” color and “SI1” clarity is often exceptionally beautiful and is considered a “Fine” diamond!

Commercial Grade

Commercial Grade diamonds are primarily sold in chain stores and Mall jewelry stores.  These are usually diamonds that are sold to “unknowing” mass-market consumers who know or care little about the beauty of the diamond they are buying.  Often times it is the “store credit” or other financing terms that motivates this buyer instead of the diamond.

It should be noted that a lower color/high clarity diamond such as a M/VS2 or a high color/lower clarity such as a F/I1 may be nice and pretty diamonds.  However, for the most part, diamonds within the color and clarity ranges noted within the Commercial grade section of the chart above will, in most cases, be significantly less beautiful than those in the top three categories.

Ironically, these diamonds are often not “cheap” with regard to pricing and represent “bad value” to the consumer.  Although sold at an “attractive retail price point” by mall retailers and chain jewelry stores, these diamonds are usually not cheap for what  they are.  More importantly, regardless of price, diamonds within the Commercial grade are usually not beautiful diamonds!

Garbage Grade

Garbage Grade  – The name says it all! There is no reason to purchase on of these diamonds except a “Price Point”.   And even then, the price may be low but you are getting nothing in return for the price.  A diamond is supposed to be something that is beautiful and something that will be worn and enjoyed. This is not that!