In recent years, we have seen the rise of buying more lab-grown diamonds in the market. Lab-grown diamonds are not counterfeit diamonds. They have the same properties and quality as natural diamonds. However, it can be seen that the price of lab-grown diamonds is less than that of natural diamonds. You might wonder why that is. Well, here in this article we will go through the very same question which is why are lab-grown diamonds less expensive than natural diamonds. So let us get into it.
Significant Reasons for Lab-grown Diamonds Being Less Expensive Than Natural Diamonds
Down below are the reasons why the price of lab-grown diamonds is less than natural diamonds-
Recognition
Natural diamonds have always been held in high esteem due to their rarity. “God” is the one who created them. They developed under the surface of the earth. You can’t possibly draw comparisons between such a precious stone and one that was produced by humans, can you? In point of fact, proponents of natural diamonds think that no matter how hard we try, we will never be able to reach the same degree of accuracy as we can on natural diamonds simply because we are unable to get our hands on them. However, that myth was debunked decades ago when scientists manufactured the first lab-grown diamond.
There is very little, if any, discernible difference between a lab diamond and a natural diamond when examined by even the most experienced gemologists. It is all in the buyer’s head, and unless you make it clearly apparent that the diamond in question was created in a laboratory, it is quite easy for people to believe that they are purchasing a natural diamond. The amount of time required to create any of these diamonds is the sole thing that differentiates them from one another.
While the other takes just a few weeks, the first one takes billions of years to complete. The chemical structure is unchanged, the atoms and molecules are comparable, and the cut, when performed by an experienced cutter, produces the same brilliant shine. As long as people continue to have this view, the price of lab-grown diamonds will always be lower than that of natural diamonds.
Production Is Easier
Lab diamonds are created in a laboratory, just as their name suggests. The laboratory has chambers in which all of the essential components that are needed to generate a diamond stone are treated to the favorable circumstances that are required to produce a diamond stone. After just a few weeks, the stone will have completed its formation and will be ready to be carved. The intense heat and pressure that emanated from the center of the planet billions of years ago resulted in the formation of natural diamonds.
These circumstances make it feasible for those attributes to exist, and it is these conditions that gemologists have researched in order to perfect the process of creating lab diamonds. On the other hand, natural diamonds are located quite a distance below the surface of the earth. Getting the stone out of the ground requires a lot of backbreaking work and intricate machinery.
After it has been retrieved, it must first be sliced into tiny parts by an experienced professional using advanced machinery, and then it must be reassembled. It will have been more than a few months by the time the genuine diamond weighing one carat arrives at your location. The production of a lab diamond is just as costly as the production of a natural diamond, however, the production of a lab diamond takes a far shorter amount of time.
Natural Diamonds Get Hoarded
It is a well-known truth that key players in the business hoard diamonds in order to preserve their value, much as they do with other prized natural resources such as oil and gold. This practice is commonplace. When in reality, the opposite is true, people are led to assume that diamonds are incredibly uncommon.
Because of what they accomplish, there is a scarcity of these valuable stones on the market, which causes the demand to be higher than the supply and, as a result, drives up the price of these stones. If a buyer is ready, willing, and able to purchase the goods, they will be able to do so at whatever price the producer decides to sell them for.
Those who are unable to purchase at that price are excluded from the sale. As a result, their prices do not change much throughout the course of the year. However, this is no longer the case since laboratory-grown diamonds have successfully filled the vacuum. Hoarding is becoming more difficult as a result of the fact that it can be produced more quickly and with less effort.
Resale Value is at Minimum
Unfortunately, the present view and mindset in the jewelry business see lab diamonds as undesirable, and once they have been sold, no seller or maker would rebuy them again. This is because once lab diamonds have been sold, they cannot be repurchased. Because of this, their potential profit upon resale is always nil.
Even if you sold it on an online marketplace like eBay, you wouldn’t make more than a few cents on the dollar. As a result of this, a lab-grown diamond has what is known as “sunk costs,” which are expenditures that will never be recouped.
The reason for this is that no one will purchase a lab diamond at the same price as a natural diamond, and a natural diamond will, on average, keep at least 70% of its worth over the course of its lifetime. As a result, the price at which it is sold is lower. And despite the fact that technology is always improving, a lab diamond produced today will almost certainly be obsolete in the years to come as new diamonds of the higher grade will be developed in the lab using more advanced techniques.
