Diamonds have long been seen as a poor investment due to their inability to retain value over time and being harder to resell than natural diamonds.
Many are turning to budget lab diamonds for this reason, but they may not be the right option for everyone.
1. They’re not rare
Consider lab diamonds to be man-made replicas of lab-grown diamonds UK that are mass produced. Unfortunately, they lack the same rarity or value as natural diamonds do and do not have a secondary market like natural diamonds do. As such, their value does not continue to increase over time.
Diamonds are not sustainable, as the process of production requires far more energy than natural diamonds do. According to a report by the Diamond Producers Association, mining natural diamonds emits less greenhouse gas than growing them in an artificial laboratory.
Thankfully, the lab diamond industry has taken steps to make its products more eco-friendly. One way they do this is by employing boron during growth process which disinfects water sources and makes them safer for use. Furthermore, they reduce their environmental impact through recycling practices.
2. They’re not sustainable
When purchasing lab diamonds, it’s essential to consider their environmental and social impacts. Many lab diamond manufacturers claim their stones are sustainable, but it’s essential to know where they come from.
Diamond mining requires an immense amount of energy and water, leading to significant carbon emissions.
Furthermore, diamond mining can have a detrimental effect on both the environment and communities that depend on it for livelihood.
When considering purchasing a lab diamond, be sure to find an established jeweller who only sells lab-grown diamonds from ethical and environmentally friendly sources. If you’re concerned about your carbon footprint, some lab-grown diamonds even use 100% renewable energy!
3. They’re not eco-friendly
As you likely already know, the diamond industry causes considerable environmental harm. Notable effects include deforestation, land erosion, water pollution and carbon emissions.
Furthermore, mining destroys delicate ecosystems such as wildlife and lakes – especially in regions with high levels of poverty.
However, many diamond mining companies have taken steps to minimize their environmental impact. Lab-grown diamonds do not create waste like mined ones do, though they do require energy that may not always be renewable.
4. They’re not expensive
Lab diamonds may be cheaper than natural ones, but they do not always provide the same resale value. This is because natural diamonds tend to retain their value better.
Lab diamonds can be more cost-effective if you don’t require an oversized stone. On average, lab-created diamonds cost 30-40% less than mined ones.
Over the past couple of years, the cost to produce lab diamonds has dramatically declined. Due to increased competition in this space, production of lab diamonds with CVD technology is now 10x cheaper than before.
As more companies enter the market with better technology, prices will continue to decline. De Beers entered into the market in 2018 and was able to reduce lab diamond prices to one-fourth their mined counterpart.
In summary, lab-grown diamonds may not be a good investment for those looking for long-term value due to their lack of rarity and inability to retain their value over time. While they are more affordable, eco-friendly and ethically sourced than natural diamonds, they do not have the same resale value or secondary market. Additionally, the production process of lab-grown diamonds can also have environmental impacts, especially if not sourced from sustainable and ethical sources. Furthermore, natural diamonds are often seen as more valuable due to their rarity and history, making them a better option for those seeking long-term investments. Ultimately, whether or not a lab-grown diamond is a poor investment depends on one’s personal values and priorities. It’s important to consider all the factors before deciding which type of diamond to purchase.