Diamonds are a timeless symbol of love and commitment, making them an important purchase. Like any significant purchase, thorough research is essential - especially when deciding between lab-grown and naturally sourced Diamonds.
Within this debate, it's important to challenge the misconception that lab-grown Diamonds are inherently more sustainable than natural ones, as this could be a costly mistake for both your wallet and the environment.
Misconceptions of Lab-Grown Diamonds
Currently, science cannot support the claim that lab-grown Diamonds have a neutral or positive environmental impact. Much like fast fashion, lab-grown Diamonds are mass-produced items making them cheap and rapidly decreasing in value. They can be manufactured in weeks or even days, in unlimited quantities, while a natural Diamond takes billions of years to form naturally within the earth.
Image courtesy of Vogue India of Lab Grown Diamond factory
Without transparent data on environmental impacts, lab-grown Diamond producers should not claim sustainable practices. Some companies engage in "greenwashing," using misleading information or faulty data to deceive consumers about their environmental practices.
Given the significant financial and emotional investment, it’s crucial for Diamond brands to help consumers differentiate between genuine environmental responsibility and greenwashing. Lab-grown Diamonds, despite how they have been marketed, may not be as eco-friendly or socially responsible as they seem.
Another common misconception about lab-grown diamonds is that they are identical to natural ones. However, verification tools can easily tell them apart, for example you can detect the distinct growth patterns of a three-week-old lab-grown diamond compared to those of a billion-year-old natural diamond.
Pricing Realities
The cost of lab-grown diamonds reflects their production scale and quality, lower upfront prices but significant depreciation over time. Analyst Paul Ziminisky notes that a consumer who spent $10,600 on a lab-grown diamond in 2016 could buy the same stone for just $2,445 in 2023, In contrast, a Bain & Co study reveals that natural diamond prices have increased by an average of 3% annually over the past 35 years.
Lab-Grown Diamond Inscription
Pricing structures for lab-grown and natural diamonds differ as well. The availability, size, and quality of natural diamonds are governed by geology, meaning larger stones are rarer and more expensive. For lab-grown diamonds, prices increase linearly by carat, depending on the production capacity of the manufacturer.
Rachel Smith, Head Valuer at Hatton Jewels commented, “In the current landscape, every business pays a similar wholesale price for lab-grown Diamonds, regardless of disparities in their retail market values. The wholesale price of lab-grown Diamonds can plummet to as low as 1% of their natural counterparts' value. While some companies uphold integrity by selling lab-grown Diamonds at fair market value, ensuring equitable competition, others exploit the situation for profit. Some retailers inflate prices by as much as 1200%, potentially driven by a desire to maintain the narrative that they are not different from natural Diamonds.”.
Environmental Realities
Lab-grown diamonds are produced using graphite and high-purity methane, sourced from gas, coal, and oil drilling. The machinery involved also relies on mined metals, raising questions about their environmental impact. The U.S. Federal Trade Commission (FTC) warns synthetic Diamond companies against making “eco-friendly” or “sustainable” claims without solid evidence, emphasizing the need for accurate environmental marketing.
Image courtesy of Vogue India of Lab Grown Diamond before treatment
Many consumers assume lab-grown Diamonds are sustainable because they don’t involve mining. However, this assumption overlooks the significant energy and material inputs required for their production. A report independently carried out by Trucost, and estimated carbon dioxide emissions at 160kg per polished carat of natural Diamond – the equivalent of driving 628km in a standard car. This figure is 69 per cent less per carat than synthetic diamonds, which require huge amounts of energy to produce in factories.
In contrast, major natural Diamond producers like De Beers Group and Rio Tinto are working towards carbon neutrality by 2030 and 2050, respectively. They are incorporating renewable energy and exploring innovative ways to reduce emissions, such as through the mineralization of kimberlite rock, from which Diamonds are mined.
Natural Diamond mining involves extensive planning and environmental oversight, with legal obligations for ongoing impact monitoring, community support, and land rehabilitation post-mining. This ensures that local communities and ecosystems can thrive beyond the mine’s operational life.
Image of natural Diamond before cutting
Furthermore, the natural Diamond industry, which supports nearly ten million people, is governed by initiatives like the Kimberley Process, a UN and WTO mandate that ensures ethical mining practices and protects the well-being of individuals in the Diamond supply chain. A report found that diamond mining from DPA members generated US$16 billion in socio-economic benefits. These included boosting local employment, providing more than 77,000 jobs and paying around 66 per cent above national average salaries, as well as contributing to government taxes and royalties and investing in infrastructure.
The Greenwashing of Lab-Grown Diamonds
In conclusion, while lab-grown Diamonds offer an attractive alternative due to their affordability and availability, it’s essential for consumers to fully understand their environmental and financial implications. Misconceptions about their sustainability and value may lead to unintended consequences for both the planet and your investment. Whether choosing lab-grown or natural Diamonds, being informed about the true environmental impact and long-term value is crucial for making a responsible and meaningful choice.
