Last Updated on 1st April 2025
Lab-grown diamonds are real diamonds, just made in a high-tech lab instead of deep underground over billions of years. They are also called synthetic or cultured diamonds. They have the same optical, chemical, and physical properties as natural diamonds because they’re grown using advanced processes that replicate natural diamond formation, only much, much faster.
As such, a lab-created diamond is also graded according to the diamond 4Cs, just like a natural diamond. In this article, we will explore the ins and outs and a few peculiarities when it comes to evaluating a lab-grown diamond.
Many people appreciate that a lab-grown diamond has the same sparkle and durability as a natural diamond but comes with a lower price tag and a reduced environmental impact. Some consider lab-grown diamonds a sustainable alternative, and we will delve into the nuances of that topic in this article.
This guide will break down all the essentials of lab-grown diamonds, and most importantly, we will discuss the pricing dynamics of the rapidly evolving lab-grown diamond market.
What Are Lab-Grown Diamonds?
Lab-grown diamonds perfectly replicate all the properties found in natural diamonds. They have the same molecular carbon structure as a natural diamond. It’s a form of carbon that is odorless, tasteless, colorless, and has the highest thermal conductivity and hardness of any natural material. This means that a lab-grown diamond also has the same optical properties and will exhibit the same sparkle and scintillation as a natural diamond with the same cut quality. Lab-grown diamonds are real diamonds.
Please note that lab-created diamonds are entirely different from diamond simulants, such as cubic zirconia or moissanite. These are not real diamonds.
As of 2025, lab-grown diamonds are approximately 70%–90% cheaper than natural diamonds with the same 4Cs characteristics. This is their biggest selling point, but it also comes with downsides. The higher you go in carat weight the more significant the price difference. Check out this beautiful 1.56 CT lab-grown diamond and compare it to this 1.56 CT natural diamond. The price difference is striking! But the look is the same!
How are lab-grown diamonds created?
There are two main methods for creating lab-grown diamonds: High-Pressure High-Temperature (HPHT) and Chemical Vapor Deposition (CVD). Each technique mimics natural diamond formation but at an extremely accelerated pace.
High-Pressure High-Temperature (HPHT)
HPHT was the first method used to create lab-grown diamonds. It begins with a diamond seed, which is a small piece of an existing diamond or pure carbon. That diamond seed is placed inside a sealed chamber where it is subjected to extreme temperatures exceeding 2,700°F (1,500°C) and immense pressure of around 5–6 gigapascals. For reference, the pressure at the bottom of the Mariana Trench is only around 0.11 GPa. The same amount of pressure is also exerted several hundred miles below Earth’s surface, where natural diamonds form.
Then a carbon source is introduced into the sealed chamber, usually graphite. The carbon source melts, and the carbon atoms bond to the diamond seed. Over several weeks, the original diamond seed grows into a full-sized diamond.
Chemical Vapor Deposition (CVD)
CVD, or Chemical Vapor Deposition, is the most modern and currently the most widely used method for growing diamonds. Unlike HPHT, CVD diamonds are grown in a vacuum chamber:
A diamond seed is placed into the chamber, and a hydrocarbon gas such as methane is introduced. Microwave or laser energy is then used to heat the gas to temperatures of around 1,830°F (1,000°C), creating a plasma. This breaks down the methane gas, releasing carbon atoms that bond to the diamond seed’s carbon lattice.
Over weeks, carbon atoms accumulate on the diamond seed layer by layer until a full diamond forms. CVD equipment is less expensive, lighter and smaller than HPHT equipment, making it the predominant method for creating lab-grown diamonds today.
This was a brief overview of how lab-grown diamonds are created. If you are interested in even more details please read this in-depth article about the creation of lab-grown diamonds.
Lab-Grown vs. Natural Diamonds: What’s the Difference?
| Lab-Grown vs Natural Diamonds Comparison | ||
| Feature | Lab-Grown Diamonds | Natural Diamonds |
|---|---|---|
| Origin | Created in a lab using HPHT or CVD | Formed naturally deep underground over billions of years |
| Chemical Composition | Pure carbon | Pure carbon |
| Appearance | Identical if cut and clarity are equal | Identical if cut and clarity are equal |
| Certification | Mostly IGI, also GIA | GIA, AGS, IGI |
| Resale Value | Very low | Moderate, but still loses value |
| Environmental Impact | Mixed – depends on energy source used | Mixed – depends on mining practices |
| Price | 70–90% cheaper (as of 2025) | Much more expensive |
| Inclusions | May contain metallic or graphitic inclusions | Usually natural mineral-based inclusions |
| Investment Potential | Low – not recommended for investment | Still low, but better than lab-grown |
Since lab-grown diamonds are real diamonds, can any differences be spotted? The answer is Yes, but only by a trained gemologist using magnification. Lab-grown diamonds can still have inclusions. HPHT diamonds are associated with metallic inclusions, while CVD diamonds can have graphitic inclusions due to their different manufacturing processes. However, if a diamond is eye-clean, whether natural or lab-grown, it will appear flawless to the naked eye.
How are Lab-Grown Diamonds Graded?
Lab-grown diamonds are graded just like natural diamonds. The exact same factors are evaluated: color, clarity, cut, and carat weight. Once a lab-grown diamond is fully formed, it is sent to an independent gemological laboratory for analysis. The goal is to assess its overall quality and assign it a grading report that gives buyers confidence and transparency.
The most well-known labs for grading lab-grown diamonds are IGI (International Gemological Institute) and GIA (Gemological Institute of America). Both are reputable, but they handle lab-grown diamonds a bit differently.
GIA was slower to enter the lab-grown market. For a long time, they issued less detailed reports and didn’t include specific cut grades. GIA, which was founded in 1931 and is often seen as the traditional gatekeeper of diamond grading, didn’t quite see the lab-grown diamond revolution coming. Some would say they hesitated out of principle or pride. It must sting for the GIA establishment that IGI, once considered more commercial, is now the go-to grading lab for lab-created diamonds sold by major retailers like James Allen and Blue Nile.
| IGI vs GIA – Lab-Grown Diamond Grading Comparison | ||
| Feature | IGI | GIA |
|---|---|---|
| Most common lab for lab-grown diamonds | ✅ Yes | ❌ Less common |
| Provides full 4Cs grading | ✅ Yes | ✅ Yes |
| Cut, polish, and symmetry grades | ✅ Yes | ✅ Yes |
| Includes diamond production method (HPHT or CVD) | ✅ Yes | ❌ No |
| Uses D–Z color scale | ✅ Yes | ✅ Yes |
| Perceived grading strictness | ❌ Slightly more lenient | ✅ Generally stricter |
IGI grading reports are reliable and standardized. They provide color and clarity grades, as well as cut, polish, symmetry, and fluorescence details. IGI uses a D to Z color scale for lab-grown diamonds, just like GIA uses for natural ones, though IGI may sometimes grade a bit more generously in terms of color and clarity.
What matters most is that your lab-grown diamond comes with a grading report from a recognized gemological lab. This ensures you know exactly what you’re getting and allows for accurate price comparisons across similar diamonds. If you want to explore the differences between IGI and GIA more deeply or see a sample report, check out this article here.
Are Lab-Grown Diamonds Durable?
Yes, lab-grown diamonds are just as durable as natural diamonds. They share the exact same crystal structure, the same atomic arrangement, and the same score of 10 on the Mohs scale of hardness. This makes them the hardest naturally occurring material on Earth, whether they were formed over billions of years deep beneath the Earth’s crust or in a modern plasma chamber over a few weeks.
That means lab-grown diamonds are perfectly suited for everyday wear. Whether they are produced through HPHT (High Pressure High Temperature) or CVD (Chemical Vapor Deposition), the result is the same: a real diamond with the same atomic structure and hardness as one mined from the earth. Lab-grown diamonds resist scratching, heat, and general wear and tear just as well as natural diamonds. The durability factor is not reduced in any way just because the diamond was grown in a lab.
In fact, even expert gemologists cannot distinguish a lab-grown diamond from a natural one using only the naked eye or basic tools. It requires specialized equipment like photoluminescence spectrometers, Fourier-transform infrared (FTIR) spectroscopy, or DiamondView imaging, which can detect subtle growth patterns or trace elements not visible under standard magnification.
To put it simply, if you bump your lab-grown diamond ring against the side of a table, it will survive just like a natural diamond would. And no, it won’t “cloud” or “fade” over time either. That’s a common myth, likely confused with diamond simulants like cubic zirconia, which do lose their luster over time. But lab-grown diamonds are real diamonds and they’ll last a lifetime, or several.
So if your main concern is whether a lab-grown diamond will hold up, the answer is confidently yes. You can wear it, cherish it, and pass it down just like any diamond that came from deep underground.
Diamond 4Cs in lab-created diamonds
When it comes to the Diamond 4Cs (cut, color, clarity, and carat weight) there is no fundamental difference between lab-grown and natural diamonds. A lab-created diamond is still a diamond in every technical sense, and it is graded using the same criteria as its natural counterpart.
However, there are a few small things worth keeping in mind. For lab-grown diamonds, IGI (International Gemological Institute) is currently the most widely used grading lab. As mentioned earlier, IGI uses a slightly different scale when it comes to color grading for lab-created diamonds. While natural diamonds are typically graded from D to K, IGI extends the color scale from D all the way to Z for lab-grown stones. This doesn’t mean lab diamonds are more colorful, but it just reflects a broader range being reported. If you’d like to understand this in more depth, take a look at this article on diamond color for lab-grown diamonds.
As for clarity, the process of formation can leave different types of inclusions in lab-grown diamonds. HPHT diamonds may show metallic inclusions, while CVD diamonds are more likely to have graphitic or cloud-like inclusions. These differences are visible under magnification, but most buyers are focused on whether a diamond is eye-clean — meaning no inclusions are visible to the naked eye.
The rule of thumb remains the same: you want to choose a lab-grown diamond that looks flawless without a loupe. The good news is that many lab-created diamonds have high clarity ratings and can offer better visual quality for the price. If you want help evaluating that, check out this guide on diamond clarity for lab-grown diamonds, it breaks it all down in simple terms.
Do Lab-Grown Diamonds Have Resale Value?
One major difference however is the resale value of a natural diamond compared to a lab-grown diamond. In case you did not know if you buy a brand new natural diamond and try to resell it on the same day to a secondhand jewelry dealer they will pay you between 40% – 60% of the original price that you paid. While this may seem low, it is standard for the diamond market.
You can imagine secondhand jewelry dealers like money exchange houses. At the end of the day they have to make money buying and selling diamonds. Diamonds are high value items and it might take a significant amount of time to resell the diamond that they just bought from you to someone else.
Lab-grown diamonds, however, have little to no resale value. No company that buys diamonds from consumers will purchase a lab-grown diamond. Prices have been continuously falling for the past few years, and it is uncertain when they will reach a total bottom.
Thus, no such company would take the risk to buy a lab-grown diamond from you. Although clearly even natural diamonds are not a good investment. They roughly lose 50% of the total price that you paid right out of the gate but then at least they retain that value inflation adjusted for very long time periods.
The Environmental and Ethical Debate
Many potential buyers also like to buy lab-created diamonds as an ethical and environmentally friendly alternative to natural diamonds. This sentiment can be found particularly often among the Gen Z generation born between 1995 and 2010. However, the situation is not as black and white as it seems.
On the one hand traditional diamond mining has been linked to so-called blood diamonds, particularly in Africa. Workers from those countries may also face dangerous working conditions and indigenous communities might be displaced. Diamond mining can also generate toxic waste, it’s very water intensive, it involves high carbon emissions and it can lead to habitat destruction and deforestation.
On the other hand traditional diamond mining still supports the livelihoods of millions of people in Africa and even work conditions in lab-grown diamond production can be very bad and unethical in countries such as India and China. And as you have seen both HPHT and CVD diamond production are extremely energy intensive requiring large amounts of electricity. That energy mostly comes from fossil fuels which contributes to a large carbon footprint. A few companies might use renewable energies but you as the consumer have no exact way of knowing what energy source was used for your lab-grown diamond. The whole specialized equipment also creates a large footprint and waste.
There are good ethical and environmental arguments for both sides and in the end it depends on your decision and what you value most.
Prices of lab-grown diamonds in 2025
Let’s have a look at two comparable 2 CT diamonds. This beautifully cut natural 1.00 CT E VS1 diamond from James Allen will set you back 4,220 USD. Whereas this very comparable lab-grown 1.03 CT E VS1 diamond will only cost you 860 USD. That’s a price difference of 80%! If you look at them you will see that they look practically identical.
Let’s go to even bigger numbers. Have a look at this natural 4.03 CT G-VS1 diamond from Blue Nile. And then check out this lab-grown 4.03 G-VS1 diamond. There is no way you can spot any difference between them! But the natural diamond is 87,930 USD whereas the lab created diamond with the same diamond 4Cs characteristics will only set you back 6,460 USD! That’s a price difference of 92%! That is the current state of diamond pricing dynamics in the market as of 2025.
Prices for lab-grown diamonds have been dropping significantly over the past decade. This even put some pressure on natural diamond prices that have in turn also fallen slightly. Although lab-grown diamonds have been around for a long time they only began to become a thing in public consciousness when major retailers started selling them around 2016. At the beginning in 2016 they were only around 10% cheaper than natural diamonds but prices for lab-grown diamonds would drop between 15% – 30% per year ever since.
Now lab-grown diamonds prices have likely reached a stabilization point. Prices for lab-grown diamonds will still continue to fall but it will be at a slower rate. We can expect price drops between 5% – 10% per year going forwards in 2025. As McKinsey recently pointed out, the dramatic drop in lab-grown diamond prices is not over yet.
Eventually a total bottom will be reached where prices cannot go any lower for producers to stay in business. That could still likely be 50% cheaper from today’s already very cheap prices for lab-grown diamonds. That is exactly why no company specialized in buying diamonds from consumers would buy a lab-grown diamond from you. Eventually when a total price bottom will be reached the situation might change.
Buying Tips for Lab-Grown Diamonds
Buying a lab-grown diamond can be a very smart choice. You get the same sparkle and structure as a natural diamond, often at a much better price. But just like with mined diamonds, it pays to know what you are doing before you buy.
Start with the cut. It is the most important of the 4Cs because it controls how much the diamond reflects light. Even a flawless diamond will look dull if the cut is poor. Look for stones graded as Excellent or Ideal. This is where Whiteflash in particular shines, as they specialize in precision-cut diamonds.
Next is clarity. Most people do not need a flawless diamond. What really matters is whether the diamond is eye-clean. This means there are no visible inclusions without magnification. VS1 and VS2 are usually safe zones for clarity. Sometimes you can even find an SI1 that looks perfect to the naked eye if you choose carefully.
Color is another area where you can save if you understand what to look for. Lab-grown diamonds use the same D to Z color scale as natural diamonds. A color grade between D and F will look very white, while G and H still appear bright and clean, especially when set in white gold or platinum. Yellow gold settings allow you to go a bit lower without any noticeable warmth.
Always make sure your diamond is certified. IGI and GIA are the two labs you can trust. Certification ensures that you know exactly what you are buying, and it gives you a basis to compare prices fairly. Avoid diamonds with in-house grading or vague claims.
Stick with reputable vendors that offer high-quality images or videos, real-time support, and fair return policies. James Allen, Blue Nile, and Whiteflash are currently the most reliable sources for lab-grown diamonds in terms of both quality and service. These are the places where you can shop with confidence.
“The best diamond is the one that looks amazing to you and does not need to impress anyone else.”
— Your Diamond Teacher
Just one last point to be aware of. Lab-grown diamonds do not have strong resale value. They are not an investment, and that is okay. You are buying beauty and value, not a financial asset. If you accept that from the beginning, you will enjoy the process a lot more.
Is a Lab-Grown Diamond Right for You?
So, should you buy a lab-grown diamond? That really depends on what matters most to you. As you’ve seen, for most people it would be nearly impossible to afford a natural 4-carat diamond. That would be an enormous diamond, and the price tag is just out of reach for most buyers.
But if you go with a lab-grown diamond, something that once seemed impossible becomes realistic. Below are two diamonds that cost about the same, roughly 3,300 USD. Both have Excellent Cut, G-color and VS1-clarity. One is 1.09 carats and the other one is 2.78 carats. You can probably guess which one is lab-grown.
Do you want a one-of-a-kind piece of the Earth’s history, created under intense pressure deep beneath the surface over billions of years? Or are you happy with something that looks the same and has the same physical properties, but was grown in a lab in a matter of weeks?
When it comes to ethics and environmental impact, there are strong arguments on both sides. In the end, it comes down to what you value more. The choice is yours.
Our key takeaway
For a total price bottom lab-grown diamond prices still have around 50% more to fall from 2025 price levels although it will be at a slower pace than in the last decade. Going forwards we can expect price drops between 5% – 10% per year. If you are aware of that and of the fact that it will be virtually impossible to sell your lab-grown diamond then you still can get a much larger diamond for a fraction of the price of a natural diamond.
James Allen is our top recommendation for lab-created diamonds of all shapes and forms. They have the largest collection of lab-grown diamonds at the moment. As of March 2025 you could get a lab-grown diamond like that for a little over 2,000 USD:
We can also recommend Blue Nile for buying a lab-grown diamond. They also have a vast selection of lab-grown diamonds and a huge selection of ring settings to choose from. Last but not least Whiteflash is also a worth checking out if you are looking for lab-grown diamond with a particularly excellent cut as this is what they specialize in.