The Economics Behind Cost of Artificial Diamonds
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Time to read 6 min
Thorough cost examination of artificial diamonds
As consumers continue to look for an alternative to mined diamonds, the artificial diamond cost becomes more and more relevant in society.
- Artificial diamonds, also known as lab-grown diamonds or synthetic diamonds, are an answer to the beautiful diamond with a more economical, ethical, and sustainable option. As the technology developed to create these diamonds keeps evolving, the lab-created diamonds have dropped tremendously in prices. Here in this article is a comprehensive exploration of the determinant factors of the cost of artificial diamonds, which they have become quite popular among couples for their engagement rings and other fine jewelry.
What Are Artificial Diamonds
- Diving directly into the pricing of artificial diamonds would be interesting to note what an artificial diamond is. Artificial diamonds are diamonds that have been created in a laboratory, using sophisticated technological processes that would mimic the natural conditions under which diamonds come into being in the Earth. Two major methods are used to producing lab-grown diamonds-the High Pressure High Temperature (HPHT) method and the Chemical Vapor Deposition (CVD) method. These two forms of production give diamonds that seem chemically, physically, and optically identical to their natural counterparts, but in fact, they are made within no time.
The type of artificial diamond that has been bought most often in the market today would be those produced via CVD method.
- This method includes discharging some gas into a chamber that is ionized to produce carbon atoms, which link to form diamonds. The HPHT method, on the other hand, reproduces extreme pressure and temperature conditions in order to simulate the environment deep in the earth at which diamonds form.
Factors Influencing the Cost of Artificial Diamonds
- All of these factors combined dictate the price entail that there are definite factors which influence lab-grown diamond costs. Some of these factors include those which originally used to cause a price hike in natural diamonds, and others are unique to laboratory diamonds entirely. Below are the price determinants very important to focus on concerning artificial diamonds.
Size and Weight of Carat
Size of diamond is among the most important factors that determine the cost of a diamond; larger diamonds attract more time and energy to create them compared with smaller stones, and it is directly related to the carat weight. In general, the larger the diamond, the higher the price.
Cost of Artificial Diamonds tend to be cheaper than natural diamonds of similar size for the obvious reason that they are made under controlled conditions. Yet the larger the lab-grown diamond, the more expensive it becomes because of the resources that go into its growth.Diamond Cut and Shape
Cut is a word that refers to how well the diamond has been shaped and faceted. Well-cut diamonds tend to show more brilliance, fire, and scintillation as compared to poorly cut diamonds. The most salient point concerning the diamond is that the cut will determine the price at which the diamond will sell in the market.
Usually, the shape of the diamond also determines price. Some of the various shapes include round, oval, princess, emerald and cushion. Round diamonds will tend to be the most expensive, especially given the high tolerance level needed during cutting, while other shapes may be less expensive owing to the reduced amounts of rough diamond material needed.
Color and Clarity
- In the case of artificially produced diamonds, similarity to the mined diamonds also holds a good color between it and clarity up to the price set on it. Colorless diamonds rank from D to Z at the end of light yellow or brown. The more colorless a diamond is, the higher price value it has.
Thus, it only follows that clarity, which lacks internal or external flaws, refers to the presence of inclusions on interiors and blemishes on the surface. A diamond will thus be of higher price if it has very few flaws. These lab-grown diamonds are like the naturally occurring ones and are graded from independent gemological laboratories for their color and clarity.
Laboratory and Certification
- Emergence from a particular laboratory directly affects its cost; that is why they can establish a price. Reputable labs such as Gemological Institute of America (GIA) or International Gemological Institute (IGI) take it a step further to certify that the diamond is indeed of a particular authenticity, color, clarity, and cut. Diamonds being able to boast of such added security cost more than non-certified ones.
Branding and Retail Markup
The related brand of the diamond becomes an additional factor that would add to the cost. Very established jewelry brands selling only lab-grown diamonds would usually raise the prices of their products due to this reason. The retail markup is stacked on top of the prices multiplied by the jeweler. One has to add the wholesale amount of the diamond to the retail mark-up to know the final price.
Cost of Artificial Diamonds on Average
Artificial diamonds typically fall in the range of 20-40% of the cost of mined diamonds, and pricing will continue to vary based on the factors discussed earlier.
- A lab-grown diamond would fall in between $1,000 to $12,000 on average, or even above, depending on the various parameters of size, cut, and color, as well as from clarity.
To give an example:
A lab-grown diamond weighing one carat with good cut, color, and clarity may cost from $1,000 to $4,000.
A 2-carat diamond of the same quality might range anywhere between $3,000 and $8,000 for the lab-grown variant.
A lab-created 3-carats diamond could be priced from $7,000 to $12,000.
By far, these amounts do not represent the natural diamond costs, which can go as high as $10,000 and over a single carat with those same specifications.
Benefits Attained by Artificial Diamonds Over Natural Diamonds
There are many good reasons to prefer artificial diamonds over the natural variety, beyond their lower price.
Sustainability
- Environmental advocacy causes are actually the primary reason for the choice of artificial diamonds. Natural diamonds have a hand in deforestation, destruction of ecosystems, and pollution. In contrast, lab-grown diamonds have a minor environmental footprint; thus, they make a more viable choice among many consumers who have gone Eco-friendly.
Ethics
Mined diamonds are much more expensive than the manufactures of artificial diamonds when it comes to ethical issues. Many human rights violations have also been associated with these precious stones, including child labor and deadly working conditions. A lab-grown diamond would be one choice in which no man has ever been afflicted in crafting the precious jewel.Quality Guarantee
Laboratories have a successful mechanism of producing synthetic diamonds with the aid of pure science and physics. These diamonds possess some final qualities that characterize a diamond. Compared to natural diamonds, these diamonds are produced in a more controlled environment when it comes to flaws. Apart from that, lab-grown diamonds are usually tested and certified by credible gemological institutes, ensuring quality and everything else.
Conclusion
- It is size, cut, color, clarity, and certification that define the price of artificial diamonds. Lab-grown diamonds are available at comparatively low prices. They are cost-effective, easy to find, and ethically better than earth-mined diamonds. As technology advances, this price of man-made diamonds will fall further into consumer prices and capture the attention of more consumers who are looking for jewelry that is high in quality and low in price. Lab-grown diamonds are appealing values in every purchase, be it for an engagement ring or something special.
Lab Diamond Earrings Sustainable Brilliance
FAQ
Natural diamond make up approximately 40-50% cost difference as compared to created diamonds.
Generally, the price of the lab-grown diamond is $1500 to $3000 for 1-carat diamond. While for a similar natural diamond, range would be $5000 to $7000.
Why are laboratory-created diamonds so much less expensive than mined diamonds?
Unlike rocks that take millions of years to form into diamonds under the earth's crust, these diamonds are synthesized under laboratory conditions in weeks. Straightforward factory goods and low operating costs save them huge margins.
What are the prices of lab-made diamonds?
Synthetic diamonds become the price more depending on the combinations of the 4C's: cut, clarity, color, and carat. Typically, including the reputation of the manufacturer, certification, and even the technology with which it made, will affect the cost of the synthetic diamond.
How much does a 2-carat synthetic diamond cost?
A 2-carat lab-created diamond typically falls anywhere between $5,000 to $8,000 depending on its quality characteristics. This means a huge price reduction compared to natural 2-carat diamonds, which can start from $20,000 onward.
What is the average price of lab-grown diamond engagement rings?
Lab-grown diamond engagement rings priced at around $800-$1,500 are for those with simple settings for smaller stones (0.5 carats). Premium designs with larger stones can be priced around $3,000-$10,000 above.
Does an artificial diamond keep its value over time?
Lab-created diamonds, generally speaking, do depreciate more than authentic diamonds. While they are advantageous most of the time upon purchase, such people should perhaps think of such an investment as more of a personal buy for enjoyment rather than an asset for investment purposes.
