Lab-grown diamonds are gaining popularity as an alternative to mined diamonds, particularly among engaged couples seeking more affordable options. Toronto residents Daniel Ng and Olivia Chan opted for a lab-grown diamond ring in 2024 due to the significant cost savings compared to natural diamonds. Experts note that lab-grown diamonds can be up to 90% cheaper than their natural counterparts.
The increasing affordability and availability of lab-grown diamonds are attracting more young couples to this option. However, a recent investigation revealed significant price disparities in the market, with identical lab-grown diamonds being sold at vastly different prices. For instance, a one-carat D-color, ideal cut, VS1 clarity, round lab-grown diamond purchased from Blue Nile cost $1,639.23, while a similar stone from Alibaba was priced at $228.86.
Industry analysts warn that such price gaps could undermine the credibility of the diamond industry. They attribute the varying prices to higher profit margins for retailers selling lab-grown diamonds and the economies of scale in diamond production, especially in manufacturing hubs like China and India.
Appraisers confirmed that despite the price gap, both Blue Nile and Alibaba lab-grown diamonds had the same quality and estimated retail value. The industry’s response to pricing discrepancies varied, with some emphasizing brand reputation and quality assurance, while others highlighted the challenges of setting uniform pricing guidelines.
Consumers are advised to research and verify the authenticity of lab-grown diamonds before purchase, considering factors like reviews, payment methods, and professional appraisals. As lab-grown diamonds become more affordable, industry experts predict that prices will align closer to wholesale levels in the future. Engaged couples like Chan and Ng emphasize the importance of informed decision-making and transparent pricing in the diamond industry.
