When it comes to buying a diamond, one of the first questions most people ask is: Why do natural diamonds cost so much more than lab-grown ones? The answer lies in one powerful word—rarity.
At Prins & Prins Diamonds, we believe in empowering our clients with knowledge. In this article, we break down the key factors that influence the price of a diamond, focusing on the universally recognised Four Cs—Carat, Clarity, Colour, and Cut—and how they relate to a diamond’s rarity. We’ll also explore how these factors differ between natural and lab-grown diamonds, helping you make a more informed purchase.
Natural diamonds are formed deep within the Earth over billions of years, under extreme pressure and heat. Their journey from the mantle to your ring box is anything but ordinary. This geological miracle makes them rare—and rarity, as any economist will tell you, drives value.
In 2025, the average price of a 1-carat natural diamond is around $5,300, and a 2-carat diamond costs approximately $9,000. In contrast, lab-grown diamonds of similar size cost $1,000 to $1,200. So why the massive difference?
Each natural diamond is unique. The combination of the Four Cs determines just how rare—and therefore how valuable—it truly is.
The carat refers to the diamond’s weight, not its size. Larger diamonds are far less common in nature, which is why their value increases exponentially. A 2-carat stone isn’t just double the price of a 1-carat—it could be three or four times more expensive, depending on the other Cs.
Diamonds are formed under intense pressure, so most have internal marks (inclusions) or surface blemishes. The clarity grade measures how “clean” a diamond is.
A 1-carat diamond with G colour and SI2 clarity might cost around $4,000.
The same diamond, if graded flawless, could be worth over $8,000.
Diamonds are graded on a colour scale from D (colourless) to Z (light yellow or brown). The closer a diamond is to D, the rarer and more expensive it is.
Upgrading a G-colour diamond to D could increase the price from $4,000 to $6,000.
Fancy colour diamonds are in a league of their own: a 1-carat pink diamond can fetch over $100,000 due to extreme rarity.
The cut doesn’t just refer to shape (round, oval, emerald); it’s also about how well the diamond’s facets interact with light. While it has the least impact on price compared to the other Cs, cut still matters.
A well-cut round brilliant diamond tends to cost more because it requires more rough material and greater skill.
Unique or complex cuts can command a premium due to the artistry involved.
Lab-grown diamonds are chemically and optically identical to natural ones—but they are not rare. Their size, colour, and clarity can be manufactured in controlled environments and mass-produced.
That’s why their price reflects production costs and profit margins, rather than geological rarity.
So while you might pay $1,000 for a 1-carat lab diamond, it doesn’t carry the same intrinsic scarcity—or long-term value—as a natural diamond.
Understanding what you’re paying for helps you make smarter, more meaningful purchases. Whether you’re investing in an engagement ring or heirloom piece, it’s important to consider:
The uniqueness and history of a natural diamond.
The price and accessibility of a lab-grown alternative.
How rarity and natural origin can affect value retention over time.
At Prins & Prins, we offer expert guidance and access to ethically sourced natural diamonds and certified lab-grown alternatives—tailored to your taste and budget.