What is the price difference between laboratory-grown and natural diamonds?

When shopping for a diamond, one of the most common questions buyers ask is: What’s the price difference between a laboratory-grown diamond and a natural diamond? The answer lies not only in their origin but also in how their value behaves over time.

Let’s break down the facts and help you understand what drives these price differences — and what it means for you as a jewellery buyer.

Understanding the Basics

At first glance, lab-grown and natural diamonds can appear identical — they share the same physical and chemical properties. However, their origin stories are vastly different.

Natural diamonds are formed deep within the Earth under extreme pressure and heat over billions of years. Lab-grown diamonds, by contrast, are created in controlled laboratory conditions in a matter of weeks.

These origins affect everything from emotional value to economic worth.

Natural Diamond Value Over Time

Natural diamonds are not just beautiful — they’re also finite. Because they are rare and cannot be replicated, natural diamonds hold and often increase in value over time. Decades of market data show that natural diamonds appreciate at an average of 3% per year.

This long-term growth in value is due to their scarcity and uniqueness. Just like an original Picasso painting, each natural diamond is a one-of-a-kind treasure — and that rarity is what helps protect its value.

Lab-Grown Diamonds: Falling Prices

On the other hand, lab-grown diamonds are mass-produced. While they are genuine diamonds, they are not rare, and their supply is virtually unlimited.

This has a dramatic effect on price. In 2016, a 1.5-carat lab-grown diamond cost around $10,000. Fast-forward to today, and that same diamond can be bought for roughly $1,000. That’s a 90% price drop in less than a decade.

Why? Because the price of lab-grown diamonds is tied purely to production costs, which have dropped significantly as technology improves and competition increases.

Why the Price Gap Exists

Think of it like this: A natural diamond is like an original Picasso — rare, irreplaceable, and growing in value. A lab-grown diamond is more like a print of a Picasso — it may look similar, but it can be reproduced endlessly and will never hold the same long-term value.

That’s why a natural diamond maintains — and even gains — financial and emotional significance over time, while a lab-grown diamond tends to depreciate.

What It Means for Buyers

If you’re choosing between a lab-grown and a natural diamond, consider your priorities:

• If you want a larger stone at a lower cost and aren’t concerned about long-term value, a lab-grown diamond may be right for you.

• If you’re looking for an investment piece, a family heirloom, or a symbol of enduring value, a natural diamond is unmatched.

Understanding the difference in price is more than just a matter of cost — it’s about what each diamond represents, both today and for generations to come.

Ready to explore your diamond options?

Visit Prins & Prins or book a consultation with our experienced gemologists. Whether you’re investing in timeless beauty or celebrating life’s milestones, we’ll help you find the diamond that’s right for you.