Lab grown diamonds actually represent better value than almost all natural diamonds. The vast majority of natural diamonds do not appreciate in value, there is just too many of them. The astounding difference in the price between lab grown diamonds and natural diamonds can only be explained in the difference of their supply chain.
Growing lab grown diamonds is not cheap! The cost for equipment and the very qualified workforce rival the capital needed for a substantial mining operation. Planning, cutting and grading the rough stones is virtually identical in both, natural and lab grown. So what makes the difference?
The price of natural diamonds is dictated by a long and opaque chain of fianciers and middlemen. Natural diamonds simply touch too many hands, each one expected to gain financially without adding real value.
Below weʼve illustrated the typical pipeline for a natural diamond through the value chain:
