Diamond evolution
Photo courtesy of Chatham Inc.
Evolution is happening, right now, in the diamond market. Yesterday's diamond choices are not today's, yesterday's valuations are not today's, and yesterday's consumer attitudes are not today's.
A dozen years ago, jewelers could say lab-grown diamond (LGD) isn't real diamond. Many retailers refused to carry LGD, insisting that consumers wanted "real diamond." Consumers were wary of gems made in a lab—or hadn't even heard about them.
Today the "real diamond" debate is decided. Diamond made in a lab is chemically, physically and optically the same as mined diamond. The only difference is how it grew. As one wag online commented, Saying that LGD is not real diamond is like saying an IVF baby is not a real baby.
What ultimately energized the market evolution is a simple marketing fact: consumers will buy price. Lab-made diamonds sell for 10-40 per cent the price of mined diamond. These days a consumer's question needn't be: "What do I have to pay for a 1 carat diamond?" It can be more like, "My budget is X; should I spend it on a 1-carat mined diamond or a 3-carat lab-grown diamond?"
Retailers have reason to promote mined diamond because the profit margin is greater on higher priced jewelry. But—and it can be a big but—they don't want a potential customer to leave empty-handed because nothing is in their price range. So many jewelers now carry both mined and lab-grown gems, giving the shopper the choice.
Photo from Brilliant Earth website
Online sellers have the advantage of instant visuals. Brilliant Earth, for example, walks customers through all the choices—setting, metal, gemstone, shape, size and origin (lab-made or mined/natural). If the result isn't quite to their liking—say the price is too high—they can alter their choices and get a quick response.
In 2024, according to The Knot, 52% of the couples surveyed said the engagement ring included a lab-made diamond. That's the highest percentage so far, and the trend is expected to continue.
Where does that leave mined diamond?
Mined diamond still has, and will always have, the romance of being formed in the earth over billions of years. And romance is a good fit when it comes to engagement rings, so mined diamond is not about to yield its place.
De Beers' DiamondProof
De Beers, after a brief venture into selling lab-made diamond jewelry, has returned to solely promoting mined diamond. De Beers recently released for sale a device that distinguishes mined diamond from all other stones. Called DiamondProof, the device is marketed to retailers, for showing customers that the jewelry being sold has real diamond.
The sleight of hand (or, in this case, of machine) is that the device rejects not only non-diamond stones, such as moissanite or CZ, it also rejects lab-grown diamonds. The implication is: if a machine can tell the difference between mined and lab-grown, the distinction must be important. Just how important the distinction is for consumers is still playing out.
Meanwhile, market values fluctuate
Insurers should be aware that in the current market lab-grown diamond has a valuation far below that of mined diamond. For two diamonds of similar quality, the lab-grown diamond would likely be 10-40% the price of the mined one.
So: Be sure the appraisal and lab report specify whether the diamond is mined or lab-grown.
Pricing depends on a number of factors, including gem quality, origin, branding, demand, and even what everyone is worrying about these days, tariffs. Also, diamond-growing labs can increase production and offer increasingly lower prices, and sellers of mined diamonds may reduce their prices to be more competitive.
So: Pay attention to the date on the appraisal. The valuation of a few years ago may not be accurate today.
An appraisal's valuation is an estimation of the diamond's value at the time of the appraisal. A settlement will be based on the jewelry's value at time of loss. That's why an appraisal should always be dated, and appraisal valuations should be regularly updated to be sure premiums are appropriate and a settlement is fair.
For any scheduled gem jewelry, the appraisal should always state whether the gem is mined or lab-made. This is especially important for diamonds, because of the huge valuation difference.
Diamond on all scheduled jewelry should have a lab report that includes a designation of the gem's origin as mined [sometimes called natural] or lab-grown.
We recommend these trustworthy labs:
Gemological Institute of America - GIA Report Check
American Gem Society Lab - AGS Report Verification
Gem Certification and Assurance Lab - Verify Your GCAL Certificate
Many diamond growers are upfront about what they make and sell. But fraud is always around the corner. Even a diamond with the grower's name inscribed on the girdle could be reset and sold as higher-priced mined diamond.
Always ask for the sales receipt. Valuation should be close to the price paid.
Never assume a diamond's origin. If a diamond is insured as mined, be sure there is evidence to support this, such as a report from a reliable lab specifying the gem's origin. Use the links above to check reports you receive.
Gem prices can rise or fall depending on many factors, and these days diamond prices are especially in flux.
If the jewelry was purchased online, check the retail site. You may be able to "build your own ring," using data from the appraisal and lab report, to see whether the appraisal's valuation is close to the current price of the jewelry.
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