Lab-grown Diamonds

This refers to diamonds that have the exact same chemical, optical and physical properties as natural diamonds, but are grown differently (in a laboratory).

Diamonds created in a controlled environment are called lab-grown diamonds. These diamonds are created when scientists and engineers adjust certain conditions, such as high temperature and pressure, to promote the growth of diamond crystals.

Lab-grown diamonds have a long history, with the first man-made diamonds having been produced as early as the 1950s. However, these early man-made diamonds were primarily used for industrial purposes (diamond cutters, record needles, etc.) and had limited use as jewelry.

The main reason for this is that they could only produce small, black diamonds (colorless and transparent are more valuable at the gemstone level).

Over the years, advances in manufacturing techniques have significantly improved the quality and size of man-made diamonds, making them competitive in the jewelry market and attracting attention. During this period, man-made colored diamonds (color treatments) entered the market.

In the 21st century, the technology for lab-grown diamonds has advanced dramatically, and it has become possible to produce high-quality diamonds that are almost indistinguishable from natural diamonds. This has led to active discussion in the jewelry industry about the differences between natural diamonds and lab-grown diamonds and the evaluation standards.

Recently, diamonds over 30 carats in size have been produced, and high-quality lab-grown diamonds are being produced, including at a reduced cost.

The value of a diamond can be divided into two categories: physical value and information value.

"Physical value"

-The price of a diamond is determined based on the common criteria of 4C (carat, color, clarity, cut).

・Whether it is a genuine mineral or not is an element to distinguish it from other minerals, and a certificate of identification (available for all gemstones) proves that it is a diamond. *However, the difference between natural and laboratory-grown diamonds is separate from this, and the definition has not yet been established.

"Information value"

・Generally, natural diamonds are scarce due to the balance between reserves and mining volumes, which guarantees their asset value. On the other hand, lab-grown diamonds are artificially created, so at present, they are not recognized as having the value of rarity.

However, the accuracy rate for producing products of current product quality is around 30%.

・Large-scale open-cut mining of natural diamonds causes humanitarian problems such as environmental destruction, human rights issues (child labor, exploitation), and blood diamonds (conflict and armed funding). However, lab-grown diamonds are produced in factories (labs), so they are small-scale, energy-efficient, mining-free diamonds, and are considered clean diamonds that solve various problems related to diamonds. (There are efforts to monitor the production process of natural diamonds [traceability], but the transparency of information is lacking.)

"Asset value" is a term that is often seen in advertisements for diamond sales, but to have true asset value, a diamond must have the highest grade (at least 1 carat, F or higher, VVS or higher, EX or higher), have a distinctive color (blue, orange, red, pink, etc.), and above all, be of a unique level.

Diamonds that you can find in a typical jewelry store do not have any value as assets. Diamonds of a grade that are handled by auction houses such as Sotheby's, Christie's, and Phillips can be said to have value as assets.

When you actually sell your jewelry, it can get you anywhere from a tenth to a fraction of the purchase price.

Because bullion such as gold, platinum, and silver is traded as financial products at securities companies, it has asset value and its price may increase from the time of purchase.

On the other hand, although diamonds have a market price as jewelry and are traded all over the world, they have no asset value as financial products, so the selling price is rarely higher than the purchase price.

Gold reserves are limited and it is rare, and because it is backed by this, it has become a financial product.

When it comes to diamonds, data such as reserves that prove their rarity is limited (a major factor is that one company has a monopoly on the global diamond distribution), so you might think that there is no guarantee of a diamond's value.

For these reasons, it can be said that diamonds have more commercial value than asset value.

Not only are lab-grown diamonds superior in price and quality to natural diamonds, but they are also chosen by young people and the wealthy around the world as clean diamonds that eliminate issues such as environmental destruction, human rights violations (child labor), and blood diamonds (conflict and armed financing) in the manufacturing process.

"There is no need to choose expensive natural diamonds, but rather deliberately choose lab-grown diamonds."

This type of ethical consumption is becoming more widespread.

In the United States and China, which are advanced countries in the field of lab-grown diamonds, natural diamonds and lab-grown diamonds are treated equally in retail stores, allowing consumers to choose freely.

With an emphasis on sustainable development, environmental awareness, and social responsibility, the Italian luxury brand Armani recently made headlines in the fashion industry by declaring that it would stop using fur.

The idea that "taking animals' lives for fashion is wrong" is widespread.

Of course, since it is something to wear, fake fur may feel inferior to real fur, but that is a minor point. They are almost indistinguishable in appearance, and the manufacturing technology for fake fur has improved, so there are products that feel just as good.

This same mindset is also seen in the diamond market (especially among consumers).

By focusing on differences that can only be distinguished by world-renowned gemological institutions (not quality, but differences in the patterns of diamond growth), choosing ethical consumption, which is scientifically the same material but of high quality and low price, rather than natural diamonds, which may involve risks of environmental destruction, exploitation of child labor, and blood diamonds (funds supporting conflict), is considered a natural choice.