The term “synthetic” is the scientific designation. “Lab grown” is the marketing designation. This appraiser only uses the term “synthetic” when referring to this material.
Synthetic or lab grown diamonds ( the terms are used interchangeably except in France where the term “lab grown” has been banned) are nothing new. What is new is the advancement in technology and interest by the jewelry industry to offer cheaper alternatives to natural. The first synthetic diamond was created back in the 1950’s by General Electric. The problem then was that it was cost prohibitive to produce gem quality but they were produced for industrial purposes. With today’s technology, synthetic diamonds conform to the stringent jewelry industry demands and have a lower cost, a much shorter production time and larger stones are common. So much so that the production areas for these stones really are factories, not labs. To better understand synthetic diamonds it is important to define them. In order to label a diamond as “synthetic”, “lab-grown”, or “lab-created” it must have the same optical, physical, and chemical properties as naturally mined diamonds, unlike diamond simulants such as Cubic Zirconia and Moissanite. Additionally, in order for something to be considered a gem, it must have beauty, durability and rarity. Synthetic diamonds are beautiful and durable but certainly are not rare!!! They’re being produced at the rate of millions of carats per year. Another consideration is the globalization of the diamond industry. DeBeers has been offering their Lightbox brand which is jewelry made with all synthetic diamonds at a very low price per carat. Countless other jewelry manufacturers now have their own lines. Whatever happens in America affects the rest of the world and vice versa. Today, there are many points of view on how synthetic diamonds have impacted the jewelry industry. One thing is for sure, everyone involved including manufactures, miners, industry leaders and governments want to protect consumers around the world. Or so we hope.
So, what is the big deal? The renewed interest of synthetic diamonds by the jewelry industry poses many interesting challenges for the industry and consumers. We’ll highlight a few. In the United States, the Federal Trade Commission (FTC) is responsible for defining products’ legal standards to protect the U.S. consumers. When it comes to diamonds, the question is how to best distinguish a natural diamond from a synthetic diamond when both have exactly the same optical, physical, and chemical properties. In this case they are both diamonds, but they come from two different places; one from below ground from natural occurrences and the other from above ground by various man-created processes. Manufacturers and the industry do agree that a distinction must be made to help consumers make informed decisions. Another concern is that manufacturers and sellers of synthetic diamonds may tell consumers that synthetic diamonds are conflict-free, environmentally friendly, or other benefits to pique their interest. Although it is clear that a synthetic diamond would be conflict free, the story is skewed by virtue of the extremely high amount of energy it takes to grow diamonds above ground. Miners would make other compelling arguments to make their case like they provide thousands of jobs to people in remote areas of the world.
Another area of HUGE concern for the industry is the identification of synthetic diamonds. Many professionals in the industry have limited or no access to the advanced equipment needed to properly identify synthetic diamonds. Currently, the availability of lab equipment designed to identify synthetic diamonds is not only limited but cost prohibitive for the majority of small companies in the business. And more often than not, it takes more than one type of screener to accurately make the distinction. This concern is real and the industry is addressing it but the synthetic growers are producing higher quality stones which makes identifying them vastly more difficult. There are nefarious souls out there who are cutting synthetic diamonds to the exact specs of natural stones with accompanying GIA Reports and laser inscriptions. As appraisers, we are ever more vigilant when examining any stone with a Report to make sure that the stone and the Report truly match. Will consumers embrace the idea of buying synthetic diamonds vs. natural diamonds? Will they care whether it comes from a factory or the ground? Or, will the focus be on appearance, cost, or the charming stories told by the retailer? Do the consumers understand that the pricing and values have dropped to next to nothing with very little hope of reselling or even trading in? The smart retailers require clients’ signatures on “releases” stating that they understand there is no guarantee that the product will increase in value and that there is no buy back or trade in options. At present time, the market for natural round diamonds has tanked. The prices have dropped 30-40% because round is the most popular shape. High supply with low demand means lower prices. Great time to buy!! The fancy cuts haven’t been hit quite as hard. We do expect the market to correct but it could take a while. Buy responsibly!
Yantz Bradbury Associates
P.O. Box 10123
Rockville, Maryland 20850
Office: (301) 335-6687
Serving MD, VA and DC Metro Area