Natural diamonds are highly prized gemstones that have been valued for centuries for their beauty, quality, durability, rarity and significance. However, navigating the diamond market can be complex for buyers, as it involves diverse factors such as varying levels of quality, pricing, and certifications that may not always be transparent. One challenge can be understanding the differences between purchasing natural diamonds and synthetic diamonds.

Natural diamonds are highly prized gemstones that have been valued for centuries for their beauty, quality, durability, rarity and significance. However, navigating the diamond market can be complex for buyers, as it involves diverse factors such as varying levels of quality, pricing, and certifications that may not always be transparent. One challenge can be understanding the differences between purchasing natural diamonds and synthetic diamonds.

To make an informed investment decision when contemplating the purchase of a diamond, it is crucial to understand the distinction between natural diamonds and synthetic diamonds. In this article, we will delve into these differences and highlight why natural diamonds offer a significantly superior investment opportunity.

 

Natural Diamonds

Throughout history, natural diamonds have adorned jewellery and become synonymous with concepts such as love, wealth and prestige. A natural diamond is a diamond that is formed from carbon that has been subjected to extreme heat and pressure over millions of years deep within the earth's mantle. These natural processes make them rare, precious, highly valuable and sought after, as well as infusing in them unique inclusions, or imperfections, that add to each diamond's individual character, charm and unparalleled beauty.

Natural diamonds possess exceptional individuality in terms of their clarity, cut, inclusions and colour, which can range from white and yellow to blue, green, pink, and red. This distinctive uniqueness renders each diamond as rare, precious, and highly valued, showcasing its one-of-a-kind nature.

Natural diamonds are also extremely durable. They are the hardest natural substance on earth, incredibly strong, heat-resistant and resilient to scratches and abrasions. This makes them suitable for use in jewellery, tools and other applications.

They have also been used for centuries to adorn jewellery and have become synonymous with love, wealth and prestige. The majority of natural diamonds are mined in Africa, Russia, Canada, and Australia.

Natural diamonds have played a significant role in human history and culture and are valued for their history, cultural significance, beauty and rarity.

 

Lab Grown Diamonds

Lab grown diamonds, also referred to as synthetic diamonds, are artificially produced in a controlled laboratory environment, replicating the high-pressure and high-temperature conditions that natural diamonds form under. Due to their mass production, lab-grown diamonds are less rare and lack the distinctiveness and individuality of natural diamonds.

 

Price

One of the main differences between natural and lab grown diamonds is their value.

Over the past three decades, there have been no significant discoveries of new natural diamond deposits, resulting in natural diamonds becoming increasingly rare and uniquely precious with each passing day. This enduring scarcity has established a proven track record of natural diamonds retaining their value over time.

In contrast, lab grown diamonds, being mass-produced, are seeing their prices depreciate over time as their production scales up and production costs go down.   They lack the same intrinsic value and are unlikely to appreciate in worth over time.

 

Copy vs Original

While lab grown diamonds may have the same physical and chemical properties as natural diamonds, they are a copy of natural diamonds. However, when it comes to value and resale, the laboratory grown alternatives represent a tiny fraction of the value of the natural. For example, the value of a high quality lab grown emerald may be a few dollars a carat, compared to the value of a high quality natural emerald which can exceed $10,000 per carat.

 

Resale

Synthetic diamonds are not considered an investment as their supply is theoretically unlimited, so while they are cheaper to purchase upfront, they do not retain their value like natural diamonds do. When reselling natural diamonds, there are numerous auction houses and other business trading these gems. When reselling synthetic diamonds, there is not an established market, with First State Auctions along with most exclusive auction houses not dealing with them.

 

Conclusion

Natural diamonds are limited in quantity on our planet, with each one formed under unique circumstances over billions of years. Consequently, the scarcity of natural diamonds as precious gems contributes to their intrinsic value. These rare, billion-year-old gems have demonstrated a trend of increasing in value over time, as their scarcity continues to grow, solidifying their status as a wise investment choice that appreciates in worth over time.

In contrast, lab grown diamonds, being mass-produced, are generally considered less valuable and therefore lower priced. Due to their mass production and lack of scarcity, they also do not possess the same ability to retain or appreciate in value over time.

In addition to their rarity, natural diamonds possess a distinctive beauty that sets them apart from lab grown diamonds. Each natural diamond is adorned with unique inclusions, that bestow upon it its own character and charm. In contrast, synthetic diamonds are often created to be flawless and lack the unique inclusions found in natural diamonds.

When it comes to investment, natural diamonds have a proven ability to appreciate in value over time.

In contrast, lab grown diamonds lack the capacity to hold their value and their price is likely to depreciate over time.

If you are seeking a valuable and enduring investment, natural diamonds are the optimal choice.

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If you are in the market for natural diamonds to add to your collection, look no further than our weekly online auction. The extensive catalogue boasts a wide variety of natural GIA diamonds and diamond jewellery, including engagement rings, earrings, bracelets, and more. The online auction is not to be missed. Head over to the catalogue and place your bid on highly sought-after diamond pieces.  

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