Lab-grown diamonds are gaining popularity as a cost-effective alternative to natural diamonds, challenging the traditional dominance of mined stones in the market. Daniel Ng and Olivia Chan from Toronto opted for a lab-grown diamond during their 2024 engagement ring shopping due to the considerable price gap compared to natural diamonds. The price difference between lab-grown and natural diamonds can be as high as 90%, making lab-grown diamonds an attractive choice for many young couples.
Industry experts note the increasing affordability and availability of lab-grown diamonds, leading to a surge in consumer interest in this option. However, an investigation by Marketplace revealed significant price discrepancies for identical lab-grown diamonds, raising concerns about potential overcharging. To illustrate, CBC journalists purchased two identical lab-grown diamonds—one from Blue Nile and the other from Alibaba—both with similar characteristics but at vastly different prices.
The Blue Nile diamond cost $1,639.23, whereas the Alibaba diamond was priced at $228.86, prompting surprise from consumers like Ng and Chan. The disparity in prices for identical lab-grown diamonds has raised credibility issues within the industry, according to diamond industry analyst Paul Zimnisky. He highlighted the profit potential for retailers selling lab-grown diamonds but cautioned against overpricing, emphasizing the decreasing production costs due to economies of scale.
Appraisals confirmed that both diamonds purchased by Marketplace were of equal quality, despite the price variance. The affordability of lab-grown diamonds, particularly from manufacturing hubs like China and India, remains unknown to many consumers. Retailers like Blue Nile defended their pricing based on brand reputation and quality assurance, while the Canadian Jewellers Association emphasized the importance of fair pricing and consumer education in the industry.
Consumers are advised to research thoroughly, check reviews, pay securely, and have diamonds appraised to ensure authenticity. As lab-grown diamonds become more accessible and affordable, industry experts predict a future convergence of prices towards wholesale levels. Ng and Chan, reflecting on their experience, advocate for transparent and consistent pricing across the diamond industry to empower consumers with informed choices.