Lab-grown diamonds have moved beyond the stage of uncertainty and are now in the growth phase. More and more people are turning to lab-grown diamonds, which are real diamonds created in a laboratory using advanced technology. Lab-grown diamonds have the same physical and optical properties as mined diamonds and are certified by trusted laboratories. They are indistinguishable from natural diamonds and offer the same beauty and durability. Moreover, they have several advantages when it comes to investing in the future.

Discussed below are some reasons why buying a lab-grown diamond is a smart and sustainable choice:

Value at much lesser price

Lab-grown diamonds are significantly cheaper than natural diamonds, as they do not involve the high costs of mining, transportation and intermediaries. You can get a diamond of the same quality and size at a fraction of the price. For example, a one carat natural round diamond of G-VVS1 specifications costs at least ₹2.5 lakh. On the other hand, a lab-grown diamond of the same size and characteristics can be bought at approximately ₹40 thousand or ₹50 thousand. This means you can save up to 80% by choosing a lab-grown diamond over a natural one.

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Opens up more investment opportunities

The money you save by buying a lab-grown diamond can be invested in other avenues that give you higher returns and can be liquidated easily. For instance, if you invest the difference of ₹2 lakh in a mutual fund that gives you an annual return of 12%, you can earn ₹24 thousand in the first year, and ₹1.5 lakh in five years. This way, you can grow your wealth while enjoying the sparkle of your lab-grown diamond.

Potential of appreciation in value

Lab-grown diamonds are not only cheaper, but also have the potential to appreciate in value over time. This is because natural diamonds are a finite resource and can become out of production at some point in the future. Depending on the demand and supply of lab-grown diamonds then, they can very well retain the value spent on them, or even increase. According to a report by Bain & Company, the global market for lab-grown diamonds is expected to grow by 15% to 20% annually, reaching $14.9 billion by 2030.

Priced proportionately at higher carats

Natural diamonds are priced disproportionately higher per carat as the carat weight increases, as larger diamonds are rarer and harder to find. However, lab-grown diamonds are priced more linearly, as they are produced in a controlled environment and can be scaled up easily. This means you can buy a bigger and better lab-grown diamond for the same price as a smaller and lower quality natural diamond.

For example, a two carat lab-grown round diamond of G-VVS1 specifications costs around ₹1.2 lakh, while a two carat natural diamond of the same quality costs around ₹14 lakh. This huge difference of ₹12.8 lakh can be invested or spent elsewhere.

In conclusion, lab-grown diamonds are the future of diamonds, as they offer the same or better quality, beauty and durability as natural diamonds, at a much lower price. Lab-grown diamonds are also a wise and profitable investment, as they can save you money, generate income, and appreciate in value.

(By Ankit Singh Kimtee, Founder & CEO, DiamondXE)

Disclaimer: This is the author’s personal opinion. Readers are advised to consult their financial planner before making any investment.