If you’re exploring diamond options and find yourself torn between the natural beauty of earth-formed diamonds and the impressive affordability of lab-grown ones, you’re not alone. Choosing between the two can feel confusing, but we’re here to make it simple. In this guide, we break down every major difference, clear up common myths, and give you the honest truth about both types of diamonds so you can confidently decide which one suits you best.

What Are Lab-Grown Diamonds?

Lab-grown diamonds are real diamonds created inside advanced laboratories instead of forming naturally underground. Scientists recreate the same conditions found deep inside the Earth intense heat and pressure to transform carbon into diamond crystals. This process takes only a few weeks, unlike natural diamonds, which take billions of years to develop.

Even though they come from a lab, their appearance and structure are identical to natural diamonds. They shine the same, feel the same, and are equally durable. Only professional gemologists with specialized tools can identify the difference. They are often confused with imitation stones like cubic zirconia and moissanite, but unlike those, lab-grown diamonds are 100% real diamonds.

How Natural Diamonds Are Formed

Natural diamonds are created by the Earth itself. Their journey begins deep in the planet’s mantle, where carbon is exposed to extreme heat and crushing pressure for millions or even billions of years. Over time, volcanic activity pushes these diamonds closer to the surface, where they are eventually mined.

Each natural diamond carries a unique story of its formation. The conditions that created it temperature, pressure, and location leave small, natural fingerprints inside the stone. This long, ancient formation process is a major reason why natural diamonds are so valuable and rare.

How Lab-Grown Diamonds Are Made

Although they form much faster, lab-grown diamonds follow the same scientific principles as natural diamonds. Two main methods are used: Chemical Vapor Deposition (CVD) and High Pressure High Temperature (HPHT). In CVD, a tiny piece of diamond seed is placed inside a chamber filled with carbon-rich gas. The carbon slowly attaches to the seed and builds a diamond layer by layer. HPHT, on the other hand, uses machinery to apply intense heat and pressure to carbon, mimicking the Earth’s natural diamond-making environment.

Both methods produce real diamonds with the same sparkle, hardness, and beauty as natural ones. The result is a diamond that looks identical but is made in a fraction of the time.

Natural Diamonds vs Lab Diamonds: Understanding Their Value

The biggest difference between natural and lab-grown diamonds becomes clear when you compare their long-term value. Lab-grown diamonds are far more affordable, costing around 80–90% less than natural diamonds in 2025. Their prices have dropped dramatically over 70% in the past eight years and continue to fall because labs can produce an unlimited supply whenever demand increases. With no scarcity, the value naturally goes down. Natural diamonds, however, remain rare and limited. The Earth isn’t creating new ones, and this scarcity helps them retain or even increase their value over time. For instance, a high-quality 1.5-carat lab diamond in 2016 was only slightly cheaper than a natural one, but today that same lab-grown stone is more than 80% less expensive than its natural equivalent. In simple terms, lab-grown diamonds are great for saving money upfront but offer little resale value, while natural diamonds are more expensive initially but hold stronger long-term worth.

How Carat Size Affects Pricing

Price differences become even more noticeable as carat size increases. In natural diamonds, larger stones are much rarer, so their prices climb steeply. A two-carat natural diamond doesn’t cost just twice as much as a one-carat, it can be several times more because finding larger, high-quality diamonds is uncommon. Lab-grown diamonds don’t follow this pattern. Since their creation doesn’t depend on nature, the pricing is more predictable and linear. Producing a larger lab diamond mainly requires more time and energy, so a two-carat lab-grown stone typically costs about double the price of a one-carat, making the pricing much easier to understand.

Price Differences Between Lab and Natural Diamonds

One of the biggest reasons people choose lab-grown diamonds is affordability. Lab-grown stones are significantly cheaper, often 80% to 90% less than natural diamonds of the same size and quality. This dramatic price gap exists because labs can produce diamonds anytime, which means the supply is far greater and constantly increasing.

Natural diamonds, however, remain expensive because they are rare and take millions of years to form. Their limited supply helps them maintain stronger value over time. While a lab-grown diamond gives you a larger stone for the same price, a natural diamond usually holds its value much better.

Diamond Grading: How Lab and Natural Stones Are Evaluated

Both types of diamonds are graded by major gemological institutes such as the GIA and IGI. Traditionally, all diamonds were evaluated using the 4Cs: cut, color, clarity, and carat. These categories determine quality and impact the price of the diamond.

However, from 2025 onward, the GIA will no longer use the full 4C grading system for lab-grown diamonds. Instead, they will provide simpler labels such as “Standard” or “Premium.” This change is happening because lab-grown diamonds often fall within very similar quality ranges, making detailed grading less meaningful. Natural diamonds will continue to receive the full 4C evaluation because each one varies greatly in quality.

Ethical Considerations: Which Is More Responsible?

The ethics of diamonds can be complicated, and the answer depends more on the specific source than on whether the diamond is lab-grown or natural. Some laboratories operate with clean energy and treat workers fairly, while others use coal-powered systems and provide low wages. Natural diamond mines also vary widely; some follow strict environmental rules, support local communities, and restore land after mining, while others have a history of poor labor conditions and ecological harm.

Because both types can be ethical or unethical, the most important factor is transparency. Always choose a seller who can provide clear information about where the diamond came from and how it was produced. When you know the origin, you can make a more informed and responsible choice.

Environmental Impact: Lab vs Natural

Lab-grown diamonds are often marketed as environmentally friendly because they don’t involve mining, but the truth is more complex. Producing a diamond in a lab requires extremely high temperatures, which consume enormous amounts of energy. Since over 70% of lab-grown diamonds are made in coal-dependent regions, some can have a surprisingly high carbon footprint. However, when labs use renewable energy sources like wind or solar, their environmental impact becomes much lower.

Natural diamond mining also varies widely depending on the mine. Some modern mines use renewable energy, recycle water, and restore landscapes after operations. Others, especially those in less regulated areas, can cause significant environmental damage. The environmental effect depends on the practices of the mine rather than the fact that the diamond is natural.

Which Diamond Should You Choose?

The best choice depends on your priorities. Lab-grown diamonds are ideal if you want a larger, more affordable stone without compromising on sparkle or beauty. They offer excellent value for those who care more about appearance than long-term resale value. Natural diamonds, on the other hand, are perfect if you appreciate rarity, history, and long-term value. Their unique geological formation makes them timeless and often more emotionally meaningful.

Whatever you choose, the most important thing is to buy from a transparent and trustworthy source. Knowing exactly where your diamond comes from ensures you feel confident about your purchase whether it’s made by nature or crafted by science.