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Understanding Laboratory-Grown Diamonds: Insights from the Natural Diamond Council

The Natural Diamond Council (NDC) has released a significant report aimed at clearing up prevalent myths surrounding laboratory-grown diamonds. This study offers a comprehensive examination of the laboratory-grown diamond market, providing vital information for consumers, journalists, and retailers. The goal is to present factual data while fostering informed discussions about the distinctions between natural and synthetic diamonds.

Key Findings from the Report

The findings detailed in the report shed light on several critical aspects of the laboratory-grown diamond industry, including production methods, pricing trends, and sustainability claims. Here are some of the most notable insights:

1. Mass Production: Over 70% of laboratory-grown diamonds are produced en masse in factories located in China and India.
2. Energy and Resources: The manufacturing processes involved are energy-intensive, requiring the maintenance of extremely high temperatures—higher than 2000°F (1,093°C)—and consuming significant amounts of water to cool the reactors that produce these diamonds.
3. Pricing Trends: The cost of laboratory-grown diamonds has plummeted dramatically in recent years. For instance, the price of a 1.5-carat laboratory-grown diamond has decreased by approximately 86%, from $10,750 in mid-2015 to just $1,455 in 2025. According to analyses by experts, the wholesale price for a 1-carat near-colorless (FGH) high-clarity (VS1) laboratory-grown diamond has fallen to just 5% of what it was back in 2018.
4. Retail Margins: There's been a striking increase in the average retail margin on laboratory-grown diamonds, rising from 46% to 84% over the last five years. This marks a jump in the average mark-up from 85% to over 500%.

Sustainability and Transparency

Despite the extensive manufacturing capabilities, the sustainability claims made by promoters of laboratory-grown diamonds often lack rigorous scrutiny. David Kellie, the CEO of the Natural Diamond Council, emphasizes the importance of transparency in this burgeoning market. He states, "Consumers deserve clear, honest information that will help them understand their choices. This isn't just about pricing; it's a wake-up call for greater clarity and integrity across all facets of the market."

The Role of GIA in the Gemstone Industry

As part of enhancing consumer awareness, the Gemological Institute of America (GIA) has announced that it will no longer apply its renowned 4Cs grading system for natural diamonds to laboratory-grown diamonds. Instead, they will issue broader descriptors—categorizing them simply as "premium" or "standard"—to help consumers distinguish between the two types of diamonds. This shift aims to ensure buyers are fully informed when making their selections.

Conclusion: An Evolving Market

As lab-grown diamonds gain traction in the jewelry market, the significance of educating consumers cannot be overstated. The NDC's report represents a crucial step in fostering informed dialogue and making consumers aware of the realities and intricacies of laboratory-grown diamonds. Both consumers and stakeholders are urged to be vigilant about the information they ingest and seek out factual, clear content to guide their decisions.

The report underscores that while laboratory-grown diamonds offer a modern alternative to natural diamonds, understanding their origins, pricing structure, and production methods remain essential for making informed choices. By engaging with credible information, consumers can navigate this complex landscape with greater confidence.

For more information and insights, the full report, titled "Laboratory-Grown Diamond Facts," can be accessed through the Natural Diamond Council’s platform. This resource aims to provide comprehensive knowledge and foster transparency in the diamond market, ultimately helping consumers make the best decision for their specific needs and values.