Why Buying Laboratory-Grown (Synthetic) Diamonds is Such a BAD Investment
Many jewelers are peddling the so-called virtues of laboratory-grown (synthetic) diamonds but are they telling their customers the whole truth about them. Before you go out spending significant dollars towards the purchase of a laboratory-grown (synthetic) diamond, please take a moment and consider the following facts:
1. They have NO resale value.
Unlike natural diamonds which holds value over time, laboratory-grown diamonds are industrial products that are factory produced in matters of weeks. Since they are not rare and easily mass produced, there is NO secondary market for them. All the Diamond Bourses in the world have banned their members from trading them.
2. Retail prices are dropping FAST.
Chances are, you are already paying too much for your laboratory-grown diamond (LGD). Retail prices continue to erode fast as the cost of production declines. In fact, the production cost of LGD’s have decline 90% over the past 10 years while wholesale prices have dropped threefold over the past 2 years alone.
The current retail prices place LGD’s at about 50% to 70% of their natural counterparts. It is predicted that LGD’s should stabilize at about 10% of natural prices in the next few years.
3. They are BAD for the environment.
Manufacturing plants of LGD’s can cover several football fields with thousands of ovens requiring massive amounts of energy to produce them. It is estimated that carbon emissions of laboratory-grown diamonds are 3 times more than natural diamonds. While 83% of the water used in modern diamond mining is recycled and require little to no chemicals, LDG’s require significant amount of freshwater to manufacture.
4. They are FAKE.
Laboratory-grown diamonds have the same physical and chemical characteristics as natural diamonds, but they are NOT identical, and can be EASILY detected. LGD’s are crystals created in a laboratory using technology originally developed by General Electric in the 1950’s. The two common methods are called CVD (Chemical Vapor Deposit) and HPHT (High Pressure High Temperature). They’re also know as lab grown, lab created, engineered, cultured, or synthetic diamonds.
Laferriere & Brixi Diamantaires Inc. is a strong advocate for natural diamonds and only sells natural untreated diamonds to both its retail and wholesale clients. Laferriere & Brixi Diamantaires Inc. has a complete and advanced gemological laboratory which uses the latest instruments in order to identify both synthetic and treated diamonds.
For more facts and figures, please consult the Natural Diamond Producers Association website at www.diamondproducers.com.