Editor’s Note
This article explores the shifting dynamics in the diamond market, where lab-grown alternatives are gaining significant traction due to their substantially lower cost. It highlights a key consumer trend and its impact on the traditional industry.
Marketed as an alternative to mined diamonds, lab-grown stones are growing in popularity among engaged couples, taking some of the shine from mined or “natural” diamonds, which have traditionally dominated the market. Experts say a lab-grown diamond can cost 90 per cent less than its natural equivalent.
A CBC Marketplace investigation found that virtually identical lab-grown diamonds are being sold at vastly different prices, raising questions about whether some consumers are paying far more than they need to. Journalists purchased two lab-grown diamonds with identical specifications (one carat, D-colour, ideal cut, VS1 clarity, round shape). One, from leading online retailer Blue Nile, cost $1,639.23 CAD. The other, from a vendor on Alibaba.com, cost $228.86.
Paul Zimnisky, a U.S.-based diamond industry analyst, said he has seen such large price gaps and warned they could create “credibility problems” for the industry.
He explained that lab-grown diamonds are an economy-of-scale business where production costs are falling precipitously, with wholesalers potentially buying stones for as low as $75-$95 USD.
Both purchased diamonds came with legitimate certificates from the International Gemological Institute (IGI). Accredited jewelry appraisers Eddy and Allan Young of Gem Review Inc. in Toronto examined both stones under a microscope.
He gave both diamonds the same estimated retail value: $1,925 CAD. He was unsurprised by the purchase price variance, noting the Alibaba price reflects buying directly from a manufacturer, a price typically unavailable from local jewelers.
