Engagement Rings

Natural diamonds cost more due to their rarity and the complex geological processes that form them. These gemstones, especially larger diamonds with exceptional color and clarity, are incredibly rare. They are created over billions of years under extremely high pressure and temperature deep within the Earth’s crust. This scarcity makes natural diamonds highly valuable in the diamond market and determines the price difference between lab grown and natural diamonds.

On the other hand, lab grown diamonds (also known as synthetic diamonds, lab created diamonds or man-made diamonds) can be produced in virtually unlimited quantities, through Chemical Vapor Deposition (CVD) or High Pressure High Temperature (HPHT)processes. With modern technology, lab diamonds can be created in any carat weight, color grade, or clarity grade, making them more affordable than natural stones. The price of lab grown diamonds is primarily determined by production costs and profit margins, rather than rarity.

When comparing the two types of diamonds on the market, there is also a difference in diamond price trends over time. Unlike natural diamonds, which are a finite resource, lab grown diamonds do not appreciate in value over time. In fact, as production processes become more efficient and competition increases, the value of lab grown diamonds tends to decrease. Historically, natural diamonds have shown an average annual appreciation of about 3%, making them a stable, long-term investment with resale value.

For those seeking a truly unique, rare, and enduring diamond engagement ring or piece of jewelry, natural diamonds are an exceptional choice. They not only hold their value but also symbolize a timeless connection to the Earth’s history and natural beauty.

Like other natural materials, how much natural diamonds cost is based on how rare they are to find in nature. The rarer the natural diamond, the more valuable it will be. Over the last 35 years, natural diamond prices have been shown to appreciate by approximately 3% annually. In its 2019 Global Diamond Industry Report, Bain & Co. found that the diamond market has grown thrice over the past 50 years.

How old are diamonds? Most natural diamonds are between 1 and 3 billion years old. Diamonds form deep within the Earth under intensely high temperatures and pressure, causing carbon atoms to crystallize before being transported to the Earth’s surface by powerful volcanic eruptions, such as kimberlite and lamproite eruptions. Although diamond formation occurs far beneath the Earth’s surface, these eruptions are rare yet immensely powerful, carrying diamonds from the Earth’s mantle to locations where they can be recovered.

These rare and precious gemstones are likely the oldest things you will ever touch, having formed long before any life existed on Earth. The oldest diamonds that have been dated, found in Canada, are 3.7 billion years old.

Yes, young people are buying diamonds in increasing numbers. In fact, the data on diamond sales reveals that millennials and Gen Z consumers over-index in natural diamond purchases, capturing a larger market share than their overall population share. Millennials alone account for approximately 60% of the demand for diamond jewelry and diamond engagement rings in the U.S. and this trend is on the rise.

Research shows that younger generations are drawn to products with authenticity, rarity, and value—and what could be more authentic than a billion year old diamond? For many young consumers, a natural diamond represents not just a precious gemstone, but a symbol of timelessness and deep meaning in their lives and relationships.

When engagement ring shopping, the “two months’ salary” rule (sometimes misquoted as the three months’ salary rule) has traditionally been considered the cultural standard for engagement ring pricing, but it should only serve as a general guideline. Ultimately, your engagement ring budget is a personal preference, and there is no “one-size-fits-all” answer to finding the perfect engagement ring—you know your financial situation best. The most important factor is selecting an engagement ring design and diamond center stone that truly speaks to you and your partner’s unique style. Be sure to work with an experienced jeweler or retailer who can help guide you through the important decision.

Each natural diamond is distinct, and this diamond engagement ring will likely become a cherished family heirloom for generations to come. Whether you are buying an engagement ring at an entry-level price range or a luxury piece, rest assured that natural diamonds are available at a wide range of price points to fit your budget. Additionally, natural diamonds have consistently shown an average annual appreciation in value of approximately 3% over the last 35 years, making them a solid investment for the future.

The diamond industry has made significant strides over the past 30 years in ethical sourcing and sustainability. This includes improving working conditions across the entire supply chain as well as reducing the impact of diamond mining on the earth. Thanks to the Kimberley Process Certification Scheme (KPCS), conflict-free diamonds (sometimes called blood diamonds) are nearly eliminated from the market. This United Nations-mandated certification process ensures that diamonds are sourced from regions free of conflict, giving buyers peace of mind that their ethically sourced diamonds are conflict-free, whether they’re purchasing a loose stone, engagement ring, or diamond jewelry.

Today, consumers can be confident that the majority of natural diamonds purchased globally are ethically sourced diamonds. However, the diamond trade goes beyond the Kimberley Process by implementing additional standards to improve working conditions and address the broader issues of people, planet, and business ethics. In addition to adhering to international human rights frameworks, environmental standards, fair wages and other labor regulations, the diamond industry is committed to responsible mining practices and ensuring that diamond mining companies comply with country-specific laws. These efforts guarantee that the sustainable and ethical practices of the industry also minimize environmental impact and respect human rights.

Lab grown diamond prices have dropped significantly, from 80% of the cost of natural diamonds in 2016 to less than 20% by 2024. This dramatic price reduction is largely due to the ability to produce lab grown diamonds in unlimited quantities using methods like Chemical Vapor Deposition (CVD) and High Pressure High Temperature (HPHT). Unlike natural diamonds, which are rare, lab grown diamonds are priced based on production costs and retail markup. As production techniques improve and scale, their value is expected to continue declining until they reach a stable price point.