Most of us reading this have perhaps at some point heard about either Lab-Grown Diamonds, Man-Made Diamonds or CVD diamonds. They are all primarily the same thing. Essentially these terms refer to diamonds grown in a lab as opposed to the traditional and natural method which takes billions of years for diamonds to form.

The supporters of the Man-Made method correctly make the argument that both Man-Made diamonds and natural diamonds have the same chemical composition and are visually identical, therefore, with the naked eye it is near impossible to tell the difference between a lab grown diamond and a natural diamond. For this reason, they argue why should anybody pay more for a natural diamond and instead they should go for the cheaper alternative of Man-Made diamonds.

They do make a valid argument. Why should you pay more for a product that has a visually identical but cheaper alternative. However, if its so similar then why has it not been able to gain a sizeable market share. An important explanation to this can be found in a Bain & Co study. When 1,500 consumers were asked the question What comes to your mind when you think about lab-grown diamonds? The overwhelming majority responded with the words “Artificial” and “Fake”.

Individuals have been purchasing diamonds primarily as an emotional purchase and to a great extent as an investment purchase. When we say emotional, one of the main reasons a diamond is purchased is as a message of love either towards one's own-self or to another person. For example, as a man does when proposing. The importance of a natural diamond in this process is perfectly articulated by the Harpers Bazar-

The appeal of natural diamonds has been grounded in the understanding that it took the earth millions of years to form them, making them the gemstone [that is] the embodiment of the idea of eternal love

A primary purpose of a diamond today is deep-rooted in the process from which it was formed. Should you remove that process, does it still trigger the same emotion and pass the same message?

In addition, the process through which a natural diamond is formed results in a scarce product with a finite supply. Leading us to the second noteworthy point of buying a natural diamond- its ability to hold value through the test of time. Needless to mention that some diamonds over the years have exploded in value.

This will simply never be the case with Man-Made diamonds. Even its proponents have accepted that once a Man-Made diamond has been purchased by a consumer its just a worthless stone with no resale value. There are a number of studies that clearly show the intense rate at which the price of Man-Made diamonds have been plunging across the years.

Even in terms of aesthetics, what the proponents also do fail to mention, as highlighted by the GIA, is that the diamonds produced by High Pressure High Temperature process is with mainly yellowish or brownish yellow colours. And as per Bain and Co’s recent study well more than half of lab grown diamonds are made in China using this process. The GIA further explains that even with the advent of the CVD process the diamonds grown in the lab possessed the much lesser desirable brownish colours.

Therefore even though the owners of laboratories where diamonds are grown have been able to produce diamonds with the same chemical composition, they have not been able to achieve the same level of purity that naturally occurs.

Another repeated argument made against natural diamonds is the way in which it is mined. Supporters of the Man-Made variation have claimed that there is a lack of transparency in the natural diamond industry and moreover the negative impact of the diamond mining industry on the environment. There is certainly some truth to this and cannot be disputed.

However, for the Man-Made proponents to argue that diamonds produced in a laboratory is a better and a green alternative is far from the truth. The High Pressure High Temperature method used has been proved not to be the most sustainable solution due to the enormous amount of energy needed to create the high heat. A significant energy requirement is also needed with the CVD method.

Bain and Co recently found that well more than half of all man-made diamonds are produced in China and more importantly many lab-grown diamond brands still do not share their factories or origins. On the contrary the natural diamond industry has implemented strong measures to create more transparency such as the Kimberly Process, which brings clarity to the exact origins of the diamond.

In answer to the question whether Man-Made diamonds has a future? It will simply be a cheaper lower quality alternative to the natural form. A primary use of diamonds today is industrial and in that context the Man-Made form will certainly have a strong potential. However, it will never really be able to cannablise into the turnovers and market share of the natural form. As illustrated earlier the consumers simply dont perceive it to be a real diamond. A product made in a lab is very different to the billions of years taken to produce it naturally.

Today the fake luxury watch market such as for Rolex or fake luxury handbag market for example for Louis Vuitton exists and they are perhaps able to produce a watch or a handbag that is nearly visually identical to the real (watch this Here’s Why This Fake Rolex Is So Accurate | Watchfinder & Co. ) However, wearing, receiving, or owning one simply does not trigger the same emotion. Similarly with a diamond grown in a lab, the consumer does not feel the same emotion. For most diamonds along with other similar luxury products such as Luxury Watches, is all about the emotion and the desire to create a value generating legacy. It can be said with no doubt that a diamond grown in a lab will never be able to fulfil these desires which are the real reason that diamonds are bought today.