If you are shopping for an engagement ring right now, you have probably already heard the pitch for lab-grown diamonds. They are chemically and physically identical to mined diamonds, but they come with a significantly smaller price tag.
But while you might be saving money compared to a natural stone, a recent investigation by CBC Marketplace suggests you could still be vastly overpaying if you do not shop around.
The $1,400 difference for the same diamond
In a revealing experiment, journalists purchased two lab-grown diamonds that were virtually identical on paper. Both were one-carat, D-color (colorless), ideal cut, VS1 clarity and round-shaped.
The first diamond was bought from the well-known online retailer Blue Nile for $1,639.23 (Canadian dollars). The second diamond was bought from a vendor on Alibaba for just CA$228.86.
Despite the massive price gap, independent appraisers confirmed the stones were identical in quality.
In fact, one appraiser noted that the price of the Alibaba stone is closer to what jewelers actually pay manufacturers, while the higher price tag at major retailers is often just a result of heavy markups and branding.
Why the discrepancy?
The lab-grown diamond industry is currently like the Wild West. Because these stones are a manufactured product, they benefit from economies of scale. As production ramps up in hubs like China and India, the cost to create them drops.
However, many retailers are still pricing them based on the traditional diamond mystique, rather than their actual manufacturing cost. As industry analyst Paul Zimnisky noted in the investigation, some retailers are selling stones for thousands that they likely bought for less than $100.
How to avoid the rip-off
The takeaway is not necessarily to buy your engagement ring from a random vendor on Alibaba — that comes with its own risks regarding shipping and returns — but rather to treat lab-grown diamonds like any other tech product: compare prices aggressively.
- Don’t assume the first price is the standard price: Prices for the exact same specs can vary by over 80% between retailers.
- Check the certificates: Legitimate lab-grown diamonds should come with reports from organizations like the International Gemological Institute (IGI).
- Get an appraisal: If you do find a deal that seems too good to be true, independent appraisals can verify if the stone matches its description.
The prices of lab-grown diamonds are dropping fast. Don’t let a fancy brand name convince you to pay 2020 prices in 2026.
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