If you’re looking for an engagement ring right now, you’ve probably heard about the demand for lab-grown diamonds. They are chemically and physically identical to mined diamonds, but come with a significantly smaller price tag.
But while you may save money compared to natural stone, a recent study from… CBC Marketplace suggests you could still pay way too much if you don’t shop around.
The difference of $1,400 for the same diamond
In a revealing experiment, journalists bought 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 purchased from well-known online retailer Blue Nile for $1,639.23 (Canadian dollars). The second diamond was purchased from a seller on Alibaba for just CA$228.86.
Despite the huge price difference, independent appraisers confirmed that the stones were identical in quality.
One appraiser even 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 high markups and branding.
Why the discrepancy?
The laboratory diamond industry currently resembles the Wild West. Because these bricks are a manufactured product, they benefit from economies of scale. As production increases in hubs like China and India, the cost of creating it falls.
However, many retailers still price them based on traditional diamond mystique, rather than actual production costs. As industry analyst Paul Zimnisky noted in the study, some retailers are selling bricks for thousands of dollars that they probably bought for less than $100.
How to avoid the rip-off
The takeaway isn’t necessarily that you buy your engagement ring from a random seller on Alibaba — that comes with its own risks regarding shipping and returns — but rather that you treat lab-grown diamonds like any other technology product: Compare prices aggressively.
- Don’t assume the first price is the standard price: Prices for the exact same specifications can vary by more than 80% between retailers.
- Check the certificates: Legitimate lab-grown diamonds should be accompanied by reports from organizations such as the International Gemological Institute (IGI).
- Get a valuation: If you find a deal that seems too good to be true, independent appraisals can verify that the stone matches the description.
The prices of lab-grown diamonds are falling rapidly. Don’t let a fancy brand name convince you to pay 2020 prices in 2026.
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