Lab-Grown vs. Natural Diamonds: What’s the Difference? | Penn Diamonds

Few topics in the jewelry world spark as much debate as lab-grown diamonds vs. natural diamonds.

Are lab-grown diamonds real? Are mined diamonds a better investment? Do lab diamonds hold their value? Why are lab-grown diamonds so much less expensive?

There is a lot of information — and misinformation — surrounding this topic. As someone who works with diamonds every day, I think consumers deserve to understand what they’re actually buying without the fear, pressure, or judgment that can sometimes come with this conversation.

At Penn Diamonds, we specialize in lab-grown diamond engagement rings and fine jewelry, so yes, we are absolutely pro-lab diamond. But that doesn’t mean there is anything wrong with choosing a natural diamond.

It comes down to understanding the differences and deciding where you want to put your money.

First, I Don't Love the Term "Natural Diamond"

You'll often hear the comparison phrased as "natural diamonds vs. lab-grown diamonds."

Personally, I prefer the term mined diamond.

Why?

Because calling one diamond "natural" can unintentionally make it sound like a lab-grown diamond isn't a real diamond — and that's simply not the case.

A lab-grown diamond is a diamond.

Lab-grown and mined diamonds have essentially the same chemical composition, crystal structure, and physical and optical properties. The primary difference is where and how they were formed.

A mined diamond formed within the Earth over a long period of time and was eventually extracted through mining.

A lab-grown diamond is created using technology that recreates the conditions necessary for diamond crystal growth in a controlled environment.

Different origin. Still diamonds.

And this is also why a lab-grown diamond isn't the same thing as a diamond simulant like cubic zirconia or moissanite. Those are completely different materials entirely.

So Why Are Lab-Grown Diamonds Less Expensive?

This is one of the biggest reasons we love working with lab-grown diamonds at Penn Diamonds: your budget can go significantly further.

With a lab-grown diamond, clients can often choose a larger carat weight, higher color or clarity grade, or put more of their budget toward a beautiful custom setting without paying the premium associated with a mined diamond.

For someone shopping for an engagement ring, the difference can be substantial.

Instead of asking, "How much diamond can I afford?" you have much more freedom to ask:

"What diamond and ring do I actually love?"

That is a huge part of why I built Penn Diamonds around lab-grown diamonds. I wanted custom fine jewelry to feel more accessible without sacrificing the beauty of a real diamond.

“Lab-Grown Diamonds Are for People Who Can’t Afford Mined Diamonds”

This is probably one of my least favorite misconceptions surrounding lab-grown diamonds.

Choosing a lab-grown diamond doesn't mean you can't afford a mined diamond. Sometimes it simply means you don't want to spend the additional money on one.

Those are two very different things.

We work with clients who could absolutely afford a mined diamond but intentionally choose lab-grown because they would rather put their money elsewhere. Maybe they'd rather invest the difference, put it toward a home, spend it on their wedding or honeymoon, or simply keep that money in the bank.

And sometimes they just don't see the value in paying significantly more for a diamond based primarily on its origin.

Think about it this way: if you love the look of a beautiful 3-carat diamond, why should choosing the option that gives you that look at a substantially lower price mean you "couldn't afford" the alternative?

Being able to afford something and deciding it's worth spending your money on are not the same thing.

That's something I wish we talked about more when it comes to luxury purchases.

For some people, the history and rarity of a mined diamond are worth the premium. For others, they aren't — and neither decision says anything about someone's financial situation.

At Penn Diamonds, we don't view lab-grown diamonds as the "budget version" of mined diamonds.

We view them as an opportunity to spend differently.

You can choose the carat size, quality, and custom design you truly love while keeping thousands of dollars available for something else that's important to you.

Choosing lab-grown isn't necessarily about what you can afford. It's about deciding what you believe is worth paying for.

But What About Resale Value?

This is where I think the diamond industry needs more transparency.

I don't recommend buying any diamond — mined or lab-grown — because you expect it to become a financial investment.

Diamonds are jewelry. They're something we buy to wear, enjoy, celebrate milestones with, and potentially pass down.

While mined diamonds typically have a higher resale value than lab-grown diamonds, that doesn't necessarily mean you will get back what you originally paid for the diamond.

There is a major difference between having resale value and being an investment.

If you purchase a mined diamond at retail and later decide to sell it, the amount someone is willing to pay on the secondary market can be considerably less than your original purchase price.

Lab-grown diamonds also experience depreciation and generally have lower resale values. We don't hide that fact.

But there's another side of that conversation that often gets overlooked:

Your upfront investment matters, too.

Imagine spending significantly more upfront on a mined diamond because you're concerned about resale value.

Even if that diamond is worth more when you sell it, you also had substantially more money invested in it from the beginning.

With a lab-grown diamond, your initial cost is generally much lower. So while its future resale value may also be lower, the total number of dollars you have at risk can be lower as well.

That's why I encourage clients to look beyond percentages and think about actual dollars.

If you're choosing between two beautiful diamonds, ask yourself:

How much am I spending today, and am I comfortable with that amount regardless of what this diamond may be worth years from now?

If You're Looking for an Investment, Look at the Gold

This is another reason I love fine jewelry.

While I wouldn't recommend looking at your diamond engagement ring as a traditional financial investment, gold itself is a globally traded commodity with an established market value.

That doesn't mean your finished ring will automatically appreciate or that you'll recover its full retail price — craftsmanship, labor, design, retail margins, and other factors are part of what you originally paid for.

But the precious metal itself has an established underlying value.

This is why it's important to separate the conversation about diamonds as jewelry from the conversation about traditional investments.

Your engagement ring should first and foremost be something you love.

Can You Tell a Lab Diamond From a Mined Diamond?

Not simply by looking at it.

A lab-grown diamond doesn't have some obvious visual characteristic that announces, "I'm lab grown."

Both mined and lab-grown diamonds can be graded for characteristics such as carat, color, clarity, and cut, and both can be incredibly beautiful.

The grading documentation/serial number can be used to determine a diamond's origin. Even trained gemologist often can't tell the difference. It often takes specialized equipment to test them.

This is also why transparency from your jeweler matters. You should always know exactly what you're purchasing.

Why Penn Diamonds Chooses Lab-Grown Diamonds

Our decision to specialize in lab-grown diamonds really comes down to one thing:

Value.

I love being able to help someone create the ring they've been dreaming about without telling them they need to spend tens of thousands of dollars to get it.

I'd rather see a client choose the beautiful 3-carat diamond they love, create a custom setting that's completely theirs, and still have money left for their wedding, honeymoon, home, savings, or whatever else matters to them.

To me, luxury isn't about spending the most money possible.

It's about getting something beautiful, well-made, and meaningful at a price that makes sense for you.

Are Mined Diamonds Bad?

No.

And I think that's important to say.

If you've always dreamed about owning a mined diamond and its origin, rarity, or tradition is meaningful to you, there is absolutely nothing wrong with choosing one.

Jewelry is personal.

My goal isn't to convince everyone that mined diamonds are bad.

My goal is to make sure people understand that choosing a lab-grown diamond doesn't mean you're choosing a "fake" diamond or settling for something less.

You're simply choosing a different origin and a different price point.

So, Which Is Better: Lab-Grown or Mined Diamonds?

There isn't one answer for every person.

If rarity, geological origin, and the tradition associated with mined diamonds are important to you, a mined diamond may be worth the additional cost.

But if your priorities are size, quality, customization, and getting the most for your budget, lab-grown diamonds can offer incredible value.

And that's exactly why we're so passionate about them at Penn Diamonds.

We believe you should be able to have the ring you've always wanted without feeling like you have to overspend simply because that's how the jewelry industry has traditionally operated.

Mined or lab-grown, a diamond is still a diamond. The question is how much you want to spend to get the one you love.

At Penn Diamonds, we're here to help you create beautiful custom lab-grown diamond jewelry without the traditional markup — because we believe luxury should make sense.