The natural diamond: an investor’s nightmare. 

We notice untrue information being put about by various sellers of natural diamonds, who portray the natural diamond as a superb investment or a store of value.

The truth, however, is different, and we consider it important that customers have all the information before they decide to buy.

The following information applies to more than 99% of all diamonds on the market.

You cannot stop progress

Over the past year or two a great deal has changed in the jewellery trade, and one diamond is increasingly coming to the fore: the lab-grown diamond. Small wonder. It is absolutely identical to its natural sibling, yet costs a fraction of its price. Not even an expert in natural diamonds can tell a natural stone from a lab-grown one by sight alone; doing so requires special, expensive equipment and laboratory facilities.

What is more, lab-grown diamonds undergo exactly the same certification as natural diamonds. Over the past few years the price of lab-grown diamonds has fallen to such a level that they are truly within reach of anyone who loves the unique beauty of diamonds, because optically they are every bit as beautiful.

In addition, lab-grown diamonds achieve excellent grades across the 4Cs (carat weight, colour, clarity, cut), so the customer obtains a diamond of wonderful brilliance and beauty at a fraction of the price of a natural one. 

Instead of a ‘dirty natural diamond’ (a poor-quality diamond full of internal inclusions), you can have a perfectly clean diamond, free from inclusions, with unsurpassable brilliance. 

investiční diamant
Investiční diamant (2)

The investor’s nightmare

The arrival of lab-grown diamonds on the market also brought a radical fall in the price of natural diamonds, which until then had had little competition. As demand declined, their price dropped by tens of per cent within a few years, and this brings us to the notion of the ‘investment diamond’, which is often foisted on us as a store of value or even as a means of growing one’s money. 

The market is literally flooded with these ‘investment diamonds’, which dealers often describe as a sound investment but which in reality are more of an investor’s nightmare. The high revenues from often overpriced natural diamonds leave considerable scope for investment in advertising, and so we frequently see articles positively rhapsodising about diamonds appreciating by as much as 30% a year! There is, however, a rather big catch. 

Such appreciation can be achieved only by extremely rare diamonds sold at prestigious auction houses, not by the ‘investment diamonds’ offered by various dealers. Take, for example, a natural diamond offered on the internet as an ‘investment’ stone.

A natural diamond, carat weight 1.01ct, E colour, VVS2 clarity, EX-EX-EX, on sale at a price of CZK 163,000 excluding VAT = CZK 197,230 including VAT! Let us break this price down a little.

  • VAT at 21% is the first loss – more than 20% of this ‘investment’.
  • We shall then work from the price net of VAT, CZK 163,000. The usual margin of the dealer who sold you the ‘investment diamond’ is around 20%, so we reduce this amount by a further 20% to CZK 134,710.
  • That dealer, too, bought the diamond from another, who likewise takes a discount of several per cent here, so the price is reduced further still.

  

The real price of natural diamonds

We are not finished yet, however, because the price of natural diamonds is governed above all by the market, and the market is utterly uncompromising. Suppose you find yourself in difficulties and need money. You reach into the safe and offer this ‘investment diamond’ for sale. 

There are a number of large trading platforms on which dozens of diamonds are offered for sale by people from all over the world. To sell your diamond, you will have to make an offer that is better than the competing ones. Why would anyone buy the same diamond at a higher price? And only now may the shock come for the investor who has been living in the belief that his money was well placed. The price offered will be a fraction of the price you are asking, and nobody will add so much as a single crown to it, even if you produce proof of the purchase price. If you need the money urgently, you will have to sell at this fractional price. If not, you will swallow the bitter pill, put the diamond back in the safe and hope for a better price at some point in the future.

How the price of natural diamonds has developed over the past few years is shown in the chart below. The price fell sharply precisely when lab-grown diamonds entered the market. 

We attach a chart of the natural diamond price trend over the past five years and, once again, leave it to you to judge whether or not a natural diamond is an investment. 

Graf vývoje ceny diamantu (1)
Prsten s laboratorním diamantem (2)

Price comparison with the competition

As a matter of interest, the natural diamond offered elsewhere as an ‘investment’ stone at a selling price of over CZK 197,000 is offered by us for CZK 149,000 including VAT.  

Our company offers natural diamonds at unique prices, and we always acquaint our customers with both of the options open to them and with their advantages & disadvantages. 

We invite you to join us for a cup of good coffee, over which we can talk together about which diamond is the best option for you; you will also have the opportunity to compare a natural diamond with a lab-grown one with your own eyes. 

The decision itself always rests with the customer. Our aim is to provide information that we consider to be correct, objective and fair to the client. In addition, we offer you a unique opportunity to buy natural diamonds at prices that are truly exclusive across the whole of Europe. 

11 reasons why a lab-grown diamond is a better choice than a natural one: 

1 – The myth of investment, rarity and a store of value

Natural diamonds are often presented as ‘investment gemstones’, but the reality tends to be different. Genuine investment diamonds make up only a tiny fraction of the market, and the stones commonly sold for jewellery are mostly not among them. We buy a diamond above all for its beauty, emotion and brilliance – not as a guaranteed investment.
2 – A markedly better price
A lab-grown diamond can cost tens or even hundreds of per cent less than a natural diamond of the same quality. As a result, the customer can afford a larger, cleaner and more beautiful stone at a significantly lower price.
3 – Better colour and clarity
Lab-grown diamonds often achieve higher clarity and better colour than commonly available natural diamonds. Modern technology makes it possible to create magnificent stones with minimal inclusions and maximum brilliance.
4 – The same hardness and brilliance
Natural and lab-grown diamonds are both real diamond. They have the same chemical composition, hardness, optical properties and brilliance. The only difference lies in where they were formed – one in nature, the other in a laboratory.
5 – Indistinguishable to the eye
Without specialist instruments it is practically impossible to tell a lab-grown diamond from a natural one. Both look exactly the same and have the same luxurious appearance.
6 – Ethical origin
Lab-grown diamonds have a clearly traceable origin and are not associated with conflict mining or problematic working conditions. For many customers, the ethical aspect is precisely what makes it an important reason for their choice.
7 – A greener alternative
The mining of natural diamonds has a considerable impact on the landscape and the environment. Lab-grown diamonds represent a more modern and gentler alternative that involves no large-scale mining.
8 – More options for the same budget
For the same sum you can acquire a significantly larger or higher-quality lab-grown diamond. The customer therefore need not compromise between the size, clarity and beauty of the stone.
9 – Rapid technological development
The technology used to produce lab-grown diamonds is constantly being refined. As a result, today’s lab-grown diamonds are practically perfect and rival the very finest natural stones in quality.
10 – A wider range of colours and shapes
Lab-grown diamonds are available in a wide variety of colours and cuts – from classic white diamonds to pink, blue, green or yellow stones, at more accessible prices than natural fancy coloured diamonds.
11 – Luxury without a needlessly high margin
Many customers today are unwilling to pay astronomical sums merely for marketing and artificially created ‘rarity’. A lab-grown diamond offers the same luxurious appearance, magnificent brilliance and prestige without needlessly inflated prices.
Conclusion
The natural diamond has its history, its uniqueness and its tradition. The lab-grown diamond, however, offers a more modern, more accessible and often more practical alternative for our times.
Neither of them, however, should be presented as a guaranteed investment. We buy diamonds above all for the joy, beauty and emotion they bring and for the special moments they symbolise.
Whether you choose a natural or a lab-grown diamond, what matters most is that it brings you joy every day.

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