The diamond market has shifted permanently. Lab grown diamonds are very cheap, have virtually unlimited supply and share the same characteristics of a natural diamond. But as lab grown production scales, supply expands, and wholesale prices drop, a new reality has emerged in the atelier: the economics of fine jewelry making do not match the economics of melee lab-grown stones.
The Reality of Manufacturing vs. Material
Creating a true piece of fine jewelry is expensive, and raw stones are only part of the equation:
- 18k Gold & Precious Metals: Gold trades at historic highs, meaning raw metal costs represent a substantial investment.
- Master Craftsmanship: Custom CAD design, 3D printing, lost-wax casting, hand-cleaning, precision prong-setting, and final polishing demand dozens of hours from master goldsmiths.
- Overhead & Hallmarking: Official assay verification, engraving, and quality control remain fixed costs regardless of what gemstone is mounted.
When you forge a ring, pendant, or bracelet that costs let’s say €5,000 purely in gold and bench labor, setting it with small lab-grown melee stones creates an inherent imbalance. The stone becomes a negligible fraction of the finished piece’s cost, while the labor and precious metal carry most of the weight.
Two Products, Two Completely Different Categories
Lab-grown diamonds are settling into a very clear tier: accessible, fashion-forward, entry-level luxury. Natural diamonds remain an entirely distinct product category defined by geological rarity, value retention, and heritage – but also, as gold reaches record prices, an luxury accent to a gold-heavy jewel. If a gold brooch that has 10,000 euros worth of gold needs accent small diamonds, no one will put small lab grown diamonds on this jewel.
| Feature | Fine Natural Diamond Jewelry | Lab-Grown Fashion Jewelry |
| Underlying Value | Geological rarity paired with precious metal value. | Primarily aesthetic; manufactured on demand with industrial supply. |
| Material Balance | Setting costs align with the enduring intrinsic worth of the stone. | Setting and metal costs often vastly exceed the stone’s wholesale worth. |
| Purpose | Heirlooms, milestones, generational gifts, long-term assets. | Trend pieces, accessible everyday sparkle, budget-driven size maximization. |
Understanding the Product Difference
Gold jewellery supply and demand remain very strong even in today’s challenging market. In fact melee natural diamond prices remain very strong precisely because of what we highlighted – gold jewels are almost always set with natural melee diamonds and not lab grown diamonds.
Therefore when people speak about natural and lab grown diamonds, one core aspect of this market battle is often overlooked – are we speaking about melee diamonds? Pointers (below 1ct)? Or big diamonds? The discussion is most often overly simplistic and ignores the key realities of the day to day jewellery market.
For melee diamonds – natural diamonds still reign supreme.
For larger diamonds – diamods also remain in demand and have largely kept their value.
The pointers – diamonds below 1ct – are where this clash has been most visible and prices for both natural and lab grown diamonds have declined strongly in the past 2 years.
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