Skip to content

Why Natural Diamonds Might Be Considered a Better Investment

Why Natural Diamonds might be considered a better investment compared to lab-grown diamonds.

Let’s explore why natural diamonds might be considered a better investment compared to lab-grown diamonds.

1) Scarcity and Rarity: Natural diamonds are formed deep within the Earth over millions of years. Their rarity contributes to their value. Investors often view them as a finite resource, which can drive up prices over time. 

2) Historical Value: Natural diamonds have a rich history and cultural significance. They have been treasured for centuries, symbolizing love, commitment, and luxury. This historical context adds to their allure and investment appeal.

3) Perceived Value: Many investors perceive natural diamonds as more valuable due to their natural origin. The emotional connection associated with natural diamonds can influence demand and pricing.

4) Resale Market: While lab-grown diamonds are gaining popularity, the resale market for natural diamonds remains robust. Established auction houses and collectors continue to trade natural diamonds, providing liquidity for investors.

5) Certification and Grading: Natural diamonds are graded by reputable gemological laboratories (such as GIA or AGS). These certifications provide transparency and assurance of quality, which is crucial for investors.

6) Hedging Against Inflation: Some investors consider natural diamonds a hedge against inflation. Tangible assets like diamonds can retain value during economic uncertainties.

However, it’s essential to note that both natural and lab-grown diamonds have their pros and cons. Lab-grown diamonds offer ethical sourcing, lower prices, and environmental benefits. Ultimately, the choice depends on individual preferences, investment goals, and values. 

In summary, while natural diamonds have historical significance and scarcity, lab-grown diamonds offer affordability and sustainability. Investors should weigh these factors carefully when making their decision.

Learn more why diamonds might be a better investment compared to lab-grown diamonds.

The value of a diamond is determined by the 4Cs of diamond grading and are a miracle of time. Also, no two are exactly alike. GIA developed a well-known international standard to judge diamonds. The Gemological Institute of America (G.I.A.), created the first, and now globally accepted standard for describing diamonds: Color, Clarity, Cut, and Carat Weight. As a result, the 4C’s of diamond quality is the most widely accepted method of determining the quality of a diamond, anywhere in the world.

The Diamond 4Cs

Diamond Cut-

Cut- The most important of the 4Cs is Cut. This refers to a diamond’s proportions and not shape. Also, the quality of a diamond’s cut determines the amount of fire, sparkle, and brilliance the diamond exhibits. Depending on the laboratory report of a particular diamond, it may include a cut grade from “Excellent” to “Poor.” 

Diamond Color- 

Color– This means a diamond’s absence of color. Most “colorless” or “white” diamonds contain trace amounts of yellow, brown, or gray color. The less color in a diamond, the more desirable and valuable it is. The GIA color diamond scale is from “D” to “Z”. 

 To read more about Clarity and Carat, click here.

I am always here for additional questions. Feel free to contact me at Or call as well – 512–231–8502.

Joseph R. Villarreal, Graduate Gemologist (GIA)

Jewelers of America Certified Senior Management Professional
Villarreal – Diamond Engagement Rings & Fine Jewelry – Austin, TX

Share via
Copy link