Are you paying more for lab-grown diamonds?

Marketed as an alternative to mined diamonds, lab-grown stones are growing in popularity among engaged couples, looking to take some of the sparkle away from the mined or “natural” diamonds that have traditionally dominated the market.

When Toronto residents Daniel Ng and Olivia Chan were ring-shopping in 2024, choosing a lab-grown diamond was an easy decision, mainly because of the significant price difference compared to the natural stone.

Experts say the price of a lab-grown diamond can be 90 percent less than its natural counterpart.

“The tide has changed. Like, more people are going with lab-grown … things,” Ng said.

Industry experts say lab-grown diamonds are becoming cheaper and more widely available, and confirm that more young couples are going with that option. but a Market The investigation found that nearly identical lab-grown diamonds are being sold at vastly different prices, raising questions about whether some consumers are paying more than they should.

CBC journalists purchased two lab-grown diamonds, one from a major online jewelry retailer Blue Nile and the other from a seller on the online marketplace Alibaba.com.

Both diamonds had the same characteristics: one carat, D-color, ideal cut, VS1 clarity and round shape.

The Blue Nile diamond is priced at $1,639.23 CDN including shipping and taxes. The total value of the diamonds purchased from Alibaba was $228.86.

Market Reviewed prices at other online retailers and found comparable stones listed for up to $1,500 before duties and taxes.

Ng said the price he paid for the chain ring seemed like a good deal. He proposed with the D-color, 2.33-carat, VVS2 lab-grown diamond in May 2025 and said the entire ring would cost less than $6,000 CDN.

The couple was shocked to hear the price of the Alibaba diamond.

“We had no idea,” Chan said.

Why can prices vary for identical lab-grown diamonds?

Paul Zimnisky, a U.S.-based diamond industry analyst and independent board member of Lipari Mining Ltd., said he has seen such price differences, warning that they could create “credibility problems” for the industry.

“I think there is certainly an incentive for jewelers to sell lab-grown diamonds because the profit margins are potentially much higher,” he said. “The sales pitch is, you know, ‘It’s still a diamond, and instead of spending $6,000 (U.S., on a ring), you can get it for $1,000 or $2,000.'”

He said, “It doesn’t change the fact” that the seller likely purchased the lab-grown diamond “at wholesale price for $75, 85, 95.”

“With man-made diamonds, all of them are of good enough quality for jewellery, so they will keep producing them,” he said. “It’s an economy-scale business, so the more they produce, the lower the per-unit cost, and that’s why the price is falling so quickly.”

While Zimnisky said markups are a normal part of doing business, he believes some retailers are pricing lab-grown diamonds “far higher than where they should be.”

“A stone with (a) very similar characteristics can be sold for very different prices,” he said. “You can get the same diamond for $150 (US) or $1,500.”

verification of diamonds

Both are lab grown diamonds Market Those purchased come with a report from the International Gemological Institute (IGI) describing their characteristics.

To eliminate doubts about Alibaba’s purchases, Market sent the diamond back to IGI to verify its certificate of origin, as counterfeiting is a known issue in online markets.

The certificate was confirmed to be valid, so the magazineThen the experts turned to Eddy and Alan Young, two brothers who are accredited jewelery appraisers. To determine whether the Blue Nile and Alibaba diamonds were actually equivalent in quality.

From its Toronto office, Gem Review Inc. In , the brothers placed both diamonds under a microscope. Allen examined the stones to verify their physical characteristics and Eddy completed the formal evaluation.

“Same,” said Eddie Young. “No difference.”

He said the estimated retail value of both diamonds was the same: $1,925 CDN.

When? Market When she told him the cost of both purchases, he was not surprised by the difference.

“What you buy from Alibaba, you can’t usually get at a local jeweler at that price,” he said. “I know they cost the same when you buy direct from (the manufacturer).”

Young said many consumers still don’t realize how cheaply lab-grown diamonds can be produced in manufacturing centers like China and India.

Market Gem Experts Inc. Also consulted with Greg Thompson and obtained a second appraisal for both diamonds. The diamonds were still priced at the same price, but this time the retail price was quoted at $900.

What does the industry say

Market Asked Blue Nile’s parent company, Signet Jewelers, why its diamonds cost significantly more than Alibaba diamonds, despite nearly identical characteristics.

Signet declined an interview but said in a statement that “Customers consistently purchase Blue Nile because of the brand’s reputation, proven track record and reliable quality. Our customers have confidence knowing they are purchasing a product backed by experience and trust.”

The company said they are “proud of strong sourcing standards as well as ethical and sustainable production and procurement processes,” and that the diamonds sold by Blue Nile are from sellers “who are subject to strict annual reporting standards.”

Market The Canadian Jewelers Association (CJA), an industry group that calls itself “the voice of the Canadian jewelery industry”, also raised questions about inconsistent pricing.

CJA also declined an interview but said in a statement that it does not get involved in members’ pricing decisions, calling it “impossible to set uniform guidelines for the industry.”

It also noted that it “does not represent all jewelers in Canada.”

CJA said it encourages members to provide “fair and unbiased information so that the consumer can make an informed choice.”

How to shop better

heel Young said some consumers may be hesitant to buy directly from foreign manufacturers and he encouraged buyers to exercise caution.

He recommends checking reviews, paying by credit card or PayPal, and getting the diamonds appraised to confirm their authenticity.

Young said lab-grown diamonds are “getting bigger and cheaper, so there’s no reason to spend so much money on an engagement ring.”

Zimnisky estimates that typical prices for lab-grown diamonds will eventually approach wholesale levels.

Chan and Ng said they wish they had done more research, but are happy to have a better understanding of the cost now.

“All I think about is I want a diamond necklace for the wedding now,” Chan said of the celebration this summer. They said they plan to shop around and ask more questions for future purchases.

Both said they would like to see more consistent pricing across the industry.

“You don’t want to spend more than you have to,” Ng said.

“I think it’s good that it’s more accessible to everyone,” Chan said. “No gatekeeping diamonds. People are entitled to get what they want at the price at which it can be produced.”