Are Fake Diamonds Illegal? No, But There Are Important Disclosures

When it comes to buying diamond jewelry, you as a consumer need to be informed on the differences between natural diamonds, laboratory-created diamonds, and simulated diamonds. This guide will provide you with expert insights on diamond terminology, legality, pricing, identification, and whether synthetic diamond alternatives are worth purchasing.

The Legality and Required Disclosures Around Selling Diamonds

Let‘s start by clearly addressing the question – are fake diamonds illegal to sell?

The short answer is no, it is not illegal to sell simulated or lab-created diamonds. However, according to Federal Trade Commission (FTC) guidelines, there are certain disclosures that must be made to avoid misleading claims:

• Diamond simulants like cubic zirconia must be clearly labeled as not "real" diamonds. Terms like "diamond alternative" or "imitation diamond" should be used.

• When selling lab-grown diamonds, marketers must disclose these are man-made, not mined. Terms like "lab-created", "synthetic", or "cultured" diamond can legally be used.

• Any advertisement using the unqualified term "diamond" implies a mined, natural origin. So qualifications are required when selling lab-grown or simulated diamonds.

The FTC monitors jewelry marketing for false or deceptive diamond claims. As long as the proper disclosures on diamond origin are made, selling synthetic diamonds is legal and allowed. [1]

Now that we‘ve addressed the legality question, let‘s delve into comparisons between natural diamonds, lab diamonds, and diamond simulants.

Comparing Natural Diamonds, Lab-Created Diamonds, and Diamond Simulants

While simulants, lab diamonds, and mined diamonds all sparkle, they have some important distinctions:

As this comparison shows, lab diamonds match almost all the qualities of mined diamonds, while simulants differ more significantly in properties. Now let‘s analyze diamond pricing and statistics in more detail.

Pricing Data and Statistics on Lab Diamonds vs. Natural Diamonds

Lab-grown diamonds first entered the jewelry market around 2008, and increase in production volume has brought prices down substantially. According to recent data:

• Average price per carat for a 1 carat lab diamond is around $3,600, compared to $6,100 for a natural diamond, around a 40% discount. [2]

• At the premium end, a 3 carat high-quality lab diamond sells for approximately $13,000. The equivalent mined diamond would be priced around $75,000, an over 80% savings. [3]

• Lab diamond production doubled between 2018 and 2020, indicating prices may fall further as manufacturing scales up. [4]

• In 2020, lab diamonds accounted for an estimated 7% of US diamond sales by volume, and 3% by value. This share is expected to reach 10-15% by 2025. [4]

So while still a minority share, acceptance and demand for lab-grown diamonds continues to gain significant momentum. When concerned with budget, many shoppers are happy to compromise on "natural origins" to get a diamond they love at a more affordable price.

Can Jewelers Reliably Identify Lab Diamonds?

With lab diamonds visually and chemically identical to mined diamonds, can professional jewelers tell them apart?

The short answer is no – not without advanced technological testing. According to Christina Parker, gemologist at RBC Diamonds:

"Many jewelers cannot distinguish a quality lab diamond from its mined counterpart. They look incredibly similar under a standard jeweler‘s loupe."

The primary tool used by gemological labs to separate lab diamonds from natural diamonds is called DiamondViewTM. This device uses UV light to detect ultra-trace elements that cause variances in diamond fluorescence. Trained experts can then interpret these subtle differences to categorize a diamond‘s likely origin. [5]

Without this expensive high-tech analysis, even jewelry professionals struggle to conclusively identify a diamond‘s source. So consumers don‘t need to worry about visual imperfections giving away their lab diamond!

What Industry Experts Say About Lab Diamonds vs. Natural Diamonds

Within the diamond industry, opinions vary on the value and appeal of lab-grown diamonds compared to mined diamonds. Here are perspectives from jewelers on both sides:

"Given the choice, our clients overwhelmingly still prefer natural diamonds. There is just something special about stones with billion-year histories." – Sara McMahon, Luxuria Diamonds

"We firmly believe lab diamonds are the ethical future of the industry. Their quality is outstanding, and clients feel good about the value." – David Schmidt, Clean Origin

Consumers also note benefits like getting a larger stone for your budget with lab diamonds. But some still covet the idea of "natural preciousness".

In my opinion, a high-quality lab diamond is most ideal for those prioritizing size, quality, and budget. However, heritage and sentimental value can still draw many to opt for mined diamonds when price is less of an obstacle.

Additional Things to Know About Lab Diamonds

If you opt for a synthetic diamond, here are some other helpful facts:

• Research diamond origin certification. Groups like GIA and IGI provide unbiased reports on a stone‘s source. Ask to see licenses.

• Custom lab diamond branding is possible. Some producers can inscribe company names or logos inside the stone.

• Care and cleaning is the same as mined diamonds. But avoid some harsh chemicals on settings.

• Watch for undisclosed lab diamonds in the resale market. Not all resellers are upfront about a stone‘s origin.

• Budget at least 40% under equivalent natural diamond prices for a quality lab stone.

The bottom line is there are great lab diamond options for those seeking an ethical, affordable alternative. Just be sure to buy from reputable sources, review certification, and understand possible impacts on resale value and sentiment down the road. Consider your individual priorities as both lab and mined diamonds have their merits.

The Takeaway: Lab Diamonds Are a Legal, Quality Alternative to Mined Diamonds

To summarize:

• Selling simulated or lab-created diamonds is legal, if properly disclosed. The FTC monitors jewelers for misrepresentation.

• Lab diamonds match almost all the qualities of natural diamonds, while simulants differ more.

• Mined diamonds retain the most investment value and meaning long-term for many buyers.

• Advanced lab screening is required for even professionals to distinguish lab from natural diamonds.

• Consumers are increasingly drawn to lab diamonds for the ethical and budget benefits.

So if prioritizing size, quality, and price, lab-grown diamonds offer comparable beauty and sparkle to mined diamonds in a more affordable package. While mined diamonds maintain unique sentimental appeal for many, lab diamonds are a legal quality option with their own advantages. Carefully weigh your priorities and comfort with disclosures when exploring natural, lab-created, or simulated diamonds.