Natural diamonds consistently command higher prices per carat than laboratory-grown, synthetic, diamonds, according to a large-scale analysis of online diamond sales in the International Journal of Electronic Marketing and Retailing. This perhaps not-surprising finding does suggest that the two products should be treated as distinct market segments.
The researchers analysed almost 200,000 diamond listings collected from an online retailer. Just over three-quarters of the listings were for natural diamonds, and the remainder were synthetic. They found that carat weight, the diamond’s mass, with one carat equal to 0.2 grams, was the strongest influence on price for both categories. Colour and clarity, which describe a stone’s hue and the presence of internal or external imperfections, respectively, were secondary to mass.
However, when they compared prices across groups defined by carat range, colour and clarity, examining both round and intricately shaped stones, they found that bigger natural diamonds had a higher per-carat value in every subgroup of the round-diamond analysis, while the same broad difference was also found among intricately shaped stones.
The findings bolster the need to make this increasingly important distinction in the jewellery trade. Synethetic diamonds have exactly the same chemical composition and crystal structure as natural diamonds but are produced artificially, using high-pressure, high-temperature synthesis, and chemical vapour deposition. Whereas natural diamonds are mined from natural sources that are millions of years old.
The researchers argue that the observed price differences provide a basis for treating lab-grown diamonds as a separate market and for further research into pricing, investment diversification, and consumer valuation. The analysis also offers a framework for examining how attributes traditionally used to value mined diamonds operate in the growing lab-grown market.
The findings might invite a broader question: why do we attach such extraordinary economic and cultural importance to what are essentially chunks of carbon when much of their value is socially constructed around scarcity, provenance, and the subjective concepts of luxury?
Huang, C., Wang, H.Y. and Zhang, L. (2026) ‘Comparative analysis and price modelling of natural and lab-grown diamonds’, Int. J. Electronic Marketing and Retailing, Vol. 18, No. 5, pp.1–25.
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