As a diamond trader, you're at the nexus between supply and retail. Your ability to educate, influence, and reinforce the integrity of natural diamonds has never been more vital. 

The market for synthetic diamonds is growing, albeit with its share of challenges. To preserve both client trust and product value, transparent disclosure and strategic positioning of natural diamonds are essential.

We gathered a wide range of sources to create a guide that combines consumer-facing clarity with midstream insights, helping you position yourself confidently in a complex product landscape.

This guide was created to provide you with information that you can share with those you supply, equipping them with the tools needed to accurately inform their buyers about the benefits of natural versus synthetic diamonds.

Diamonds have been in Antwerp since 1447. The current landscape: 

• 1,470 active companies
• 80,000+ diamond shipments/year
• USD 24.5 billion trade value
   

Natural diamonds = 99.5% of trade volume

Source: AWDC 

Diamonds may appear visually identical to the untrained eye, but their origins define their economic value, traceability, and market position. A thorough understanding of the formation processes reveals the essential differences between natural and synthetic diamonds.
 

Key Details:

• Natural diamonds are formed over billions of years (3.5 billion – 500 million years to be exact) under extreme heat and pressure, over 100 miles beneath the Earth’s surface. They reach the surface through volcanic activity and are only found in specific geological regions.
• Synthetic diamonds, by contrast, are created in a matter of weeks through two main processes: High Pressure High Temperature (HPHT) and Chemical Vapor Deposition (CVD). These industrial methods simulate natural conditions in a controlled environment.
• The production of synthetic diamonds is predominantly concentrated in India and China.
   

Synthetic Diamond Production

There are two main processes used to create Synthetic diamonds. The production method used does not affect the look or cost of the polished product. 

Both methods require a tiny diamond crystal, called a “seed,” to serve as a base upon which the stone can be grown. The seed can be natural, but it is commonly grown in a laboratory.
 

High Pressure, High Temperature (HPHT) Method

To create a diamond using the HPHT method, reactors replicate extreme natural conditions, such as immense pressure (5–6 GPa) and temperatures nearing 1,650°C (3,000°F). This process transforms graphite into a distinctively shaped Synthetic diamond crystal in a fraction of the time it takes nature.
 

Chemical Vapor Deposition (CVD) Method

This newer method involves breaking down the molecules of a carbon-rich gas, such as methane, into carbon and hydrogen atoms at temperatures of around 1,100°C (2,000°F). These atoms are then deposited onto a seed plate to produce a square-shaped diamond crystal.

Source: NDC Report p. 12 - 13
 

Natural diamonds are rare and geographically limited, with each stone bearing the mark of geological time and location. Synthetic diamonds are industrial products, produced on demand and without the unique traits of naturally formed gemstones.

Example: It is estimated that the total annual output of all 1-carat natural diamonds could fit into a single 50-liter suitcase, underscoring their natural scarcity. In contrast, synthetic diamond production capacity can be scaled almost indefinitely.

Price volatility is one of the most critical differentiators between natural and synthetic diamonds. Understanding historical trends and current market behavior is essential for effective inventory and margin management.

According to andustry analysts Edahn Golan and Paul Zimnisky: 

• Since 2018, the wholesale price of a 1-carat, near-colorless, VS1 synthetic diamond has declined by approximately 95%, while retail prices have dropped by 76%.
• The price decline has been driven by rapidly falling production costs, which have decreased by 90% in the past decade due to advancements in CVD technology.
• Natural diamonds retain an average of 70% of their original purchase value and exhibit greater price stability over time.
• Larger natural diamonds command exponentially higher prices due to geological rarity, whereas synthetic diamond pricing scales linearly with size.
   

Synthetic diamonds are created with greater efficiency and less material wastage. “Natural diamonds often require cutting away up to 60% or more of the rough.

Source: https://harpersbazaar.com.au/the-difference-between-lab-grown-and-natural-diamonds/ 

Synthetic diamonds experience rapid depreciation, posing a significant risk for inventory held by upstream and midstream players. In contrast, natural diamonds retain more substantial residual value and offer more stable returns over time.

Example:  A 1.5-carat synthetic diamond that sold for $10,750 in 2016 is now available for approximately $1,455, a decline that highlights the unpredictability and volatility of synthetic inventory.
 

Whole synthetic diamond prices (2018 - 2025):

1 carat synthetic: from €1570 (2018) → €90 (2025)

30 pointers: €110 → €25

No resale market, declining demand

Source: Edahn Golan 

Maintaining the integrity of the diamond supply chain requires robust detection protocols and credible certification practices. This is particularly critical to prevent the mixing of natural and synthetic diamonds.

There are more than 20 industry-grade instruments available to detect synthetic diamonds, including the HRD Antwerp M-Screen Ultra, GIA iD100 and De Beers SYNTHdetect. 

“The ASSURE Program has developed a standard to test Diamond Verification Instruments consistently. We partnered with leading manufacturers as part of a shared commitment to maintaining consumer confidence.” David Kellie, CEO, Natural Diamond Council. 

Source: https://www.naturaldiamonds.com/council/assure-testing-program/ 

• One of the most reliable markers of a natural diamond is the presence of nitrogen, which is almost entirely absent in synthetic diamonds.
• Reliable certification from institutions like GIA, IGI, and HRD is crucial for validating the origin and quality of diamonds.
• Grain patterns, fluorescence behavior, and trace element composition are key factors in laboratory identification.
   

Systematic detection is a non-negotiable standard in today’s diamond trade. Only with verifiable certification and thorough testing can midstream players maintain trust and transparency in their supply chain.

Example:  Synthetic diamonds created using HPHT often contain metallic inclusions from catalyst materials like iron or nickel, traits that can be detected with precision instruments, but not with the naked eye.

Claims surrounding sustainability have become a central theme in the diamond market, yet many of these assertions lack transparency and scientific rigor.
 

Are Synthetic Diamonds More Ethical or Sustainable?

Not always.
 

Sustainability depends on various factors, including energy source, water usage, chemical handling, and working conditions. Synthetic production is highly energy-intensive, often relying on fossil fuels for its operations.
 

Carbon Claims

Synthetic diamonds often require temperatures exceeding 2,000°F. Over 70% are produced in China and India, countries where energy grids rely heavily on coal.

“Carbon-neutral” claims are typically achieved through offsetting and often apply only to rough production, rather than the entire supply chain.
 

Carbon Capture

Some companies claim carbon capture as an environmental benefit. However, 1 carat of synthetic diamond stores just 0.2 grams of carbon, equal to one or two emails. A mature tree absorbs 48 pounds (over 21,000 grams) of CO2 annually.
 

Other Greenwashing Risks

• Claims of “mine-free” overlook the need for mined materials in reactors.
• Water-intensive cooling systems operate in water-stressed regions.
• Energy efficiency varies widely between facilities.
   

Social Impact

Synthetic diamond manufacturing supports fewer jobs and offers limited community benefits. In contrast, the natural diamond industry supports about 10 million people globally, providing jobs, education, and infrastructure.

Source: World Diamond Council
 

Key Details:

• Synthetic diamonds require the continuous operation of high-temperature reactors, often exceeding 1,100°C (2,000°F), resulting in substantial energy and water consumption.
• Over 70% of synthetic diamonds are produced in India and China, where fossil fuels are a primary source of energy.
• Claims of carbon neutrality are often based on offsetting schemes and typically refer only to the production of rough stones, not the whole supply chain.
• Natural diamonds, particularly those sourced from responsible mining operations, contribute to economic development, healthcare, and education in the regions where they are produced.
   

Did you know that while 70% of synthetic diamonds are produced in India and China, where fossil fuels are a primary source of energy, some synthetic diamond producers use renewable energy. To verify these sustainability claims, consumers are encouraged to ask for the following: 

• A sustainability certification verifying that the synthetic diamond’s carbon footprint is offset
• Confirmation that the diamond can be traced throughout the supply chain
• Proof that it meets strict social and environmental standards
• Documentation that the diamond was produced with a net-zero environmental impact
   

Source: Brides 

Sustainability narratives must be evaluated based on full life-cycle impact. While some LGD producers claim environmental benefits, many omit the use of fossil fuels, high water consumption, and limited social contribution. Natural diamond producers often support robust environmental and community initiatives.

Example:  A 1-carat synthetic diamond contains only 0.2 grams of carbon, roughly the amount emitted by sending one or two emails. In contrast, a single mature tree absorbs over 48 pounds of CO₂ each year, providing essential environmental services beyond any industrial offset. 

Today’s leading diamond mines operate with a deep commitment to environmental stewardship and ethical labor practices. These aren’t just words; they reflect real action to protect ecosystems, support communities, and ensure long-term sustainability.
 

A Legacy of Care: The Argyle Mine Story

When people talk about pink diamonds, one name always comes up: the Argyle Mine in Western Australia. For 37 years, this world-renowned mine produced over 865 million carats of rough diamonds, including the rare and coveted pink diamonds.

But mining isn’t just about what comes out of the ground; it’s also about what’s left behind.

When Argyle officially ceased operations in November 2020, the work was far from over. The mine’s closure launched a multi-year environmental restoration effort, reflecting the industry’s highest standards for land care and rehabilitation:

• All processing plant infrastructure was safely dismantled, with materials sorted for recycling, reuse, or responsible disposal.
• More than 9 million cubic meters of land were reshaped to restore natural contours and improve stability.
• A large-scale revegetation project, spanning several years, began to help native plant life return and support wildlife habitats.
• To date, over 540 hectares have been rehabilitated, with a long-term plan to restore 2,000 hectares.
• Environmental monitoring and maintenance will continue for at least a decade to ensure a healthy, lasting recovery.
   

This kind of thoughtful, science-led restoration is part of what sets natural diamonds apart. When you choose a natural diamond from a leading mine, you’re supporting a product with a traceable origin and a legacy of responsibility. 

The legal landscape governing the terminology and sale of diamonds has become more robust, with increasing focus on consumer protection and supply chain transparency.

The term “diamond” used on its own must always refer to a natural diamond.

Only three terms are accepted for synthetic diamonds:

• Laboratory-grown diamonds
• Laboratory-created diamonds
• Synthetic diamonds*
   

*Terminology may vary by national regulation. France, the United States, and the United Kingdom all have their own version of the same. 

Terms such as “man-made,” “cultured,” or “above-ground” should not be used in isolation, as they may be confusing.
 

Why does this matter? Some websites list “diamond rings,” only revealing in their FAQs that all stones are synthetic. We believe consumers deserve complete transparency.
 

New Legislation: As of May 1, 2023, in Belgium, sellers must disclose the following before finalizing any sale involving natural or synthetic diamonds:

• Whether the item contains natural or synthetic diamonds
• Whether the diamonds are treated or untreated
• The number and weight (synthetic diamonds must be expressed in grams, not carats) of the diamonds
• The nature of any treatments applied
   

Did you know: Jewelers in Belgium are required to provide this information to their clients on paper (not just digitally). However, if they don’t, we’ve advised consumers of their right to request this. 

More details: AWDC Legislation 

Source: NDC Report, P. 8-9
 

Additionally, the ISO 18323:2015 standard establishes international guidelines for consistent diamond terminology.
 

Most common terminology mistakes:

• Use one of the following authorized qualifiers when referring to synthetic diamonds: “synthetic”, “laboratory-grown”, or “laboratory-created”.
• Do not use “carats” when referring to the weight of synthetic diamonds; that should be expressed in “grams”. 
• Do not use abbreviations such as “lab-grown” and “lab-created”.
• Do not use the following terms: “cultured diamonds” and “cultivated diamonds” as “cultured” and “cultivated” refer exclusively to organic/biogenic products.
• Do not use the following terms: “real”, “genuine”, “precious”, “authentic”, and “natural,” as those apply exclusively to natural minerals and gemstones.
   

Compliance with global and national terminology laws is essential for legal and reputational risk management. This responsibility also falls with you. As a midstream operator, if you do trade with both natural and synthetic diamonds, you must ensure accurate labeling, disclosure, and documentation in all transactions.

Example: In France, only the term "synthetic" is legally permitted for describing laboratory-grown diamonds, emphasizing the importance of region-specific compliance.

We’ve noticed that not all consumers, or even retailers for that matter, know how to read a grading report. 
 

What we’ve shared with consumers & retailers: 

A certificate verifies the 4Cs and confirms whether a stone is natural or synthetic. 

Color, Clarity, Cut and Carat Weight are collectively called the 4Cs of diamond quality. Color measures a diamond’s absence of color. Clarity considers a diamond’s inclusions and blemishes and how they affect its appearance. Cut describes the diamonds fire, brilliance and proportions. Carat weight is the measurement of how much a diamond weighs in metric carats. (Source: GIA) 
 

Choose reports from independent, trusted labs such as: 

• GIA (Gemological Institute of America) 
• IGI (International Gemological Institute) 
• HRD Antwerp 
   

Self-issued jeweler certificates have limited credibility and may affect insurance and resale value. 
 

Tips we’ve shared with consumers:  

• Always ask for a certificate from a reputable grading institute. 
• Understand the 4 C’s and how they interact to affect value. 
• Verify the origin of the diamond to ensure ethical sourcing. 
• Consult an expert if you’re unsure about a diamond’s quality or legitimacy. 
• Not all certification labs adhere to the same grading standards. Less reputable labs may issue overly generous grades, inflating the perceived value of a diamond. Always prioritize reports from recognized institutes like GIA, IGI or HRD Antwerp. 
• Be cautious of vague terms like "certified diamonds" without specifying the issuing institute. A certificate is only as credible as the organization behind it. 
• Advances in technology have made synthetic and treated diamonds indistinguishable to the naked eye. Ensure that the certificate explicitly states whether a diamond is natural or synthetic and discloses any treatments. 
• Forgery is a real concern in the diamond trade. Always verify the authenticity of a certificate with the issuing institute by using their online report verification tools. 
   

More info: AWDC Certification Guide

In a mixed product landscape, midstream businesses play a central role in establishing clarity, protecting value, and reinforcing trust.
 

Opportunities:

• Share information with your customers that they can use in their narrative. We’re part of someone’s milestone, and we should be able to add to that story. 
• Show that you are collaborating with retailers and brands committed to maintaining the prestige of natural diamonds – this could encourage other buyers to work with you.
• Provide transparent information and training to downstream partners.
   

Midstream businesses can lead the industry by reinforcing the authenticity and rarity of natural diamonds. Transparency, traceability, and education are key to maintaining long-term differentiation.

Example: Polar Bear diamonds, sourced exclusively from the Northwest Territories of Canada, are inscribed with a unique code and tracked from mine to market, offering verifiable origin and limited availability that appeal to value-driven buyers.