There is a company called Aether Diamonds that is selling diamonds made entirely from carbon that’s captured from the air. They claim they are transforming atmospheric CO2 into gem-grade diamonds, potentially removing this harmful substance from the planet and offsetting the carbon  footprint related to the other power sources needed to run a manufacturing facility.

The diamond trade in general - including mined diamond operations - is estimated to produce at least 12 million tons of C02 emissions each year. Mining operations have only begun to implement initiatives to reduce their carbon footprint.

In the lab-grown sector of the diamond  business, a lot of electric power is required for production. Many lab-grown companies today are buying clean energy to power their manufacturing processes. But there are still carbon emissions related to manufacturing and shipping goods, and diamond growers who desire to be carbon-neutral have to set off those emissions in other ways.

Has Aether diamonds found a solution that could effectively make lab-grown diamonds carbon negative? 

Aether captures C02 using atmospheric collectors, and they pull the C02 into specialized filters. Next, the C02 is synthesized into a usable hydrocarbon that is ideal for  growing diamonds, and this hydrocarbon is placed into reactors that are used to generate new diamond material.

Right now Aether diamonds are only available through their own diamond jewelry collection on their website consisting of a few dozen styles, and at the time of this writing, there were only 15 loose diamonds available on their site for sale. This is consistent with small growing operations, which typically are using one or two growing machines and as a result have much smaller production  capabilities.

As far as we can tell, there has been no 3rd party verification of these claims, but scientifically what they are claiming is certainly possible. Even though Aether appears to be in its earliest growth phase, this is an exciting development on the lab-grown diamond front; one which we should all keep an eye on as lab-grown diamonds continue to develop as both a beautiful jewelry option and an exciting growth technology. 

According to Marty Hurwitz, CEO of MVI Marketing LLC, “Critical mass of consumer interest is now converging with increasing acceptance of lab-grown diamonds by retailers. This unique moment in time will propel growth for many years to come.” MVI conducted a study in 2019 that indicated that 66% of millennials actively shopping for engagement rings would consider a lab-grown diamond, largely driven by the perception that they can get a larger, better-quality lab-grown diamond for the same or better price as a smaller diamond.

Lab-grown diamonds are not a new concept. They were first introduced in the 1950s. But these diamonds are a relatively new phenomenon in the diamond industry, because it took nearly 50 years to produce lab-grown diamonds with sufficient depth and quality to be used for jewelry purposes. They are made in laboratories using a process called chemical vapor deposition (CVD) or high-pressure-high-temperature (HPHT).

There has been a lot of debate about lab-grown diamonds and how they compare to natural diamonds. Lab-grown diamonds are the same chemical composition as natural diamonds, but they are created under controlled conditions in a production environment.

The reasons people choose lab-grown diamonds are fairly broad. Some consumers like the variety of colors they come in. Fancy pink and blue diamonds do happen in nature, but they are so rare that they are extremely expensive. Color production in the lab is more predictable and controllable, making colorful lab-grown diamonds an affordable choice.

Some people are completely enamored of the technical aspect of lab-grown diamonds. Just as they get excited about a new iPhone, smart watch, or smart home technology, they like the idea of buying a product that is precious and rare in nature, but which humans have figured out how to produce in a laboratory environment.

Some people prefer lab-grown diamonds because of their concerns about mining. Particularly during this time of increased awareness of the dangers of global warming, mining’s impact on deforestation and water pollution is something to be aware of. But it should also be noted that growing diamonds in a manufacturing environment demands a great deal of electricity. So unless the grower has committed to being carbon neutral (which some have), a lab-grown diamond isn’t inherently more responsible than a mining operation.

And finally, many prefer lab-grown diamonds for the price. While the number of companies that have the capacity to mine natural diamonds at scale is quite small and the barrier to entry is high, lab-grown diamonds are much easier to produce and there are far more producers of lab-grown diamonds. This means that the price of a lab-grown diamond is significantly lower than a mined diamond of the same specifications. Consumers have discovered that they can get a lab-grown diamond for between $800 - $1200 per carat, compared to natural diamonds which tend to be $3200 - $3600 per carat.

Lab-grown diamonds are not simply a replacement for a natural diamond. Natural diamonds have thousands of years of history as a symbol of wealth and preciousness, and the association between diamonds and romance has been strongly established. Don’t expect mined diamonds to go away! But research has indicated diamond consumers are interested in owning both natural and lab-grown diamonds for their diamond wardrobe. Part of the appeal may be that it’s completely impossible to tell with the naked eye if a diamond is mined or lab-grown. But part of the appeal is that a woman can expand her diamond wardrobe to include more diamond styles by including lab-grown in the mix.

Lab-grown diamonds also bring a new buyer to the diamond market … a person who did not consider diamonds interesting before due to reasons related to price or social or environmental impact. These buyers represent an entirely new market for jewelry stores that offer both types of diamonds.

The difference in consumer awareness about lab-grown diamonds has changed dramatically in just the past five years. When speaking to consumers about their jewelry needs, keep in mind the many reasons that a lab-grown diamond may be of interest to them, and offer lab-grown as an option when you suspect that it will fit with that consumer’s values and interests.

The diamond industry has long been plagued by environmental concerns and ethical issues, leading many consumers — particularly among Millennial and Gen Z — to feel uncomfortable with mined diamond purchases. Lab-grown diamonds can be an excellent alternative for these buyers, but it's important that you tell the right story and not inflate the sustainability aspect of lab-grown, in order to create and keep trust with these new generations of jewelry buyers.

For consumers who are uncomfortable with mining of any kind, it’s important to have an alternative for them to  consider. But what can you say - and what should you avoid - when speaking to the environmental impact of lab-grown diamonds?

It’s safe to say that these diamonds are made in manufacturing facilities similar to the manufacturing environments that produce all types of goods for home, business, and industry. If your customer’s interest is purely that they do not want to buy something that is extracted from the ground, then this may be sufficient information for them — particularly if you are setting their diamond in recycled gold. 

If your customer wants to know if lab-grown diamonds in general are more responsible than mined diamonds, that’s more difficult to answer. It’s important to share with them honestly that lab-grown diamonds require a lot of electrical power to grow. Some lab-grown diamond companies are certified as carbon neutral, taking steps to use only clean power for production and offsetting their carbon footprint. So in general, it’s not safe to claim that lab-grown diamonds are universally more responsible than mined diamonds, though on a case-by-case basis they may be.

If your customer is concerned about human rights, lab-grown diamonds have less human and social impact, because they don’t damage water systems, cause deforestation, or commandeer  land that belonged to someone else. But presumption of social responsibility is never safe - not just from a lab-grown diamond supplier, but from any manufacturer. It is important to work for greater transparency in all production of consumer goods, and to never make a promise about working conditions that is not backed up by some form of certification or verification.

What if your customer is mostly concerned about price, and is skeptical about what a grower has to “do” to keep prices so low? In this case it’s easy to explain that lab-grown diamonds are less expensive than mined diamonds because they are produced in a manufacturing facility. The cost of setting up diamond production is only a fraction of the cost of finding a new source of diamonds and setting up mining operations, and the quality and size of diamonds produced is also highly controllable. So prices are low because diamonds in the desirable range of size and quality are reproducible.

When we encounter something new and wonderful - like lab-grown diamonds! - we tend to get very enthusiastic about selling them. It’s important to stay grounded in truth when talking to customers, and understand what can and should not be promised. The last thing you want to do is score a big sale, only to have an angry customer come back after doing her research and feel like you deceived her.

One of the things we sometimes hear retail jewelers tell customers is that they should avoid lab-grown diamonds  because they won't hold their value. Let's take a look at the false premise behind this statement.

Let's start by recognizing that diamonds — mined diamonds — are cheaper now than they ever were in the past. One thousand years ago, only kings and high priests were allowed the privilege of owning and wearing diamonds, and today diamonds are available to the masses. This is because before the mid-1300s, diamonds were found, but not mined, so their occurance was quite rare. 

But in the 1800s, when DeBeers unearthed a massive diamond source in Kimberly, South Africa, diamonds became the subject of one of the most successful advertising campaigns in history, "A Diamond is Forever."  Suddenly it was not only possible for every groom-to-be to put a diamond on his bride-to-be (for just the price of two months salary!!), it became culturally expected that he do so. In 1953, GIA came up with a grading system to level the competitive playing field for diamonds and shore up trust in the diamond business. Jewelry stores around the world built entire departments around the engagement ring experience. Savvy merchants created "trade-up" programs, so the young groom who could only put a half carat on his bride's finger for the engagement could trade up to a 1.0 carat stone on their five-year anniversary, and a 1.5 carat stone on their ten-year anniversary. And merchants started talking about the smart "investment" of owning a diamond to young men who needed something more than romance to spur them to buy the biggest diamond possible.

Only, diamonds weren't actually an investment. This was just a salesperson's claim in the process of trying to get a young man to spend a bit more. Yes, diamond values have gone up and down over time, but as a relative holder-of-value, the value of a diamond has consistently trended down, not up.

Does this mean it's not a good idea to own diamonds? Absolutely not!

Consider this. Have you ever heard someone refer to a ruby or an emerald as an investment purchase? Of course not! And rubies and emeralds are considerably more rare than diamonds.

Our point is not that diamonds are a poor investment. It's that nobody should have ever offered the argument of diamonds as an investment in the first place! To a King in the 11th Century a diamond may have had monetary value, but since then diamond mines have been found all over the world, and there are more than enough diamonds to support all jewelry and industrial demand. We have more than enough diamonds. Mined diamonds. And this was all before lab-grown diamonds came into existence!

So when a salesperson claimed that a diamond would "hold its value," this was a sales claim not based on reality. Diamonds are no more or less likely to hold their value than sugar or corn (though they are certainly worth more). So a claim that a lab-grown diamond "won't hold its value like a mined diamond" is a claim based on nothing. 

Trade-in Value Versus Investment Value

It's better to think about mined and lab-grown diamond value in terms of trade-in value rather than investment value. Unless you're out to buy a Ferrari 250 GTO, you're not buying a car for its investment value ... you're buying a car that will get you around in a style that suits you and which will hold enough value to resell or trade against the purchase of a new car in several years.

Lab-grown diamonds can be used in trade-up programs for larger diamonds (and more and more retailers are offering these programs on lab-grown!), and can be traded in at whatever the current value is against a different jewelry purchase. Just like mined diamonds. Lab-grown diamonds can be pawned or sold outright to a 3rd party. Just like mined diamonds. True, lab-grown diamonds tend to be 30% - 50% less expensive to begin with than mined diamonds, so their value will be 30% to 50% lower when you wish to sell or trade them. But there's no loss of investment value, because it was 30% - 50% less expensive to begin with.

Now, we hope we've put that silly argument to bed once and for all.

The Reason to Buy Diamonds is Because They're Beautiful

It's now customary to offer a diamond when requesting someone's hand in marriage. This isn't about investment value. This is about romance, making promises, and showing one's commitment to the world.  Lab-grown diamonds are real diamonds. They have the same physical and chemical properties as mined diamonds. For some people, lab-grown diamonds come with the added benefit of representing the excitement of technological advancement, or of not being party to the environmental and social impacts of mining. For others, a lab-grown diamond is the only way to get a diamond they can afford.

So don't hesitate to buy a lab-grown diamond because of an empty claim about holding value (and don't buy a mined diamond thinking that's a promise you can count on!). Buy a diamond — any diamond — that fits with your values, your budget, and your happiness.