'Don’t be fake': More Americans are ditching pricey natural diamonds — but is swapping the real thing for lab-grown a financial win? Here's why skeptics question their true value

What's the difference?

Bigger rings, smaller price tags — lab-grown diamonds are shaking up the engagement ring market. As more young couples prioritize financial goals like homeownership, lab-created stones have become an attractive alternative.

"Most people can't afford a two-thousand dollar ring. It makes proposing more affordable for consumers, which is fantastic," Mehul Sompura, founder and CEO of Diamond Hedge, a diamond price comparison firm, told CBS News.

A lab-grown diamond typically runs 60% to 85% cheaper than a natural diamond of the same size and quality. That price gap allows buyers to opt for a larger, more dazzling stone without breaking the bank — or, in some cases, without taking on debt.

According to The Knot 2024 Jewelry & Engagement study, the average cost of an engagement ring nationwide dropped to $5,200 — down from $6,000 in 2021. This dip likely reflecting the financial strain many consumers face under increases to cost of living and inflation.

For some Americans, big financial decisions come down to trade-offs — paying off student loans, covering rent or setting aside savings for a home. While a big engagement ring might be the dream, it’s not always in the budget. That reality is pushing more couples to rethink their options.

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Buyers remain skeptical

While lab-grown diamonds offer an affordable alternative, some buyers remain hesitant — likely due to concerns about long-term value. Unlike natural diamonds, which have historically held more of their original value, lab-grown stones depreciate much faster. Their unlimited supply means they lack the rarity that keeps mined diamonds more valuable.

Natural diamonds have long been tied to tradition, status and sentimentality. Critics argue that a manufactured diamond, while essentially chemically identical, lacks the billion-year provenance and exclusivity that make mined diamonds so desirable.

However, lab-grown diamonds may have an advantage when it comes to sustainability. Unlike natural diamonds, which require mining and excavation, lab-created stones have a potentially smaller environmental footprint.

"The manufacturing of lab-grown diamonds uses exponentially less water, energy, carbon emissions, land and earth mineral disturbance than mined diamonds," Janie Marshall, former head of brand at Clean Origin, a lab-grown diamond seller, told The Knot.

Ultimately, the choice comes down to personal preference. Whether buyers prioritize cost, resale value, environmental impact or tradition, the right diamond depends on what matters most to them.