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The Cut

Industry Insights by Diamond StandardIndustry Insights

Should You Invest in an American Diamond or Real Diamonds?

Dec 28, 2023
5 min read
Written by Diamond Standard

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When stepping into the glittering world of gemstone investments, choosing between an American diamond and real diamonds is a crucial crossroads. This decision affects the immediate aesthetic appeal and significantly affects value appreciation and market demand.

Explore an in-depth look at the captivating beauty and lasting value of real diamonds in contrast to the cost-effective appeal of American diamonds. As you navigate the intricate terrain of the diamond market, allow this expert, professional breakdown to guide your decision-making process.

What Are American Diamonds?

American diamonds, commonly known as Cubic Zirconia, are synthetic gems produced in a laboratory setting. They are created from the crystalline form of zirconium dioxide, which bestows upon them a visual similarity to real diamonds.

Due to their man-made nature, an American diamond necklace is significantly more affordable than its natural counterparts. American diamonds fetch only a couple of dollars per carat instead of the thousands of dollars that real diamonds command. The affordable regular price point of American diamonds has made them a popular choice for those seeking the elegance of diamond jewelry without the high price tag.

These stones can be found adorning various items, from American diamond earrings and necklaces to more elaborate jewelry pieces. Their low cost makes them an attractive option for those looking to buy jewelry on a budget without compromising sparkle.

The Timeless Value of Real Diamonds

In contrast to American diamonds, real diamonds are natural minerals that have been formed deep within the Earth over billions of years. Their authenticity and rarity contribute to their higher value and appeal. Real diamonds are an emblem of luxury and are often associated with significant life events and investments.

The value of real diamonds is not merely sentimental; they hold their value over time, partly due to their finite supply. This scarcity plays a crucial role in maintaining their demand and, consequently, their price.

Unlike American diamonds, which can be produced in limitless quantities, the supply of real diamonds is limited, leading to increased demand and higher prices over time. This characteristic makes real diamonds a potentially sound investment for those looking at long-term value retention and appreciation.

Comparing Appearances

While high-quality American diamonds are visually akin to real diamonds, discerning the difference requires a closer examination. To the naked eye and even some trained jewelers, distinguishing between the two can be challenging.

However, upon closer inspection, the two can be differentiated. One of the simplest methods is to examine the stone for scratches. Due to their extreme hardness, real diamonds do not easily accumulate scratches, while American diamonds might show signs of wear over time.

To aid in this comparison, consider the following table, which outlines key appearance factors:

| Feature | American Diamond | Real Diamond | | ---------- | ---------- | ---------- | | Visual Similarity | Nearly identical to the naked eye | Identical | | Scratch Resistance | Less resistant to scratches | Highly resistant | | Brilliance and Fire | High but not as refractive as real diamonds | Exceptional brilliance and fire | | Long-term Appearance | May become cloudy over time | Retains clarity and sparkle |

This table illustrates that while American diamonds offer a semblance of the brilliance that real diamonds possess, there are notable differences in their long-term appearance and resilience.

Chemical Composition and Durability

Beyond appearances, the fundamental chemical composition of American and real diamonds is distinct. American diamonds consist of zirconium dioxide, while real diamonds are made up entirely of carbon arranged in a crystal lattice structure.

This difference in composition is not merely academic; it has practical implications for the durability and longevity of the stone. Real diamonds are renowned for their hardness, ranking at the top of the Mohs scale, which measures scratch resistance. This property ensures that real diamonds can withstand the test of time, maintaining their pristine condition for generations.

The durability of a diamond is one of its most compelling features, especially when considering it as an investment. Durability equates to longevity, and in the case of real diamonds, it also contributes to their desirability and value retention.

When investing in a piece of jewelry or a gemstone, it's crucial to understand how well it will endure through daily wear and the passage of time. The resilience of real diamonds makes them not just a symbol of enduring love but also a potentially enduring asset.

When considering American and real diamonds' investment potential, it's important to analyze current market trends.

While American diamonds, or cubic zirconia, offer a cost-effective alternative for jewelry enthusiasts, they are not typically considered a financial investment due to their abundance and low resale value. In contrast, real diamonds have historically shown stability in their value, particularly high-quality or rare stones that can often appreciate over time.

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The investment case for real diamonds is strengthened by their perceived rarity and the increased demand for natural diamonds as emerging markets grow wealthier. The global diamond jewelry market has consistently grown, indicating a sustained interest in these precious stones.

Moreover, natural diamonds have the potential to hold their value better than lab-grown alternatives because of their limited supply, which can lead to increased prices over time. This aspect of exclusivity and the potential for value appreciation makes real diamonds a more attractive option for serious investors.

Making The Right Choice

Choosing between the different types of diamonds requires careful consideration of several factors. Here is a set of pointers to guide you through the decision-making process:

  • Budget and affordability: Determine how much you are willing to invest and whether you prefer a more affordable option or are prepared to invest in a higher-value asset.
  • Intended use: Consider whether the diamond will be used for special occasions, everyday wear, or as a family heirloom.
  • Investment goals: Real diamonds may be the better choice if you're looking for a long-term investment due to their potential for appreciation.
  • Personal values: Decide if a diamond's authenticity and natural origin are important to you or if you're comfortable with a man-made alternative.

The decision to add diamonds to your investment cart also hinges on personal preferences and the purpose behind the purchase. Whether you're drawn to the elegance of real diamonds or the affordability of American diamond jewelry, it's crucial to filter your options and align your choice with your financial goals, style, and ethical considerations.

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Making the Final Decision

Whether you opt for American or real diamonds comes down to a combination of personal preference, budget, and investment strategy. With their timeless appeal and proven stability, real diamonds may be the preferred choice for those looking to invest in a tangible asset that symbolizes beauty and luxury and holds the potential for financial growth. On the other hand, American diamonds serve as a practical and economical alternative for those who wish to enjoy the aesthetic of diamonds without a significant financial commitment.

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