Post Growth Treatment in LGD - A Double Standard?

[Texas Leaguer]

Laboratory grown diamonds are produced in highly controlled environments, but they don’t always turn out exactly the way the grower would like. In many cases their appearance can be improved by post-growth treatment. This is usually done to remove color, thereby making the diamond more ‘colorless”, and this is achieved mainly by High Pressure High Temperature (HPHT) treatment. (There are several other treatments used on fancy color lab diamonds including irradiation.)



There are two distinct growth methods used to produce lab grown diamonds - HPHT and CVD. A large majority of the lab diamonds on the market today are CVD grown and approximately 80% of them require post-growth treatment to remove or reduce brown coloration caused by dislocations in the carbon lattice, atomic vacancies, impurities, strain or other defects. Because post-growth treatment is much more accepted in the consumer market for lab grown diamonds, CVD growers have found that they can grow more diamonds more quickly (reducing costs), and although this results in brown material, they know they can then treat the color in a separate process to improve appearance and commercial value. The net result is a win for the growers.


Image courtesy of GIA – Chart based on submissions to GIA

Both HPHT and CVD diamonds, as well as natural diamonds, can potentially be improved by HPHT treatment. Interestingly, while the equipment used to produce HPHT diamonds is the same, the pressures, temperatures and procedures are different for treatment vs growth. The temperatures at which treatment is done are usually substantially higher than that used in the growth process.

Gemological laboratories like GIA and IGI can easily separate lab grown diamonds from natural diamonds, HPHT from CVD grown diamonds, and in most cases diamonds that have received post-growth treatment from those that have not (aka “as grown”). On diamond reports you will normally see these distinctions noted; if not the precise treatment (usually HPHT), a statement to the effect that the diamond may have been treated. The term “As Grown” appearing on a report would mean that no post growth treatment has been done.

Marketplace Acceptance of Treatments - A Tale of Two Different Products
Shoppers in the market for natural diamonds avoid color treatments like the plague! This stigma is decidedly less common among buyers of lab grown diamonds. And while you hear lab diamonds referred to as “exactly the same” as natural diamonds, they are clearly not the same in some important respects.

One may ask, why does post-growth treatment matter if the diamond is lab grown in the first place? To some people, it doesn’t. To others, getting an “As Grown” diamond of high quality is an indication that the process to produce the diamond was perfect, making it more exclusive. It also negates any worries that the treatment process might not have been completely successful or that there are any negative effects on the diamond from the treatment.

While many shoppers considering lab grown diamonds seem to buy into the logic that since this is a manufactured product, it is irrelevant how many steps there are in the manufacturing process. What matters to them is the final product. On the other side of the issue are those shoppers who strongly prefer a high quality “as grown” diamond that didn’t have to be “fixed”. With more shoppers today buying lab grown diamonds for engagement rings or to commemorate other sentimental occasions, emotion does come into the calculus. And the purity of the process becomes an important aspect of their view of quality and value.

What does it say about the difference between lab grown diamonds and natural diamonds that far more shoppers accept treatments to decolorize labs or to otherwise enhance their appearance? Would love to hear your thoughts!

 

[Karl_K]

$$$$$$$$$$
Whats ok at $1000 is not ok at $10000.
GIA is hiding treatment information from consumers trying to 800lb gorilla a market they tried to kill.

 

[Texas Leaguer]

GIA is hiding treatment information from consumers trying to 800lb gorilla a market they tried to kill.

Which begs the question. Does it matter? Plenty of people are buying lab diamonds with the knowlege they are treated, or the knowlege that they might be treated.

The psychology is interesting because shoppers of lab diamonds are very focussed on the 4 Cs, as shoppers of natural diamonds are. But when it comes to treated stones, natural shoppers are keenly averse while lab shoppers mostly seem not to care.

 

[Karl_K]

Which begs the question. Does it matter?

The market has decided it does.
That GIA thinks its above the market rather than serving consumers and the market is sad.
Its just another attempt by a company that got caught with its pants down to try and gain producer favor at the expense of consumers.
For my own purchases I consider any lgd with a GIA report to be heavily treated cvd with a very high potential for issues unless proven otherwise and value them accordingly..
.

 

[purplesilk]

Which begs the question. Does it matter? Plenty of people are buying lab diamonds with the knowlege they are treated, or the knowlege that they might be treated.

The psychology is interesting because shoppers of lab diamonds are very focussed on the 4 Cs, as shoppers of natural diamonds are. But when it comes to treated stones, natural shoppers are keenly averse while lab shoppers mostly seem not to care.

No, it doesn't matter till the consumers are lead to believe that the HPHT post grow treatment
1) only improves the diamond, which is not true because it causes transparency issues in most of the treated stones;
2) is permanent, which (as far as I read) is not true because high heat can affect it;
3) it's a step of the lab grow process, which leads to accept it without second thoughts.

The lab grown diamond (CVD&HPHT) market has been pushed by the dramatic price decrease and yet the market is doped:
- certification labs & lab grown diamond factories are having benefits from each other: more diamonds to certificate and more lab grown diamonds sold because they come with certificates;
- consumers think that all the certification labs are equal;
- consumers want to believe that LGD are identical to EGD: LGD are cheap, there's no need to compromise on the 4C, so the consumers are able to go beyond their "dream diamonds" that can be mounted on expensive settings and the overall buying experience gets really pleasant;
- HPHT diamonds are more expensive than CVD so the typical consumer thinks: "Since they're both lab grown, why should I spend more to get a HPHT stone?"
- "smart" consumer knows that most HPHT don't pass the diamond test with commonly used diamond tester, so another reason to favor CVD.

 

[Sunrises Sunsets]

Two blocks of wood are setting on a table. The specs lay next to the blocks for wooden bowls. They will be identical with one carved by hand and sanded to perfection, the other turned on a lathe and also sanded to perfection. The handmade bowl takes one month to complete, the lathe bowl takes 2 days.

When finished, they are truly identical. The hand carved bowl commands a price tag of $124. The lathe turned bowl has a small mark on the bottom where it was held by the lathe and is priced at $24. They are both beautiful and some will pay the $124. for a "hand-carved bowl" and most will buy the identical lathe turned bowl for $24. even if they are unaware the small mark on the bottom has been filled and is undetectable.

What about the painting and digging on natural diamonds that is not disclosed on GIA reports for the naturals? The average diamond consumer has no knowledge of that feature but those natural diamonds, graded by GIA, are sold readily.

Just my thoughts...

 

[nala]

Idk. I think that when one accepts that the stone is created in a lab, any other treatments are just viewed as part of this lab science, whereas natural diamond consumers expect the stone to be 100 percent natural. Lack of treatment adds to the rarity aspect of a natural.

 

[Sunrises Sunsets]

Idk. I think that when one accepts that the stone is created in a lab, any other treatments are just viewed as part of this lab science, whereas natural diamond consumers expect the stone to be 100 percent natural. Lack of treatment adds to the rarity aspect of a natural.

Since we've learned earth grown diamonds aren't rare, just a controlled product to appear that way, we've also learned that earth grown stones can be doctored also as I mentioned by painting, digging, drilling, filling and so forth. Tampered diamonds aren't limited to LGDs.

 

[Texas Leaguer]

Since we've learned earth grown diamonds aren't rare, just a controlled product to appear that way, we've also learned that earth grown stones can be doctored also as I mentioned by painting, digging, drilling, filling and so forth. Tampered diamonds aren't limited to LGDs.

What makes something rare? There are probably lots of diamonds sitting between 25 and 100 miles beneath the earth's crust where they form. Does that mean they "aren't rare"?

Rarity is also a factor of availability to the market. Considering that natural diamonds can only become available by means of very isolated geological events, and are very costly to mine, the availability to the market is inherently restricted.

The persistent myth that the mining industry is controlling the product in some nefarious way is a very old one, granted with a historical grain of truth to it. Debeers has long since lost dominance and the ability to control supply as mines outside of Africa were discovered and developed, leading to a much more competitive landscape and contributing to price volatility. If some mining cabal is controlling the availability and price of natural diamonds, they have been doing a lousy job of it!

Painting and digging is punished by the GIA grading system, sometimes to an unfair degree. Some super ideal diamonds such as the EightStar style, which was designed to carefully eliminate vitually all light leakage by using non-standard brillianteering, will earn a VG grade by GIA!

Painting and digging can also be seen in ASET images for customers interested in knowing if this cutting technique has been used. This also enables you to understand intentionality - whether the cutter was trying to "cheat" the stone (retain weight), to make the brightest diamond possible (eliminating leakage), or just random facet tweaks to eliminate inclusions or straighten the girdle line.

Drilling and filling (and a variety of other treatments) are easily identified in the lab and are reported out. And most buyers of natural diamonds avoid them.

 

[Karl_K]

What is kinda funny is that legally in the US all polished diamonds are manufactured goods.

 

[Sunrises Sunsets]

Rarity is also a factor of availability to the market.

Good morning, Brian! At least where I live it's morning...

You've made a perfect example, earth diamonds are only as rare as they are wanted to be rare. If prices weren't plummeting and instead rising like crazy, the digging would be unthwarted. And that speaks nothing to all the earth diamonds in circulation that will soon be remarketed due to boomers dying off, included the ones I own. Rolex watches have also created rarity by reducing production but that rarity is manipulated too. (I love a good Rolex watch!)

And as you indicated in your response, DeBeers did, to some level, create earth diamond rarity where there really is none. If rarity is the gold standard, all that the LGD industry has to do is scale back and have their cutters create only a limited amount of ideal cut stones. Then would all things be equal, one diamond grown by the earth and the other diamond created and grown by the genius of mankind?

And as you also stated, both earth grown and LGD can and have been tampered with for different production reasons. I agree.

Bottom line: there is a place for those who want the identical, hand-carved wooden bowl and a place for those who desires the less expensive, identical wooden bowl. The same goes for diamonds. No harm, no foul.

As an aside, I always enjoy reading your posts, they give me fodder for thought!

The persistent myth that the mining industry is controlling the product in some nefarious way is a very old one, granted with a historical grain of truth to it.

Painting and digging is punished by the GIA grading system, sometimes to an unfair degree. Some super ideal diamonds such as the EightStar style, which was designed to carefully eliminate vitually all light leakage by using non-standard brillianteering, will earn a VG grade by GIA!

Painting and digging can also be seen in ASET images for customers interested in knowing if this cutting technique has been used. This also enables you to understand intentionality - whether the cutter was trying to "cheat" the stone (retain weight), to make the brightest diamond possible (eliminating leakage), or just random facet tweaks to eliminate inclusions or straighten the girdle line.

Drilling and filling (and a variety of other treatments) are easily identified in the lab and are reported out. And most buyers of natural diamonds avoid them.

 

[Texas Leaguer]

And as you indicated in your response, DeBeers did, to some level, create earth diamond rarity where there really is none. If rarity is the gold standard, all that the LGD industry has to do is scale back and have their cutters create only a limited amount of ideal cut stones. Then would all things be equal, one diamond grown by the earth and the other diamond created and grown by the genius of mankind?

Thank you @Sunrises Sunsets for you kind words. And good morning to you.

Above I bolded a couple of statements. Since they were initially discovered in only a few places diamonds have always been rare. Some of those early mines have been exhausted and many closed with few new deposits being discovered (despite furious prospecting!). Natural orgin is a self-limiting.

What you are suggesting the LGD industry (hundreds of producers) do is collusion (artificial price setting), which is what people disliked about DeBeers. Competition will drive the price LGB down to a base production cost, and since an unlimited production is possible, the price will be very low. Natural diamonds, especially today with the decentralized sources, are far less subject to monopolistic control, and prices will be driven by supply and demand.

As an aside, one of my favorite bands has a song where the hook is "sunrise, sunset. Since the beginning, it hasn't changed yet". Great tune - google Little Feat

 

[Sunrises Sunsets]

Thank you @Sunrises Sunsets for you kind words. And good morning to you.

Above I bolded a couple of statements. Since they were initially discovered in only a few places diamonds have always been rare. Some of those early mines have been exhausted and many closed with few new deposits being discovered (despite furious prospecting!). Natural orgin is a self-limiting.

What you are suggesting the LGD industry (hundreds of producers) do is collusion (artificial price setting), which is what people disliked about DeBeers. Competition will drive the price LGB down to a base production cost, and since an unlimited production is possible, the price will be very low. Natural diamonds, especially today with the decentralized sources, are far less subject to monopolistic control, and prices will be driven by supply and demand.

As an aside, one of my favorite bands has a song where the hook is "sunrise, sunset. Since the beginning, it hasn't changed yet". Great tune - google Little Feat

Sunrise, Sunset... epic lyrics in a beautiful song and the older I get the more relevant it becomes. Sigh...

On subject, I'm not suggesting any collusion by LGD producers and let's not give them any ideas! My point was that both markets have an unlimited supply at this point, the only difference is the production decisions. Can you imagine if DeBeers hadn't put the clamp on production so many years ago how many more earth diamonds there would be available at this point. Even if the depth for many diamonds was substantial, the ingenuity of man would recover them. We never thought we would see the bottom of the oceans either. I don't consider rarity for either type of diamond. These are only my thoughts and, of course, others may think differently.

Now if we're talking rarity for natural earth stones, how about alexandrite's availability? If only they were more assessible.