Natural vs Lab-Grown Gemstones: Which Should You Choose?

Natural and lab-grown gemstones shown side by side to explain their differences

Last updated: August 2026 · Written by The Lilly M. JEWELERS Workshop

Key Takeaways: Natural vs Lab-Grown Gemstones

  • Natural vs lab-grown gemstones is not a question of real versus fake. A laboratory-grown gemstone has essentially the same chemical, physical, and optical properties as its mined counterpart, and the U.S. Federal Trade Commission revised its Jewelry Guides in 2018 specifically to reflect that.
  • The difference is origin, not identity. Natural stones crystallize in the earth over geological time; laboratory-grown stones are produced in a factory in a matter of weeks, by processes such as HPHT and CVD for diamond and flame fusion, flux, and hydrothermal growth for colored stones.
  • Disclosure is a legal requirement. A man-made stone must be described as “laboratory-grown,” “laboratory-created,” or a phrase of like meaning, and it is deceptive under the FTC guides to call it “natural,” “real,” “genuine,” or “precious.”
  • The two behave very differently as assets. Laboratory-grown prices have fallen sharply as production has scaled — industry analyst Edahn Golan recorded lab-grown diamond wholesale prices down roughly 37 percent year on year in 2025 — while natural stones derive their value from finite geological supply.
  • Lilly M. sets natural gemstones by choice, for reasons of rarity, heritage, and the antique-inspired tradition our work belongs to — a position we hold while stating plainly that laboratory-grown stones are genuine gems, not imitations.

What Is the Difference Between Natural and Lab-Grown Gemstones?

Natural gemstones form in the earth over millions of years; laboratory-grown gemstones are produced in a factory in weeks. Because the two are the same material chemically and physically, neither is fake. The real decision is between geological rarity and history-tested value on one side, and lower cost and larger size on the other.

Natural vs Lab-Grown Gemstones at a Glance

Factor Natural gemstone Laboratory-grown gemstone
Origin Crystallized in the earth over geological time, then mined Produced in a controlled factory process, typically in weeks
Chemistry and structure The reference material Essentially identical — the same crystal, the same optical properties
Is it a “real” gemstone? Yes Yes. It is a genuine gem, not an imitation — but it must be disclosed as laboratory-grown
Rarity Finite supply set by geology Effectively unlimited; supply expands with manufacturing capacity
Price per carat Higher, and set by rarity, quality, and demand Substantially lower, and falling as production scales
Value over time Tied to finite supply; no appreciation is ever guaranteed Wholesale prices have declined steeply since 2023
Identification Separated from laboratory-grown only by a gem laboratory Requires trained equipment; not visible to the unaided eye
Our workshop What we set, as a matter of house policy Not used in our pieces

What Does “Natural vs Lab-Grown” Actually Mean?

The phrase invites a misunderstanding, so it is worth dismantling at the outset. When people ask about natural vs lab-grown gemstones, they usually mean to ask which one is real. That is the wrong axis. Both are real gemstones; they differ in where they came from, not in what they are.

A natural gemstone crystallized in the earth, without human intervention in its formation, and was then recovered by mining. A laboratory-grown gemstone — the terms “laboratory-created,” “lab-grown,” and “lab-created gemstones” all describe the same thing — is the identical mineral, grown deliberately in a factory under controlled conditions. According to the GIA, a laboratory-grown stone “shares virtually all chemical, optical, and physical characteristics of its natural mineral counterpart.” A laboratory-grown ruby is corundum, exactly as a mined ruby is corundum. A laboratory-grown diamond is crystallized carbon, exactly as a mined diamond is.

Two further categories are frequently confused with laboratory-grown stones and should be separated from them:

  • Imitation or simulant. A material that looks like a gem but is chemically different — cubic zirconia standing in for diamond, glass standing in for emerald. This is the only category that is fair to call “not real,” and it is distinct from a laboratory-grown stone.
  • Treated natural. A mined stone whose appearance has been improved by heat, oiling, irradiation, or dye. “Natural” does not mean “untreated” — most rubies and sapphires on the market are heat-treated, and the treatment must be disclosed regardless of the stone’s natural origin.

So the honest framing sets a genuine mined stone against a genuine manufactured one, with imitations and treatments as separate questions entirely.

Related: Gemstone Meanings & Symbolism: The Complete Guide

How Are Lab-Grown Gemstones Made?

Growing a gem is not new. The GIA records that “in the late 1800s, ruby became the first gem to be created in a laboratory by Auguste Verneuil,” who “in 1902 announced the development of his flame-fusion process.” Laboratory gemstones are, in other words, older than the Art Deco period itself — a point we return to below, because it has direct bearing on antique-inspired jewelry.

The method depends on the stone.

Process How it works What it produces
Flame fusion (Verneuil) Powdered feed is melted in a flame and crystallized onto a rotating pedestal. The oldest and most economical method Synthetic corundum (ruby, sapphire) and spinel
Flux growth The ingredients dissolve in a molten flux and crystallize slowly as it cools. GIA notes crystal growth “can take up to a year, and the equipment is very expensive” Emerald, ruby, sapphire, alexandrite, and spinel
Hydrothermal growth Heat and pressure in a sealed vessel imitate the conditions deep in the earth. GIA calls it “the only method for successfully growing synthetic quartz” Quartz and, in some laboratories, emerald
HPHT (diamond) High Pressure, High Temperature. Carbon is held at 1,300–1,600 °C and above 870,000 psi to “replicate the extreme heat and pressure conditions deep within the earth” Diamond
CVD (diamond) Chemical Vapor Deposition. A hydrocarbon gas is broken down in a vacuum chamber and carbon settles onto a diamond seed in thin layers Diamond

The two diamond methods, HPHT and CVD, are the ones that have changed the market most, because they have become fast and inexpensive enough to produce gem-quality diamond at industrial scale. That scale is the whole story behind the price movements discussed further down. The colored-stone methods are older and, in the case of flux and hydrothermal emerald, slow and costly enough that laboratory-grown colored stones have never displaced natural ones the way laboratory-grown diamond has begun to.

Are Lab-Grown Gemstones Real? What the FTC Actually Says

They are real, and the position is not a matter of opinion — it is written into U.S. trade regulation. In 2018 the FTC revised its Jewelry Guides (16 CFR Part 23) and removed the word “natural” from its definition of a diamond. The Commission’s reasoning was direct: laboratory-grown stones “have essentially the same optical, physical, and chemical properties as mined diamonds. Thus, they are diamonds.”

That single change reframed the whole conversation. A laboratory-grown diamond is a diamond; a laboratory-grown sapphire is a sapphire. What the guides then require is honesty about origin, and they are precise about it:

  • Disclosure is mandatory. A man-made stone must be described “with equal conspicuousness” as “laboratory-grown,” “laboratory-created,” “[manufacturer name]-created,” or a phrase of like meaning, so that a buyer is never left to assume it was mined.
  • Certain words are off-limits for a man-made stone. Under the guides it is deceptive to use “real,” “genuine,” “natural,” “precious,” or “semi-precious” to describe a gemstone that was produced artificially.
  • “Cultured” is allowed only with a qualifier. A laboratory-grown stone may be called “cultured” only when the term is immediately accompanied by a disclosure such as “laboratory-grown,” never on its own.
  • “Synthetic” was quietly retired. The FTC removed “synthetic” from its list of recommended disclosure terms, on the reasoning that consumers may wrongly read it to mean “fake.” Gemologically the word is accurate; commercially the FTC judged it misleading.

Workshop insight: The regulation draws exactly the line we draw at the bench. A laboratory-grown stone is not an imitation and we will never call one fake. What matters is that the word “natural” is reserved, by law and by our own practice, for a stone that formed in the earth. When we describe a stone as natural, that word is doing real work, and it is the same work the FTC guides protect.

Do Natural and Lab-Grown Gemstones Hold Their Value Differently?

This is where natural vs lab-grown gemstones stops being a question of chemistry and becomes a question of economics, and it is the difference a buyer feels most over time. A gemstone’s price is set by supply and demand, not by its atomic structure — and the supply of the two could not be more different.

Natural stones exist in finite quantity. A laboratory can make more laboratory-grown stones whenever it builds more capacity, and it has. As diamond-growing capacity expanded, wholesale prices fell steeply. The diamond-industry analyst Edahn Golan recorded laboratory-grown diamond wholesale prices down roughly 37 percent year on year by the third quarter of 2025, with a round, one-carat, laboratory-grown diamond trading wholesale around 73 U.S. dollars per carat — a fraction of what the equivalent commanded only a few years earlier.

We state two things about this, and we are careful to state no more:

  • A laboratory-grown stone is an excellent way to obtain a large, clean, bright gem for a given budget today. On a purely visual basis, a buyer gets more stone for the money.
  • A laboratory-grown stone should be bought for the pleasure of wearing it, not as a store of value, because the price of the material itself is falling as it becomes easier to make.

What we will not do is complete the sentence in the other direction. We do not tell clients that a natural stone is an investment, or that it will appreciate, because no gemstone should be sold on a promise of financial return. A natural stone’s value rests on finite geological supply and on demand that has held for centuries; that is a genuine distinction from a manufactured material, and it is as far as an honest jeweler should take the point.

Related: Diamond Meaning, Symbolism & April Birthstone

How Can You Tell Natural and Lab-Grown Gemstones Apart?

You generally cannot, by eye, and neither can most jewelers without instruments — which is precisely why disclosure and documentation matter so much. Because a laboratory-grown stone is the same material as its natural counterpart, the differences are not in color or brilliance but in the microscopic record of how the crystal grew.

A gem laboratory separates them by reading that record: the pattern of internal growth, the type and arrangement of inclusions, and the way a stone responds to ultraviolet light and to specialized spectroscopy. For diamond, the GIA notes that “in some cases, a trained gemologist can recognize” laboratory-grown material with standard equipment, while “in other cases, identification requires testing the diamond using advanced scientific instruments.” The GIA and other laboratories now issue reports that state a stone’s origin explicitly, and a laboratory-grown diamond receives a distinct Laboratory-Grown Diamond Report rather than a natural-diamond grading report.

The practical guidance that follows is simple:

  • Buy the paperwork, not the promise. For any significant stone, a report from a recognized laboratory stating natural or laboratory-grown origin is the only reliable proof. A seller’s word, however sincere, is not identification.
  • Be wary of a natural price on an undisclosed stone. Since laboratory-grown material now costs a fraction of natural, an unusually large, clean stone at an unusually low price warrants a report before purchase.
  • Keep the documentation with the piece. Origin cannot be re-established casually later; the report travels with the stone for resale, insurance, and inheritance.

Why Does Lilly M. Set Natural Gemstones?

Our house policy is to set natural gemstones, and we hold it deliberately rather than by default. The reasons are specific to the kind of jewelry we make.

Heritage and the antique-inspired tradition. Our work is Art Deco- and Edwardian-inspired, made new in the tradition of period jewelry. A natural stone belongs to that tradition in a way a modern manufactured one does not — and the irony, given the history above, is instructive. Verneuil’s flame-fusion synthetics were available during the real Art Deco period, and genuine 1920s pieces sometimes contain them. We prefer that our antique-inspired pieces carry natural stones, so that the material honors the period rather than merely the look of it.

Rarity as part of the object. A natural stone is a finite object with a geological history; no two are quite alike, and that individuality is part of what a client is choosing. A manufactured stone, by design, can be reproduced.

A value character that suits an heirloom. A piece intended to be worn for decades and passed on is better served by a material whose worth rests on finite supply than by one whose price is falling as it becomes easier to make. We make this point about the object’s character, not as any promise of appreciation.

Workshop insight: None of this is a verdict against laboratory-grown stones, and we will not pretend otherwise to sell against them. For a buyer who wants the largest, brightest stone a budget allows, or who simply prefers a manufactured origin, a laboratory-grown gem is a sound and honest choice. Our position is narrower and more specific: for the antique-inspired, solid-gold work we do, natural stones are the right material, and we would rather explain that plainly than dress it up.

Every stone we set is a natural gemstone in solid gold, and each piece is newly made and antique-inspired — never an antique, an estate piece, or a period original.

Related: Bespoke & Personalization

Which Should You Choose: Natural vs Lab-Grown Gemstones?

There is no universally correct answer, because the two materials are suited to different priorities. The honest way to choose between the two is to decide which of the following matters most to you, and let that settle it.

If your priority is… The better fit is…
The largest, cleanest stone for a fixed budget Laboratory-grown. You will get visibly more stone for the money
A lower up-front cost Laboratory-grown, and increasingly so as prices fall
Geological rarity and a one-of-a-kind stone Natural. Each is a finite object with its own history
A material whose worth rests on finite supply Natural — without treating any gem as a financial investment
An heirloom or antique-inspired piece true to its tradition Natural, for the reasons of heritage set out above
A specific colored stone rarely grown at scale Often natural by default, since most colored stones are not mass-produced in the laboratory

Whichever way the decision falls, two rules hold for both columns. Insist on disclosure — the origin should be stated in writing, never assumed. And match the stone to the setting and the wear, because a gem’s durability depends on its species and hardness, not on whether it was mined or grown. A laboratory-grown emerald is exactly as brittle as a natural one.

Related: Our Guarantee

What Should You Remember About Natural vs Lab-Grown Gemstones?

The debate over natural vs lab-grown gemstones is best held apart from the language of fake and real, because that language answers a question no one should be asking. A laboratory-grown stone is a genuine gem with the same chemistry as its mined counterpart, and the FTC rewrote its Jewelry Guides in 2018 to say so. What separates the two is origin and everything that follows from it: a natural stone is a finite object formed in the earth, and a laboratory-grown stone is a manufactured one that can be produced again whenever there is capacity to make it.

That single fact — finite against reproducible — is what the whole lab-grown vs natural question turns on, and it explains the rest. It explains why laboratory-grown prices have fallen as production has scaled, why natural stones command a premium, and why disclosure is written into law. It does not make either one a mistake. A laboratory-grown gem is an honest, cost-effective way to wear a large and beautiful stone today; a natural gem is the right material for a piece meant to last and to be handed on.

Our own choice is settled and specific. For the antique-inspired, solid-gold jewelry we make, we set natural stones — for their rarity, for their place in the tradition our work belongs to, and for the character they give an heirloom. We hold that position while stating plainly that laboratory-grown stones are real gems, honestly sold, and a reasonable choice for a buyer whose priorities are different from ours.


Sources: eCFR — 16 CFR Part 23, Guides for the Jewelry, Precious Metals, and Pewter Industries · Federal Register — FTC Jewelry Guides, 2018 final revision · GIA — An Introduction to Synthetic Gem Materials · GIA — HPHT and CVD Diamond Growth Processes · Edahn Golan — Lab Diamond Wholesale Prices · Jewelers of America

About the author — The Lilly M. JEWELERS Workshop. This guide was written by the workshop team at Lilly M. JEWELERS, the jewelers who design and hand-make our Art Deco and Edwardian-inspired pieces. Every stone we set is a natural gemstone in solid gold. The guidance here reflects what we do at the bench: choosing colored stones, deciding how they should be cut and protected, and carrying out the sizing and repairs that a fine piece needs across a lifetime of wear.


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Frequently Asked Questions About Natural vs Lab-Grown Gemstones

Are lab-grown gemstones fake?

No. A laboratory-grown gemstone is the same material as its mined counterpart, with essentially the same chemical, physical, and optical properties, so it is a genuine gem rather than an imitation. The FTC revised its Jewelry Guides in 2018 to reflect this, removing the word “natural” from the definition of a diamond. What is required is disclosure: a man-made stone must be described as laboratory-grown, never implied to be natural.

What is the real difference between lab-grown and natural gemstones?

Origin, and everything that follows from it. Natural stones crystallized in the earth over geological time and exist in finite supply; laboratory-grown stones are produced in a factory in weeks and can be made again whenever there is capacity. The materials are the same, but their rarity, price, and value over time are not. Natural stones command a premium set by finite supply, while laboratory-grown prices fall as production scales.

Do lab-grown gemstones hold their value?

They are best bought to be worn, not held. Because laboratory-grown stones can be produced in unlimited quantity, their prices have fallen sharply as manufacturing has expanded — the analyst Edahn Golan recorded laboratory-grown diamond wholesale prices down roughly 37 percent year on year in 2025. Natural stones derive their value from finite geological supply, though no gemstone of any kind should be bought as a financial investment or on a promise of appreciation.

How can you tell a lab-grown gemstone from a natural one?

Generally you cannot by eye, and neither can most jewelers without instruments. The differences lie in microscopic growth features, inclusions, and response to ultraviolet light and spectroscopy, which a gem laboratory reads to determine origin. For any significant stone, the only reliable proof is a report from a recognized laboratory stating whether the stone is natural or laboratory-grown; a laboratory-grown diamond receives a distinct Laboratory-Grown Diamond Report rather than a natural grading report.

Does Lilly M. use lab-grown gemstones?

No. We set natural gemstones in solid gold as a matter of house policy, chosen for their rarity, their place in the antique-inspired tradition our work belongs to, and the character they give a piece meant to last. We hold that position while stating plainly that laboratory-grown stones are genuine gems, honestly sold, and a reasonable choice for a buyer whose priorities differ from ours.

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