Diamonds have long been symbols of wealth, but with the rise of lab-grown diamonds, this perception is shifting. For executors managing estates, distinguishing between natural and lab-grown diamonds is crucial for accurate valuations, inheritance tax assessments, and fair distribution.
Understanding the Differences
Natural Diamonds
Formed over millions of years under extreme pressure and temperature deep within the Earth’s crust, natural diamonds are rare and traditionally very valuable.
Lab-Grown Diamonds
Lab-grown diamonds are created in one of two ways:
- HPHT (High Pressure High Temperature)
HPHT is a method used to create lab-grown diamonds by mimicking the natural conditions under which diamonds are formed in the Earth’s mantle. The process involves applying extreme pressure (typically 5-6 GPa) and high temperatures (1,300–1,600°C) to carbon-based materials, causing them to crystallize into diamond. This method is one of the oldest and most common techniques for producing lab-grown diamonds.
- CVD (Chemical Vapor Deposition)
CVD is another process used to grow lab diamonds. In this method, a carbon-rich gas (such as methane) is heated in a chamber, and the carbon atoms are deposited onto a substrate, where they bond to form a diamond crystal. The process occurs at lower pressures than HPHT, typically around 100-300 torr, and temperatures ranging from 700–1,000°C. CVD diamonds tend to have fewer impurities and can be produced with more precision than HPHT diamonds.
Almost Impossible to Tell Apart
While natural and lab-grown diamonds are chemically and physically identical, it is possible for professionals to distinguish between them with specialized equipment. Gemologists can use tools like spectrometers to help them, and lab grown diamonds usually have a laser inscription that is invisible to the naked eye.
Ethical and Environmental Considerations
- Natural Diamonds
Mining practices have raised ethical concerns, including environmental degradation and human rights violations. While the Kimberley Process works to combat “blood diamonds,” challenges remain. - Lab-Grown Diamonds
These are marketed as ethical alternatives, with less environmental impact. However, production still requires significant energy, especially if the process isn’t sustainable.
Legal Implications: Ensuring Accurate Valuation
The distinction between natural and lab-grown diamonds is crucial.
Lab-grown diamonds typically carry a much lower resale value, which can affect the overall estate valuation and inheritance tax assessments.
Executors should ensure accurate identification and documentation to avoid discrepancies and ensure fair distribution of assets.
The introduction of lab-grown diamonds has shaken up the market dramatically.
Mark Littler is co-founder of Swift Values, a nationwide chattels valuations service
