When people think of diamonds, they usually picture one thing clear, sparkly, and expensive. But the reality? There are different types of diamonds, and understanding them can completely change how you shop, style, and invest.

Whether you’re buying your first piece or curating a collection, here’s a breakdown of the main types of diamonds without the confusion.

1. Natural Diamonds

Natural diamonds are exactly what they sound like formed deep within the Earth over billions of years under intense heat and pressure.

These are the most traditional and highly valued diamonds, often associated with luxury, rarity, and longterm investment.

Why people love them:

• Timeless and classic

• High resale value

• Each stone is completely unique

Natural diamonds form deep inside the Earth’s mantle, about 90–120 miles below the surface.

The process:

• Carbon (pure carbon atoms) is exposed to extreme heat (2,000°F+) and pressure

• Over billions of years, the carbon atoms bond into a crystal structure

• Volcanic eruptions push these crystals up through kimberlite pipes

• They cool and are eventually mined

2. Lab-Grown Diamonds

Lab grown diamonds are real diamonds chemically and physically identical to natural ones but created in a controlled environment using advanced technology.

You literally cannot tell the difference without specialized equipment.

Why people love them:

• More affordable than natural diamonds

• Ethical and sustainable appeal

• Same sparkle, same structure

Lab grown diamonds recreate the same process but in a lab, in weeks instead of billions of years.

There are 2 main methods:

1. HPHT (High Pressure High Temperature)

• Mimics Earth conditions

• Carbon is exposed to high pressure + heat

• Diamond crystal grows around a small “seed”

2. CVD (Chemical Vapor Deposition)

• A diamond seed is placed in a chamber

• Carbon-rich gas is heated into plasma

• Carbon atoms slowly attach to the seed and grow layer by layer

3. Treated Diamonds

These are natural diamonds that have been enhanced to improve their color or clarity.

Treatments can include heat, irradiation, or fracture filling to make the stone appear more vibrant or flawless.

Why people love them:

• Lower cost for a more “perfect” look

• Bold and unique colors available

What to keep in mind:
They’re less valuable than untreated diamonds and should always be disclosed when purchasing.

Treated diamonds are natural diamonds that are enhanced after mining to improve how they look.

Common treatments:

• Heat treatment → improves or changes color

• Irradiation → creates fancy colors (blue, green, etc.)

• Fracture filling → fills cracks to improve clarity

• Laser drilling → removes or lightens inclusions

4. Colored Diamonds (Fancy Diamonds)

Not all diamonds are colorless some come in stunning natural shades like yellow, pink, blue, and even green.

These are called fancy diamonds, and the more intense the color, the more valuable they become.

Why people love them:

• Rare and eye catching

• Statement pieces

• Often seen in high jewelry and celebrity collections

Are Colored Diamonds Natural or Lab-Made?

The answer is: both exist but they’re not equal.

Natural Colored Diamonds

• Form with trace elements or structural defects

• Yellow → nitrogen

• Blue → boron

• Pink → crystal distortion

• Extremely rare and expensive

Lab-Colored Diamonds

• Color is created during growth or through treatment

• More affordable and more available

So yes some are natural, but a lot on the market are enhanced or lab created.

5. Industrial Diamonds

These diamonds aren’t made for jewelry. they’re used in tools, drilling, and cutting because diamonds are the hardest natural material on Earth.

You won’t see these in a ring, but they’re still an important category.

6. Synthetic Diamond Simulants (Not Real Diamonds)

These are often confused with diamonds but are actually different materials designed to look like diamonds.

Common examples include:

• Moissanite

• Cubic Zirconia

Why people choose them:

• Much more affordable

• Great for travel or everyday wear

• Visually similar (but not the same composition)

Moissanite vs Diamond

Main differences:

• Material:

• Diamond = pure carbon

• Moissanite = silicon carbide

• Sparkle:

• Diamond = white sparkle (classic)

• Moissanite = more rainbow/fire effect

• Hardness:

• Diamond = 10 (hardest natural material)

• Moissanite = 9.25 (still very durable)

• Price:

• Moissanite is significantly cheaper

Why Does Moissanite Test as a Diamond?

This is where people get confused.

Most handheld diamond testers don’t actually “detect diamonds”—they detect thermal conductivity (heat transfer).

Diamonds conduct heat extremely well
Moissanite ALSO conducts heat very well

So when you use a basic tester, both can trigger the “diamond” beep

The difference:

• Advanced testers measure electrical conductivity too

• Moissanite conducts electricity differently → that’s how jewelers tell them apart

Why Diamonds Don’t Hold Value Over Time

1. Diamonds Aren’t Actually Rare (Controlled Supply)

Diamonds feel rare, but the market is heavily controlled by companies like De Beers.

• They limit how many diamonds enter the market

• Large stockpiles exist, but supply is released slowly

2. Retail Markups Are Extremely High

When you buy a diamond, you’re not buying it at its “true” value.

You’re paying for:

• Retail markup

• Brand name

• Setting + labor

• Store overhead

The second you walk out, that markup disappears
Resale value can drop 30–60% (or more) instantly

3. There’s No Strong Resale Market

Unlike gold, diamonds don’t have a standardized resale system.

• Jewelers buy diamonds at wholesale prices (not retail)

• Pawn shops offer even less

• Private buyers are hard to find

So you’re selling into a buyer’s market, not a liquid one

4. Diamonds Aren’t Standardized Commodities

Gold = easy (price per gram)
Diamonds = complicated

Value depends on:

• Cut

• Color

• Clarity

• Carat

• Certification

Even two diamonds that look identical can have very different values. This makes resale harder and pricing inconsistent

5. Lab Grown Diamonds Changed the Game

Lab grown diamonds have made diamonds:

• More accessible

• Less “rare” feeling

This has put downward pressure on prices, especially for smaller natural diamonds. And lab diamonds themselves?

• They depreciate even faster because supply is basically unlimited

6. Emotional Value ≠ Market Value

This is the biggest one.

Diamonds are sold as:

• Love

• Commitment

• Forever

But the resale market doesn’t care about that. A ring that meant everything to you = just a stone to a buyer

So… Do Diamonds Hold Any Value at All?

Yes but only in certain cases:

• Large carat stones

• High-quality (top color/clarity)

• Rare natural colored diamonds

• Certified stones from labs like GIA

These can hold value better, but still not like gold or real estate.

Simple Truth (What Most People Won’t Tell You)

• Diamonds are a luxury purchase, not an investment

• You buy them for beauty and meaning, not resale profit

If your goal is “I want my engagement ring to actually hold value (or even grow)”, you have to think very differently than how jewelry is usually marketed.

I’m going to be very real with you:

Most engagement rings are terrible investments
But there are smart ways to structure one so it holds value

If You Want a Ring That Holds Value, Buy This

1. Prioritize the METAL first (not the diamond)

If your goal is value, the safest choice is:

High-karat gold (22k–24k) or platinum

Why?

• Gold has a global, standardized price per gram

• You can sell it anywhere, anytime

• It acts as a store of value and inflation hedge  

Unlike diamonds, gold doesn’t depend on trends or grading

Reality:

• A gold ring = you’re always holding melt value

• A diamond ring = you’re holding retail markup + emotion

2. If You Want a Diamond  It Has to Be Investment Grade

If you must include a diamond, then it needs to be:

• GIA-certified (Gemological Institute of America)

• High color (D–F)

• High clarity (IF–VVS1)

• Larger size (2+ carats ideally)

Why? Because only top-tier diamonds have any chance of holding value

Even then:

• Growth is slow (~2–3% historically for high-quality stones)  

• Resale is still harder than gold

3. The BEST “Investment Ring” Combo

If I were advising you like a client, I’d say:

Option A (Safest)

• Heavy 22k gold band

• Minimal or no diamond

This behaves almost like wearable gold savings

Option B (Balanced)

• Solid gold or platinum band

• One high quality center diamond (not tiny stones everywhere)

Avoid:

• Halo designs

• Lots of small diamonds

• Trendy settings

Because: Small diamonds have almost zero resale value

4. What You Should NOT Buy (If You Care About Value)

Be careful here because this is what most people buy:

• Lab-grown diamonds → depreciate fast

• Small diamond pavé rings → no resale demand

• Designer markup rings → you’re paying for branding

• 14k gold → lower melt value

Final Thoughts

Not all diamonds are created the same—and that’s actually what makes them interesting. At the end of the day, the “best” diamond is the one that fits your style, your values, and your budget.