GIA Lab-Grown Diamond Grading: Understanding the New Quality Assessment Report

In a move that signals a turning point in the evolution of the laboratory-grown diamond market, GIA lab-grown diamond grading has undergone a significant change. GIA has discontinued full 4Cs grading of lab diamonds in the normal range (D–Z). In its place, GIA has implemented a Laboratory-Grown Diamond Quality Assessment Report, which assigns a description of either Premium or Standard. The report also contains information regarding shape, carat weight, and basic proportions.

• Explanation of why GIA discontinued full 4Cs grading for most lab-grown diamonds
• Overview of the new Laboratory-Grown Diamond Quality Assessment Report
• Clear breakdown of Premium vs Standard grading criteria
• Minimum thresholds required for a lab-grown diamond to receive a GIA report
• Explanation of diamonds that fall outside GIA’s reporting standards
• Comparison with other laboratories, including IGI continuing 4Cs grading
• Context around HRD Laboratories discontinuing lab-grown diamond grading
• Pricing, submission requirements, and laser inscription details for GIA reports
• Availability of AGS Ideal addendum reports and ASET light performance analysis
• Discussion of consumer and trade reactions to the grading change
• Market implications tied to supply, pricing, and reproducibility of lab-grown diamonds
• Analysis of whether simplified grading better reflects lab-grown diamond realities
• Clarification that full 4Cs GIA reports are still available in the secondary market
• Expert perspective on how consumers should interpret GIA lab-grown diamond grading going forward

The requirement for the Premium grade is very strict – the diamond must be D color, VVS2 or above, and Triple Ex cut. A grade of Standard will be issued for diamonds at least J in color, VS2 in clarity, and VG in cut aspects. Diamonds that do not meet the minimum requirements for the Standard classification will not be issued a report.

Explaining the rationale for the change “Using descriptive terms for the quality of laboratory-grown diamonds is appropriate as most fall into a very narrow range of color and clarity,” said Pritesh Patel, GIA president and CEO. “Because of that, GIA will no longer use the nomenclature created for natural diamonds to describe what is a manufactured product.”

To underscore the sense that a turning point has been reached, HRD Laboratories has discontinued grading lab diamonds altogether. Other laboratories, most importantly IGI, will continue to provide 4Cs reporting on lab grown diamonds at this time for consumers who require them.

• Lab Diamond Pricing
• Natural Diamonds Vs Lab Grown Diamonds
• IGI Vs GIA Certification

• Color: D
• Clarity: VVS2 and above
• Cut Grade: Excellent
• Polish: Excellent
• Symmetry: Excellent

• Color: E-J
• Clarity: VS and above
• Cut Grade: Excellent (rounds only)
• Polish: VG or better
• Symmetry: VG or better (Good or better for fancy shapes)
  
  

Laboratory-grown diamonds that meet any combination of the ‘Premium’ criteria and the above minimum criteria will be classified as ‘Standard.’ Reports will not be issued for any laboratory grown diamond not meeting the minimum criteria for Standard.

Thus, GIA is structuring quality assessment of laboratory-grown diamonds into three categories; Premium, Standard, and all others. The latter category can be considered sub-standard.

In order to make their reports competitive with other laboratory pricing of lab grown diamonds GIA is charging a fee of $15 USD per carat, with a $15 minimum. Submissions that do not meet the minimum criteria for assessment will be charged a US$5 evaluation fee.

The minimum size for submission is 0.15 carats. Each submitted stone’s girdle will be laser inscribed with the term “Laboratory-Grown” and the GIA quality assessment number.  A printed document with the assessment results will be returned with each laboratory-grown diamond.

For customers interested in the GIA’s AGS Ideal Report, they will still be available for qualifying round and fancy shape lab grown diamonds. The report needs to be requested at the time the diamond is submitted and there is an additional fee for this service. Diamonds that pass the AGS ray tracing system as AGS0 (Ideal) will be issued an addendum report complete with ASET light map. In 2021 GIA acquired the light performance cut grading technology from AGS and began offering the AGS Ideal report as a companion to grading reports on natural and lab grown diamonds. GIA researchers, some of whom were key members of the team that developed the AGS light performance system, have been working on more broadly deploying the technology at GIA. It is expected that the AGS system will be instrumental in bringing cut grades for fancy shape diamonds to standard GIA grading reports in the relatively near future.

There are strong feelings in the market on both the trade side and consumer side regarding lab grown diamonds, with passionate proponents and detractors in both worlds. So it is not surprising that reactions would be strong to the GIA’s change in approach to grading lab-grown diamonds.

As lab grown diamonds were first introduced to the consumer market, manufacturers and merchants positioned them on equal terms with natural diamonds, even using a pricing structure (the “rap list” ) fundamental to natural diamonds, with ever increasing discounts to the price based upon the 4Cs. This continued to a point of absurdity where manufacturers were offering discounts of 98%! This strategy helped to persuade consumers that the product was the same as natural in all respects, only much more affordable. The problem with this approach, from an ethical perspective, is that fine grade variations developed for natural diamonds, especially those at the top of the scale and in larger sizes, represent rarity factors that apply only to diamonds which are inherently limited in supply. As lab grown diamond manufacturing improved, large sizes and top quality have become reproducible at scale. And this is essentially the reality that GIA was responding to with their change.

Still, many consumers, as well as trade members with a financial incentive, have objected vociferously. Some even suggest that it is an attempt by GIA, on behalf of their natural diamond clientele, to disparage lab-grown diamonds. Competition from the lab grown industry has taken significant market share away from natural diamonds in recent years, so it is pretty easy to get traction with conspiracy theories like that. Those with a vested interest in the lab grown diamonds, or with limited knowledge of the business of laboratory grading, have difficulty seeing this as a business decision on the part of a very large institution that must evaluate market trajectories and undertake long range planning. With limitless supply, ever increasing size and quality, and steadily falling price, it is hard to argue that parsing of rarity factors based on natural diamonds is still relevant or required to adequately inform and protect consumers.

It remains to be seen what impact this will have on the market for lab grown diamonds. Prices have been steadily falling over time and are reaching a point where the fees associated with a laboratory report adds significantly (percentage wise) to the cost of the product. Inevitably, merchants seeking to be the low-price leaders will likely opt out of grading reports in order to be price-competitive. The extent to which the consumer market will embrace “un-certified” lab diamonds will probably determine the long range trajectory of this trend.

At the present time, because the change at GIA was made only months ago, there are still plenty of GIA reports in the market with full 4Cs grading. For consumers purchasing lab grown diamonds and wanting a GIA report that provides more specific grading details, there are currently plenty of options available in the market.

GIA is the world’s leading authority in diamond grading having literally invented the grading system that is used by other gemological laboratories across the globe, and having trained most of their gemologists. It is no wonder that many consumers want the assurance of a GIA report for their diamond purchases, whether natural or lab grown. With the change to the Laboratory Grown Diamond Assessment Report GIA has reduced pricing to make the service affordable, and still provides plenty of assurance regarding overall quality. In fact, the Premium grade can be compared to what dealers in the natural diamond trade refer to as “collection goods”. And by offering the AGS Ideal addendum report with ASET light map GIA is still providing the most sophisticated scientific analysis of cut quality for lab grown diamonds.

Shoppers looking for GIA reports with full 4Cs grading can still find plenty of options available on the current market. But benefit will likely accrue to IGI, arguably the market leader in lab grown diamond reporting , as they have announced no plans to discontinue 4Cs grading. This will provide an opportunity for IGI to expand their market share by servicing the many consumers wanting the extra detail that will no longer be provided by a GIA report for lab grown diamonds. But the evolution of this market is dynamic and it is uncertain what changes lie ahead for laboratory reporting of lab grown diamonds.