If you are thinking about buying a lab-grown diamond, you might have one big question in your mind: Will it have resale value?
Diamonds, whether natural or lab-created, are more than just beautiful stones. They are also often seen as an investment. But when it comes to lab-grown diamonds, there are a lot of mixed messages out there about how much they can be sold for later.
In this complete guide, we will break down what resale value means, how lab-grown diamonds compare to natural ones, what affects their price, and what you can do if you ever want to sell yours. By the end, you will have a clear picture of what to expect before you buy.
What is a Lab-Grown Diamond?
A lab-grown diamond is a real diamond created in a controlled laboratory setting using advanced technology that replicates the natural conditions under which diamonds form in the earth.
Made of pure carbon, they have the same sparkle, hardness, and durability as mined diamonds, but are typically more affordable and ethically sourced since no mining is involved. Only specialized equipment can tell them apart from natural diamonds.
Understanding Lab Grown Diamond’s Resale Value
Resale value is the amount of money you can get when you sell an item after you have bought it. In the diamond world, resale value depends on several factors:
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Market demand
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Supply availability
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Quality and characteristics of the diamond
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Where and how you try to sell it
Most diamonds, even natural ones, lose some value as soon as they are purchased. This is similar to what happens with new cars, they tend to be worth less once they leave the showroom. The key difference is that natural diamonds have a long history in the resale market, while lab-grown diamonds are newer and have a different pricing story.
How Lab-Grown Diamonds Are Made
Lab-grown diamonds are real diamonds. They are created in highly controlled laboratories using advanced technology that mimics the natural conditions under which diamonds form in the earth. There are two main methods:
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High Pressure High Temperature (HPHT) – replicates the natural growth process with high heat and pressure.
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Chemical Vapor Deposition (CVD) – grows diamond crystals in a special chamber using carbon-rich gases.
Both methods produce diamonds with the same chemical, physical, and optical properties as mined diamonds. They can be graded by the same labs, such as GIA or IGI, and come in all shapes, sizes, and colors.
Why People Choose Lab-Grown Diamonds
Before looking at resale value, it helps to understand why people choose lab-grown diamonds in the first place:
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They cost less than natural diamonds of similar quality.
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They are ethically sourced, with no mining involved.
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They are environmentally friendly compared to traditional mining.
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They are available in a wide range of sizes and designs for the same budget.
Because of these benefits, more couples and jewelry buyers are considering lab-grown stones as their main choice.
The Current Reality of Resale Value for Lab-Grown Diamonds
Here is the honest truth: lab-grown diamonds usually have a lower resale value than natural diamonds, and in many cases, they do not resell for anywhere near their original purchase price.
Why?
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Rapidly changing technology: Lab-grown diamonds can be produced faster and more efficiently every year, which lowers market prices for new stones.
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High supply: Since production can be scaled up, there is no rarity factor like with natural diamonds.
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Market maturity: The resale market for lab-grown diamonds is still young and developing.
When you try to sell a lab-grown diamond, jewelers and buyers know they can purchase a brand-new one from a wholesaler for less than what you paid. This affects how much they are willing to offer for your stone.
Comparing Resale Value: Lab-Grown vs. Natural Diamonds
If you buy a natural diamond, you will usually get a higher percentage of your money back when selling it compared to a lab-grown diamond of the same quality. This is because:
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Natural diamonds are rare and cannot be reproduced.
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They have been traded for hundreds of years and have a well-established resale market.
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They are often seen as a long-term investment.
For lab-grown diamonds, resale value is still much lower because they are easier to produce and there is no rarity factor. Over time, this may change if demand increases or production slows, but for now, that is the reality.
Factors That Affect Lab-Grown Diamond Resale Value
While resale value is generally lower, several factors can influence how much you might get if you decide to sell.
1. Quality of the Diamond
The Four Cs of diamonds (Carat, Cut, Color, Clarity) still matter. A lab-grown diamond with a higher grade in these categories will likely sell for more than a lower-quality one.
2. Certification
Having a grading report from a reputable lab such as GIA or IGI adds credibility and can help in the resale process.
3. Market Trends
Diamond prices, both natural and lab-grown, are influenced by global trends, fashion, and technology. If demand for lab-grown diamonds rises, resale prices could improve.
4. Where You Sell
Selling directly to a buyer may get you more than selling to a jeweler, who needs to make a profit on resale. Online marketplaces, auction sites, and consignment stores can yield different results.
Where Can You Sell a Lab-Grown Diamond?
If you ever decide to sell your lab-grown diamond, you have a few options.
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Jewelry Stores - Some jewelers buy back lab-grown diamonds, but offers are often low compared to the original price.
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Online Diamond Buyers - Several websites specialize in buying both natural and lab-grown diamonds. They provide shipping kits and appraisals before making an offer.
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Private Sale - Selling directly to a private buyer through friends, family, or social media may allow you to get closer to your desired price, but it requires time and trust.
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Auction Houses - Some auction platforms are starting to accept lab-grown diamonds, especially larger stones with certification.
Tips to Maximize Your Lab-Grown Diamond’s Resale Value
If you want the best chance of getting a good price when selling:
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Keep all original paperwork, certificates, and receipts.
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Maintain the diamond in excellent condition.
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Sell during times of higher demand, such as around engagement season.
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Consider setting the diamond in a piece of jewelry to add value for resale.
Should You Buy a Lab-Grown Diamond if Resale Value is Low?
This depends on your priorities. If you are buying a diamond primarily as a financial investment, a natural diamond is more likely to hold its value. But if you are buying for beauty, size, ethics, or budget reasons, a lab-grown diamond can be a fantastic choice.
Many buyers focus on the joy of owning the diamond and wearing it, rather than worrying about future resale. The money saved when buying a lab-grown stone can be spent on a larger size, a more elaborate setting, or even on other experiences.
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The Emotional vs. Financial Side of Diamonds
Diamonds often carry deep emotional meaning. Engagement rings, anniversary gifts, or heirloom pieces are treasured for the memories they represent. In these cases, resale value may not be a priority.
However, if you think you may want to trade in or upgrade in the future, it is important to understand how the market treats lab-grown diamonds right now.
Discover Monisha Melwani´s selection of lab-grown diamond engagement rings and wedding bands.
The Future of Lab-Grown Diamond Resale Value
The jewelry industry is evolving. Lab-grown diamonds are becoming more common in engagement rings and fine jewelry. As they gain more acceptance, the resale market could grow stronger.
Some experts believe that as technology improves and production costs stabilize, resale prices may level out. Others think the ability to produce unlimited stones will always keep prices lower.
For now, it is best to buy a lab-grown diamond with the understanding that you are purchasing it for enjoyment, not investment.
Questions People Often Ask About Lab-Grown Diamond Resale
1. Do lab-grown diamonds ever increase in value?
It is rare for them to increase in value. Most lose value after purchase due to competition from new stones at lower prices.
2. Can you trade in a lab-grown diamond?
Some jewelers offer trade-in programs for lab-grown diamonds, but the value will typically be much lower than the original purchase price.
3. Is it better to buy a lab-grown diamond if I want to upgrade later?
If upgrading is part of your plan, check with your jeweler first to see if they accept lab-grown stones for trade-in.
4. Do lab-grown diamonds look different from natural ones?
No. Visually and chemically, they are the same. Only specialized equipment can tell them apart.
Conclusion
Lab-grown diamonds are real diamonds with the same sparkle, durability, and beauty as natural ones. They offer incredible value when it comes to size, quality, and ethical sourcing. However, their resale value is generally lower than that of natural diamonds because they are easier to produce and have no rarity factor.
If you are buying a diamond as an emotional purchase or a beautiful piece of jewelry to enjoy for years, a lab-grown stone can be a perfect choice. If your main concern is financial return, it is important to understand the current market and how resale works.
The most important thing is to choose a diamond that brings you joy. Whether lab-grown or natural, the memories and meaning attached to your diamond will always be priceless.
