Lab-grown diamonds (LGDs) are highly sought after because of their ethical origin, low price, and natural appearance. But the one question that continues to nag most of the consumers is: Is it worth the investment? If you are planning to purchase one, you need to know how the resale value of lab-grown diamonds stacks up to natural diamonds and whether it is a smart long-term investment or not. This article cuts through all the things you need to know before buying.
What Is The Lab-Grown Diamond Resale Value?
Resale value is the amount of money you might receive if you sell your diamond in the future. Natural and cultured diamonds, in contrast to gold or platinum, never appreciate. Their resale value usually depends on:
- Market demand
- Brand and certification
- Cut, clarity, carat, and colour (the 4Cs)
- State of the diamond
- Availability of resale channels
Do Lab-Grown Diamonds Hold Value?
In short, lab-grown diamonds are not as valuable as real diamonds when it comes to resale. While they bring unplanned quality and beauty at a lower upfront cost, their resale market is still in the early stages.
Why?
- Increased Supply, Reduced Demand for Resale: Since LGDs are manufactured, their supply is rising astronomically, and that caps prices.
- Few Buyback Plans: The majority of jewelers today do not offer any buyback or exchange option for man-made stones.
- Technological Changes: As technology advances, the cost of production of LGDs simply reduces; older stones cannot compete.
That is not to imply that laboratory-grown diamonds are not an investment opportunity. It is just that they are not an investment product, but a value-for-money luxury.
Lab-Grown vs. Natural Diamond Value
|
CHARACTERISTICS |
LAD GROWN DIAMONDS |
NATURAL DIAMONDS |
|
INITIAL PRICE |
30-60% LOWER |
EXPENSIVE |
|
RESALE VALUE |
LOW TO MODERATE |
MODERATE TO HIGH |
|
MARKET DEMAND |
GROWING FOR NEW SALES, LIMITED RESALES |
STEADY FOR BOTH RESALE AND NEW MARKET |
|
APPRECIATION OVER TIME |
RANDOM |
POTENTIAL FOR RARE, HIGH QUALITY GEMS |
|
ETHICAL AND ENVIRONMENTAL VALUE |
HIGH |
FREQUENTLY QUESTIONABLE DURING MINING |
Can You Resell Lab-Grown Diamonds?
Yes. You can resell lab-grown diamonds, but you'll have to sell them at a significant loss from what you initially paid for them. There are a few retailers and second-hand online portals that will take LGDs to resell or trade in.
Guided Answers:
Tips if resale is a consideration:
- Choose GIA or IGI-certified gems.
- Keep all receipts and purchase certificates.
- Buy from manufacturers that provide buyback guarantees.
- Do not have unrealistic resale hopes.
Are Lab-Grown Diamonds Worth It?
Yes, if value, beauty, and ethics, rather than investment, are your interests.
Although LGDs will not be worth much when they are being resold, they do have some advantages:
- Affordable luxury without diluting the twinkle
- Conflict-free and eco-friendly resources
- Perfect for casual wear, fashion jewelry, and wedding bands
- Ideal for those who wish to have larger, higher-quality diamonds within budget
Thus, if you're purchasing for love, style, or sustainability, not profit resale, lab-grown diamonds are worth it and then some.
The Future of the LGD Resale Market
With greater awareness and acceptability, the secondary market for cultured diamonds can be revolutionized. With more companies entering the market and providing exchange or upgrade facilities, the consumers will ultimately start to benefit from better resale values. And as lab-grown diamonds become mainstream, resale appraisal technologies and policies can evolve, as we've already seen with electronics and automobiles.
Final Thoughts
LGD resale value won't be as strong as natural stones, but in all other aspects, they outperform: price, ecological-friendliness, and availability. And if you're buying a diamond for emotional value and ethical considerations, instead of resale, then LGDs are the choice. Remember, however, that the real value of a diamond is not always measured by its cost, but by what it symbolizes.
Frequently asked questions:
1. Are the long-term values of lab-created diamonds high?
Compared to natural diamonds, lab-created diamonds often have lower resale value. They lose value because they are produced in large quantities and have less demand for resale.
2. May I resell a lab-grown diamond?
Yes, but they have few resale alternatives. They can be bought from secondhand stores or jewelers, but they will pay much less than they initially paid.
3. Why would cultured diamonds' resale price be lower than natural diamonds?
Because LGDs are less costly and easier to produce, they are less uncommon. This greater availability and new technology diminish their use value with time.
4. Is the investment still worthwhile on a lab-grown diamond?
If you're buying on ethical, beauty, or value-for-money reasons. Although LGDs are inexpensive, they are not a good long-term investment.
5. How do resale and natural and synthetic diamonds relate to each other?
Natural diamonds will increase or even appreciate, especially if they are rare. Synthetic diamonds are less expensive but depreciate faster.