
Lab-grown diamonds have been gaining popularity in recent years, but one question remains: do they hold value or depreciate? In fact, lab-grown diamonds are made using advanced technology that replicates the natural process of diamond formation, resulting in a diamond that is chemically, optically, and physically identical to a natural diamond.
Lab-grown diamonds can retain their value over time, just like natural diamonds. According to industry experts, lab-grown diamonds have the same resale value as natural diamonds, which is around 40% of their original purchase price. This means that if you buy a lab-grown diamond for $1,000, you can expect to sell it for around $400 in the future.
However, some people may still view lab-grown diamonds as less valuable than natural diamonds due to their man-made origin. This perception can affect the resale value of lab-grown diamonds, potentially leading to depreciation.
Lab-Grown Diamond Value
Lab-grown diamonds have negligible resale value, so if you attempt to sell one, you'll likely receive a fraction of what you paid.

Lab-grown diamonds are particularly susceptible to losing value after purchase, almost as much as natural diamonds. However, their value will drop even further as more are grown and become more common.
Lab-grown diamonds are made of the same chemical makeup and hardness as natural diamonds, and their quality will remain the same over time, but their monetary value will drop.
If you're planning to purchase lab-grown diamonds, be aware that their retail price is likely to drop as more are grown, making them more affordable.
Diamonds, whether lab-grown or natural, are ultra-resistant to scratch and wear, and if kept clean, they won't lose their sparkle.
Resale Value
Lab grown diamonds don't hold their value well, and you can expect to get only a fraction of what you paid for them if you try to resell them. This is because most jewellers won't buy back lab grown diamonds, and even if you can find someone to buy them, you'll likely get a low price.
The resale value of lab grown diamonds can be as low as 10% of their original price, although some people estimate it's more like 30% of the original price. This means if you bought a lab grown diamond for $10,000, you might only get $1,000 or $3,000 back if you sell it.
The quality of the diamond also affects its resale value, with higher quality diamonds being more desirable and thus worth more. However, even top-quality lab grown diamonds may only sell for a fraction of their original price.
Lab grown diamonds can be sold online, but you may need to search for a buyer who specializes in lab grown diamonds. Some online diamond sellers will buy back lab grown diamonds, but you may not get a good price.
It's worth noting that lab grown diamonds can be worth a significant amount of money, especially if they're high quality and in demand. However, they're not worth as much as natural diamonds, and you can expect to pay less for a lab grown diamond than for a natural diamond of the same size and quality.
Comparison to Natural Diamonds
Lab-grown diamonds are a popular alternative to natural diamonds, and one of the main differences between them is their value and price. Lab-grown diamonds are significantly cheaper than natural diamonds, with a 1 carat lab diamond costing around £3,645, compared to £8,085 for a natural diamond of the same quality.
The price of a lab diamond is mainly determined by its size and quality, just like a natural diamond. For example, a 0.30 carat lab diamond costs £1,215, while a 0.30 carat natural diamond costs £1,475.
Lab-grown diamonds do not retain any resale value, which is another significant difference between them and natural diamonds. This means that if you buy a lab diamond, you won't be able to sell it for a higher price in the future.
Here's a comparison of the prices of lab-grown diamonds and natural diamonds of the same quality:
As you can see, lab-grown diamonds are significantly cheaper than natural diamonds, but they also don't retain any resale value.
Price and Value
Lab grown diamonds can significantly drop in monetary value after purchase, with some estimating they can drop to 10% of their original price or lower. This is similar to natural diamonds, which also experience a price drop after purchase.
Lab grown diamonds can sell for over $10,000 for top-quality, brand-new stones, but their resale value is not a reliable investment. In fact, you can expect to sell a lab grown diamond for 30% to 40% less than you paid for it.
The price of lab grown diamonds is mainly determined by their size and quality, with higher quality diamonds being more expensive. For example, a 1 carat lab diamond with excellent cut, F color, and VS2 clarity can cost around £1,800.
Here's a comparison of average lab grown diamond prices and natural diamond prices:
Do Diamonds Hold Value?
Diamonds are known for their beauty and durability, but do they hold their value over time? Lab grown diamonds, in particular, are a topic of interest when it comes to resale value. They can drop to 10% of their original price or lower, while more generous estimators put them nearer to natural diamonds at 30% of the original price.
The quality of a diamond greatly affects its resale value. Lab grown diamonds that are top-quality can sell for over $10,000, but this is an exception rather than the rule. Most diamonds will lose much of their value after wear.
Lab grown diamonds are becoming more common, which means their retail price is likely to drop. This is excellent news for those planning to purchase them, but it also means their value will drop a little more after purchase. You can be sure that a lab grown diamond will stay with you for life's most important moments for years after purchase, due to its hardness and quality.
In terms of resale value, lab grown diamonds don't hold very much value. You may still be able to sell your pieces online, but you won't have too many jewellers willing to buy back worn lab grown diamonds, as they won't be able to sell them again for much profit.
Price & Value
Lab-grown diamonds are generally cheaper than natural diamonds, but their resale value is a different story. While they may retain some value, it's not as high as natural diamonds.
The price of lab-grown diamonds can fluctuate greatly, depending on factors like carat weight, color, and clarity. A 1-carat lab-grown diamond can cost anywhere from $820 to $225,590, depending on the quality and characteristics of the stone.
Lab-grown diamonds are often priced using the Rapaport Pricing Method, which takes into account the 4Cs (cut, color, clarity, and carat). However, lab-grown diamonds can be up to 85% cheaper than natural diamonds of the same grade, due to the efficiency of production and lower investment costs.
Here's a rough estimate of the price difference between lab-grown and natural diamonds:
The resale value of lab-grown diamonds is also a concern, as they can drop significantly in value after purchase. Some estimates suggest that lab-grown diamonds can retain only 10% to 30% of their original price, while others estimate a slightly higher resale value.
Certification and Appraisal
Lab grown diamonds can be certified by reputable organizations like the GIA and IGI, ensuring their quality and value.
A GIA certified lab diamond may cost a little more, but you can be certain of its quality. IGI is regarded as the best certification for lab grown diamonds, offering a more thorough report on lab diamond grades.
Lab created diamonds from Queensmith come with an IGI certification and are also Certified Sustainability Rated Diamonds, providing an independent third-party assurance of their origin, ethics, and environmental impact.
Can Be Certified?
Lab diamonds can be certified by reputable organizations like the GIA and IGI. These certifications ensure the diamond's quality and authenticity.
The GIA certifies both natural and lab diamonds, but IGI is considered the best certification for lab grown diamonds due to its more thorough report. IGI provides a detailed analysis of the diamond's grade, giving buyers peace of mind.
Certification by IGI or GIA may cost a bit more, but it guarantees the diamond's quality. This is especially important when buying lab diamonds, as some graders may over-grade to increase profits.
Lab diamonds can also be certified as Certified Sustainability Rated Diamonds, which includes an independent assessment of their origin, ethics, and environmental impact.
Are GIA Certified?
Lab-grown diamonds have been graded and certified by GIA since 2007. The GIA's Laboratory-Grown Diamond and Identification Reports are the same as those for natural diamonds.
The reports include the same standard GIA color, clarity, and cut grading scales. This means consumers can trust the accuracy of the report, just like with natural diamonds.
Lab-grown diamonds are disclosed as such on the report, and the type of growth process used is also noted. This transparency is a key aspect of GIA certification.
Appraisal Tool:
An appraisal tool is a critical component in the certification and appraisal process. It helps to objectively evaluate the performance of an individual or organization.
The appraisal tool typically includes a set of criteria and standards that are used to assess performance, such as job descriptions, performance expectations, and quality standards.
These criteria and standards are often developed in collaboration with stakeholders, including employees, managers, and customers.
Purchasing and Insurance
Lab grown diamonds can be insured, just like natural diamonds. They are valuable and rare gems that require a significant sum to replace in the event of loss or damage.
To insure your lab diamond ring, make sure your plan covers like-for-like replacement, meaning the replacement ring will be from the same jeweller, for the same value.
You can expect to pay a lower premium for lab diamond insurance compared to natural diamond insurance, given the lower price of lab diamonds.
Purchasing Today
Purchasing Today can be a cost-effective option, especially for lab-grown diamonds which can result in considerable savings.
However, it's essential to consider the resale value of lab-grown diamonds, which will likely be a fraction of the purchase price in the near future.
Can You Insure?
Lab diamonds can be insured, just like natural diamonds. While the price of an artificial diamond is lower than that of natural diamonds, they are still valuable and rare gems that in the event of loss or damage will require a significant sum to replace.
Insurance plans for lab diamonds should cover like-for-like replacement, meaning the replacement ring will be from the same jewellers, for the same value.
Price Evolution and Trends
Lab-grown diamonds have seen a significant price drop over the last three years, with a 1-carat I VS diamond's price dropping from $4,100 to $2,850, a 35% decrease.
This trend is expected to continue as technology becomes less expensive.
The prices of lab-created diamonds can fluctuate greatly, ranging from $820 for a 1.00 carat diamond to $225,590 for an 18.13 carat diamond.
The price of lab-created diamonds is influenced by several factors, including diamond shape, carat weight, color, and clarity.
The most expensive diamond shape is the round brilliant, due to its high brilliance and sparkle.
A 1-carat I VS lab-grown diamond dropped in price by 35% over three years, from $4,100 to $2,850.
Frequently Asked Questions
What are the disadvantages of lab-grown diamonds?
Lab-grown diamonds have several disadvantages, including potential depreciation in value and difficulties with insurance, in addition to concerns about cost, quality, and eco-friendliness. Understanding these drawbacks can help you make an informed decision when considering lab-grown diamonds.
Sources
- https://luminescediamonds.com.au/pages/lab-grown-diamonds-value
- https://www.pricescope.com/lab-grown-diamond-prices
- https://www.queensmith.co.uk/diamond-guides/lab-grown-diamonds/lab-grown-diamonds-price-and-value
- https://brite.co/blog/do-lab-grown-diamonds-hold-their-value/
- https://www.diamonds.pro/education/lab-created-diamonds-prices-value/
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