No, lab diamonds are generally not a good financial investment for resale due to rapidly falling prices and increasing supply, but they are an excellent "value" investment for beauty, ethics, and size, allowing you to get a larger, higher-quality diamond for less money than a natural one, making them great for personal enjoyment or heirlooms. The real "value" comes from maximizing sparkle and size for your budget rather than future profit.
The short answer is yes, lab-grown diamonds do have a resale value. However, that value is generally lower compared to natural diamonds. Lab-grown diamonds are often resold at a fraction of their original price, usually around 30-40% of what you initially paid.
The main disadvantages of lab-grown diamonds are their lower resale value and investment potential, due to mass production and increasing supply, and a lack of traditional sentimental value for those who prefer naturally formed gems with geological history. They also face market perception gaps, with some still viewing them as less prestigious or "fake," and their production involves significant energy consumption, though environmental benefits compared to mining are debated.
You should buy a lab-grown diamond if you prioritize affordability, larger size, and ethical/environmental benefits (less mining impact), as they offer the same brilliance and durability as natural diamonds but cost less. However, if you view diamonds as a traditional investment or heirloom, natural diamonds might be preferred, though lab-grown diamonds have negligible resale value and rapidly falling prices, making them a poor financial store of wealth.
They make great costume jewellery, but they are not suitable for sale in a quality jewellery shop. Sure, they are chemically, physically and optically almost identical to natural diamonds and will look flashy and sparkle well. But there is no soul or identity to them.
The answer to our central question is clear: yes, wealthy people increasingly buy lab-grown diamonds—and they do so with full awareness and intentionality. This trend reveals something profound about the evolution of luxury itself. Luxury is no longer measured solely by what is rare or what costs the most.
Types of Diamond Cuts and Their Characteristics
Round brilliant is the most popular and highly sold cut. Its brilliance and symmetry make it timeless. Because of its strong demand, it commands the highest resale value.
The average price of a 1 carat lab grown diamond is currently $732 (see price chart below). 1 carat lab grown diamonds can cost anywhere from $446 - $1,590 depending on the diamond's shape, color, clarity, and other factors.
Tell people whatever you want to tell them in the context of the moment. Lab diamonds are diamonds. Some people judge lab diamonds because they are uninformed or because they feel like the rise of lab diamonds “cheapens” the meaning of diamond rings. Some people judge mined diamonds because of ethical concerns.
LUANDA, Oct 23 (Reuters) - Lab-grown diamonds are losing their appeal due to oversupply and consumer preferences are starting to shift back to natural stones, World Diamond Council President Feriel Zerouki has said.
Lab diamonds are real diamonds, but their resale value is low. Lab diamonds cost about 80% less than natural diamonds as of 2024, and their value has dropped significantly since their introduction. While they offer great upfront savings, they generally don't retain value over time.
No, lab grown diamonds do not lose their sparkle over time. They have the same chemical composition as natural diamonds, which means they maintain their brilliance as long as they are properly cared for and kept clean.
Lab diamonds are easily accessible to everyone, no matter their budget. Compared to mined diamonds, lab diamonds are 30 to 50% cheaper and hence, affordable by many customer segments. However, in spite of all these positives and benefits, lab grown diamonds have garnered many myths surrounding them.
Their popularity in the U.S. luxury market is rising due to increasing consumer interest in sustainability, affordability, and personalized luxury products. Leading brands like Signet Jewelers and Pandora are integrating lab-grown diamonds into their collections to meet this growing demand.
Gemologists and professional jewelers cannot distinguish between a lab-created diamond and a natural one through the naked eye.
Lab-grown diamonds lose most of their value immediately after the purchase. They have significantly lower resale value, often less than 10-30% of their original retail price because they are easy to mass produce.
Costco sells diamonds with a cut grade of Good to Excellent. Although treating diamonds is an accepted practice among many jewelers, Costco only sells natural and untreated diamonds.
Jewelers use a professional diamond tester tool that tests thermal conductivity to differentiate a real diamond from fakes. Diamonds disperse heat quickly, unlike many imitations. A diamond tester will indicate whether the stone conducts heat in the way a diamond should, offering a highly reliable assessment.
Better Profit Margins
While lab diamonds jewelry cost less than natural diamonds, they still offer good profit margins for jewelers. This makes them a win-win - customers get better value, and jewelers can maintain healthy businesses.
For a $5,000 budget, you can typically get a natural diamond engagement ring with a center stone around 0.75 to 1.0 carat, possibly slightly larger (up to 1.2 ct) in elongated shapes like pear or oval, depending on cut, color, clarity, and the setting's cost, with lab-grown options allowing for much larger (3-4+ carat) stones or alternatives like moissanite offering bigger stones within budget.
Lab-grown diamonds have the same chemical structure as natural diamonds, boasting a Mohs hardness of 10. This ensures they are equally durable and expected to last a lifetime, retaining their sparkle and strength over the years.
2.5 carat lab grown diamonds can cost anywhere from $1,034 - $5,082 depending on the diamond's shape, color, clarity, and other factors.
The Aquamarine name comes from the Latin word for seawater and is said to calm waves and keep sailors safe at sea. It is sometimes referred to as a poor man's diamond because of the pale color.
The "3-month ring rule" is an outdated marketing guideline suggesting spending the equivalent of three months' salary on an engagement ring, a concept created by De Beers to boost diamond sales, evolving from earlier one and two-month suggestions. Today, it's widely seen as a myth, with most couples prioritizing personal financial comfort, open communication, and meaningful choices over this arbitrary rule.
VS1 is technically better than VS2 in clarity because it has fewer and/or smaller inclusions that are harder to see under 10x magnification, making it more valuable, but for most people, a well-chosen VS2 offers the same eye-clean beauty and better value, as its inclusions are also usually invisible to the naked eye. The best choice depends on budget and preference, with VS1 for maximum purity and VS2 for excellent value, though VS1 is safer for larger stones or step cuts like emeralds where inclusions are more obvious.