Does Lab Grown Diamond have Resale Value?
As jewelry lovers and eco warriors, we've been obsessed with lab-grown diamonds for their ethical and sustainable benefits. However, we often ask ourselves, “Do lab-grown diamonds have any resale value?” When it comes to the worth of lab-created diamonds, it's important to note that while they are generally cheaper than natural diamonds due to easier production and greater supply, their resale value is lower. Let's dive into this gem of a topic and discover the truth about the resale of these sparkly stones.
Understanding Lab-Grown Diamonds
Lab diamonds, also known as synthetic diamonds, are made in a controlled environment using advanced technology. They have the same physical, chemical and optical properties as natural diamonds. The only difference? They’re made in a lab, not in the ground.
Growing a diamond in a lab is either high pressure high temperature (HPHT) or chemical vapor deposition (CVD). Lab created diamonds are virtually indistinguishable from natural diamonds. But this high tech origin affects their lab grown diamonds resale value. Lab created diamonds have a much lower resale value because of the easier process and greater supply. Let’s dig in.
Can Lab-Grown Diamonds be GIA Certified for Better Resale Value?
So you’re wondering if lab grown diamonds can get certified by the Gemological Institute of America (GIA)? Yes! The GIA and other reputable organizations like the International Gemological Institute (IGI) and the American Gem Society (AGS) do certify lab grown diamonds. Certification adds credibility and transparency, a detailed report on the diamond’s quality.
Certification can definitely help a lab diamond on the resale market. Buyers feel more comfortable knowing the diamond’s specs have been verified by a third party. But certification alone doesn’t guarantee a strong resale value. Other factors come into play too. When you sell lab grown diamonds, having certification can help assure buyers of the diamond’s quality and authenticity, making the selling process smoother.
At CaratBee, we always make sure to provide our buyers with diamonds that come with GIA certification. We only source and sell GIA-certified diamonds, ensuring you get the best quality.
Factors That Influence the Resale Value of Diamonds
Several factors determine a diamond’s resale value, whether it’s lab-grown or natural diamond. Here are some key considerations:
- Quality: The 4Cs (Carat, Cut, Color, Clarity) matter. A diamond’s carat weight and grades in cut, color and clarity determine its value and resale value. High grade diamonds get higher prices.
- Market Demand: Certain types of diamonds are more popular and in demand. Natural diamonds have always been considered more prestigious but lab grown diamonds are changing the game.
- Brand and Certification: Diamonds from well known brands and those certified by recognized institutes get better resale prices. Certification gives the buyer assurance of the diamond’s authenticity and quality.
- Condition: The condition of the diamond including wear and tear or damage affects its resale value. Well maintained diamonds retain their value over time.
- Economic Factors: The overall economy impacts diamond prices. During economic downturns luxury items like diamonds see a dip in demand and resale value.
- Original Purchase Price: The price you paid for the diamond originally plays a role in its resale value. Buying at a premium means lower returns when reselling.
- Rarity: Unique and rare diamonds whether natural or lab grown get higher resale value due to their uniqueness.
Do Lab Grown Diamonds Have Resale Value?
The resale value of lab-grown diamonds is typically lower than that of natural diamonds, largely due to the perception that natural diamonds are more valuable and rare. However, as the market for lab-grown diamonds expands and consumer preferences evolve, their resale value could increase.
It's important to note that the resale value of lab-grown diamonds, like natural ones, depends on factors such as quality, certification, and maintenance. High-quality, certified, and well-maintained lab-grown diamonds can retain some of their initial value. Nonetheless, lab-grown diamonds generally depreciate more than natural diamonds, influenced by factors like supply.
It's also worth mentioning that all diamonds, whether natural or lab-grown, tend to lose value after being worn. Even natural diamonds experience some depreciation in value over time.
Selling Lab Grown Diamonds
Selling lab-grown diamonds comes with its own set of challenges. One major issue is the lower demand in the secondary market, also known as lab-grown diamond resale. Many buyers still prefer natural diamonds because they are perceived as rare and traditional.
To sell your diamond, you need to find an online marketplace where lab-grown diamond reselling takes place. If you want to resell your lab-grown diamond, you should thoroughly research the marketplace to find the best buyer. Generally, there are fewer buyers for lab-grown diamonds due to the reduced profit from these diamonds.
Lab-grown diamonds are quite a bit cheaper than natural ones right off the bat. For example, a one-carat lab-grown diamond might set you back about $1,000, whereas a natural diamond of the same size could cost around $4,200. The catch? When you try to resell a lab-grown diamond, you often only get a small chunk of what you paid, sometimes just pennies on the dollar. This is because there are so many lab-grown diamonds out there, which makes them less rare and lowers their market value.
People's preferences also play a role. Natural diamonds are seen as more valuable because they're rare and take a long time to form. This perception boosts their appeal and resale value. Many buyers lean toward natural diamonds for their history and emotional significance, making lab-grown diamonds less attractive on the resale market. So, while natural diamonds might keep 50-60% of their original value, lab-grown ones may only hold onto 20-30%.
For instance, if you buy a lab-grown diamond ring for $1,000, you might only get $200-$300 back when you resell it. That's a big drop of 70-80%. On the other hand, a natural diamond ring bought for $4,200 could resell for $2,100-$2,520, showing a smaller drop of 40-50%. Knowing these differences can really help when you're deciding whether to buy a lab-grown diamond.
Comparing Resale Value: Lab-Grown vs. Natural Diamonds
When comparing the resale value of lab-grown and natural diamonds, mined diamonds generally hold a higher resale value. and lab grown diamonds hold a lower resale value compared to mined diamonds. This is largely due to their established market presence and the belief that natural diamonds are a finite resource.
However, lab-grown diamonds offer a more affordable initial purchase price and ethical benefits that resonate with many modern consumers. While their resale value may be lower, the overall cost-benefit analysis can still make them an attractive option.
Lab Grown Diamonds Resale Value Chart
| Carat | Cut | Color | Clarity | Initial Price | Retail Price | Online Price (20-40%) | Peer-to-Peer (30-50%) | Gemstone Buyer (20-40%) |
|---|---|---|---|---|---|---|---|---|
| 1.21 | Ideal | D | VS2 | $1,440 | $1,440 | $288 - $576 | $432 - $720 | $288 - $576 |
| 1.04 | Ideal | E | VVS2 | $1,490 | $1,490 | $298 - $596 | $447 - $745 | $298 - $596 |
| 1.00 | Ideal | F | SI1 | $1,200 - $4,800 | $1,200 - $4,800 | $240 - $960 / $960 - $1,920 | $360 - $600 / $1,440 - $2,400 | $240 - $960 / $960 - $1,920 |
| 1.00 | Very Good | G | VS1 | $1,100 - $3,200 | $1,100 - $3,200 | $220 - $640 / $640 - $1,280 | $330 - $550 / $960 - $1,600 | $220 - $640 / $640 - $1,280 |
| 1.00 | Good | H | SI2 | $700 - $2,500 | $700 - $2,500 | $140 - $500 / $500 - $1,000 | $210 - $350 / $750 - $1,250 | $140 - $500 / $500 - $1,000 |
Note: The above price reflects the approximate resale value of a lab-grown diamond. Actual resale prices may vary depending on demand and factors influencing the supply of lab-grown diamonds.
Key Points
- Retail Price: The original purchase price.
- Online Price: Selling through online platforms, typically 20% to 40% of the retail price.
- Peer-to-Peer: Direct sales to individuals, usually 30% to 50% of the retail price.
- Gemstone Buyer: Professional buyers, offering around 20% to 40% of the retail price.
Estimates suggest that lab-grown diamonds might lose anywhere from 30% to 50% of their original value upon resale, though this can vary based on factors like the diamond's quality, setting, overall condition and buyer’s preferences.
We advise our customers and readers not to purchase lab-grown diamonds as an investment because they lack the resale value of diamonds. If you choose to buy lab-grown diamonds, be prepared to hold onto them indefinitely.
Additionally, the ongoing development of the lab-grown diamond market and the potential for oversupply can influence resale prices. If you're considering a lab-grown diamond, consulting with a jeweler or gemologist can provide more accurate insights into potential resale value and help you make an informed decision.
Also Read
How to Get the Most for Your Lab Grown Diamond
If you have a lab-grown diamond and want to sell it, here are some tips to get the most:
- Get Certified: Make sure your lab-grown diamond is certified by a reputable organization. This adds value and credibility.
- Keep it Sparkling: Clean and care for your diamond ring regularly to keep it in perfect condition. Don’t expose it to harsh chemicals or situations where it could get damaged.
- Stay Informed: Keep an eye on market trends and lab-grown diamond demand. Sell during peak demand and you’ll get a better price.
- Go to Reputable Places: Sell to reputable platforms or jewelers who specialize in lab-grown diamonds. They’ll give you a fair price.
- Highlight the Good Stuff: When selling, emphasize the ethical and eco-friendly aspects of lab-grown diamonds.
Conclusion
Lab grown diamonds are my go to for an exciting and sustainable alternative to natural diamonds. Even though the resale value may not be the same as natural diamonds I find the value and appeal significant especially since I prioritize ethical and environmental considerations. When considering a diamond engagement ring the emotional and financial aspects of lab grown diamonds make them a no brainer.
By understanding the factors that affect their resale value I’ve been able to make informed decisions when buying or selling. But to me the joy and beauty they bring are priceless. If you’re ready to get into the world of lab grown diamonds like I did, start by researching certified options and trusted sellers who can guide you on this sparkly journey.
