Does Lab Grown Diamond have Resale Value?

Homes. Cars. Gadgets. Can you guess what the common link is between them? It’s their resale value. Before making such high-value purchases, considering the resale value is quite a common thought for us. The same goes for diamond jewelry, whether natural or lab grown, where comprehending long-term value can be just as crucial as selecting the perfect sparkle.

MVI Marketing conducted a survey in 2022 that revealed a remarkable fact: 80% of millennials and Gen Z are considering buying lab grown diamonds. From this data, it’s clear that the popularity of lab diamonds has only increased, especially in the last decade. Still, many people question the resale value of lab grown diamonds and compare them to their earth-mined counterparts.

We get it. You’re probably thinking, “Do lab grown diamonds have resale value?” Don’t worry. We’re here to tell you the truth so you can make an informed decision by the time you finish reading this blog.

Understanding Lab Grown Diamonds

Lab grown diamonds, as the name suggests, are crafted in highly advanced facilities by mimicking the formation process of natural diamonds occurring in the Earth’s crust. These stones are subjected to high temperature and pressure conditions, giving birth to gems that look exactly like natural diamonds in a short period without harming the environment.

Lab made diamonds are created using two methods:

High Pressure High Temperature (HPHT): This method involves applying extreme heat and pressure to a carbon source to replicate the natural diamond-forming process, creating a diamond crystal.

Chemical Vapor Deposition (CVD): CVD is a process where a thin slice of diamond seed is kept inside a chamber that contains carbon-rich gas. It is then activated to deposit carbon atom layers, gradually creating a diamond.

Can Lab Grown Diamonds be GIA Certified for Better Resale Value?

If you’re wondering whether certified lab grown diamonds have a better resale value, the answer is yes! Like natural diamonds, lab grown diamonds can also be certified by renowned gemological institutes like the Gemological Institute of America (GIA). In the last couple of years, the GIA has enhanced its grading reports to include lab grown diamonds that are assessed based on the 4Cs - color, cut, carat weight, and clarity.

Any kind of certified product provides peace of mind since it’s an assurance of quality to a consumer, and GIA certification isn’t anything different. It’s a mark of transparency, a promise of superior quality, which can significantly improve a lab grown diamond’s resale value and credibility.

Although the resale value of natural ones may be higher, having a recognized certification can boost your chances of reselling your lab diamonds to buyers or retailers in the market. If your lab diamond has a GIA report, it’s indicative of its authenticity, qualities like color, carat weight, clarity, cut, and last but not least, the resale price.

Factors That Influence the Resale Value of Diamonds

Whether you’re investing in natural or lab grown diamonds, understanding what influences their resale value is crucial to making the right choice. Determining the exact resale value of a diamond, lab-made or natural, can be difficult, but being aware of the following factors will give you a clearer idea of what your diamond’s approximate resale value could be in the secondary market.

1. The 4Cs: Cut, Color, Clarity, and Carat

The first thing that directly impacts the resale value of lab grown diamonds is their quality, a crucial component of the 4Cs. When you see a well-cut diamond, the first thing you’ll notice is how beautifully it reflects light. And that’s why it demands a higher price.

Colorless diamonds, falling in the graded D to F category, are more valuable due to higher clarity and fewer internal flaws. Carat weight also plays an important part - the worth of larger stones is generally higher, but only when they’re complemented by clarity and good cut.

2. Certification

Certification acts like an assurance - it’s a proof of quality, a mark of authenticity. Hence, a certified lab grown diamond is easier to resell. Reputable grading institutions like the GIA or IGI offer credibility and boost confidence among buyers when purchasing pre-owned lab grown diamonds. What happens when a diamond doesn’t carry any certification? Its value is often underappreciated, making it challenging to secure a reasonable price.

3. Shape and Style

Not everyone sings “I’m in love with the shape of….my diamond!” But when it comes to everlasting elegance, certain diamond shapes never go out of style. Take the round brilliant cuts as an example - these are timeless and have an incredible resale appeal. In contrast, buyers may not be attracted to niche or trendy shapes, which can negatively affect the overall price when trying to resell a diamond.

4. Brand and Purchase Source

Purchasing diamonds from reputable luxury brands or designer collections is equal to possessing Louis Vuitton bags or Prada dresses! It gives you a stronger reason to command a higher resale value of lab grown diamonds, especially if you’ve kept the original receipts, certificates, or branded packaging.

5. Diamond and Setting Condition

Think the physical state of your diamond isn’t important? Turns out, it is! The resale price of your diamond will be lower due to chips, scratches, or worn settings. In contrast, clean, undamaged diamonds with intact settings can sell faster and usually attract better offers.

6. Market Trends and Timing

Similar to cars or mobile phones, even diamond prices can’t escape fluctuations. Whether diamond prices will rise or fall, everything depends on economic scenarios, shifting consumer preferences, and, lastly, market demand. You can expect a higher return if you sell your diamonds during peak demand seasons or when diamond prices have soared.

Do Lab Grown Diamonds Hold a Resale Value?

Many people, while purchasing lab grown diamond rings from our store, often ask us, “ Do lab grown diamonds hold any value after buying?” We prefer to be honest and thus say, “Yes.” Lab grown diamonds certainly have an amazing resale value, owing to their physical appearance and longevity akin to natural diamonds”, as we’ve mentioned before.

Lab grown diamonds are the same as natural diamonds in terms of physical appeal, aesthetics, chemical composition, and durability; the only difference is that they’re formed inside controlled environments and not in the Earth’s crust. However, lab grown diamonds aren’t as scarce as the mined ones, which might make them less appealing for resale in the secondary market.

With that being said, some retailers may offer buyback or upgrade programs for lab grown diamonds, but only for a limited time, and the resale value can be much less than the original purchase price. If you’re wondering about natural vs. lab grown diamonds’ resale value, nothing can beat earth-mined diamonds.

The good news is lab grown diamonds can also be resold, but the resale value may not be the same as the price at which you purchased. From the quality and size of the diamond to the current demand, each factor plays a crucial role in influencing the stone’s resale value.

Resale Value of Lab Grown Diamonds

Many people believe that with time, the value of diamonds, lab grown or mined, will either increase or stay the same. A diamond’s beauty and dazzle are undoubtedly incomparable, but its resale price will never be equivalent to its original buying price. From creation to polishing and production, a lab grown diamond’s price is inclusive of all the steps as well as the making charge of the jeweler.

A lab grown diamond’s resale value mostly relies on crucial considerations like the stone’s certification, sustainability, and affordability. Some consumers estimate that lab-made diamonds may resell for around 10% to 30% less than their original purchase price. But that’s not always true.

If you can find a reputable marketplace, your lab grown diamonds can fetch a reasonable resale value. However, it’s important to note that the quality of your diamond is a crucial factor that can strongly affect its resale value. Compared to mined diamonds, lab grown diamonds are certainly an ethical and affordable alternative.

With the resale market still evolving, lab grown diamonds are a relatively new member in the market where natural diamonds have always stood strong with their time-tested value history. As a result, resale platforms, buyers, and jewelers are still determining pricing benchmarks, which translates to how easily and how much you can resell them for.

Transparency and documentation are other important considerations. As you already know, lab grown diamonds with GIA or IGI certifications tend to hold better value in the resale market. Sustainability-conscious buyers are often willing to pay a fair price if the diamond fulfills their criteria.

Thus, connecting with such buyers can be a feasible decision. Recovering the full amount you’ve paid may be challenging, but if you opt for a strategic resale process through trustworthy platforms or upgrade programs, you may recover a major portion of your investment.

Lab Grown Diamonds Resale Value Chart

Tips for Maximizing the Resale Value of Lab Grown Diamonds

Most people assume there’s no way you can increase the resale value of lab grown diamonds. Surprisingly, that’s not true! Here are a few ways to maximize a lab grown diamond’s resale value:

• Choose certified diamonds: You can never go wrong with opting for lab grown diamonds certified by trustworthy grading institutions like the GIA or IGI. A trusted certification always adds credibility, helping to justify your selling price during resale.
  
• More focus on quality than size: Do you have lab grown diamonds with incredible cut, clarity, and color? Congratulations! You have a better chance of demanding a better retained value than with larger, inferior-quality stones.
  
• Keep all documents safe: From store receipts to certification papers and even original packaging, keep these safely, since seeing these may boost a buyer’s confidence while purchasing.
  
• Consider timeless cuts: Rather than trendy or niche cuts, classic shapes like princess or round have a stronger appeal to a wider audience and may sell faster.
  
• Maintain the diamond’s condition: Scratched, cracked, or damaged diamonds are certainly not appealing to look at. So, don’t forget to regularly clean and properly store your diamond jewelry to safeguard against damage or dullness, which might impact the resale value.
  

Conclusion

Who wouldn’t love to add a sparkling lab grown diamond jewelry piece to their collection? Only that it’s a more affordable (and equally attractive) alternative to natural diamonds! But if you’re concerned about the resale value of lab grown diamonds, then don’t stress!

There’s nothing to worry about. As long as your lab grown diamonds are certified and of superior quality, you can still earn a decent resale price, given you’ve contacted a trusted marketplace or buyer. CaratBee offers a wide variety of stunning lab grown diamond ring collections, in different shapes, sizes, and carats for all occasions. Visit us to know more!