Do Lab Grown Diamonds Have a Resale Value?

It is a common misconception that lab grown diamonds have no resale value. When discussing lab grown diamonds with my clients, I'm often asked about their resale value, which is why I put together this simple guide for you.

Diamond pricing

The market value for any diamond, whether it's a lab grown diamond or mined diamond, is determined by the quality. Diamond quality is graded by the 4 C's — cut, color, clarity and carat weight. The quality of each diamond constitutes its place in the international pricing market. Retail and wholesale values of lab grown and mined diamonds are determined as a percentage of the market. This means lab grown diamonds are traded on a market just like any other commodity.

Mined diamond resale market

In the real world, if you purchase a natural mined diamond, it is highly unlikely that you will be able to sell that diamond for a profit, unless it's an investment grade diamond, which is very rare. Jewelers purchase diamonds on a worldwide market and can negotiate the most attractive prices and terms with diamond wholesalers.

In order for you to sell your mined diamond to a jewelry store, it would need to be at a favorable price and well below market rate. If you tried to buy and sell a natural mined diamond on the same day, you may lose about 30–70% of your initial purchase price.

Lab grown diamond resale market

Lab grown diamonds are a rapidly growing part of the overall diamond market, yet they make up a fairly small portion of it. The lab grown diamond resale market works much like the mined natural diamond resale market — lab grown diamonds can be resold just like mined diamonds.

Supply of lab grown diamonds

Despite being man-made, the lab grown diamond supply is still restricted. A high quality lab grown diamond can take months to grow in a laboratory. So it is not true that lab grown diamonds are flooding or saturating the market. Larger and higher quality lab grown diamonds are only available in limited quantities.

Final thoughts

Whether your diamonds are lab grown or natural, they should not be a purchase that you expect to make a return on, but rather a symbol of your everlasting love and a family heirloom that can be passed through generations.

Diamonds are a sparkling, gorgeous symbol of your love, commitment and partnership.