Do lab-grown diamonds hold their value?
Jun 23, 2024
Diamonds have long held our fascination, drawing us in with their sparkling brilliance and timeless elegance for centuries. Now there is another diamond type making headlines: lab-grown diamonds. But with such popularity comes one key question: Do lab-grown diamonds hold their value? So let us discuss its factors affecting resale value as well as investigate any advantages lab-grown ones may bring us!
Mined Diamonds Dominate the Resale Market
Mined diamonds have long dominated the resale market; established channels and long histories provide an environment conducive to buying and selling pre-owned mined stones at higher resale values, especially certified stones. But with lab-grown stones coming onto the scene, things change considerably.
Lab-grown diamonds, being newer on the market than their mined counterparts, often lack an established resale market. Furthermore, as production ramps up and prices decrease subsequently affecting resale values; estimates suggest 10-30% as being their estimated resale range versus potentially much higher figures for mined stones.
Factors Beyond Origin: What Affects Resale Value?
While origin does play an impactful role, what determines a diamond's true resale value lies with its inherent characteristics - specifically Cut, Clarity, Carat Weight, and Color - more so than anything else. A well-cut stone with high clarity ratings, larger carat weight, and colorless or near colorless characteristics is likely to retain value better over time regardless of lab production or mining origins.
Certification has also gained prominence, providing assurance of authenticity and quality for lab-grown diamonds with certification from an independent gemological institute. Lab-grown stones with such certification may command slightly higher resale prices based on market fluctuations that impact demand fluctuations affecting both mined stones as well as lab-grown ones. Finally, market trends also affect their resale values; fluctuations in diamond demand can influence pricing fluctuations of both types of gems.
Resale Value and Lab-Grown Diamonds
Although resale value should not overshadow the distinct advantages offered by lab-grown diamonds. At Pompeii3, we celebrate their beauty and ethical sourcing - these stones are created in controlled environments without creating environmental impacts like traditional mining operations do.
Lab-grown diamonds provide an environmentally conscious option, appealing to consumers concerned with sustainability. Furthermore, lab-grown stones tend to be less costly than mined diamonds of similar characteristics - making them a budget-conscious selection when purchasing that special cross necklace, delicate 14k Italian gold chain, or matching wedding bands.
Diamond Value Is Greater than Resale Value
Lab-grown diamonds have undoubtedly transformed the diamond landscape. While their resale market may still be developing, their inherent quality and ethical sourcing hold immense value for any buyer. When purchasing your next lab-grown or mined diamonds from Pompeii3, consider your priorities such as potential resale potential, ethical considerations, or budget as you make your selection; we offer stunning selections both of lab-grown as well as mined options so you find a piece that fits both!