Lab-grown diamonds vs. natural diamonds resale value

Lab diamonds are transforming the jewelry industry, offering a sustainable, high-quality alternative to mined diamonds. Visually and chemically identical to their mined counterparts, lab-grown diamonds provide an ethical choice that appeals to modern values. But when it comes to investment, how do lab-grown diamonds compare to natural ones? Let’s explore the distinctions and consider which option aligns best with your goals.

1. Diamonds Are Forever… But Not Their Value

The truth is, while diamonds are marketed as “forever,” their resell value? Not so much. Most mined diamonds lose a significant portion of their value the moment you walk out of the jewelry store. On average, diamonds resell for about 20-60% of the original price, depending on various factors

Why? Well, just like cars that lose value once they’re driven off the lot, diamonds lose value because of the markup retailers place on them. That fancy retail price tag includes overhead, marketing, and a profit margin, none of which carry over when you're trying to resell.

2. What Impacts Natural Diamonds Resale Value?

Several factors determine how much money you’ll get back when selling your diamond:

• Quality: The 4 Cs—cut, clarity, color, and carat—still reign supreme. A well-cut, high-carat diamond that’s nearly flawless will fetch more than lower-quality stones.
• Market Demand: Just like fashion, diamond trends fluctuate. If your diamond fits current trends (e.g., a specific cut or style), you might get a better price.
• Certification: A certified diamond (especially from a trusted institution like the GIA) will resell for more because buyers trust the quality guarantee.

3. Where Can You Sell a Diamond?

If you’re looking to cash in on that mined diamond, here are your options:

• Pawn Shops: They’re quick, but don't expect top dollar. Pawn shops tend to offer much lower prices since they aim to flip items quickly.
• Private Buyers: Selling directly to individuals can help you get a better price, but it may take longer to find the right buyer.
• Online Platforms: Websites like eBay or specialized diamond resale platforms can help you reach a broader audience, though you may need to deal with listing fees.
• Jewelry Stores: Some stores offer to buy back diamonds, but typically only if they sold it to you in the first place. Even then, expect to get significantly less than what you paid.

4. Why Do Diamonds Lose Value?

The resell value of diamonds is a bit tricky. One reason they don’t hold value well is supply vs. demand. Despite being marketed as rare, diamonds are more common than you think! Mining companies release diamonds strategically to keep prices high, but the secondary market (where diamonds are resold) is flooded with stones, keeping resell prices lower.

Also, diamond jewelry often has a high retail markup. When you sell it back, you're essentially removing that markup, so the value takes a hit​

5. The Rare Exceptions

Now, don’t lose hope! While most diamonds won’t fetch their original price, exceptional diamonds—those that are extraordinarily rare, flawless, or have historical significance—might appreciate in value. Famous diamonds like the Hope Diamond are worth millions due to their uniqueness and historical importance. But for everyday diamonds? Not so much.

6. What About Lab-Grown Diamonds?

While mined diamonds typically lose a chunk of their value, lab-grown diamonds tend to depreciate even more quickly. Since they are easier and cheaper to produce, they tend to have lower resell value, often below 20% of their original cost. So, if reselling is important to you, stick with high-quality mined diamonds.

Final Thoughts: Sparkle or Save?

If you’re buying a diamond purely as an investment, you might want to reconsider. Diamonds, especially mined ones, are better seen as a symbol of love or luxury rather than a financial asset. While they hold sentimental value, their financial value can be a bit more, well, rocky!

That said, if you buy a high-quality stone and you’re prepared for a potential loss in value, you’ll still have a timeless piece of jewelry that can be enjoyed for generations—priceless in its own way!

So, will your diamond make you rich? Maybe not. But if you’re after beauty and meaning, your diamond’s true value might just be priceless and if you need a custom ring designed for your special occassion, www.moyiolaabeo.com is an ethical jewelry designers and all jewelry are handcrafted and made to be passed down.