Lab Grown Diamonds: Resale Value & How to Sell
Lab-grown diamonds have been gaining popularity in recent years due to their lower cost and ethical production methods. However, many people are still unsure about their resale value and how it compares to natural diamonds. We will explore the resale value of lab-grown diamonds and what factors to consider when selling one.
What Actually is a Lab-Grown Diamond?
Lab-grown diamonds, also known as synthetic or cultured diamonds, are created in a laboratory using advanced technology that mimics the natural diamond-growing process. These types of diamonds are chemically, physically, and optically identical to natural diamonds and are graded using the same criteria. Gemologists, jewelers and the public cannot tell the difference tithe naked eye or even with a microscope. Jewelers and diamond grading laboratories use special technology to confirm the identity of a lab-grown diamond.
Resale Value of Lab-Grown Diamonds
This is pretty critical piece of information. The resale value of a lab-grown diamond is generally lower than that of a natural diamond due to the lower cost of production and the fact that they are not as rare. However, the resale value can still vary depending on factors such as the quality of the diamond and the demand for lab-grown diamonds in the market. For an example a lab grown 1ct diamond may have been purchased for $5,500 in January of 2016, but as of early 2024 a great quality 1ct lab-grown could be purchased for $500-$800. This is a decrease of more than 1000% in 7 years and major factor to consider in reselling a lab-grown diamond.
When Selling a Lab-Grown Diamond, Consider These Factors
1. A lab-grown diamond is not something you want to hold on to for great deal of time in order to determine if you want to sell it. If you think you want to sell it, then you should move on it. The fact that 1ct lab-grown diamonds have lost 1000% of value in the last 7 years means that you will need to sell it as soon as possible or need to just plan to keep it and reseat the diamond into something like a pendant for personal enjoyment or a gift.
2. As an individual with a used engagement ring, we suggest aiming for 50% of the current retail value of the stone. That means that you have do you own research in google and search for the the carat weight, shape, color and clarity of your lab-grown diamond. What you paid for it in the past may likely have no relationship or effect on the current market value.
3. The mounting or the ring itself, these typically can retain value as well. If the mounting is a notable brand name, it can have even more value. The weight of the metal such as gold or platinum has value as a material even for a non-branded item.
To sum it all up, the resale value of a lab-grown diamond is generally lower than that of a natural diamond, and it likely will not increase in value so if you plan to sell it, you probably should jump on the opportunity.