As the popularity of lab-grown diamonds has grown, one of the most common questions we receive is whether they can be resold at a later date, and if so, what they can expect for the resale value of lab-grown diamonds.
To be clear, buying an engagement ring or diamond with the intention of selling it later is not a good investment, but it is also not a worthless purchase.
Unless the diamond is extremely rare, it is nearly impossible to sell an earth-mined diamond purchased within the last decade for more money than you paid. There's no reason for a jeweller to buy your diamond at market value when they could buy an identical diamond at a lower price from any of hundreds of wholesalers who might offer better payment terms.
Lab-Grown Diamonds are extremely valuable. Scientists, laboratories, engineers, equipment, time, effort, and expertise are all factors that contribute to the production of some of the world's best diamonds.
Diamonds mined on the earth can change hands 20 times and travel across five continents before reaching the consumer. Consumers are forced to pay for each incremental markup in the long chain of exchanges, in addition to all of the humanitarian and environmental issues associated with the purchase of earth-mined diamonds.
The reality is that unless you purchase an investment grade diamond, it is extremely unlikely that you will be able to sell a natural mined diamond for a profit (which are extremely rare). This is because jewellers buy their diamonds on a global scale and can negotiate the best prices with diamond wholesalers.
You would have to sell your diamond to a jeweller at a favourable price and well below market rate, as there would be no incentive for a jeweller to purchase your diamond above market rate. This makes profiting from the sale of your natural diamond nearly impossible.
The lab grown diamond resale market operates similarly to the natural diamond resale market, which means that lab grown diamonds can be resold in the same way that mined diamonds can. Although many small independent jewellers are not currently buying lab grown diamonds, Pure Carats may be interested in purchasing your stone after an evaluation. If you are interested in selling your lab diamond, please contact us.
Despite the fact that lab grown diamonds are man-made, supply is still limited. It's important to remember that a high-quality lab-grown diamond can take weeks or months to grow, so it's not true that lab diamonds are "flooding" the market.
The market value of any diamond is determined by its quality, whether it is lab grown or mined.
The 4C's are used to grade diamond quality. Cut, colour, clarity, and carat weight are all important factors to consider. Each diamond's quality determines its position in the international pricing market. The retail and wholesale prices of lab grown and mined diamonds are calculated as a percentage of the market. This means that lab-grown diamonds are traded on a market in the same way that any other commodity is.
These expenses are not incurred when growing a diamond. You can set up the lab wherever you want and get the materials you need. That's not to say that growing a diamond is cheap; the skilled labour and carbon-neutral energy required add significantly to the costs.
More importantly, lab grown diamonds lack the artificial premium associated with mined stones. Decades of aggressive advertising, as well as large mining companies like De Beers holding back stock, have resulted in an inflated price when compared to lab grown stones.
Lab diamonds are in a similar situation, but because the secondary market for lab grown diamonds isn't as developed as it is for mined diamonds, you'll typically get less than you would for a mined diamond. Historical data also shows that lab diamond prices have fallen, owing to increased supply caused by efficiencies in the growing process.
However, the rate at which those efficiencies develop will slow over time. Prices will likely level out and stabilise as a result of this, as well as the surge in popularity due to their unrivalled ethical origins.
Lab-grown diamonds are man-made diamonds that are handcrafted in gem laboratories. They are built at high temperatures and pressures, almost identical to the natural diamond formation process. As a result, these diamonds have every single property of a genuine mined diamond. Furthermore, these diamonds are available in a wide range of colours. Along with the colourless diamond, you may see fancy coloured stones. What draws the most attention are different shapes in different colours.
Diamonds have a specific resale value, whether they are natural mined gemstones or lab-created ones. However, the value is reduced slightly when compared to the diamond's current wholesale price. This is not due to the diamond being created in a laboratory. In fact, diamonds formed naturally have the same effect. The price is influenced and frequently affected by the quality of the diamond used.
If it is an impressive round brilliant cut diamond, its resale value will be high. However, if it is a regular heart-shaped diamond, the value will be reduced to some extent.