Lab grown diamond resale value is low, and we would rather you hear that from us before you buy than after. A lab grown diamond is a real diamond and a beautiful one to wear. But if you try to sell it later, you should expect to get back only a small part of what you paid, sometimes very little. This page explains why, how it compares with mined diamonds, and how to buy a lab diamond with your eyes open.
The honest answer
Buy a lab grown diamond to wear and enjoy, not as an investment. Its value is in the ring on your hand: the size you could afford, the whiter color, the cleaner clarity, the setting you really wanted. Its value on the secondhand market is a different number, and it is much lower.
That is not a flaw in the stone. It is a feature of the market. Lab diamonds can be grown to order, so supply is not scarce. As growing gets faster and cheaper, the price of new lab diamonds keeps coming down. A buyer offering to purchase your used stone will compare it with what a new one costs today, not with what you paid.
Why lab diamond prices keep falling
- Supply grows easily. Labs can add more growing capacity when demand rises. Mined supply is limited by what is in the ground.
- Technology improves. Better equipment grows larger, whiter stones in less time, which lowers the cost of each carat.
- New stones compete with old ones. If a new stone of the same grade costs less this year than last year, a used one is worth less too.
We cannot predict exactly where prices will go, and nobody honestly can. As a rough guide, the direction for lab grown diamond prices over recent years has been down, not up.
How mined diamonds compare
Mined diamonds are not a perfect investment either. When you sell a mined diamond, you usually get well below the retail price you paid, because a buyer needs room to resell it. But because mined supply is limited and the secondhand market is long established, a mined diamond generally keeps more of its value than a lab grown one.
| Question | Lab grown diamond | Mined diamond |
|---|---|---|
| Price to buy | Much lower for the same grade | Much higher |
| What you get back if you sell | A small part, sometimes very little | More, though usually below retail |
| Price direction for new stones | Downward | Steadier |
| Good reason to buy | More diamond for your budget, to wear | Origin, long term value |
If keeping resale value matters to you, a mined diamond may suit you better, and we will tell you that plainly. For a full comparison, read lab grown vs natural diamonds.
What keeps its value in a lab diamond ring
The diamond is not the only part of the ring. The metal has its own value. Gold and platinum are bought and sold by weight every day on 47th Street, so a solid 14k, 18k or platinum setting keeps a value tied to the metal market. That will not make a ring an investment either, but it is part of the picture.
What really keeps its value is how the ring fits your life. A ring you love and wear every day for years is money well spent. A ring bought too big or too expensive in the hope of selling it later rarely works out.
Smart ways to buy with resale in mind
- Set a budget you are comfortable spending, not lending. Think of the price as what the ring costs, full stop.
- Keep the grading report. An IGI or GIA report makes any future sale, trade or insurance claim easier. Read more on IGI certified lab grown diamonds.
- Insure the ring. Insurance protects you against loss or theft far better than resale ever could.
- Ask about upgrades before you buy. Some jewelers offer upgrade terms. If that matters to you, ask for the terms in writing at the time of purchase.
- Choose grades with your eyes, not your spreadsheet. Our guide to the 4Cs shows where your money shows and where it does not.
What trading in looks like
Selling a lab diamond for cash and trading it in are two different things. A cash buyer is pricing the stone to resell, so their offer is usually low. A trade in, where a jeweler credits part of your old ring toward a new one, can work out better because the credit comes with a new purchase. Terms vary a lot from store to store, so read them before you buy, not years later.
When you compare any offer, bring the grading report and the original receipt. A stone with a known report number is easier for anyone to price, and it saves time at the desk.
Why people still choose lab grown
Knowing all this, most of the couples who visit us still choose lab grown, and for good reasons. The same budget often reaches a bigger stone, a whiter color, or a platinum setting instead of gold. The diamond is real, it is as hard as any diamond, and it will look the same in twenty years as it does on the day you get engaged.
If you want to compare for yourself, use our loose lab grown diamonds request to tell us your shape, carat, color, clarity and budget. We pull 3 to 5 matching stones for your visit. You can also browse lab grown diamond engagement rings with starting prices on every piece, or check our lab grown diamond prices guide.
When you are ready to look, book a viewing at 30 West 47th Street, Suite 806, or call (212) 642-4345. We will answer any question about value straight, at the tray.
Viewings by appointment. Tell us what you would like to see and we will have it out on the tray.
Book a viewingOr call (212) 642-4345