Resale Value of Lab Grown Diamonds - Lab Grown Diamond Manufacturer

Resale Value of Lab Grown Diamonds

On June 5, The world’s biggest diamond company, De Beers, announced it would start selling synthetic diamond gemstones for the first time in its 130-year history. The very impact of its announcement led to a drop of natural diamond price by 6 to 10 percent.

Jewelers regularly tell prospective clients that lab-grown diamonds have zero resale value. This is completely false. Just as mined diamonds have some resale value, lab-grown diamonds have a similar resale value as a portion of the original cost price. 

Before we discuss the resale value of a lab diamond, we must discuss the resale value of a mined diamond. It is practically impossible to sell a mined diamond purchased, for a profit, relative to inflation (i.e. for more money than what you paid for it). Rather the price of natural diamonds has been depreciating or has remained stagnant over the period because of excess supply compared to demand. Further, the emerging lab-grown diamond industry is influencing the price of a natural diamond and the prices are reducing more.

Further in late July, the Federal Trade Commission (FTC) in the United States, redefined the definition of the word “ diamond” to include lab-grown diamonds. Apart from these various other market factors have led to a drop in natural diamonds price.

So from a resale point of view, it’s purely a misconception that natural diamonds have investment values and would fetch your return on investment. They would be resold at a discounted price. The lab-grown diamonds have the same resale value. They too are resold at a discounted price.