Do Lab Grown Diamonds Hold Their Value?

by Andy Jones on Oct 31, 2023

Do Lab Grown Diamonds Hold Their Value?

The Fascinating World of Lab-Grown Diamonds

Lab-grown diamonds, although in existence since the 1950s, have often been overshadowed by their natural counterparts. Many believe that these synthetic gems lack the enduring value of their earth-mined counterparts. Join us as we delve into the world of lab-grown diamonds, understanding how they are crafted and exploring the question: do lab-grown diamonds hold their value?

Deciphering Lab-Grown Diamonds

Diamonds Born in a Lab

Lab-grown diamonds are cultivated not beneath the Earth's surface, but within a controlled laboratory environment. The remarkable facet of these gems is that they are composed of carbon atoms bonded in the same manner as natural diamonds. They share identical visual, chemical, and physical properties, blurring the line between synthetic and natural diamonds. 

Can You Spot the Difference?

Real vs. Lab-Grown Diamonds

Distinguishing a lab-grown diamond from a natural one can be challenging. In most cases, it requires specialized equipment, making it nearly impossible for the untrained eye. Even jewelers and appraisers often turn to specific tools for differentiation. The Gemological Institute of America (GIA) utilizes spectroscopy and other advanced techniques to make conclusive distinctions.

GIA Certification for Lab-Grown Diamonds

The Gold Standard for Gem Grading

Since 2007, lab-grown diamonds have been receiving GIA certification. These certificates adhere to the same stringent standards used for natural diamonds, encompassing color, clarity, and cut grading scales. The GIA no longer uses the term "synthetic" on their Laboratory-Grown Diamond and Identification Reports. Lab-grown diamonds are, in the eyes of the GIA, as authentic as their natural counterparts.

Passing the Authenticity Test

Lab-Grown Diamonds in the Eyes of Testers

One question that often arises is whether lab-grown diamonds will pass the scrutiny of professional diamond testers. The answer is unequivocally yes. Lab-grown diamonds will pass the tests with flying colors. These diamonds register as real because they are indeed authentic diamonds. Most testers are designed to identify fake diamonds, such as glass or cubic zirconia, rather than to distinguish between lab-grown and natural diamonds.

The Price Factor

Cost Comparison: Lab-Grown Dimaond vs. Natural Diamond

In the world of diamonds, price plays a pivotal role. In 2021, the average price of lab-grown diamonds was $4,383, representing an 8.6% increase from the previous year. In contrast, natural diamonds had an average price of $8,053 in 2021. The primary reason lab-grown diamonds are more budget-friendly is the streamlined creation process compared to mining natural diamonds. 

Do Lab-Grown Diamonds Preserve Their Worth?

Investment Potential

The big question is, do lab-grown diamonds hold their value? In this aspect, they differ from natural diamonds. While natural diamonds can retain around 25% to 50% of their value depending on market fluctuations, lab-grown diamonds may not hold the same resale value. However, the extent of depreciation largely hinges on the market's prevailing conditions. In the right market with the right buyer, you might still secure a profitable resale.

Holding the Sparkle: The Resale Value of Lab-Grown Diamonds

The Market for Lab-Grown Diamonds

Lab-grown diamonds do possess resale value, but it's essential to consider the diamond's carat and quality. However, the resale value is also contingent on the ever-fluctuating commodity market for diamonds. While many jewelers may not buy back lab-grown diamonds, there is a growing demand for these gems in third-party markets. While a resale might not recoup the entire investment, it can certainly fetch more than what certain retailers would offer.

Protect Your Investment


Insure Your Lab-Grown Diamond

Lab-grown diamonds may be more affordable than their natural counterparts, but they are still a significant investment. Besides their monetary value, they often hold profound sentimental value. To safeguard your precious lab-grown diamond, consider insuring it with TB Jewelers. It's a symbol of commitment, love, and an investment worth protecting.

In the world of diamonds, the choice between lab-grown and natural is a personal one, influenced by your preferences and budget. Lab-grown diamonds offer a remarkable blend of authenticity, affordability, and sustainable practices. While they may differ in resale potential, they continue to make a significant impact in the jewelry industry, bridging the gap between luxury and responsibility.