Lab-Grown Diamonds: The Hidden Truth About Resale Value

Lab-Grown Diamonds: The Hidden Truth About Resale Value

Over the past few years, lab-grown diamonds have exploded in popularity. Marketed as an ethical, eco-friendly, and affordable alternative to natural diamonds, they’ve attracted a growing number of buyers looking for sparkle without the guilt or the price tag.

But while lab-grown diamonds shine just as bright on your finger, the story changes drastically when you try to resell them.

First, What Are Lab-Grown Diamonds?

Lab-grown diamonds are real diamonds chemically and physically identical to natural ones. The only difference? They’re made in a lab using high-tech methods like CVD (Chemical Vapor Deposition) or HPHT (High Pressure High Temperature).

They’re not fake, they’re not cubic zirconia they’re real diamonds, just with a different origin.

The Problem? Resale Value.

Here’s the uncomfortable truth: lab-grown diamonds lose value quickly, and in most cases, they’re very hard to resell at all.

This is Why?

1. No Rarity = No Long-Term Value

Natural diamonds are rare and rarity fuels value.

Lab-grown diamonds can be produced in unlimited quantities. That means they don’t hold the same long-term value or scarcity as mined diamonds. From an investment standpoint, lab diamonds are like buying a brand-new phone once you walk out of the shop, it’s worth less.

2. Rapid Price Drops in the Market

The cost of producing lab-grown diamonds has been dropping fast and so have retail prices.

Let’s say you buy a 1-carat lab diamond for £1,000 today. In a year, that same diamond might retail for £500. So, if you try to resell it, you’re not only competing with cheaper new options you’ll also be expected to take a huge hit.

 3. Jewellers Rarely Buy Them Back

Most traditional jewellers won’t buy back lab-grown diamonds. Unlike natural diamonds, there’s not much of a second-hand market for them, so many retailers won’t even offer a trade-in or resale service.

Even online platforms that accept lab-grown stones often offer a fraction of the price you paid if anything at all.

4. Low Demand in the Second-Hand Market

Resale platforms like eBay or Facebook Marketplace might seem like a good idea but lab-grown diamonds are harder to shift than you’d think

This is Why?

Buyers can get brand-new lab diamonds cheaper, with a warranty and certification. Second-hand? There’s little incentive for them to buy used unless it’s a huge bargain and that’s bad news for your wallet.

So, Should You Avoid Lab-Grown Diamonds?

Not necessarily. If you’re buying a lab-grown diamond for its beauty, ethical footprint, or affordability, and you’re not planning to resell it might be the perfect choice.

But if you’re looking at your diamond as a long-term investment or want the option to resell later?

You might want to think twice.

Lab-grown diamonds are changing the industry but they come with trade-offs. Understanding the resale challenges can help you make a smarter, more informed choice.

If value retention is important to you, you may want to explore natural diamonds or alternative investment options.

Know what you’re buying. Know what it’s worth. And most importantly know what you can get back when it’s time to sell.