Do Lab Grown Diamonds Hold Value?

In recent years, lab grown diamonds have taken the diamond industry by storm. Many consumers now prefer them as a more ethical and affordable alternative to mined diamonds. Current trends indicate that their popularity will continue to rise as more buyers become increasingly conscious of responsible sourcing and sustainability. However, compared to natural diamonds, there are specific factors that influence their ability to retain value.

When buying an expensive luxury item considered an asset (like a home or a car), you naturally make the purchase with resale value in mind. So, expecting a proper resale value for your diamond jewelry, or having questions about its future worth, is both natural and sensible.

Here, we’ll explore the key factors that influence value retention to finally address the question: Do lab grown diamonds hold value? Keep reading to find out more!

Lab Grown Diamond Pricing & Supply Dynamics

Even though both types of diamonds are optically and chemically identical, natural diamonds take millions of years to form, while lab grown diamonds are created in high-tech laboratories. With recent advancements in production processes, such as CVD and HPHT, the ample supply has driven down prices, making lab grown diamonds significantly more affordable in recent times.

Take, for example, a 1 ct round lab grown diamond (G, VS2, Excellent) compared to its natural counterpart from Rare Carat. While the natural diamond costs $2,845, the lab grown one costs only $627 (Prices are shown as of 06/01/2025).

According to new research, advancements in technology will continue to improve production efficiency in the future, leading to further price reductions over time. This can negatively impact the lab grown diamond value, particularly if it was purchased earlier.

Besides, since lab grown diamonds are produced in a relatively short period in high-tech laboratories, there is an almost unlimited supply in the market. On the other hand, mining natural diamonds is cost-intensive, and natural diamonds are a finite resource. This major difference in the supply of both diamond types has a significant impact on their resale potential and perceived value.

Understanding the Resale Value of Lab Grown Diamonds

A lab grown diamond does have resale value. However, compared to natural diamonds, it is typically significantly lower. Even though the lab grown diamond resale market is still developing, there are specific factors that affect its resale potential, such as the quality of the stone.

The lab grown diamond’s clarity, color, size, and cut, as well as market demand and supply, are considered when determining its resale value. Based on this, natural diamonds traditionally retain 20% to 60% of their retail price upon resale, whereas lab grown diamonds usually see resale values around 30% to 40%, and in some cases, even zero.

The resale prices for lab grown diamonds are also strongly influenced by short holding periods. Diamonds resold within a couple of months tend to achieve a better resale value than older lab grown diamonds.

Besides, the resale value of lab grown diamonds is comparatively lower than that of natural diamonds because there is limited demand for pre-owned lab grown diamonds, as new ones are already available at affordable prices. As a result, consumers tend to buy new lab grown diamonds rather than purchasing used ones.

Do Lab Grown Diamonds Hold Their Value?

The resale value of lab grown diamonds is influenced by many factors, including the holding period. Lab grown diamonds can hold a modest portion of their value in the short term, especially if the diamond or diamond jewelry is resold shortly after purchase and is of high quality. However, over time, the rapid decline in prices and the oversupply in the market significantly reduce the long-term value prospects for the same stone.

Conclusion

As lab grown diamonds typically cost less than their natural counterparts, consumers often prioritize them for their affordability, ethical standards, and immediate aesthetic appeal. This is also why lab grown diamonds are especially popular among first-time buyers and those who enjoy experimenting with jewelry.

So, the answer to the question, "Do lab grown diamonds hold value?" is: yes, they can. Under certain favorable conditions, they may retain a modest resale value. However, their primary appeal remains experiential and ethical rather than financial. As a result, lab grown diamonds align more closely with consumer-grade luxury purchases than with investment-grade assets.