Do Lab Grown Diamonds Hold Their Value? | BriteCo Jewelry Insurance (2024)

Lab-grown diamonds are produced in a lab rather than in the Earth. Unlike synthetic gemstones, lab-grown diamonds are made of tightly bonded carbon atoms. Many people wonder, are lab-grown diamonds real? The answer is yes—they share identical properties with natural diamonds, including visual, chemical, and physical elements.

The most significant difference between real and lab-grown diamonds is their origin or where they come from. Natural diamonds are the result of volcanic activity in the Earth’s crust over millions of years. In contrast, makers of lab-grown diamonds use laboratory processes likeHigh-Pressure, High-Temperature (HPHT), and Chemical Vapor Deposition (CVD) to create diamonds in weeks.

Yes, lab-grown diamonds have been graded and certified by GIA since 2007. The GIA also no longer uses the term “synthetic” on their Laboratory-Grown Diamond and Identification Reports.

Thereports for lab-grown diamonds are the same as for natural diamonds, including the same standard GIA color, clarity, and cut grading scales. The reports also include the type of growth process used and will disclose if there is evidence of post-growth treatment on the diamond to change the color.

Consumers may wonder ifa lab-grown diamond will test as realif a professional uses a diamond test. Because lab-grown diamonds are real diamonds, they will pass testing with a variety of testers. Although tests inGIA laboratory instrumentscan help identify lab-grown versus natural diamonds based on fluorescence and composition, the lab-grown variety still registers as real.

For example, if you take your lab diamond to a jewelry store and they run a test, it will identify your diamond as real. Most testers are designed to pick out fake diamonds, like those made of glass, cubic zirconia, or moissanite, not tell the difference between a real lab-grown diamond and a naturally mined diamond.

Suggested Read: Moissanite vs Diamond vs Lab: How to Choose?

The average for lab grown diamond prices was $4,383 in 2021, up 8.6% from 2020. On the other hand, the average natural diamond price was $8,053 in 2021. Because lab-grown diamonds are less expensive, they have grown in popularity as a way to afford more for less.

So, why are lab created diamonds worth less? The process of growing a lab created diamond is much less difficult than mining natural diamonds. Typically, lab-grown diamonds can be sold for30%-40% less than natural diamonds. If you’re wondering how to sell lab grown diamonds, it’s important to understand their market dynamics and the factors that influence their resale value.

With the rise in popularity of lab grown diamonds, one of the most asked questions is, do lab diamonds hold value? And for that matter, do natural diamonds hold value? The bad news is lab diamonds don’t hold their value quite the same as natural diamonds. When considering lab grown diamond resale value, it’s important to note that depending on the current diamond industry market, a natural diamond typically holdsaround 25% to 50%of its value, while by some estimates, lab-grown diamonds may hold little to no resale value.

But exactly how muchdo lab-grown diamonds depreciate in value?A resold lab-grown diamond may only be worth aminimal amount upon resale; however, you may earn a profit with the right buyer in the right market.