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September 24, 2020 2 min read

When discussing lab grown diamonds we’re often asked about their resale value, which is why we thought we’d put together this useful guide so you can understand everything you need to know about the lab grown diamond resale market! 
 
It is a common misconception that lab grown diamonds have no resale value, just like mined diamonds, lab grown diamonds and can be sold in a similar way to mined diamonds. 

loose lab grown diamonds

The Pricing of Diamonds

The market value for both lab grown diamonds and mined diamonds is determined according to their quality, which is graded by the 4C’s, cut colour, clarity & carat weight. This allows each diamond to have its place on the market, which has an internationally recognised pricing system. The retail & wholesale value of lab and mined diamonds is determined as a percentage of market rate, which means that lab grown diamonds are traded on a market just like any other commodity. 

hand modeling lab grown diamond engagement ring holding bunch of green grapes

Understanding The Natural Diamond Resale Market

The reality is that if you have purchased a natural mined diamond it is highly unlikely that you will be able to sell it for a profit - unless it’s an investment grade diamond (which are extremely rare). This is because jewellers purchase their diamonds on a world-wide market and are able to negotiate the best prices with diamond wholesalers. For you to sell your diamond to a jeweler it would have to be at a favourable price and well below market rate - as there would be no incentive for a jeweller to buy your diamond above market rate. This makes it almost impossible to profit from selling your natural diamond. If you were to buy a natural diamond and try to resell it on the same day you would generally lose around 30%-70% on the initial purchase price. 

The Lab Diamond Resale-Market

The lab grown diamond resale market works in a similar way as the natural diamond resale market, which means lab grown diamonds can be resold just like mined diamonds. Although many small independent jewellers are not currently purchasing lab grown diamonds, at Pure Carats we may consider buying your stone upon evaluation. Feel free to contact us if you are interested in selling your lab diamond. 

The Supply Of Lab Grown Diamonds 

Although lab grown diamonds are man-made, the supply is still restricted. It is important to remember that a quality lab grown diamond can take weeks or months to grow in the laboratory, therefore it is not true that lab diamonds are ‘flooding’ the market. Larger & higher quality lab diamonds are only available in limited quantities and are not as readily available as people often think! 

Conclusion 

Diamonds, whether lab grown or natural are not a purchase that you should expect to make a return on, but should rather be considered an exquisite token of your everlasting love and an heirloom that can be passed through generations.


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