Do Lab-Grown Diamonds Hold Their Value? Resale Value, Price Trends, and What Buyers Should Know

Lab-Grown vs. Natural Diamonds: A Quick Refresher

Before diving into resale value, it helps to understand what separates these two types of diamonds—and what doesn’t.

Lab-grown diamonds are created in controlled environments using one of two methods: High Pressure High Temperature (HPHT) or Chemical Vapor Deposition (CVD). The result is a real diamond. It has the same crystal structure, the same hardness, and the same optical properties as a mined stone. The Gemological Institute of America (GIA) grades them using the same criteria: carat weight, cut, color, and clarity.

Natural diamonds form over billions of years deep within the Earth’s mantle, then travel to the surface through volcanic activity. Their supply is finite, their formation is unrepeatable, and each stone carries a geological history that can’t be manufactured.

The physical product is essentially the same. The difference that matters for resale value is entirely about supply, rarity, and market perception. Check out our complete range of lab grown diamonds for sale in our colleciton. 

Do Lab-Grown Diamonds Have Resale Value?

The short answer: yes, but it’s low—and getting lower.

Most jewelers and diamond buyers will offer somewhere between 10% and 30% of the original retail price for a lab-grown diamond. Some won’t buy them back at all. The secondary market for lab-grown diamonds is thin, and there’s little demand from resellers when new stones can be produced in weeks at ever-decreasing costs.

Here’s why lab-grown diamond resale value is so limited:

• Production costs keep falling. The technology to grow diamonds improves every year. Stones that cost $8,000 a few years ago might retail for $2,000–$3,000 today. A buyer on the resale market has no reason to pay a premium for a used lab-grown diamond when they can buy a brand-new one for less than what the original owner paid.
• There is no scarcity. Natural diamonds have a controlled, finite supply. Lab-grown diamonds can be produced in virtually unlimited quantities. Without scarcity, there’s no mechanism for prices to hold—let alone appreciate.
• Resale infrastructure barely exists. The secondary market for natural diamonds, while imperfect, has established channels: estate jewelers, auction houses, consignment shops, and certified pre-owned dealers. The resale market for lab-grown diamonds is still in its infancy, and most of these channels either don’t accept lab-grown stones or price them very aggressively.
• Perceived value is shifting. As lab-grown diamonds become more common and more affordable, consumer perception is evolving. What felt like a premium alternative a few years ago increasingly feels like a commodity. That shift in perceived value directly impacts what someone will pay on the secondary market.

 Read the full guide on lab grown diamond vs natural diamonds.

How Does Natural Diamond Resale Value Compare?

Natural diamonds aren’t a great financial investment either, but they hold value significantly better than lab-grown alternatives.

A typical natural diamond retains roughly 30% to 60% of its retail price on the resale market, depending on quality, certification, and market conditions. Exceptional stones—those with high carat weight, ideal cut grades, rare color grades, or notable provenance—can retain more, and in some cases appreciate over long time horizons.

Several factors support natural diamond resale value:

• Finite supply with steady demand. Mining output has been relatively flat for years, and several major mines are reaching the end of their productive lives. Meanwhile, global demand for natural diamonds—particularly in engagement rings—remains strong. That supply-demand balance supports prices.
• Established resale channels. You can sell a natural diamond through jewelers, auction houses, online marketplaces, and certified dealers. These channels provide liquidity that lab-grown diamonds simply don’t have yet.
• Rarity as a value anchor. Every natural diamond is unique, formed by geological forces over an incomprehensible time scale. That rarity provides an intrinsic floor on value that manufactured goods typically lack.
• Brand and emotional weight. For better or worse, the cultural significance of natural diamonds—as heirlooms, as symbols of enduring commitment—continues to support their monetary value. Buyers in the resale market are willing to pay a premium for a stone they know is “natural.”

That said, it’s important to be realistic. You will almost certainly lose money reselling any diamond, natural or lab-grown. The question is how much—and whether resale value even matters for your purchase.

Diamond Resale Value: A Side-by-Side Comparison

Why Lab-Grown Diamond Prices Keep Dropping

One of the biggest factors in the lab-grown diamond resale story is the price trajectory of new stones. Understanding this helps explain why resale values are so compressed.

When lab-grown diamonds first hit the mainstream market, they were priced at roughly 20%–30% less than comparable natural diamonds. That discount has expanded dramatically. Today, many lab-grown diamonds sell for 70%–90% less than equivalent natural stones, and that gap continues to widen.

The driver is simple: technology gets cheaper. Growing a diamond in a lab used to require enormous capital investment and weeks of production time. Modern CVD reactors can produce high-quality stones faster and at lower cost. As more producers enter the market—particularly in India and China—competition pushes prices lower.

For the buyer, this is actually great news at the point of purchase. You get a beautiful, real diamond for a fraction of what it cost just a few years ago. But at the time of resale, it means your stone is competing against new inventory that costs less than what you originally paid. That’s a structural problem for resale value, and there’s no indication it will reverse.

When Lab-Grown Diamonds Still Make Sense

If resale value is poor, why would anyone buy a lab-grown diamond? Because for many buyers, resale value isn’t the point.

• You’re buying jewelry, not an investment. Most people don’t buy engagement rings or diamond earrings expecting to sell them later at a profit. If you’re buying a diamond to wear and enjoy, a lab-grown stone gives you more sparkle for your budget. You can get a larger carat weight, a higher clarity grade, or a better cut—all for less money.
• Your budget matters more than future resale. A couple spending $5,000 on an engagement ring might choose between a 0.8-carat natural diamond and a 2-carat lab-grown diamond. If the goal is a stunning ring they’ll love wearing every day, the lab-grown option delivers more visual impact per dollar.
• Ethical and environmental considerations matter to you. While the environmental footprint of lab-grown diamonds is debated, they avoid the ecological disruption and human rights concerns associated with some mining operations. For buyers who prioritize these values, the lower resale value is an acceptable trade-off.
• You plan to keep it forever. If you’re buying diamond stud earrings you’ll wear for decades, or a pendant that will live in your jewelry box permanently, resale value is irrelevant. The diamond’s value to you is in the wearing, not the selling.

If this still does not make sense, read our guide comparing lab grown diamonds vs cubic zirconia

When Natural Diamonds Are the Better Choice

Natural diamonds make more sense when long-term value retention is part of your decision.

• You’re buying an heirloom. If you want a piece that will be passed down through generations, and you want it to retain meaningful monetary value along the way, a natural diamond is the safer bet. The market dynamics that support natural diamond prices have held for decades.
• Resale flexibility matters. If there’s any chance you might upgrade, trade in, or sell the stone in the future, a natural diamond gives you more options and better returns. Most jewelers who offer buy-back or trade-up programs give significantly better terms on natural stones.
• You value rarity. Some buyers care that their diamond is one-of-a-kind, formed by nature over billions of years. That’s not a financial argument—it’s an emotional and philosophical one. But it’s real, and it does support resale value because other buyers share that preference.
• You’re purchasing a high-value stone. The higher the carat weight and quality, the more the resale gap matters in absolute dollars. Losing 70%–90% on a $2,000 lab-grown diamond stings. Losing that on a $15,000 stone is financially significant.

How to Choose: A Decision Framework

Deciding between lab-grown and natural diamonds comes down to a few key questions:

• What’s your primary goal? If you’re maximizing visual impact for your budget and plan to keep the jewelry forever, lab-grown diamonds offer exceptional value. If you want long-term value retention or plan to potentially resell, natural diamonds are stronger.
• What’s your budget? At lower budgets, lab-grown diamonds let you get a stone that looks and feels luxurious without stretching financially. At higher budgets, the absolute dollar risk of depreciation becomes larger, which may tip the scales toward natural.
• Do you care about resale at all? Be honest with yourself. Most people never resell their engagement ring or fine jewelry. If you’re in that camp, the resale discussion is academic. Buy what makes you happy within your means.
• What are your values? If ethical sourcing and avoiding mining are priorities, lab-grown diamonds align with those values—and the resale trade-off may feel entirely worthwhile.
• Are you buying for someone else? If you’re buying an engagement ring, consider your partner’s preferences. Some people strongly prefer a natural diamond for its symbolism and rarity. Others are drawn to lab-grown for its value proposition and ethics. This isn’t a decision to make based on spreadsheets alone.

Tips for Maximizing Resale Value (Either Type)

Whether you choose lab-grown or natural, a few practices help protect whatever resale value your diamond carries:

• Buy certified. Always purchase diamonds that have been graded by a reputable lab—GIA, IGI, or GCAL for lab-grown stones; GIA or AGS for natural. Certification is essential for resale because it gives buyers confidence in what they’re getting.
• Keep all documentation. The original grading report, purchase receipt, and any appraisals should be stored safely. These make the resale process smoother and help you command a better price.
• Choose classic settings. Trendy, unusual settings may be harder to resell. Solitaires, three-stone designs, and classic halo settings have the broadest appeal on the secondary market.
• Prioritize cut quality. Of the four Cs, cut has the biggest impact on a diamond’s visual appeal—and on its resale desirability. A well-cut diamond sparkles more, photographs better, and attracts more buyers.
• Buy from reputable jewelers. Diamonds from well-known, reputable sources tend to carry more credibility on the resale market. Buying from unknown online sellers at rock-bottom prices may save money upfront but can hurt resale credibility later.

Frequently Asked Questions

Do lab-grown diamonds hold their value over time?

Generally, no. Lab-grown diamonds lose a significant portion of their purchase value almost immediately and continue to depreciate as production costs fall and new stones become cheaper. Most resale offers fall between 10% and 30% of the original retail price. This is a structural issue driven by unlimited supply and falling production costs, not a reflection of the diamond’s quality or beauty.

Can you resell lab-grown diamonds?

You can, but your options are limited. Some jewelers and online platforms will buy lab-grown diamonds, though typically at steep discounts. The resale market for lab-grown stones is much less developed than for natural diamonds. A few retailers offer trade-up programs, which may give better value than an outright sale, so it’s worth asking before you buy.

Are lab-grown diamonds real diamonds?

Yes. Lab-grown diamonds have the same physical, chemical, and optical properties as natural diamonds. They are real diamonds by every scientific and gemological measure. The GIA and other grading labs certify them using the same standards. The difference is origin—one formed in the earth, the other in a laboratory—which affects market value and rarity, but not the material itself.

Can you tell the difference between lab-grown and natural diamonds?

Not with the naked eye, and not with standard gemological tools. Even trained jewelers cannot distinguish them visually. Specialized equipment can detect certain growth patterns and trace element differences, and grading reports will indicate whether a diamond is lab-created or natural. For practical purposes, they look identical when set in jewelry.

Will lab-grown diamond prices stabilize?

It’s possible, but current trends suggest prices will continue declining for the foreseeable future. As production technology improves and more manufacturers enter the market, competition drives prices lower. Some industry observers believe prices will eventually stabilize at a floor set by production costs, but when that happens, and at what price point, is uncertain.

Is a lab-grown diamond a good choice for an engagement ring?

It can be an excellent choice, depending on your priorities. If you want the largest, most beautiful diamond your budget allows and you plan to keep the ring forever, lab-grown offers outstanding value. If future resale value, heirloom potential, or traditional symbolism of a natural stone matters to you or your partner, a natural diamond may be worth the premium.

How much cheaper are lab-grown diamonds compared to natural?

As of recent market pricing, lab-grown diamonds typically cost 70%–90% less than comparable natural diamonds. A 1-carat, well-cut lab-grown diamond might retail for $500–$1,500, while an equivalent natural stone could range from $4,000–$10,000 or more depending on quality. This price gap has widened significantly over the past several years and continues to grow.