Do Lab Grown Diamonds Hold Their Value?
In a nutshell, no.
Over the past few years, lab grown diamonds have taken the jewelry world by storm as we are seeing them offered at more and more stores, and for obvious reasons. These scientifically crafted gems offer the same brilliance as their mined counterparts but at a fraction of the cost – up to 80% less!
The worldwide market for lab grown diamonds has expanded swiftly in recent years. According to the 2024 Global Market and Research Report, the market is projected to increase from $23.3 billion in 2023 to $25.68 billion in 2024, reflecting a compound annual growth rate (CAGR) of 10.2%. Looking ahead, the lab-grown diamond market is expected to keep thriving, predicting to reach $35.97 billion by 2028, at a CAGR of 8.8%. But do lab grown diamonds hold their value?
What’s the Resale Value of Lab Grown Diamonds?
Popularity doesn’t always equate to long-term value. Unlike natural diamonds, which typically retain 25% to 50% of their value, lab grown diamonds may hold little to no resale value. Shocking, right?
Their lack of resale value may be attributed to the over-flooding of the market – they currently make up 20% of all diamonds being sold or traded. In the long-term, due to over-saturation, lab grown diamonds will likely decline in value and therefore be less in demand.
Resale value isn’t what should determine your decision, however. While they might not be a good financial investment, lab grown diamonds offer other compelling benefits. They are 100% ethically sourced and allow you more bling for your buck. Moreover, the technology for creating lab grown diamonds is constantly evolving and no one knows how that may impact things in the distant future.
It’s fair to say that the future of the diamond market is uncertain. While many industry experts predict a shift back to natural diamonds as lab-grown diamonds lose value, the impact of rapidly advancing technology on this trend remains unpredictable. As with anything, the age-old rule of thumb of living within your means is the best guide. If that translates into buying a smaller natural diamond instead of a larger lab grown diamond, then wear it with genuine pride. On the same token, if resale value doesn’t matter much to you, then go for the bling!
