Diamonds have always been associated with value, status, and rarity. They are often given as a symbol of love or worn as a sign of success. However, with the rise of laboratory-grown diamonds, many are questioning whether these gems hold their value over time. This article explores the value of lab-grown diamonds and compares them to natural diamonds.
What Determines Diamond Value?
The monetary value of diamonds is affected by various market variables such as supply and demand. Just like gold, silver, and platinum, the value of diamonds fluctuates based on the demand for the commodity. When new diamond mines are discovered, the price of diamonds decreases due to an increase in the supply line. Conversely, when the demand for diamonds rises, their value increases. The scarcity of natural diamonds on Earth means that their value generally increases or remains consistent over time. However, the same cannot be said for lab-grown diamonds.
Lab-Grown Diamonds and Investment
One of the significant factors that determine the value of a product is its scarcity. Lab-grown diamonds are not in short supply, which means that their resale value is relatively low compared to natural diamonds. However, lab-grown diamonds do offer several benefits that appeal to modern buyers. They are optically and physically identical to natural diamonds, created with responsibly sourced materials, and produced in a socially responsible way. In contrast, natural diamonds are often linked to human rights and ecological concerns. Not all diamond jewelers adhere to ethical and social standards when sourcing their natural diamonds.
While high-quality natural diamonds tend to retain their value quite well, lab-grown diamonds are less predictable. Although they offer many benefits, the limited resale value of lab-grown diamonds is a factor to consider when making an investment. Whether you choose natural or lab-grown diamonds, it is essential to purchase them from reputable and ethical sources. Ultimately, the value of diamonds is determined by their beauty, rarity, and desirability to the individual.
Value of Lab-Grown Diamonds
Lab diamonds don’t have a limited supply, and this affects their value. This is part of the reason lab-created diamonds have seen a decline in resale value in recent years. Unlike natural diamonds mined from the earth, lab diamonds won’t usually gain value. In fact, in recent years, their value hasn’t kept up with inflation, mostly due to the increased availability of lab-grown gemstones. A lab-grown diamond isn’t going to bring much, if any, return on investment. On the other hand, natural diamonds can increase in value based on relative scarcity and fluctuating market demand. Still, in the eyes of many, the benefit of a beautiful, affordable lab diamond stone and artfully designed ring counters the value shift.
Price of Lab-Grown Diamonds
In the past few years, lab-grown diamonds have become more popular than ever, and with increased demand, suppliers have responded by ramping up production. This has caused the price of lab-grown diamonds to fall, allowing modern consumers to attain beautiful diamond jewelry pieces for lower prices. With that said, it’s important to remember that a diamond is only part of what makes jewelry valuable; the precious metal content and uniqueness of the design also greatly contribute to overall pricing.
Resale Value of Lab-Created Diamonds
While lab-grown diamonds have seen a decline in resale value, this shouldn’t be viewed as a reflection on the quality of the gemstones. The reason lab diamonds are up to 50% less costly than natural diamonds is not that they are lower quality. On the contrary, lab diamonds tend to be less expensive because they aren’t as scarce, and the supply chain is much shorter. Ultimately, it’s important to remember that the point of buying a stunning diamond piece is not to resell it later. Ultimately, you are buying an elegant reflection of your style or a meaningful token of love that will become an heirloom that can be passed down for generations.
The Real Value of Your Diamond
What exactly makes a natural or lab diamond an investment-grade gemstone? In most instances, it’s the color, cut, clarity, and carat weight. The higher a diamond ranks in these key categories, the greater its monetary value now and in the future. Much like the purchase of a vehicle, a diamond’s value can rapidly depreciate after the initial purchase. But if you buy a high-quality jewelry piece and take good care of it, you can expect to maintain a relatively consistent value that may even go up over time. Ultimately, however, it’s important to remember that the real value of a diamond is how it represents your endless love story.
Choose Your Perfect Diamond from LaBrilliante
When crafting our unique jewelry pieces, LaBrilliante only uses the absolute highest-quality diamonds that were created by us. When they are paired with his artfully designed jewelry pieces, these exquisite gemstones create wearable works of art that hold considerable value, both in terms of dollar figures and in terms of deep emotional meaning. While deciding on the perfect engagement ring or other jewelry pieces such as diamond pendants, diamond tennis bracelets or diamond studs can feel intimidating, your experience never has to be that way. At LaBrilliante, our knowledgeable consultants can show you how to select the perfect stone.