Diamonds are no longer exclusively rare gems pulled from deep within the Earth.
Increasingly, they’re also grown in labs, and the shift is transforming the traditional jewelry market.
According to The Wall Street Journal, lab-grown diamonds now account for more than 20% of global diamond jewelry sales. For engagement rings, it’s over 50%.
Even major retailers like Walmart and Signet are expanding their lab-grown offerings.
The right stone choice depends on your goals. Here’s what to weigh.
Know your priorities before buying
If you’re shopping for a diamond, price may top of mind. A 1-carat lab-grown diamond now costs approximately $745, compared to $3,925 for a natural one, a fivefold difference, according to analyst Paul Zimnisky.
Lab-grown diamonds are chemically identical to mined diamonds and often indistinguishable without special tools. The affordability makes them appealing to budget-conscious shoppers who want a big sparkle without a hefty bill.
However, some buyers still value the symbolism and natural origin of mined diamonds. The diamond industry, including brands such as De Beers, is investing in marketing campaigns aimed at reviving interest in natural diamonds.
Resale value is not guaranteed
If you’re buying a diamond as an investment, be cautious. The resale market for both lab-grown and natural diamonds can be unpredictable.
While natural diamonds have historically retained more value, that trend may be shifting. Lab-grown prices have dropped sharply — by 86% since 2016 — but natural diamonds are also down 40% during the same period, The Wall Street Journal reports.
Some experts suggest that neither type offers reliable returns, and that diamonds of any kind should be viewed more as personal or sentimental purchases than financial assets.
Selling older pieces? Do your homework
If you’ve inherited diamond jewelry or are looking to sell older pieces, it’s important to manage expectations, according to the Wall Street Journal. Even natural diamonds might not command high resale prices, especially if styles are outdated or demand is low.
While resale can be tricky for lab-grown stones due to market saturation, designer names or vintage settings may still offer some appeal.
A professional appraisal could help set realistic expectations and clarify whether it’s worth selling now or holding onto the piece for sentimental or future value.
What really matters when choosing a diamond
The choice between lab-grown and natural diamonds isn’t just financial; it’s also emotional.
Some buyers are deeply concerned with tradition or origin stories. Others just want a beautiful stone at the best price.
Sellers may prioritize cash value or preserving heirloom pieces for future generations.
Whatever your situation, understand the current market, be clear on your goals, and shop (or sell) accordingly.
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