Can Lab-Grown Diamonds Maintain Their Value? An Honest Discussion

Quick Primer: What “Value” Actually Means in the Diamond Market

 Before we look at lab-grown diamonds specifically, it helps to define what we mean by “value.” People often mix up a few different ideas:

·         Market value is what someone is willing to pay for it today.

·         Resale value is what you’d get if you tried to sell it later.

·         Emotional value is what it means to you personally.

With natural diamonds, market and resale values have been shaped by long-standing industry controls—limited supply, strong branding, and traditional mindsets. Lab-grown diamonds don’t follow that same model. They’re newer, more accessible, and easier to produce at scale. That shifts how they’re priced—and how they’re valued in the long term.

This doesn’t make them better or worse. It just means they operate under a different set of rules, and buyers need to understand those differences.

What We Know About the Lab-Grown Diamond Market So Far

 The lab-grown diamond industry has grown fast. In just a few years, it’s gone from niche to mainstream. Tech has improved, production costs have dropped, and consumer interest keeps rising.

Pricing Trends

Lab-grown diamonds now sell for 60–85% less than comparable mined diamonds, according to market research from industry sites like Rapaport and IDEX Online. That gap continues to widen as supply increases and more manufacturers enter the market.

What’s Happening in Australia

In Australia, demand for lab-grown diamonds is picking up. Local jewellers are expanding their offerings, and some retailers now focus exclusively on lab-created stones. The Australian Diamond Network and other jewellery businesses report stronger interest from younger buyers—especially couples looking for ethical, affordable options.

While Australia doesn’t produce many of its own lab-grown diamonds, global supply chains keep prices competitive. That gives local shoppers more choice without the premium price tag.

Production Keeps Expanding

Globally, most lab-grown diamonds come from China, India, and the U.S. New production methods—like chemical vapour deposition (CVD)—have made it cheaper to grow high-quality stones quickly. That’s great for accessibility, but it also means resale value may be affected by ongoing supply.

Bottom line: lab-grown diamonds are here to stay. But like any product that becomes easier to make, prices may keep trending down. That matters when we talk about long-term value.

Resale Reality: Can You Sell a Lab-Grown Diamond Later?

 Here’s the honest answer: yes, you can sell a lab-grown diamond—but you probably won’t get much for it.

Unlike natural diamonds, which have a long-established resale market, lab-grown diamonds don’t hold value in the same way. Most jewellers in Australia (and globally) don’t offer buyback programs for lab-created stones. Some may accept them as trade-ins, but usually at a steep discount.

Why the Resale Value Is Low

There are a few reasons for this:

·         Supply is growing fast, so there’s no shortage.

·         Prices are dropping, which makes older stones less competitive.

·         Market perception is still catching up—many buyers see them as non-investment items.

Even some resale platforms like eBay or private Facebook groups can be hit or miss. Sellers often find they can’t recoup much of what they paid.

The Natural Diamond Comparison

Natural diamonds tend to have better resale value, but even then, it’s not great. Most people lose 30–50% when reselling, unless it’s a rare or high-end stone. The idea that natural diamonds are a good investment has always been a bit overstated—especially for standard retail stones.

So while lab-grown resale value is lower, neither option guarantees strong returns.

Are Lab-Grown Diamonds Still Worth It Without Strong Resale?

 If resale value is low, is it still worth buying a lab-grown diamond?

For a lot of people, yes. Because the value they care about isn’t about selling later—it’s about getting a high-quality stone now without overpaying.

 Here’s What You Do Get

·         Lower cost upfront. You can get a bigger or higher-grade stone for less money.

·         Same look and quality. Visually and chemically, lab-grown diamonds are real diamonds.

·         Ethical sourcing. No mining means less environmental impact and fewer human rights concerns.

For many Aussie buyers—especially younger ones—those trade-offs make sense. You’re not buying a diamond as an asset. You’re buying it as a symbol, a gift, or just something beautiful.

The Cultural Shift

There’s also a growing mindset shift. More people care about sustainability and fairness in the products they buy. That changes what “value” means. Over time, this may even reshape the second-hand market. But for now, most buyers accept that lab-grown diamonds are more like a car than a savings bond—they lose value but still deliver real use and satisfaction.

Making a Smart Choice Based on What Matters to You

 Lab-grown diamonds probably won’t hold strong resale value—and they’re not meant to. But that doesn’t make them a bad choice.

If you’re after a beautiful, ethical diamond at a lower price, they deliver. Just go into it knowing what you’re getting: a high-quality product, not a financial investment.

Before you buy, ask the right questions:

·         Is this diamond certified?

·         What’s the return or upgrade policy?

·         Am I buying it for long-term resale or for what it means today?

In the end, value isn’t just about money. It’s about what matters to you.