Do Lab Grown Diamonds Hold Their Value?

by Ultimate Jewelry Guide
Do Lab Grown Diamonds Hold Their Value?

Lab-grown diamonds are a relatively new concept in the world of jewelry, but it’s one that has been growing in popularity ever since they first came onto the market.

The idea is to create diamonds from a lab instead of digging them out of the ground, which means they’re more environmentally friendly and less expensive than traditionally mined diamonds.

But does this mean they always hold their value? This blog post will explore some reasons why lab-grown diamond prices may fluctuate over time and how you can make sure your investment stays worth something.

What Are Lab Grown Diamonds?

A lab-grown diamond is a stone that has been made available in a lab setting with the same physical and chemical properties as mined diamonds. These stones are not from the earth’s surface so they do not have a mineralogical or geographical origin. They can be produced in a very limited or high supply and offer similar physical characteristics as mined diamonds.

They also look just like what nature has crafted for us, but with lab-grown diamonds, you can get them at a lower price. 

These stones are created in controlled environments with the same physical properties as mined stones making it difficult to determine which is real or not just by looking at them. You may have more options for colorless lab-grown diamonds than natural ones.

The reason being, they are manmade and they can be created to match the market demand or be customized to suit your preferences.

Why Should You Purchase A Lab Grown Diamond?

There are a number of advantages to purchasing lab-grown diamonds. For example:

  • You can purchase them at wholesale prices as opposed to retail prices.
  • In addition, they do not have any negative environmental effects that come with the mining process since no mines or quarries need to be excavated in order for these gems to exist.
  • Furthermore, there is also increased availability of lab-grown diamonds as compared to natural ones.
  • Lab-grown diamonds are also less expensive than their mined counterparts due to these factors along with the fact that they are created in a controlled environment.

What Determines The Value Of Lab Grown Diamonds?

Lab-grown diamonds are often criticized because they’re made in a factory, not formed by nature. However, the value of lab-grown diamonds is determined on the same basis as naturally occurring diamonds – surprising right?

While some people feel that these stones aren’t as valuable as mined ones, others believe it’s still worth investing in them.

Carat Weight

The value of a lab-grown diamond is based on the weight of carats, which is determined by its size. A larger stone will have a higher price per carat than a smaller one with the same quality grade.


The shape of a diamond also determines its value. A round brilliant cut is the best for reflecting light, so it’s considered to be the most valuable and has one of the highest price per carat values out there.


Lab-grown diamonds are also evaluated based on their color. The GIA grades colored stones from D to Z, with the best being a D and going all the way down to an I for light yellowish stones.


The cut is another factor that affects lab-grown diamond value because it’s critical in reflecting light. This is the only one that can’t be determined visually by a trained professional.


Lab-grown diamonds are usually clear, so they have to meet certain clarity grades just like mined ones do in order for them to sell at a premium price. This grade includes how many flaws and inclusions the stone has. The fewer there are, the higher the price per carat will be.


Lab-grown diamonds must be certified by a reputable grading service such as the GIA, AGS (American Gem Society), or IGI to ensure their authenticity and quality. The certification determines how much it’s worth.

Do Lab Grown Diamonds Hold Their Value?

No, unfortunately, lab-grown diamonds don’t hold their value after purchasing them. If you are looking for an investment, then it is best that you purchase natural diamonds. The only time this may not be the case is when a lab-grown diamond has actually been graded by GIA or another reputable grading service.

The reason why lab-grown diamonds don’t hold their value after purchasing them is that they have less of what makes diamonds valuable. For example, there is usually less carat weight in lab-grown diamonds than the natural ones do. This means that they are simply worth less at purchase time because you get what you pay for (i.e., a smaller quantity of something).

Lab-grown diamonds also lack their own history and unique characteristics to offer buyers. Since a natural diamond has been around for millions of years, it offers more value to the buyer. This is something that lab-grown diamonds just can’t compete with. As such, they have less value because they are not as unique or rare as their counterparts from the earth’s crust.

In conclusion, if you want to add some value to your diamond investment, then it is best that you purchase a natural diamond. This will pay off more in the long run as time goes on and prices rise for other diamonds.

Are Lab Grown Diamonds A Good Investment?

It’s an interesting question that many are asking these days. Consumers are showing interest in lab-grown diamonds because they don’t mind paying more for a quality diamond, but the big concern is whether or not it will be worth their investment. 

In some cases, consumers are paying an extra 20% for a lab-grown diamond that holds the same value as a mined one. This is because it’s becoming more and more difficult to find high-quality diamonds in mines around the world due to over mining. 

The biggest challenge with this type of investment is finding out who will buy the diamonds once you are ready to sell them. The market for lab-grown diamonds can vary greatly depending on where the diamond was grown and its size, among other factors.

While some people believe that they will lose money by buying these, others say that this new industry has a promising future ahead of itself due to the increasing demand for ethically sourced jewelry. 

In the end, this is a buyer’s market and consumers need to do their research before making any decisions.

Are Lab Grown Diamonds Valuable?

The value of a diamond depends on its size, color, and clarity. If you take these into consideration then yes, lab-grown diamonds are worth it depending on these factors – as explained above.

Lab-grown diamonds also do not require much effort to mine them since it is made through technology thus making their cost low and ideal for people who want to purchase a diamond but do not have enough money.

Lab-grown diamonds are also identical with mined ones where you cannot tell the difference between them by just looking at it, as long as they’re certified of course. They even come out in some colors such as yellow or pink which can be perfect for those who want to purchase a colored diamond.

Lab Grown Diamonds VS Natural Diamonds: Similarities and Differences

  • Lab-grown diamonds are formed by placing a small diamond in an oven with extreme heat and pressure, which forms the synthetic stone. This process is called “chemical vapor deposition” or CVD.
  • A new treatment has recently been developed that uses the same chemical gas used to create lab-grown diamonds but can be applied on natural stones, which is called “chemical vapor infiltration” or CVI. 
  • Lab-grown diamonds are not considered conflict-free by the Kimberley Process Certification Scheme (KPCS) because they do not come from mines in Africa and therefore cannot be verified as coming from a conflict-free region. Natural mined diamonds can make up 40% of the value of a diamond. 
  • Because lab-grown diamonds are made of the same material as natural mined diamonds, they have essentially the same chemical makeup and properties, including color, clarity, carat weight, cut quality, etc. The only difference is that lab-grown stones are perfect whereas natural diamonds come with imperfections that may or may not affect the diamond’s appearance. 
  • Lab-grown diamonds are more environmentally friendly, due to the fact that natural mined diamonds require at least 100 tons of earth to be moved in order for one stone to be found whereas lab-grown stones only use about a ton of material and there is no carbon footprint whatsoever from their production process. Natural mined diamonds take over millions of years to form whereas lab-grown diamonds only take months.


As you can see, there are many similarities and differences between lab-grown diamonds versus natural mined diamonds.

Depending on what matters most to you (toughness or price) and your personal preferences (perfection vs imperfections), consider the pros and cons of each type before making a purchase.

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