Lab-grown diamonds, identical in their physical, chemical, and optical properties to their natural counterparts, have revolutionized the jewelry industry. Offering consumers ethically sourced and more affordable alternatives, they sound like a great deal, right? But what happens if you try to resell them? Things get tricky here.
Unlike natural diamonds, which have historically held some level of worth and typically resell for 20-60% of their original purchase price, lab-grown diamonds often fetch significantly less, primarily due to their replicable nature and limited secondary market demand.
In fact, since 2020, prices for lab diamonds have descended by over 74%, and the resale market is practically non-existent.
So, does that mean lab-grown diamonds are a bad investment? Not necessarily. It all comes down to what you are buying them for—love, fashion, or financial value. In this post, we’ll discuss the reality of selling a lab-grown diamond, why the market works the way it does, and whether these man-made gems are truly worth it in the long run.
The Growing Market for Lab Grown Diamonds
The resale market for lab grown diamonds has grown fast in recent years.
A report by Fortune Business Insights said these diamonds made up 15% of the global diamond market in 2020. By 2032, this number could reach 74.45 billion
Several factors are driving this rise.
- Making lab grown diamonds costs less. Advanced methods like high pressure, high temperature, and Chemical Vapor Deposition create them. These methods are much cheaper than mining. Because of this, lab grown diamonds cost 30-40% less than natural ones.
- Many buyers prefer them for ethical reasons. They are eco-friendly and free from conflict. A report by Frost & Sullivan says they produce 4-6 times less carbon than mined diamonds
- Quality is another factor. Quality comes when man-made diamonds have the same chemical, physical, and optical properties as natural ones. Organizations like the Gemological Institute of America and the International Gemological Institute registered them with a report that confirms the quality.
People are more attracted to lab grown diamonds, but they get back after thinking about the resale value. The resale value of lab grown diamonds remains a big question.
What is the Resale Value of Lab Grown Diamonds in 2025?
Lab grown diamonds lose more value when resold compared to natural diamonds. They usually sell for only 10-30% of their original price, while natural diamonds keep 50-70%.
Several reasons explain this difference:
- Market Perception: People think lab-grown diamonds are less valuable comparatively. They are not rare like natural diamonds, which take billions of years to form. Instead, they are made in weeks.
- Depreciation: These lab-made diamonds lose value more quickly than natural diamonds. Their production is cheaper, and supply keeps growing. New technology makes them even easier to create, further lowering their resale price.
- Weak Resale Market: There is little demand for second-hand lab-grown diamonds. Natural diamonds have a strong resale market. But lab-grown ones are usually sold back to stores or online, often at a big loss.
- Certification and Branding: Diamonds with certifications from trusted sources like GIA or IGI may keep a bit more value. But even top-quality lab-grown diamonds struggle to match the resale value of natural ones.
Where Can You Resale Lab Grown Diamonds?
Reselling lab grown diamonds isn’t easy. The market keeps changing, and the demand in the resale space is low. Unlike natural diamonds, which have an established resale network, lab grown ones lose value quickly. Buyers are also limited. Still, there are ways to recover some of your investment.
- Jewelry Retailers: One option is to check with jewelry stores that sell lab grown diamonds. Some well-known retailers, like Karaters, have buy-back or trade-in programs. But these programs often come with conditions. Many only accept trade-ins if you’re upgrading to a more expensive diamond. Even then, they offer much less than what you originally paid. Prices drop due to market shifts and cheaper production costs.
- Online Marketplaces: Online platforms like eBay, Craigslist, and Facebook Marketplace allow direct selling. You set the price and negotiate, which can lead to better deals than stores offer. However, this method has challenges. Good photos, detailed certifications, and proof of authenticity are needed. Buyers on these sites also want big discounts. Scams, fake payments, and disputes over authenticity are risks.
- Diamond Buyers: Selling to diamond buyers or pawnshops is another possibility, though it usually results in the lowest offers. Most diamond buyers focus on natural stones and avoid lab grown ones due to low resale demand. Pawnshops may buy them but usually pay only 10–20% of the original price. Their goal is quick resale, not long-term value.
Tips to Maximize the Resale Value of Lab Grown Diamonds
Lab-grown diamonds lose value faster than natural ones. But you can still take steps to get a good resale price.
- One important thing is to buy from trusted sellers like Karaters. They provide certification from IGI or GIA. A certified diamond gives buyers confidence in its quality and authenticity.
- Diamond quality affects resale value too. A well-cut stone with high clarity and a near-colorless grade (D-F) looks more appealing. Better cuts reflect more light. Fewer imperfections mean a cleaner, more valuable diamond.
- Keep all paperwork safe. Receipts, certificates, and appraisals prove the diamond’s details. Buyers trust diamonds with proper documentation, making it easier to get a fair price.
- Selling at the right time matters. Demand for diamonds rises before engagement season (November–February) and holiday shopping periods. Selling during these times can bring in better offers.
A custom or designer setting can also help. A unique, high-quality setting in platinum or 18K gold adds value. Buyers often prefer a set diamond over a loose one, making it easier to sell at a good price.
Will pawn shops buy lab grown diamonds?
Most pawn shops will not buy lab-grown diamonds because of their little demand in the resale market and falling prices. Unlike natural diamonds, which hold some value over time, lab-grown ones are mass-produced, and their prices keep dropping. If they do, expect a very low offer. If you want to sell, online marketplaces or specialty jewelers can be better options, though resale prices are still pretty low.
So, Are Lab-Grown Diamonds Still Worth It Despite Their Declining Resale Value?
Lab-grown diamonds might not hold high resale value like natural diamonds, but that doesn’t mean they are not worth buying. If you want a beautiful, budget-friendly, and ethical alternative, they are a great choice. But keep your hopes low in terms of resale as prices keep dropping, and most buyers are not interested in secondhand lab-grown diamonds.
So, if the selection of lab-grown diamond is for love, style or personal preference, go for it, however, not for investment purposes.
Interested in buying? Check Out our exquisite Lab-Grown Diamond Jewelry Collection.