Wondering if lab diamonds have any resale value?
You're not the only one!
In this Learning Guide, I'll answer the most popular questions about resale value for lab diamonds like:
- Are lab diamonds worthless?
- Where can I resell a lab diamond?
- How to buy a pre-owned lab diamond?
Do Lab Diamonds Have Resale Value?
If you Google this question, you’re probably going to come with a bunch of results that say lab created diamonds are worthless in value.
Is this true? Is a lab diamond resale value $0?
Because colorless lab grown diamonds are easier to produce than colorless mined diamonds, their prices are always fluctuating.
For that reason, most online retailers that sell lab grown diamonds don’t offer a trade-in or upgrade policy.
Will Jewelers Buy Back a Lab Diamond?
The odds of getting a jeweler to buy back your lab diamond for cash are very slim. However, there’s a couple companies that do this, like Ada Diamonds. They may buy an independently graded lab grown diamond if it meets their standards.
Unlike a natural diamond engagement ring, you won’t be able to sell a lab grown diamond engagement ring at a pawn shop. Nor will you be able to get anything for it from a private bench jeweler.
Can You Resell a Lab Diamond?
A lot of diamond retailers will say lab diamonds have zero resale value. That’s not entirely true. You can sell a synthetic diamond, just not in the ways discussed above.
If you’re really needing to resell lab diamonds there’s a couple places you can sell them. Your options are limited to garage sale pages.
Some of these may include Facebook Marketplace, Mercari, and Poshmark. Anywhere you can resell previously owned items is your best bet. These three are the most popular currently.
The amount to resell your loose lab diamond or lab diamond ring will depend on its grades. If you have an eye-clean 2 carat lab diamond with D color, you’d probably get more.
Read also: Should You Buy a 2 Carat Diamond?
Have a Copy of the Receipt
Don’t buy a lab diamond from a person who doesn’t have the original or copied receipt. Having the receipt after the exchange will help with any issues you might come across with the original retailer or warranties. You can also match SKU to the look of the ring too.
If a customer claims to have no paperwork, skip it. Don’t buy anything blind.
Contact the Company
Before making the purchase for a pre-owned lab diamond ring, it might be helpful to research and contact the company of the ring. This is especially true if you’re not familiar with where it’s from.
Just because you might not recognize the name, doesn’t mean it’s not a real diamond. Most lab diamonds are bought at online diamond retailers.
Check different customer reviews of the company and make sure it’s up to your liking. One of my favorite places to find honest customer reviews is on Reddit.
You should also contact the company to find out everything you need if someone were to transfer their purchase to you. This could be warranty info, cleanings and inspections, etc. You might even be able to get it switched into your name.
They may require the original buyer to call them and give permission. The retailer should tell you if it’s required. That way, you know what you truly need to make it yours and avoid scams.
Meet at a Jewelry Store
It really doesn’t matter what you’re buying from an individual locally, you should always meet in a public place. That’s for your safety. If you want to, it’s a good idea to bring a friend along.
Lab diamonds are still real diamonds that can be stolen or manipulated. Having someone there to watch your back is a good idea, regardless of how strong you are.
I recommend meeting at a jewelry store or a pawnshop. My first pick would be if you can meet at a jewelry retailer.
Many customers at Kay would bring a potential buyer off of Facebook Marketplace to have the store confirm that it was bought there and the paperwork was legitimate.
We could also confirm the report numbers physically and online if they needed. All we had to do was match the numbers on the diamond with our GemScope.
If you do that, you don’t have to worry about having your own jeweler’s loupe when you make your exchange. It also prevents any disturbances as well. Jewelry stores have security cameras, so that’s an added layer of protection.
Read also: How to Tell If Your Diamond Is Real?
You should either have a diamond tester on hand, or the jewelry store to have them. This is important to have so you know you're not getting diamond simulants like cubic zirconia or moissanite.
Are Lab Diamonds a Waste of Money?
I suppose that depends on your intended use for them. If you’re buying lab created diamonds as an investment, then yes, I suppose they would be a waste of money.
The same notion rings true with earth grown diamonds too. Diamonds and gemstones don’t make good investment purposes. Exceptions are given to gemologists and gem appraisers.
Fancy colored diamonds have high resale value in auctions, but they’re also very expensive to purchase upfront.
But if you’re buying a lab diamond engagement ring as an ethical alternative to a natural mined diamond, then no. If buying a lab grown stone gives you a peace of mind knowing exactly where it comes from, then your money isn’t wasted.
Even if you’re buying a lab made diamond ring because they’re loads cheaper than natural diamond, your money’s definitely not wasted.
As long as you’re not intending a lab created diamond ring to increase in value or to be sold off as cash, I wouldn’t say lab grown diamonds are a waste of money.
Plus, who knows? Lab diamonds are changing the diamond industry. Who’s to say they won’t have resale value down the road. Perhaps more retailers will add trade-ins or upgrade policies.
You never know.
Pros and Cons of Buying Lab Diamonds
- Better for the environment
- 100% ethical
- Lab diamonds cost 20-70% less than a natural diamond of the same grade
- Larger carat weights for cheaper
- Fancy Colored Lab Diamonds are thousands cheaper than natural colored diamonds
- Same durability and hardness as a natural diamond
- Lab diamonds have better diamond clarity and color
*Not all lab diamonds are sustainable. Most use fossil fuels. The FTC warned lab diamond retailers not to claim lab diamonds as sustainable unless they had the proof to back it up. Make sure to check your retailers’ efforts to back such claims.
Where to Buy Lab Diamonds Online
Maybe you’ve accepted the fact that diamonds don’t make great monetary investments or resale items. Perhaps the other advantages of buying a lab diamond outweigh its resale value.
If that’s you, listen up.
There are a lot of online diamond retailers. More and more online lab diamond retailers are popping up every day. It can be hard to choose who to buy from.
Here’s a few of my favorites:
They’re the premier source online for affordable diamonds. Over 400,000 different diamonds in their inventory with 360˚ viewing. They carry both colorless lab diamonds and fancy colored lab diamonds.
With so many loose diamonds to choose from, you’re more likely to find a diamond with the exact grades you desire.
One of my favorite things about James Allen is their lifetime warranty for your ring setting. It’s a free maintenance warranty that covers rhodium plating white gold and tightening diamonds.
Brilliant Earth is a unique one when it comes to ethical diamonds. In addition to their colorless lab diamonds, they also carry a beautiful selection of fancy colored lab diamonds in a variety of colors.
One of my favorite things about this company is that they solve the ethical resale value problem. Most people these days avoid natural diamonds because of diamond mining ethics or price.
The blockchain diamonds have been tracked in an unhackable system in each diamond phase. You know exactly where your diamond has been from start to finish. They’re the only company to have this.
By purchasing a blockchain diamond from Brilliant Earth, you can be confident in buying an ethical diamond and still take advantage of their upgrade policies for natural diamonds.
Now that we've gotten into the concept of a lab diamond's resale value, do you think choosing it over a natural diamond is worth it?