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What Are the Downsides of Lab-Grown Diamonds?

Quick answer

Resale value is the main one. Lab diamond prices have dropped as production capacity has grown, so a stone bought today is likely to be cheaper to replace in a few years and will not hold its retail value at resale. Some buyers also prefer the romance of a mined stone formed over millions of years. If you are buying to wear rather than as an investment, the practical downsides are minor.

Lower resale value

Lab-grown diamonds usually resell for much less than their purchase price because a secondhand stone competes with new production whose prices can keep falling. That is the main financial downside, but it is a different question from whether the ring has value to the person wearing it.

Read the full lab-grown diamond resale and replacement-value guide

Why prices keep falling

Lab-grown diamond supply can expand as more CVD and HPHT production comes online. That makes scarcity and future pricing less predictable than it is for a finite mined supply. Buy the ring for its appearance, durability and meaning rather than on the assumption that the loose stone will appreciate.

Next step

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See current lab-grown diamond engagement rings across shapes, settings and prices, all IGI-certified.

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