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What are the downsides to moissanite?

Quick answer

Three commonly cited downsides. Moissanite throws more rainbow flash than diamond in direct sun, which some buyers love and others find too much. Resale value is low. And the look can differ subtly from a diamond under certain lights, although most people cannot tell on their own. For someone buying to wear rather than to sell, those trade-offs sit against a much lower price for the same visible size.

When the rainbow flash gives it away

Moissanite's dispersion is 0.104, against diamond's 0.044. In indoor lighting that gap is small enough that even gemologists need a closer look. In direct sunlight, the rainbow flash is obvious. The effect scales with size: a 0.5ct round in a settled setting reads diamond-like under most conditions; a 2ct oval throws clear rainbow flares the moment the wearer steps outside. Some people love the show, others find it draws unwanted attention or simply does not match a quieter style. Try a similar size and shape outside in the sun before committing to a large brilliant-cut oval or pear if a diamond look matters to you.

Resale and the wider price gap

Moissanite holds almost no resale value. Pawn shops typically pay scrap for the metal and nothing for the stone, and peer-to-peer resale on the secondary market tends to return 10 to 30% of the original price. The reason is supply: a new 1ct moissanite retails for around AU$500 to AU$900 in 2026, so secondhand buyers can choose between your stone and fresh inventory at similar prices. The trade-off is direct. A 1ct moissanite sits well below a 1ct lab-grown diamond at AU$1,500 to AU$2,800 and a 1ct natural diamond at AU$7,000 plus, in exchange for weak resale.

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