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Diamonds

Lab Grown vs. Natural Diamonds: Resale Value Breakdown 

Oct 14, 2022

Why Lab Grown Diamonds Are Not A Smart Investment

In recent years, there’s been a trend toward synthetic diamonds — otherwise known as lab grown diamonds or lab created diamonds. With concerns around climate change and cost of natural resources, it’s certainly understandable. However when it comes to lab grown versus natural diamonds, we’ll always choose natural over synthetic.

Here are two very big reasons why lab grown diamonds are bad:

Long-Term Carbon Footprint Of Lab Grown Diamonds

Lab grown diamonds have been gaining popularity with consumers who want a blingy ring without the ethical concerns. But are lab grown diamonds really better for the environment? 

The short answer is yes — but only for the short term. When it comes to the environmental impact of synthetic diamonds, lab grown diamonds use less energy and water to create. While the mining industry wasn’t very sustainable in the past, that has all shifted. Today, the diamond mining industry has made significant gains in environmental protection, sourcing technology, and community reinvestment. (Wondering about the origin of diamonds? Check this blog out!). The newer development of reputable real diamond mining practices contributes to the downsides to lab grown diamonds and why they are an unsustainable option in the long term. 

Natural diamonds are better for long-term sustainability because of their durability and resale value, which we will talk about in the next section. They can be passed on through generations or sold back to a reputable jeweler, like Samuelson’s, should you want or need to sell later. Lab-grown diamonds can only be resold once– and then they’re gone forever, which is why lab grown diamonds have no resale value. So when it comes to long-term sustainability, natural diamonds have the upper hand.

Speaking of Lab Diamond Resale Value…

If you were given the option of buying something used at a premium price or just making a new one for cheaper, which would you choose? Most people will go for the cheaper option — which is the case for most lab grown diamonds.

Conversely, natural diamonds have a higher resale value for a number of reasons. First, it takes a lot of energy, time, and investment to mine a natural diamond from the earth’s core. Not to mention, scientists theorize that it can take billions of years for a single diamond to form — which means that we only have a finite number of natural diamonds floating around. As with anything that has a perceived sense of rarity, the price will always be higher. And because lab grown diamonds will always have a higher, infinite supply compared to natural diamonds, there’s no guarantee that lab grown diamonds will hold their value in the future.

As a result, natural diamonds are more desirable when it comes to resale value. Whether a standalone, within a piece of jewelry, or as an heirloom passed down and out through an estate sale for repurposing, there are a number of ways natural diamonds can be resold. This also contributes to the sustainability factor and helps reduce the natural diamond’s carbon footprint over time!

How can you tell the difference between lab diamonds and natural diamonds?

To the human eye, lab diamonds and natural diamonds look the same but there is one key difference. As diamond experts, we use a machine to test a diamond’s UV light. During this test, lab grown diamonds appear red and natural diamonds look blue – this is truly the only way to verify the difference. While lab grown diamonds offer a nearly identical look and feel, their resale value is not comparable to natural diamonds.

Have more questions about lab vs. natural diamonds? 

We’re always happy to talk more about the  positive and negative impacts of synthetic diamonds vs natural diamonds as well as which is the better investment. With that being said, there’s a reason why we have been buying natural diamonds for more than 100 years! And there’s just something to be said for the magic of chemistry — all the pressure, materials, and conditions that had to come together to form one single diamond. It’s not unlike the setting for your own love story, which is kind of magical in its own way!

Come on in and discover our collection of natural diamonds, whether it’s a loose stone or arranged into a beautiful array of engagement rings, earrings, bracelets, necklaces, and more. Contact us online to make an appointment today!

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