3 MISCONCEPTIONS OF LAB-GROWN DIAMOND’S RESALE VALUE

Resale Value Is Priority: One of the biggest misconceptions of lab-grown diamonds is that the resale value is a main priority of the purchaser. The truth of the matter is that most buyers of lab-grown gemstones simply do not care of the stone’s resale value as they do not intend to ever sell it. When doing an “apples to apples” comparison between lab-grown diamonds and naturally mined diamonds of the same 4C’s quality evaluation, the lab-grown equivalent is approximately 60–80% less. Simply put, the cost-savings alone will normally justify the financial benefit of going with a lab-grown option without concerning its resale value.

Lab-Grown Diamonds Do Not Have Resale Value: Another misconception is that lab-grown diamond’s do not have a resale value. This is just untrue. Everything has a resale value as long as there is a market for it. Although the “market price” of any product or service may fluctuate up or down in any given time, there is typically a resale value of most lab-grown diamonds in the secondary market.

Natural Diamonds Have Resale Value: Like lab-grown diamonds, naturally mined diamonds also have resale values in the secondary market. However, the misconception is that the purchaser can easily get 100% of the original purchase price back. This is not accurate. Natural diamonds will normally lose its retail value by 30-60% from the moment the buyer leaves the store. This is why it is very common for pawn shops to buy used and worn diamonds and jewelry at fraction of the original price.