It's one of the most common questions we hear, and it deserves a straight answer rather than a sales pitch. Lab-grown diamonds are wonderful to wear and dramatically more affordable than mined diamonds. But they are not a store of value, and anyone buying one as an investment should understand why before they do.
Do lab-grown diamonds hold their value?
No. Lab-grown diamonds have very little resale value, and their retail prices have fallen sharply as production has scaled up. Diamond-price tracker Tenoris reported that the average one-carat lab-grown diamond fell from about $3,410 at its 2022 peak to about $892 by early 2025. Buy one because you love wearing it, not as an investment.
Why don't lab-grown diamonds hold value?
A mined diamond's price is supported by limited supply. A lab-grown diamond's price is driven mostly by what it costs to produce, and that cost keeps falling:
- Supply isn't limited. Lab-grown diamonds can be produced in whatever quantity the market wants, so there's no scarcity premium to protect their price.
- Production keeps getting cheaper. Larger growing reactors, faster growth cycles and more producers, particularly in India and China, have steadily lowered the cost of making each stone.
- Retail prices follow production costs. As it gets cheaper to grow a stone, the price of a new one drops. That makes it hard for a used stone to command anything close to what was paid for it.
- The resale market is thin. Few buyers, pawnbrokers or dealers buy back lab-grown diamonds, and those that do typically offer a small fraction of the original price.
Do natural diamonds hold their value better?
Somewhat, but less than most people assume. Mined diamonds have historically held value better than lab-grown diamonds because supply is limited, but they are not a reliable investment either. A retail diamond includes design, setting, labor and retailer margin, and resale offers usually come in well below the original price. Natural diamond prices have also fallen in recent years: Tenoris and other trackers recorded declines since 2022, though far smaller than the drop in lab-grown prices.
Lab-grown vs natural diamonds: value at a glance
| Lab-grown diamond | Natural (mined) diamond | |
|---|---|---|
| Price to buy | Far lower for the same size and grade | Much higher |
| What drives price | Production cost | Limited supply and demand |
| Recent price trend | Steep decline since 2022 | Smaller decline since 2022 |
| Resale value | Very low; few buyers | Below purchase price, but an established resale market |
| Looks, hardness and 4Cs grading | Same as mined | Same as lab-grown |
| Best reason to choose | More size and quality for your budget | Rarity and origin matter to you |
So what is a lab-grown diamond worth to you?
The value of a lab-grown diamond is captured the day you buy it. For the same budget you can choose a noticeably larger stone, a better cut, a higher color or clarity grade, or a more elaborate setting than you could with a mined diamond. It is the same material as a mined diamond, graded on the same 4Cs scale by the same independent labs, and it will look and wear the same for a lifetime. What it won't do is earn money back if you sell it.
Is a lab-grown diamond a good choice for an engagement ring?
For most couples, yes, as long as the expectation is right. An engagement ring is something you wear every day for decades, not something you plan to sell. If you'd rather put the money you save toward the wedding, a home or the rest of your life, a lab-grown diamond does that well. If owning something geologically rare matters to you, or you see the stone as something to pass down partly for its monetary value, a natural diamond may suit you better.
How to make the smartest lab-grown purchase
- Buy for the look, not the resale. Choose the size, shape and setting you'll enjoy wearing, within a budget you're comfortable spending outright.
- Insist on independent certification. An IGI or GIA report confirms exactly what you're getting. See IGI vs GIA certification.
- Put your budget into cut. Cut has the biggest effect on sparkle. Our 4Cs guide explains how to prioritize.
- Insure it at replacement value. What matters for a lab-grown diamond is the cost of replacing it, not what you could resell it for.
Frequently asked questions
Can you resell a lab-grown diamond?
You can try, but expect to receive only a small fraction of what you paid, if you find a buyer at all. Many jewelers, pawnbrokers and dealers do not buy lab-grown diamonds back.
Will lab-grown diamond prices keep falling?
No one can say for certain. Prices have fallen steeply since 2022 as production expanded, and some industry reports suggest the decline has slowed. Because supply isn't limited, there's no reason to expect prices to rise.
Are lab-grown diamonds a waste of money?
Not if you buy one to wear. You get a diamond that looks the same as a mined diamond for far less money. They're a poor choice only if you're expecting to get your money back later.
Do lab-grown diamonds lose their sparkle over time?
No. A lab-grown diamond is as hard and durable as a mined diamond and keeps its brilliance permanently. If it looks dull, it needs cleaning. See how to clean a lab-grown diamond ring.
Is moissanite a better value than a lab-grown diamond?
Moissanite costs even less, but it's a different gemstone with a different look. Neither holds resale value well. Compare them in moissanite vs lab-grown diamond.
Explore lab-grown diamonds
Learn more in our lab-grown vs natural diamonds guide, or browse Lab Diamond Rings and our certified loose lab-grown diamonds.
Price figures are from diamond-price tracker Tenoris, as reported by Fortune in January 2025. Average prices vary by size, grade and seller.
