Will Lab Diamonds hold their value?
Will Lab Diamonds hold their value? Lab Diamonds are already great value compared with mined Diamonds, so the future value isn’t as big a concern, as the future value of a mined diamond, that can cost up to 10 times more. As more labs start to produce diamonds, the price could conceivably drop, but it's important to remember a lab diamond, just like a mined diamond, starts off rough and needs to go through a complicated & expensive diamond polishing process. It also needs to go through the certification process. It is also worth noting the cost of the Platinum and Gold, that diamonds are set in, has risen dramatically in value over many years.
Will traditional mined diamonds drop in value now that it is possible to produce the same diamond in a lab for a lot less? Yes. At the end of the day a Diamond is a Diamond, regardless of the origin. With so many consumers now choosing diamonds from a lab, it goes without saying that the price of the same thing (apart from its from the ground) will drop. Its all about supply and demand.
When customers speak to us about a lab diamond ring, occasionally one will say “I love the idea of Lab Diamonds however, I’m worried about the future value”. We ask, are you buying a diamond to wear it, or to sell it? Our experience suggests not too many people are buying to sell. The few people we’ve seen over the years, that do sell a diamond ring second hand, generally lose a lot of money on what they originally paid. Think about it, why would a Jeweller buy back a used diamond ring at the same price you paid RRP for it, considering he/she can source a brand-new version of the same ring, at their cost price.
Some would suggest we should advise customers that it’s safer to pay 5-10 times more for a mined diamond. (A €5k certified, high spec lab diamond ring, is currently circa €25k. in the same spec mined diamond) We are talking about the same diamond, in the same colour, with the same specs and the same cert, but it came from the ground, and not from a lab! So, is it better to pay up to 10 times more? Is that a safer buy? That's up to you to decide.
The arrival of certified Lab Diamonds has well and truly thrown a spanner in the works of the diamond industry.
I personally would not pay 5-10 times more for a diamond, just to know it came from a mine, but that just me. I’d be more worried about paying €25k for a diamond ring that was available for €5k elsewhere. Do I care about the origin? Interestingly yes, I do. I'd actually prefer to purchase a fully traceable and sustainable lab diamond. I love knowing nobody was hurt in the making of that diamond, so my choice would be a lab grown diamond regardless.
In saying all that, at Lilywho we offer customers the choice. We can make the same ring with lab diamonds or mined diamonds. We love all diamonds, regardless of their origin.
Lab-grown diamonds are a compelling alternative, not only in terms of ethics and sustainability but also in redefining the economic landscape of the precious gem market. They are posing a challenge to the future pricing dynamics of diamonds in general. As consumers prioritize traceability, affordability, sustainability as well as the environment, the demand for mined diamonds has experienced a decline, possibly impacting their future market value. Who really knows?
Historically, diamonds have been considered extremely rare, however, the advent of diamonds grown in a lab, challenges this notion a little. More people are viewing diamonds as an accessible luxury, rather than an investment item.
Brilliance doesn't always come with a hefty price tag.
Diamonds are Forever and now Diamonds are for EVERYONE!
Love Lily x