Lab-Grown Price Trends & Depreciation

By Josh Allen, Co-Founder — YourDiamondGuys.com Josh has over 25 years of experience in the global diamond trade, sourcing from Mumbai, Tel Aviv, and Antwerp, and has supplied diamonds to Tiffany, Cartier, Harry Winston, and more.

Most people hear "better value" and assume that means stable value. It doesn't. Diamond pricing for lab-grown stones can move fast, and that changes how you should think about resale, upgrades, and long-term expectations.

Quick answer: Should you buy lab-grown?

Yes.

If your goal is size, sparkle, and staying on budget.

Maybe not.

If you expect strong resale later.

That is the whole game here.

Lab-grown usually works best when you want the best look for the money and you plan to keep the piece. Natural usually fits better when rarity and long-term value behavior matter more to you.

Same sparkle does not mean the same value path.

Why lab-grown prices change

This part is simple.

Lab-grown supply can scale in a way natural supply cannot. And when production gets better, pricing usually gets softer. GIA's research summary notes a sharp rise in colorless-grade CVD submissions in 2020 and ties that shift to refinements in growth and treatment procedures.

Then price pressure stacks.

More growers. More similar-looking stones. More stores selling them.

That is how you end up with a market where pricing falls hard. Reuters reported that wholesale prices for one-carat and two-carat lab-grown diamonds have fallen by as much as 96% since 2018.

Good for today's buyer.

Not always great for tomorrow's seller.

What depreciation means in real life

Depreciation is not complicated.

It is the gap between what you paid at retail and what someone will pay you later.

With lab-grown, that gap can feel bigger.

Why?

Because a second buyer can often shop brand-new stones with wide selection and aggressive pricing. If new inventory keeps getting cheaper, your pre-owned stone usually has to sit lower to look worth buying.

That does not make lab-grown a bad buy.

It just tells you what kind of buy it is.

Jewelry first. Resale second.

Replacement value is not resale value

This is where people get hurt.

Replacement value and resale value are not the same thing.

Replacement value is what it may cost to replace a similar piece through normal retail channels.

Resale value is what a real buyer will hand you in a real market.

Those numbers can live very far apart.

So if flexibility matters to you, do not assume resale is the safety net. In many cases, your better path is a strong upgrade policy from the seller.

How to buy lab-grown without fooling yourself

1) Decide what job you want the diamond to do

Be honest.

Do you want a bigger look for the budget?

Do you want something beautiful you will wear for years?

Do you want a stone you may trade up later?

Those are three different goals.

If your real goal is future resale, compare natural options too.

2) Focus on what your eye sees

Cut still matters.

A lot.

Paper does not tell the full story.

If the stone looks bright, lively, and balanced in real light, that matters more than chasing tiny upgrades you will never see.

3) Treat upgrade policies as the real value path

The market is still shifting. McKinsey's diamond industry analysis describes the market as being at an inflection point, with competitive pressure from lab-grown diamonds reshaping how companies respond.

So get the upgrade terms in writing.

How much credit do you get?

Is there a minimum spend?

Do you have to buy the next stone from the same seller?

That matters more than a feel-good promise.

4) Make sure the product is described clearly

No guessing. Ever.

If a diamond is lab-grown, that should be stated clearly and up front. FTC guidance says sellers should disclose that a laboratory-created diamond is not mined and describe it clearly as laboratory-grown or laboratory-created.

If the language is soft, vague, or buried, walk.

What price trends suggest right now

Lab-grown can still be a very smart buy.

You just have to buy it for the right reason.

If your goal is visual impact for less money, the pricing can work in your favor. BriteCo's 2025 report says a 1-carat lab-grown diamond averaged $1,000 or less at retail, while a natural 1-carat diamond averaged around $4,200.

That spread is real.

So is the tradeoff.

Lower entry price often comes with weaker resale behavior.

That is not drama.

That is the math.

A simple expectations checklist

Before you buy, ask yourself this:

1. Am I buying this to wear and love?
2. Or am I secretly hoping it holds value like a rare asset?
3. If prices drop next year, will I still be happy with the piece?
4. Do I have an upgrade option in writing?
5. Are the return terms clear?

If you can answer those cleanly, you are thinking about this the right way.

Free Diamond Consultation

If you want a second set of eyes before you spend real money, book a Free Diamond Consultation.

We'll help you compare options, review upgrade terms, and figure out whether lab-grown actually fits your goal.

No pressure.

Just clarity.

Questions? Reach out directly for a free consultation, or drop them in the Diamond Buyers Academy community — Rob and I answer personally.