Do Lab-grown Diamonds Retain Value?

This is the million-dollar question. Many consumers may wrongly think lab-created diamonds are a fad or trend and don't realize they have been around since 1954. Lab-grown diamonds have been used for high-tech microscopes, mining equipment, fighter jets, spacecrafts, and the list go on.

At this point in time, does a lab-grown diamond retain its value? Although this is somewhat of a grey area, they do. But if you were to ask a jeweler that does not carry them, they will tell you they do not. Instead of telling you they absolutely will, I will give you a few analogies and some legitimate points to think about.

Do you remember this little called Blockbuster? Depending on your age, you might. It was the place to go on a Friday night to rent your DVDs. Anybody and everybody at that time used them; they were huge! Move to the year 1997, and a small disruptor called "Netflix" came about. They did something little different, and that was the post office to deliver the DVDs to right to your house. How convenient is that? Now Netflix knew they did not have the marketplace strength that Blockbuster had at that time. Fast forward to the year 2000, Netflix approached the Blockbuster to see if they could purchase for $50 million. Blockbuster literally laughed at Netflix saying that DVD'd mailed or streamed would never catch on or work. Fast forward again to the year 2010. Can you guess what happened? Try going to Blockbuster to get the latest and greatest series to watch. Well, they went bankrupt! Do you think Netflix might be worth a little more than $50 million?. Try $148.16 billion with a B!

I digressed, I could go on and on about industry disrupters that make complete sense. Apple, Amazon, Uber, Lyft, Blue Bonnet, Trivago, Airbnb, and the list goes on and gets bigger daily. 

James Morris

Certified Lab-grown Diamonds Expert

Which is the biggest generation to date? Baby-boomers...nope, Millennials!. They are also the biggest purchaser and supporters of lab-grown diamonds. Be it the abundance of money you save, which in turn can fo right into your kid's college fund or the simple fact of having absolutely no-conflict involved. 

Now let's say your kids are in the market for an engagement ring down the line. Being since Millennials will be the future owners, presidents, decision-makers, etc. of any entity that buys and sells jewelry and diamonds…I think you can conclude as to which diamond will retain more value. Lab diamonds are a 300-million dollar industry and is slated to triple by 2021. Again, not saying mined diamonds are bad,  but merely pointing out that you now have a more cost-effective option. After all, diamonds and their pricing are a reflection of supply and demand.