If you’re looking for the perfect engagement ring, you must decide between a lab-grown or a natural diamond. As the term suggests, jewellers create these precious gemstones in a laboratory using innovative technology. With their carbon structure similar to its naturally-grown counterpart, the two gemstones are virtually indistinguishable to the naked eye.
Buyers considering lab-grown diamonds wonder whether they are a good investment. As a reputable manufacturer of Gold Coast engagement rings, we help couples understand the differences between lab-grown and natural diamonds so they can choose a gemstone that aligns with their budget, style, and long-term priorities.
Key Takeawys
- Lab-grown diamonds are real diamonds, sharing the same chemical, physical, and optical properties as natural diamonds, including comparable brilliance and durability.
- They offer excellent value for money, generally costing less than natural diamonds of similar size and quality, allowing buyers to choose larger or higher-grade stones.
- Lab-grown diamonds may have environmental advantages, as they avoid the land disruption and extraction associated with traditional diamond mining.
- Certification remains important, with recognised laboratories such as GIA and IGI grading lab-grown diamonds for cut, colour, clarity, and carat weight.
- Investment value depends on your priorities. Lab-grown diamonds provide affordability and beauty, while natural diamonds may offer greater rarity and traditional appeal; neither is automatically the better choice.
This blog explains whether lab-grown diamonds are a good investment, helping you achieve this objective, make informed decisions, and choose a precious gemstone that tells your unique love story.
A Significant Price Disparity
Lab-grown and natural diamonds differ considerably in price. The former is usually 30% to 70% cheaper than the latter, per the Jewellers Association of Australia (JAA). Since many engaged couples are prioritising their long-term budgets, they are considering lab-grown diamonds, which allow them to purchase an elegant, affordable custom piece.
Lab-grown diamonds fit many couples’ budgets because they are more abundant than their natural counterparts. Better yet, a trusted jeweller on the Gold Coast can craft bespoke bridal jewellery in just a few weeks. The JAA also expects the prices of lab-grown diamonds to remain affordable over time due to increasing production capacity. If you’re looking for the perfect precious gemstone for your engagement ring, a lab-grown diamond could exceed your expectations.
Resale Value: A Possible Drawback
The limited resale value of lab-grown diamonds can be a considerable drawback. The JAA (via ABC News) stated that these gemstones have “negligible resale value” because these synthetic gemstones can be manufactured instead of mined.
Other reasons for their limited resale value include:
- Increased supplies: Manufacturers can produce lab-grown diamonds repeatedly using chemical vapour deposition (CVD) or high-pressure, high-temperature (HPHT) technology, making it challenging for pre-owned stores to benefit from scarcity.
- Falling production costs: Efficient manufacturing and increasing competition can negatively impact the prices of lab-grown diamonds.
- Intangibles: The price of an engagement ring includes the diamond, setting, craftsmanship, GST, retailer overheads, certification, design, and profit margin. These costs are not covered if you decide to resell your ring.
It’s important to note that poor resale value doesn’t automatically mean a lab-grown diamond is a bad purchase. Their lower initial price means the buyer can spend considerably less upfront. We recommend purchasing a lab-grown diamond for its elegance and personal significance rather than considering it as a long-term investment.
Natural diamonds aren’t guaranteed investments, either. Their resale prices are often significantly lower than their original retail prices, and the market has weakened in recent years. Nevertheless, natural diamonds still benefit from an element of scarcity.
On the other hand, lab-grown versions are more comparable to a high-quality manufactured product than a long-term investment. If you sell your jewellery, much of its value often comes from the gold or platinum setting rather than the lab-grown diamond.
Why Customers Prefer Lab-Grown Diamonds
Many customers don’t purchase jewellery thinking about long-term investment returns. Instead, they purchase precious gemstones to wear them, celebrate a milestone, or give as a meaningful gift. For these reasons, you will appreciate the appeal of lab-grown diamonds if you don’t emphasise their long-term resale value. This jewellery allows you to enjoy large, elegant stones that provide the same visual appeal as natural diamonds.
If you’re considering stylish, long-lasting jewellery, lab-grown diamonds can be a reasonable choice. However, if long-term appreciation is your primary consideration, neither lab-grown nor natural diamonds should be considered a conventional investment.
What Really Contributes to a Custom Piece’s Value
For those considering long-term value, we recommend focusing on the elements that are likely to endure, such as the precious metal quality, the setting craftsmanship, and the jeweller’s reputation. A well-crafted ring made from solid gold or platinum and backed by a reputable jeweller on the Gold Coast will retain some underlying value, regardless of whether you choose a lab-grown or natural diamond.
Choosing a highly experienced custom jeweller provides a better investment than getting caught up in the lab-grown-versus-natural diamond debate. At Finelines Jewellers, we can explain the pros and cons of each option, help you choose a diamond and setting that align with your budget and lifestyle, and ensure the crafted piece endures over time. We provide our customers with expertise and guidance that makes their purchase worth every hard-earned dollar.
Frequently Asked Questions (FAQs)
Do lab-grown diamonds retain their long-term value?
The Jewellers Association of Australia (JAA) stated that lab-grown diamonds have negligible resale value, as they can be manufactured according to market demand. For this reason, they provide little scarcity to support considerable resale prices.
Are lab-grown diamonds authentic?
Lab-grown diamonds have similar chemical, physical, and optical properties as natural versions. They only differ considerably in their formation—natural diamonds form underground over millions of years while lab-grown diamonds are manufactured in controlled laboratory settings.
Why are lab-grown diamonds more affordable than natural versions?
Unlike natural diamonds, lab-grown versions aren’t constrained by mining and scarcity, and manufacturing capabilities continue to expand. According to the Jewellery Association of Australia, lab-grown diamonds can cost 30% to 70% less than similar natural diamonds.
Is a lab-grown diamond a good choice for an engagement ring?
Ultimately, the right choice depends on your preferences. If getting a larger, higher-clarity, and affordable diamond is your priority, we recommend choosing a lab-grown diamond. On the other hand, if you prefer a rare, precious gemstone with natural origins, we recommend purchasing a natural diamond despite its higher upfront cost.
What should I prioritise if I want jewellery that retains value?
We recommend prioritising the metal and craftsmanship rather than focusing exclusively on the diamond. A well-crafted setting made from solid gold or platinum by a reputable jeweller will retain some underlying value. On the other hand, the diamond may have an insignificant contribution to the custom piece’s resale value.
Conclusion
Lab-grown diamonds can be an excellent choice for couples who prioritise value, size, and visual appeal over long-term resale value. Although neither lab-grown nor natural diamonds should be considered conventional investments, the former can help you create a beautiful engagement ring that aligns with your vision and budget.
Whether you prefer a lab-grown or natural diamond, we provide expert guidance to help you choose the option that fits your budget, style preferences, and priorities. Book an appointment today to discuss your vision and bring your dream custom piece to life.
