Why Lab-Grown Diamond Prices Keep Falling (and What It Means for You)
Lab-grown diamonds cost a fraction of what they did a few years ago. Why prices keep falling, why shop prices fall more slowly than wholesale, and what that means for your purchase.
If you priced a lab-grown diamond a few years ago and look again today, the difference is startling. In May, De Beers said wholesale lab-grown prices in the jewellery sector had fallen by around 90%. Here is why lab-grown prices keep falling, why the price in shops falls more slowly, and what it means if you are about to buy.
Why lab-grown prices fall
Natural diamonds are priced on rarity: there is only so much rough in the ground. Lab-grown diamonds are manufactured, so their price is increasingly set by the cost of making them. As more reactors and presses come online and each one grows diamonds faster and more reliably, that cost falls, and competition passes the savings down the chain.
Why shop prices fall more slowly
The diamond is only part of what you pay for in a piece of jewellery. The price also covers design, gold or silver, setting, finishing, grading reports, insurance, delivery and the jeweller's overheads. Those costs do not fall when wholesale diamond prices do, so retail prices drop more gently than the headlines suggest. Some retailers also keep prices high simply because they can.
What it means for buyers
Good news
- More size and quality for your budget
- Lab-grown is now a mainstream, accepted choice
- More competition means more transparent pricing
Be realistic
- Treat it as jewellery, not an investment
- Do not expect to resell for anything close to the price paid
- Compare prices: markups vary hugely between sellers
Should you wait for prices to fall further?
If you want a ring for a proposal or a gift for a date, waiting rarely makes sense. Prices may fall further, but the piece you buy today will look exactly the same in ten years, and you will have enjoyed it all that time. What does make sense is buying from someone who sells close to cost. As manufacturers who cut, polish and set our own CVD diamonds, we keep our margins transparent and our prices low.
More diamond for the money
Why are lab-grown diamonds so cheap now?
Because production capacity and technology have grown fast, so the cost of growing a diamond has fallen and competition has passed those savings on.
Will lab-grown diamonds become worthless?
They will always be real diamonds with real uses and beauty, but their resale value is low and likely to stay low.
Are cheap lab-grown diamonds lower quality?
Not necessarily. Price reflects the 4Cs and the seller's margin. Always check the grading report.
