How lab-grown diamonds differ in value perception
Industry experts say the key difference is not in appearance or quality, but in how value behaves after purchase.
Direct-to-consumer fine jewellery brand Verlas notes that lab-grown diamonds offer the same physical and visual properties as natural diamonds, but at a significantly lower cost. This price gap allows buyers to opt for larger stones or more design-focused jewellery.
However, the company emphasises that this affordability does not translate into investment value. Instead, lab-grown diamonds are meant for “wear and enjoyment,” where the value comes from usage rather than resale.
Why natural diamonds are losing their “investment” narrative
Experts say that natural diamonds, once seen as long-term value holdings, face significant drawbacks when resale is considered.
Prapanjj S K Kota, Founder & CEO of Réia Diamonds, highlights that natural diamonds often lose a portion of their value immediately at resale, with retail buyback discounts reducing returns further.
According to the company, even high-quality natural diamonds can see price fluctuations over time, weakening the idea of consistent appreciation. In contrast, lab-grown diamonds have a much lower entry cost, which limits absolute financial loss even if resale value is minimal.
How buyers are rethinking “value”
The shift is also about changing financial behaviour. Instead of treating diamonds as assets, buyers are now comparing them with lifestyle spending categories.
Experts say this leads to a clearer trade-off:
- Natural diamonds = higher cost, uncertain resale
- Lab-grown diamonds = lower cost, higher design flexibility, minimal resale expectation
In this framing, lab-grown diamonds are not meant to preserve wealth but to maximise utility and aesthetics.
Why consumption is driving demand
Another key reason for rising demand is changing consumer mindset, especially among younger buyers.
Lab-grown diamonds are popular for:
- Engagement rings
- Everyday jewellery
- Design-led purchases rather than investment buying
Industry voices say millennials and Gen Z buyers are more focused on expression, wearability, and affordability rather than long-term financial returns.
