Why are lab diamonds worthless?

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Jose Connelly asked a question: Why are lab diamonds worthless?
Asked By: Jose Connelly
Date created: Sat, May 1, 2021 3:53 PM
Date updated: Sun, Sep 25, 2022 7:49 AM

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Top best answers to the question «Why are lab diamonds worthless»

“There's nothing rare or distinct about a lab-grown diamond,” says Benjamin Khordipour GG, Chief Gemologist at Estate Diamond Jewelry. “There is no market cap on how many can be made available, and for that reason, they are almost completely worthless. No one in the jewelry trade wants to buy them.”

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1. Lab grown diamonds are worthless. It’s no secret that the price per carat of lab created diamonds has been dropping, and fast. But like with any technological innovation—the more competitors enter the market and the more we learn about making these stunning stones—it’s only natural to see them get more affordable.

This is the biggest reason that lab-diamonds is a failing industry. “There’s nothing rare or distinct about a lab-grown diamond,” says Benjamin Khordipour GG, Chief Gemologist at Estate Diamond Jewelry. “There is no market cap on how many can be made available, and for that reason, they are almost completely worthless.

Now back to the reasons why diamonds are actually worthless. 1. 50% loss of value While you will save your hard-earned earnings to save for that coveted piece of stone, often thinking that you are making an investment thanks to this precious rock, the truth is that the diamond purchased will lose at least 50% of its value the moment it leaves the jewelers.

In fact, the resale value of lab-grown diamonds is so low and the market is so heavily saturated that this price can actually be considered high. In the simplest terms, a lab grown diamond isn’t worth anything except what a buyer is willing to pay for it, unlike natural diamonds which retain a real market value.

All in all, we can’t say that diamonds are worthless, but they are overpriced. They still have many uses in many industries – and we can’t overlook the fact that they’re great for jewelry like it’s nothing, either. But there’s one more thing that shouldn’t be overlooked, and that’s lab-grown diamonds.

Lab grown diamonds are most definitely valuable. The scientists, laboratories, engineers, equipment, time, effort and expertise are all factors that go into producing some of the world's highest quality diamonds. Regardless of origin, either man made or mined, all diamonds are priced using an internationally accepted pricing system.

There are several reasons: Because these lab diamonds are REAL diamonds. Won’t fall to $25 per carat if mined diamonds are $5,000 per carat. Because they’re expensive to cut. Since diamonds are so incredibly hard, it takes special equipment, and well-trained... The manufacturing process is highly ...

This single fact makes lab-diamonds effectively worthless. Recently there have been a few companies that claim to “buy lab-diamonds from the public”, but one look at the terms and conditions makes it clear that they are not serious buyers. In all frankness, experts haven’t settled on the long-term value of these gemstones.

Do Lab Created Diamonds Have Any Resale Value? The short answer is no. In the retail market, a lab diamond typically costs 50% less than a natural diamond with similar specifications. However, when it comes to resale value, lab diamonds have very little to zero resale value compared to a natural diamond.

Synthetic diamond prices are generally lower than natural diamonds, and the price of lab-created diamonds continues to drop (as much as 30% in a year). This is due to lab-grown diamonds not having any resale value and that the demand for lab-grown diamonds continues to decrease.

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