Are lab-grown diamonds a good store of value?

Diamonds Gallery believes that lab-grown diamonds offer better value retention than natural diamonds. Let’s analyze this together.

“A diamond is forever” — I’m sure everyone has heard this slogan. For a long time, diamonds have been synonymous with love and marriage. However, to some extent, the price of natural diamonds is monopolized and controlled by cartels, turning the purchase of a diamond ring into a source of stress for many couples preparing to enter the halls of marriage. Every woman hopes to own a larger diamond, but in reality, most people end up with one smaller than they had hoped for.

How can you exchange the same amount of money for greater happiness?

Unlike natural diamonds, lab-grown diamonds are not affected by price monopolies, making them very affordable, with prices only 30-40% of those of natural diamonds.

Take marriage as an example: within a limited wedding budget of 120,000, two couples can enjoy the same happiness and joy without needing a huge capital investment. See the example below:

Wedding budget 120,000

Purchase 1.5-carat natural diamond 120,000

Wedding budget 120,000

Purchase 1.5-carat lab-grown diamond 35,000
An unforgettable honeymoon trip 50,000
Savings or investment 35,000

3 years later

1.5-carat natural diamond
Jewelry store buyback 60,000

1.5-carat lab-grown diamond
Priceless memories
35,000 plus investment returns

Looking at the above, we can draw the following conclusion

If you choose a natural diamond and attempt to have a jeweler buy it back after 3 years, given the common 50% discount for diamond buybacks at Hong Kong jewelry stores, you will find that the buyback value is only about half.

Compared to those who chose natural diamonds, couples who choose lab-grown diamonds gain priceless proposal/honeymoon memories and returns on other investments 3 years later.

The calculation is as follows

120,000 minus 60,000 = 60,000. The amount lost far exceeds the initial purchase price of a lab-grown diamond. Therefore, we believe that the value-retention function of lab-grown diamonds clearly exceeds that of natural diamonds, and it can also serve to limit losses, as the loss from selling back a natural diamond is greater than the future sale price of a lab-grown diamond.

We also advise clients to conduct further observation and research; if you find the above assumption correct, you should choose a lab-grown diamond. If the loss from selling a natural diamond exceeds the purchase price of a lab-grown diamond, and your goal is value retention, you should choose a lab-grown diamond.

Written by My Store Admin

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