The Resale Value Myth: Truth About Diamond Investments

"But what about resale value?" This is the #1 objection to lab-grown diamonds.

Here's the uncomfortable truth: Diamonds are terrible investments. Natural or lab-grown.

The Natural Diamond Resale Reality

Buy a $10,000 natural diamond engagement ring from a retailer. Try to sell it the next day.

Offers you'll get:

• Pawn shop: $2,000-3,000 (20-30% of retail)
• Online marketplace: $4,000-5,000 (40-50% of retail)
• Consignment: $6,000-7,000 (60-70% of retail, minus 20% commission)

You just lost 50-70% of your money. And that's for a natural diamond.

Why Diamonds Don't Hold Retail Value

The retail price includes:

• Retailer markup: 100-300%
• Marketing costs
• Showroom overhead
• Sales commissions

When you resell, you're competing with wholesalers who don't have these costs.

Lab-Grown Resale: The Same Story

Lab-grown diamonds have even lower resale value (10-20% of retail) because:

• Wholesale prices are dropping
• Supply is abundant
• No artificial scarcity

But here's the key: You're not buying an engagement ring as an investment.

The Right Way to Think About It

Compare diamonds to other luxury purchases:

• New car: Loses 20% value driving off the lot
• Designer handbag: Resells for 30-50% of retail
• Wedding dress: Resells for 10-20% of retail

Nobody buys a wedding dress thinking "I'll resell this later." Same should apply to engagement rings.