Do Natural Diamonds Hold Value: What You Need to Know

If you’re shopping for a diamond — natural or lab-grown — the question “Will it hold its value?” has definitely crossed your mind.

Diamond pricing has changed a lot recently. Natural diamonds have dropped 26–30% in the last 3 years, and many shoppers now ask about the natural diamond resale value compared with the resale value of lab grown diamonds vs natural. So let’s break down what actually affects value, whether diamonds appreciate in value long-term, and how lab grown diamonds compare in today’s market.

This guide is here to help you understand the facts — without the marketing spin.

If you're curious what drives diamond pricing in the first place, check out our full guide: Why Are Diamonds Expensive?

The 4Cs: How Diamond Value is Determined

Before resale value can even be discussed, you need a diamond that’s desirable in the market. That starts with the 4Cs.

Carat (Weight)

Bigger diamonds are rarer — and rarity drives value.
This is why a 2.00ct diamond can cost significantly more than double a 1.00ct.

Curious how pricing compares? Check out this guide on the 1 Carat Lab Grown Diamond vs Natural Price for real examples.

Clarity

Fewer internal inclusions = higher resale value.
Most shoppers focus on clarity because they want a diamond that looks clean to the naked eye.

Color

Colorless stones (D–F) are more valuable and always more sought-after in resale.

Cut

The biggest driver of sparkle — which is what people notice first.
A well-cut diamond holds value because it actually looks expensive.

Diamond Resale Value

What Determines Diamond Value?

• Rarity
• Beauty (sparkle + size + cleanliness)
• Long-term demand
• Certification (GIA for natural, IGI/GIA for lab)

And don’t forget: all diamonds — natural and lab — depreciate the moment they leave the store, like a luxury car.

Factors Affecting Diamond Resale Value

• Current economic conditions
• Fashion trends (shapes go in and out of style)
• Retail markups
• Brand reputation

So do natural diamonds appreciate in value?
Over a 20+ year timeline — usually yes. Over 3 years — not always.

Right now, some shoppers are asking “are natural diamonds losing their value?” because natural diamonds resale value has recently declined. Still, over decades, many natural diamonds do increase in value as rarity becomes more significant.

Lab Diamonds Are Real

What is a Lab Created Diamond?

A real diamond with the same chemical, physical, and optical properties as a natural diamond — just grown above ground in a lab instead of deep in the earth.

After shoppers learn this, they often get excited about lab options.

Lab Made Diamonds – Two Popular Methods

Chemical Vapor Deposition Diamonds

A diamond forms layer by layer from carbon-rich gas — like building a diamond from tiny sparkly bricks.

High Pressure High Temperature Diamonds

Carbon is squeezed and heated under extreme pressure, similar to nature — a giant squeeze that makes treasure.

What is the Difference Between CVD and HPHT Diamonds?

Visually and structurally? No difference.
Both are 100% real diamonds — just different manufacturing processes.

Making the Choice: Buying Guide and Ethics

Lab-Grown Diamonds vs. Natural Diamonds - Buying Guide

Natural Diamond

• Formed over billions of years
• Finite supply — natural diamond resale value tends to hold better long-term
• Good choice for buyers who think in decades
• Certification: GIA recommended

Lab-Grown Diamond

• 30–70% more affordable — bigger look for the budget
• More ethical sourcing, especially for fancy colors
• But the resale value of lab grown diamonds vs natural is less stable today
• Certification: IGI or GIA recommended

Are Lab Grown Diamonds Good?

Pros of Buying a Lab Grown Diamond

• Better price per carat (bigger stone for the same budget)
• Ethically sourced without mining concerns
• Great for colored diamonds — especially pink! Read our Pink Lab Diamond Engagement Rings Guide for inspiration
• Chemically identical to natural diamonds

Cons of Buying a Lab Grown Diamond

• Higher risk of price drops over time
• Lower resale value today
• Still newer in the market — demand could shift over time

Should I Get a Lab Grown Diamond Engagement Ring?

Great question. Here’s our philosophy:

Buy what suits you, not what suits others.

If you love the idea of a larger diamond that fits a realistic budget → lab makes a lot of sense.
If you want rarity and are thinking about whether natural diamonds increase in value over many years → natural could be a better fit.

More than 60% of shoppers choose lab diamonds today once they understand labs are real diamonds.

Frequently Asked Questions

FAQs About Lab-Grown Diamonds

Q: Do lab-grown diamonds last as long as natural diamonds?

Yes. Both are pure carbon crystals — same durability, same sparkle forever.

Q: Are lab-grown diamonds considered “real” diamonds?

Absolutely. The only difference is origin — not material.

Q: Will the price of lab-grown diamonds continue to fall?

No one knows for sure — but we believe pricing will plateau as the market matures. Natural diamonds resale value has shifted too, so changes happen on both sides.

Q: How do I know I’m buying a quality lab-grown diamond?

Look for:
• IGI or GIA certification
• Strong 4Cs scores
• A trustworthy jeweler who explains CVD vs HPHT honestly

Final Thoughts

So, do natural diamonds hold value?

Over the long-term — usually yes.
Over the short term — both natural and lab diamonds can drop.

The real value of a diamond?
• The moment you propose
• The meaning behind the commitment
• The way it sparkles every day
• The love story it represents

Choose the diamond that feels right — financially and emotionally.