Do Lab-Grown Diamonds Hold Value? A Straight Answer for South Africans

Lab-grown diamonds are real diamonds at significantly lower prices — but one honest question comes up repeatedly: do they hold their value?

The straight answer is: not as well as natural diamonds, currently.

Here is why, and what it means for your buying decision.

Short Answer

Lab-grown diamonds are real, beautiful, and certified — but they currently do not hold resale value as well as natural diamonds. If long-term value retention is important to you, natural diamonds are the stronger choice.

What Are Lab-Grown Diamonds?

Lab-grown diamonds are genuine diamonds created in controlled laboratory conditions using HPHT or CVD technology. They have the same physical, chemical, and optical properties as natural diamonds. They are certified using the same 4Cs grading system.

Why Lab-Grown Diamonds Cost Less

Natural diamonds are rare. They took billions of years to form and are limited by mining supply. Lab-grown diamonds can be produced more efficiently, which brings prices down significantly.

The price difference can be 50-80% compared to equivalent natural stones.

The Resale Question

This is where the honest difference lies.

Natural diamonds

Natural diamonds have a longer track record of holding — and sometimes increasing — in value over time, particularly for larger, high-quality stones. The rarity of natural diamonds supports their resale value.

Lab-grown diamonds

Lab-grown diamond prices have been falling as production technology improves and scales. A lab-grown diamond purchased today is likely to be worth less if resold in a few years. This is not a criticism of the stone — it is simply how the market currently works.

Does That Mean Don't Buy Lab-Grown?

Not at all.

If your goal is:

• maximum beauty for your budget
• a larger or better-quality stone
• a real certified diamond without the premium
• an ethical and environmentally-conscious choice

— then lab-grown is often an excellent choice.

The resale question only matters if your primary goal is investment or long-term value retention.

When Lab-Grown Makes Sense

Lab-grown is often the smarter choice when:

• you want the best visual result for your budget
• the diamond is for personal use, not investment
• you prioritise beauty and size over rarity
• you are buying for an engagement ring and plan to keep it
• ethics and environmental footprint matter to you

When Natural Diamonds Make More Sense

Natural is often the smarter choice when:

• long-term value matters to you
• you are buying an investment-grade stone
• rarity and natural origin are personally important
• you want the most traditional option

What Affects Lab-Grown Diamond Value Over Time?

A few factors influence how much lab-grown diamonds hold value:

Production costs

As lab technology improves and scales, production costs fall. That tends to push retail prices down further.

Market saturation

More lab-grown diamonds enter the market every year. Greater supply tends to reduce prices over time.

Consumer perception

Perception of lab-grown diamonds is still evolving. Some buyers strongly prefer natural; others embrace lab-grown.

Certification and quality

Higher-quality lab-grown stones with strong certification tend to hold value better than lower-quality ones.

What About Natural Diamonds?

Natural diamonds are also not a guaranteed investment in the traditional sense. All diamond purchases should primarily be driven by personal enjoyment and need — not purely as an investment vehicle.

However, larger and higher-quality natural diamonds do have a stronger historical track record for holding and appreciating in value compared to lab-grown.

The Real Question to Ask Yourself

Before choosing, ask:

Am I buying this diamond primarily for its beauty and personal meaning, or as an investment?

If it is the former, lab-grown often gives you more beauty for your budget. If it is the latter, natural is currently the stronger choice.

Our View at Diagem

At Diagem, we are honest about this question. Both natural and lab-grown diamonds are real, certified, and beautiful. Both are valid choices. The right decision depends on your priorities — and we will not push one over the other if it is not the right fit for you.

Frequently Asked Questions

Will lab-grown diamonds be worth anything in 10 years?

Likely less than today, based on current production trends. The exact amount depends on the stone quality and market conditions at the time.

Is a lab-grown diamond a bad buy?

No. It is a real diamond at a significantly lower price. If you are buying for beauty and personal use, it can be excellent value.

Are natural diamonds a good investment?

Natural diamonds can hold value, but they should not be bought purely as an investment. High-quality larger stones tend to perform better than smaller commercial grades.

Do lab-grown diamonds have certificates?

Yes. Lab-grown diamonds from reputable dealers are certified by GIA or IGI, just like natural diamonds.

Can you upgrade a lab-grown diamond later?

Some dealers offer upgrade programmes. Ask about upgrade policies before buying.

Final Answer

Lab-grown diamonds do not hold value as well as natural diamonds currently. But that does not make them a bad choice — it makes them a different choice. If you want maximum beauty for your budget and are buying for personal enjoyment, lab-grown is often the smarter buy. If long-term value retention is your priority, natural is currently the stronger path.