The sale of diamonds is always a tall order, but it becomes even trickier to sell diamonds made in a laboratory. In 2024, entering the resale market for lab-grown diamonds is a different ballgame even if you find yourself wanting to sell your old lab-grown diamond because you are looking to make an upgrade, or simply need the extra cash. This guide will take you through some of the most important aspects of where to Sell Lab Grown Diamonds so that you can end up getting the best deal possible.
What Makes Lab Diamond Sales Hard?
When coming to selling lab-grown diamonds, the very first consideration that you have is that they are fast losing money. Lab-grown diamonds, being a technological product, have only dropped in price with technological improvements. While ‘real’ natural diamonds have a value because of the raw material is scarce, lab-grown diamonds aren’t rare in the same way.
Although you need not worry, it can happen only if you follow some rules to sell lab-grown diamonds. If you’re curious about why lab grown diamonds are so affordable, you might find this post on whether lab-grown diamonds are cheaper insightful.
Understanding the 4Cs and Their Impact on Value
You won’t be able to set a price for your diamond piece without understanding what makes it valuable in the first place. Your diamond’s 4Cs will ultimately determine its price. Let’s break this acronym down really quick:
- Carat – refers to the weight of the diamond. The bigger your stone is, the more it’s worth.
- Cut – determines how well the diamond reflects light and influences appearance. Better cuts typically mean higher prices.
- Clarity – measures the number of imperfections in your diamond stone. The fewer the defects, the more your stone is worth.
- Color – diamonds come in different colors, and stones that are less ‘colorful’ are typically more valuable.
To set a starting price for your diamond, you’ll need a grading report of your stone. Go to any of the accredited gemological laboratories – be it GIA or IGI – and request a detailed report on your diamond’s 4Cs. The information you find there will be the most critical part of your ‘diamond advertisement’ so make sure not to lose it.
If you’re wondering how your diamond’s cut or other features might compare to moissanite, check out our Moissanite vs. Diamond Comparison.
Pricing Your Lab Grown Diamond
One of the most sensitive issues is pricing the diamond. Unfortunately, the initial price is not what dictates the value of a stone now. Here is how you can reasonably assess the value of your lab-grown diamond:
- Check What the Market Looks Like: Go to large online retailers, such as RareCarat.com, BlueNile.com, or Brilliance.com. You should search for diamonds with similar characteristics and basis there. Thus, you will understand what the market value is.
- Neglect the Price Outliers: These are the top or bottom prices that have nothing to do with general demand. Excluding other people’s big mistakes from the value may make your stone look more expensive than it actually is. The better practice is not to look at the outliers at all.
- Calculate Your Retail Comp: After you found your price range, you need to calculate your price using other people’s prices. That is what we call “Retail comp” – or the average price of a lab-grown diamond that is roughly equal to yours. You should remember that if you sell to a dealer, it will offer you about 40-50% of this amount. However, if you have a consumer who is ready to deal with you directly without intermediary links – feel free to ask for 75% of the Retail Comp.
- Keep Depreciation Amount in Mind: Synthetic diamonds are much less durable than natural ones. During a few years, the ability of lab-grown diamond to preserve the cost might decrease by several times. If some stone costs around $3,000 within the last two or three years, be prepared for disappointment since now it is worth around $1,500 approximately.
Once you’ve identified a price range for similar diamonds, remember that dealers typically offer 40-50% of the retail price, while individual buyers may offer up to 75%.
For those interested in seeing a broader selection of lab-grown diamond pricing trends, explore our guide to where to buy manufactured diamonds.
Finding a Buyer for Your Lab Grown Diamond
When you have a price in your hand, it’s time to find a buyer. There are three ways to sell lab-grown diamonds:
- Direct sale to a consumer
- Sale to a dealer
- Consignment
Direct Sale to a Consumer
Your options here include Craigslist, eBay, Facebook Marketplace and the like, you will get to keep as much more of the sale price yourself. However, the other side of that coin is that it will involve more work on your part. Here is what you’ll need to get in the bag:
- Grading Report: This is a report from a reputable gemology lab stating the grade of your diamond. Buyers want to feel confident that the diamond you’re selling really is of the quality you say it is.
- Independent Appraisal: In addition to the grading report, a separate appraisal will make consumers more likely to trust they’re getting a good deal.
- Sales logistics: You will be the one listing the diamond for sale. You will ultimately be the one who negotiates a final sales price and in the end, the diamond will be shipped by you.
Sale to a Dealer
One of the quicker ways to sell your diamond, though you’re more likely to get less for it—usually around 40 to 50% of the retail value. There are several options here:
- Pawn Shops and Jewelry Stores: Both are experienced at pricing diamonds, so be ready for a dealer to offer less for your diamond than you might call the “retail comp” yourself.
- Gold and Jewelry buyers: Some gold buyers may buy diamonds, as well. However, you may get even less of an offer from them than from a traditional diamond dealer, as they place most of their value focus on the metal.
Consignment
In this option, you leave your diamond with a jeweler or other third-party seller with whom you’ve made a consignment agreement. The seller will attempt to then sell the diamond for you. You will, however, not get paid until they actually sell it, and at that point, they will take a percentage of the sale. This option has the most potential to sell the diamond for a high price, but is also often the slowest option:
- Time delay: It will likely take weeks, if not months, to sell your lab-made diamond, depending on how busy the jeweler is and how much of a demand there is for lab-produced diamonds.
- Price movers: In that time, the market price for lab-grown diamonds may be shifting. What you think is a high value might actually be rapidly depreciating before your very eyes.
Pros and Cons of Each Selling Method
| Method | Pros | Cons |
|---|---|---|
| Direct Sale to a Consumer | Higher potential earnings, control over the sale process | Requires more effort, time, and risk |
| Sale to a Dealer | Fast and easy, low-risk | Lower price offers, less negotiation flexibility |
| Consignment | Possible to get a higher price | Time-consuming, payment only happens when the stone is sold |
Prepare for Lower Returns
I am sorry, but I should point out that usually, the resale value of lab grown diamonds is frequently lower than what you once paid. Though natural diamonds almost always retain their value with time, so-called artificial diamonds begin to depreciate.
To understand better why it happens, you could read an article on why lab grown diamonds are so cheap. It is also worth mentioning that it can be the same with a moissanite engagement ring in your possession.
To read about how eco-friendly rings compare to being resold natural and lab-grown diamonds however mean, you can surely check our moissanite engagement ring guide.
Important Things to Consider Before Selling
The following are a few points to consider when selling a lab-grown diamond:
- Have all the necessary paperwork: A grading report and independent appraisal, for instance, are particularly important when selling diamonds, even lab-grown ones. This gives buywers more security in knowing what exactly they are purchasing.
- Be ready to have a lower offer: lab-grown diamonds depreciate fast. In other words, what you paid for the diamond and what the current resale value is are most likely going to be different.
- Be warned about online scams: In general, when accepting private buyers, you should be extra cautious even if you are no longer in tehm presence. Be sure to use well-sknown resources to protect yiurself and use a safe payment method and secure, insurance providing delivery service.
- Consider the mounting: If your diamond was set into a ring, keep in mind that the buyer is purchasing only the stone and may or may not be interested in the setting. In the case of engagement rings the setting may affect the overall value of the piece it is usually not going to be the selling point, especially if it is unique and not very popular.
Where to Sell Lab Grown Diamonds example in 2024
For instance, let’s imagine you purchase a $3000 lab diamond. Then add another grand for the mounting, and you’re looking at around $4000 with your size setting sales tax shipping appraising etc. You’re into it for $4400.
Even the ‘appraiser’, which I put in quotes because it was likely the seller of the ring — unless you had the foresight to have an independent appraisal at that time — told you that it is worth $8000, because they are your friend and that is what friendship is all about.
So, everything but that last report is lost in shuffle of the many years. And, of course, since it wasn’t an independent appraisal the final $8000 number really was pulled from thin air.
Now fast forward three years, to this year when you want to resell that lab-grown diamond. And Stones of this specs are now 50% off (example). $1500 retail. You will probably $600 for that from a dealer, assuming it and the paperwork is not messed up. If you have lost the lab report, your just going to need a new one. If gold, $100 for the mounting. All the rest of it is gone. $8000 Ring You Thought Was, $700 Net Not even a dime on the dollar. Yikes!
That is also the reason why most jewelers wont buy from you and if you want a jeweler to even consider it you better show up in their store with all your fine, beading beauty. They have an “appraisal” that says it is a $8000 car and will take $5000. Which seems fair until you dive into it.
The brochure attempting to sell the diamond genuinely believe this is a GREAT deal for the jeweler! But the poor simpleton is not aware of the market opportunity to exploit with their sparkly new lab-created diamond.
At least now the store is willing to buy it for a misleading $500-$700 and that’s if they get an employee who will do the look-over and theres no issues. A customer who will not only not buy, but actually gets pissed off about it! The jeweler, he said looks like a thief.
Now they failed to get the buy and bought from a different store at the same time pissed off a customer. Lose-Lose. It’s just not worth the risk.
There are good news too (sort of)
Contrary to what the natural diamond purveyors would like you to believe, lab-grown diamonds *ARE* resellable. (And they have the same problem not quite as bad)
The safest option is to call your local jewelers beginning with the ones you bought from, and inquire whether they trade in lab grown diamonds. Pick one or two who actually want to purchase in principle and pay them a visit. The gold everyone purchases, it is THE diamond.
Pawn Shops will often buy. Not all of them, but many of them! Throw the old appraisal and receipt at home but take the lab report (or a copy) with you and GET A BID.
If you would like to attempt online, send them a copy of the lab but be aware that you will have to convince them it is legit. Look, read terms & conditions before shipping.
If you had a legit independent appraisal done, contact the appraiser and ask if they can tell you what are usual items that feed into it. Well, most of them are well net-networked and can also sometimes help sales. Here are my scheduling details if you’re in the Denver area and I would be happy to help.
Again, it will be based on lab prices versus retail replacement costs of yesteryear. Lab-Grown diamonds are a form of technology, therefore every time their performance increases they are made redundant. But you have a chance!
Final Thoughts on where to Sell Lab Grown Diamonds
Selling a lab-grown diamond can be a frustrating process, but it’s not impossible. The most important step to take is to manage your expectations and come to terms with the fact that you won’t recoup your costs.
If you placed a lot of value on your diamond jewelry and want to get the most out of it, then you will need it to maintain its perfect condition, so make sure to read our recent post on how to clean your engagement ring at home.
And if you’d like to be more economic in the future and are thinking about purchasing more lab-grown or altogether other stones, make sure to read our guide on moonstone engagement rings for a similar yet no less exciting alternative to traditional diamonds.
