Selling Gold & Silver
Lab-Grown vs. Natural Diamonds: Why Resale Value Is So Different
The short version: lab-grown and natural diamonds look the same, but they don’t resell the same. Lab-grown stones can be made in any quantity, and that has pushed resale prices down for diamonds of every kind. A grading report is the surest way to know which you have, and the gold setting has its own value either way.
Lab-grown diamonds are everywhere now. They’re in mall jewelry stores, online shops and a lot of engagement rings bought in the last few years. They look exactly like natural diamonds, and to the naked eye you can’t tell them apart. But when it comes time to sell, the difference matters a lot.
Gold and silver are our main business, but diamonds come across our counter all the time, usually set in gold. We buy both natural and lab-grown diamonds. So here’s the plain version of what you should know.
What a lab-grown diamond actually is
A lab-grown diamond is a real diamond made in a factory instead of mined from the ground. It’s carbon with the same crystal structure as a natural stone, so it has the same hardness and the same sparkle. The difference is where it came from. A natural diamond formed underground over a very long time. A lab-grown one was made in a factory in a matter of weeks.
That’s not a knock on lab-grown stones. They’re a good way to get a big, clean-looking stone for less money, and plenty of people are happy with them. It just means they’re a different product, and the market prices them that way.
| Natural | Lab-grown | |
|---|---|---|
| Material | Diamond (carbon) | Diamond (carbon) |
| Where it forms | Underground, over a very long time | In a factory, in weeks |
| Standard diamond tester | Reads as diamond | Reads as diamond |
| How to confirm | Grading report | Grading report, or a “laboratory-grown” inscription |
What diamonds resell for today
Right now the resale market for diamonds is weak, for natural and lab-grown stones alike. Lab-grown stones can be made in any quantity, and they have pushed prices down across the board. Even a natural diamond usually brings a small fraction of what it cost at the store, and lab-grown stones bring less.
Retail prices haven’t always caught up with that, so many people are surprised when they go to sell. We’d rather tell you up front. We buy both, and we’ll tell you honestly what a stone is worth today. If resale matters to you, ask about it before you buy, not after.
How to tell which one you have
You can’t tell by looking. Here’s what actually helps:
- A grading report. Labs like GIA state on the report whether a stone is natural or laboratory-grown. If you have the paperwork from when the ring was bought, bring it along.
- A laser inscription. Many graded diamonds have a tiny number or note inscribed on the girdle (the thin outer edge), which you can see under magnification. GIA inscribes lab-grown stones it grades as laboratory-grown. A number on its own just points to a grading report, so look that report up. No inscription doesn’t prove anything either way.
- Your receipt or appraisal. Under the FTC’s Jewelry Guides, a store describing a lab-grown stone as a diamond should say so, with words like “laboratory-grown” or “laboratory-created.” Check the paperwork from when the ring was bought.
- Testing. A standard diamond tester can’t tell lab-grown from natural, because both are diamond. It takes a specialized test or a lab.
If you’re not sure what you have, bring it in. Greg, who completed GIA’s Diamond Essentials course and its Diamond Grading Lab, will take a look and tell you honestly what he sees.
Don’t forget the gold it’s set in
Here’s what a lot of people miss. Whether the stone is natural or lab-grown, the setting is often gold or platinum, and that metal has its own value. A 14k band holds the same gold value either way. Often the setting is worth more than you’d expect. We test the metal with our XRF analyzer in front of you, the same way we do for any gold jewelry. Our guide to XRF testing explains how that works, and what gold bracelets are worth shows how weight and karat turn into a price.
If you’re cleaning out a jewelry box, our post on what happens at our counter when you sell walks through a visit start to finish. One plain-spoken warning: don’t sell anything you will miss. A GIA report helps but isn’t required, and our sell diamonds page covers what to bring.
Frequently asked questions
Is a lab-grown diamond a fake diamond?
No. It’s a real diamond with the same makeup as a natural one. It was just grown in a lab instead of formed in the ground. Cubic zirconia and moissanite are different: they only look like diamonds and are made of other materials.
Do you buy lab-grown diamonds?
Yes. We buy both natural and lab-grown diamonds. Resale prices are low right now for both, so we’ll explain what your stone is worth before you decide.
Do I need a GIA report to sell a diamond?
It helps, but you don’t need one to bring it in. A report is the easiest way to show whether a stone is natural or lab-grown.
Is the gold setting worth anything on its own?
Yes. The band or setting is valued on its gold or platinum content, whatever the stone turns out to be.
Come see us
Not sure what you’ve got? Bring it in and we’ll take a look. Greenville Gold & Silver, 1637 Woodruff Rd, Greenville, SC 29607. Call 864-901-7975. Open Monday to Friday 10am to 6pm and Saturday 10am to 3pm.
