Lab-grown prices drop 26% over two years

The price of lab-grown diamonds has fallen significantly in recent years. In July 2022, the price was $300 per carat, but by mid-2024 it had dropped to just $78 per carat. This significant decline is primarily due to an oversupply of the product and the rapid advancement in production technologies, which has made these diamonds more accessible to the consumer but also less valuable in terms of resale. Initially welcomed for their affordability and ethical credentials, lab-grown diamonds are now flooding the market. The current oversupply is driven by enhanced manufacturing capabilities, particularly in India and China, where production has increased significantly. This has resulted in an oversupply on the market, which has subsequently driven prices down.

Despite the lower price point, lab-grown diamonds retain the same physical and chemical properties as their natural counterparts. These stones are created using high-pressure, high-temperature (HPHT) or chemical vapor deposition (CVD) methods, resulting in a product that is virtually indistinguishable from mined diamonds to the naked eye. However, lab-grown diamonds do not possess the same resale value as natural diamonds, which results in a significant depreciation of their worth over time.

Experts have highlighted that, while lab-grown diamonds offer a cost-effective option for consumers, their potential for investment is uncertain. A report from the Diamond Pro indicates that a one-carat lab-grown diamond, which may cost approximately $1,000, does not possess the same resale potential as a natural diamond, which can command a significantly higher resale price. The industry is divided on the future of lab-grown diamonds, with some viewing them as a disruptive force in the market and others as a transient trend.                                                                                              

Photo credit: Envato Elements