A diamond is one of the most meaningful and durable luxury items you can ever acquire. So if you are thinking of getting jewelry that sparks joy? Diamonds are the answer.
Starting your diamond collection journey with a piece of lab-grown jewelry is an excellent start because it is more affordable and of the best quality.
A lab-grown diamond is a socially responsible investment in high-quality jewelry that accentuates your looks, enhances your beauty, and complements your style. It is long-lasting, so you can pass it on to your loved ones.
It gets tricky if you’re thinking of a diamond as an investment for financial returns. Because the resale value of most diamonds decreases after purchasing, you will find it hard to sell them at a higher price.
Having said that, what diamonds represent a good investment? According to the International Gem Society, only an extremely rare diamond, above 5 carats, flawless, and with fancy colors, will see its value maintained or increased.
Diamonds of regular quality and relatively small in size will decrease in value just like some other jewelry. This is because of their low markup. You lose about 50-80% of its value at the point of purchase.
The diamond’s retail price incorporates the manufacturer’s markup and the business cost. So a diamond you paid $4,000 will likely be able to resell for anywhere between $800-2,000, regardless of whether it is a mined diamond or a lab-grown diamond.
We have often been sold a lie that mined diamonds have a higher resale value. But the fact is that, except for the ones with rare quality, mined diamonds, once purchased, cannot be resold at a higher price.
This article will highlight what a good investment is and why you should buy lab-grown diamonds. It will also analyze if lab-grown diamonds are as valuable as mined diamonds.
What is a good investment?
Generally, a good investment is determined by its financial gains. But depending on your objective, a good investment is also determined by your personal values and the sentimental worth of the investment.
While some invest to make profits, others consider their investments’ ethical, environmental and social impact. For them, these personal values are usually their primary objective.
Some assets have high sentimental worth, and that is what makes them significant. This kind of investment goes beyond the monetary value. It could represent a good memory or a special occasion.
For instance, buying a diamond engagement ring for the love of your life is a symbol of promise and lifelong commitment. The sentimental value it provides makes it a good investment.
Financial gains are our basic quantifier of a good investment. Acquiring an asset that appreciates over time is one of the characteristics of good investments and one of the fastest ways to grow wealth.
High liquidity in the shortest possible term is another good indicator. Investing in a highly liquid asset will save you during an emergency because you can quickly exchange it for cash to fix your problems.
When an investment generates income for you either steadily or continuously, it is a good investment. This is a way to create a passive income that doesn’t require much active work.
The bottom line is that lab-grown diamonds may not offer you all the aforementioned financial benefits, but it is an ethical luxury item with sentimental value.
Why buy lab-grown diamonds?
Lab-grown diamonds are an excellent choice for that beautiful piece of jewelry you’ve been yearning for. And here is why.
Better options
Lab-grown diamonds are more accessible. They come in a wide range of sizes and colors. The colored diamonds are brighter and easier to find compared to mined diamonds.
Cost-effectiveness
With lab-grown diamonds, you can lay your hands on the diamond you want at an affordable price. Moreover, they cost less than mined diamonds of comparable size and quality.
Clarity and better cut
Lab-grown diamonds do not have impurities compared to mined diamonds. They have good clarity and do not get cloudy. Because they are produced under a controlled environment, they do not have inclusions, are cleaner, and receive better cuts.
Mined diamonds usually have some flaws and may come in irregular shapes.
Environmental sustainability
The means of production of lab-grown diamonds are more eco-friendly.
The mining of diamonds has a dangerous impact on the environment. It destroys the ecosystem and causes erosion and deforestation.
Lab-grown diamonds are more environmentally friendly.
Ethically sourced
With lab-grown diamonds, you are aware of the origin of your luxury jewelry because it is ethically sourced.
Mined diamonds are mostly from war-torn zones, and children are exploited for cheap labor in such areas. Then, the diamonds are sold to fund the war, which is why they are called blood or conflict diamonds.
Authenticity
Unlike what you must have thought, lab-grown diamonds are as real as they come, just like mined diamonds. The only difference between the two is their origin.
While mined diamonds are formed deep within the earth’s crust under high temperatures, lab-grown diamonds are created in a lab by replicating the formation of this force of nature with a machine using either a High-Pressure High, temperature(HPHT) system or the Chemical Vapor Deposition (CVD).
Durability
Due to the quality of the lab-grown diamond, they are durable and long-lasting; you can pass them on to your loved ones from generation to generation.
Are lab-grown diamonds as valuable as mined diamonds?
Lab-grown diamonds are valuable and serve many purposes as luxury jewelry to wear on special occasions. It has the same physical and chemical qualities as a mined diamond.
They can also be passed down to your offspring due to their high quality and durability.
There has been some misinformation on the value of mined diamonds by some jewelers just to sell them off at inflated prices.
The truth is that mined diamonds are ranked higher in value than lab-grown diamonds because of their perceived rarity. However, this myth has been debunked.
Neither man-made nor mined diamonds are rare except for rare natural diamonds that are usually flawless and have nice colors.
The value of a diamond is dependent on the value it offers you and the legacy such luxury provides.
Are lab-grown diamonds worth the investment?
Depending on your perception, lab-grown diamonds are worth the investment if you are not buying them for the resale value.
It might be easier to resell extremely rare mined diamonds than lab-grown ones, but the prices are usually not all that. So if you are buying it to profit from the resale, then buy a 5+ rare diamond or look for better placement.
If you want to resale a lab-grown diamond, you will most likely sale it at the market value at the moment of the resale, meaning you won’t make money out of it.
Lab-grown diamonds are a good investment because they represent opulence and glamor and are usually in high demand. And because it is always trendy, you can never go wrong with diamond jewelry, especially on special occasions.
Additionally, the sentimental value they provide make them worth every penny. Imagine buying a piece of diamond jewelry that remains in your family up to your fifth generation. It is an excellent way to immortalize yourself and ensure every generation has a piece of you.
Having such high-quality jewelry in your possession also encourages impactful change in the diamond industry. That way, you are supporting the production of a luxury item that doesn’t cause harm either to humans or the ecosystem.
Conclusion
An indicator of a good investment is not only about the financial returns but also their sentimental worth and impact.
In a nutshell, a lab-grown diamond is a socially responsible investment in high-quality jewelry that elevates your looks and fashion sense.
The worth of this investment is tied to the legacy it provides and the sentimental value attached to it.
They are worth the buy because they possess better clarity and are eco-friendly, affordable, ethically sourced, authentic, and durable. They are also as valuable as mined diamonds.
Check out Etika Jewels to make your pick of high-quality and trendy lab-grown diamond jewelry pieces.
