Can You Resell a Lab Diamond?
Yes, you can resell a lab grown diamond. Ada Diamonds buys back independently-graded, high quality lab diamonds sold to clients through our Buy-Back Program. We also offer lifetime trade-in on all of our independently-graded lab grown diamonds.
The Resale Market
Before we discuss the resale value of a lab diamond, we must discuss the resale value of a mined diamond. Excluding 'investment grade' mined diamonds, it is virtually impossible to sell a mined diamond purchased in the last decade for a profit, relative to inflation (i.e. for more money than what you paid for it). This is because the retailer that purchases your diamond (mined or lab) must be able to resell it for a profit. Diamond retailers are also often able to negotiate attractive pricing and payment terms with wholesalers, which means the public is typically offered lower than traditional wholesale pricing for their pre-owned diamond.
Pricing
All diamonds, lab grown and mined, are priced at wholesale and retail based on an internationally accepted pricing system known as the Rapaport pricing method. Rapaport pricing is similar to “MSRP.” This system prices diamonds based on their 4Cs, whether they are lab grown or mined. Wholesale, retail, and resale prices are determined based on a discount percentage of the Rapaport price, regardless of the origin of the diamonds.
The Truth
Buying a diamond engagement ring or piece of fine jewelry, whether lab grown or mined, should be considered a discretionary, luxury purchase and not an investment. Diamonds are historically not a good place to “park” your money. You should treat your lab diamond for what it is: a beautiful piece of wearable art and representation of your love that will last forever.
Reselling Your Lab Diamond
Lab grown diamonds are a rapidly growing part of the overall diamond market. Just because your local jeweler is not purchasing lab grown diamonds from the public today does not mean that they will not buy lab diamonds in the future.
Preparing to Sell Your Lab Diamond
Regardless of your reason for selling your lab diamond, you will have a much better experience if you start the process prepared. Here are some things to keep in mind for your sale:
Are you legally able to sell your lab diamond? You may need to check your specific state’s requirements requiring gifts vs unconditional gifts to see who is the rightful owner of the lab diamond in the event you never got married. If your engagement ended prior to your wedding, it is possible that the legal owner of the lab diamond is actually the original purchaser, and not the recipient. In most cases, the recipient of the ring can legally sell the diamond after marriage.
Do you have all of your paperwork? In most cases, retailers who purchase diamonds from the public require both a grading report from IGI, GIA, GCAL, or AGS, as well as proof of purchase to ensure the ring was not stolen. If you don’t have these things, you should obtain them first before trying to sell your lab diamond. You may need to get a new certificate printed with the grading lab or a receipt produced by the original retailer.
Are you a US citizen? If you’re trying to sell your lab diamond in the United States and you are not a US citizen, you may struggle to do so. This is because diamond retailers are subject to “Know Your Customer” laws under the US Patriot Act that require processes designed to hinder money laundering.
Are you really ready to sell the diamond? In many cases, an offer made to you for your diamond will have an expiration, or be an “exploding” offer. This is because transactions happen quickly in diamonds and no one likes to have their time wasted. If you’re still debating whether or not you’re ready to sell your diamond, then wait. You may end up burning most of your opportunities to sell it if you start the process then back out.
Lifetime Trade-In and Upgrades
Ada Diamonds offers 100% value guarantee for all lab diamonds purchased through us via our Lifetime Trade-In guarantee. Receive full value for what you paid for a lab diamond towards a new lab diamond. Some exclusions apply. Please read our full terms for more information.
