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Do Diamonds Lose Value Over Time?

diamond value, lab grown diamond value, natural diamond value
8/10/2021
Do Diamonds Lose Value Over Time?

A diamond can be a status symbol or a love letter, depending on its purpose. While one person may showcase diamond jewelry to advertise their success, another may purchase a diamond to elevate that magical moment when they propose to the love of their life. Whatever the reason for buying a diamond, you may be curious to know if it will lose or gain value over time. Read on to learn whether your diamond will become more or less valuable over the years.

What Determines Diamond Value?

Over the centuries, diamonds have held prominence as a status symbol, demonstrating a person’s wealth and prestige. That said, actual diamond values have gone up and down through the years, affected by countless market variants, the same as every other type of product.

Above all else, diamond values are reflected by supply and demand. Just like the prices of silver, gold and platinum, the market for diamonds rises and falls in value based on demand for the gemstones as an actual commodity. When fresh diamond mines are discovered, the diamond prices naturally decrease as supplies become larger.

So is a diamond gemstone an investment, and will it appreciate over time? The answer is yes, but with a few caveats.

Diamonds generally retain a market value that either increases or remains consistent over time. This is essentially because there is a finite supply. The fundamental laws of supply and demand dictate that as demand goes up, value follows in the same direction.

So, if you purchase a diamond at a fair price and take good care of the stone, you should expect to see an increase in the diamond value over time. How fast or how much the stone appreciates depends on a few important factors. While high-quality naturally mined diamonds tend to retain their value quite well, lab-grown diamonds are a bit less predictable.

While they are identical to diamonds physically and optically, lab diamonds do not have a limited supply, and this can influence their value; although this doesn’t necessarily mean your lab-grown diamond will lose any value at all over time.

As with virtually every valuable item, both mined and lab-grown diamond values increase along with inflation. A diamond bought in 1980 would be worth a lot more in 2021. Whether this is due to the rarity of the gemstone or inflation itself, however, is often dependent on an even greater number of factors.

Ensuring Optimal Value

Much like the often emotional purchase of an automobile, a diamond ring’s value can depreciate quickly after the initial purchase. That said, if you purchase a high-quality engagement ring and take good care of it, the piece will keep a relatively consistent value that could go up over time.

womans hand with diamond ring
Most people think that larger engagement rings will have more value. In reality, the quality of the diamond gemstone and that of the precious metal band are often more important than the size. You can purchase a ring with a big stone that is very low quality for a relatively affordable price. That ring, however, will not maintain its value very well over time.

When assessing the quality of a diamond, you have to factor in the 4Cs, which refer to a stone’s color, clarity, cut and carat weight. The higher a diamond ranks in each of these four categories, the more value it will have and the greater the likelihood that it will maintain its value or see an appreciation in value over time.

If the time ever comes that you want or need to sell your diamond jewelry, you will get a better price if you take it to an expert buyer who specializes in purchasing pre-owned or vintage jewelry. If you’re hoping to get fair market value for your ring, always avoid flea markets, pawn stores, or companies without storefronts that ask you to mail your jewelry to them.

An Investment from the Heart

What makes a diamond an investment-grade gem? Its color, clarity, cut and carat weight. The higher your diamond ranks in all of these categories, the greater its value now and down the road.

When crafting his artfully designed jewelry pieces, John Atencio only uses the highest-quality diamond gemstones. When paired with his uniquely crafted jewelry designs, these wearable works of art hold considerable value, both in terms of dollars and in terms of emotional meaning. It all begins with a uniquely inspired, hand-drawn design and ends with a flawlessly balanced jewelry piece that sets the diamond and ring in a harmonious union.

While deciding on the right diamond engagement ring can feel confusing, your experience needn’t be that way. At John Atencio, our thoughtful experts can show you how to select the right stone cut and carat, along with the ideal metal and ring setting for your beautiful love story. Visit one of our stores where our experts can guide you toward the perfect jewelry selection.