Are Lab-Grown Diamonds a Good Investment?

Published: 2026-03-31 | Author: Benny Gabay

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The Investment Question

One of the most common questions we hear at Diagem is: "Are lab-grown diamonds a good investment?" The honest answer requires understanding what you're buying and why. Here's a clear, unbiased breakdown.

Lab-Grown Diamonds: Price Trends

Lab-grown diamond prices have fallen significantly over the past decade as production technology has improved and volume has scaled. A lab-grown diamond that cost R50,000 five years ago might now cost R20,000 or less for a comparable stone. This is a direct result of technological efficiency - the cost of production continues to decline.

This price decline is good news for buyers who want the best possible stone for their budget today. But it does mean that a lab-grown diamond purchased now may be worth less in resale terms in future years.

Natural Diamonds: Historical Value

Natural diamonds have a long track record of maintaining value over time, driven by finite supply, consistent demand, and the scarcity premium of mined stones. While diamond prices fluctuate like any commodity, large, high-quality natural diamonds have generally held or appreciated in value over multi-decade periods.

Investment-grade natural diamonds - typically 2ct+ with exceptional grades - have historically outperformed smaller stones as collectibles and stores of value.

What Lab-Grown Diamonds Excel At

Lab-grown diamonds are not primarily investment vehicles - they are exceptional jewellery choices. Here is where they genuinely shine:

• Maximum quality per rand: You can get a 2ct VS1 Excellent cut lab-grown diamond for the price of a 1ct natural of similar quality
• Ethical clarity: Guaranteed conflict-free, with no environmental mining impact
• Identical beauty: The same brilliance, fire, and hardness as a natural diamond
• Certified quality: GIA and IGI certified to the same standards as natural diamonds

Our Recommendation

If your primary goal is long-term financial investment, natural diamonds - particularly larger, high-grade stones - are the better choice. Their scarcity creates a floor on value that lab-grown diamonds do not have.

If your primary goal is the best possible diamond for your budget - for an engagement ring, a gift, or personal enjoyment - lab-grown diamonds offer extraordinary value that natural diamonds simply cannot match at the same price point.

Most of our customers buy diamonds to wear and to cherish, not to trade. For that purpose, a lab-grown diamond is an outstanding choice.

Browse our certified lab-grown diamonds or natural diamonds at factory-direct prices, or read our Diamond Buying Guide.

Want to see how natural and lab-grown diamonds compare side by side? Read our Natural vs Lab-Grown Diamonds comparison.