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Are Lab Grown Diamonds a Good Investment?

Updated: Jan 3

Hey everyone!

As a licensed gemologist and as a jewelry appraiser, I get asked this question A LOT: Are lab-grown diamonds good or bad?

As in my previous blogs, I discussed with you the merits of lab-grown or synthetic stones. They’re neither good nor bad. It all boils down to DISCLOSURE; customer awareness. It’s when false representations are made to the disadvantage of the customer that gets to me.

Now, as a pawnshop operator, here’s where I have to draw the line. I see jewelry as wearable investments and, as with any other kind of investment, I should be able to liquidate or convert that investment to cash. At the very least, I should be able to use the jewelry as collateral to secure a loan. How will I now value lab-grown diamonds for loan purposes? Will a creditor even accept lab-grown diamonds as collateral?

Lab grown diamonds are definitely cheaper than their natural counterparts, but they can still cause a small dent in your wallet. They’re 40% cheaper. Instead of buying a natural diamond at $10,000 per carat, the lab grown counterpart will cost you $6,000.

As of writing, there is no data available in our industry for second-hand market prices for these types of stones. So if someone were to come to my store to pawn lab-grown diamonds, I wouldn’t accept them at this point in time, because I would not know how to price them for loan purposes. It’s all “wait and see” for me at this point.

The views I have expressed in this particular blog are mine alone. I am not here speaking on behalf of my industry. As always, I welcome a respectful conversation should you have a varying opinion on the subject matter.

If you need help understanding or determining the quality of your diamonds, comment below or email me at You may also book an appointment via Facebook: Willyn Villarica Jewelry or Instagram: @willynvillarica_jewelry.

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