LAB-GROWN DIAMONDS are marketed as innovative, ethical, and accessible. But under the surface, they carry long-term risks for both retailers and customers. It’s time we talk about them.
Let’s talk about value. In 2021, a 2-carat lab-grown diamond retailed for approximately $6,000 to $8,000. Today, similar stones are retailing for around $1,200 to $1,500, a drop of more than 75% in just four years. Meanwhile, some Chinese suppliers are producing lab-grown diamonds for as little as $2.10 to $3.80 per carat. That means retailers are charging thousands for a product with a production cost comparable to a fast-food hamburger.
Is lab-grown creating trust issues? A client who bought a lab-grown engagement ring in 2021 may return expecting to upgrade, only to find their $8,000 purchase is now worth less than $500. Unlike natural diamonds, which many independent retailers back with generous trade-in programs, lab-grown stones typically offer zero resale or upgrade value. The emotional fallout from that realization can break client relationships.
Some argue, “If the customer wants a lab, give them a lab.” But as professionals, we owe them transparency. If you choose to carry lab-grown, make your policies crystal clear.
Note on the receipt that resale and trade-in value are not guaranteed. Let your customer make an informed choice, and don’t depend on your sales team to do all the educating.
Beware of the upgrade pipeline drying out. And be careful how your lab-grown diamonds are displayed. Putting a $1,284 lab stone next to a $17,000 natural invites a race to the bottom. Without context, you’re training your client to see natural diamonds as overpriced.
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Let’s not forget the broader business model implications. A natural diamond sale might yield a lower margin (40–50%), but it’s more likely to bring in a higher ticket and a return customer. Selling lab-grown at a 70% margin doesn’t mean much if your upgrade pipeline dries up.
The “don’ts” of lab-grown sales. There may be a place for lab-grown diamonds, but only with guardrails. Don’t put them in the same case as natural. Don’t oversell their long-term worth. And most of all, Don’t lose a client’s trust over a short-term sale.
The “do’s” of responsible selling. Double down on natural diamonds’ legacy. Promote your trade-in programs and long-term upgrade benefits. Elevate storytelling around rarity, generational value and emotional investment. If you do sell lab-grown, lead with education, not promotion. Protect the relationship first.
