A natural diamond is more than just a piece of jewelry—it’s a symbol of love, commitment, and elegance. But beyond its beauty, many buyers wonder: Do natural diamonds hold their value over time? The answer depends on several factors, including quality, rarity, market demand, and investment strategy.
At Victoria Marie Jewelers, we believe in providing customers with not just exquisite diamonds but also the knowledge to make informed decisions. In this guide, we’ll explore how diamonds retain value, how they compare to other investments, and what affects their resale price over time.
How Well Do Natural Diamonds Hold Their Value?
Natural diamonds generally retain value over time, but the extent to which they appreciate or depreciate depends on various factors.
Factors That Help Diamonds Hold Value
- High-Quality Diamonds – Well-cut, high-color, and flawless diamonds retain better resale value.
- Rarity & Demand – Rare diamonds, such as large stones or fancy-colored diamonds, often increase in value.
- Certification – Diamonds with GIA certification command higher resale prices.
- Classic Cuts – Round brilliant diamonds tend to hold value better than trendy or non-traditional shapes.
Factors That Can Cause a Diamond to Lose Value
- Lower-Quality Stones – Diamonds with visible inclusions or poor cuts may lose value over time.
- Retail Markups – The original purchase price includes markups that affect resale value.
- Market Trends – Diamond demand fluctuates, impacting resale potential.
- Lab-Grown Diamonds – As technology advances, lab-grown diamonds decrease in price, making natural diamonds the superior long-term option.
While not all diamonds appreciate, high-quality natural diamonds remain desirable and valuable assets.
Is a Diamond Ring a Good Financial Investment?
Diamonds are often considered timeless assets, but are they a good financial investment?
- Long-Term Store of Value – Unlike fast-depreciating assets, diamonds maintain intrinsic worth due to their rarity.
- Emotional & Heirloom Value – Many natural diamonds hold sentimental value that surpasses their monetary worth.
- Inflation-Resistant Asset – High-end diamonds tend to hold value better than currency in fluctuating markets.
- Not a Traditional Investment – Unlike stocks or real estate, diamonds don’t generate passive income or dividends.
- Resale Challenges – Selling a diamond at a high price can be difficult due to retail markups.
Best Investment Strategy: If buying a diamond as an investment, choose a rare, high-quality, GIA-certified stone that has a track record of appreciation.
Do Lab-Grown Diamonds Hold Their Value?
Many buyers wonder if lab-grown diamonds are a comparable alternative to natural diamonds in terms of value.
Advantages of Lab-Grown Diamonds
- Lower price point – Typically 50-70% cheaper than natural diamonds.
- Visually identical – Lab-grown diamonds have the same sparkle as natural ones.
Disadvantages of Lab-Grown Diamonds for Value Retention
- No long-term appreciation – Unlike natural diamonds, lab-grown diamonds are mass-produced and do not hold value well.
- Decreasing market price – As technology advances, the cost of lab-grown diamonds is dropping, further reducing resale value.
If value retention is a priority, a natural diamond is the superior choice.
Are Diamonds More Valuable Than Gold?
Diamonds and gold are both highly desirable assets, but their value behaves differently.
- Gold has a fixed global price – Gold’s value is determined by market prices, making it a more liquid asset than diamonds.
- Diamonds are unique and subjective in value – Unlike gold, diamonds don’t have a universal price per carat, meaning their resale value depends on quality and demand.
- Diamonds are rare and timeless – While gold can be melted and repurposed, each diamond is unique, making it valuable as a luxury good.
Gold is a more stable financial asset, but diamonds are more personal, timeless investments with lasting desirability.
How Does Inflation Affect Diamond Prices?
Inflation impacts almost every commodity, including diamonds, but the effect varies based on diamond type and market demand.
- High-end diamonds tend to retain value better – Luxury items often increase in price due to exclusivity.
- Retail diamond prices may rise – Inflation raises the cost of diamond mining, production, and retail pricing.
- Secondhand market fluctuations – Inflation can impact the resale value of diamonds, depending on demand at the time of sale.
A rare, high-quality natural diamond can act as a hedge against inflation, maintaining its desirability over time.
What Is the Best Way to Invest in Diamonds?
For those considering diamonds as a long-term investment, certain strategies can help maximize value retention.
Best Ways to Invest in Diamonds
- Buy High-Quality, Certified Diamonds – Stick to GIA-certified diamonds with excellent cut, color, and clarity.
- Choose Classic Shapes – Round and oval diamonds hold value better than trendy shapes.
- Prioritize Rarity – Fancy-colored diamonds (pink, blue, green) or large carat stones are the most likely to appreciate.
- Purchase from a Trusted Jeweler – Victoria Marie Jewelers provides authentic, high-quality diamonds that stand the test of time.
Mistakes to Avoid
- Buying non-certified diamonds, which are harder to resell.
- Choosing trendy, non-traditional cuts that may fall out of fashion.
- Overpaying for low-quality stones with poor cut or visible inclusions.
The best diamond investments are rare, high-quality, and purchased with long-term value in mind.
How Does the Resale Value of a Diamond Compare to Other Gemstones?
Not all gemstones hold their value equally—some appreciate more than others.
Gemstones That Hold Value Well
- Natural Diamonds – Especially large, flawless, or rare-colored diamonds.
- Rubies & Sapphires – High-quality Burmese rubies and Kashmir sapphires can increase in value.
- Emeralds – Colombian emeralds with exceptional clarity are highly desirable.
Gemstones That Lose Value More Quickly
- Treated or synthetic gemstones – Lab-created stones rarely hold value.
- Soft stones (e.g., opal, tanzanite, topaz) – These stones are more prone to damage and depreciation.
Natural diamonds remain one of the most reliable gemstones in terms of value retention.
Why Choose Victoria Marie Jewelers for Your Diamond Investment?
At Victoria Marie Jewelers, we provide:
- GIA-certified natural diamonds for authenticity and long-term value.
- Expert guidance to help you choose a diamond that holds its worth.
- Bespoke engagement rings crafted with precision and quality.
- Jewelry appraisals and insurance assistance to protect your investment.
Visit Victoria Marie Jewelers today to explore our timeless collection of natural diamonds.
A natural diamond is forever—invest in one that holds its beauty and value with Victoria Marie Jewelers.