How much more could the market possibly go down?

[Mjay]

I purchased a lab diamond about 4 years ago. A diamond with the same exact specs now goes for a third of what I paid. Sorta annoying but honestly I feel it was worth it for the joy of having it for the past 4 years. I’m currently considering purchasing another lab diamond for 2.5x what I originally said I’d be comfortable spending on any lab diamond. A much larger purchase than the lab diamond I purchased years ago. I REALLY want the stone but gosh if it’s 1/3 of the price in a few years it’s REALLY going to suck. I definitely can see the market going down again but a third again? Seems crazy. At some point it has to bottom out. Thoughts?

 

[sprinklesparkles]

Do you like your piece of jewelry less because it’s less expensive to recreate? Or do you still enjoy it regardless of price?

 

[kgizo]

I’m just going to say it … I get annoyed with the comments along the lines of “don’t buy MMD cause they will go down much more than mined diamonds” (please know this isn’t directed at you Mjay, its a general response to your post). I have plenty of non-MMD jewelry that I would be lucky to sell at 1/3 of what I paid and I’m not alone in this. The values of the components change, and styles change, and it’s bad timing, and on and on. It seems that there is a spotlight on MMD pricing and perceived value compared to other lifestyle choices. If the goal in life is to maximize the accumulation of money then we would all live the most basic, functional lives. Why on earth would I do that? Having a large bank account while living a basic lifestyle would leave me feeling deprived and bring me no joy. I say this as someone who has many, many, many more carats of natural diamonds than MMD and will likely continue to purchase that way. But, quite a few of the posts that people shouldn’t spend their money on MMD are judgmental and I question the objectivity of the poster as well. In my opinion.

 

[Clunkygirl]

I’m just going to say it … I get annoyed with the comments along the lines of “don’t buy MMD cause they will go down much more than mined diamonds” (please know this isn’t directed at you Mjay, its a general response to your post). I have plenty of non-MMD jewelry that I would be lucky to sell at 1/3 of what I paid and I’m not alone in this. The values of the components change, and styles change, and it’s bad timing, and on and on. It seems that there is a spotlight on MMD pricing and perceived value compared to other lifestyle choices. If the goal in life is to maximize the accumulation of money then we would all live the most basic, functional lives. Why on earth would I do that? Having a large bank account while living a basic lifestyle would leave me feeling deprived and bring me no joy. I say this as someone who has many, many, many more carats of natural diamonds than MMD and will likely continue to purchase that way. But, quite a few of the posts that people shouldn’t spend their money on MMD are judgmental and I question the objectivity of the poster as well. In my opinion.

That's a very fair and thoughtful response. I, myself, am thinking of buying a lab diamond. I have noticed I am falling in love with so many rings again (you and Mjay are not excluded) so it might be time soon. I just bought a house and will need to be updating quite a bit so MMD is definitely more within my budget. I think if I can get a gorgeous diamond, I will be happy irrespective of its resale. My hold-up is I'm looking for a peruzzie, or omc this time around and that's not as accessible. Of course, everyone has their own comfort level and preferences.

 

[vintageinjune]

Will prices go down a bit in the future? I believe so. As production increases, and technoligical improvements/advancements make MMD rough supply easier and cheaper to make, there will likely be some drop in cost to consumers.

How much?..... I would love the crystal ball that tells me that!

Regardless of if/ when prices drop though, that won't prevent me from purchasing MMDs right now. If I can't get the same size/shape/quality of diamond in a natural for the money I'm comfortable parting with, then lab stone it is (currently, that's pretty much everything due to my own extreme discomfort with dropping so much money on what amounts to more or less the same thing in my mind, antique cuts aside).

You say you are perfectly content with your first MMD because that was 4 years of enjoyment you have had with it, despite the drop in value. If the enjoyment of a piece is the number one motivating factor, I don't see why that would not apply here again. If you have the money to spend to get exactly what you want, the end result of a piece of jewelry that makes you happy seems worthwhile to me.

You are allowed to change your mind on what you would be willing to spend on a lab grown diamond. You are also fine to draw the line and say you'd rather save up for a natural diamond of the same quality, or wait to purchase until you believe the price is in line with what market value will be in the future.

 

[Mjay]

I’m just going to say it … I get annoyed with the comments along the lines of “don’t buy MMD cause they will go down much more than mined diamonds” (please know this isn’t directed at you Mjay, its a general response to your post). I have plenty of non-MMD jewelry that I would be lucky to sell at 1/3 of what I paid and I’m not alone in this. The values of the components change, and styles change, and it’s bad timing, and on and on. It seems that there is a spotlight on MMD pricing and perceived value compared to other lifestyle choices. If the goal in life is to maximize the accumulation of money then we would all live the most basic, functional lives. Why on earth would I do that? Having a large bank account while living a basic lifestyle would leave me feeling deprived and bring me no joy. I say this as someone who has many, many, many more carats of natural diamonds than MMD and will likely continue to purchase that way. But, quite a few of the posts that people shouldn’t spend their money on MMD are judgmental and I question the objectivity of the poster as well. In my opinion.

Well said! I couldn’t care less about resale value. I make my jewelry purchases for myself not for resale. I don’t have any issues buying lab grown. Just the thought of being able to purchase the same thing a year from now for much less has me thinking. That being said; I guess I may have answered my own question because that is a year less of enjoyment I would get from the piece.

 

[MRBXXXFVVS1]

I think they could go down to whatever is just above the cost of goods sold. As technology improves and supply increases, this will also drive down prices. I could see it almost get down to the price of other lab created gemstones and/or moissonite.

 

[LLJsmom]

I think they could go down to whatever is just above the cost of goods sold. As technology improves and supply increases, this will also drive down prices. I could see it almost get down to the price of other lab created gemstones and/or moissonite.

I am very much an economist so I'm not good at factoring personal tastes and non-economic factors. Thus, I do agree with this assessment. Isn't the point of MMD to make them more accessible to people of all budgets? Improved technology decreases cost, which also brings in more competition, thus driving the price down. Too risky for me. I just don't like buying stuff (non-essential goods) at a price that in 1-2 years down the road, I could get for half or a third.

 

[kgizo]

That's a very fair and thoughtful response. I, myself, am thinking of buying a lab diamond. I have noticed I am falling in love with so many rings again (you and Mjay are not excluded) so it might be time soon. I just bought a house and will need to be updating quite a bit so MMD is definitely more within my budget. I think if I can get a gorgeous diamond, I will be happy irrespective of its resale. My hold-up is I'm looking for a peruzzie, or omc this time around and that's not as accessible. Of course, everyone has their own comfort level and preferences.

Congrats on your new house!
I would love to see MMD in OMC and peruzzi. Seems like the specialty and antique cuts are quite limited in MMD. Which brings me to my answer to Mjay’s question. I think where Lightbox competes prices won’t drop much if at all. I expect LB to follow the Debeers strategy of having the largest market share and in effect setting prices. Where LB doesn’t compete (specialty cuts, larger sizes, diverse colors) it will be interesting to see what happens. I would expect prices to drop, but not hugely since these are niche markets.

 

[DejaWiz]

Well said! I couldn’t care less about resale value. I make my jewelry purchases for myself not for resale. I don’t have any issues buying lab grown. Just the thought of being able to purchase the same thing a year from now for much less has me thinking. That being said; I guess I may have answered my own question because that is a year less of enjoyment I would get from the piece.

The benefit here is that you can get that bigger and better LGD for the same price (or less) that you spent 4 years ago, and probably still come out financially ahead vs equivalent earth grown.
Win-win!

 

[holyrock]

What does it matter if the price will go down? Yes, MMDs will go down slowly, but as alot of labs are now popping up, it makes sense. The demand for MMDs is also growing, in few years 66% of all engagement rings bought by millenials will be set with an LG. That doesnt matter to you tho, youre not a jeweller, you wont hold any stones with the fact your livelihood depends on whether they sell for a profit or not.

Do you enjoy jewelery because it is nice, it makes you feel great and finishes an outfit, or it was amazing present you gave someone you love? Why do you care if it sells back then? You expect to sell it back? If you are like that, dont buy jewelery with diamonds, mined or grown. People think if you buy a 15k$ mined stone and then bring it back in two years to sell back, youre gonna get close to what you paid, when in reality no you wont, you will get 60% of the value most of the time. Do you buy a car and think about how driving it off the lot is gonna knock down its value instantly? Do you buy prada shoes you like and expect to sell them back? Then why do you think like this with jewelry, its nonsensical.

If you want a diamond that will hold its value, and you can wear it for years without it getting any less valuable, spend 600k on a mined fancy blue. : - )

 

[Mjay]

What does it matter if the price will go down? Yes, MMDs will go down slowly, but as alot of labs are now popping up, it makes sense. The demand for MMDs is also growing, in few years 66% of all engagement rings bought by millenials will be set with an LG. That doesnt matter to you tho, youre not a jeweller, you wont hold any stones with the fact your livelihood depends on whether they sell for a profit or not.

Do you enjoy jewelery because it is nice, it makes you feel great and finishes an outfit, or it was amazing present you gave someone you love? Why do you care if it sells back then? You expect to sell it back? If you are like that, dont buy jewelery with diamonds, mined or grown. People think if you buy a 15k$ mined stone and then bring it back in two years to sell back, youre gonna get close to what you paid, when in reality no you wont, you will get 60% of the value most of the time. Do you buy a car and think about how driving it off the lot is gonna knock down its value instantly? Do you buy prada shoes you like and expect to sell them back? Then why do you think like this with jewelry, its nonsensical.

If you want a diamond that will hold its value, and you can wear it for years without it getting any less valuable, spend 600k on a mined fancy blue. : - )

Couldn’t care less about resale or about it holding its value. Never mentioned or even thought about selling it back. That was not my question at all. Just debating on buying now or holding out for the price to drop a bit more. Like I stated in my original question; I bought a lab diamond a few years ago and equivalent stones are now going for 1/3 of the price I paid. Seems like a significant drop in price for just a few years. Do I really care- no, but now that this is a larger purchase I’m debating on whether I want to hold out a bit longer and possibly save $$ or buy a larger stone for the same $. Nothing to do with resale just about my purchase. Probably going to pull the trigger regardless because I want the stone but genuinely curious as to what others think about how much further down it could possibly go before it levels out. I feel it’s a fair question. I know no one truly knows but I love to hear everyone’s thoughts and opinions. I feel like you either didn’t read my question or perhaps I worded it poorly because you took it way out of context.

 

[Philmc99]

Couldn’t care less about resale or about it holding its value. Never mentioned or even thought about selling it back. That was not my question at all. Just debating on buying now or holding out for the price to drop a bit more. Like I stated in my original question; I bought a lab diamond a few years ago and equivalent stones are now going for 1/3 of the price I paid. Seems like a significant drop in price for just a few years. Do I really care- no, but now that this is a larger purchase I’m debating on whether I want to hold out a bit longer and possibly save $$ or buy a larger stone for the same $. Nothing to do with resale just about my purchase. Probably going to pull the trigger regardless because I want the stone but genuinely curious as to what others think about how much further down it could possibly go before it levels out. I feel it’s a fair question. I know no one truly knows but I love to hear everyone’s thoughts and opinions. I feel like you either didn’t read my question or perhaps I worded it poorly because you took it way out of context.

I'm not going to say that prices are certain to go down substantially more. The predominate view seems to be that LGDs are in some race to the bottom in terms of price but I have to imagine that prices will only go down so far until it won't be worth it for more growers to enter the market. Some people on PS compare LGD to flat screen tvs but maybe it should be more like man made counter tops. Yes, quartzite (natural stone) is more than quartz (man made) but quartz is still not cheap.

 

[holyrock]

Couldn’t care less about resale or about it holding its value. Never mentioned or even thought about selling it back. That was not my question at all. Just debating on buying now or holding out for the price to drop a bit more. Like I stated in my original question; I bought a lab diamond a few years ago and equivalent stones are now going for 1/3 of the price I paid. Seems like a significant drop in price for just a few years. Do I really care- no, but now that this is a larger purchase I’m debating on whether I want to hold out a bit longer and possibly save $$ or buy a larger stone for the same $. Nothing to do with resale just about my purchase. Probably going to pull the trigger regardless because I want the stone but genuinely curious as to what others think about how much further down it could possibly go before it levels out. I feel it’s a fair question. I know no one truly knows but I love to hear everyone’s thoughts and opinions. I feel like you either didn’t read my question or perhaps I worded it poorly because you took it way out of context.

Well, i thought resale was implied when asked about something like this. If you can hold out few years before buying it now, then theres no question about it, yes you will be able to get it cheaper. How much cheaper, nobody knows.

If you like it, buy it.

 

[AprilBaby]

I bought my 2.10 last September and it’s gone up quite a bit. Did you check RareCaret?

 

[Philmc99]

I bought my 2.10 last September and it’s gone up quite a bit. Did you check RareCaret?

I bought 3 ctw diamonds in April. Prices are up since then on all the sites.

 

[monipod]

I think with MMDs in particular, it will depend on the stone (colour, cut, clarity and carat). I think garden variety MMD MRBs will get cheaper with practically no resale value, whereas bespoke cuts or hard-to-find-cut-well lab stones will sell fairly well and I don't see them getting cheaper. Me thinks the lucky owners of lab Octavias will still get a pretty penny back if they decide to sell them, and @lovedogs' Asscher from Rhino should retain value too because a good Asscher is so hard to find!

The reason why I went lab with my own Asscher search was due to the lack of well cut mined stones that fit my budget. Someone may be in the same boat if I ever decide to sell it, and I think I should get a reasonable amount of money back. Of course, I have no plans to move them on. I think if you see something you like, go for it now!

 

[Alybetter]

As someone who recently sold a mined diamond for about 1/3 of what I paid for it, I understand the salt. But I believe mined diamonds put you in the same boat in terms of resale value (for the most part). Diamonds aren’t investments.

I remember looking at MMD from brilliant earth about 10 years ago and went with mined because the prices were about the same and BE charges too much for the settings.