Lab e-ring questions

[0515vision]

These questions about lab e-rings came up in RT, and I wondered what the thoughts are over here.

1. Is the percentage of lab e-ring proposal acceptances as high as with mined stones?

2. Are ppl who propose with lab e-rings being honest about the source of the diamond?

3. If a 3ct $10k lab e-ring drops in value to $1000, will the couple still be happy?

Anyone have insight into these questions? Am seeing so many wonderful lab creations here, especially with recuts. Will any of you feel regret if/when lab prices drop further?

I remember seeing a thread where someone was considering paying $40k for a lab diamond pre-pandemic. I wonder how that consumer feels now. I paid $1239 for my 2.15 lab cushion from Brian Gavin. Sure, it may go down to $124 in a couple of years. But in January 2023, it was the right decision for that personal milestone. Maybe I could have waited and saved $1115, but then I wouldn’t have been able to wear it for my 2023 milestone.

I appreciate all the guidance ppl give to each other over here. This forum only runs on the voluntary goodness of ppl’s passion for diamonds.

 

[DejaWiz]

Great questions, but I'm not sure there is accurate aggregated data to answer them.

1. Why not, if both are on board with wanting an LGD?

2. They better be. Honesty is one of the key factors to a healthy relationship.

3. Maybe? See below.

Most things depreciate, including natural diamonds. And there is usually always a huge disparity between retail purchase price and wholesale (trade-in) price, even after years and years...right now natural diamond prices are tanking pretty hard driving down the wholesale prices further, so we could apply your wonderful question to that: are the couples that solely bought natural under the false guise of "natural diamonds hold their value and always increase over time so you won't ever lose money on them" still happy, especially those that paid more within the past two years when prices were at an uptick?
But there's another facet of that transaction which usually gets forgotten or ignored: if one trades in a diamond after years and years of incremental price increases and gets lucky to the point that they break even or maybe even have a little positive equity, the upgrade diamond being purchased is also at the mercy of current higher pricing in that moment. Going from a 1.0-1.5 carat to a 2.0-2.5 carat is going to be quite an expensive undertaking, even if their trade-in diamond is at break even value. It gets even harder to swallow if they are making quite a jump in color and/or clarity, to boot.
Note: this is not taking into consideration the wonderful SIC sellers that have outstanding upgrade programs that protect the buyer from day one.

I look at it this way: the first LGD that my wife and I bought was a 1.69 E SI1 HPHT at around $3300. Great cut precision, no clouding or graining, no blue nuance, excellent ASET result. This was about two and a half years ago during the height of the pandemic when LGD prices had come down a bit from where they were priced at even one to two years before, but no where near the current tanked pricing.
If we had bought an equivalent natural diamond, the retained value would be *maybe* half of these today's prices:


We'll call it $10000 retail two and a half years ago.
Best case scenario, we could trade in today and get $7000 for it...a $3000 loss.

Second LGD is the 2.76 D VS2 HPHT a year ago, also with great cut precision, no clouding or graining, and a excellent ASET result. Paid a bit more at $4400 compared to comparable options, but I was willing to do so since I was after some very specific proportions (40.6 PA, 34.5-35 CA, and a 54-56 table).
Equivalent natural diamonds today:



...we would have to add the $3000 negative equity to the above prices to get the upgrade.
Choosing LGD again, we're way ahead at a combined $7700 and she got to keep her 1.69 which she still wears in regular rotation with the 2.76 - we're pretty well off, but it made more sense to put the LGD savings over natural towards other things that we deem more important: family vacations with lasting memories for us and the kids, house upgrades that benefit future equity, etc. We are absolutely willing to sacrifice the "billion year old" allure of natural as the only real trade-off between LGD and natural. And, after all, the carbon atoms that make up any LGD are just as old as the carbon atoms that make up any natural diamond...just haven't been in crystallized form as long.

Going forward, any new LGD purchases we make will come with some heightened challenges since there is such a flood of human grown diamonds cut from poorer quality material: it takes a LOT of effort to find an exceptionally well cut and proportioned LGD as it is, but now even way more effort to find such an LGD comprised of high quality material.
...grand scheme and all, I suppose not so different than the way natural diamond hunting has always been.
Speaking of which, we should really get her natural diamond ring resized, replated, and repolished so that she can put it back in her regular rotation.

 

[vintageinjune]

1. Is the percentage of lab e-ring proposal acceptances as high as with mined stones?

2. Are ppl who propose with lab e-rings being honest about the source of the diamond?

3. If a 3ct $10k lab e-ring drops in value to $1000, will the couple still be happy?

1) My mind started running away with how to even calculate that. Based on my own experiences and discussions amongst friends/family, I'm going with "yes, the percentage of proposal acceptances for lab vs. mined e-rings likely has no statistically significant difference".

2) I have yet to come across a real life example of someone being dishonest about the source of the gemstones in an engagement ring, but we've all read or heard of stories where someone asks if it's okay to not disclose such information. That, or try and blatantly lie (which, either way, signals to me that they are not ready for this type of commitment and there are likely much larger issues that need addressing before considering marriage).

3) That depends on the couple I think. My lab diamond studs from DG ran me about $5,500 for the diamonds and custom settings I had made, and you could definitely get the same quality for $1,500 or less now. I am, however, still completely smitten with them. Their monetary value to others has no bearing on my enjoyment and love of them. They could be worth $100 next year and I'd still be happy with my decision. I am fully aware though that my stances on jewelry aren't necessarily the norm, as I know I'm not purchasing investment grade stones.

 

[0-0-0]

I think the first two question speak more to the couples’ relationships than what e-ring they decide to go with. In a positive, healthy relationship even a ring pop would do the trick.

I think most people buy luxury goods to celebrate milestones or simply bring joy to their lives. Do price drops in luxury goods later on devalue the celebration of the milestones or joy that people experienced?

Even natural diamonds and precious metals have seen significant price drops before in the 1980s. Did people who bought at the peak feel less happy about their e-rings after the price drops?

They may certainly think that it was a bad financial decision, especially if it was a financed purchase, but I don’t think the price drops change how they actually feel about the e-rings.

I bought a natural 0.5 carat G VS2 H&A last month for less than what I paid for a natural 0.5 carat I VS2 H&A almost 7 years ago from the same vendor. I’m still happy that I bought the I when I did. I’m even happier now that I can buy a G for cheaper!

I buy lab diamonds knowing full well that prices may continue to drop. I see it similar to a luxury car/phone, a purchase that depreciates in value over time, but provides utility and joy during its useful life. I can easily buy a cheaper car/phone or a cheaper gemstone instead of lab to serve the same purpose, but it wouldn’t provide the same amount of joy to me.

I agree with @DejaWiz that it’ll likely be more difficult to find well cut lab diamonds with good material as prices drop further. At some point the high quality manufacturers and vendors will simply abandon the market when the margins are too low. There’s already a significant price gap between what’s available in virtual inventory vs in stock at vendors like WF/BG. Is this price gap sustainable? Will vendors like WF/BG stick around to serve the lab market?

 

[Jax172]

1. I would hope so. The response to a proposal of marriage should have nothing to do with the token given at the time of the question.

2. Again I would hope so. If you are contemplating committing your life to another than honesty should be a given in that relationship. I work in the wedding industry and engagements are rarely true surprises anymore and most of my brides had a direct hand in selecting their ring these days.

3. I have owned my earth made engagement diamond for over 20 years and I honestly have never compared current pricing to what we paid for it. I buy things because I love them in the moment and I'm willing to pay the asking price at that time. I don't really fall out of love with something because the "value" has decreased. I am all for lab diamond prices going down because then I can have more of them in the future. Diamonds have never been about any perceived value in owning them to me. I just love their sparkle and nothing else has ever been able to mimic them enough to make me happy. I am very excited that lab diamonds exist at more affordable prices now because I could never own the type of jewelry I do with earth made diamonds. My engagement ring is special because of the meaning behind it and not because technically it has the most monetary value.

 

[elle_chris]

These questions about lab e-rings came up in RT, and I wondered what the thoughts are over here.

1. Is the percentage of lab e-ring proposal acceptances as high as with mined stones?

2. Are ppl who propose with lab e-rings being honest about the source of the diamond?

3. If a 3ct $10k lab e-ring drops in value to $1000, will the couple still be happy?

1. I would think so. Can't imagine people saying no because it's a lab diamond. Unless of course they knew what their partner wanted and went the opposite route. But then they have other issues.

2. I think most are. But there's probably a few out there who lie.

3. I'm sure the couple will still be happy (with each other) but it would annoy me. Most people don't want something they purchased to drop 90% in less than a few years. Whether or not I still love the piece is isn't the point to me.

I just made my first 7 stone lab ring purchase. The price was low enough for me not to care if prices drop even further so I'm comfortable with my choice.

 

[0515vision]

I appreciate all of your earnest replies. It's been lovely to read about how we relate to our pieces and the transactions involved in bringing them home. Shout out to @DejaWiz who pulled out charts!

The question of "accepted proposal rate" chafed me. It presumes that there might be a character quality attached to ppl who prefer one type over the other. If I know anything, it's that bank accounts/religions/party lines/academic degrees and on and on don't correspond to character.

Ah, if only someone knew how to guarantee a good and stable relationship! Talk about something that's invaluable.