Lab Grown Resale Prices

[distracts]

LGD prices are dropping so rapidly and are so inconsistent across websites that I'm seeing a lot of them being sold secondhand for much more than I could buy a new one for. Sellers seem resistant to price drops or negotiation ime. I get it if it's a branded specialty cut but I don't if it's something basic you can get on any website. What have you noticed with this and where do you think resale prices are going?

 

[AprilBaby]

I’m sure I could sell my latest diamond for way more than I’m paying. Other website prices are 3-4 times what I’m paying.

 

[Jax172]

It’s extremely hard to resell lab grown diamonds for anywhere near what you paid for them. I’m trying to sell my lab grown oval 18K white gold ring from Frank Darling for $500 less than I paid only 5 months after buying it and there is no interest. Buy lab grown because you love it and want to hold onto it because you likely can’t sell it or you’ll have to sell it for way way less than you bought it for. Lab growns are being produced at such a rate there is no incentive to buy from a private seller that offers no return policy. Just wait a couple weeks and a similar stone will be available from a retailer that offers some protections like return policies and assurances that you will actually get your merchandise. And the price will be similar, lower, or only slightly higher than the private seller.

 

[distracts]

I’m sure I could sell my latest diamond for way more than I’m paying. Other website prices are 3-4 times what I’m paying.

Do you think you could actually sell it for that, though? I know websites offer a variety of prices but I check places like Adiamor and Ritani and wouldn't be willing to pay more for a secondhand lab grown than I could on those sites, because otherwise I'd just buy a new one. I see a lot of LGD languishing on secondhand websites when mined diamonds are still moving.

 

[distracts]

It’s extremely hard to resell lab grown diamonds for anywhere near what you paid for them. I’m trying to sell my lab grown oval 18K white gold ring from Frank Darling for $500 less than I paid only 5 months after buying it and there is no interest. Buy lab grown because you love it and want to hold onto it because you likely can’t sell it or you’ll have to sell it for way way less than you bought it for. Lab growns are being produced at such a rate there is no incentive to buy from a private seller that offers no return policy. Just wait a couple weeks and a similar stone will be available from a retailer that offers some protections like return policies and assurances that you will actually get your merchandise. And the price will be similar, lower, or only slightly higher than the private seller.

If yours is the one I think it is on LT - then yeah, I can see that, though you've got yours priced over what you paid for the diamond, so a buyer will have to come along who wants that exact setting in 18k white gold, which limits the buyer pool. If anyone wanted just the diamond and didn't attach a premium to the specific setting, they'd be better off buying elsewhere.

 

[AprilBaby]

Do you think you could actually sell it for that, though? I know websites offer a variety of prices but I check places like Adiamor and Ritani and wouldn't be willing to pay more for a secondhand lab grown than I could on those sites, because otherwise I'd just buy a new one. I see a lot of LGD languishing on secondhand websites when mined diamonds are still moving.

Yes, people who are looking at high priced sight would be hard pressed to find a 3 ct for what I paid. It took a lot of time and research to find mine. I personally know people who would pay double what I paid to buy it. My local jeweler is asking 12,000 for a lesser quality stone.

 

[oncrutchesrightnow]

One thing to remember is that people have been buying low-quality earth grown diamonds forever. So it is no surprise that now people are willing to buy low-quality lab grown diamonds when they are dirt cheap. Most people on PS are not going to buy the cheapest LGD unless it is for a specific reason — they want a milky look, like grey, want blue nuance, think magnetism is cool, etc. So there is a sample size effect.

 

[distracts]

One thing to remember is that people have been buying low-quality earth grown diamonds forever. So it is no surprise that now people are willing to buy low-quality lab grown diamonds when they are dirt cheap. Most people on PS are not going to buy the cheapest LGD unless it is for a specific reason — they want a milky look, like grey, want blue nuance, think magnetism is cool, etc. So there is a sample size effect.

Do you really think the cheapest ones all have problems? I got a 2 ct from Lightbox and after coupons and cash back it was either $1200 or $1400 and looks great - not the best cut ever but obviously GIA triple X, color H or I, no visible inclusions, clocked in at 2.05 cts. And plenty of the diamonds on Ritani, Adiamor, Clean Origin, etc are very inexpensive and look fine with no tint, growth lines, or haziness. Plenty of people here have gotten very reasonably priced LGD that look great and I've seen the same on other forums. I don't know that I buy that the cheap ones are necessarily lower quality, based on what I've seen. Especially when you can search the same IGI number across websites and find a price from $2k-$8k depending on which site you're on.

 

[oncrutchesrightnow]

Do you really think the cheapest ones all have problems? I got a 2 ct from Lightbox and after coupons and cash back it was either $1200 or $1400 and looks great - not the best cut ever but obviously GIA triple X, color H or I, no visible inclusions, clocked in at 2.05 cts. And plenty of the diamonds on Ritani, Adiamor, Clean Origin, etc are very inexpensive and look fine with no tint, growth lines, or haziness. Plenty of people here have gotten very reasonably priced LGD that look great and I've seen the same on other forums. I don't know that I buy that the cheap ones are necessarily lower quality, based on what I've seen. Especially when you can search the same IGI number across websites and find a price from $2k-$8k depending on which site you're on.

Totally agree. On the whole IMHO the bad ones that are on the market help explain the cost.

 

[denverappraiser]

Resale prices have several sticking points.

1) As you point out, retail prices are dropping and, assuming we're talking about sales to a dealer, they need to find a new customer at the current prices, not old ones. Even worse, they may have it in stock for a while as prices drop so they need to plan to sell it at FUTURE prices. That means pay low.

2) Diamonds aren't particularly perishable, but lab reports and the like are. Assuming the stone is older than a year or two, they are going to need to send it in to get it regraded. That comes with lab fees, shipping, and time.

3) Retail markups on LG diamonds are higher than on otherwise similar natural stones, and what you see for comparison is retail prices. Even more to the point, they're retail ASKING prices. That's not the same as getting, as anyone who has ever sold anything knows. The big resale consignment sites are great examples of this. A seller can ASK whatever they want. Potential buyers have no way of knowing how long they've been waiting and, after it's gone, how much they got. It creates a very skewed perception of pricing.

4) Most jewelers and web people don't want to hold a lot of inventory. It adds up quickly. In the normal 'wholesale' marketplace, they don't buy it until you do so they don't have cash out. In the resale market they have to. Typical C to B terms are cash, on the barrel, and they'll never see you again. Wholesalers are much more cooperative.

5) Many Pawn Shops and the like are very experienced with natural diamonds and have a robust market with them. LG is new. They don't know how to buy them, they don't know how to sell them. They barely even know how to identify them. The marketplace is small. At the right price, they'll buy or loan on just about anything, but sellers don't always like the prices.