Let’s be honest. For decades, people were told that buying a diamond was not only a symbol of love but also a smart financial decision. The truth? 99% of diamonds are not a financial investment — and it’s time we stop pretending otherwise.
The Sad Truth About Value
Outside of exceptional rarities — think vivid fancy color diamonds or very large stones over 10 carats — diamonds don’t appreciate in value. The vast majority of stones, even high-quality ones, lose resale value the moment they leave the store. Over the past few years, we’ve all witnessed it: natural diamond prices have not just stalled, but dropped.
This isn’t speculation — it’s a reality in the trade. Dealers who once held onto stock expecting it to climb are now liquidating inventory at prices they wouldn’t have believed ten years ago.
Natural vs. Lab Grown: The Real Conversation
On social media, a GIA diamond grader and long-time jeweler recently went viral saying: “Natural and lab grown diamonds are the exact same thing.” And on the science, that’s true. Both are pure carbon, both sparkle the same, both pass a diamond tester. What’s different is their origin story.
For most young couples today, that story doesn’t matter. They care about the look, the feel, and the meaning — not whether the diamond formed in the earth two billion years ago or in a lab two weeks ago.
• Natural diamonds don’t hold value for 99% of buyers.
• Lab grown diamonds also don’t hold value — but they’re up to 90% cheaper up front.
• Plus, lab grown options come without the environmental scars of large-scale mining and without the ethical concerns of labor exploitation.
The Designer Bag Analogy
Think of it this way:
• A Louis Vuitton Neverfull or YSL Sac de Jour looks chic, luxurious, and highly desirable — but once you walk out of the boutique, its resale drops significantly.
• An Hermès Kelly or Birkin, on the other hand, is so rare and sought-after that it not only holds value but often appreciates, sometimes outperforming traditional investments.
Diamonds work the same way. 99% are like the LV or YSL bags — luxury goods that depreciate. Only the rarest fancy colors or mega-carat stones are like the Hermès: true investments.
Why the Industry Is Fighting Harder Now
A few years back, when lab diamonds entered the market, natural diamond dealers barely flinched. They didn’t spend their days commenting under every lab grown post or trying to discredit every jeweler who offered them. Why? Because business was good.
Fast-forward to today: prices are falling, the resale story has collapsed, and suddenly every lab grown conversation triggers fierce defensiveness from the natural side. That reaction alone speaks volumes. It exposes the uncomfortable truth the industry doesn’t want to admit: the “investment” myth has unraveled.
The Facts
• Over the last several years, natural diamond prices have declined significantly, especially in the 1–3 carat range.
• Lab grown diamonds, while dropping too, start at such a lower baseline that consumers accept the trade-off.
• The only diamonds that can honestly be called investments are rare fancy colors and exceptionally large stones.
Madano’s Take
Diamonds are breathtaking. They carry love, promises, and stories. But for 99% of people, they are not financial investments. They’re emotional investments — in your future, your family, and your forever. And that’s more than enough.
Diamonds Are NOT a Financial Investment
Let’s be honest. For decades, people were told that buying a diamond was not only a symbol of love but also a smart financial decision. The truth? 99% of diamonds are not a financial investment — and it’s time we stop pretending otherwise.
The Sad Truth About Value
Outside of exceptional rarities — think vivid fancy color diamonds or very large stones over 10 carats — diamonds don’t appreciate in value. The vast majority of stones, even high-quality ones, lose resale value the moment they leave the store. Over the past few years, we’ve all witnessed it: natural diamond prices have not just stalled, but dropped.
This isn’t speculation — it’s a reality in the trade. Dealers who once held onto stock expecting it to climb are now liquidating inventory at prices they wouldn’t have believed ten years ago.
Natural vs. Lab Grown: The Real Conversation
On social media, a GIA diamond grader and long-time jeweler recently went viral saying: “Natural and lab grown diamonds are the exact same thing.” And on the science, that’s true. Both are pure carbon, both sparkle the same, both pass a diamond tester. What’s different is their origin story.
For most young couples today, that story doesn’t matter. They care about the look, the feel, and the meaning — not whether the diamond formed in the earth two billion years ago or in a lab two weeks ago.
• Natural diamonds don’t hold value for 99% of buyers.
• Lab grown diamonds also don’t hold value — but they’re up to 90% cheaper up front.
• Plus, lab grown options come without the environmental scars of large-scale mining and without the ethical concerns of labor exploitation.
The Designer Bag Analogy
Think of it this way:
• A Louis Vuitton Neverfull or YSL Sac de Jour looks chic, luxurious, and highly desirable — but once you walk out of the boutique, its resale drops significantly.
• An Hermès Kelly or Birkin, on the other hand, is so rare and sought-after that it not only holds value but often appreciates, sometimes outperforming traditional investments.
Diamonds work the same way. 99% are like the LV or YSL bags — luxury goods that depreciate. Only the rarest fancy colors or mega-carat stones are like the Hermès: true investments.
Why the Industry Is Fighting Harder Now
A few years back, when lab diamonds entered the market, natural diamond dealers barely flinched. They didn’t spend their days commenting under every lab grown post or trying to discredit every jeweler who offered them. Why? Because business was good.
Fast-forward to today: prices are falling, the resale story has collapsed, and suddenly every lab grown conversation triggers fierce defensiveness from the natural side. That reaction alone speaks volumes. It exposes the uncomfortable truth the industry doesn’t want to admit: the “investment” myth has unraveled.
The Facts
• Over the last several years, natural diamond prices have declined significantly, especially in the 1–3 carat range.
• Lab grown diamonds, while dropping too, start at such a lower baseline that consumers accept the trade-off.
• The only diamonds that can honestly be called investments are rare fancy colors and exceptionally large stones.
Madano’s Take
Diamonds are breathtaking. They carry love, promises, and stories. But for 99% of people, they are not financial investments. They’re emotional investments — in your future, your family, and your forever. And that’s more than enough.