How to Choose a Lab Grown Diamond That Holds Resale Value
Buying a lab grown diamond is smart — for beauty, ethical reasons, and cost. If resale value matters to you, make choices that buyers and trade professionals recognise. This guide explains the most important factors: certification (IGI vs GIA), clarity guidance, carat‑price trends, and the exact grades to prioritise.
1. Certification matters: IGI vs GIA
When resale is important, the certification body you choose is one of the first filters. Two well‑known labs are IGI (International Gemological Institute) and GIA (Gemological Institute of America). Both provide grading reports, but they differ in approach, market prevalence and cost.
Why IGI is commonly used for lab grown diamonds
- Market prevalence: IGI has been widely adopted for lab grown diamonds and is familiar to many online and regional buyers.
- Cost‑effective: IGI grading fees are generally lower than GIA for comparable lab grown stones.
- Traceability: Many IGI reports include a certificate number that can be laser‑inscribed on the diamond's girdle, which helps buyers visually verify the stone.
Why GIA carries prestige — and the trade‑offs
- Reputation: GIA is widely considered the gold standard in diamond grading, especially for natural diamonds.
- Cost and timing: GIA grading is typically more expensive and can take longer than IGI.
- Resale signal: A GIA lab grown report can add cachet among high‑end buyers, but you should weigh the extra cost against expected resale benefit.
Bottom line: For lab grown diamonds IGI is a practical and trusted choice—especially when the report includes laser inscription and full documentation. If your buyer profile is high‑end resale markets, GIA can add extra credibility if budget allows.
2. Do Not Choose IGI with VS Grades
Important: Avoid choosing an IGI‑certified lab grown diamond listed as VS clarity if resale value is a priority. Here’s why.
What VS clarity means — and the problem in the lab grown market
Clarity grades (from best to lower): FL → IF → VVS → VS → SI → I. VS sits between VVS and SI. In the lab grown industry, producers and graders often predict whether a given rough will reach VVS clarity. Stones unlikely to reach VVS quality may be routed away from premium channels.
Why VS grades under IGI can behave like SI in market value
- Because lab production is controlled, the rarity premium for VS clarity is smaller than with natural stones.
- In practice, many IGI VS‑graded lab grown stones behave more like SI in resale — buyers and trade buyers treat the VS premium skeptically.
- Paying a premium for VS clarity on an IGI report may not be recovered at resale, because the market often discounts VS lab grown stones.
If resale matters: prioritise VVS or better clarity, or ensure a stone is truly eye‑clean at the price point you pay.
3. Cost & Carat‑Size Trends for Lab Grown Diamonds
The price per carat for lab grown diamonds is not linear. Knowing typical trends helps you avoid size‑driven losses later.
- 1.0 ct: high production yields make 1.0 ct relatively affordable per carat.
- 1.5–2.5 ct: this range is often a per‑carat price peak — production yields drop and market demand creates a "sweet‑spot" premium.
- Above ~2.5 ct: price per carat often declines because the buyer pool narrows, even though larger sizes are rarer in practice.
Result: 1.5–2.0 ct stones can feel most expensive per carat. If resale is important, balance size with cut and clarity — don’t pay a size premium without top grades to back it up.
4. What Grade Should You Choose for the Best Resale Potential?
Recommended combination for resale‑minded buyers:
- Cut: Excellent / Ideal (visual performance drives resale demand).
- Colour: D–F (colourless) or G–H (near‑colourless) depending on budget and setting.
- Clarity: Aim for VVS or better. Avoid IGI VS for resale‑oriented purchases.
- Carat: 1.0–2.0 ct is often the best balance of demand and price — if you go >2.5 ct, insist on exceptional grades and documentation.
- Certificate & inscription: Laser inscription of the certificate number and "lab grown" wording improves verifiability.
- Vendor reputation: Buy from a retailer that provides full documentation, clear return/service policies, and transparent sourcing (MadisonDia’s commitment).
5. Why Resale for Lab Grown Diamonds Is Different
Lab grown diamonds are created in a controlled environment; supply can scale and rarity behaves differently compared with mined diamonds. Because of this, resale reliance on certificate alone is weaker — visual quality, market perception, and seller reputation matter more than ever.
Conclusion & Quick Buying Checklist
Short checklist before you buy:
- Certificate: IGI is fine and cost‑effective; consider GIA if you want extra prestige and can justify the cost.
- Avoid: IGI VS clarity if resale is the goal.
- Prefer: Excellent/Ideal cut, D–F or G–H colour, VVS clarity (or better), laser inscription and clear documentation.
- Buy from reputable sellers who stand behind their grading and offer transparent policies.
FAQ
What is the difference between a lab grown diamond and a natural diamond?
Why does certification (IGI vs GIA) matter for resale?
If a stone is IGI‑certified, is it good enough?
What grades balance resale value and budget?