Lab-Grown Diamonds Lack Resale Value, Warns Adam's Auction House

In a recent statement, Dr. Rachel Healy, Head of Jewellery at Adam's Auction House in Dublin, emphasized the absence of resale value for lab-grown diamonds, a claim that underscores the complexities of the diamond market. The discussion took place during an interview on June 18, 2025, highlighting the growing trend of consumers gravitating towards pre-loved jewellery, particularly among younger buyers seeking sustainable options.

Dr. Healy explained that while lab-grown diamonds share the same chemical properties as natural diamonds, their market perception is drastically different. "We just won't take them in," she stated, indicating that the auction house does not accept lab-grown diamonds for resale. This perspective is becoming increasingly significant as consumers navigate a landscape where authenticity and resale value are paramount.

The diamond market has traditionally been characterized by an intricate balance between supply, demand, and consumer perception. According to a 2023 report from the Gemological Institute of America (GIA), natural diamonds have historically appreciated in value, whereas lab-grown diamonds depreciate significantly once purchased. This trend is reflected in consumer behavior, as many are now opting for vintage or antique pieces, which tend to hold their value better over time.

Dr. Healy attributes the rise in popularity of pre-loved jewellery to the increasing awareness of sustainability and the circular economy. As the cost of living continues to rise, consumers are becoming more value-conscious. The allure of purchasing a unique piece with history for a lower price is appealing, especially when the resale value of new diamonds often drops by two-thirds after purchase, as noted in a study published in the Journal of Economic Behavior in 2022.

The auction house, recently relocated to 17 Kildare Street, Dublin, has adapted to these market shifts by focusing on online auctions and viewings, which have attracted a younger demographic eager to explore unique jewellery options. Dr. Healy highlighted that buyers are increasingly interested in colored diamonds and other gemstones, moving away from the traditional white diamond.

Despite the misconception that lab-grown diamonds are a sustainable choice, Dr. Healy argues that buying pre-owned jewellery is far more environmentally friendly. "Buying at auction is sustainable; it’s not just second-hand; it could be that multiple people have owned a piece previously," she explained. This perspective aligns with broader trends in fashion, where consumers are increasingly fatigued by fast fashion and are turning to second-hand clothing options.

The challenges facing lab-grown diamonds extend beyond consumer preferences; they also include market forces and industry standards. According to Dr. Josephine Wang, a leading gemologist at the International Gemological Institute (IGI), the perception of artificial diamonds as inferior to natural stones is deeply ingrained in consumer psychology. "People tend to value authenticity over artificiality, which impacts resale potential," she noted in her 2023 research published in the International Journal of Gemology.

As the market evolves, auction houses like Adam's are capitalizing on the shift towards pre-loved jewellery, offering consumers an opportunity to acquire quality pieces at competitive prices. For those considering purchasing at auction, Dr. Healy recommends researching the market and exploring different styles and eras to understand what constitutes a good investment.

Looking ahead, the diamond industry may need to adapt to these changing consumer preferences. As more buyers seek unique, authentic pieces, the resale value of both lab-grown and natural diamonds may continue to diverge, impacting future market dynamics. The ongoing conversation around sustainability, authenticity, and value will likely shape the future landscape of the jewellery market, as consumers prioritize quality and history over mere aesthetics.