Lab-grown diamonds are surging in popularity in Australia, especially among younger consumers, but experts warn they have virtually no resale value. The Jewellers Association of Australia (JAA) told the ABC that synthetic diamonds, while chemically identical to natural ones, offer negligible intrinsic worth if sold later, such as after a marriage breakdown. In such cases, only the precious metal retains value.
Despite this, lab-grown diamonds are 30-70% cheaper per carat than natural stones, and prices are expected to drop further as production capacity increases. The JAA emphasized that synthetic diamonds should not be considered investment stones and must be clearly marketed as such.
Millennials and Gen Z are driving the shift, valuing sustainability, transparency, and digital fluency. Marty Hurwitz, co-founder of the Global Diamond Trade Organisation, estimates lab-grown diamonds currently hold 50-60% of the Australian retail market share, potentially reaching 70% by the end of 2026.
Synthetic diamonds are created via high-pressure, high-temperature (HPHT) or chemical vapour deposition (CVD) methods, offering consistent quality. However, trained gemologists can still detect subtle differences from natural diamonds, which are 1-3 billion years old and formed deep underground.
Natural diamond mining supports employment in developing nations, and the industry has worked to reduce trade in conflict diamonds. Some jewellers, like Justin Linney of Linneys, criticize lab-grown retailers for causing market confusion with misleading information.
