Are Diamonds Actually a Good Investment?

There are many myths about diamonds, specifically regarding engagement rings, which we are sure you would have heard about. The idea that you must spend two or three months’ salary on an engagement ring or that you have to have a mined diamond are great examples of marketing rather than fact.

A question that our customers in our Newquay boutique often ask us is: “are diamonds a good investment?” Like the others, this question is usually rooted in a myth.

Looking back from 2026, we can see that diamonds, of any type or origin, are rarely a financial investment unless you have the means to purchase a huge or fabulously coloured rare stone. That is essentially the only circumstance under which you could sell a diamond for more than you paid for it. We are going to look at why the resale value of diamond jewellery is usually a lot less than the purchase price and break down the differences between mined and lab grown diamonds.

Value vs Price

The key thing to remember throughout this whole conversation is that the value of a piece of jewellery is often wildly different to its price. Your engagement ring has a high value for you because of what it signifies: the lasting love between you and your partner and that promise of forever.

Another factor to bear in mind is that the cost of an item of jewellery is more than just the gemstones and metal. If you visit us in Cornwall and ask for a bespoke design, the cost includes the stones and metal but also the skill and time of the designer. Fine jewellery designed to your specifications is a desirable item and the cost reflects that craftsmanship.

Mined Diamonds and Pricing

Mined diamonds are priced according to the 4 Cs which are Clarity, Colour, Carat and Cut. The industry determines this according to the Rapaport pricing method which gives a price per carat for different grades.

The diamond industry keeps a very tight grip on these reports which are updated weekly. Part of the reason for this is that prices have been carefully manipulated for decades to benefit producers. The true cost of a diamond often bears little relation to these reports which are shifted to maintain an image of scarcity in the market.

Source: Queensmith.co.uk
Image Credit: Your Diamond Teacher

Mined Diamonds and Resale Value

The value of a diamond is much like the value of a brand new car. It drops as soon as you have walked out of the shop. This is partly down to the markup applied by jewellers to cover the costs of maintaining premises, but it is also because a jeweller can purchase diamonds in bulk for less than a second hand stone.

A collection of ring samples from a meeting in our Truro showroom.

There are four prices commonly attached to diamonds:

• Cost price: What the jeweller pays.

• Purchase price: What the customer pays, often including a significant markup to cover retail operations.

• Appraisal price: An inflated price given on a certificate for insurance purposes.

• Resale price: Often only 25% to 30% of the original purchase price.
  
  

Historical Resale Value

Even for older diamonds, there is rarely a huge increase in price in real terms. While diamond prices rose significantly between 1960 and 2016, inflation during that time accounted for most of that growth.

There is a growing enthusiasm for Victorian and Art Deco jewellery in recent years. These items are desirable because of their age, style, and historical provenance rather than the intrinsic value of the diamond itself. Many people visiting our Newquay store are requesting vintage inspired designs and we love exploring those heritage styles with you.

Some of our vintage inspired rings;

Lab Grown Diamonds

Lab grown diamonds are formed in a laboratory rather than dug from the ground. Since we first wrote about this in early 2024, technology has continued to advance. The purchase price has traditionally been tied to the Rap Report, but it is usually significantly lower than mined equivalents.

The resale value of a lab grown diamond is often debated, but Ethica Diamonds is proud to offer stones that are chemically identical to mined diamonds without the environmental and human rights issues attached. We only partner with ethical growers using renewable energy to ensure your purchase aligns with your values.

The Ethica Diamond

The Ethica Diamond, our signature gemstone, is a credible and more budget friendly choice for the customer with an environmental conscience. It has always been priced according to research and manufacturing costs rather than being tied to the manipulated diamond market. You pay for the genuine cost of the item including the design work.

We understand why people ask about resale value. It is hard to unlearn myths that have been told for generations. However, the point of an engagement ring is to signify your promise as a couple. It should be given from the heart rather than viewed as a financial commodity.

Visit us in Cornwall

If you are looking for an engagement ring that represents your values without the inflated "investment" myths, come and see us. Our boutique in Newquay, Cornwall, is the perfect place to explore ethical alternatives in a relaxed, coastal setting.

Whether you are looking for a bespoke build or one of our signature collections, we can help you find a piece that is worth everything to you, regardless of the market price. Come and chat with our team in Newquay or browse our collections online to start your journey.