The 5C’s – Cost

Diamonds as a Financial Lifeline #

In the mid-20th century, diamonds gained a reputation as “portable wealth.” For women – particularly housewives who didn’t have careers or their own financial independence – a diamond wasn’t just a pretty trinket; it was a safeguard. The idea was simple: if their marriage fell apart or a financial emergency arose, they could sell their diamond jewelry to secure their future.

This narrative, championed by clever marketing campaigns (yes, we’re looking at you, De Beers), made diamonds seem like the ultimate financial safety net. But times have changed: women now have more equal rights (though still not enough!), greater financial independence, and the notion of stashing diamonds for a rainy day is about as outdated as shoulder pads and misogyny.

Diamonds Aren’t as Rare (or Valuable) as You Think #

Here’s something you might not know: the value of diamonds has been steadily dropping. Once tightly controlled by monopolies like De Beers, the market has diversified and prices are no longer artificially inflated to the same degree. Couple that with the rising popularity of lab-grown diamonds, and the resale value of mined diamonds has taken a huge hit.

This means that buying a diamond today is a bit like buying a car. The moment you drive it off the forecourt – or, in this case, walk out of the jeweller’s – it loses value. A new diamond can lose up to 80% of its price as soon as it’s purchased: retail prices are marked up significantly, often by 100–300%, to account for branding, marketing, and overhead costs.

The Investment Breakdown #

Let’s talk actual numbers…

Say you’re deciding between a 2-carat mined diamond ring (£15,000) and a 2-carat lab grown diamond ring (£3,000). The difference in purchase price would be £12,000.

If you were to see this purchase as an investment, and go to sell your ring at a later date, you’d be looking at very slim profit margins: depending on where you sold your mined diamond you can expect to recoup 20-30% of the purchase value, and this figure for the lab diamond ring would be around 10-20%.

So while both options depreciate, the lab-grown diamond leaves you significantly less out of pocket.

Losing £2,500 on a £3,000 ring stings far less than watching £12,000 evaporate from your £15,000 investment.

Diamonds as Investments #

• Limited Resale Market: Unlike gold or stocks, diamonds don’t have a thriving secondary market. Resale buyers – whether individuals or jewellers – will pay a fraction of the retail price. And do you really want to shill what was once a treasured possession on Facebook Marketplace?If you’re looking to invest in a pretty yet appreciating asset, you’d literally be better placed buying a Chanel or Hermès handbag.
• Non-Liquid Asset: Diamonds aren’t easy to sell quickly, and finding a buyer can be a time-consuming process. If you want to shift it fast you’d need to look at an online marketplace like eBay, where you’ll potentially be shaving even more off its price.
• Fluctuating Demand: Shifts in fashion, technology, and consumer preferences can affect demand and, ultimately, resale value. It took over 25 years for the 90s favourite marquis to come back into style, so your five year old engagement ring may not be desirable for another 20 years.

Should You Buy Diamonds as an Investment? #

If you’re considering gifting or buying a diamond purely for its investment potential, ask yourself: is this the right choice? Diamonds are not a financial strategy – they’re an emotional purchase. Their real value lies in what they represent: love, power, celebration, and sentimentality.

For those wanting an heirloom or a gift that holds personal meaning, diamonds are a timeless option. But for investment purposes? There are better places to put your money, like stocks, property, rare whisky (yes, really) and, like we said, Chanel.

Our Take #

We believe diamonds should be about love – for yourself, or someone else – not financial leverage. While lab grown diamonds may not be a strong financial investment, they are an investment in modern values: sustainability, ethics, and individuality. Plus, they’re kinder on your wallet, leaving more room for travel or actual investments – or that anniversary upgrade in five year’s time!