Just 10 years ago, research showed that 96% of women want natural mined diamonds. A decade ago, survey reports summaries indicated that consumers thought that "synthetics do not enshrine core human values and emotions"—whatever that means. This sounds like it was written by the marketing department for a large diamond jewelry chain or perhaps DeBeers, not something that an average jewelry buyer would say. Nevertheless, semantics aside, there has been a dramatic consumer shift towards diamond alternatives.
Today's surveys have revealed that only 52% of women want the "real thing". Consumers are opting for less expensive diamond simulants, and have deep growing concerns about conflict/blood diamonds, the exploitation of child slave labor in India's diamond cutting operations. Moreover, consumers are sick and tired of the DeBeers Diamond Cartel using its monopoly position to inflate prices…they are sick and tired of being manipulated—often being sold flawed or "enhanced" stones by a jewelry store at the emotional time of a purchase, especially in the case of engagement rings.
Then there is the practical matter of money. Diamonds can cost up to $2,000,000, depending on carat weight, clarity, cut, and color. However, synthetic diamonds are available for less than 100 dollars a carat, selling retail for a diminutive fraction of the price of mined diamonds.
Take two solitaire engagement rings with identical solid gold settings, each with one 3 carat round cut center stone, one flawless synthetic and one a natural mined diamond of good but not excellent quality. The ring with the synthetic stone will retail for about $600. The ring with the natural stone will sell to the consumer for about $40,000. The difference is an astounding $39,400 in savings realized by the couple by going with a stone that cannot be distinguished without the aid of equipment. $39,400 that will be much better put to use and invested in a newly married couple's own home, an intelligent choice that will surely "enshrine core human values and emotions"!
DeBeers has been dismissive by publicly ignoring the growth of synthetic diamonds in the market place, but actions speak louder.
De Beers has, with the market penetration of cultured diamonds, set up what it calls the Gem Defensive Program. At no charge, the company is supplying gem labs with sophisticated machines designed to help distinguish man-made from mined stones. De Beers has been sending out its testing machines—named DiamondSure and DiamondView—to the gem labs. Typically, these labs analyzed and certified color, clarity, and size. Now they have to distinguish between man-made and mined. The DiamondSure machine shines light through a stone and analyses its refractory characteristics. If the gem comes up suspicious, it must be tested with the DiamondView, which uses ultraviolet light to reveal the crystal's internal structure.
Is DeBeers spending heavily on testing equipment if they were not concerned about the impact of synthetics? No. Does this really matter to a consumer with ethical issues about natural diamonds or looking to save tens-of-thousands of dollars? No.
For the time being, synthetics only threaten the way De Beers wants the consumer to think of a diamond. However, the arrival of manufactured diamonds is threatening to correct the public's perception about diamonds, and will ultimately transform the multi-billion dollar diamond industry, maybe even bankrupt it, or at the very least devalue every existing diamond on every finger.
With advanced science, companies manufacturing diamond simulants will pose a threat to diamond producing and exporting countries. If the laboratory-made diamonds continue gaining popularity, trade in the world’s most expensive gemstone will falter. Leaders in the diamond business have expressed fears that the synthetics will destroy the value and market of natural stones as the customers obviously choose a less expensive, more sensible alternative.
Robert Joseph is an expert jeweler and founding partner of http://www.diamondnexuslabs.com a renowned online jewelry store that specializes in pristine affordable diamond simulants set in Solid 14K Gold.
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