De Beers Ventures Into the Synthetic Diamond Market

De Beers, the world’s largest diamond miner and retailer, is diving into synthetic stones, or lab-grown diamonds. The company has built a facility near Portland, Oregon, to mass-produce them and will market them through a subsidiary called Lightbox Jewelry.

It’s an incredibly awkward move for the company that has spent 80 years convincing people that a diamond is forever. They can no longer ignore the emergence of far cheaper, lab-grown diamonds that look so close to the real thing you need a spectrometer to tell them apart.

Price

In 2018, De Beers, the world’s largest diamond miner and marketer, entered into the growing lab-grown diamond industry by launching a new line of man-made stones. These diamonds are being marketed under a brand called Lightbox and are sold exclusively in fashion jewelry. They are being positioned as lower-tier jewels, suitable for more casual celebrations or younger women.

Unlike natural diamonds, man-made stones are created using synthetic methods, which reportedly are less environmentally harmful and less costly to make than mining for them in the first place. They are also more durable and are a better option for those concerned about the environment, as they can be recycled.

These diamonds can also be GIA certified, which helps add value to them. This type of certification can increase the price of a stone because it can be more recognizable and more likely to sell as an investment, whereas a diamond without such a certificate has a lower resale value.

According to industry analyst Paul Zimnisky, the price of a natural diamond is based on supply and demand. This is true whether the stone is made from industrially mined diamonds or from aboveground rough.

The average retail price of a one-carat natural diamond in the US is $1,500; however, the average retail price of a one-carat lab-grown diamond is half that at $200. That’s because a single synthetic diamond can be manufactured with a fraction of the energy that it would take to extract it from the ground.

It is not surprising, therefore, that many consumers are now opting for lab-grown diamonds over natural ones because of their cost advantages and eco-friendliness. Those benefits have caused the price of these synthetic gems to plummet.

For the most part, the price of a lab-grown diamond will continue to plummet as more manufacturers enter the market and production techniques improve. As long as there is no limit to the amount of synthetic diamonds that can be produced and the economy continues to thrive, they will continue to be a popular choice for many consumers.

As a result, we’ve seen the average discount on a one-carat lab-grown Diamond over a similar-sized natural diamond skyrocket since 2018. We can expect this trend to continue for at least another year.

Color

De Beers, the world’s largest diamond producer and maker of the ‘A diamond is forever’ campaign, has made an unprecedented move into the synthetic space. They are now bringing lab-grown diamonds into their retail stores, as well as a line of jewelry designed with them in mind.

This move, if successful, could have a devastating impact on the diamond industry and the iconic symbol of engagement rings. Using a “disrupt yourself before you are disrupted” strategy, the company is positioning lab-grown diamonds as downmarket baubles that are appropriate for a Sweet 16, while also positioning natural diamonds as the stone of choice for larger milestones like an engagement or anniversary.

While some lab-grown diamonds will appear colorless, others will have slight differences in their appearance. These variations are due to the way they were grown and the technology used to create them.

Most lab-grown diamonds will display light blue or pink coloration. However, some lab-grown diamonds can also display red and brown hues. These are referred to as “graining” and are not a flaw or defect in the diamond, but rather a characteristic that can increase its color intensity.

In addition to graining, some lab-grown diamonds may contain imperfections that can affect their appearance, and these are referred to as “defects” or “color-causing irregularities.” These imperfections can result in a diamond’s ability to reflect light, which can change its color.

These imperfections are caused by a range of factors including minute particles of non-diamond materials in the crystal lattice, atoms that can replace carbon atoms and small deformations. While these defects may affect the durability of the diamond, they are a relatively minor concern in most instances.

One important factor to consider when purchasing a lab-grown diamond is that it cannot be certified as a natural diamond by a gemological laboratory. While this is not a legal requirement, it is an important safeguard to ensure that you are buying a genuine, authentic diamond.

The first lab-grown diamonds appeared in the 1970s and were created by companies such as GE, Sumitomo Electric, and De Beers using HPHT and Chemical Vapor Deposition (CVD) methods to produce tiny diamonds. These diamonds are commonly used in heat sinks for electronics and as a coating for diamonds, but they can also be used to create colored gemstones.

Clarity

The clarity of a diamond refers to its internal features, called inclusions. These include traces of minerals, uncrystallised carbon or other material that may not be visible to the naked eye. While no natural diamond is completely clear, the inclusions in De Beers white stones are up to Grade SI2 only, so they are very difficult to see and don’t detract from the beauty of your diamond.

Lab-grown diamonds are created through a process known as CVD, which is similar to the one that creates natural diamonds. Often, this can lead to a more uniform appearance than a diamond grown in nature, although it’s important to remember that natural and lab-grown diamonds have different characteristics.

During this process, tiny imperfections and inclusions can be formed and, because of their size, they can only be seen with a microscope. When a diamond is polished to its highest grade, these imperfections are usually invisible to the naked eye.

A VVS2 diamond, for example, can have a pinpoint in a bezel facet and a tiny feather in the star facet. However, these would only reduce the diamond’s clarity to VS2 under a microscope.

For this reason, it is important to have a professional examine the diamond before you purchase it. If you can’t afford to hire a gemologist, there are many online resources that can provide advice on what you should look for in terms of clarity.

Another thing to consider is how big the stone is. Smaller stones have fewer inclusions and are more likely to appear colorless, while larger ones can have more visible spots and blemishes.

Inclusions can also vary in size and location. Generally, they’re not grouped together and can vary in depth, from the center of the stone to the edge. In addition, crystals and specks in the cavity can sometimes appear colorless.

When choosing a diamond, it’s also important to take into account its cut. This is because it will determine the luster and brilliance of the diamond. The best cuts will make the diamond sparkle more intensely and more evenly.

Size

De Beers is betting big that the demand for lab-grown diamonds will outpace mined stones. The company is investing $94 million in a new synthetic diamond plant near Portland, Oregon, to produce about 200,000 carats of these stones a year.

The lab-grown diamonds are being marketed under the brand Lightbox and sold on the company’s website and through brick-and-mortar jewelry stores, including those in California and New York City. The diamonds are being sold for $800 a carat.

This is a much lower price than some other lab-grown diamond sellers are charging. For example, Brilliant Earth sells a 1.5-carat stone for $1,500.

While the prices of lab-grown diamonds have dropped in recent months, they’re still a lot more expensive than mined ones. A 1-carat mined diamond can cost more than $3,500, while a comparable lab-grown gem might be priced at around $8,000.

The reason for this is that the diamond industry is not without its environmental and ethical problems. It’s been shown that mining can damage habitats in Canada and other countries and place highly endangered tigers under threat, among many other negative impacts.

Despite this, younger buyers are increasingly interested in synthetic diamonds. They’re looking for stunning looks at lower prices, and they’re often concerned about the environmental and social costs of mining, says National Jeweler.

However, while the demand for these lab-grown diamonds is growing, the supply is also expanding. As a result, the lab-grown market is becoming more competitive.

In fact, the competition has caused the prices of lab-grown diamonds to fall in recent months. In July, a high-grade one-carat lab-grown diamond was selling for an average of $3,557, compared with an average of $8,900 for a comparable mined diamond.

These declines are attributed to increased competition in the lab-grown diamond market and the rising awareness of the environment and ethics of mined diamonds, says jewelry research firm Tenoris.

The demand for lab-grown diamonds is primarily driven by young people who are saving money to purchase their first homes. They are concerned about the impact of mining on the environment and don’t want to pay a high price for their first diamond, writes Tanya Nisgurestsky in a blog post for National Jeweler.

De Beers Ventures Into the Synthetic Diamond Market