Diamond Jewelry Market, a contest between technology and romance

Artificially produced diamonds appeared as early as the 1950s. However, until recently, the manufacturing costs of cultivating diamonds began to be significantly lower than the cost of mining diamonds.

The latest scientific and technological advances have greatly reduced the manufacturing costs of laboratory-produced diamonds. In general, the cost of cultivating diamonds is 30% to 40% lower than the cost of mining diamonds. This contest, who will become the final winner? Is it the mining diamond that is naturally formed under the ground, or is it the cultivation of diamonds created by technology?

The laboratory cultivating diamonds and mining diamonds have the same physical, chemical, and optical components and look exactly the same as mining diamonds. In extremely high temperature and high pressure environments, labs develop diamonds to imitate the steps of mining diamonds, growing from tiny diamond seeds into larger diamonds. It takes only a few weeks to develop a diamond in the laboratory. Although the time for mining diamonds is almost the same, the time it took to form underground diamonds dates back hundreds of millions of years.

The cultivation of diamonds is still in its infancy in the gemstone trading market.

According to reports by Morgan Stanley Investment Company, the rough sales of laboratory-developed diamonds ranged from 75 million to 220 million U.S. dollars, which is only 1% of the global sales of diamond roughs. However, by 2020, Morgan Stanley expects that laboratory-produced diamond sales will account for 15% of the market for small diamonds (0.18 or less) and 7.5% for large diamonds (0.18-carats and above).

The production of cultivated diamonds is also very small at present. According to data from Frost & Sullivan Consulting, the production of diamonds in 2014 was only 360,000 carats, while the output of mined diamonds was 126 million carats. The consulting firm expects that consumer demand for more cost-effective gems will boost the production of diamonds raised to 20 million in 2018, and by 2026 it will increase to 20 million carats.

CARAXY Diamond Technology is the pioneer in the domestic market for cultivating diamonds and is also the first member of the IGDA (International Association for the Cultivation of Diamonds) to conduct business in China. Mr. Guo Sheng, CEO of the company, is optimistic about the future market development of diamond cultivation.

Since the start of business in 2015, CARAXY’s laboratory-produced diamond sales have tripled in annual sales.

CARAXY can cultivate white diamonds, yellow diamonds, blue diamonds and pink diamonds. At present, CARAXY is trying to cultivate the green and purple diamonds. Most of the lab-grown diamonds in the Chinese market are less than 0.1 carat, but CARAXY sells diamonds that can reach 5 carats of white, yellow, blue and 2-carat diamonds.

Guo Sheng believes that breakthroughs in technology can break the limits of diamond size and color, while reducing the cost of diamond cutting, so that more consumers can experience the charm of diamonds.

The competition between romance and technology has become increasingly intense. Sellers of artificial gemstones continue to complain to consumers that the exploitation of diamonds has caused tremendous damage to the environment, as well as the ethical issues involved in “blood diamonds.”

Diamond Foundry, a start-up diamond company in the United States, claims its products are “as reliable as your values.” Leonardo DiCaprio (Little Plum), who starred in the 2006 movie Blood Diamonds, was one of the investors in the company.

In 2015, the world’s seven largest diamond mining companies established DPA (Association of Diamond Manufacturers). In 2016, they launched a campaign called “Real is rare. Rare is a diamond.”

Mining diamond giant De Beers accounts for one-third of global sales, and the giant is pessimistic about synthetic diamonds. Jonathan Kendall, chairman of De Beers International Diamond Grading and Research Institute, said: “We conducted extensive consumer research around the world and did not find that consumers demand synthetic diamonds. They wanted natural diamonds. .”

 ”If I give you a synthetic diamond and say ‘I love you’ to you, you will not be touched. Synthetic diamonds are cheap, annoying, unable to convey any emotions, and simply cannot express that I love you.” Kendall added Road.

Nicolas Bos, chairman and CEO of French jeweller Van Cleef & Arpels, said that the production of Van Cleef & Arpels will never use synthetic diamonds. Nicolas Bos said that Van Cleef & Arpels’s tradition is to use only natural mining gems, and that the “precious” values advocated by the consumer groups are not what the laboratory cultivates diamonds.

Anonymous banker of an overseas investment bank in charge of corporate mergers and acquisitions said in an interview with China Daily that with the continuous change of people’s consumption concepts and the gradual loss of “diamond’s long-lasting” charm, artificially cultivated diamonds The market share will continue to rise. Because artificially cultivated diamonds and natural mined diamonds are exactly the same in appearance, consumers are attracted by the more affordable prices of cultivated diamonds.

However, the banker believes that the exploitation of diamonds may be more suitable for investment, because the decreasing mining diamonds will cause their prices to rise continuously. Large-carat diamonds and high-grade scarce diamonds are becoming the hearts of wealthy people and have great investment value. He believes that laboratory cultivation of diamonds is more of a supplement to the mass consumer market.

Research estimates that the output of mined diamonds will peak in 2018 or 2019, after which production will gradually decline.

Kendall claims that De Beers’ diamond supply can also support “a few decades”, and that it is very difficult to find a new large diamond mine.

Guo Sheng believes that because of the emotional appeal of consumers, the wedding ring market is challenging for laboratories to cultivate diamonds, but as the daily wear of jewelry and jewelry gifts, the sales of laboratory-produced diamonds have grown rapidly.

If artificial gemstones are sold by natural elements in natural gemstones, the rising market heat of artificial gemstones is also a potential threat to consumers.

De Beers invested a lot of money in diamond inspection technology. Its latest small diamond inspection tool, AMS2, will be available this June. The predecessor of AMS2 was unable to detect diamonds less than 0.01 carat, and AMS2 made it possible to detect diamonds as small as approximately 0.003 carats.

In order to distinguish from mining diamonds, CARAXY’s products are all labeled as laboratory-grown. Both Kendall and Guo Sheng believe that it is important to protect and enhance consumer confidence in the market so that jewelry buyers know what kind of diamonds they are buying at great cost.

Post time: Jul-02-2018