The diamond industry experienced a significant shift in 2018. De Beers, the world’s largest diamond company, embraced the production of synthetic diamonds after resisting for over a century.
This move was not merely a diversification strategy but a proactive measure to maintain the positive market perception of natural stones. In this article, we delve into the nuances of artificial diamonds, their impact on the market, and why WIC Europe takes a unique approach to real diamonds.
De Beers, acknowledging advancements in technology, initiated the production of synthetic diamonds, aiming to produce high-quality gems in large quantities. Beyond product diversification, this strategic move differentiates mass-produced stones from genuine masterpieces, preserving the allure of natural diamonds.
A synthetic diamond (left) and a natural diamond (right) can appear identical to the naked eye.
Real threat? Just an illusion
The entry of De Beers into the synthetic diamond market brought about a notable change in pricing dynamics. Lab-grown diamonds from De Beers’ Lightbox brand are now available at a fraction of the cost of existing synthetic stones and only one-tenth of the price of natural gems. This significant price difference reinforces the emphasis on quality, as De Beers allows buyers to reject lower-quality stones, establishing a clear distinction between genuine and reproduced diamonds.
Market Statistics and Future Projections
Despite the buzz around lab-grown diamonds, they constitute only about 2% of the global diamond supply, with a projected increase to 10% by 2030. With overall diamond production at 142 million carats annually, the synthetic category’s impact remains relatively small. The market demand, valued at $82 billion globally, is driven significantly by the US.
Distinguishing Between Natural and Artificial Diamonds
Natural diamonds form deep within the earth over millions of years, showcasing unique imperfections that affect their color and composition. On the other hand, artificial diamonds, produced through a meticulous process, also carry distinct characteristics. Differences in fluorescence under ultraviolet light provide a means to distinguish between natural and synthetic gemstones.
The Growing Synthetic Diamond Industry
Investments pouring into synthetic diamond production, including De Beers’ $94 million investment in its US factory, highlight the industry’s potential growth. Celebrities like Leonardo DiCaprio contribute to the promotion of lab-grown diamonds as ethical and “low-carbon,” although such claims face disputes from the natural diamond sector.
WIC Europe Investment Group Approach
Amidst the evolving diamond market, WIC Europe takes a distinctive approach by focusing on real diamonds rather than synthetic alternatives. By working with rare and limited natural gemstones, WIC Europe aims to provide investors with a stable asset base, resistant to overproduction and market volatility.
Conclusion
As the diamond industry witnesses the coexistence of natural and artificial gems, WIC Europe stands out by prioritizing the stability and authenticity of real diamonds. This strategic approach aligns with the timeless allure of diamonds, ensuring a secure and valuable investment for WIC Europe investment holders.
