In 2019, the world’s eight largest diamond producers are joining forces in the fight against synthetic gemstones by investing a substantial €60 million. The goal is to showcase the unparalleled and authentic qualities of natural diamonds amidst the growing popularity of synthetic alternatives in the jewelry industry. This initiative was born out of the formation of the Diamond Producers Association (DPA) in 2015 by industry giants such as De Beers, Alrosa, and Rio Tinto.
According to Jean-Marc Lieberherr, President of the DPA, there is a need to highlight the natural origins of diamonds and challenge the stereotypes associated with them, especially among younger consumers. The association allocated €60 million in 2018 towards advertising and educational campaigns, with plans to match that investment in 2019. The concern lies in the saturation of the market with synthetic diamonds, potentially diluting the allure and significance of natural diamonds, particularly with the millennial demographic.
Although synthetic diamonds possess identical physical and chemical properties to natural diamonds and have been utilized in industrial settings for decades, their emergence in the jewelry sector is relatively recent. Despite their quality, distinguishing between natural and synthetic diamonds can be challenging to the untrained eye. With synthetic diamonds producing 3-4 million carats annually compared to 150 million carats of natural diamonds, the mass production of synthetic stones is a stark contrast to the geological formation of natural diamonds, which can take billions of years.
The DPA argues that the environmental impact of diamond mining is closely monitored, with mining sites covering only a small fraction of the surface area of Manhattan and avoiding the use of harmful chemicals. Furthermore, the pricing disparity between synthetic and natural diamonds is significant, with synthetic diamonds priced at $800 per carat compared to natural diamonds at $7,000 per carat. Additionally, the carbon footprint of natural diamonds is considerably lower than certain synthetic alternatives.
As natural diamond production faces challenges such as depleting mines and a lack of significant new discoveries in recent years, synthetic diamonds may capitalize on this market shift. The efforts of the DPA to emphasize the unique characteristics of natural diamonds in light of the rise of synthetic alternatives play a pivotal role in preserving the allure and desirability of these precious gemstones in the marketplace.
For more information on natural diamonds and the efforts to differentiate them from synthetic counterparts, visit Diamond Producers Association and De Beers Group.
