As soon as I was able to publish "turning point 1", it was reported that a high-quality 10-carat diamond was produced by the Russian company New Diamond Technology, which claims that they have a much more efficient process. They claim that it took them 300 hours to create this stone, which was cut from a piece of much larger raw material weighing more than 30 carats. Let's figure it out, 300 hours - it's 12.5 days per stone weighing 10 carats. Despite the fact that this was done to promote conventional production, most diamond mining companies would gladly like to receive a ready-made high-quality 10-carat gem every 10 days.
Then I read about the fact that clubs Helzberg and Sam, each of which deals with several different market segments, both offer large diamonds of pink, yellow and white in cost in thousands [dollars].
So, the first turning point, maybe, is already coming - sooner than I thought.
There are several good reasons for moving to synthetic diamonds, except for the difference in price. The main producers of natural diamonds - De Beers, ALROSA, Rio Tinto and others - know that the end is coming. Therefore, they have three important motivations. Sell as much as possible, as quickly as possible and at the highest price, because the rules of the game can dramatically change. Hence the support of the work on marketing (I see that the slogan "Brilliant is forever" is launched again), discrediting statements about those diamonds that were created not for millions of years (only 300 hours) and squeezing every dime from sightholders. Martin Rapaport at his actively attended annual breakfast at the JCK Show in Las Vegas said that the producers of raw materials need to ensure that the entire production and distribution chain, Right up to the consumer, was protected. It does not look like they think about it. Their prospects are too short.
All this has caused a negative effect of diamond overflow in diamonds (Rapaport claims that its RapNet contains over one million stones), which destroys profits for cutters and keeps bankers from running such a business with low margins). But manufacturers have few options. They can not actually cut production in an attempt to create a deficit, because they can never agree on this (even OREC can not) and because they may not achieve the desired effect! Recycled diamonds and synthetic diamonds can fill the gap at a lower price, thereby further undermining the business of diamond producers.
Therefore, we will see that the price increase will continue, unplanned special deals and the size of sites will be concluded and prices will be reduced only at the last moment, when sightholders will be outraged.
This can not be called a normal commercial business. In any other kind of goods, when demand is low, prices are falling and mining is curtailing. The buyer's needs are the driving force of production volumes and prices.
The invention of synthetic diamonds created other dangers for diamond producers. De Beers has done a great job of creating the image of diamonds as a rare, expensive gift from Mother Earth. The idea that diamonds are made as a trinket is a frightening prospect, especially when faced not with cheap diamonds with flaws, but with cheap diamonds of the highest quality. This factor can negate the effectiveness of many mines that produce mostly low-quality diamonds.
All this is the reason why all manufacturers today are racing ahead on all pairs.
Under these conditions, there is an irresistible temptation to switch to synthetic diamonds (and get rid of, perhaps, from sites), and this transition is imminent. The main aspect faced by diamond manufacturers is productivity. Ensuring the loading of the factory by work is important, so we faced with such an amount of transition to alternative materials and stones. And volume is much more important to them than the movement of diamonds. The consumer buys the finished jewelry. Diamonds can be an important component, but it is a component.
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