Two Sides of Sparkle: Natural Diamond & Synthetic Diamond

Photo: De Beers, Lupita Nyong’o

Diamonds are known as rare and precious stones that people have admired for thousands of years. The demand and value of these unique stones is historically high. But in recent years, the diamond industry has faced many challenges. The initially bright period during the pandemic began with consumers staying at home turning to luxury shopping. But when the economy changed again, demand diminished rapidly; The industry faced excess inventories and other challenges.

During this period, De Beers, as a major player in the diamond industry, took important steps to address the industry’s challenges. In its first sale of the year, it tried to attract consumers’ attention by reducing prices generally by about 10 percent and by offering discounts of up to 25 percent on some large stones. However, the challenges De Beers faced were not limited to pricing alone.

While the popularity of synthetic diamonds increased, the prices of natural diamonds also decreased. Synthetic diamonds can be produced quickly and at more competitive prices and are preferred among consumers. Another factor affecting the diamond industry is supply. Natural diamonds are becoming more difficult to extract from mines over time, which means there may be a supply shortage in the future. Last year, 120 million carats of rough diamonds were mined worldwide, but that number is expected to decrease over time as mines close.

On the one hand, natural diamonds, which were sent to the surface by a volcano hundreds of millions of years ago, formed under extreme pressure in the earth’s core and then mined by miners. On the other hand, synthetic diamonds, which can be produced in a few days and are almost impossible to tell the difference to the untrained eye…

It is very challenging for a consumer to have a diamond on their finger or ear that they cannot tell the difference to the naked eye or even to an expert eye. This is what the industry is facing…

These measures taken by De Beers play an important role in determining the future of the diamond industry. But the industry requires further innovation and transformation to adapt to new realities and maintain its value. Let’s see what we will witness in the journey of restoring the shine of diamonds.

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