Demand for synthetic diamonds has been growing although most women still prefer natural diamonds on their jewelleries.
De Beers said that the majority of consumers told the group during an extensive independent research that they wanted the real thing and were not prepared to settle for anything less.
This in a way contradicted a research carried out two years ago, which claimed that the number of women that preferred natural diamonds had dropped to 52 percent compared to 96 percent of women who fancied the same stones 10 years earlier.
The reason given for the shift was that some consumers did not want to promote the selling of the so-called blood diamonds.
De Beers noted that despite its findings it sees an exciting potential for synthetics in industrial applications.
Element Six, which is part of De Beers also said that the recent acquisition of a cutting tool firm, MegaDiamond strengthened their position as a global leader of advanced abrasive supermaterials for automotive and aerospace cutting tool applications.
Below is the full text of combined interviews our African Bureau Editor-In-Chief Mathew Nyaungwa had with De Beers group head of media relations Lynette Gould and Element Six’s group marketing manager Andrew Basham.
What is the state of synthetic gem diamond production?
To confirm, Element Six manufactures synthetic diamond for industrial use only and has no intention to participate in any gem synthetics business. We are therefore unable to comment on the question asked.
Element Six recently purchased a cutting tool firm, MegaDiamond. What sort of impact will this have on your operations?
The acquisition strengthens Element Six’s position as a global leader of advanced abrasive supermaterials for automotive and aerospace cutting tool applications.
The acquisition enables Element Six to continue to meet the growing demand for more advanced precision tooling and materials, by expanding our capabilities and product portfolio through proprietary aerospace and automotive application-ready products and technology.
In carat terms, what was your level of production this year compared to 2011?
We are a global leader in the design, development and production of synthetic diamond supermaterials for industry and this is where we are solely focused. We are unable to provide information relating to Element Six production.
A Bain & Company report noted that American consumers have mixed feelings about synthetic diamonds, with most associating them with the words "fake" and "cheap. What is your take on this conclusion?
Extensive independent consumer research conducted on behalf of De Beers showed that 94% of women believe they are worth a diamond. Women may buy synthetics as costume jewellery as they do with simulants like cubic zirconia, but our research shows that they certainly wouldn't consider them for the important occasions in life - it's at those times that only they want the real thing.
What do say about reports of manufactures that tried to mix synthetics with natural diamonds early last year? Is that not tarnishing the industry?
Earlier this year [2012], there were recently a number of instances of undisclosed submissions of CVD synthetics presented to grading labs in Belgium, India and China. These synthetics were identified as such by labs using De Beers' detection technology, and this activity has been brought to the attention of the authorities.
Trading in misrepresented or undisclosed products, whether inadvertently or not, could cause irreparable damage to retailer and consumer confidence. Grading labs equipped with De Beers' technology have the ability to detect synthetics. These recent events emphasise the importance of having access to methods for detecting synthetics and only buying from sources that can be trusted. The trade must be vigilant in insisting on proper disclosure and detection.
Do you think that greater consumer interest in synthetic gem-quality diamonds could negatively affect the market for natural stones?
In terms of the jewellery market, there has always been a market for costume jewellery and, in time, synthetics may perhaps become a part of that. But the majority of consumers have told us during extensive independent research that they want the real thing and aren't prepared to settle for anything less. The desire for diamonds has never been stronger and we are confident that the demand for diamonds, with their unique natural beauty, will only continue to increase. However, we believe that there is very exciting potential for synthetics in industrial applications.
What is your projection of the synthetic gem diamond industry, in the mid to long term?
We are unable to answer this question as we are solely focused on the design, development and production of synthetic diamond supermaterials for industrial applications only.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
