The development of treated and synthetic diamond technologies has achieved remarkable progress over the last decade or so. According to Dr Wuyi Wang, director of research and development of Gemological Institute of America (GIA), at a recent semniar on synthetic diamonds, small synthetic diamonds in brown colour were produced in 2003 by Apollo Diamond (acquired by Scio Diamond Technology in 2011); in 2006 nearly colourless synthetic diamonds of 15 to 30 points were created; in 2011 synthetic diamonds close to one carat were produced. In 2015 quite a few companies have introduced chemical vapour deposition (CVD) diamonds in the market. Nowadays high quality synthetic diamonds can be created in any colour and the largest size can reach five carats. As the cost of manufacturing synthetic diamonds is 10 to 30 times lower than that of natural ones, it is no wonder that such lab-grown stones are produced in growing quantities.
In March 2015 Diamond Federation of Hong Kong, China Limited (DFHK) launched the “Natural Diamond Quality Assurance” Mark Scheme to increase consumers’ confidence in the local diamond industry by providing quality assurance of natural diamonds. Under the scheme, a third party supervising group will conduct quality check to ensure that participants are adhering to the standards of the scheme. Lawrence Ma, chairman of DFHK believed that the impact of synthetic diamonds on Hong Kong’s diamond industry is limited for there are no retailers found selling synthetic diamonds products in Hong Kong currently. Let’s see what members of the diamond industry have said about synthetic diamonds.
Mayur M Patel from Dimexon said: “Of course it is an issue. If one or two companies start producing or selling synthetic diamonds it would create chaos even for the dealers and wholesalers. So it is a thing to worry about.”
Josh Trebish, regional director of EMA (HK) Limited thought competition between synthetic and natural diamonds is irrelevant and said: “The only thing to worry about synthetic diamonds is from a criminal point of view where people get stones switched.”
Naresh Surana of Diarough (Hong Kong) commented: “As long as they are identified, synthetic is a different product and will not be a problem. The only problem is when people are not disclosing. That is a great threat.”
“No, it will not be a threat to us,” Bryan Law of A A Rachminov Diamonds, a supplier of high-end fine diamonds, firmly answered. Comparing synthetics to counterfeit Rolex and Louis Vuitton handbags, he is confident that discerning consumers will always choose the real things.
New market possibility
Yair Shimansky, founder and CEO of Shimansky Diamonds, which solely supplies untreated diamonds, predicted the coming of a new synthetic diamond market. “Nowadays everybody cares for the environment. Being more affordable, ethical and environmentally friendly, synthetic diamonds will appeal to the iGeneration. The cheaper price also allows women to buy for themselves,” he said. From an economic perspective, the huge gap between diamonds supply and demand is where synthetics can enter. “Currently synthetic diamond producers don’t know how to market them but they will learn.” While people who do not believe synthetics will one day replace natural diamonds cite the case of ruby where the markets of the natural and synthetic stones remain separated, Shimansky shared his worries by referring to the case of pearl where the natural products have largely been displaced by the cultured ones.
Futhi Zikalala Mvelase, CEO of State Diamond Trader, Republic of South Africa, frankly expressed her concerns. “It (synthetic diamonds) will affect our business in medium to long term. If new mines or sources are not found, we could be overtaken by synthetics.” The possibility of a new market of synthetics depends on whether the consumer is forgiving. If they agree to wear synthetics, it could drive demand and consequently the supply, she explained. Responsible disclosure is key to maintaining the integrity of the natural diamond industry. Despite that it seems a voluntary practice in the meantime eventually there will be regulations when synthetics become a real threat, she said.
The need of disclosure
“Lab-grown diamonds are here to stay. It is a legitimate product as long as it is properly disclosed. It is the responsibility of everyone in the natural diamond industry to make sure his or her stock is natural,” said Joseph Kuzi, director of Diamond Services, which offers synthetic diamonds screening solutions. As most of the larger diamonds come with certifications provided by serious laboratories, the main problem of synthetics is with smaller stones below 30 points for which reports are not requested. Unsurprisingly, the development of synthetic diamonds helps promote the diamond testing business, especially for smaller stones.
GIA's Dr Wang shared one case during the seminar. His team received a pendant from a respected company for testing. Among the 104 yellow and white diamonds they found one high pressure, high temperature (HPHT) synthetic diamond of 0.004 carat. Assuming the role to enhance disclosure, GIA is closely working with synthetic diamond producers such as Gemesis, Scio and Washington Diamonds to understand their technology so that they are able to identify every treated and synthetic diamond, said Wang. (Photo courtesy: GIA)
← Back