Synthetic diamonds are not new. They have been around for decades, but the technology behind it has evolved strongly in recent years. This also means that the quality is getting higher. Is synthetic diamond is therefore a threat to the diamond industry? Not so much, apparently.
The production of synthetic diamond is less than one percent of the global production of natural diamonds today. About 95 percent of those artificial diamonds are used for high-tech applications such as industrial drilling, laser displays and X-ray machines. Most of those fake diamonds are made in China, USA, Japan and South Africa.
Because of the expensive production prices of synthetic diamonds, prices are only 30% lower than the real thing. The profit margins in the industrial sector, moreover, are almost as high as in the regular diamond industry. Therefore, manufacturers have little reason to shift their market.
The regular diamond industry is not blind to the benefits of synthetic diamond. The hardness of it can now, for example, be tailored to specific needs. Because they are ideal for industrial applications, they are not seen as a threat per se. Even diamond giant De Beers is a shareholder of several companies in the synthetic diamond industry.
Does the consumer prefer synthetic diamonds?
But what do consumers think? Synthetic diamonds are indeed cheaper and unable to be to be distinguished from the real diamonds with the naked eye. However, research suggests that the vast majority will continue to opt for the authentic product.
A synthetic diamond, which was produced in a lab or factory, does not have the charm as a natural diamond. Due to increased transparency in the ordinary diamond sector, is the risk of fraud brought to a minimal level.
Diamond: two separate worlds
In short, synthetic diamond and genuine diamonds can perfectly coexist. The consumer chooses indeed consistent for the authentic product and not for imitation. Moreover, there are plenty of profitable uses for the production of synthetic diamond, so that both sectors do not have to interfere each other's business.