De Beers once popularized the slogan, “A Diamond is Forever”, which reflects the nature of diamonds. These gems are formed deep inside the Earth’s mantle under conditions of extremely high temperature, about 1400 degrees Celsius, and immense pressure of approximately 5 to 6 billion pascals. They take millions of years to form and would require millions of years more to break down, making them seem eternal.
De Beers linked diamonds with the concept of everlasting love to justify selling these small shiny crystals at extravagant prices despite their lack of intrinsic value. By controlling most of the natural diamond mines, De Beers functioned like a cartel, determining supply and prices.
In reality, diamonds do not hold inherent worth or purpose. If someone were to swallow a diamond, its sharp edges could potentially cause internal injuries. Still, the perception of rarity and romance endured for decades.
In 1954, General Electric produced the first synthetic diamonds under laboratory conditions similar to those within the Earth. This process, known as HPHT or high pressure high temperature, was initially inefficient and yielded small, hazy stones. Over time, advancements allowed for lab grown diamonds that match natural diamonds in both physical and chemical characteristics. However, the HPHT process is difficult and risky because it requires maintaining very high pressures and temperatures.
An alternative method is CVD or chemical vapor deposition. In this process, a carbon containing gas, often methane, is heated so it breaks down into carbon and hydrogen. The carbon atoms deposit onto a diamond seed. Repeating this process forms layers of diamond measuring several millimeters. CVD is now the most widely used method for producing lab grown diamonds.
Both methods have certain drawbacks:
HPHT drawbacks:
– Diamonds grow in cuboctahedron shapes in which the crystal structure expands in 15 directions and causes issues in cutting and polishing
– Diamonds have a yellowish colour due to nitrogen impurities
– Diamonds also have a blueish tint due to boron impurities
CVD drawbacks:
– Diamonds have a cubic shape
– The crystal structure expands in one direction which is not optimum for larger diamond production
– Type IIa diamonds are often produced which have a premium pricing for their natural rarity
Claims that lab grown diamonds are environmentally friendly are often more marketing than reality. Human activities generally do not show genuine care for nature since they are almost always in self-interest, and environmental friendliness is an excuse for promoting lab grown stones over mined diamonds.
Today, lab grown diamonds are essentially identical to natural ones. Even the most experienced jewelers cannot tell them apart without specialized equipment. This raises concerns because two identical looking diamonds can have a price difference of up to 90 to 95 percent, which is enough to purchase the trust and moral considerations of buyers in the market.
As more lab grown diamonds enter the market, natural diamonds are losing their perception as status symbols. Wealthy individuals who once used diamonds to display social standing are losing interest in this not-so-rare commodity. Natural diamonds, regardless of their clarity or carat, are losing value, a trend that accelerated after the COVID pandemic. In regions where jewellery is bought with trust and ready cash, declining diamond prices are reducing confidence in them as investments.
Consequently, the economics of lab grown diamonds is also uncertain. Their initial market growth depended on the prestige of natural diamonds. As trust in natural diamonds diminishes, so does faith in the lab grown variety. In recent years, several lab grown diamond units in India have closed, and some have gone bankrupt. The price of lab grown diamonds dropped from about 40 percent of the price of natural diamonds to about 10 percent, and it continues to fall.
The future looks unclear for both natural and lab grown diamonds. No matter how clear these stones appear, if wealthy consumers reject them, lab grown diamonds will also lose their appeal. The idea that diamonds, and De Beers by extension, will remain eternal is now in question.
