Currently, about a quarter of the natural diamonds circulating in the global market are sold at high prices to fund illegal armed conflicts and wars. In some regions, there are even illegal transactions where diamonds are directly exchanged for weapons of mass destruction. The bloodshed caused by such transactions far outweighs the environmental issues and child labor issues associated with natural diamond mining.
Mass-produced and low-priced synthetic diamonds are evidently unable to meet this special demand for large funds, which to some extent has slowed down the development of the synthetic diamond market. However, the development is inevitable: synthetic diamonds have low synthesis costs, are affordable, and are environmentally friendly; they also avoid the ethical issues related to trading; and they have no difference in diamond properties compared to natural diamonds. Regarding the issue of natural versus synthetic, Even-Zohar, the chairman of the Israel Diamond Consulting Company, offered his perspective: for modern young consumers, what difference does it really make to buy a diamond from "above ground" or "below ground"? Who cares about whether it comes from above or below ground?
In fact, the physical properties and chemical composition of synthetic diamonds are indistinguishable from those of natural diamonds dug out of the ground. The preparation of a synthetic diamond takes about 10 weeks, and the finished product is exquisite. To distinguish between synthetic and natural diamonds, one must rely on high-precision machine testing.
According to an industry research report released by Bloomberg, sales of lab-grown diamonds accounted for only a small portion of the global diamond sales of $80 billion in 2014; the production of lab-grown diamonds in 2014 was approximately 360,000 carats, while the production of natural diamonds reached 146 million carats.
A survey of consumers aged 18 to 35 in North America shows that nearly half of them still favor natural diamonds. However, according to industry predictions, the production of lab-grown diamonds will soar to 20 million carats by 2026. It is said that Wal Mart and Warren Buffett's Hearts on Fire Diamonds have already begun stocking up on lab-grown diamonds.
In the game of capturing the diamond market share, natural diamond producers and sellers continue to play the romantic card. They believe that only natural diamonds, which have been buried underground for billions of years, can bear the various beautiful meanings people ascribe to diamonds. Each natural diamond, which has undergone the test of time, carries a unique natural and cultural story behind it, which is incomparable to laboratory-grown diamonds. According to surveys, a 1-carat natural diamond in a jewelry store in New York, USA, is worth $10,000, while a 1-carat synthetic diamond is only worth $6,000. In comparison, the price advantage of synthetic diamonds is self-evident, and they greatly avoid the ethical controversies associated with natural diamonds. Their consumer demand will also be significant in the future.
Vishal Mehta, CEO of Singapore IIA Technology Company, said, "We are creating a new industry, gradually becoming prolific producers of synthetic diamonds. Environmentally friendly and ethically uncontroversial 'pure' diamonds are increasingly accepted by modern consumers; this is also a turning point in the development of synthetic diamonds."