Gareth Penny Dismisses Threat from Synthetics

The synthetic diamond and gemstone industry may be a thorn in the side of the global natural diamond and gem stone trade, but it is not a great concern for De Beers, according to comments by De Beers Managing Director-designate Gareth Penny.

Responding to questions from the audience, at the Mines to Market International Diamond Conference on Tuesday, Penny dismissed the threat posed by synthetics: “People do not buy diamonds because of their chemical properties, but because they are rare,” he said. “Diamonds are a rare gift from nature and synthetics cannot convey the same emotion.”

“One of our adverts says ‘Give Her A Piece of Eternity’. Synthetics cannot equal, rival or replace a real diamond.”

He noted recent comments by Tiffany & Co CEO Michael J. Kowalski as saying: “We don’t do plastic,” when asked if Tiffany will sell jewelry featuring synthetic diamonds.

Penny said synthetics or lab-grown diamonds could only be a competitor to moissanite or cubic zirconium, not to natural diamonds and said they only represented a small part of the market.

Meanwhile, Penny dismissed comments made last week by South African Deputy Minister of Minerals Lulu Xingwana following the announcement he will succeed Gary Ralfe in February, who said De Beers' board was ‘lily white’. “That was a comment of an individual," Penny said. "It is not the opinion of the South African government”.