New De Beers and the Synthetic Light at the Tunnel

De Beers' historic sale is around the corner, and the entire industry is holding its breath. Will the new owners manage to become the new "Oppenheimers" and restore glory to natural diamonds? Diamonds will no longer be the unique but irritating side business of a mining giant. At last, the long-awaited focus of full ownership and management will take over the operations of the most exceptional mineral.

In his lecture The Courage of Hopelessness, the Slovenian philosopher Slavoj Zizek perhaps best defined what the new owners of De Beers should be aware of. "In short," Zizek said, "the true courage is to admit that the light at the end of the tunnel is most likely the headlight of another train approaching us from the opposite direction." In his lecture, Zizek argues that genuine courage is not based on optimistic illusions, but on the capacity to confront difficult realities without relying on false hope.

Synthetic Diamonds vs. Synthetic Gemstones

Synthetic diamonds may be the most difficult reality that the new management of De Beers will soon have to confront. We received an interesting perspective from a veteran diamantaire and gemstone manufacturer who has operated in both worlds, diamonds and gemstones, for more than four decades. Avraham Eshed, the founder and owner of Eshed and Gemstar, both headquartered in Israel, specializes in large diamonds and top-quality Zambian emeralds.

"We were shocked when De Beers began selling synthetic diamonds back in 2018," Eshed said. "Even the term lab-grown diamonds was, in my opinion, a major mistake. No gemstone manufacturer who respects the industry would even consider marketing synthetic gemstones. There is virtually complete consensus on this. No serious gemstone trader will manufacture them, offer them to clients, or even allow them into their offices. Someone may choose to sell synthetic gemstones, but by doing so, they place themselves outside the natural gemstone community."

Ten years ago, the diamond industry did not learn the lesson from its experienced sister, the gemstone community. De Beers' Lightbox, together with gemological institutes, and dozens of diamond manufacturers who turned into synthetic diamond manufacturers, allowed the fire to enter their home through the main entrance. Fixing the damage will require at least the same effort and enthusiasm from most of the diamond community.

Zeeman's synthetic diamond pendant ad for 29.99 euros                                Picture Erez Jacob Rivlin 

Repositioning

Last September, I took this picture of the synthetic diamond pendant of the discount Belgian retailer Zeeman. Ine Tassignon, Head of Communications and spokesperson for AWDC, recalled: "Zeeman's campaign generated considerable interest from the Belgian media. Offering synthetic diamonds at very low prices clearly illustrated the fundamental distinction between natural and synthetic diamonds."

Promoting cheap campaigns worldwide like Zeeman's will help reposition synthetic diamonds back where they belong: shiny, but cheap and affordable fashion jewelry. Not the jewelry that symbolizes the investment that eternal natural love demands. It is enough to take a look at the number of synthetic diamonds offered by Zales' wedding rings department to understand what a long road De Beers' new management has ahead.

Delegitimizing

Synthetic diamonds are perhaps the only synthetic imitations that receive original certificates. IGI has hopped on the "LGD" train and is one of the companies that has gained the most from the trend. But it is not only IGI. Every month, millions of original certificates for synthetic diamonds are issued by gemological institutes, satisfying millions of customers. It seems that for the new De Beers management, reducing synthetic sales by limiting gemological certification would be a tough road to take.

The French Revolution

Although the United States gained its independence a few years before the French Revolution, already in 2002 lab-grown diamonds lost their independence in France, and to date, the Americans have not caught up. The French adopted the strictest commercial legislation, under which it is forbidden by law to use the term "lab-grown diamonds" or the likes. The term "synthetic" must be used for diamonds, or for any other man-made synthetic gemstone. In the eyes of the French legislator, "lab-grown" and similar terms other than "synthetic" are a commercial manipulation of French consumers.

Inspired by the French approach, and by emphasizing the virtually nonexistent second-hand value of synthetic diamonds, the new management could focus on consumer fair-trade campaigns. Alongside repositioning initiatives, investing in lobbying efforts with the U.S. Bureau of Consumer Protection, as well as other influential consumer protection organizations worldwide, may well be the path through which the first genuine rays of natural sunlight, not the headlights of another train, break through the darkness at the end of the tunnel.