What are Diamond Miners Afraid Of?

This is not a secret that natural resources are exhaustible. The experts are reluctant to reveal prognosis concerning the resources that are in higher demand with diamonds included. But looking on lots of hollow mines all around the world it’s not hard to guess all of them will share the same fate. However this is not the point that frightens diamond mining companies above all else. They would more be afraid of the worthy competitor. Their worries do have basis behind. At least there is the one. If you want to know more about that, read the article below:

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The threat from synthetic diamonds, which are grown in mere days in laboratories, is real enough for De Beers, the largest producer of natural rough diamonds by value. It has issued guidelines to its 81 clients on how to cope with the influx of man-made diamonds into the market.

De Beers is also offering specialised machines for rental to weed out synthetic diamonds in an effort to keep the diamond industry honest about what should be the strict division between natural and man-made stones. It will release a machine in the first half of next year that can treat up to 360 stones an hour.

Because of the rapid advances in synthetic diamond manufacturing, De Beers will offer this new machine on a three-year lease for $25,000 a year so that it can keep customers ahead of the game with the latest detection technology, it says.

There is a real threat from these synthetics — as De Beers insists they be called as opposed to synthetic diamonds — to the entire industry’s credibility, Martin Rapaport, chairman of diamond services company Rapaport Group, said on Monday.

Cut and polished synthetic diamonds are impossible to distinguish from natural stones with the naked eye and they are cheaper than those mined. They also come without any legacy of environmental damage caused by mining or the possibility that they come from conflict zones, an issue the diamond sector is trying to stamp out through the Kimberley Process.

“Synthetic diamonds will compete across a number of fronts, not just price. I think that’s wonderful because it forces the diamond industry to clean up and take control of their supply chain,” Mr Rapaport said.

“The big point here is that natural diamonds will have to compete. They can’t compete on price, but they’ll have to compete with their market positioning, differentiation and ethical basis,” he said.

“If natural diamonds are coming from countries with human rights abuses or environmental issues, then these people will have to clean up their acts,” Mr Rapaport said. “Synthetics are wonderful because they’re going to force the diamond industry to be more honest and do more marketing to differentiate the product. It wakes us up.”

In China and India — the world’s largest cutter and polisher of diamonds — synthetic diamonds are appearing either in parcels of diamonds sold globally or in jewellery sold as 100% natural diamonds, Mr Rapaport said.

De Beers wants to work with industry bodies to identify entities selling undisclosed synthetic stones. “A consumer’s desire for diamonds is the only source of value for the industry. And that desire is underpinned by confidence,” De Beers CEO Philippe Mellier said last month.

While a synthetic diamond could have a “legitimate place” in the jewellery chain, “passing off a synthetic as a natural diamond threatens consumers’ confidence in diamonds and is at best unethical and at worst fraudulent”, he said.

The article is taken from http://abcnews.go.com/blogs/business/2013/12/turning-the-dead-into-diamonds/

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