Bad News For The Diamond Cartel

Gem-quality diamonds are being manufactured right here in Florida.

"The diamonds are flawless and can fool even the most expert of gemologists."

Contrary to popular opinion, diamonds are not rare. While there are about 60 or so companies mining diamonds, De Beers is by far the largest and the only one you've heard of.

Diamond prices are kept elevated by hording the diamond rough and tightly controlling the industry, along with years of very effective advertising. For insight into the diamond industry, read The Diamond Invention by Edward Jay Epstein.

It's hard to say how much these new created diamonds will effect the price of natural diamonds but you can be sure there will be those who will pass them off as high quality natural diamonds.

"The sudden appearance of multi-carat, gem-quality synthetics has sent the DeBeers diamond cartel scrambling. Several years ago, it set up what it calls the Gem Defensive Program – a campaign to warn jewelers and the public about the arrival of manufactured diamonds. At no charge, the company is supplying gem labs with sophisticated machines designed to help distinguish man-made from mined stones."

Created colored stones have been around awhile and are big business these days. They are beautiful and make gorgeous jewelry but high quality natural stones maintain value in spite of this. Natural colored stones have inclusions which can but don't necessarily detract value. These inclusions can have a beauty all their own, they tell a story, like looking back in time to the formation of the stone (even if you can't see them by eye). People are more willing to pay for the natural stone because of this. The beautiful, flawless created stone is too beautiful for it's own good (some manufacturers are creating colored stones with inclusions to further confuse you).

Inclusions in diamonds always detract value and are just plain ugly. Will the diamond industry be able to convince people to pay more for a mined diamond when they can get a more perfect but created diamond for less? Time will tell.