Diamond Foundry Lauds De Beers Synthetics Bid

RAPAPORT... De Beers' entry into the lab-grown market represents a shift inconsumers' perception of synthetic stones, according to Diamond Foundry. The miner's introduction of a new line of lab-grown stones forjewelry is key for the acceptance of synthetics in the industry, theCalifornia-based producer said. The lack of any large diamond miner's support forlab-grown stones had caused conflict and uncertainty in the industry, accordingto the company, which has received financial backing from Leonardo DiCaprio. "After decades of discounting the reality and viability ofaboveground diamonds, De Beers is saying today that consumer demand has shiftedand man-made diamonds are here to stay," the company said last week. Diamond Foundry presented data that, it claimed, showed consumersheld positive views about lab-grown diamonds. Nearly 70% of respondents to arecent survey by MVI Marketing said they would consider buying lab-grown diamonds,Diamond Foundry said, citing news reports. In contrast, a survey by the Diamond Producers Association (DPA),which carries out category marketing on behalf of diamond miners, found that68% of US consumers didn't considerlab-grown diamonds to be "real." Consumers see lab-grown diamonds as a fun optionbut not something they would buy for an engagement or other major life event,according to De Beers, which last week unveiled its Lightbox Jewelry brand of low-pricedlab-grown diamonds to meet that demand. "It is clear from the Lightbox positioning that they will marketsynthetic diamonds for what they are - low-cost, pretty stones - and not forwhat they are not: real diamonds - rare, precious and inherently valuable,"said DPA CEO Jean-Marc Lieberherr. India's Gem & Jewellery Export Promotion Council echoed thatapproach in a statement last week. "[The] introduction of lab-created diamond jewelry by Lightboxwill position synthetics appropriately - [as] 'non-precious accessories,' whichis a small and distinct market," the trade organization said. "Brandedsynthetic diamonds have been used in non-precious jewelry by brands such asSwarovski and are sold as a non-precious fashion product."Image: Diamond Foundry