Wink and thousands of his nearest and dearest at JCK this week

[Wink]

we are just in the beginnings which will really take off once LGD's carve their own paths and detach themselves from the historically erred natural modus operandi!

Please educate us further. I know I am not the only one here who would love to know more about your thoughts. You are in a position that few in the trade can duplicate.

 

[diagem]

Please educate us further. I know I am not the only one here who would love to know more about your thoughts. You are in a position that few in the trade can duplicate.

Quite simple thinking Wink..., natural diamonds have not proven themselves if we compare their long term realistic inflation of value to any other earth substance or commodity.. actually today there are quite some segments of assortments still valued very similar to their values 30 years ago... (example large cape colored diamonds). Do we know any other things we can still purchase at 1990 prices?

To me this means that our whole modus operandi is/was held captive by a old school leadership (thinking) who are not willing to let go of their positions..., (e.g. Rapaport, De Beers and all the many Diamond Bourses, organizations etc...) and the industry crowd (at large) systematically still vote them in on personal interests and agenda's instead for the future genuine interests of this supposed to be wonderful industry!!

The LG sector is also "still" being held captive by the same or very similar crowd..., most natural diamond entities are also running adjacent LG businesses and given their similar state of minds, just like the natural diamond industry is a RB world..., unfortunately so is the LGD world...

From their growing developments through out the whole chain of events (e.g. rough growing, valuing, marketing, planning, designing and crafting to their (again) downstream jewelry design models and marketing.., very similar to their natural peers.., its again a clear race to the bottom!! A lose - lose situation for everyone and we a witnesses to this happening as I write these lines...

Thankfully there are currently just a handful of fresh minds noticing this erroneous way going forward and are already carving their own unique paths. It is definitely worth looking and following them...,

...even if just for educational purposes!!

 

[Rockdiamond]

True stuff Yoram.
It's like an economic theory class playing out right in front of our eyes.
How long till LGD's are sold on the basis of value, as opposed to relating to the Rap sheet...that's a biggie and it's getting closer to reality.
A lot of our industry has their heads very far up their butts

 

[Wink]

today there are quite some segments of assortments still valued very similar to their values 30 years ago... (example large cape colored diamonds).

Yes, but I never liked large cape colored diamonds, and did not buy them even in the then market values 30 years ago. I am not even sure your definition of cape and mine are the same. I think of those unpleasant light brownish yellows and my whole face reacts unpleasantly. but I proudly wear a 1.53 P color diamond with a pure yellowish body color that I enjoy.

most natural diamond entities are also running adjacent LG businesses and given their similar state of minds, just like the natural diamond industry is a RB world..., unfortunately so is the LGD world...

True. Rounds are the top sellers in both categories for us. Yet we proudly carry numerous natural and lab grown diamonds in various shapes.

its again a clear race to the bottom!! A lose - lose situation for everyone and we a witnesses to this happening as I write these lines...

Here we are in more agreement. Just as in the natural world back in the early 90s when internet commerce became legal, there are a plethora of people who think they can get rich selling cheaper than the next guy. I remember more than one vendor bragging that he would sell any diamond for only $200 above his cost. They never lasted for long, as $200 does not cover the expenses involved in selling the diamond. (Insurance, employees, shipping to and from the company owning the diamond, rent for the office, etc.)

I remember watching, I think it was Good Morning America, and seeing an interview with the head honcho of one of the big internet startups. He and his associate told the host that they had done $28,000,000 dollars of business last fiscal year and only lost $30,000,000 dollars of investor's money. They calmly declared they would be profitable and able to pay dividends in only five more years.

I do think this is actually good for us in the long run, as it forces us to keep our pencils sharp and keep searching to provide the consumer what they want. With Lab grown, this provides us with the opportunity to develop new artistic cuts for adventuresome clients, but these will always be for a limited market, often one offs.

I am an old man, and not at all likely to be here in fifty years to talk about how exciting these years were. I know that I can look back at my career and see the excitement I lived through. The investment craze of the late seventies, the commercialization of the internet starting in mid 1992, if memory serves me correctly, the cut wars of the early 2000's, the ups and downs of the economies in various countries and the tragedies of wars all come to mind. I have no doubt the next fifty years will have their own excitements. I hope to be here for a few of them, I would love to see who will be the innovators and where they will take us with this new opportunity.

 

[Garry H (Cut Nut)]

Yes, but I never liked large cape colored diamonds, and did not buy them even in the then market values 30 years ago. I am not even sure your definition of cape and mine are the same. I think of those unpleasant light brownish yellows and my whole face reacts unpleasantly. but I proudly wear a 1.53 P color diamond with a pure yellowish body color that I enjoy.

True. Rounds are the top sellers in both categories for us. Yet we proudly carry numerous natural and lab grown diamonds in various shapes.

Here we are in more agreement. Just as in the natural world back in the early 90s when internet commerce became legal, there are a plethora of people who think they can get rich selling cheaper than the next guy. I remember more than one vendor bragging that he would sell any diamond for only $200 above his cost. They never lasted for long, as $200 does not cover the expenses involved in selling the diamond. (Insurance, employees, shipping to and from the company owning the diamond, rent for the office, etc.)

I remember watching, I think it was Good Morning America, and seeing an interview with the head honcho of one of the big internet startups. He and his associate told the host that they had done $28,000,000 dollars of business last fiscal year and only lost $30,000,000 dollars of investor's money. They calmly declared they would be profitable and able to pay dividends in only five more years.

I do think this is actually good for us in the long run, as it forces us to keep our pencils sharp and keep searching to provide the consumer what they want. With Lab grown, this provides us with the opportunity to develop new artistic cuts for adventuresome clients, but these will always be for a limited market, often one offs.

I am an old man, and not at all likely to be here in fifty years to talk about how exciting these years were. I know that I can look back at my career and see the excitement I lived through. The investment craze of the late seventies, the commercialization of the internet starting in mid 1992, if memory serves me correctly, the cut wars of the early 2000's, the ups and downs of the economies in various countries and the tragedies of wars all come to mind. I have no doubt the next fifty years will have their own excitements. I hope to be here for a few of them, I would love to see who will be the innovators and where they will take us with this new opportunity.

Great discussion gents.
I co wrote this a long time ago. Sadly there is not much sign of the innovation we would all like:

Letter to the Editor - Synthetic Appeal

	Rapaport Diamond Report October 3, 2008 Many diamantaires believe that synthetic diamonds pose a risk to consumer confidence � because "fakes" might be passed off unethically as natural diamonds � and that high-end consumers will never choose a synthetic diamond anyway. But what if man-made diamonds created their own new markets by developing a niche in exclusive luxury goods? There is no reason why synthetic diamonds can't develop strong market positions given time and investment in branding. Some well-informed consumers have already found appealing attributes over natural diamonds. It is feasible that this could lead to even higher prices for synthetics than for natural stones. LifeGems, for example, claims to grow diamonds from the cremated remains of loved ones and charges much higher prices than the cost of natural diamonds. Conversely, some consumer segments may prefer better-looking synthetics to lesser-quality natural diamonds, which could lead to a price war with negative consequences for both industries. Some man-made products are more popular than their natural equivalents. Mountaineering and winter sporting apparel use mainly man-made fabric, in much the same way that animal fur is largely "faux" these days. In the motor vehicle industry, synythetic lubrication oils and rubbers have distinct advantages over their natural counterparts. What advantages can synthetic diamonds have? Diamonds can be grown under controlled conditions just as the piezoelectric quartz crystals in watches are lab-grown without the defects found in cheaper natural quartz. Jewelry designers now have the option to "dial a color" for their latest synthetic creations. Access to cheaper man-made diamonds will allow cutters to experiment and design new cuts, in much the same way that Swarovski does with crystal. This can lead to beautiful new shapes, facet patterns and proportion combinations. Lab-grown diamonds are also less environmentally damaging than mined diamonds, are "conflict free" and may even inadvertently arrest manufacturers' concerns about supply. In the future, the expansion of synthetic gem diamond production could reduce investment in diamond prospecting and lead to a reduction in mined diamond availability. Diving for natural pearls in wild oysters has been replaced by cultured pearl farming and these companies invested heavily in consumer-focused market studies identifying unmet needs and in the implementation of good brand positioning. The success of Swarovski crystals shows that even diamond imitations can be marketed profitably when innovative cut design, optimum lighting and good branding and promotion are used. The natural diamond industry worries that unscrupulous dealers will pass oft "fakes" as natural diamonds, but some consumers may prefer well-branded, man-made diamonds. New entrants to any market are less likely to be impeded by the existing constraints of that industry a key argument in Blue Ocean Strategy by W. Chan Kim. Labs, for example, cannot provide consumers with third-party quality grades for new cuts. Properly marketed, high-quality synthetic diamonds with reputable manufacturers' standards should not require lab grade reports. Learning to design, protect and market successful natural diamond luxury brands will be the main topics at the 2009 Diamond Cut Conference - visit idcc2.octonus.com. We cannot rely on "A Diamond is Forever," which may one day be used to promote man-made diamonds. De Beers synthetic production division, Element 6, has recently been granted a patent for creation of a logo inside a CVD synthetic diamond. The diamond engagement ring has become a necessity or "functional" product in many Organisation for Economic Co-operation and Development (OECD) countries. For natural diamonds to regain their "emotional value," the creation of the best-quality new cuts is an effective way to achieve a sense of newness. Without innovation, natural diamonds will fail to satisfy the needs of various market niches and then well-branded and innovative synthetics will gain a strong foothold across both price-sensitive and luxury segments. The presence of "commoditized cuts" two-thirds of all diamond cuts are round and princess and the view that the diamond is just a jewelry component leave the door wide open for new and exciting variations of man-made diamonds. As synthetic diamond dealer and retailer profits grow, more money will be invested in targeted marketing, leading to more consumer segments buying synthetic diamonds. In the long run, it's plausible that man-made diamonds could become a luxury product. However, our group believes that innovative firms can learn how to use the right branding, cut design and marketing to reposition natural diamonds as the ultimate luxury product. To help, we will host the Diamond Cut Conference in Switzerland, just before Basel 2009. The Cut Group Sergey Sivovolenko, OctoNus, Finland Garry Holloway, Ideal-Scope, Melbourne, Australia Janak Mistry, Lexus, Surat, India Dr Yuri Shelementiev, Russian Gemmological Center, Moscow, Russia Dr Ivan Orlov, Octonus Suisse, Switzerland

 

[Wink]

As synthetic diamond dealer and retailer profits grow, more money will be invested in targeted marketing, leading to more consumer segments buying synthetic diamonds.

Anyone who does not yet realize what a forward thinking man @Garry H (Cut Nut) is, should easily be able to do so after reading this excellent article he wrote back in 2009. Much of what he wrote could, or rather should, still happen.

 

[Garry H (Cut Nut)]

Anyone who does not yet realize what a forward thinking man @Garry H (Cut Nut) is, should easily be able to do so after reading this excellent article he wrote back in 2009. Much of what he wrote could, or rather should, still happen.

Hahahaha, you'r the nicest guy Wink.
But in truth I did not write it all, and also do not agree with it all.
But the innovation opportunity - that is sitting waiting for the Yoram's of the world to take advantage of.

 

[Dr_Diesel]

I co wrote this a long time ago

…in truth I did not write it all,

Apologies, I’m a little bit confused. Can you clarify?

 

[DejaWiz]

Apologies, I’m a little bit confused. Can you clarify?

From the article:

 

[MissGotRocks]

@Wink @Garry H (Cut Nut) i seem to remember reading somewhere awhile back that perhaps Russian diamonds were making their way to India for cutting and then imported to US. Any truth to this or are Russian diamonds just totally shut down by sanctions for the war? Inventories don’t seem to be growing; may in part be because of the LGD market coming on so strong too I guess. No one wants to add to inventory if it isn’t selling.

 

[oncrutchesrightnow]

“Unmet need” was an astute observation. Earth grown diamond engagement rings, bands, pendants, and earrings had become ubiquitous in the U.S.. But not high quality. Combine high quality, bigger size, and 90% price cut — beauty won out over whatever it was that people thought motivated middle class consumers more.

Cool cuts are not falling in price as quickly as common cuts but they will. It took a while for the two- and three-carat stones to drop but they did; the cool cuts will drop, too. What’s next? IMHO it will be innovative cuts, then innovative designs.

I had predicted that people might start signaling wealth with more expensive settings, but now think that won’t happen. You can market super giant fancy color diamonds as luxury… let’s say there are a million people in the world who will drop ten million bucks on a diamond. Do you think they will do so when hundreds of millions of people can acquire something that looks identical, and the person with the ten-million dollar diamond has to tape a receipt on top of it in order to display their wealth? Maybe you can market the feeling of pride in owning a ten-million dollar diamond while everyone else’s identical one is lab grown… but that didn’t work with engagement rings yet. But I defer to all you professionals here on PS.

Looking forward to some innovations in upcoming months.

 

[diamondyes]

“Unmet need” was an astute observation. Earth grown diamond engagement rings, bands, pendants, and earrings had become ubiquitous in the U.S.. But not high quality. Combine high quality, bigger size, and 90% price cut — beauty won out over whatever it was that people thought motivated middle class consumers more.

Cool cuts are not falling in price as quickly as common cuts but they will. It took a while for the two- and three-carat stones to drop but they did; the cool cuts will drop, too. What’s next? IMHO it will be innovative cuts, then innovative designs.

I had predicted that people might start signaling wealth with more expensive settings, but now think that won’t happen. You can market super giant fancy color diamonds as luxury… let’s say there are a million people in the world who will drop ten million bucks on a diamond. Do you think they will do so when hundreds of millions of people can acquire something that looks identical, and the person with the ten-million dollar diamond has to tape a receipt on top of it in order to display their wealth? Maybe you can market the feeling of pride in owning a ten-million dollar diamond while everyone else’s identical one is lab grown… but that didn’t work with engagement rings yet. But I defer to all you professionals here on PS.

Looking forward to some innovations in upcoming months.

I had a similar thought. I think it makes sense that chunky yellow gold is back in style- you can’t lab-create gold! (Yet)

 

[MissGotRocks]

“Unmet need” was an astute observation. Earth grown diamond engagement rings, bands, pendants, and earrings had become ubiquitous in the U.S.. But not high quality. Combine high quality, bigger size, and 90% price cut — beauty won out over whatever it was that people thought motivated middle class consumers more.

Cool cuts are not falling in price as quickly as common cuts but they will. It took a while for the two- and three-carat stones to drop but they did; the cool cuts will drop, too. What’s next? IMHO it will be innovative cuts, then innovative designs.

I had predicted that people might start signaling wealth with more expensive settings, but now think that won’t happen. You can market super giant fancy color diamonds as luxury… let’s say there are a million people in the world who will drop ten million bucks on a diamond. Do you think they will do so when hundreds of millions of people can acquire something that looks identical, and the person with the ten-million dollar diamond has to tape a receipt on top of it in order to display their wealth? Maybe you can market the feeling of pride in owning a ten-million dollar diamond while everyone else’s identical one is lab grown… but that didn’t work with engagement rings yet. But I defer to all you professionals here on PS.

Looking forward to some innovations in upcoming months.

They may be able to replicate the look of the ten million dollar diamond but most folks would realize that a twenty something year old would probably only have that size diamond if it were lab and not earth mined. For people that prefer earth mined, I think there is more involved in it than the dollar value. This market is rapidly changing though and probably will not be sorted out for awhile. There is an emotional investment in an engagement ring that lab grown can’t scratch for everyone. It is fascinating to see the market divide though isn’t it? We see people here with earth mined engagement rings but will opt for lab grown earrings or pendants. It seems to have happened hard and fast and pricing and marketing will probably fluctuate for some time to come. Will be very interesting to see where it all lands in another year or so!