Tuesday, October 14

The Head Heeb points to an article on the reaction of a Botswana diamond company to the immanent introduction of artificial diamonds to the market.

What has interested me in this issue is not the fact that artificial diamonds have finally been perfected, but that DeBeers is worried about it.

Diamonds are very common in comparison with most other precious metals or stones. The fact that it is so highly priced has everything to do with the fact that supply is tightly controlled by one company. DeBeers.

It would not be in their own self interest for these companies to flood the market with cheap jewelry quality diamonds. It would destroy the market (Diamonds are suppose to be exclusive after all.)

What they can do is lower the price of industrial diamonds (small, poor quality diamonds). This has implications for a lot of industries, not least of which is the computer processor market which is looking for an alternative to silicone.

The Botswana mines are looking at just another competitor for the foreseeable future. In the end however, man made diamonds will control the market, making Botswana diamonds all the more exclusive.


Post a Comment

<< Home