Articles and News
Industry News: Despite New Growing Process And Leo DiCaprio, Rules Say It’s Still A Manmade Diamond | November 18, 2015 (0 comments)
Santa Clara, CA—Lab-grown diamonds aren’t news to the jewelry industry, but a team of California researchers is hoping to change the game with diamonds that are grown off a sliver of natural, mined diamond. Diamond Foundry says its process differs from existing synthetic diamonds because it has found a way to attach new carbon atoms to an existing diamond substrate, building layer upon layer of jewelry-quality diamond material. When the stone is finished, they remove the original sliver of diamond and fashion the new growth into a gem. The company claims to now be able to grow up to nine-carat stones in a lab in just two weeks. And with top-shelf pricing, it is ripe for luxury positioning.
Diamond Foundry executives believe in embracing the diamond and jewelry industry, including disclosure requirements and retail distribution. Proud of their diamonds’ origin, they seek disclosure rather than merely tolerate it, and they want to take an active role in bringing people back to the diamond market and increasing total size of the market.
At present, Diamond Foundry isn’t making jewelry, just selling its diamonds to about 200 designers who do. But those designers include some well-known names such as Jennifer Dawes, Etienne Perret, Michael Weggenman, Tura Sugden, and more. So far, only Gallery Of Jewels in San Francisco is listed on the company website as a retailer, but the site does invite other retailers to contact the company for information on becoming a dealer. Consumers, meanwhile, can shop an extensive selection of designer jewelry using the stones, right from the site.
But regardless of Diamond Foundry’s diamond-growing process, it’s still bound by the same government rules around manmade gems as everybody else, even if pricing suggests otherwise. Typically, lab-grown diamonds sell for about 30% less than comparable mined stones; Diamond Foundry’s premium pricing will be comparable to or in some cases even above the mined version, though very large sizes are likely to be less than comparable mined stones.
“If a company markets a man-made, laboratory grown diamond, the FTC Guides require that it be identified as man-made, manufacturer-name made (or grown), laboratory made (or grown), or synthetic,” says Cecilia Gardner, CEO of the Jewelers Vigilance Committee. A seller can use the word “cultured”—as Diamond Foundry intends to do—but they still have to attach it contiguous to the required terms, says Gardner. For example: “cultured laboratory grown diamonds.” These rules would fully apply to the products made by Diamond Foundry, she says. “I doubt they would fall outside the requirements of the FTC Guides on man-made diamonds.”
According to an article in Business Insider, Leonardo DiCaprio, who was nominated for both an Oscar and a Golden Globe for his leading role in Blood Diamonds, is one of a dozen or so high-profile billionaire investors in Diamond Foundry. Other investors come primarily from the digital and financial world, and include present and former executives of companies such as eBay, Facebook, Twitter, and Sequoia Capital.
DiCaprio has become somewhat of an activist since Blood Diamond. A page on Diamond Foundry’s website features this quote from him, "I’m proud to invest in Diamond Foundry Inc. — reducing the human and environmental toll of the diamond industry by sustainably culturing diamonds without the destructive use of mining." But despite his convictions, he won’t be giving up his day job to become a full-time spokesperson for the company, which is targeting socially conscious affluent consumers as its primary market.
Top image: Leonardo DiCaprio in character in Blood Diamonds. Source: Business Insider
Diamond Producers Association Taps Creative Agency To Revive Consumer Diamond Demand
New York, NY--The Diamond Producers Association has appointed creative agency Mother New York as its global strategic marketing partner. Mother New York, which has extensive experience targeting Millennials, will collaborate with the DPA to uncover how the unique promise of diamonds can connect with a new generation.
JeanMarc Lieberherr, DPA chairman, said, “Following the appointment of Sally Morrison as managing director of marketing, Mother New York is the next step in building world class marketing capabilities to support the DPA’s mission of growing long-term demand for diamonds. Over the next few months, DPA will work closely with Mother New York to develop a powerful marketing strategy.”
DPA board member and Alrosa vice president Andrey Polyakov added, “We were impressed with Mother New York’s deep understanding of modern culture and with the very innovative and impactful work they’ve produced for important lifestyle brands that matter to Millennials.”