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https://labgrownmagazine.com/Issues/January2021/
Lab Grown Magazine Is One Year Old
As we enter the New Year, we also
celebrate the first anniversary of Lab
Grown Magazine. Created in January
2020, it is the only regular publication
devoted to lab-grown diamonds. We are
thankful to our readers and our advertisers,
who make this unique publication
possible, and who have expressed their
appreciation of the insightful articles by
our contributors over these last 12 issues.
Last year was certainly difficult, but we are
optimistically looking ahead to better times in
2021. Hopefully, later in the year, the coronavirus
will be but a memory and the jewelry industry
will prove itself to be as resilient as ever.
As part of that process, the feature article in
this issue, The Year That Should Have Been by
Dan Scott, talks about ways to build on the
positive changes that have happened in our
industry and move forward to a more profitable
future.
The second feature in this anniversary issue
is a book review by Cynthia Unninayar
on the newly published and very informative
book by Dusan Simic and Branko Deljanin.
Entitled Laboratory-Grown Diamonds – Information
Guide to HPHT-Grown and CVDGrown
Diamonds, it is a comprehensive guide
to the LGD industry, starting with its history
right up to recent and major advances in the
processes, identification, research, and uses of
LGDs, including jewelry. It is a must-have for
anyone seriously involved in the lab-grown
sector or who want to become involved.
And, these same authors will be hosting a
webinar on January 22 on lab-grown diamonds,
which will feature experts from around
the world. Lab Grown Magazine will be represented
by our own Dan Scott. It will take
place at 11am EST and, for more information
on how to join the discussion, please contact
Branko Deljanin at info@brankogems.com or
visit www.brankogems.com.
In the meantime, we extend our very best
wishes to all for a very Happy New Year!!
Zev
2021 The Year That Should Have Been
Entering 2021, Let’s Leverage Past Covid Crisis Lessons & Profitably Proceed
By Dan Scott
It’s easy to play Monday morning quarterback.
Passing judgement on what should
have happened in the past months is as
simple to state as it is worthless to say. That
noted, there are two strong reasons to look
back—to learn and to leverage the lessons
learned.
We are no longer on a retail related Covid-
19 crash course, but don’t be too quick
to jump on the success superhighway just
yet. Having an overtly optimistic outlook is
as fail-safe as Lucy pulling the football from
Charlie Brown.
Being positive leads to productivity, of
course, but only with a proven plan. And that
plan must focus on consumers. Vaccination
programs and government-controlled relief
packages are solid steps towards a Covid
comeback, but a stadium event is lackluster
without crowds filling the seats.
Let’s play to win and focus on how you can
fill your stadium in 2021.
Turn Hope to Happen
To borrow from Greek mythology, Zeus
vowed vengeance by packing a jar (not a box)
full of sickness, death, and turmoil to be unleashed
if Pandora opened it. As the myth
goes, she eventually lifted the lid, releasing
devastating world despair. The only thing that
didn’t escape her jar of misery was “hope.”
How do you define “hope?” Is it an anticipation
of positivity? Or is it a deceptive
expectation for those without a plan. Some
historians translate the “hope” trapped in
Pandora’s jar as a metaphor of imprisoned
possibilities. Others theorize that “hope” was
meant to escape since an empty self-promise
is just as destructive as the demons housed
in this ancient parable. Discarding hope may
appear to be unnecessarily negative or a quick
means to a demise, but let’s keep things in
context.
I’m reminded of the late Scott Kay who
utterly despised hope. He regarded all things
“hope” as a weak tool of the “hopeless.” Scott
thought of hope as a whim of distraction
occupying space that should be replaced with
strategy. He promoted the same mindset
whenever anyone wished him “good luck.”
Those two words would instantly irritate him.
Scott regarded “luck” for the “lesser than,”
those who must lean on hope to win, rather
than formulating and activating a calculated
plan for success. The first time I heard this
rationale, it seemed to join those who labeled
Scott a pessimist—and an angry one at that.
Working as Scott’s right hand, I stayed by his
side for a decade as CMO, primarily since
I, too, believe in actualization over ambition,
conversion over craving, and wages over
wishes.
While navigating the 2021 highway of
uncharted sales territory, would you take the
exit you hope is right or the one based on a
road map?
Destination: Success
The global lab-grown diamond (LGD)
market continues to climb. With advancing
technologies, resource allocation, consumer
awareness, and demand growing year-onyear,
analysts predict a global market with
revenue surpassing $23.8 billion.
But analytical forecasts for man-made diamonds
must be compared to natural stones
as well as the jewelry market overall, otherwise
we’re back to hope in a jar.
Let’s take a hard look at what was (pre and
peak pandemic) and what mined diamonds
and the worldwide
jewelry market
were dealing with
in order to strategize
for 2021 and
beyond.
Voice of Reason
Paul Zimnisky,
a highly regarded,
independent diamond
industry analyst
and consultant, based in the New York
City/metro area, had this to say: “While the
pandemic brought about an unprecedented
shock to the whole diamond value chain in
2020, in a way, it may also have acted as a
catharsis of sorts for an industry that has
been struggling to regain footing in recent
years, in part due to a misalignment of supply
and demand.”
The end-consumer has been somewhat
capricious in recent years, adopting colored
gemstones for engagement ring centers,
which we will address later
in this article. On the white
LGD supply side, increasing
output is quite apparent, partly
since rough prices hit an alltime
high in 2011.
“Over the longer term, endconsumer
demand likely remains
the most important
fundamental factor leading
to a prosperous diamond industry,
as strong demand ultimately
pulls excess supply
though the supply chain,” says
Zimnisky. “In the short- and even mediumterm,
an oversupplied market can greatly
limit the ultimate health of industry, which
we have seen in recent years. While the pandemic
has undoubtedly shaken an already
fragile diamond industry vying for a recovery,
it also seems to have accelerated a muchneeded
supply shedding that will help position
the industry for a more sustained recovery
and a return to a much healthier state in
the years to come.”
Volatility and Veracity
It’s clear that the diamond industry has
witnessed high volatility, especially over the
past few years. 2019
ushered in shortterm
revenue challenges
impacting
the upstream (mining)
and midstream
(distribution) revenues,
which shrank
by 25% and 10%,
respectively, in that
year. In early 2019,
diamond mining
delivered near record production (note that
this mostly came from lower-quality mines),
yet it faced lower than expected demand during
the same period.
The blame for a lower-than-forecast desire
for diamonds went to the macroeconomic
and geopolitical tensions across the world.
The $80 billion forecast wasn’t realized and
the top three largest jewelry markets (the
USA, China, and India) were hit the hardest.
Declining consumer confidence based on
labor market uncertainties, recession rumors,
trade tensions, and the 15% tariff on Chinese
jewelry that began in September 2019 contributed
to the chaos—all this while China
saw a sharp depreciation of the yuan, protests
in Hong Kong, and a spike in tariff wars.
As for India, the depreciation of the rupee
and the bankruptcy of one of the nation’s
largest jewelry retailers—Gitanjali—it surprisingly
saw a mere 1% decline in the 2019
jewelry market.
But that was 2019. To get a strong hold on
what was, we should look at where we were
trending overall in 2020.
Early 2020 economic output surged by an
annualized 33% in the third quarter of last
year, following a record fall as a consequence
of Covid. The sharp economic contraction in
March was followed by a real gross domestic
product (GDP) decrease in all fifty states.
It fell to an annual rate of 31.4%, according
to recent data from the U.S. Bureau of Economic
Analysis.
The LGD market effectively concentrated
on risk factors and tried to minimize its investment
impacts by diversifying its holdings
globally. While major players in the LGD
sector fought with mined diamonds, small to
medium start-ups sparked newfound competition
and leveled the playing field in many
ways.
Despite job losses and many independent
businesses suffering to damaging depths,
the U.S. financial system slowly churned on.
Banks remained well-capitalized and many
companies have been able to borrow at relatively
easy terms. The economy has avoided
the shutdown of large companies for financial
reasons. If that remains the case, economic
activity should pick up quickly in terms of
months, not years.
Thanks to a $25 billion bailout that many
would agree should have been dispersed to
consumers, large airlines remain solvent and
ready to expand service when necessary. If
that were not the case, re-creating airline services
once the pandemic is more manageable
could be considerably more expensive, timeconsuming,
and fly in the face of consumers
and businesses.
The news about multiple vaccines has enabled
us to lower the probability of a “long
slog” pandemic scenario from 25% to only
10% according to Deloite Insights released in
December 2020. Whether or not the headline
making vaccines prove to be winners and
what percentage of people in America (and
the world) prove reluctant to be vaccinated
have some economists in a conundrum.
Retail Apocalypse Be Damned
Christine Jewelers in Richmond, British
Columbia has been going strong since 1993.
Built on three pillars—classic styling assortments,
white glove service, and truly personal
customer service—two brothers have
taken over the family business and elevated
the brand. While their
success pillars are built
on a solid business
platform, they thrive in
an agile environment;
one that is as alive and
personable online as it
is off.
“Even before Covid,
there was a ‘retail apocalypse’
already hitting
everyone hard,” noted
co-owner Alex Kwong.
“We are a family business
of thirty-plus
years. When my parents
had the store, success
was based on hard
work. Fast forward to
2020+… Everything is
different. Customers’ buying behaviors have
changed and the competition is increasingly
high. It’s not about just having a website or
social media; it’s what you are doing on those
platforms to engage with the customer. For
example, we often have live shopping streams
on Facebook, with simultaneous and multiple
sources of social media outlets.”
The Christine Jewelers key social media
overlaps are their YouTube channel with 12K
followers and their TIKTOK with 1.2 million
followers. “We grew because people are
recognizing us online and, when they stop by
our shop, they almost feel that they know
us already,” Kwong adds. Age-wise, his 30+
customers often prefer mined diamonds,
while those who are 20 to 30 lean towards
LGDs. This is also an indication that millennials
do not necessarily hold the same values
when it comes to diamonds. The same holds
true for their children.
De Beers Is Forever
In 2020, China produced 15.9 billion carats
of LGDs. Berkshire Hathaway expects
that China’s LGD output will exceed 17.0
billion carats in 2025. The China-based
LGD leaders include Zhongnan Diamond,
Zhengzhou Sino-Crystal Diamond Company,
Huangne Whirlwind, Jinqu, CR Gems,
and SF Diamond.
Other major diamond producers are based
in Seoul (ILJIN Diamond) and Singapore
(IIa Technologies).
In the U.S., three LGD-focused companies
made the leading worldwide list: New Jerseybased
Advanced Diamond Technologies and
Sandvik Hyperion, along with Washingtonbased
BetterThanDiamond.
De Beer’s Element Six leads the entire pack
with its headquarters and main manufacturing
in Britain, with operations in Ireland,
Germany, South Africa, and the U.S.
According to Rapaport, “De Beers hosts ten
sights a year at its sales headquarters in Gaborone,
Botswana. However, travel restrictions
forced it to cancel its third sight, which
began in late March. De Beers rough sales
fell 56% year-on-year to $1 billion for the period;
most of that revenue came from the first
two sights of the year before the pandemic.
The average price declined 21% to $119
per carat, while the company’s average rough
price index fell 8%. De Beers total revenue
dropped 54% to $1.22 billion, including sales
from Element Six and other divisions such as
grading and research. Through this, De Beers
maintained its global market share dominance
and continues to steer the natural and
man-made diamond markets.
In June 2020, Element Six launched its
first commercially available, general-purpose
chemical vapor deposition (CVD) quantum
grade diamonds, named DNV-B1 and
branded as “perfectly imperfect diamonds.”
Read more here: https://tinyurl.com/LGMDNV-
B1
After two years of construction and
nearly $100 million, De Beers completed a
60,000-square-foot facility near Portland,
Oregon for its Lightbox brand, where it will
begin mass-producing LGDs. These stones
are not intended for engagement/bridal, but
rather for fashion jewelry.
De Beers says it has the capacity to produce
200,000 carats of polished diamonds or
400,000 pieces of LGD jewelry per year at
Lightbox. And, for the first time in 20 years,
Blue Nile will offer an exclusive Lightbox
LGD collection online and in newly opened
Blue Nile retail locations.
Falling Out of Love: Mined
Diamonds
According to the BBC’s Future Planet released
in February of 2020, “Millennials and
now Generation Z (children of Millennials)
together are the main purchasers of diamonds
for engagement rings, and are moving
away from conventional diamonds.
I note also that MVI just published Gaining
Critical Mass 2020 Lab-Grown Diamond
Consumer & Trade Research Report, which is
available for purchase at
https://tinyurl.com/themveye
Engaging Color
As for engagement rings, many predict that
consumers will request emerald centers (natural
and man-made). Shelley Brown, senior
fashion and beauty editor at The Knot stated,
“Emeralds are associated with serenity and
new beginnings, making them a symbolic
choice for many to-be-weds.”
Expect demand for blue stone engagement
rings, too, especially sapphires and blue opals
of various varieties, all typically offered in a
halo of white diamonds.
In the Click
You can tune in to a younger demographic
by simply following trendsetters with large
followings on Instagram. Read the comments,
absorb the vernacular, make a record
of the styles they are liking and sharing. Then,
you may want to adopt those findings into
your business. The more you engage with the
youth of the world, the more you will sell to
the youth of the world.
Dan Scott is a brand architect and founder of
Luxe Licensing, a New York Metro-based brand
and marketing agency catering to luxury and
demi-fine properties. Past and current clients include
Chanel, Gucci jewelry, JCKVirtual, St. Laurent,
Harry Winston and up-and-coming brands.
Dan welcomes conversation and may be reached
at +1.201.294.3697, dans@luxelicensing.com or
through www.LuxeLicensing.com ■
Laboratory-Grown Diamonds
Book Review by Cynthia Unninayar
One of the fastest growing sectors in the
gem and jewelry industry over the last
two decades has undoubtedly been that
of laboratory-grown diamonds (LGDs).
It is a topic that incites both appreciation
and controversy, as well as consuming a great
deal of ink in the trade and consumer press
around the globe.
Realizing early on the importance of LGDs
and the necessity to understand the process,
the results, uses, gemology, and the need to
distinguish them from their mined counterparts,
gemologists and diamond researchers
Dusan Simic and Branko Deljanin published
Laboratory-Grown Diamonds, a comprehensive
tome on the subject in 2007, which itself
built on built on a first edition, Laboratory-
Created Diamonds, published in 2004.
This Second Edition quickly became the –
Title: Laboratory Grown Diamonds
An Information Guide to HPHT-grown
and CVD-grown Diamonds
(Third Edition)
Authors: Dusan Simic and Branko Deljanin
Contact: info@brankogems.com
(Tel: 1.604.619.3590)
ISBN: 9781777369200
COPYRIGHT: ©2020 / 188 pages
go-to reference on these man-made gems. It
received high acclaim from the industry and
was translated into two languages.
Over the last 13 years, however, there have
been a number of important changes in the
lab-grown sector, and thanks to overwhelming
demand, Simic and Deljanin have come
out with their Third Edition of Laboratory-
Grown Diamonds, published in 2020.
The updates include articles contributed by
four eminent authors in the field: Dr. Boris
Feigelson, a scientist at the U.S. Naval Research
Laboratory in Washington D.C. who
developed the BARS diamond growth technology;
Malay Hirani, a process engineer
from Mumbai, India and founder of Soni
CVD Diamonds; Frank Ripka, an industrial
engineer, and CEO of Algordanza’s subsid-
iaries in Germany and Austria; and Sharrie
Woodring, senior gemologist at GCAL and
co-author of the 2004 edition of this book
with Branko Deljanin.
One of the questions the book addresses is
why these man-made stones are generating
more attention than ever. The authors give
three reasons: Manufacturers have refined
the HPHT and CVD methods to produce
a large supply of bigger gem-quality material
at a reasonable cost; more near-colorless,
blue, and pink laboratory-grown diamonds
are now available in addition to yellow,
thanks to better growth conditions; producers
and U.S. designers are creating more
jewelry with LGDs, and more retailers are
carrying LGDs, thus initiating increased demand
among consumers who are savvy about
spending.
Even though the book is quite technical
in many aspects, most explanations are easy
to understand and offer a good overview of
the lab-grown sector. Part I provides a background
on the industry, starting with the
history of LGDs, which were first created
in 1954 for industrial production, followed
in the 1970s for gem-quality stones. It also
explains the types of diamonds, as well as the
evolution of the technologies involved in the
HPHT and CVD processes and the changing
colors of lab-grown stones.
Important, too, is the information provided
on the FTC guidelines regarding nomenclature
of lab-grown diamonds. Essentially,
the FTC acknowledges that both mined
and LGDs are diamonds with the difference
being the source and that each be clearly
labeled. Designed for transparency and to
protect consumers, the new guidelines interestingly
omit the word natural from the definition
of a diamond.
Part II offers a 2020 overview of diamond
growth and production, along with the major
producers around the world. The authors
also describe the challenges for new companies
considering getting into CVD-growing,
including controlling intellectual property,
training operators, budgets, start-up costs
and more.
One interesting section goes into detail
about LGDs known as Memorial Diamonds.
“For a comparatively small but determined
clientele, Memorial Diamonds provide intrinsic
and sentimental value that infinitely
surpasses its material value,” write the authors,
who state that these gems were first
grown in 2003 using the HPHT method,
and since are marketed worldwide either in
the funeral sector with carbon extracted from
the cremation remains, or from hair of the
deceased person, or marketed as a special
item in the context of celebrations such as
weddings where the carbon source is hair of
a living person. They caution, however, that
the overall process is not so simple and that
prospective buyers of Memorial Diamonds
should deal only with reputable companies.
Part III (64 pages, 1/3 of the book) is devoted
to the identification of lab-grown diamonds,
including descriptions and discussions
of standard and advanced gemological
equipment, as well as updates on fluorescence
of both mined and LGDs.
The last section of the book, Part IV, goes
into detail on certification and tracking. It
also includes a brief description of the unique
USPTO patent obtained in 2018 by Dusan
Simic ─ “Synthetic Diamond Labeling and
Identification System and Method” ─ which
is the first comprehensive solution to create
simple intrinsic differences between natural
and lab-grown diamonds used in the jewelry
industry.
The important issue of grading lab-grown
diamonds is also discussed in this section.
The book features a selection of beautiful
jewelry made with LGDs in various colors by
designers who are adopting these gems as an
important part of their collections, especially
in the demi-fine category of fashion jewels.
An impressive list of references rounds out
the book, which would be an important addition
to any gem and jewelry library. ■
LAB-GROWN DIAMOND
Color Showcase
The popularity of lab-grown diamonds has
grown a lot over the last decade. One of the reasons
is that they are increasingly being created
in fancy colors. Today, they are right en vogue
with many of the ten Spring/Summer 2021 colors
as forecast by Pantone, and seen on this page.
The world’s authority on color has also chosen its
Colors of the Year – Ultimate Gray and Illuminating.
And of course, the classic colorless lab-grown
diamond is always in fashion.
The union of an enduring Ultimate
Gray with the vibrant yellow Illuminating
expresses a message of positivity,
supported by fortitude, explains Leatrice
Eiseman, executive director of the Pantone
Color Institute. Practical and rock
solid but at the same time warming and
optimistic, this is a color combination that
gives us resilience and hope.
By Cynthia Unninayar
