Cultivate diamonds: True Love Price Price

Author ｜ Jin Yan

Edit ｜ Miji

"If you think natural diamonds are marketing 'scams', then it may be possible to cultivate diamonds."

In 1993, the diamond giant De Beers seemed to enter the Chinese market and solicited Chinese translation of "A Diamond is Forever". In the end, a university teacher's "diamonds are long and long, and a forever spread" was selected.

This well -known slogan has become the stepping stalls of Dabirs into the Chinese market. Diamonds have quickly become a token that symbolizes love, and has captured the minds of many female consumers. But because of its high price, it has become a stumbling block on the road of partners.

The emergence of diamonds seemed to make the shy man in the pocket found a good replacement. As an artificial diamond, the cultivation of diamonds and natural diamonds have the same chemical composition and appearance, but the price is only one -third of the latter. Even professionals cannot distinguish between the difference between the two by the naked eye, and the cultivation of diamonds can also obtain a certificate from a professional appraisal agency.

With the gradual of rational consumption in recent years, some consumers have begun to reflect on "Is Diamond the biggest marketing scam" and cultivating diamonds to become the "tested stone" that "expose lies"?

True love also has "preferential prices"

Cultivating diamonds is essentially the same as natural diamonds.

Natural diamonds are formed by a long high temperature and high pressure in the depths of the carbon monotonous layer, and are brought to the shallow surface by lava activities such as volcanic eruption. Cultivating diamonds is the product of the laboratory and belongs to the artificial diamond.

But the cultivation of diamonds is different from diamond imitation products such as Mosang and vermiculite. Its crystal structure, physics, chemistry and optical properties are exactly the same as natural diamonds. In short, cultivating diamonds is "real diamonds".

Russian diamond pit. Picture source: GIA official website

What's more, the price of diamond depends on its size, color, clarity, and cutting, which is often referred to as the "4C standard" in the industry. The same top -level cultivation diamonds are only one -third of natural diamonds, and the larger the diamond, the more obvious the price advantage of cultivating diamonds.

It is also the weight of one carat. The average price of natural diamonds is about 60,000 to 80,000 yuan. The top diamonds of large brands will even exceed 100,000 yuan. Essence

Diamond 4C standard. Picture source: GIA official website

Jack, who was preparing for the wedding, told Xiaguang Society that his fiancee saw Harry Winston a 1.2 carat diamond ring with a price of more than 150,000 yuan. Although the income of the two was not low, he still felt "meat pain" for him. In the end, he was persuaded by his fiancee "such a flower for a lifetime".

However, there are very few couples who are willing to spend more than 100,000 diamond rings. Most people are still discouraged for high -priced diamonds.

"I may have watched a lot of idol dramas when I was a student. I have unrealistic fantasies about love, but I have become more realistic after work. Since I decided to be together, I don’t want to give my boyfriend too much pressure." Xiaowen, who has been married Essence

Although she thinks that the diamond ring is not "so important", when Xiaguang Society introduced her to cultivate diamonds, she felt that it would be a good choice if she could buy a diamond ring if she spent 10,000 or 20,000.

Obviously, the price is the main factor that determines consumers' purchase behavior. So why can natural diamond buy so expensive?

Data show that the annual output of natural diamonds is about 100 million carats. Taking Dabirs as an example, about 40%of diamond mining and trade are controlled by it. The cost of mining of rough diamonds has slowly decreased year by year, and in recent years, it has maintained at $ 40 to $ 60 per carat. The price of rough diamonds is about $ 150/carat, which does not look expensive.

However, most of the diamond ore contains impurities. Some minerals can only be used for industrial use because of the poor texture. Among them, the proportion of natural diamonds that can be used as jewelry is about 20%, and the proportion of natural diamonds with high clarity is less than 5%.

A industry insider engaged in jewelry business told Xiaguang Society that diamond rough seemed to be inconspicuous, similar to ice cubes or rock sugar in daily life. The decisive factor that really makes the diamond sparkle is cutting. In this session, the higher loss in the raw stone polishing the light will also be included in the cost.

Curin No. 1. Picture source: network

The well -known jewelry "African Star" weighs 530 carats. Its rough Riddannan weighs 3106 carats, known as the world's largest diamond rough.

When Curonan was discovered in 1905, the gem industry experts were valued at $ 7.5 billion. At that time, South Africa belonged to the British colony, so the original stone was presented to the British royal family, and then gave it to a US company to cut. It is said that the design plan took six months. In the end, the rough was divided into nine large diamonds and 96 small diamonds, as crown, scepter and other decorations. The total weight of these 105 diamonds was 1063.65 carats, only 34.25%of the weight of Curonan.

Compared with the production link alone, the cost advantage of cultivating diamonds is very obvious.

According to data disclosed by the power diamonds of A -share listed companies, the cycle of the high temperature and high pressure method (HPHT) production diamonds is about one to two weeks. The production cost of rough diamonds has been reduced to 90.43 yuan/carat. There are about 80 % of the gross profit.

And for the producer, as long as there is sufficient six -sided top compressor, theoretically production capacity can also be expanded infinitely.

The continuous maturity of technology is the fundamental reason for the continuous decline in the cultivation of diamond terminal sales and attract market attention. Picture source: GIA official website

The secret behind the high -priced diamond

In fact, whether it is mining or cutting and polishing, the impact of the cost of natural diamonds is not great. What really determines the price of diamonds is marketing and brand premium.

As early as the late 19th century, diamonds could only be found in the Brazilian jungle or India's riverbed, and the annual output was only a few pounds. But in 1870, huge diamond mines were found near the Oralan River in South Africa. As the tons of diamonds were mined, a large number of diamonds were filled with the market. threaten.

Therefore, several major diamond vendors jointly established Daibels in 1888 to control the output of diamonds from the source, and gradually grasped the global diamond trade right to speak, and pioneered the trading mechanism of rough diamonds.

In 1934, Diamond Trading Company was established and headquartered in London. The diamond trading company will organize 10 times a year to watch the goods, and only about 100 special consignees around the world can participate in and purchase. After buying diamonds, these consignees can cut sales by themselves or change hands. However, companies that do not qualify for goods can only buy rough diamonds from special consignees.

The distribution and delivery conditions are determined by the seller. This system that raises the transaction threshold and weakens the buyer's bargaining ability, so that the price control of the upstream of the diamond industry is higher than the general resource industry. Even later, the Russian diamond giant Elosha's output increased rapidly, and the market share of Dobels declined, and this system has not changed.

The more powerful means are still at the marketing level. Around the eternal emotional value of diamonds and a symbol of loyal love concepts, Dobels has made the diamond ring a tradition of engagement.

In 1946, Daibels made a whole week of Hollywood star private items in 125 national newspapers to describe the diamond jewelry they wore.

In addition, Dabirs continued to encourage the media to show the diamonds as a symbol of romantic love in celebrities. In 1947, the employees of the advertising agency hired by Daibirs N.W. Aye wrote a "A Diamond is Forever" on a piece of paper. With the popularity of diamond marketing, this slogan was nominated as "the best advertisement in the 20th century" decades later.

This may be why some people think that "diamonds are the most successful marketing scams in the 20th century". However, the threshold for raising the industry's entry, which obtains excessive profits by shaping the value of the brand, seems to be uncommon in the field of diamond cultivation.

In July 2018, the Federal Trade Commission (FTC) officially included the cultivation of diamonds into diamond categories. In 2019, Eurasian Economic Alliance, Belgian "Diamond Spell Conference" (HRD), American Gem Institute (GIA), China Jewelry and Jade Jewelry Industry Association, World Jewelry Federation and other important organizations and institutions In their respective ways, "cultivating diamonds" belongs to diamonds.

After cultivating diamonds with a "legal" identity, the jewelry giants have also entered the venue. In 2018, Delbis and Swarovski established their own cultivation diamond brands.

Lightbox diamond ring. Picture source: network

The entry of large jewelry companies has brought more attention to the cultivation of diamonds, but the giants seem to have their own calculations.

Taking the cultivation diamond brand LightBox, which is a subsidiary of Dobels, the unified price is $ 800/carat. For Dobels, the pricing of such cheap diamonds can be described as "one stone, two birds": First, to seize the market through low -cost strategies and crack down on other diamond competitors; second, consumers who buy diamonds to buy diamonds The impression of cheap "to ensure the supreme position of natural diamonds. In addition, LightBox is currently in the United States and increased sales. China's official website has been in a state of no stock for a long time. This makes LightBox look more like a gimmick.

Picture source: Xiaobaiguang e -commerce website

In addition to major international brands, some domestic diamond brands have also appeared. Among them, Light Mark has opened more than a dozen stores across the country. However, on the e -commerce platform, Xiaobaiguang's naked diamonds also cost about 20,000 yuan. This price is obviously not as low as imagined.

Diamond freedom is expected?

Theoretically, as the production capacity of the cultivation of diamonds continues to increase, greater output may further lower production costs. Accepting the "waiting party" of cultivating diamonds may be expected to realize "diamond freedom" in the future.

Picture source: GIA official website

At present, there are two major technical routes, high -temperature and high pressure (HPHT) and chemical gas deposition method (CVD).

The high -temperature and high pressure method simulation the formation of natural diamonds can reach colorless, but because metal powder is added as a catalyst during the production process, it may contain a small amount of impurities, which affects its clarity. The chemical gas sedimentation law needs to be treated in the environment because of an inert gas in the environment.

At present, the global cultivation of the diamond market has a three -legged situation. In the upper reaches of the industrial chain, China occupies more than 40%of the worldwide cultivation of diamond market share, of which 90%of the HPHT law accounts for 90%. High gross profit such as power diamonds has also further stimulated production end to expand production capacity. Earlier, many A -share listed companies have disclosed the expansion plan. India occupies more than 90 % of the market in the middle reaches of rough processing, cutting, polishing, and inlaying links. However, people in the industry believe that the cutting design of diamonds basically follows more than a dozen traditional styles, such as people often say that pigeon eggs are oval cutting. The entire midstream link is a labor -intensive type, and its bargaining ability, added value and gross profit are relatively low.

In the downstream consumption link, the United States has become the largest cultivation of the diamond consumer market, accounting for 80%of the global share. Although the Chinese market only accounts for about 10%of the global cultivation of the diamond consumer market, the growth rate is rapid. According to the statistics of Magic Mirror Market, on the Chinese e -commerce platform, the sales of diamonds in July this year were 74 million yuan, an increase of 149%year -on -year, and the growth rate increased significantly compared with June and second quarter.

Since the beginning of this year, the number of orders for the cultivation of diamond production enterprises has continued to become popular. According to CCTV Finance and Economics, a cultivation of diamond production enterprises in Shangqiu City, Henan Province, sales of nearly 250 million yuan in the first half of this year, was 2.8 times the same period last year; another cultivation diamond company in Xuchang City, Henan Province said that the company before New Year's Day next year next year All orders have been booked.

It is undeniable that the emergence of the cultivation of diamonds has caused a "low price" shock to the natural diamond market. And from the perspective of the general trend, the price of cultivation of diamonds is gradually declining.

In 2020, the same 1 carats to GVS -grade bare diamonds, the price of cultivation of diamonds was only 35%of natural diamonds. Four years ago, this number was 80%. The decline in the wholesale price is even more obvious, and the price of cultivation of diamonds has decreased from 70%to 14%.

It is worth noting that the attitude of some natural diamond brands is worth playing. Zhou Dasheng has issued an announcement that the cultivation of diamonds is an industrial product after all. As the technology increases, the price will go down, and consumers buy jewelry to preserve the value -added. Therefore, the company only makes natural diamonds, and there is no plan to cultivate diamonds.

Although the cultivation of diamonds seems to be a little "unacceptable" in the eyes of traditional diamonds, as cultivating diamonds have been certified as "real diamonds" and enjoying the dazzling brand halo. In the consumer market, the brand Fang is still very strong The bargaining ability.

From this perspective, even if the output of diamonds in the future, the trend of price reduction will not continue. The driving force for preventing prices may be the power of "brand". After all, diamonds have always been synonymous with preciousness in the eyes of consumers. In short, the cost of rising production has just created a greater profit space for the brand, and consumers may not feel the significant price reduction.

Therefore, the equivalent connection between diamonds and love will not change due to the emergence of diamonds. If natural diamonds are a successful marketing "scam", then artificial diamonds are obviously not a way to expose a scam.

*Cover, head map source GIA official website.

Reference materials:

[1] "Cultivation of Diamonds: Opportunity has arrived, move to new", Huajin Securities

- END -