Will the synthetics hype die off? :: Mmegi Online

Synthetics have been the Grinch to natural diamonds, spoiling the rarity of rough diamonds and adding to a difficult sales period for naturals. Countries like Botswana whose economy is built on the De Beers story of the rarity of diamonds, are wishing synthetics away, predicting their doom and collapse, but the market will have the final say. Mmegi Staffer TIMOTHY LEWANIKA reports

During the recently ended Future of Mining summit, one common thread ran across the speeches of executives: the fear of synthetics. If synthetics aren’t all that, then why is everyone talking about them?

Speaking economically, diamonds economically are part of a segment of goods called Veblen. Their prices positively increase with their demand and companies like De Beers have thrived and excelled due to the ability to convince the market that there is such a limited number of diamonds in the world that each one is worth tussling for, sold to the highest bidder.

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