With De Beers holding Africa’s richest diamond mine in its clutches and dwindling diamond mine resources, what does the market predict for the future of diamonds? Some experts claim that synthetic diamonds will take over market demand, while others claim the future is in gemstones.
De Beers recently won sole rights to the Jwaneng mine until 2022, in an agreement with the government of Botswana. The agreement will allow the industry mogul to maintain an approximate 40 percent hold on the rough diamonds market. With diamonds constantly being removed from the world’s mines, sometime in the near future, the diamond market will be permanently altered.
Although diamond production is expected to drop drastically, only a few market moguls are worried. With natural diamond resources tapped, the market will unceremoniously elect alternative valuable gems. Whether the trend will lean toward synthetic diamonds or natural gemstones is only speculation at this point.
However, some companies in the mining business are not taking chances. Many are feverishly hiring geologists to survey land to identify gemstone mines to locate alternative gems that will provide a new gemstone trend like De Beers and Tiffany and Co. created in the 19th century with diamonds.
In brilliant marketing campaigns, both De Beers and Tiffany and Co. are responsible for establishing the association of diamonds with a wedding engagement and glamour. Now, over a century later, those who can afford it, seek the highest quality diamonds associated with De Beers and Tiffany and Co.
It is now up to secondary mining companies to find a suitable replacement for the inevitable end of natural diamonds and create a new standard. With a focus on snatching market share from two biggest names associated with diamonds and engagement, mining companies have at least 130 gemstones to choose from.
Popular alternatives to diamonds are precious stones such as emeralds, rubies and sapphires. No argument that these are classic alternatives to diamonds and they will likely fulfill the high-quality gemstone market. According to the International Colored Gemstone Association in the US, emeralds, rubies and sapphires have “lasting appeal and distinguished history” ensuring their value will remain in demand.
Just like diamonds these three precious stones are available in a wide range of quality from low to high, and a one-carat ruby gemstone will likely cost between $250 and $10,000 per carat; although true high-quality gems will cost more.
While there is likely to be a smaller market for true high-quality gemstones, less expensive gemstones are expected to fill most of the gap left by a fading natural diamond market.
Those anticipated gemstone “stars” may end up being tanzanite, tourmaline, aquamarine, imperial topaz, and tsavorite garnet. Beautiful and affordable, these gemstones likely sell between $50 and $1,000 per carat – and that’s reasonable for average to good quality one-carat gemstone. While larger and higher quality gemstones cost more, they are still less expensive than diamonds, with an average cost of $3,000 per carat.
Other gemstone categories will also play a role in the future of gemstones including connoisseur, collector and rare categories – ranging in price from inexpensive to lavish. With at least 130 gemstones, mining companies will eventually redirect attention from mining diamonds to mining precious gemstones.
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