Thinking about the undercurrents affecting our business these days, I understand that we are nothing but a float swinging on the strong waves of a troubled sea. In reality, we have issues that are characteristic of business, but the economic, technological and political unrest that is taking place around the world makes it very difficult for us to achieve clarity on the issue where we are moving.
Nevertheless, some events provide an opportunity to take a closer look, even if the results are not fully felt for several years. One of the questions, which I wrote earlier, is the increase in the share of synthetic diamonds (man-made diamonds, MMD) in trade. In my opinion, there will be three stages when MMD will reach turning points, moments when their presence on the market forces us to adapt to them. I'll outline the tipping point number 1 and describe the other two in the following blogs.
First, there are a few indisputable facts concerning where we are at the moment. Production of synthetic diamonds continues to grow. I have long said that a large percentage of consumers will not have problems in buying MMD, and this seems to be true. Now, retailers are beginning to use MMD as alternative low-cost "diamonds." The equipment is improved, and the cost of equipment is reduced. Now it takes only 18 months or less to fully depreciate the cost of the equipment. (I'm talking about the process of chemical vapor deposition, CVD, but this also applies to the process occurring at high temperature under high pressure, HPHT). And we can only expect further decline in value.
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