Truth in Diamonds

Q
Are Diamonds Rare?
A

There are vast resources of diamonds inside Earth; their availability is limited only by the rate at which they are mined.

Diamond production has increased 100 fold annually from less than 2 million carats earlier last century to more than 180 million carats today. Throughout that period, clever marketers have kept telling the story about the world running out of diamonds.

Diamond mining now happens at an industrial scale unlike any other human activity. There is nothing romantic or natural about the industrial mining of diamonds.

Mining production is scaled much more easily than aboveground production.

How about Aboveground Diamonds?

Our aboveground diamonds are the rarest of all diamonds: fewer than 0.01% of the world's diamonds are from our foundry.

That's because diamonds are really hard to make aboveground. Diamonds are not one of the materials that today can be created very easily. It take a lot of capital investment and modern-day craftsmanship to create diamonds in our foundry, and the rate of production is very limited.

Q
Are Diamonds a Good Investment? Will They Hold Value?
A

Paying retail prices is not investing; it’s buying a luxury good.

The moment you walk out of a retail store, the value of your diamond will be its wholesale market price. If you paid more than that, you will have lost that much from an investment perspective.

Retail diamonds today are fundamentally a luxury item just like a Vuitton bag or Louboutin shoes that you buy and wear because you love it, not because you plan to resell it.

There exists a niche market for collectors of unique million-dollar diamonds. This market behaves much like Picasso art. But retail diamonds are not part of this market.

How the wholesale market prices for diamonds develop in the future is solely a function of supply and demand. The extent of past price stability is a clear indication to any economist that the diamond cartel has been doing a good job managing supply.

How About Aboveground Diamonds?

Because our diamonds are direct from our foundry, you save two dozen incremental markups added by the many middlemen of the traditional supply chain, even towards the wholesale market pricing.

At Diamond Foundry, we are sufficiently confident in our diamonds that we warrant and back up 100% of the value of our diamonds for a lifetime.

Then priceless: You make a statement about being thoughtful and your values.

Q
How About Environmental Impact?
A

"Few industries in the world have a larger environmental and social footprint than mining." (Former CEO, Tiffany & Co) >>

Even the most "sustainable" mining site must unearth up to 250 tons of earth for a single carat of diamond.

Just recently De Beers killed 18,403 fish by draining an entire lake to access diamonds in a Canadian diamond mine. The Diamond Producers Association then produced a lengthy paid spread in the NYTimes featuring Canada as the gold standard in modern diamond mining, including photos of an attractive 32-year-old female overlooking Arctic landscapes.

The true environmental footprint of underground versus aboveground production of diamonds is now known:

How About Aboveground Diamonds?

It depends. Aboveground diamonds can be produced in India with inefficient technology and coal-fired power -- and thus may well have a larger carbon footprint than a mined diamond.

At Diamond Foundry, we are going all the way on carbon footprint: we reduced it to zero by using renewable energy. We produce the world’s first and only carbon neutral diamonds.

Q
They Call Their Diamonds Ethical Based on the Kimberley Process -- So Are They Truly?
A

The Kimberley Process Scheme narrowly defines "conflict" diamonds as rebel conflict; it does not guard against anything other form of abuse and violence. There is wide recognition that it is full of loopholes, even by the NGO's that created it.

TIME magazine's recent cover story highlighted that after 15 years of “process work”, the diamond industry is still tainted by war, human rights abuses, and child labor.

In December of 2017, the prominent NGO IMPACT quit the Kimberley system, following another NGO who left just earlier.

Q
Can the Origin of a Diamond be Traced?
A

Diamonds mined in Africa change owners a dozen times in their continent of origin alone.

When millions of dollars of diamonds can be transported in a small Cessna propeller plane, undetectable to anyone in undeveloped mining regions, how would any traceability be possible?

It is effectively impossible to track retail diamonds to their source. Masking the origin of a blood diamond and passing it off as a certified diamond is often as easy as bribing the right official.

How about Aboveground Diamonds?

Diamonds from our Foundry never leave our direct control. There is absolute certainty on their origin.

Q
Do Diamonds Really Take Billions of Years To Form?
A

Diamond can form in Earth in a matter of hours - much faster than it takes for them to grow in a foundry.

For the most part, diamonds are then stuck in the ground for a long time until they are extracted. Diamond crystals can lie in the earth for a long time as does the most common of igneous rock.

All atoms on Earth are billions of years old. The water in the oceans is billions of years old. The atoms of our aboveground diamonds are billions of years old.

Diamond producers have long touted a “billions of years” in their marketing. The suggested implication is that this makes them scarce and valuable. But this does not make sense of course.

How about Aboveground Diamonds?

Aboveground diamonds take billions of atoms to assemble quite magically just perfectly under the extreme temperature of a “sun on Earth” into the one and only arrangement that defines diamond.

Diamonds are unrivaled in their powerful symbolism. For pivotal moments in life, it is truth that matters -- and being thoughtful.

Q
What's the Difference between Synthetic and Aboveground Diamonds?
A

Aboveground diamonds are real diamonds, with the only difference being their origin is from above the ground on Earth rather than underground. Aboveground diamonds are grown from a seed that traces back to an Earth mined diamond. The technologies involved in creating aboveground diamonds are not capable of synthesizing diamonds; they can only grow more diamond on top of an existing diamond.

Like synthetic fiber simulates natural fiber in strength via a different material, synthetic diamonds simulate diamonds through other materials such as cubic zirconia but are not real diamonds.

Q
Does Mining Help Local Communities?
A

The evidence of whether mining truly helps local communities is mixed. For the most part, mining enriches local officials and the mining companies, not the local communities.

Oxfam has found that mining negatively affects communities in a multitude of ways. The “resource curse” can force people from their homes, affect their food and water sources, change their societies and expose them to harassment.

As recently as February 2016, drought-stricken Zimbabwean villagers are starving as they watch companies turn the ground over, collecting diamonds nearby.

Also: Africa is rich in diamonds but still poor.