In our “Spotlight on De Beers – the Las Vegas Presentation” from last year’s JCK Show (June 2024), Al Cook, Chief Executive Officer of the De Beers Group, told us that De Beers would no longer be in the synthetic diamond jewelry business!
He told us then, “We believe that the value of Lab Grown Diamonds lies in technology rather than in jewelry. So, De Beers will suspend production of lab grown diamonds for jewelry, and instead, we will evolve Element Six so it’s not just a leader in producing synthetic diamonds, but it becomes THE leader in synthetic diamond technology solutions. This starts with concentrating all our resources in a single world class CVD hub here in the United States, in Portland, Oregon.”
Lightbox to Close: Here’s the Reason Why Now!
Recap – De Beers brought down the price of LGDs by entering the synthetic diamond jewelry market (Lightbox), and now that prices have fallen even farther below where De Beers thought they might end up, they no longer need to be in the business.
At that time, in June 2024, Lightbox still had plenty of inventory, so they were not going away just yet. But we knew that as soon as they reduced their inventory, they would be gone.
And now here we are, almost one year later, announcing the closure of Lightbox.
De Beers Press Release
Roskin Gem News Report
Underpins De Beers Group’s commitment to natural diamonds
Element Six to retain exclusive focus on industrial applications for synthetic diamonds
De Beers Group announces its intention to close its lab-grown diamond (“LGD”) jewellery brand, Lightbox, reinforcing De Beers Group’s commitment to natural diamonds in the jewellery sector.
As part of the closure process, De Beers Group is discussing the sale of certain assets, including inventory, with potential buyers.
Why Lightbox?
According to De Beers, “Lightbox, which was established in 2018, highlighted that LGDs are a distinct product from natural diamonds, with different attributes and a different value.”
And that different value was $800 per carat. Period. Full stop.
At that time, synthetic diamonds being sold in the jewelry industry were priced well-above $800 per carat. De Beers was forcing the hand of synthetic diamond sellers to lower their retail prices, moving the synthetic diamond value further away from the natural diamond.
“Since then,” notes De Beers, “LGD prices in the jewellery sector have fallen 90% at wholesale, tracking closer to a cost-plus model as they have diverged from natural diamond prices. Reflecting this sharp price decline, De Beers Group intends to discontinue the Lightbox business.”
Job done. Now let’s get back to what they do best. “The closure will enable De Beers Group to reallocate investment to initiatives focused on reinvigorating desire for natural diamonds through category marketing.”
Lab Grown Diamonds Lies in Technology: Demand Growth for Industrial Applications
“Element Six, De Beers Group’s subsidiary that previously produced lab grown stones for Lightbox, maintains its exclusive focus on industrial solutions using synthetic diamonds. Building on its world-leading status developed over more than seven decades, Element Six is well-positioned to seize the rapidly growing potential for synthetic diamond applications across a range of future-facing technologies and applications.
“By centralising CVD (chemical vapor deposition) synthetic diamond production at its state-of-the-art facility in Oregon, US, Element Six will work with its growing global network of partners to accelerate cutting-edge technologies for high growth industries, such as semiconductors and quantum technologies. With a track record of growth and profitability, Element Six is favourably positioned to drive the future of synthetic diamond solutions in industrial and high-tech applications.”
Anglo American Still Trying to Sell Off De Beers?
Even as the industry rides multiple roller coasters — with diamond prices on a downward track, gold prices still climbing, and major mining companies in a holding pattern — Cook says, “As we move towards becoming a standalone company, we continue to optimise our business, reduce costs and build a focused De Beers that is positioned for profitable growth.”
As you might recall, just a year ago, a few mining companies appeared interested in acquiring De Beers. But with economic uncertainty looming large, that kind of ambition seems to have quieted — at least for now.
“The persistently declining value of lab-grown diamonds in jewellery underscores the growing differentiation between these factory-made products and natural diamonds. Lightbox has helped to highlight the fundamental differences in value between these two categories. Global competition continues to intensify with more low-cost lab-grown diamond production from China. In the US, supermarkets are driving down lab-grown diamond jewellery prices. Overall, we expect both the cost and price of lab-grown diamonds to fall further in the jewellery sector.
“The planned closure of Lightbox reflects our commitment to natural diamonds. We are also excited at the growing commercial potential for synthetic diamonds in the technology and industrial space.”
