Diamonds Are Going To Get A Lot Cheaper...

May 31, 2001
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The New Diamond Age

I've only copied and pasted the first page, the whole thing is worth reading though. Apparently De Beers STILL has trouble telling the difference betweem these manufactured diamonds and natural ones. :p

[/quote]The New Diamond Age

Armed with inexpensive, mass-produced gems, two startups are launching an assault on the De Beers cartel.
Next up: the computing industry.


By Joshua Davis

Aron Weingarten brings the yellow diamond up to the stainless steel jeweler's loupe he holds against his eye. We are in Antwerp, Belgium, in Weingarten's marbled and gilded living room on the edge of the city's gem district, the center of the diamond universe. Nearly 80 percent of the world's rough and polished diamonds move through the hands of Belgian gem traders like Weingarten, a dealer who wears the thick beard and black suit of the Hasidim.

"This is very rare stone," he says, almost to himself, in thickly accented English. "Yellow diamonds of this color are very hard to find. It is probably worth 10, maybe 15 thousand dollars."

"I have two more exactly like it in my pocket," I tell him.

He puts the diamond down and looks at me seriously for the first time. I place the other two stones on the table. They are all the same color and size. To find three nearly identical yellow diamonds is like flipping a coin 10,000 times and never seeing tails.

"These are cubic zirconium?" Weingarten says without much hope.

"No, they're real," I tell him. "But they were made by a machine in Florida for less than a hundred dollars."

Weingarten shifts uncomfortably in his chair and stares at the glittering gems on his dining room table. "Unless they can be detected," he says, "these stones will bankrupt the industry."

Put pure carbon under enough heat and pressure - say, 2,200 degrees Fahrenheit and 50,000 atmospheres - and it will crystallize into the hardest material known. Those were the conditions that first forged diamonds deep in Earth's mantle 3.3 billion years ago. Replicating that environment in a lab isn't easy, but that hasn't kept dreamers from trying. Since the mid-19th century, dozens of these modern alchemists have been injured in accidents and explosions while attempting to manufacture diamonds.

Recent decades have seen some modest successes. Starting in the 1950s, engineers managed to produce tiny crystals for industrial purposes - to coat saws, drill bits, and grinding wheels. But this summer, the first wave of gem-quality manufactured diamonds began to hit the market. They are grown in a warehouse in Florida by a roomful of Russian-designed machines spitting out 3-carat roughs 24 hours a day, seven days a week. A second company, in Boston, has perfected a completely different process for making near-flawless diamonds and plans to begin marketing them by year's end. This sudden arrival of mass-produced gems threatens to alter the public's perception of diamonds - and to transform the $7 billion industry. More intriguing, it opens the door to the development of diamond-based semiconductors.

Diamond, it turns out, is a geek's best friend. Not only is it the hardest substance known, it also has the highest thermal conductivity - tremendous heat can pass through it without causing damage. Today's speedy microprocessors run hot - at upwards of 200 degrees Fahrenheit. In fact, they can't go much faster without failing. Diamond microchips, on the other hand, could handle much higher temperatures, allowing them to run at speeds that would liquefy ordinary silicon. But manufacturers have been loath even to consider using the precious material, because it has never been possible to produce large diamond wafers affordably. With the arrival of Gemesis, the Florida-based company, and Apollo Diamond, in Boston, that is changing. Both startups plan to use the diamond jewelry business to finance their attempt to reshape the semiconducting world.

But first things first. Before anyone reinvents the chip industry, they'll have to prove they can produce large volumes of cheap diamonds. Beyond Gemesis and Apollo, one company is convinced there's something real here: De Beers Diamond Trading Company. The London-based cartel has monopolized the diamond business for 115 years, forcing out rivals by ruthlessly controlling supply. But the sudden appearance of multicarat, gem-quality synthetics has sent De Beers scrambling. Several years ago, it set up what it calls the Gem Defensive Programme - a none too subtle campaign to warn jewelers and the public about the arrival of manufactured diamonds. At no charge, the company is supplying gem labs with sophisticated machines designed to help distinguish man-made from mined stones.

In its long history, De Beers has survived African insurrection, shrugged off American antitrust litigation, sidestepped criticism that it exploits third world workers, and contended with Australian, Siberian, and Canadian diamond discoveries. The firm has a huge advertising budget and a stranglehold on diamond distribution channels. But there's one thing De Beers doesn't have: retired brigadier general Carter Clarke.

Carter Clarke, 75, has been retired from the Army for nearly 30 years, but he never lost the air of command. When he walks into Gemesis - the company he founded in 1996 to make diamonds - the staff stands at attention to greet him. It just feels like the right thing to do. Particularly since "the General," as he's known, continually salutes them as if they were troops heading into battle. "I was in combat in Korea and 'Nam," he says after greeting me with a salute in the office lobby. "You better believe I can handle the diamond business."

Clarke slaps me hard on the back, and we set off on a tour of his new 30,000-square-foot factory, located in an industrial park outside Sarasota, Florida. The building is slated to house diamond-growing machines, which look like metallic medicine balls on life support. Twenty-seven machines are now up and running. Gemesis expects to add eight more every month, eventually installing 250 in this warehouse.

In other words, the General is preparing a first strike on the diamond business. "Right now, we only threaten the way De Beers wants the consumer to think of a diamond," he says, noting that his current monthly output doesn't even equal that of a small mine. "But imagine what happens when we fill this warehouse and then the one next door," he says with a grin. "Then I'll have myself a proper diamond mine."

Clarke didn't set out to become a gem baron. He stumbled into this during a 1995 trip to Moscow. His company at the time - Security Tag Systems - had pioneered those clunky antitheft devices attached to clothes at retail stores. Following up on a report about a Russian antitheft technology, Clarke came across Yuriy Semenov, who was in charge of the High Tech Bureau, a government initiative to sell Soviet-era military research to Western investors. Semenov had a better idea for the General: "How would you like to grow diamonds?"[/quote]
 

RaynorWolfcastle

Diamond Member
Feb 8, 2001
8,968
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in fairness I found them all in the archives and only because I remembered reading them a long time ago... Does that tell you anything about how new the article is? ;)
 

Kadarin

Lifer
Nov 23, 2001
44,303
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How much do you want to bet DeBeers tries to adopt RIAA tactics and attempt to legislate these guys out of business?
 
May 31, 2001
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Originally posted by: RaynorWolfcastle
in fairness I found them all in the archives and only because I remembered reading them a long time ago... Does that tell you anything about how new the article is? ;)

I knew the article was not new, just figured I would post it since I saw the other diamond thread, and search did not turn it up.
 

Crazymofo

Platinum Member
May 14, 2003
2,339
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Originally posted by: Astaroth33
How much do you want to bet DeBeers tries to adopt RIAA tactics and attempt to legislate these guys out of business?

Prolly already trying!
 
May 31, 2001
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Originally posted by: Astaroth33
How much do you want to bet DeBeers tries to adopt RIAA tactics and attempt to legislate these guys out of business?

They are already trying it, by pushing the FTC to force them to label all of these diamonds as artificial. If no one can tell the difference though, who cares? Remove said label, sell manufactured diamonds as real, crash the price.
 

EyeMWing

Banned
Jun 13, 2003
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Heh. I just re-read that article today. In the hard-copy of Wired. The cover picture is... interesting. It's a woman covered in diamonds
 

OS

Lifer
Oct 11, 1999
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at 100 bucks, I'd like to buy one just to put on my desk as kind of a trinket.
 

TallBill

Lifer
Apr 29, 2001
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So, for now, Clarke is sticking with cultured. But in the end, he insists, it won't really matter. "If you give a woman a choice between a 2-carat stone and a 1-carat stone and everything else is the same, including the price, what's she gonna choose?" he demands. "Does she care if it's synthetic or not? Is anybody at a party going to walk up to her and ask, 'Is that synthetic?' There's no way in hell. So I'll bite your ass if she chooses the smaller one."
 

Conky

Lifer
May 9, 2001
10,709
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Genuine diamonds are not actually that rare. It's the marketing and control of supply by DeBeers that keeps the prices high.

/cliffy claven

:D
 

TallBill

Lifer
Apr 29, 2001
46,044
62
91
Originally posted by: Crazyfool
Genuine diamonds are not actually that rare. It's the marketing and control of supply by DeBeers that keeps the prices high.

/cliffy claven

:D

I wonder how many they actually have, and where :p
 

Zenmervolt

Elite member
Oct 22, 2000
24,510
13
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"If you go into a florist and buy a beautiful orchid, it's not grown in some steamy hot jungle in Central America," he says. "It's grown in a hothouse somewhere in California. But that doesn't change the fact that it's a beautiful orchid."

Great quote. :)

ZV
 

isekii

Lifer
Mar 16, 2001
28,578
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Originally posted by: TallBill
Originally posted by: Crazyfool
Genuine diamonds are not actually that rare. It's the marketing and control of supply by DeBeers that keeps the prices high.

/cliffy claven

:D

I wonder how many they actually have, and where :p

They prolly still have them in the Diamond mines in Africa.
 

Imaginer

Diamond Member
Oct 15, 1999
8,076
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What interest me the most out of that is the fact that...

AMD Athlon DIAMOND 64! :D :D

Or possibly in the future perhaps?
 

C'DaleRider

Guest
Jan 13, 2000
3,048
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Originally posted by: TallBill
Originally posted by: Crazyfool
Genuine diamonds are not actually that rare. It's the marketing and control of supply by DeBeers that keeps the prices high.

/cliffy claven

:D

I wonder how many they actually have, and where :p

Did anyone see the trip through the Russian Siberian diamond vaults on ABC a few years ago? Millions and millions of uncut, rough diamonds just sitting in cardboard boxes.........room after room filled with steel shelves after shelves jammed with boxes filled with diamonds. The Russian escort alluded to DeBeers paying an "incentive" to the Russian gov't to keep the flood of these stones off the market.

Diamonds are actually, as mentioned before, a fairly common gemstone. You want scarce ... try emeralds, sapphires, and rubies in flawless condition. The so-called colored gemstones are many times more scarce than diamonds.
 

LAUST

Diamond Member
Sep 13, 2000
8,957
1
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De Beers scientists wrote in 1996, when the company unveiled plans to develop authentication devices. "Unfortunately, our research has led us to conclude that it is not feasible at this time to produce such an ideal instrument, inasmuch as synthetic diamonds are still diamonds physically and chemically."


I don't care if it's man made or not, same materials, same ROCK (is all it is) I'd prefer the cheaper one myself :) anyone worried about it being authentic is just pissed cause they wasted money on them before ;)
 

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