De Beers, the world’s largest diamond producer by value, which was established in South Africa in 1888, originally under the ownership of the Oppenheimer dynasty and currently under the ownership of Anglo American, is up for sale. This fact is no longer news, but the announcement continues to shake the gemstone and jewellery market, impressing observers who see Anglo American’s sale of De Beers as the dawning of a new era in the industry, marked by new players and new trends. But there is something more.
De Beers will no longer produce synthetic diamonds for its Lightbox consumer brand. Speaking at the company’s JCK Las Vegas breakfast event on May 31th, 2024, De Beers CEO Al Cook outlined the changes, hinting at a return to the core business of optimizing the performance of the rough diamond trade.
But what will become of the Lightbox venture, the synthetic diamond jewellery brand launched in 2018? Element Six, the De Beers division used to supply synthetic diamonds for Lightbox jewellery since its debut, will return to its original mission of producing synthetic diamonds for industrial use only as abrasives.
Last month’s maneuver by Lightbox, which saw a 40% reduction in retail prices, did not go unnoticed. However, the steady decline in synthetic diamond prices on the market has apparently convinced De Beers that there is little to salvage.
Nevertheless, according to official statements, Lightbox will continue to operate with its accumulated inventory, but it is clear that in the long term it no longer fits with De Beers’ strategy. When the brand was launched, it was no secret that De Beers wanted to accelerate the market split between natural and synthetic diamonds, in addition to generating profits. This goal has at least been achieved, and the potential divestment is now an indication that the divergence between these markets has reached a point where the continuation of the synthetic business is no longer profitable.
