Peregrine Diamonds Ltd. PGDIF

RE:RE:RE:RE:RE:RE:Debeers synthetic News

[ekim]

100% pandora's box.
No one can foresee the future as to this decision by De Beers.

In the short term, it will absolutely slaughter DiCaprio's Diamond Foundry.
I wonder if they got wind of this as they closed up their bricks and mortar shop a few months ago.

Synthetic buying will be about price point and buying something that sparkles in the light...and yes if you have seen a 2 carat brilliant cut stone in the light, it sparkles like nothing else. CZ doesn't have the same sparkle...but these synthetics do. I would suspect that De Beers will be cutting these...probably mostly by machine and set in Jewellery. They will want to get the lowest price point possible and add a 20% or so margin on top of that. That is where this business model differs from the others. They wanted to get a 10 to 20% discount on natural prices and suck up the profit margin between actual cost and this discount. De Beers will bring the price down to at cost plus a margin. 

If I were going to guess...I would say that De Beers offers this to the market in limited quantities to control the price point of that sector of the market.

Based on current production in the diamond sector and lack of diamond exploration....in 50 years, the jewellery store will have a very limited (and very expensive) natural diamond section and a lot of synthetics for sale.

LONG...PGD

EKIM