Lab-Grown Diamonds Come into Their Own

> And larger stones get laser-inscribed, so that the manufactured stones literally have words like "lab-grown" written right on them.

Why?

They are smaller than people think. Not counting the years of R&D, one average growth cycle for one white diamond actually costs more than what mining companies typically report for their cost-per-rough-carat dug from the ground. Mines use giant diesel earth moving and processing equipment, while we use scientists, electricity, and advanced machinery and alloys, but the variable cost-per-carat for rough diamonds are somewhat comparable.

From there, the cost for polishing, grading reports, jewelry, logistics, marketing, etc. are all basically the same whether the diamond was grown or mined. White grown diamonds are generally 10-30% less expensive at retail than mined diamonds, however most of that is just due to lean, vertically integrated companies. We grow, cut, distribute and retail our diamonds as well as jewelry, so have a bigger slice of the rough-to-retail pie. That extra margin isn't huge, but is enough to sustain the business as well as progress the research, development and production. Mined diamonds pass through many more hands between the mine and the consumer, and each step adds some markup. A mined diamond entity that only sells rough, only polishes, or only buys and sells polished mined diamonds at wholesale would see smaller margins, but that can be made up for in greater volume of mined diamonds traded.

It is also worth pointing out that the diamond success rate is sustainable, but not every growth cycle is profitable. While we can monitor the external HPHT equipment, we cannot see the actual diamond growth until after the cycle is complete. For example, a cycle may run for two weeks, but we find out afterward that it stopped growing on day three, or there were some bad inclusions on day six, and what could have been polished into a one carat gemstone (and cost the same to grow) may not yield anything, or may only yield a much smaller gemstone. The total production cost has to be averaged over the total successful sales. This includes growing diamonds that sit in inventory for a long time due to lower clarity, less desirable colors, etc.

I just added this related comment: https://news.ycombinator.com/item?id=13089809

TL;DR They have very similar cost structures as mined diamonds (rough [mine vs. grow], polishing, grading, etc.), plus the R&D and failure/success rates.

Yes, we can sell brand-new presses along with the IP and recipes, or can consider a JV, production contract or some similar arrangement.

Otherwise, for HPHT, you can find used BARS presses, mostly in Russia. They are certainly capable of growing diamonds, but are like comparing emissions, performance and fuel efficiency of a 1980s carbureted vehicle to a 2016 fuel-injected vehicle. Used cubic presses can be found in China, however those presses were built for grit and powder, which run short cycles (Companies sell new CVD reactors, as they have more applications than just diamonds, but they do not come with any diamond knowhow.

With all of those, you will have to develop your own recipes and growth cells or methods. Unless you have plenty of time and advanced degrees in physics, chemistry and/or material science, it will probably be an exercise in futility.

The original Florida-based Gemesis is a good example of this. They were VC funded and bought BARS presses, that at-the-time, could only grow orange diamonds. Gemesis made dozens if not hundreds of these presses however, when they ran out of money years later, they could still only grow orange diamonds. A Singapore company bought those presses (mostly to grow CVD seeds and HPHT-treat CVD rough) and to my knowledge, still can't reliably grow blue or colorless diamonds with those BARS presses.

For a code analogy, they basically "forked" the orange recipes when they bought the machines from Russia, and haven't been able to merge any upstream advancements since. BARS have basically been deprecated, so that stack is no longer developed.

Diamon vs Mossanite: https://www.youtube.com/watch?v=XZE3Vkb85Z4