Chamwe Kaira
The recently announcement by the De Beers Group that it will reintroduce its ‘A Diamond is Forever’ tagline with an additional US$20 million investment to support consumer demand in natural diamonds for the 2023 holiday season in the US and China will benefit Namibia at a time when the diamond industry is going through a tough time.
Namibia production increased by 37% to 600 000 carats in the first quarter of this year, primarily driven by the contribution from the Benguela Gem vessel, which commenced production in March 2022.
“This marketing campaign will help support demand for natural diamonds during a challenging period for the diamond industry. De Beers has a long track record of investing in highly successful campaigns to support long-term demand for natural diamonds, which benefits diamond producing countries such as Namibia, and this is another example of how the relationship with De Beers benefits diamond producing countries,” the De Beers Group press office in London said in a response to a query by Observer Money.
The overall 2023 production forecast for De Beers Group is forecast at 30 to 33 million carats. Commenting on the threats posed by the lab-grown diamond (LGDs) to Namibian diamonds, De Beers said LGDs are different products from natural diamonds however, it said there is a significant risk to natural diamonds if people are unable to detect LGDs from natural diamonds, or if consumers are not aware of the differences between the two product categories.
“This is why De Beers has invested so heavily in LGD detection technology to make sure that all LGDs can be detected. And it is why De Beers invests so substantially in marketing natural diamonds and reminding people of what makes them unique and valuable. It is also why De Beers invested in establishing the Lightbox Jewelry LGD business – Lightbox is focused on providing clear and transparent information to consumers about LGDs, making it clear what they are, what they are not, and how they are different from natural diamonds. Through all of these approaches, De Beers plays a key role in protecting its partners’ natural diamonds from the risks relating to LGDs,” De Beers said.
De Beers’ most recent consumer survey data for the US and China sees natural diamonds ranked in the top three most desired luxury items for women to acquire. In the US, four in five women see natural diamonds as carrying significant meaning and being the perfect way to mark an important moment in a relationship, while the primary motivation for LGD purchases is price.
