The end for synthetic diamonds: De Beers discontinues Lightbox

Diamond giant De Beers also sold synthetic diamonds under the name Lightbox. Now the company is discontinuing this business – at least for jewelry. De Beers intends to continue supplying synthetic diamonds to the technology sector in the future. The reason for the closure is the sharp drop in prices.

Left: Brilliant-cut diamonds. © Daniel Dan/Unsplash.com

Away from jewelry, towards technology

After seven years on the market, the world's largest diamond dealer, De Beers, has decided to exit the synthetic diamond business. The Lightbox website is currently still accessible, but according to De Beers CEO Al Cook, it will be shut down in the coming months. JCK online reports.

Last year during the JCK Las Vegas, Al Cook announced that they would no longer produce diamonds for Lightbox and that the factory in Portland, Oregon, which was originally intended to produce the stones, would now produce industrial diamonds for De Beers' technology division, Element Six.

What would happen to Lightbox as a jewelry brand was not yet clear at that time, but the brand was relaunched after the entry price was reduced to $500 per carat.

Sharp price drop: “Lab-grown in the supermarket”

The De Beers CEO ultimately decided against continuing Lightbox because, according to his own statements, it no longer made sense, according to JCK online. The magazine quotes Al Cook as saying:

"Over the past year, the price of lab-grown diamonds has fallen sharply. We're at the point where you can buy lab-grown diamonds at the supermarket for $200. Our decision was to proactively downsize our business rather than hang onto parts that are no longer core to our business."

Industrial supply as the right decision

Integrating the Portland lab diamond factory into Element Six's engineering division is a wise decision for De Beers. Al Cook explains: "We have found the world's best facility for producing technology diamonds in the right place and in the right country."

The De Beers Group statement said the end of Lightbox will allow the company to reallocate investments to revive the desire for natural diamonds through marketing.

According to the company's own reports, Lightbox incurred a loss of $101.3 million in 2023, a huge increase compared to the previous year, 2022, when it lost $22.3 million. However, according to CEO Al Cook, the increase is likely related to the construction of the Portland factory. 

De Beers conclusion: Lab diamonds “largely successful”

Despite the end of Lightbox and the significant financial losses, De Beers considers its foray into synthetic diamonds "largely successful." CEO Cook explains:

"Looking at the impact Lightbox had on synthetic diamond prices, I'd say it was the first successful attempt to demonstrate the difference between synthetic and natural diamonds. At that time, natural diamonds dominated lab diamond prices. Since then, lab diamond prices have fallen by over 90 percent. If we were to go back to 2018 and ask my predecessors what they wanted to achieve, I think they would say their vision was achieved."

The CEO emphasizes that De Beers will continue to play an important role in distinguishing between natural and synthetic diamonds. Just last year, De Beers launched a new diamond authentication device called DiamondProof.

When De Beers launched Lightbox in 2018, its price of $800 per carat shocked the world, but the London-based company was one of the first to be able to mass-produce the stones. Lightbox was originally intended to be established as a fashion brand. Critics warned against legitimizing a product that was still in its infancy at the time. 

Over the years, Lightbox attracted more interest from retailers than from consumers. The business outperformed non-branded jewelry in the bridal sector. Engagement rings were also briefly part of Lightbox's product range in 2023, but were quickly withdrawn from the market following an outcry from the industry.

Sources: De Beers, JCK online, The Gazette UK