There are two major issues that we intend to cover in this report. The first relates to the falling prices of synthetic diamonds, the second refers to the effect (if any) that, this would have on Glitzkoin and the GTN token.
No one better than Glitzkoin Russsian diamond expert Olga Rosina to explain, the fall in prices of synthetic diamonds. In her words, ‘… synthetic diamonds never had any real value, it was always marketing hype and high production costs, that ‘seemed’ to make them valuable …’.
Synthetic diamonds are made in sophisticated laboratories, the stones match the physical, optical and chemical properties of natural diamonds. True diamond lovers adore natural diamonds for their, amazing story and rarity and of course for their natural beauty. It takes at least around 3 billion years for a natural diamond to be formed. It is fair to say that, there is a very limited amount of rough diamonds left to be mined.
The ‘rarity’ of synthetic diamonds hinges around two factors – production equipment is quite expensive even today and the number of people, who understand the production process are few. The technical process required to manufacture, synthetic diamonds in larger sizes is quite complex.
We asked the Russian diamond expert to explain why, there has been a steady fall in the price of synthetic diamonds. She explained, ‘… the number of production centers, churning out synthetic diamonds has shown a rapid increase. The technical process to manufacture these stones, has been streamlined and many more people understand it today. Making larger synthetic diamonds will soon become a standardized process, you are bound to see larger volumes of 3 to 5 carat sizes. All these factors have worked to reduce the price of synthetic diamonds …’.
Now how will this affect the Glitzkoin project and the GTN token. To begin with, it must be clarified that, Glitzkoin CEO and diamond veteran Navneet Goenka has repeatedly stated that, synthetic and fake diamonds will have no place on the DiaEx diamond trading platform. It is therefore clear that the falling prices of synthetic diamonds, will have no negative impact on Glitzkoin.
And should you spend your money on synthetic diamonds. All is well if you understand exactly what you are paying for. It helps to have some knowledge about the price logistics of these synthetic stones. If you had purchased a 2 carat synthetic diamond about 2 years ago and paid around, $4,000 for the stone, the same stone would be worth about $1,200 today. Don’t be surprised if that falls to about $500 in the next 2 to 3 years.