ALROSA is talking to several global jewellery retailers about jointly marketing the miner’s jewellery brand that uses fluorescent diamonds, as it strives to create a new niche for the natural stones, reports Reuters. The miner hopes to see its fluorescent diamonds at retail counters within a year, sold from differentiated locations within the store under its recently created Luminous Diamonds brand.
The initiative seeks new approaches to battle falling demand and competition from diamonds manufactured in laboratories and is aimed at millennials, born between the 1980s and the early 2000s, as well as Generation Z, born between the 1990s and the 2000s.
“We are completing talks with several major companies in different regions,” ALROSA Chief Executive Sergei Ivanov told Reuters.
Between 25 and 35 percent of all diamonds display fluorescence — typically a blueish glow triggered by the ultraviolet component of artificial lighting — with between 3 and 10 percent displaying strong fluorescence. The GIA does not see this as detrimental to the stone and fluorescence does not affect the stone’s grading.
But such diamonds are more difficult to sell as many traders now consider stones with more fluorescence as lower quality, resulting in them fetching discounts of between 25- and 45 percent.
ALROSA currently sells fluorescent diamonds mixed with lots of non-fluorescent stones and the initiative’s aim is to create a new market for stones with fluorescence.