MAN-MADE DIAMONDS — SUITS 443 



The initial reaction to this announcement was, nevertheless, spectac- 

 ular. For example, on the stock market, the total value of General 

 Electric stock increased that day by more than $300 million. Although 

 this was an important discovery, the market reaction was in this case, 

 as in other cases that might be mentioned, more emotional than analyti- 

 cal. To justify a $300-million increase in market price on the basis of 

 a diamond business, even with very favorable profit ratios, would re- 

 quire an annual sales volume greater than $3 billion, which was the 

 approximate level of General Electric total sales at that time. The 

 total worldwide sales of the diamond industry at that time were about 

 i/io of this level. After a few days, during which such calculations 

 were undoubtedly performed, the price of General Electric stock 

 "recovered" to nearly its former level. 



The announcement released in 1955 made it clear that Man-Made 

 diamonds were small and were not of gem quality. One might jump to 

 the conclusion that only diamond gems are really valuable. To put this 

 question in proper perspective, one must bear in mind that the bulk of 

 diamond production from all sources, worldwide, is in industrial grades 

 with a total market value of about $60 million. The very much smaller 

 physical volume of gem diamond sells at a very much larger unit price 

 to achieve a worldwide sales level of about $300 million per annum. 



A few points should be made concerning the value of diamond, the 

 price of diamond, and some factors which determine both. Diamond 

 has only one unique property — hardness — and this property is funda- 

 mental to its industrial use and its usefulness as a gem. However, 

 hardness is a necessary but not a sufficient attribute of a crystal to be 

 used as a gem. As a gem, diamond has other important })roperties such 

 as a high refractive index and must have other additional qualities, 

 such as size, color, and of)tical clarity. But, without its exceptional 

 hardness, diamond would not be preeminent as a gem. A higher re- 

 fractive index is available in other crystals, especially titania, and large 

 clear crystals of many other minerals are readily available. 



Many persons have had the experience of wearing a ruby or sap- 

 phire gem in a ring for a period of years. A careful examination of 

 the stone will show definite evidence of wear. On a true hardness 

 scale, however, as figure 2 shows, diamond is about five times harder 

 than ruby and sapphire and it will accommodate the appreciable wear 

 requirements of a gem stone. Thus, diamond is probably the only gem 

 which can be used in an engagement ring which will survive the ideal 

 marriage. 



The same unique property^ — hardness — is the essence of diamond's 

 industrial usefulness. This reduces in most cases to the ability, as in 

 the case of a gem, to retain sharp corners under conditions of wear. 

 The conditions of wear in industrial applications are, of course, much 



