Launched in 2015, House of Eléonore is the third business conceived and founded by young serial entrepreneur Bernd Damme (1990). The Dutch startup creates diamond jewellery using gem-quality man-made diamonds that cannot be distinguished from the real thing. With world diamond production having peaked and increasing concern about the adverse environmental impact of mining, Damme believes man-made diamonds will change the face of the jewellery industry over the next few years.
How did you come up with the idea for House of Eléonore?
“I had founded two businesses, Eyewear.nl and Pelliano, and was ready for a new challenge. My personal interests led me to want to focus on a traditional product that involves craftsmanship – ideally within the atmosphere of a family business. By chance, I had made the acquaintance of the Asscher family a few years earlier. I arranged to go there for coffee, to see if they could introduce me to a few of the family businesses on my list. But things worked out differently. I was still there three hours later. Between us we concluded that there was room for innovation in the diamond industry.”
What do you plan to do differently?
“In a nutshell, by using modern technologies to produce lab-created diamonds and combining them with fair trade gold, it is possible to operate more responsibly, efficiently and rapidly than traditional jewellers and with far less impact on the environment.”
Why lab-created diamonds?
“There are now fewer than 50 operating diamond mines in the world. The general consensus is that production has peaked. This is especially true in the case of coloured diamonds, such as pink diamonds. These are only found in two mines, the largest of which, the Argyle mine in Australia, is set to close in 2020. This is already exerting upward pressure on prices – also because a growing number of investors are liquidating their positions in other resources and investing in diamonds.
At the moment the impact of these developments is mitigated by the fact that major producers, such as De Beers, have amassed a large stock over the years. But with increasing demand for diamonds, not only in the US but also and especially in emerging economies, these will eventually run out. A recent Bain report suggests that by 2019 demand is likely to exceed supply by 5 or 6%. So at some point there will be a shortage and natural diamonds will only be owned by a happy few. Lab-created diamonds cannot be visibly distinguished from mined diamonds. They can also be produced in all kinds of colours. They are not cheap, but they are affordable for almost all income levels.”
