Gemesis Changes to ‘Pure Grown Diamonds Inc.’

Gemesis Inc. has now been rebranded as Pure Grown Diamonds Inc. effective June 27. Pure Grown Diamonds will continue to provide man-made diamonds to the retail and wholesale trade.

Newly appointed CEO, Lisa Bissell, who is leading the new campaign said, “Each of us in the diamond industry is proud of our values, especially of honesty and disclosure. Lab-grown diamonds are truly innovative and represent an incredible category. The new name reinforces our commitment to disclosure and transparency.”

Pure Grown Diamonds will embrace disclosure, education and training, according to Bissell. “We will continue working to make lab-grown diamonds a choice for consumers and a valuable opportunity for the industry. Offering lab-grown diamonds that are certified and sustainable also supports existing industry commitments to responsible sourcing.”

Pure Grown Diamonds operates as a privately held company based in New York and manufactures type IIa, gem-quality laboratory grown diamonds and also manufactures jewellery.

Indian Committee Unveils Protocols to Track, Segregate Natural and Lab-grown Diamonds

The Natural Diamond Monitoring Committee (NDMC) of the Indian gem and jewellery industry has issued a report outlining a range of protocols that it intends to put in place to curb the undisclosed mixing of lab-grown or synthetic diamonds with parcels of natural diamonds.

The NDMC, which has representation from India’s Gem & Jewellery Export Promotion Council (GJEPC), the Bharat Diamond Bourse (BDB), the All-India Gem & Jewellery Trade Federation (GJF), the Gemological Institute of America (GIA) and several other industry bodies, has been working on this issue for the past four months. It’s studies and consultations spanned eight countries in three continents and it took on board inputs from a variety of industry stakeholders including manufacturers, retailers, equipment firms, testing laboratories, global trade bodies, legal firms, consultants and industry experts.

The NDMC’s studies indicate that contrary to much of what is believed, the quantities of lab-grown diamonds in the marketplace are relatively small. It estimates gem-quality synthetic rough diamond production at less than 350,000 carats as against the over 125 million carats of natural gem-quality rough. The NDMC believes that whatever undisclosed mixing is currently taking place is, therefore, on a fairly small scale.

The NDMC believes that the detection equipment ranging from portable, standalone desktop machines to large, spectroscopy-based machinery developed by several firms including De Beers, the GIA and the HRD is highly effective. This equipment has been used by the gem and jewellery industry for several years but, the NDMC points out, this hasn’t been on a systematic basis.

The intended protocols cover four areas and are intended to bring about greater traceability of synthetics and the better enforcement of their segregation from natural diamonds.

An NDMC statement has outlined four protocols and is quoted below.

Regulatory: These solutions will target greater traceability of goods in the value chain and penalties for those found to be indulging in undisclosed mixing. The two most significant solutions we have proposed are to firstly have a more granular HS Code system to track the global flow of synthetic diamonds and secondly, to empower and encourage Trade bodies to make modifications in their Articles and Constitutions to clearly outline undisclosed mixing as an unfair practice and to outline and implement strict penal measures against players found to be indulging in such activities. Apart from these measures, we also propose a change to the Consumer Protection Act to give greater protection to purchasers.

Commercial: These solutions have been designed to ensure greater accountability and trust within Trade. We have worked with WFDB on these mechanisms and already put in place suggested standard declarations to accompany Trade invoices globally, which would provide clarity to buyers on the nature of the goods being purchased.

Process: We have designed solutions for players to minimise potential for undisclosed mixing. These include rigorous testing protocols for goods as well as a thorough KYC process in line with the Prevention of Money-Laundering Rules. These measures will be supported by putting in place adequate machines for testing and systems for tracking and storing all transaction data – including test logs and invoices – and accompanying declarations.

Technology: NDMC will take the lead in driving more sophisticated, rapid and scalable technology to assist players in segregation of diamonds. To this end, a centralised testing laboratory has already been set up within the BDB premises which can be utilised by any player wishing to test parcels or individual diamonds. More such laboratories will be set up soon. In parallel, NDMC will drive technology symposiums, seminars and interactions with technology players at an individual and group level to rapidly drive forward scalable and affordable solutions for the industry.

We are confident that these measures will go a long way in safeguarding the interests of all value-chain participants, each of whom has a large stake in ensuring a transparent ecosystem. Moving forward, the NDMC will also continuously monitor solution implementation.

We have involved trade bodies and players at a global level in all our efforts and have outlined key actions that each stakeholder will undertake in implementing these solutions. The final report containing details of these solutions can be found on the GJEPC website. We would like to thank all those players who have cooperated in this study – including GJEPC, BDB, WFDB, AWDC, GIA, GJF, MDMA and also several players in the natural and synthetic diamonds ecosystems that have been forthcoming, cooperative and supportive of our initiative.

HARRY LEVY: Along With Synthetics, Natural Diamonds Need Full Disclosure

Ever since gem quality synthetic diamonds came into the market, Harry Levy, president of the London Diamond Bourse, Chairman of the International Diamond Council (IDC) and president of the Gemological Association of Great Britain (Gem-A), has been a powerful voice in the discussions about the need to recognise them for they are. He has argued why the diamond, gem and jewellery industry and trade should not fight them and voiced his opinion on what terminology or nomenclature ought to be employed when referring to these stones.

The following interview was conducted with Levy by veteran diamond industry consultant and spokesman YA’AKOV ALMOR, who is also IDC’s director of communications.

• Is the confusion — and possibly panic — about synthetic diamonds over, or are we still in a stage of denial when it comes to synthetic diamond s in the marketplace?

There is still confusion — and some denial too — on a number of levels and in various sectors of the diamond and jewellery industry. It seems there are plenty of players in the polished diamond trade who still hope that synthetic diamonds are a passing phenomenon, and that as long as we do not talk about them, they will simply go away.

Last year, the Israel Diamond Exchange (IDE) re-issued a directive that bans synthetic diamond from its trading floor, arguing that they may be confused with natural diamonds and mixed up or interchanged. In my fifty years of holding bourse membership, I have rarely known of stones being confused or changed. While the IDE has acknowledged that synthetic diamonds are a legitimate product, by banning these stones from their trading floor, they support the trade in natural diamonds, but at the same time hinder the trade in synthetic diamonds.

There is also still confusion — and dispute — about what synthetic diamonds need to be called. A few months ago, The De Beers Group of companies published a booklet, aimed at their sightholders, entitled Undisclosed Synthetics, What You Need to Know. On the one hand the authors refer their readers to the nomenclature defined by CIBJO, the World Jewellery Confederation and the US’ Federal Trade Commission (FTC). At the same time, however, they encouraged their readers not to use the term ‘synthetic diamond’, but only to use the descriptive adjective ‘synthetic.’

As such the authors were in transgression of their own directives and advice, undermining “the integrity of the entire diamond supply chain, damaging both trade and consumer confidence in buying diamonds.” Of course, De Beers has since retracted the booklet, but I give this example because it illustrates the lack of resolve — and possibly understanding —- on what nomenclature is to be employed.

I’d like to give another example that illustrates the lack of consensus on — or the acceptance of — nomenclature.  In April, a well-known trade press journalist, in a blog wrote that “there’s no way around it, synthetic means fake,” and that he calls a synthetic diamond as such because he is “not ‘bound’ by any authoritative group.” Clearly, there is still a lot of work to be done.

• This month, the congress of CIBJO, the World Jewellery Confederation and the Las Vegas conference of the Accredited Gemologists Association (AGA) will both have synthetic diamonds high on their discussion agendas and in mid-June, the topic will also be discussed at the 36^th World Diamond Congress in Antwerp. What will the point of departure be for a discussion on synthetic diamonds? 

We need to be frank and more resourceful. During the past months there have been several meetings in Antwerp and India, designed to prevent synthetic diamonds getting into the supply chain. In March, the World Federation of Diamond Bourses (WFDB) issued a six-page statement “the WFDB Charter on Disclosure of synthetic, treated natural and natural diamonds.” Among others, the charter recommends that we print statements on our invoices that all the goods sold are (guaranteed to be) natural, and also untreated.

While this document was published in good faith, it also raises a lot of questions. For instance, I wonder how many undisclosed HPHT diamonds circulate in the supply chains. While I can fully trust my own supplier for his honesty, integrity, ethical standards, his knowledge of gemmology is probably no greater than mine. So how would I know, and when?

A synthetic diamond will get into the supply chain when one person buys a synthetic diamond and knowingly sells it as a diamond without disclosure. Should this be discovered further down the supply chain, we are advocating to punish those people who show us a purchase invoice with the above statement, using it in their defence, i.e. that they bought the stone in good faith. This is not an excuse that would stand up in any court of law, anywhere in the world. It is hearsay evidence, and the seller can be regarded as having acted without due diligence. Printing such a statement of disclosure solves very little, as it is a positive statement which may prove to be a lie. Therefore, without such a statement the seller may be accused of ignorance, with it, he will be probably be accused of fraud.

• What is the solution? 

The simple solution is to call diamonds ‘natural diamonds’.  For years, the default position of the diamond trade has been that that a ‘diamond’ is regarded as a ‘natural diamond’ when the term is used without further qualification.  However, this trade rule is not known among consumers.

But synthetic diamonds are also diamonds, the only difference being their origin, and this does not stop them from being called diamonds. I am not advocating that synthetic diamonds should be sold as diamond but they need disclosure, and this means that natural diamonds will be needing disclosure as well!

I think that we do not need to try and re-invent the wheel. Let’s look at how the coloured gemstone trade has dealt — and deals — with synthetic gemstones and take a page out of their book. The coloured gemstone industry has been coping with synthetic counterparts of their most important stones for a very long time, mostly because they are — contrary to synthetic diamonds — relatively easy to produce. A variety of synthetic rubies, sapphires, emeralds, and a large group of other synthetic gemstones, have been around for more than a century, and continue to be produced.

Have these products killed the coloured gemstone industry?  Not really. Are they a problem? Sometimes. How do our colleagues in the coloured gemstone business deal with them? They cope with it by getting educated and by insisting, by means of strict rules and regulations, that synthetic coloured gemstones are disclosed properly and honestly when traded and sold.  By the way, natural coloured gemstones are more popular than ever before, and their prices keep rising.

Also, let’s take a look at the pearl industry and trade. It is simply wrong to believe that cultured pearls have driven out natural pearls, or to conclude that a similar thing can or will happen to diamonds. Cultured pearls became popular because natural pearls became very rare and very hard to find. This came about because of over fishing of the oysters and pollution from oil production in the Persian Gulf. Today natural pearls are rarely found; they fetch very high prices and usually can only be found in top market jewellery stores and at prestigious auctions. At present there is a debate in the pearl business to drop the term ‘cultured’ for pearls — as 99.9 percent of pearls traded are cultured pearls anyway  — and call cultured pearls simply ‘pearls’ and qualify the term for natural pearls and sell these as ‘natural pearls.’

Of course, there is no chance of a similar development happening to synthetic diamonds, as there are too many natural diamonds around, and excellent prospects exist of finding many more through mining.

• What is you recommendation to industry leaders at these gatherings?

We need to try and reach agreement that our ‘prime directive’ is to protect the trade in natural diamonds and our industry leaders should produce arguments as to why natural stones are better than synthetic ones. One powerful argument is, of course, that natural diamonds are rare, can only be mined once, and that each and every stone is unique due to its provenance and characteristics. Quartz is very abundant, hence it is cheap. The supply of synthetic diamonds is limitless! Natural diamonds have aesthetic, emotional and historic value, while synthetic diamonds have none of these.

To allay another fear often expressed in the market, we are not helping producers of synthetic diamonds to sell their products; we are protecting the trade in naturals by giving as much information as possible to consumers for them to make an informed choice! We will give the impression that synthetic diamonds are “better” than natural ones if we continue to hide them. Being transparent will help everyone, being invisible will help no one.

• There are currently practical problems that need to be addressed such as the use of small, synthetic diamonds in jewellery. What are your views on this?

You’re speaking of smaller stones, most often below 10 points. Here positive detection will be difficult; the synthetic product will be better looking than the lower grade natural stones and will be considerably cheaper when compared to similar looking natural stones. I envisage consumers will eventually demand some sort of guarantee and identification for larger stones, that they are in fact natural. The demand for such specific identification statements (concerning smaller diamonds ed.) may very well outgrow the demand for grading reports of (larger, ed.) natural stones.

Up to this point in time, all the attempts at solutions advocated by the trade have looked downstream of the distribution chain. Debates about terminology and how to disclose will probably go on for some years yet. But maybe we should look to the upper part of the supply chain for the solutions. 

We must identify the synthetic diamond producers, not the cutters and distributors. We must identify those who produce the machines that make synthetic diamonds. I don’t know if we will get any resistance from them but it is essential we know who these people are and those who buy these machines. In the coloured gemstone business, producers of synthetic gems are part and parcel of the community.

They share their knowledge and inform their peers of what they do. We need to encourage the producers of synthetic diamonds to become part of our industry, to sort themselves into an organisation, as well. Only then, by becoming discussion partners, can we come to agreements with regard to all the above mentioned issues. Under no circumstances should they be allowed to remain ‘underground…’

100 Tons of Synthetic Diamonds Created a Year, Account for 9 of 10 Carats Used

Nearly 100 tons of diamonds are synthesised every year, providing almost nine out of ten carats used in the world. In four decades, synthetic diamond production has exceeded the historical output of all the world’s mines several times over. The largest single crystal diamond produced by De Beers in 1992 was of 34.8 carat. This data was given to the press by Dr M.D. Sastry, head of the Gemmological Institute of India’s (GII) research and development department.

Sastry was speaking at a synthetics awareness program conducted by the GII at the Diamond Detection and Resources Centre (DDRC) of the Bharat Diamond Bourse (BDB) on Saturday. He noted that the data indicated how deep the penetration of synthetic diamonds was into the global market. This in turn underlined the need for their correct identification by the diamond industry as with such large quantities, there naturally was an increased chance of undisclosed synthetics being mixed with parcels of natural diamonds.

He concluded the programme by saying that from their modest beginnings in 1955, dramatic improvements have taken place in the synthesis of diamonds by High Pressure High Temperature (HPHT) and Chemical Vapour Deposition (CVD) techniques.

The growth of synthetic diamond production necessitates the development of advanced scientific methods for distinguishing them from naturals, Sastry observed. Reassuring the Indian diamond industry, he added that the methods currently followed at the DDRC were up to the challenge of the quick testing of diamonds. As on today, up to 500 diamonds a day can easily be tested at the DDRC.