Synthetic diamonds need to be regulated
DUBAI — The increasing penetration of synthetics, limited marketing of real diamonds and changing customer preferences have all led to increased volatility in the diamond industry, experts at the Dubai Diamond Conference 2017 noted.
While the diamond trade is unlikely to be largely affected by the penetration of synthetic diamonds, the focus should remain on protecting consumers through education and regulation, officials said.
Dr Obolokile Obakeng, acting permanent secretary, Minerals, Energy and Water Resources, Republic of Botswana, said demand for diamonds has grown strongly from the early 2000s, propelled by emerging markets such as China and the US.
“However, the demand slowed down 2010 onwards,” he said. “Rough diamond prices are expected to grow over the long term. However, all these projections depend on the level of penetration by synthetics over the same period. The quality of synthetic diamonds have greatly improved over time, studies show.”
He explained that one of the ways of improving efficiencies in the diamond chain to combat the threat posed by synthetic stones is through innovation, partnerships between vendors and regulation. “It is in the interest of governments to create policies that can enable the education of consumers to differentiate between natural and synthetic diamonds.”
Obakeng’s thoughts were echoed by Tom Moses, EVP and chief research and laboratory officer at the Gemological Institute of America. “It was only after the year 2000 that the threat of synthetics began to grow as the technology to create them began to improve. Soon, it was apparent that multiple diamonds could be created in one go, so you were up against quality and quantity.”
Moses also noted that synthetics are not going to go away any time soon, and that many businesses had to think about coexistence. What was really important, he said, was to ensure that the interests of consumers were protected at all costs. “We have to make sure that they are getting what they paid for,” he stressed.
Kevin Ryan, COO of Damas Jewellery, said there were several ways in which retailers can focus on protecting their customers. “At Damas, we keep three things in mind: firstly, we look at our supply chain to make sure we are getting the right kind of products, because even one synthetic in thousands of real diamonds is for us one too many. Secondly, we focus on the education of our staff and customers, and, finally, we focus on our in-house quality control team.”