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Top 10 Stories of 2018: A Year of Synthetics
Dec 18, 2018 5:14 AM
By Joshua Freedman
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RAPAPORT... This was the year in which synthetic diamonds went
mainstream. De Beers launched its Lightbox brand, the US Federal Trade
Commission (FTC) relaxed its rules for describing lab-grown diamonds, and
the likes of Macy’s and JCPenney started stocking synthetics for the
holiday. Two of those three stories feature in the top 10 most-read articles on
Diamonds.net this year.
Martin Rapaport’s takes on De Beers’ strategy and policies came
high on the leaderboard. Meanwhile, news from Gemological Institute of America
(GIA) laboratories proved popular as in previous years: Two of the most-clicked-on
stories featured unusual findings by the organization’s grading and
melee-analysis services.
It was somewhat surprising that not one
story about the Nirav Modi scandal made it into the list, considering the interest it garnered among the members of the trade. (The most-read piece
about the Indian tycoon was this
one on his US jewelry businesses.)
What this year’s list lacks is large, spectacular diamonds. Auction
sales, while gripping as usual, did not produce any blockbuster results in
2018, and super-large stones that came on the market weren’t of the scale the
industry has become used to in recent years.
It was, however, a year of highly significant developments. Here
are the top 10 most-read stories on Diamonds.net in 2018:
1. Lab-Grown
Diamonds Are Diamonds, Says FTC
July 25
The FTC made wide-ranging changes to its jewelry guidelines following consultations with the industry. This was the initial story following a skim of the commission’s 161-page conclusions. Among those was a decision was to
drop the word “natural” from its definition of a diamond to reflect the fact
that mined stones were no longer the only product available. The synthetics
sector saw that as a victory, but the news didn’t change the fact that
marketers must disclose clearly that a diamond is man-made.
Flawless fact: The FTC’s previous definition had been
in place since 1956.
2. A
Defining Moment for Lab-Grown Diamonds
July 31
This piece delved more deeply into the FTC decision. It explained that the move was important,
even though disclosure obligations around lab-grown diamonds remained in place.
Synthetics suppliers will almost certainly use the new definition for marketing
purposes. (Diamond Foundry already has.) The new
guidelines also prompted the World Jewellery Confederation (CIBJO) to rethink
its own definition of diamonds, though it later decided to leave
it unchanged for now.
Flawless fact: The FTC’s new definition put it at
odds with most major standards, including the International Organization for
Standardization (ISO), CIBJO’s Blue Book, and the “Diamond Terminology
Guideline” that nine natural-diamond organizations published in January.
3. Martin
Rapaport on De Beers’ Synthetics
July 4
De Beers only has its own corporate interests at heart when
it takes strategic decisions, Martin Rapaport argued. That includes its launch of Lightbox, a fashion-jewelry line
featuring lab-grown diamonds.
Key quote: “The government of Botswana should be
asking De Beers: Where is your exciting new marketing program for natural
diamond fashion jewelry?”
4. Who
Are the Top Rough Buyers?
July 26
Rough diamonds go on a long and winding journey before
reaching their final polishing destination. This excerpt from the Rapaport
Research Report looked at who’s buying the goods, and where they send them
for processing. It also presented a full list of the 124 companies buying from
De Beers, Alrosa, Dominion Diamond Mines and Rio Tinto.
Flawless fact: India cuts and polishes 80% to 90% of the world’s diamonds, while an
estimated 84% of rough stones pass through Antwerp.
5. Melee
Parcel Contains Just One Natural Stone
August 16
This was the largest percentage of undisclosed synthetic
melee the GIA had discovered in a parcel, according to gemologists at the
institute. Of 1,102 small diamonds in a package the GIA received for testing,
1,092 were definitely synthetic, nine were not eligible for examination, and
just one was natural.
Flawless fact: Fraudsters often add a few synthetic
diamonds to boost the size of a melee parcel while keeping the majority natural
— a practice known as “salting.” In this rare case, the lab-grown diamonds
vastly outnumbered the mined ones.
6. De
Beers Destroying Transparency in the Diamond Industry
June 19
De Beers is obstructing the industry’s source-verification
efforts by preventing its clients from disclosing the source of the goods they
buy from the miner, Martin Rapaport contended in an address in Las Vegas in
June. The producer is “using its market
power to restrain competition in the market for legitimate, source-certified
polished diamonds,” he added in this written statement. De Beers said this
month it was proposing
to loosen the rules.
Flawless fact: 42% of the world’s legitimate diamond
production in 2017 came from De Beers.
7. 1.5ct.
Synthetic Diamond Sells for $32
November 28
Cards Against Humanity is more famous for its politically
incorrect party games than for its role in our industry. It jokingly dipped its
toe into diamond waters for Black Friday, selling a 1.5-carat lab-grown stone
from Brilliant Earth for $32, or 99% off its original price. It offered free
returns, as 50% of marriages end in divorce, it explained.
Key quote: “If anyone from Brilliant Earth is reading
this article, you should know that I am friends with lots of single women aged
23 to 38 and I will continue to advertise on your behalf,” said Jane Benn,
community manager at Cards Against Humanity.
8. GIA Spots
Broken Diamond Glued Back Together
August 14
Whoever stuck these two halves of a diamond together would
deserve an award for innovation had they not also apparently been cheats. The
GIA received what looked like a green diamond — weighing in at 1.38 carats —
but quickly discovered it couldn’t grade the stone because it had a line of an
“unknown adhesive” running down the middle. The institute had never seen
anything like this before.
Flawless fact: The GIA can only grade a diamond to
which the 4Cs apply. That wasn’t the case here, as the carat weight would have
comprised the two halves, plus the substance binding them.
9. Woman
Says Kay Jewelers Stole Her Ring
October 8
Signet Jewelers’ brands have had to deal with several
potential public-relations disasters in recent years, but it handled this one
smoothly. Requitta Darshae East, a customer at Kay Jewelers, claimed the
retailer had stolen rings she had taken in for servicing. Her furious Facebook
post went viral, prompting many others to comment with reports of their alleged
bad experiences of Kay’s customer service. Kay, which had sent the rings to the
wrong store, flew
two senior executives to East’s home in Chicago and made peace with her.
Key quote: “There is a way to rectify any and every
situation,” wrote East.
10. How
De Beers Sees Its New Synthetics Business
May 30
De Beers CEO Bruce Cleaver revealed how Lightbox would focus
on fun, colorful stones with no grading reports. The company wasn’t just
launching a new product line; it was also sending a message to the trade about
what consumers want from lab-grown diamonds, timed meticulously for the start
of the JCK Las Vegas show.
Flawless fact: Lightbox could generate revenue of $150
million to $200 million per year once its production plant in Oregon is fully
functional in 2020, according to Cleaver.
Image: Pictures illustrating the top stories of the year. (Shutterstock; Sood Oil (Judy) Chia and Towfiq Ahmed/GIA; Diamond Foundry; De Beers; Robison McMurtry/GIA; Requitta Darshae East/Facebook; Cards Against Humanity)
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Tags:
Alrosa, black friday, Blue Book, Brilliant Earth, Bruce Cleaver, Cards Against Humanity, CIBJO, De Beers, Diamond Foundry, Diamond Terminology Guideline, Dominion Diamond Mines, federal trade commission, ftc, Gemological Institute of America, GIA, International Organization for Standardization, iso, Jane Benn, jcpenney, Joshua Freedman, kay, Kay Jewelers, lab-grown diamonds, las vegas, Lightbox, Macy’s, Martin Rapaport, melee, Nirav Modi, Requitta Darshae East, Rio Tinto, Rough Diamonds, Signet, Signet Jewelers, Synthetics, World Jewellery Confederation
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