The Good, the Bad & the Ugly: Everything You Ever Wanted to Know About The Diamond Industry

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You’re about to make the biggest purchase of your life, yet wish you could clarify a few questions and clear up a few rumors you have heard about the diamond industry as a whole. Well look no further because we’re debunking some of the common misconceptions in hopes you breathe a sigh of relief.

Myth: Diamond mining is terrible for the environment

Reality: Considering little to no chemicals are used during diamond mining, (which would otherwise be harmful to the staff’s health), diamond mining is generally less harmful to the environment than other types of mining. Additionally, the orebodies used in mining are vertical not horizontal, ultimately affecting less of the surrounding area. Many companies have established protected habitats adjacent to their operations, often times larger than the mining operation itself.

Myth: There is a high chance that you could buy a conflict diamond

Reality: One of the most popularized myths of all is the issue of conflict diamonds — or “blood diamonds”. During the brutal civil wars in Sierra Leone and Angola in the 1990s, the diamond industry has made great strides given what this time unveiled. Since the introduction of the Kimberley Process (KP) certification scheme and the World Diamond Council (WDC) System of Warranties, more than 99.8% of the world’s diamonds are certified conflict-free, with the support of 81 countries.

Today the industry is mostly self-regulated, and various countries have additional layers of government regulation in place. The UK’s Government Diamond Office, for example, works closely with HM Revenue & Customs, the European Commission and civil groups to combat illicit diamonds.

Additionally, there are voluntary and self-regulation systems that are effective in maintaining the diamond pipeline. Like most jewelers, we want to ensure our customers have the confidence to know that our source of supply is conflict-free. Additionally, may jewelers subscribe to the Responsible Jewelery Council, De Beers’ Best Practice Principles, and the Signet Responsible Sourcing Protocol.

Myth: The diamond industry is a monopoly, owned by De Beers.

Reality: The good news is no one company has had controlled the market for decades. This myth dates back to the 1980’s when De Beers did indeed control over 90% of the supply chain and was almost wholly responsible for marketing diamonds, having developed its famous “A Diamond Is Forever” slogan in the 1940s. This also led to the perception that De Beers “invented” the diamond engagement ring, when in fact the first was recorded as early as 1477 by Archduke Maximillian of Austria, who commissioned the very first diamond engagement ring on record for his betrothed, Mary of Burgundy.

By the 1990s, the market for new mining companies opened, breaking the hold that De Beers and Alrosa had on the industry and ushering in a new wave of diamond discoveries in Angola and Canada, according to Pouroulis.

Today De Beers company share of the diamond market is closer to 35%, while five other companies divide the remaining 65% of diamond share.

Myth: Diamond mining individuals and communities are mistreated and at-risk

Reality: To first understand why this myth is so false, you must first understand how the mining process works and how much diamond mines actually help strengthen a community. The isolated nature of diamond mines means the workforce lives close by and develops a community spirit, which the diamond industry supports by investing in hospitals, schools, training and bursary programs.

For example, 33% of Botswana’s GDP comes from diamond mining, and an estimated five million people globally have access to health care thanks to diamond revenues, according to diamondfacts.org.

Today’s mining is not done by hand but is quite automated with miners moving millions of tons of rocks per year. Miners operating large earth loaders in open pits or underground would never even see a diamond.

Myth: The diamond industry is secretive and closed to outsiders and not to be trusted.  

Reality: This myth simply stems from a place of fear. The high-value nature of diamonds may be to blame for the presumption that the industry is filled with inaccessible people and organizations, more comfortable with secrecy than transparency. The reality is there is a whole spectrum of hard-working people all at different levels of financial success. Just like any business, success in the diamond industry is all dependent on how a business has been built.

It’s not uncommon for society to expect to see businesses reporting on their social activities, financials and stakeholders to increase transparency and trust. This shift in societal expectation has created major changes in the diamond sector for the better - more transparency and more trust.

You might also be pleased to know that diamond retailers such as De Beers are not sitting on stockpiles of diamonds nowadays, but instead build up inventory before making a sale as any retailer would.

Have a question that wasn’t addressed above? Leave us a comment below!

~ LB

A Diamond By Any Other Name Just Isn’t As Sweet

                                                                                  

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Last week I came across a NY Times article that breaks down the elements that actually make a diamond. This short article got me thinking about the difference between man made vs. naturally occurring diamonds, and the confusion around both. Below I’ve shared my thoughts on this.

A man made or lab made diamond is omitting the timelessness and everlasting value a naturally occurring diamond possesses. It takes away the precious scarcity and value that has made today’s diamonds so popular and desired. Although to the naked eye, these so-called diamonds may look similar, they are quite fake and unfortunately do not hold their value. Also, rarely talked about is the fact that these man made “diamonds” actually give off a blue hue.

Imagine years later passing down a lab made stone...one that no longer holds its value due to how common it is to create. Now imagine passing down a family heirloom diamond, one that no matter how old or dusty it becomes, remains timeless. A prized treasure for generations to come. It’s the scarcity and naturally occurring timeless beauty you are purchasing when you seek out a precious diamond gem.

As this article states, “Just as one cannot compare an original painting to a reproduction, one cannot compare a diamond to a manufactured replica”. In order to be called a diamond it must be naturally occurring.

Trends around diamond shape, diamond settings, and gem color may come and go, but the beauty that is of a true diamond is everlasting.

Have questions or comments? Share them them below, we’d love to hear from you.

-LB

The Engagement Ring You Can’t Put a Price To

Princess Harry Engagement Ring

By now most have heard the exciting news that Prince Harry has proposed to American actress and humanitarian, Meghan Markle. The ring he designed for the proposal is nothing shy of dazzling! It incorporates a large center stone from Botswana (a place near to both of their hearts), and two smaller size diamonds from his late Mother, Princess Diana.

The value of such a ring is quite simply put-- priceless. This is primarily due to the history of the side diamonds, as well as the size of the center stone.

According to an article written by Real Men, Real Style, in “British law, heirlooms were moveable properties that had to be inherited through the family estate. You could sell one that you owned while you were alive, but once you died, it couldn’t be willed away from the family.

These days, the law is obsolete, even in Great Britain’s landed classes. But the concept — a piece of moveable property tied by tradition to the family — is still strong in Western culture”.

The wonderful thing about heirloom diamonds is that they are so versatile. They can be added to other pieces of jewelry or can be reset into a completely new piece. When needed, they can also be sold in order to buy a newer, more modern piece that better suits the purchasers taste. Over time they become much more than a beautiful sparkling stone, they become a piece of history to be passed down from generation to generation-- a true family heirloom.

If there is a precious piece of jewelry that you or your family owns, you just may want to hold onto it. Someday it may just be priceless too.

LB

 

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