【London, UK】Natural Diamond Council Debunks Industry Myths with Facts

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Editor’s Note

This report by the Natural Diamond Council seeks to clarify industry information and counter widespread misconceptions regarding both natural and lab-created diamonds.

Report Aims to Address Misinformation

LONDON, April 19, 2023 /PRNewswire/ — The Natural Diamond Council (NDC), the authoritative resource on natural diamonds, has published its 2023 analytical report titled “Diamond Facts: Addressing Myths and Misconceptions About the Diamond Industry.” Through this report, the NDC aims to address misinformation about natural diamonds and lab-created diamonds, also called synthetic diamonds.

“In an era where consumers are more curious and informed than ever, they want to know the values and responsible business practices of the companies and, indeed, the industry as a whole to which they are buying,” said David Kellie, CEO of NDC. “At the Natural Diamond Council, we want to help consumers make informed decisions by providing them with information transparently.”

The report addresses common misconceptions about the diamond industry. Examples of facts from the report include:

Highlight: Lab-created diamonds can be detected from natural diamonds.

Supporting Facts:
– All lab-created diamonds, also called synthetic diamonds, can be detected using professional verification instruments.
– Mass-produced in just a few weeks, unlike the billions of years it takes for a natural diamond to form beneath the earth’s surface, lab-created diamonds exhibit specific characteristics and patterns related to growth.

Highlight: Not all lab-created diamonds are sustainable.

Supporting Facts:
– Lab-created diamonds replicate the natural diamond creation process which requires a significant amount of electricity, primarily from the national grid.
– Over 60% of lab-created diamonds are mass-produced in China and India, where 63% and 74% of the grid electricity, respectively, comes from coal.
– The manufacturing of lab-grown diamonds can require temperatures similar to 20% of the Sun’s surface temperature.

Highlight: The formation process of natural diamonds means they are inherently rare. They are a finite natural resource.

Supporting Facts:
– Formation takes place over millions, sometimes billions, of years and occurs in limited areas of the Earth’s mantle under extreme temperatures and pressures.
– Global recovery of natural diamonds peaked in 2005 and has declined by over 30% in the last 16 years.
– The annual recovery of 1-carat diamonds is equivalent in volume to an exercise ball.

Highlight: Lab-created diamonds have experienced significant price depreciation in recent years.

Supporting Facts:
– From 2016 to 2023, the average price of a 1.5-carat lab-grown diamond has decreased by over 74%.
– While natural diamond prices have also fluctuated, over the past 35 years, on average, they have increased by 3% annually.

Highlight: Ethical sourcing is a priority for the natural diamond industry.

Supporting Facts:
– According to the Kimberley Process, mandated by the United Nations and the World Trade Organization, the trade in rough diamonds is strictly regulated to ensure it is conflict-free.
– The Responsible Jewellery Council (RJC) ensures responsible sourcing through third-party audited certifications.
– Brands, retailers, and jewelers are increasingly implementing ethical sourcing protocols and policies that bring transparency to their supply chains.

Highlight: Natural diamonds help protect biodiversity in an area equivalent to the combined size of New York City, Chicago, Washington D.C., and Las Vegas. This is nearly four times the land used by NDC member companies for natural diamond recovery globally.

Supporting Facts:
– De Beers Group, a leading diamond company, is partnering with Kelp Blue, exploring the potential of seaweed to store carbon while improving marine health.
– The Diamond Route is a network established by De Beers Group to protect critical wildlife habitats in South Africa and Botswana.

Highlight: Natural diamonds benefit the countries they come from. The natural diamond industry supports the livelihoods of 10 million people worldwide.

Supporting Facts:
– Up to 80% of the value of rough diamonds remains in local communities in the form of local purchases, employment benefits, social programs, infrastructure investment, as well as taxes, royalties, and dividends paid by the industry to respective governments.
– For NDC members, 85% of all procurement is local.
– In Canada, the natural diamond industry contributes 24% of the total GDP in the Northwest Territories, with $17 billion directed to (NWT) businesses and $7.5 billion to Indigenous-owned businesses (NWT).

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⏰ Published on: April 19, 2023