【New York Cit】4 New Questions for the Lab-Grown Diamond Market

Editor’s Note

This article discusses the prevalence of treatments in the lab-grown diamond industry and the ongoing debate about whether such processes should be disclosed to consumers. The text has been updated to reflect reader feedback questioning the phrase “overwhelming majority.”

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Should treatment disclosure be required?

It’s no secret that an overwhelming majority of lab-grown diamonds are treated by either electron irradiation or high-pressure, high-temperature (HPHT). (UPDATE: Some commenters disagree with the phrase “overwhelming majority.”)

“My understanding is that a lot of the diamonds come out gray or black, and then you do stuff to them to get that color. Some say that ‘stuff’ is part of the process. To me, the stuff you do afterward is the treatment. And that’s the value differential. It’s really an open question, and we might want the FTC to weigh in.”

Sara Yood, senior counsel for the Jewelers Vigilance Committee (JVC), says that, by law, growers must note radiation treatments, as irradiated diamonds and gemstones are subject to oversight by the Nuclear Regulatory Commission (NRC).

“If growers just disclosed the method of creation and became more interested in disclosing their methods, then it would be covered, and we wouldn’t have to worry about it.”

Ben Hakman, founder of Diamond DNA and a lab diamond consultant, says treatments can leave a brownish and sometimes brown-pinkish tinge, and “as grown” diamonds fetch a premium.

But Angelo Palmieri, president of the New York City–based grading lab GCAL, says he’s “not convinced there’s a value differential in the market…. It’s just not an issue that comes up.” He says that even some diamonds labeled “as grown” are treated during the production process.

“It’s possible that as this market grows, people will look for ways to set themselves apart,” he says.

Of course, there’s another issue here: It can be harder to spot a treatment in a lab-grown than a natural—and the treatments on lab-growns are easier to disguise, says Palmieri.

An Australian company, Gemetrix, has just introduced a lab-grown detector that founder John Chapman feels can spot treatments on any kind of stone.

“There hasn’t been a call for this until now,” says Chapman. “Until now, the industry issue has been: Is it synthetic or not? Now that people are accepting synthetics, we are starting to see a distinction between as-grown and treated.”

Gemological Institute of America (GIA) spokesperson Stephen Morisseau says that the GIA is “confident” it can “detect HPHT treatments to improve or alter the color of natural and both CVD and HPHT laboratory-grown diamonds.” He adds that while GIA “believes and has consistently held that any gemstone treatment must be disclosed,” it, too, doesn’t include treatment info on its synthetic reports “for now.”

Should you disclose whether some stones in a piece are natural?

In mid-2017, I wrote a piece about a lab diamond seller, Jason Payne of Ada Diamonds, who complained that two companies sold him parcels with “undisclosed” naturals. A lot of people laughed at this. I asked if he was “trolling the trade.” But in retrospect, he had a point. Some consumers clearly prefer man-made gems. They shouldn’t buy mined diamonds believing they are lab-grown, and vice versa.

“If your site says ‘laboratory-grown diamonds’ people will assume that you are only selling lab-grown diamonds,” she says. If naturals are used, “you should put something about that in the description for every single piece.”

Legally, companies don’t have to modify the word diamond, as the word is generally assumed to mean a natural product. But if a consumer thinks they are buying created gems and they are buying something else, that’s a problem, Yood says.

Payne, for his part, screens all his parcels, just like natural companies now have to screen theirs.

“It’s a big nuisance to handle melee in-house and insure that no mined melee ends up in your jewelry. It’s a lot cheaper and easier to buy semi-mounts from finding companies.”
Should buying lab diamonds be subject to the Patriot Act?

Under the Patriot Act, dealers who sell more than $50,000 in precious stones, gems, and jewelry are required to maintain an anti–money laundering (AML) program.

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⏰ Published on: January 25, 2019