Call for Clear Lab Grown Labels in India

Lab grown Diamonds

The Indian government is facing calls to adopt US guidelines to distinguish lab growns from natural diamonds.

The 10,000-member GJEPC (Gems and Jewellery Export Promotion Council) says there is widespread confusion in the way diamonds are marketed and advertised.

It says India should adopt the US Federal Trade Commission (FTC) guidelines, which say there must be a “clear and conspicuous” indicating that a diamond is man-made.

They also say the term “diamond” without qualification can only be used to refer to a natural, mined diamond.

And lab growns cannot be described as “real,” “genuine,” “natural,” or “precious” without additional qualifying language.

The GJEPC has written to India’s Department of Consumer Affairs calling for strict rules to differentiate between natural and lab grown.

“The absence of standardised guidelines on diamond terminology leads to ambiguity,” it says.

“And there are no mandatory disclosure requirements to indicate whether a diamond is lab-grown or natural to the consumer.”

Source: DCLA

Rio Tinto buys back famed Argyle pink and red diamonds for latest tender due to dwindling stockpile

A select few with deep pockets are rolling into Perth to snap up the latest collection of Argyle diamonds, as unsold inventory of the ultra-rare gems whittles down to a “teaspoon”.

A top secret location in the CBD this week will host prospective buyers from Australia and overseas vying for 76 polished pink, red, and other coloured diamonds — predominantly unearthed at Rio Tinto’s shuttered Argyle mine in the east Kimberley region.

Argyle operated for 37 years up until 2020, and about 95 per cent of the world’s circulation of pink and red diamonds can be traced back to the mine.

Each carat of an Argyle pink or red can easily fetch a multi-million-dollar sum. Earlier this year a 1.56ct Argyle red sold for $US4.3 million ($6.4m) in Geneva, equating to $US2.7m a carat. One of the pinks in the latest collection weighs 2.63ct.

But not all of the famed gems sold are destined for an extravagant jewellery piece, with many opting to keep their purchase locked away in a vault as an investment.

“We have seen double digit price growth year on year for the past 20 years . . . and we seeing demand continue unabated for these stones,” Rio Tinto diamond sales and business development manager Michelle Sherring told The West Australian.

“The constrained supply means the value of pink diamonds has eclipsed any kind of comparable equity indices, like the Dow Jones and Hang Seng et cetera, over the years.”

Since mining ceased at Argyle Rio has touted each of its annual tenders for the diamonds as being one of the last.

“We now have a mere teaspoon (of unsold Argyle pinks and reds) remaining within our own inventory,” Ms Sherring said.

Stockpiles are now so low that for the first time ever the collection includes diamonds Rio has bought back from customers.

“Including the secondary market is a new concept for this year, we have very strong relationships with our long running customers,” Ms Sheering said.

“So I approached a handful of them at the beginning of the year in terms of the concept and we have over these years understood where some of the important diamonds sit and which safes they might be held in.

“It was a process of curation, and ultimately, what we have is a set of seven round diamonds which represent the real pinnacle of rarity.”

Of the 76 stones in the latest collection, 74 are from Argyle — the pink, red and blue diamonds — while the remaining two are a yellow and white diamond sourced from Rio’s Daivik mine in Canada.

Rio is displaying the collection — comprising 48 separate lots and weighing a combined 39.44 carats — on an invite-only basis in Perth, London, Singapore and Belgium. Bids for the tender will close on November 18.

Murray Rayner, who was previously the chief geologist for Argyle Diamonds, last year told The West that the existence of Argyle’s pink diamonds was due to a “fluke of nature” that will be extremely difficult to replicate.

Mr Rayner said the pink diamonds emerged around 1.8 billion years ago when the Kimberley collided into Australia, bringing pink diamonds closer to the Earth’s surface.

These pink diamonds were originally created at one point three billion years ago when our planet’s once-connected continents began to rip apart, with the intense pressure from this event causing the pink colouration in the diamonds.

“To find another deposit would be an extraordinarily rare event in its own right, we’ve looked over the last few decades without any success,” he said.

Source: DCLA

Lab Grown Companies Move to Near-Empty Surat Bourse

The near-empty Surat Diamond Bourse (SDB) is hoping the arrival of around 40 lab grown traders will signal a change in its fortunes.

The vast new center, recognized by Guinness World Records as the largest office building in existence, was officially opened last December by India’s prime minister Narendra Modi .

It has a capacity of 4,500 offices, but remains virtually empty.

The bourse has, according to local media reports, now reached an agreement with the Lab Grown Diamond Association (LGDA) to relocate around 40 lab grown companies from elsewhere in Surat.

Mahesh Gadhvi, CEO at SDB, said recently that 250 offices were currently occupied (that’s less than 6 per cent of the total).

“Steadily we are progressing towards opening more offices and starting more businesses from SDB,” he told the business news channel CNBC.

Source: DCLA

De Beers Group Managed Operations

The global supply of natural diamonds has already peaked, according to Moses Madondo, CEO of De Beers Group Managed Operations. Speaking at the Joburg Indaba, a major mining and resources conference in South Africa, he explained that production is on the decline, with several mine closures on the horizon and no significant new discoveries in sight.

Madondo highlighted that this limited supply could push diamond prices higher. “Since the turn of the century, we’ve only seen one major commercial discovery, the Luele mine in Angola, where we aim to start production by the 2030s. But on a broader scale, global diamond production is set to decline,” he said. This trend, while concerning from a supply perspective, offers the potential for price growth.

In the short term, Madondo expects production to dip, but he anticipates a recovery after 2025, driven by the Luele mine ramping up and South Africa’s Venetia mine shifting to underground operations. However, the looming closure of Canada’s Diavik mine in 2026 and the shutdown of several mines in Russia will further tighten supply.

5 carat Blue Diamond with $10m US Estimate

A stunning platinum ring featuring a 5.02 carat blue diamond is set to headline Christie’s Hong Kong auction later this month, with an estimated value of up to US $10.3 million (HKD 80 million).

The centerpiece is an internally flawless, fancy deep blue marquise brilliant-cut diamond, graded by the Gemological Institute of America (GIA).

Dating back to 1923, the ring is listed in the auction catalog as “property of a lady,” though further details about the owner remain undisclosed.

This exquisite piece will lead the highly anticipated 124-lot Magnificent Jewels live sale on October 29, alongside a pair of diamond “Oriental Sunrise” earrings.

These earrings showcase two fancy vivid orange yellow diamonds (12.20 carats and 11.96 carats) and share the same US $10.3 million (HKD 80 million) high estimate.

Source: DCLA

First Dedicated Rolex Store in China

Shenyang,Liaoning,China

China is to get its first dedicated Rolex store.

The luxury Swiss watchmaker will sell direct to consumers at the HKRI Taikoo Hui mall, in Shanghai, according to Chinese media reports.

The store will be operated by Bucherer, the long-established watch retailer that was wholly acquired by Rolex last September, and will carry Bucherer branding. No date has been given for its opening

China is the second biggest market for Swiss watches after the US, accounting for $209m of exports in August.

But it is currently intensifying efforts to curb conspicuous extravagance, particularly through a crackdown on social media influencers who flaunt excessive wealth.

In addition overall sales of Swiss watches are suffering, according to the Federation of the Swiss Watch Industry, which describes the outlook for the rest of the year as negative.

Rolex dominates the Swiss watch market, with a share of more than 30 per cent. It has always relied on authorized dealers to manage its Chinese operations.

Source: DCLA

Lucara Sells Digital Sales Platform to ex-CEO

Canadian miner Lucara has sold Clara, its digital sales platform, to former CEO Eira Thomas and a group led by the Vancouver-based HRA Group of Companies.

The move gives Clara’s new owners the freedom to sell other diamonds, in addition to those produced by Lucara at its Karowe mine, in Botswana. It also allows Lucara to focus on the underground expansion of the mine.

Thomas, who stood down last August as Lucara CEO, led the commercialization of the Clara. She said it was designed to disrupt the way diamonds are traded after a century of inefficiency and inflexibility.

Clara’s new owners – HRA and Thomas – will pay $3m in cash and return 10,000,000 Lucara common shares initially issued as partial consideration when Lucara originally acquired the platform in 2018.

“We are excited about the opportunity to realize its full potential, which remains largely unexplored,” said Aaron Ariel, managing director and original founder of Clara.

“We believe it will become the industry’s premier global rough-diamond marketplace. We look forward to partnering with stakeholders throughout the supply chain who share our vision for a healthier, more transparent, and, last but certainly not least, a more profitable industry for all.”

Lucara will retain a 3% net profit interest on Clara’s net earnings and has granted Clara a five-year rough diamond supply agreement for stones meeting the size and quality specifications historically sold through the Clara platform.

Lucara’s larger stones – those over 10.8-cts – are sold via HB Antwerp as part of an ongoing 10-year agreement. They account for around 70 per cent of the company’s revenue.

William Lamb, president and CEO of Lucara, said: “The divestiture of Clara enables us to intensify our strategic focus on maximizing returns and long-term value creation at our world-class Karowe diamond mine in Botswana.

“While the Clara platform provides an innovative digital channel for rough diamond sales, the successful onboarding of other producers’ rough production required to scale the platform, remains unattainable while the platform is owned by a pure-play diamond producer.”

Source: DCLA