GIA Unveils New Lab-Grown Reports

 

The Gemological Institute of America (GIA) has launched its new grading reports for lab-grown diamonds, offering an updated look and format.

The new documents, branded “LGDR by GIA,” come in digital-only form and use specific color and clarity scores rather than the descriptive terms and ranges that appeared in its previous reports, the organization said Tuesday.

“The evolution of GIA’s reports for laboratory-grown diamonds is fully aligned with our mission to protect all consumers,” said Susan Jacques, GIA president and CEO. “Everyone who purchases gemstone jewelry — whether natural or laboratory-grown — expects and deserves the information, confidence and protection that come with a GIA report.”

The offering includes two different Laboratory-Grown Diamond Reports for colorless synthetic diamonds — a standard report and a dossier — and two for colored diamonds: one with plot diagrams and one without.

Notably, the GIA avoids calling the documents “grading reports” — a term it reserves for natural diamonds. Earlier this week, the World Jewellery Confederation (CIBJO) recommended that laboratories use that term only for natural stones and instead call synthetics reports “Laboratory-Grown Diamond Product Specifications,” arguing that the concept of grading implies rarity.

“The color and clarity specifications for laboratory-grown diamonds are described on the same scale as GIA grading reports for natural diamonds, but that does not correlate to nature’s continuum of rarity,” the GIA noted.

The reports state that a stone was created by chemical vapor deposition (CVD) or High Pressure-High Temperature (HPHT) and that it may include post-growth treatments to change the color. Each report also comes with a QR code linking to a custom page on GIA’s website with information about lab-grown diamonds.

Each stone will also receive a laser inscription with the report number and the words “laboratory-grown,” unless another acceptable term already appears on the girdle.

Source: DCLA

GIA Unveils New Lab-Grown Reports

 

The Gemological Institute of America (GIA) has launched its new grading reports for lab-grown diamonds, offering an updated look and format.

The new documents, branded “LGDR by GIA,” come in digital-only form and use specific color and clarity scores rather than the descriptive terms and ranges that appeared in its previous reports, the organization said Tuesday.

“The evolution of GIA’s reports for laboratory-grown diamonds is fully aligned with our mission to protect all consumers,” said Susan Jacques, GIA president and CEO. “Everyone who purchases gemstone jewelry — whether natural or laboratory-grown — expects and deserves the information, confidence and protection that come with a GIA report.”

The offering includes two different Laboratory-Grown Diamond Reports for colorless synthetic diamonds — a standard report and a dossier — and two for colored diamonds: one with plot diagrams and one without.

Notably, the GIA avoids calling the documents “grading reports” — a term it reserves for natural diamonds. Earlier this week, the World Jewellery Confederation (CIBJO) recommended that laboratories use that term only for natural stones and instead call synthetics reports “Laboratory-Grown Diamond Product Specifications,” arguing that the concept of grading implies rarity.

“The color and clarity specifications for laboratory-grown diamonds are described on the same scale as GIA grading reports for natural diamonds, but that does not correlate to nature’s continuum of rarity,” the GIA noted.

The reports state that a stone was created by chemical vapor deposition (CVD) or High Pressure-High Temperature (HPHT) and that it may include post-growth treatments to change the color. Each report also comes with a QR code linking to a custom page on GIA’s website with information about lab-grown diamonds.

Each stone will also receive a laser inscription with the report number and the words “laboratory-grown,” unless another acceptable term already appears on the girdle.

Source: DCLA

De Beers sales show steady recovery in diamond market

 

De Beers, the world’s largest diamond producer by value, said on Wednesday that its latest sale of roughs yielded 40% more revenue than the seventh cycle, which already was more successful than the previous event.

The Anglo American unit, which sells diamonds to a handpicked group of about 80 buyers 10 times a year at events called “sights”, sold $467 million worth of rough diamonds in the eighth cycle, compared to $320 in the previous one.

The results bring De Beers’ total revenue from rough diamonds in the second half of 2020 to more than $900 million.

De Beers’ chief executive Bruce Cleaver said that while the demand increase was encouraging, it was too early to be sure of a sustained recovery in trading conditions.

“We continue to see a steady improvement in demand for rough diamonds in the eighth sales cycle of the year, with cutters and polishers increasing their purchases as retail orders come through ahead of the key holiday season,” Cleaver said in the statement.

The strong figures are further evidence of improving demand for rough diamonds, according to said BMO analyst Edward Sterck. He warned, however, that there is a significant accumulation of upstream diamond inventories, which could suppress the recovery if liquidated too soon and too quickly.

“Maintaining good diamond prices through the recovery will depend upon the pace at which the inventory is unwound, with De Beers and Alrosa holding the keys to the bulk of this inventory,” Sterck wrote in a note to investors.

The analyst also said the fact De Beers only provided a revenue figure meant it was unable to gauge how prices were trending.

Lower prices, more flexibility
De Beers has continued to implement a more flexible approach to sales during the sixth and seventh sales cycles of the year, as a result of restrictions triggered by the pandemic.

The usual week-long sight holder events have been extended towards near-continuous sales.

It has also cut prices of its stones, sometimes by almost 10% for larger diamonds, in an effort to spark sales.

Before the price reduction, De Beers had made major concessions to their normal sales rules — allowing customers to renege on contracts and view diamonds in alternative locations.

Along with Russia’s Alrosa, the world’s top diamond producer by output, it has also axed supply of roughs to the market, but built up their own stockpiles.

The diamond giant noted that despite ongoing efforts, it expected it would take “some time” to get back to pre-pandemic levels of demand.

De Beers and Alrosa’s view is shared by many in the industry. India, which polishes about 90% of the world’s rough diamonds, expect the slump in exports to be worse this year than in 2008.

Colin Shah, chairman of the Gem & Jewellery Export Promotion Council, told Bloomberg News on Wednesday that overseas sales of cut and polished diamonds may slump 20% to 25% in the year ending March from $18.66 billion last year.

Source: DCLA

De Beers sales show steady recovery in diamond market

 

De Beers, the world’s largest diamond producer by value, said on Wednesday that its latest sale of roughs yielded 40% more revenue than the seventh cycle, which already was more successful than the previous event.

The Anglo American unit, which sells diamonds to a handpicked group of about 80 buyers 10 times a year at events called “sights”, sold $467 million worth of rough diamonds in the eighth cycle, compared to $320 in the previous one.

The results bring De Beers’ total revenue from rough diamonds in the second half of 2020 to more than $900 million.

De Beers’ chief executive Bruce Cleaver said that while the demand increase was encouraging, it was too early to be sure of a sustained recovery in trading conditions.

“We continue to see a steady improvement in demand for rough diamonds in the eighth sales cycle of the year, with cutters and polishers increasing their purchases as retail orders come through ahead of the key holiday season,” Cleaver said in the statement.

The strong figures are further evidence of improving demand for rough diamonds, according to said BMO analyst Edward Sterck. He warned, however, that there is a significant accumulation of upstream diamond inventories, which could suppress the recovery if liquidated too soon and too quickly.

“Maintaining good diamond prices through the recovery will depend upon the pace at which the inventory is unwound, with De Beers and Alrosa holding the keys to the bulk of this inventory,” Sterck wrote in a note to investors.

The analyst also said the fact De Beers only provided a revenue figure meant it was unable to gauge how prices were trending.

Lower prices, more flexibility
De Beers has continued to implement a more flexible approach to sales during the sixth and seventh sales cycles of the year, as a result of restrictions triggered by the pandemic.

The usual week-long sight holder events have been extended towards near-continuous sales.

It has also cut prices of its stones, sometimes by almost 10% for larger diamonds, in an effort to spark sales.

Before the price reduction, De Beers had made major concessions to their normal sales rules — allowing customers to renege on contracts and view diamonds in alternative locations.

Along with Russia’s Alrosa, the world’s top diamond producer by output, it has also axed supply of roughs to the market, but built up their own stockpiles.

The diamond giant noted that despite ongoing efforts, it expected it would take “some time” to get back to pre-pandemic levels of demand.

De Beers and Alrosa’s view is shared by many in the industry. India, which polishes about 90% of the world’s rough diamonds, expect the slump in exports to be worse this year than in 2008.

Colin Shah, chairman of the Gem & Jewellery Export Promotion Council, told Bloomberg News on Wednesday that overseas sales of cut and polished diamonds may slump 20% to 25% in the year ending March from $18.66 billion last year.

Source: DCLA

‘Grading’ Is Just for Natural Diamonds, Says CIBJO

 

Laboratories should reserve the term “grading report” for natural diamonds rather than lab-grown stones, the World Jewellery Confederation (CIBJO) has urged.

Lab-grown diamonds lack the rarity that underpins the concept of grading, CIBJO argued Tuesday. Instead, documents providing details of synthetics should be called “Laboratory-Grown Diamond Product Specifications,” the organization says in a new set of guidelines it released to the trade this week.

The standard grading report implies “a degree of rarity of the product,” a CIBJO spokesperson told Rapaport News. “But on the other hand, the consumer has a right to know what the components of the product are. The important element is that the term ‘grading’ is taken out.”

CIBJO’s board has made its new Laboratory-Grown Diamond Guidance available for review by affiliated companies and national associations, the organization said. The consultation phase is the final stage in a two-year process to create harmonized standards for man-made stones.

The rule book, which is not binding, also calls for laboratories to include extra information such as the name of the manufacturer, the country and method of manufacture (chemical vapor deposition or High Pressure-High Temperature), and information about post-growth treatments. It also recommends that the letters “LG” precede the color and clarity grades on the report to indicate the stones are lab-grown.

The guidelines deal with how to describe lab-grown diamonds and display them at events such as trade shows. They also provide recommendations on how companies should disclose the origin of the stones on invoices and consignment documents, and discuss synthetics detection technology.

“A key principle of the Laboratory-Grown Diamond Guidance is that, to ensure confidence, consumers must receive complete and unambiguous information about what they are buying, so that they can make consciously informed purchasing decisions,” CIBJO explained.

CIBJO’s Blue Book, a separate document on grading standards and terminology, notably kept “natural” in its definition of diamonds even after the US Federal Trade Commission dropped the word in 2018.

Source: DCLA

‘Grading’ Is Just for Natural Diamonds, Says CIBJO

 

Laboratories should reserve the term “grading report” for natural diamonds rather than lab-grown stones, the World Jewellery Confederation (CIBJO) has urged.

Lab-grown diamonds lack the rarity that underpins the concept of grading, CIBJO argued Tuesday. Instead, documents providing details of synthetics should be called “Laboratory-Grown Diamond Product Specifications,” the organization says in a new set of guidelines it released to the trade this week.

The standard grading report implies “a degree of rarity of the product,” a CIBJO spokesperson told Rapaport News. “But on the other hand, the consumer has a right to know what the components of the product are. The important element is that the term ‘grading’ is taken out.”

CIBJO’s board has made its new Laboratory-Grown Diamond Guidance available for review by affiliated companies and national associations, the organization said. The consultation phase is the final stage in a two-year process to create harmonized standards for man-made stones.

The rule book, which is not binding, also calls for laboratories to include extra information such as the name of the manufacturer, the country and method of manufacture (chemical vapor deposition or High Pressure-High Temperature), and information about post-growth treatments. It also recommends that the letters “LG” precede the color and clarity grades on the report to indicate the stones are lab-grown.

The guidelines deal with how to describe lab-grown diamonds and display them at events such as trade shows. They also provide recommendations on how companies should disclose the origin of the stones on invoices and consignment documents, and discuss synthetics detection technology.

“A key principle of the Laboratory-Grown Diamond Guidance is that, to ensure confidence, consumers must receive complete and unambiguous information about what they are buying, so that they can make consciously informed purchasing decisions,” CIBJO explained.

CIBJO’s Blue Book, a separate document on grading standards and terminology, notably kept “natural” in its definition of diamonds even after the US Federal Trade Commission dropped the word in 2018.

Source: DCLA

Dominion Diamond Mines sale of Ekati falls through

 

The future of the Ekati diamond mine in Canada’s Northwest Territories remains uncertain after Dominion Diamond Mines announced that a deal to sell it to a subsidiary owned by its parent company, The Washington Companies, has fallen apart.

Dominion Diamond reported on Oct. 9 that three insurance companies – Aviva Insurance Company of Canada, Argonaut Insurance and Zurich Insurance – had reached “an impasse” in negotiation with the purchaser, and stated “there is no reasonable prospect of reaching a satisfactory agreement among them.”

Dominion Diamond, which was purchased by The Washington Companies in November 2017 for $1.2 billion, was granted creditor protection in April. Mining was suspended and the Ekati mine placed on care and maintenance in March due to the coronavirus.

Altogether, the three insurance companies have issued about C$280 million in surety bonds to the government of the Northwest Territories that were intended to guarantee that the diamond mine could be closed safely and reclaimed once the mine closes permanently.

The sale was subject to a condition that the insurance companies and the purchaser reached an agreement on the treatment of the existing surety bonds.

Dominion remains in creditor protection until November 7, 2020, unless extended, it said, and is working with its advisors on next steps.

“The company will be assessing all strategic alternatives to return the Ekati diamond mine to full operations for the benefit of its employees, the Northwest Territories and other stakeholders,” Dominion Diamond stated in its news release.

The company has also confirmed that Pat Merrin, the company’s interim CEO since February, has relinquished that role. “In light of this development, Pat has advised that it would be appropriate that he step down as Interim CEO,” a company spokesman wrote in an email to The Northern Miner.

“Kristal Kaye, CFO and Mike Welch, COO will lead Dominion through this challenging period with strong support from the rest of the management team and our independent Chairman Brendan Bell.”

Dominion Diamond Mines is one of the world’s largest producers and suppliers of premium rough diamonds. The company owns a controlling interest in the Ekati diamond mine, which it operates, and 40% of the Diavik diamond mine. It also holds a controlling interest in the Lac de Gras diamond project. All of its assets are in the Northwest Territories.

Source: DCLA