Sourcing

Analysis: The State of the Diamond Industry

SourcingOct 25, 2017

Analysis: The State of the Diamond Industry

Taking action to ensure it accurately differentiates between lab-grown diamonds and their mined counterparts is the biggest challenge the industry faces.

20171025_AMS-lab.jpg
A shot inside one of the laboratories operated by De Beers’s International Institute of Diamond Grading and Research. The workers shown here are using the first version of the Automated Melee Screener, developed to detect man-made diamonds in packets of small diamonds.
Although there is no way of knowing how many undisclosed lab-grown diamonds are circulating, analyst Chaim Even-Zohar estimates approximately $750 million worth of gem-quality man-made diamonds entered the supply chain in 2016. 

Click <a href="https://magazines-nationaljeweler-com.s3.us-east-2.amazonaws.com/stateofthemajors/2017/index.html?page=1" target="_blank">here</a> to read the full story in the State of the Majors issue.
Click here to read the full story in the State of the Majors issue.

He describes the volume of undisclosed lab-grown melee—diamonds sized from a miniscule 0.001 carats to 0.18 carats used in every type of jewelry—entering the market as “staggering.”

Others also believe there is a reasonable likelihood of discovering undisclosed lab-grown stones in the pipeline.

“Based on our experience of testing jewelry and parcels, we suspect the risk of finding synthetics in the supply chain is reasonably high at the moment,” says Tom Moses, executive vice president and chief laboratory and research officer at the Gemological Institute of America.

Just one high-profile case of a consumer discovering the expensive ring they saved up for contained an undisclosed lab-grown diamond could have huge ramifications for consumer trust in an industry already working hard to stay relevant to millennials.

It is bound to happen before too long and, in fact, it probably already has.

David Skuza of DRC Techno, a Surat, India-based gemological research and development company founded by sightholder Dharmanandan Diamonds, says every customer who has used the company’s J-Secure Plus machine has found undisclosed lab-grown diamonds.

One customer recently tested a fancy diamond bracelet with rounds and baguettes. They discovered the baguettes to be lab grown, a big surprise.

“Every retailer, manufacturer, wholesaler and diamond company that has tested or bought our machine finds undisclosed lab-grown diamonds. High-end or mass-market, it makes no difference. The contamination is everywhere.”

“Every retailer, manufacturer, wholesaler and diamond company that has tested or bought our machine finds undisclosed lab-grown diamonds,” says David Skuza of DRC Techno of the company’s J-Secure Plus, pictured here. “High-end or mass-market, it makes no difference.”
“Every retailer, manufacturer, wholesaler and diamond company that has tested or bought our machine finds undisclosed lab-grown diamonds,” says David Skuza of DRC Techno of the company’s J-Secure Plus, pictured here. “High-end or mass-market, it makes no difference.”

He has endless examples of this “contamination.”

They include a gem lab, which Skuza will not publicly identify for confidentiality reasons, that quality controls more than 1,000 stones on a weekly basis for a major reseller and regularly finds more than 5 percent of its diamond products containing undisclosed man-made diamonds.

He also cites an example in which a customer checking a 5-carat parcel of 0.02-carat diamonds at the recent JCK Las Vegas show discovered that nearly 75 percent of the diamonds he had just purchased were man-made.

Taking Action
Although the battle against undisclosed lab-grown diamonds feels a bit like fighting terrorism—those who want to cause disruption are always one step ahead of those seeking to curtail it—the industry is far from powerless. 
Manufacturers and dealers should use all the means at their disposal to stem the flow of undisclosed lab-grown stones further down the supply chain. But, retailers must also do their part to prevent these stones from ending up in the hands of unsuspecting end consumers.

Jonathan Kendall, president of the International Institute of Diamond Grading & Research (IIDGR), a De Beers Group company, says the first piece of advice for retailers who suspect they might have received undisclosed lab-grown diamonds is not to panic.

The second is to review what safeguards they have in place regarding the products they sell, noting that, “Every individual business is responsible for the integrity of its merchandise.”

Retailers can try to ensure all the diamonds they buy and sell come with an objective grading report. However, not all goods have grading reports. In such cases, they can send out their inventory to any of the major labs for testing. However, this can add up in cost—both for the testing and the associated administrative costs—and time, putting a real strain on smaller businesses in particular. 

An alternative is to invest in one of the diamond detection machines geared toward retailers that allow jewelers to test their inventory, including mounted jewelry, on an as-needed and just-in-time basis. 

IIDGR’s SYNTHdetect identifies diamonds as natural, rather than looking for signs that the stone is man-made, which the lab’s Jonathan Kendall says is “a major step forward in technology.”
IIDGR’s SYNTHdetect identifies diamonds as natural, rather than looking for signs that the stone is man-made, which the lab’s Jonathan Kendall says is “a major step forward in technology.”

HRD Antwerp produces the D-Screen, a portable piece of equipment that distinguishes lab-grown stones from natural diamonds. The machine can also determine if a stone has undergone high-pressure, high-temperature (HPHT) treatment to improve or enhance its color.

The D-Screen can check all diamond cuts and can scan up to 200 stones, from 0.2 carats to 10 carats in D to J colors, an hour, with immediate results. 

IIDGR has just released the SYNTHdetect. Designed for back-office use by jewelry manufacturers and retailers, SYNTHdetect (and the second version of the lab’s automated melee screener, AMS2) works by identifying diamonds as natural, rather than looking for telltale signs of lab-grown origin. This, says Kendall, is “a major step forward in technology.”

IIDGR says it has the industry’s lowest referral rate, around 0.05 percent, compared with other screening products that can have a referral rate approaching 10 percent. The referral rate has to do with those diamonds that the machine cannot 100 percent verify as not being lab-grown and, therefore, must be sent to a gemological lab for further testing. The low referral rate of SYNTHdetect is designed to save retailers both time and money.

IIDGR also offers the lower-cost PhosView ($4,500 versus $16,250 for SYNTHdetect). This is a more basic machine that analyzes parcels of polished diamonds to determine if they contain potential HPHT-grown diamonds only.


GIA is already taking orders for its soon-to-be-released GIA iD100 (pictured above), an easy-to-operate desktop instrument that identifies mounted and loose natural colorless diamonds.

The instrument combines advanced spectroscopic technology and GIA’s extensive research into natural and man-made diamonds to uncover all lab-grown diamonds—made with both the HPHT and chemical vapor deposition processes—and all simulants. The lab is conducting further research to extend the capabilities of the instrument to identify pink diamonds and other gem material.

Finally, DRC Techno’s J-Screen Plus identifies CVD and HPHT lab-grown diamonds and can be used on loose or mounted stones as small as 0.003 carats in any shape. The easy-to-understand results mean that testing can be done by someone with no gemology training.

The company also markets the D-Screen Plus, which works on colorless or near-colorless HPHT and CVD lab-grown diamonds in all shapes and sizes from 0.003 to 10 carats (the machine can screen larger stones and fancy shapes with some mechanical add-ons). While it is primarily aimed at loose stones, D-Screen Plus can also scan set jewelry as long as the diamonds are visible.

The Melee over Melee
While retailers can check larger stones and small amounts of melee, checking large quantities of tiny stones requires more specialized equipment.

For self-testing melee, HRD Antwerp has the M-Screen. This super-fast, automated screening device checks round, brilliant diamonds from 0.5 points to 20 points to identify potential lab-grown diamonds, potential HPHT color-enhanced stones, and diamond simulants. Developed by WTOCD, the Antwerp Scientific Research Centre for Diamonds, it feeds, screens and sorts at least three diamonds per second, or 11,000 diamonds an hour. Depending on the size of the stones and batch, the machine can sort an astounding 15,000 diamonds an hour.


The GIA now has a Melee Analysis Service, which scans small stones to separate natural, untreated diamonds from simulants and potentially man-made or treated diamonds. The diamonds are returned in a sealed package, as seen above. Earlier this year, IIDGR launched the AMS2, the second generation of its automated melee screening machine. It is up to 10 times faster than the company’s first melee screening machine and has a substantially reduced referral rate. This minimizes the need for additional and expensive secondary testing. With a price tag of $45,000, it is primarily for those involved in polished diamond wholesale rather than retailers.

Retailers who deal in large amounts of melee can send parcels to the labs to be tested if they have suspicions about what they are buying.

And if their parcel gets flagged as containing lab-grown diamonds, they should not be surprised.

Earlier this year, for example, the GIA lab in Mumbai reported that almost a third of a parcel of melee screened using its Diamond Analysis Service were undisclosed lab-grown diamonds. Put another way, 101 out of the 323 diamonds were man-made.

Another equipment maker, Hong Kong-headquartered Diamond Services, recently announced its New York lab had detected multiple single-cut lab-grown diamonds sized from 0.0025-0.005 carats mounted in jewelry. (Single-cut stones have 16 to 18 facets, compared with the 57 or 58 facets of a full-cut stone.)

“To the best of my knowledge, this is the first time that a synthetic single-cut stone has been detected mounted in jewelry,” Joseph Kuzi, Diamond Services founder and managing director, said in a press release. “What this means is that almost no diamond can be taken at face value.”

A Cause for Optimism
While the number of undisclosed lab-grown diamonds being discovered is disquieting, the industry seems to be taking the right steps to make sure consumers get the products they want, which might mean lab-grown rather than mined diamonds. 

According to Moses, the use of lab-grown diamonds and their marketing to consumers makes accurate identification and disclosure even more important so buyers can make an informed decision about their choices.

Jonathan Kendall agrees. “With this also comes the added pressure of consumers becoming more aware on the topic of undisclosed synthetics. That’s why testing is so important—it becomes a valuable tool for any business to be able to provide that level of assurance and confidence. With millennials increasingly demanding greater levels of product information, the need to provide this guarantee will only increase.” 

One country taking the need for guarantees further is India. 

The chairman of the country’s Gem and Jewellery Export Promotion Council (GJEPC), Praveenshankar Pandya, recently announced the establishment of an “International Diamond Monitoring Committee” to eliminate supply chain infiltration of undisclosed lab-grown diamonds. The GJEPC said it will offer to pay half of the cost of detection machines for its members to help cut down on the number of undisclosed man-made stones traveling further down the pipeline. 

While there is no way to prevent every single undisclosed lab-grown diamond from entering the pipeline, the fact so many businesses are investing in detection machinery is a cause for optimism. 

But, it is important not to get complacent. The battle against undisclosed man-made diamonds will continue to be waged as long as diamond-makers find new ways to improve production and unscrupulous players insist on compromising the integrity of the industry.

The Latest

US Supreme Court building
Policies & IssuesFeb 20, 2026
Supreme Court Rules Against Most of President Trump’s Tariffs

In a 6-3 ruling, the court said the president exceeded his authority when imposing sweeping tariffs under IEEPA.

Headshot of National Jeweler columnist Peter Smith
ColumnistsFeb 20, 2026
Peter Smith: Happiness, Cavemen, and Jewelry Sales

Smith encourages salespeople to ask customers questions that elicit the release of oxytocin, the brain’s “feel-good” chemical.

Jewelers Vigilance Committee logo
MajorsFeb 20, 2026
Jewelers Vigilance Committee Names Julie Yoakum Board Chair

JVC also announced the election of five new board members.

MJSA Apprenticeship Guide
Brought to you by
The MJSA Mentor & Apprenticeship Program: Attracting & Training the Next Generation of Bench Jewelers

Launched in 2023, the program will help the passing of knowledge between generations and alleviate the shortage of bench jewelers.

Boucheron Faisceaux Brooch
CollectionsFeb 20, 2026
Boucheron’s ‘Faisceaux’ Brooch Heads to V&A Museum

The brooch, our Piece of the Week, shows the chromatic spectrum through a holographic coating on rock crystal.

Weekly QuizFeb 19, 2026
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Ann Weaver Bailey, also known as “Mama Ann”
IndependentsFeb 19, 2026
Bailey’s Fine Jewelry Co-Founder ‘Mama Ann’ Bailey Dies at 100

Raised in an orphanage, Bailey was 18 when she met her husband, Clyde. They opened their North Carolina jewelry store in 1948.

Material Good Boston Location Interior Rendering
IndependentsFeb 19, 2026
Material Good Opens Third Location

Material Good is celebrating its 10th anniversary as it opens its new store in the Back Bay neighborhood of Boston.

JamAlert 1872x1052.png
Brought to you by
How Jewelers Can Fight Back Against Cell Jammers

Criminals are using cell jammers to disable alarms, but new technology like JamAlert™ can stop them.

Original Miami Beach Antique Show sign
Events & AwardsFeb 19, 2026
The Original Miami Beach Antique Show Returns in March

The show will be held March 26-30 at the Miami Beach Convention Center.

Joanna Carson jewelry auction
AuctionsFeb 18, 2026
Joanna Carson’s Jewels Head to Auction

The estate of the model, philanthropist, and ex-wife of Johnny Carson has signed statement jewels up for sale at John Moran Auctioneers.

My Next Question podcast with Marion Fasel and Natalie Francisco
PodcastsFeb 18, 2026
Episode 2: Jewelry Trends & Does the Red Carpet Matter?

Are arm bands poised to make a comeback? Has red-carpet jewelry become boring? Find out on the second episode of the “My Next Question” podcast.

Select Jewelry Graziella Air
MajorsFeb 18, 2026
Select Jewelry Inks Agreement to Distribute Lightweight Gold Jewelry

It will lead distribution in North America for Graziella Braccialini's new gold pieces, which it said are 50 percent lighter.

Community for Ethical Jewelry Logo
Policies & IssuesFeb 18, 2026
Community for Ethical Jewelry Looks for Executive Director

The organization is seeking a new executive director to lead it into its next phase of strategic growth and industry influence.

DCA colored gemstone course on laptop
Events & AwardsFeb 18, 2026
DCA to Host Gemstone Selling Education Session at IJO Event

The nonprofit will present a live, two-hour introductory course on building confidence when selling colored gemstones.

Cece Jewellery Traveller’s Tale Ring
TrendsFeb 17, 2026
A Bit of Jewelry for the Year of the Horse

Western wear continues to trend in the Year of the Fire Horse and along with it, horse and horseshoe motifs in jewelry.

Dr. George Rossman
GradingFeb 17, 2026
Dr. George Rossman, Former GIA Governor, Dies at 81

Rossman, who advised GIA for more than 50 years, is remembered for his passion and dedication to the field of gemology.

Nest doorbell camera footage of suspect in Nancy Guthrie abduction
CrimeFeb 13, 2026
JSA Offering $10K Reward in Nancy Guthrie Case

Guthrie, the mother of “Today” show host Savannah Guthrie, was abducted just as the Tucson gem shows were starting.

Butterfield Jewelers going out of business sale ad
IndependentsFeb 13, 2026
97-Year-Old New Mexico Jewelry Store To Close

Butterfield Jewelers in Albuquerque, New Mexico, is preparing to close as members of the Butterfield family head into retirement.

Paul Morelli Rosebud Necklace
CollectionsFeb 13, 2026
A ‘Rosebud’ Necklace for Valentine’s Day

Paul Morelli’s “Rosebud” necklace, our Piece of the Week, uses 18-karat rose, green, and white gold to turn the symbol of love into jewelry.

Jewelers for Children
MajorsFeb 13, 2026
JFC Announces New Beneficiaries

The nonprofit has welcomed four new grantees for 2026.

Saks Fifth Avenue Club personal styling suite in Austin Texas
MajorsFeb 12, 2026
These 8 Saks Fifth Avenue Stores Are Closing

Parent company Saks Global is also closing nearly all Saks Off 5th locations, a Neiman Marcus store, and 14 personal styling suites.

Tudor Heart pendant on display at British Museum
CollectionsFeb 12, 2026
British Museum Raises $5M to Keep Jewel Linked to Henry VIII, Katherine of Aragon

It is believed the 24-karat heart-shaped enameled pendant was made for an event marking the betrothal of Princess Mary in 1518.

Kering Logo
Events & AwardsFeb 12, 2026
Kering Opens Entries for 2026 Sustainability-Focused Award

The “Kering Generation Award x Jewelry” returns for its second year with “Second Chance, First Choice” as its theme.

Halle Berry’s vintage diamond and sapphire engagement ring
TrendsFeb 11, 2026
Halle Berry’s Retro Engagement Ring Is a Sapphire-Set Stunner

Sourced by For Future Reference Vintage, the yellow gold ring has a round center stone surrounded by step-cut sapphires.

Francesca’s storefront
MajorsFeb 11, 2026
Francesca’s Files for Chapter 11 Bankruptcy Again

The clothing and accessories chain announced last month it would be closing all of its stores.

Zales x Sweethearts Capsule Collection Heart Charms
CollectionsFeb 11, 2026
Zales Turns Sweethearts Into Jewelry for Valentine’s Day Collection

The “Zales x Sweethearts” collection features three mystery heart charms engraved with classic sayings seen on the Valentine’s Day candies.

2026 Gemvision Symposium
TechnologyFeb 11, 2026
Gemvision Symposium 2026 Slated for April

The event will include panel discussions, hands-on demonstrations of new digital manufacturing tools, and a jewelry design contest.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy