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

16th century flower cluster hogback diamond ring
AuctionsJun 12, 2026
16th-Century ‘Hogback’ Diamond Ring Going Up for Auction in London

Found by a metal detectorist, the ring likely belonged to a wealthy, possibly royal, owner, said Noonans.

Chouette Designs Margaux Ring
CollectionsJun 12, 2026
Chouette Designs To Launch Collection Celebrating All Types of Love

Our Pride Month Piece of the Week, the “Margaux” ring, is part of the wife-and-wife team’s new “Lovestoned” collection.

CBG logo
Events & AwardsJun 12, 2026
CBG Announces Plans for Phoenix Show

The group has named the keynote speaker and announced a new pavilion for its next event, which is slated for September.

PG-05-SHOT-2-LUCIDA.033 1.png
Brought to you by
All Eyes on Gold Prices. Alternatives to Look For. And What to BEWARE of in Vegas

As gold prices rise, today’s retailers are looking for alternatives at prices that will appeal to wider audiences.

A selection of animal jewelry
EditorsJun 11, 2026
This Was the Best Animal Jewelry in Las Vegas

From lions and hippos to snails and fish, Senior Editor Lenore Fedow wrangles her picks for cutest jewelry critters in Las Vegas.

Weekly QuizJun 11, 2026
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Marie-Laure Cérède
MajorsJun 11, 2026
Former Cartier Creative Director To Head Chanel’s Jewelry Creation Studio

Marie-Laure Cérède will join Chanel as the new director of its jewelry creation studio, starting in October.

Smiling Rocks booth at JCK Las Vegas 2026
Lab-GrownJun 11, 2026
Smiling Rocks’ ‘Wish Jar’ Generates 100+ Wishes in Las Vegas

At the JCK show, the lab-grown diamond brand teamed up with Jewelers for Children to support Make-A-Wish India.

1872x1052-NextGem-2026-National-Jeweler-Advertorial.jpg
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry Retailers

With the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.

Azure blue diamond and 5.04-carat fancy vivid blue diamond
AuctionsJun 10, 2026
31.62-Carat ‘Azure Blue’ Diamond Sells For $8M+ at Christie’s

It was a banner day for blue gemstones, with another blue diamond topping $8 million and a 41-carat sapphire going for $2.3 million.

Saks Fifth Avenue New York City storefront
MajorsJun 10, 2026
Saks Global Receives Bankruptcy Court Approval for Reorganization

The approval means the retailer is on track to exit bankruptcy proceedings this summer.

Jalen Javon Davis and Leslie La Vun Jones II
CrimeJun 10, 2026
2 Suspects Arrested in Texas Jewelry Store Robbery

The men are believed to be part of the group of several masked suspects that robbed Marc Robinson Jewelers in April.

Sylvie Levine wearing engagement ring
CollectionsJun 10, 2026
Sylvie Debuts ‘Elevated’ Bridal Collection Inspired By Designer’s Ring

The bridal-focused brand is also launching its Custom Atelier this summer, a digital custom design tool for its authorized retailers.

De Beers Group CEO Al Cook
EditorsJun 09, 2026
Q&A: Al Cook on the Lab-Grown ‘Bubble,’ Dwindling Diamond Supply

The De Beers Group CEO also discussed tariffs, Desert Diamonds, and the pending sale of De Beers in an interview with Michelle Graff.

Russ Whitehouse
MajorsJun 09, 2026
Wilkerson's Russ Whitehouse Retires

The industry veteran is bringing his 56-year run in the fine jewelry sector to an end.

Pride in the Industry LGBTQ+ Voices in Jewelry panel
Events & AwardsJun 09, 2026
Pride Month Panel to Highlight LGBTQ+ Jewelry Voices

The panel discussion will feature LGBTQ+ leaders across the jewelry, luxury, and creative industries.

Marie Lichtenberg Smash Collection Campaign Imagery
CollectionsJun 09, 2026
Marie Lichtenberg’s New Capsule Collection Is a Smash, Literally

Inspired by a locket that got run over, the “Smash” capsule collection reimagines the shape of Lichtenberg’s signature style.

Katherine Whitacre
MajorsJun 09, 2026
Frederick Goldman Names Director of Sales for Southeast

The company has promoted Katherine Whitacre to the role.

Collage of new Stuller items
MajorsJun 08, 2026
Stuller Expands Selection of Lab-Grown Diamonds, Demi-Fine Jewelry

The jewelry manufacturer has added Taylor Swift-esque diamond shapes, and more silver, gold vermeil, and gold-plated jewelry.

De Beers Group’s Sally Morrison
SourcingJun 08, 2026
Sally Morrison to Depart De Beers This Summer

Morrison has been marketing diamonds on and off since the early 2000s and said she is leaving to “pursue new projects.”

Lauren K Gemma pendant
TrendsJun 08, 2026
Amanda’s Style File: June’s Birthstone Trio

Those born in June can celebrate with pearl, alexandrite, and moonstone jewelry.

Overnight Mountings Ring Builder Platform
TechnologyJun 08, 2026
Overnight Mountings Launches Ring Builder Platform

The platform allows retailers to guide clients through a customizable engagement ring buying experience in a branded interface.

Dunkelberger’s Fine Jewelry
IndependentsJun 05, 2026
Pennsylvania Jewelry Store To Close After 79 Years

Jim Springer, owner of Dunkelberger’s Fine Jewelry, is heading into retirement.

Stock image of a person shopping at the grocery store
SurveysJun 05, 2026
Consumers to Cut Back on Spending Amid Rising Prices, Survey Shows

When conducting its May consumer confidence survey, The Conference Board asked extra questions about consumers’ budgeting strategies.

Rebel Jewelry Tunnel Charm
CollectionsJun 05, 2026
Rebel Jewelry’s Charm Symbolizes Perseverance for Pride Month

The “Tunnel” charm, our Piece of the Week, celebrates Pride Month with its design inspired by hope and the light at the end of the tunnel.

Three gold rings set with yellow- and brown-hued diamonds
SourcingJun 05, 2026
State of Diamonds: The Way Forward for Natural Diamonds

The jewelry industry is reassessing its positioning as Gen Z reshapes the retail landscape and lab grown continues to gain market share.

A Marvelous Journey: The Collection of Maurice Tempelsman
AuctionsJun 04, 2026
Treasures from Maurice Tempelsman’s ‘Marvelous’ Life Head to Auction

Up for auction at Sotheby’s, the collection of Tempelsman’s personal effects includes a Cartier Tank watch Jackie O. gifted him.

Dakota Badia and Nancy Badia
CollectionsJun 04, 2026
Buddha Mama to Spend the Summer in Aspen

The Miami-based fine jewelry brand will host its first summer residency in the Colorado mountain town from June 5 to Aug. 23.

×

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