The Natural Diamond Council (NDC) has released its highly anticipated 2023 analytical report titled “Diamond Facts: Addressing myths and misconceptions about the diamond industry.” The comprehensive report aims to tackle misinformation surrounding both natural diamonds and their synthetic counterparts.
“In an age where consumers are more inquisitive and enlightened than ever, they wish to know about the values and responsible business practices from the companies and indeed the wider industry from which they are purchasing,” said David Kellie, CEO of the NDC.
Adding, “At the Natural Diamond Council, we want to support consumers in taking informed decisions by providing information transparently.”
The report challenges several common misconceptions prevalent in the diamond industry, presenting supporting facts to shed light on the truth.
Some key highlights from the report include:
Laboratory-grown diamonds can be detected from natural diamonds
Professional verification instruments can identify all laboratory-grown diamonds. Laboratory-grown diamonds exhibit distinct growth-related features and patterns due to their mass production process, which takes just weeks, unlike natural diamonds that form over billions of years.
Not all laboratory-grown diamonds are sustainable
The creation process of laboratory-grown diamonds replicates natural diamond formation, requiring a substantial amount of electricity, often sourced from the national grid.
Over 60 per cent of laboratory-grown diamonds are mass-produced in China and India, where a significant portion of the grid electricity is derived from coal.
The manufacturing of laboratory-grown diamonds involves extremely high temperatures, comparable to 20 per cent of the temperature of the Sun’s surface.
Natural diamonds are inherently rare and finite
Natural diamond formation occurs over millions or billions of years in limited zones of the earth’s mantle under extreme temperatures and pressures.
Global natural diamond recovery peaked in 2005 and has declined by over 30 per cent in the last 16 years.
The annual recovery of 1 carat diamonds is equivalent in volume to an exercise ball.
Laboratory-grown diamonds have experienced significant price depreciation
The average price of a 1.5 carat laboratory-grown diamond has decreased by over 74 per cent from 2016 to 2023.
While natural diamond prices have fluctuated, they have, on average, risen by 3 per cent per annum over the last 35 years.
Ethical sourcing is a priority for the natural diamond industry
The Kimberley Process, mandated by the United Nations and the World Trade Organization, ensures the trading of rough diamonds is strictly regulated to prevent conflicts.
The Responsible Jewellery Council (RJC) provides third-party audited certifications to warrant responsible sourcing.
Brands, retailers, and jewellers are increasingly implementing ethical sourcing protocols and policies to ensure transparency in their supply chains.
The report also highlights the positive environmental impact of natural diamonds, their contribution to local economies, and the industry’s efforts in protecting biodiversity and supporting communities.
