Yesterday I posted on Substack notes about an article from National Jeweler, published on July 31, which reported that a New York City diamond dealer allegedly swapped natural diamonds for lab-grown ones. This article quickly spread across many jewelry and gem-related social media accounts, igniting widespread concern and raising questions about the integrity of both lab-grown and natural diamond markets. I wanted to share this with my friends here on this platform, as I do.
I had previously touched on these issues in a piece called "The Diamond Debate." To get a more on-the-ground perspective, I spoke with my friend, the diamond dealer from "What's the Deal?" and here's what I learned:
This issue isn't new; it's been happening for at least the past decade. My friend mentioned that stones being swapped at trade shows have been a long-standing problem. Diamond dealers often list their stones on platforms like RapNet, where all the details, including the GIA certificate number (laser-inscribed on each stone), are available. In one such case, individuals in China used this information to cut lab-grown or synthetic diamonds to match these specifics. They targeted specific dealers at trade shows, performing a quick sleight of hand to swap their lab-grown diamonds for natural ones. These synthetic stones were crafted to match the exact dimensions, color, clarity, and even the GIA report number of the listed natural diamonds. Often, the dealer doesn't realize the swap has occurred until it's too late.
There was a notable story about a reputable jewelry house in Italy being fooled. The stone, an antique oval diamond set in a Buccellati mounting possibly 100 years old, displayed typical signs of age: abrasions and chips along the girdle from regular wear and tear, a large culet, and fair symmetry (common in hand-cut stones from that period). It was examined by an auction house, several diamond dealers, and a cutter specializing in antique stones, all of whom found no issues. However, after being sent to GIA, it was revealed to be lab-grown. The jewelry house had purchased this diamond from a private individual who walked in off the street. They had his ID and contact information, but he seemingly disappeared and was never apprehended. The jewelry house lost hundreds of thousands of dollars as a result.
Such stories are not uncommon, but the diamond business relies heavily on reputation and trust, often built through handshake agreements. Those with bad reputations are known within the community. To protect themselves, consumers should buy from reputable jewelers with a long-standing history. They should check reviews, seek referrals, and, if concerned about the authenticity of natural diamonds, consider working with jewelers who specialize exclusively in natural diamonds. While even experienced jewelers can occasionally be deceived, the principle of "fool me once, shame on you; fool me twice, shame on me" applies. Many, if not most, jewelers have machines in their stores or offices to test for lab-grown diamonds, or they have access to such testing devices. Additionally, labs offer these testing services directly to consumers.
One touching aspect that often goes unnoticed is the impact of lab-grown diamonds on communities whose livelihoods and way of life depend on natural diamond mining. The rise of lab-grown diamonds is leading to job losses and economic difficulties for those who rely on this industry. Furthermore, the energy consumption and emissions associated with lab-grown diamonds are often greenwashed, hiding behind claims of ethicality and sustainability. However, these diamonds, much like fast fashion, lack second-hand value and are difficult to resell.
So, can lab-grown and natural diamonds coexist? Yes, they can. Lab-grown diamonds provide a more affordable and accessible option for those who might otherwise be unable to purchase a diamond. Many young couples start with lab-grown diamonds and later choose natural ones as their circumstances evolve. Both types of diamonds have a place in the market and can coexist harmoniously, provided that transparency and honesty are maintained.
This recent article only scratches the surface of a broader issue. To ensure that both lab-grown and natural diamonds are valued appropriately, it is essential to promote industry-wide trust and transparency. By doing so, we can maintain integrity in the market and protect consumers from deception.
I hope you found this post both helpful and informative. I’d love to continue the conversation, so please feel free to comment or message me with your thoughts and questions.
xx Veronica
"It was examined by an auction house, several diamond dealers, and a cutter specializing in antique stones, all of whom found no issues. However, after being sent to GIA, it was revealed to be lab-grown." This part is so interesting because if the lab-grown diamonds are now practically indistinguishable from the natural ones, why is it that one is more valuable than another? Will they all eventually be worth the same?
So happy you tackled this complex (but also
straightforward) issue. So many people have been fooled by the resale value of lab diamonds and I have friends who invested in them for wedding/engagement before realising that they have no real resell value!