Members of the global diamond trade may face arbitration for dealing in diamonds with a color grading that differs with industry standards by more than one grade, according to a new policy issued by several industry organizations. The policy statement, obtained by Rapaport News last week, was formulated by the World Federation of Diamond Bourses (WFDB), the International Diamond Manufacturers Association (IDMA) and CIBJO – The World Jewellery Confederation.
Shmuel Schnitzer, president of the Israel Diamond Exchange, says he fully expects to hold members responsible for selling overgraded certs, and believes the new policy statement will make all labs tighten up their grading. “You saw what happened to certain labs,” he says. “That is enough to make any lab realize this is not a joke.” Reuven Kaufman, president of the Diamond Dealers Club in New York, says the prospect of a being taken to arbitration will make members avoid selling overgraded reports. “This is a tremendous deterrent right away not to play the certificate game,” he says. “People will think twice about doing things that are not right.”