Two Israeli diamond firms – LYE Diamonds Ltd and ESGD Diamonds Ltd belonging to Gaby and Yossi Yelizarov – have laid down a lawsuit in New York against the Rapaport Group and the GIA relating to a case of a mystery treatment that the GIA said temporarily improves a diamond’s color. The GIA said it discovered the treatment last year which it claims temporarily improves a diamond’s color. The lawsuit case relates to a case a year ago when the GIA said that it discovered around 500 diamonds that, in its view, had been treated by a previously unknown color-improving process, JCK explains.
The GIA has developed a fully automated system which it says can rapidly and accurately analyze and sort round D-to-Z melee-size diamonds. The system was developed in response to concerns in the gem and jewelry industry about the possibility of synthetic or treated diamonds being mixed into parcels of melee. The pilot for the GIA's Melee Analysis Service will be carried out next month at GIA’s laboratory in New York. The service will be offered at all GIA locations, with the roll out beginning in the third quarter of this year.
The GIA is to start using a screening machine for detecting lab-grown diamonds in batches of melee in the next few months, JCK reports. It will not be offered to the trade, however, unlike the melee-screening device that De Beers has developed. The automated device can screen synthetics and treated diamonds from batches of D-to-Z round melee-size stones. It can also sort melee by size and color. The cost of the service will be size-dependent but will likely start at about 10 cents per stone.
De Beers Group's International Institute of Diamond Grading and Research (IIDGR) launched its generic diamond grading program last February, entering "what arguably is the most contentious space in the diamond distribution chain where concerns have grown over grading consistency and standards, or lack thereof, in the past few years," writes Rapaport.
The Indian government on 30 March exempted from customs duty cut and polished diamonds imported by HRD Antwerp's Mumbai Diamond Institute for grading and re-export, taking the number of such entities enjoying the facility to four. In July last year, the Central Board of Excise and Customs (CBEC) had exempted from customs duties cut and polished diamonds imported for grading or certification and re-export by three laboratories and agencies.
The GIA reports that rapid progress in the last few years in High-Pressure, High-Temperature (HPHT) technology is now being used to produce melee-size diamonds around 2–3 mm in diameter and large colorless single crystals all with significantly improved quality and growth rate. A Russian company is reportedly growing multiple large, gem-quality colorless diamond crystals in a single run, while the GIA reports on large diamond crystals manufactured using a similar technology by Jinan Zhongwu New Materials Co. Ltd in Shandong, China.
The Russian company New Diamond Technology (NDT) yesterday presented an emerald-cut blue diamond, 5.03-carat, VS1 high-pressure, high-temperature (HPHT) type-IIb stone at BaselWorld. It is the largest synthetic blue diamond to date and was certified by the International Gemological Institute (IGI). NDT is one of the founding members of the new International Grown Diamond Association.
I have been a strong proponent of generic diamond marketing. Fragmenting the diamond market with diamond brands is having a negative effect on the consumers’ perception of generic diamonds. Currently, we are not only witnessing diamond brand wars but a new war is developing involving diamond reports. De Beers is taking on the GIA by opening their grading facilities to the general trade and Martin Rapaport is taking on the world with his new Investment Diamond Report ... These reports, like branded diamonds, are harmful to the marketing of generic diamonds.
The Gemological Institute of America (GIA) has graded the largest polished blue synthetic diamond that the organization has ever examined. The emerald-cut, 5.03-carat HPHT Type-IIB stone was made by New Diamond Technology (NDT), based in St. Petersburg, Russia. The firm is one of the founding members of the International Grown Diamond Association which was launched earlier this month. The stone was inspected at the GIA's New York lab last month and received a fancy deep blue grade, according to a lab. The GIA published an exhaustive article on the stone's characteristics.
In a follow-up article to Chaim Even-Zohar's bombshell about CVD synthetic diamonds being sold on Alibaba with GIA natural diamond certificates, the Diamond Intelligence Briefing (DIB) identifies the name behind the fraud: Diwakar Dhyani.
"The Government of India should set up a regulatory authority to monitor the gemological laboratory business in India. The gemological laboratories issue only grading reports and no certificates. These laboratories have their own set of rules and regulations and even if consumers are cheated they have limited or no role to play. If a consumer has purchased a lab-grown diamond on natural diamond grading report, where will he go on being cheated? Who is responsible?
Alibaba, the leading e-commerce portal for global wholesale trade blacklisted and removed a New Delhi-based supplier of synthetic diamonds and gem simulants after it tried to sell lab-grown diamonds with fake Gemological Institute of America (GIA) natural diamond certificates. The New Delhi-based seller identified as International Trading Corporation (ITC) had put up the wholesale offer to supply 10,000 carats of CVD diamonds a week with the GIA certifi
By Chaim Even-Zohar. Reprinted from Diamond Intelligence Briefs by special arrangement.
In a startling revelation, industry analyst Chaim Even-Zohar will this week unveil an investigation that shows that CVD lab-grown diamonds are being offered for sale with GIA natural diamond certificates by the giant Chinese online retailer Alibaba which claims to have 400 million users. The diamonds, which come with laser inscriptions and GIA certificates, are offered for sale by an Indian company called the International Trading Corporation.
The International Diamond Week at the Israel Diamond Exchange (IDE) officially opens today in the diamond trading hall of the bourse, with hundreds of buyers from overseas participating in the event, the IDE said. CIBJO President Gaetano Cavalieri will carry out the official opening of the buyers' week, which runs until February 18, and later will sign a statement of purpose for the establishment of the Israel Diamond Jewelry organization. Later on Monday, a panel will address the issue of marketing diamonds.
"The illustrious story of the impeccable blue diamond began in the 17th century when Jean Baptiste Tavernier, a French diamond merchant, traveller and pioneer of diamond trade with India, first set eyes on a unique and unforgettable diamond in India. The “superfine deep blue” that so captivated Tavernier was later sold to King Louis XIV in 1669 as the famous French Blue, used to adorn the crown of Queen Marie Antoinette.
JCK reports that six more people have been arrested by the Indian authorities in the investigation into unauthorized access (hacking) of the GIA database, according to an Institute announcement. GIA declined to release their names. GIA previously identified the submitting companies, who are no longer permitted to submit stones to its lab pending an investigation.
An American business site reports that two Maryland residents are suing a firm called Mervis Diamond Importers for allegedly selling them diamonds that were overgraded. CEO Ronnie Mervis said he hasn't read the suits yet and could not comment on them specifically. But in a statement posted on the Mervis website before the lawsuits were filed, Mervis offers a video with a personal message addressing the accusations and dismissing the questions as a “smear campaign.” “Recently, we’ve been challenged and harassed by a group from out of state making wild allegations,” he said in the video.
Botswana’s Minister of Minerals, Energy and Water Resources Kitso Mokaila and GIA President and CEO Susan Jacques officially opened the GIA’s expanded lab and education facility in Gaborone. “Botswana plays a significant role in the diamond industry as one of the largest producing countries – both by value and volume,” said Jacques.
Louis Pearl, rough diamond consultant and gemologist, takes a hard look at eroding profit margins throughout the diamond pipeline from a historical perspective and - for a change - does not place all the blame on the major miners.
Gems and Jewellery Export Promotion Council (GJEPC) Chairman Praveenshankar Pandya and Bharat Diamond Bourse (BDB) President Anoop Mehta strongly reiterated at the opening of the Diamond Detection Expo & Symposium in Mumbai that the Indian diamond industry is totally committed to preventing the undisclosed mixing of synthetic diamonds in order to maintain consumer confidence in natural diamonds. Pandya announced that the industry would be forming a Natural Diamond Monitoring Committee (NDMC) in Surat along the lines of the similar body it has set up in Mumbai.
Israel-based Tweezar is a startup company that is trying to disrupt the global diamond trade by means of a new diamond imaging device. The device takes a high-definition image of a diamond, and merchants can then use the Tweezar app on their smartphone, which has embedded optical character recognition (OCR) technology, allowing them to scan the diamond’s certificate from the Gemological Institute of America (GIA) or the International Gemological Institute (IGI).
Rami Baron, president of the Diamond Dealers Club of Australia and CEO of jewelry insurer Q Report, warns about the proliferation of cybercrime in the jewelry industry. "There isn’t anyone I know who hasn’t had some sort of cyber fraud inflicted on them, or at least knows someone close to them who hasn’t suffered a loss," he writes. "The diamond and jewelry industry is easy pickings", adding that, "We all recently saw the GIA get hacked. Is your security better than theirs?
Stella Layton, Chief Executive and Assay Master of the Assay Office Birmingham (AOB), spoke about diamond grading at CMJ’s UK Jewellery Conference last month: “It’s inconsistent – it’s based on subjectivity and there is a wide range of grading happening globally across diamonds, not just lab to lab but person to person.” Layton said that there is as yet no science that may be applied across the board to determine the exact grade of a stone, and even standard guides used to unify graders are open to interpretation.
Leading global gem labs and machinery manufacturers will exhibit their technology and equipment for the detection of synthetic diamonds at the Diamond Detection Expo & Symposium (DDES 2015) next month. There will also be seminars and panel discussions featuring experts and trade members. DDES 2015 is being organized by The Gem & Jewellery Export Promotion Council (GJEPC) and the Bharat Diamond Bourse (BDB) and takes place on December 15-16 at the BDB in Mumbai.
The GIA said in a statement that just 175 of the 1,042 diamonds discovered to have had their grading reports changed in a hacking case by the lab's Indian sub-contractor have been returned for examination to the lab. It is imperative that all of the diamonds and their reports be returned to GIA for examination to remove the fraudulently altered reports from the market. The diamond trade must hold those who would commit such fraudulent acts accountable for their actions. The cooperation of the trade is vital as GIA works to fully address this fraud.
Mel Moss, president of Regal Imports Ltd., discusses his "terrible" buying trip to India, bemoaning the lack of well graded polished diamonds (particularly Canadian) and the "abundance of poorly graded GIA stones selling at discounts." As of early November, quality goods in India were on demand but simply unavailable. Consequently, "any fresh and properly graded diamonds in SI qualities will be priced very high.
JCK reports Brad Brooks-Rubin, former adviser on conflict diamonds at the US State Department, who joined GIA in May last year to work on beneficiation programs, has now joined the Enough Project, an NGO focusing on ending the trade in conflict minerals in Africa, as policy director. In his capacity, Brooks-Rubin will oversee the activities of The Sentry, a new initiative that aims to uncover who is involved in funding conflict.
The Gemological Institute of America (GIA) will be holding seminars at the Israel Diamond Exchange next week aimed at improving understanding and knowledge about treatments and synthetics. The speakers at the seminars will be Dr. James Shigley and Brenda Harwick.
RapNet, the Rapaport Diamond Trading Network, has suspended 10 members pending further investigation. The members have also been suspended by the Gemological Institute of America (GIA) for allegedly participating in a scheme that hacked into the GIA’s computer system and upgraded 1,042 GIA grading reports. GIA issued laboratory alerts invalidating the grading reports and naming the suspended members. RapNet has removed all diamonds with grading reports involved in this matter as well as all other diamonds listed by suspended members. The names of the suspended Rapnet Members are:, A.
Industry analyst Vinod Kuriyan writes on the dismal state of affairs in the Indian diamond industry today. The most recent scandal - the data breach at the Gemological Institute of America (GIA), where several Indian diamond companies got former employees of the GIA’s technology provider to hack into the system and alter color and clarity grades for 1,042 diamonds they had submitted, in an attempt to increase their value and dupe consumers - is not an isolated incident by any means, writes Kuriyan.
The GIA is cooperating with the Indian police authorities investigating the unauthorized remote access to GIA’s grading information database and the alteration of 1,042 diamond grading reports and two former employees of Tata Consultancy Services (TCS) are in custody. The Indian police informed the GIA that the investigation has reached a point where we may now publish the client accounts that submitted the diamonds in question.
JCK reports the Gemological Institute of America has revoked 1042 grading reports from diamonds predominantly submitted at GIA in India, after internal controls revealed reports were altered by former employers of GIA's database partner Tata Consultancy Services (TCS) hacking into the system. GIA urges clients in possession of any of these grading reports or diamonds to return them immediately to GIA. Both GIA and TCS said they have transfered the results of their investigation to Indian police authorities, who are currently investigating the matter.
The Gemological Institute of America (GIA), recognized as one of the foremost authorities in gemology, has raised its profle in Japan by launching its website in Japanese. The announcement from GIA reads, “The translation of our website is part of GIA’s commitment to delivering gemological information and instruction in Japan in Japanese,” said Bev Hori, GIA’s chief learning officer and senior vice president of education. “Japan is one of the world’s largest markets for gems and jewelry, so it’s important for GIA to make our educational resources available in this important country.
The Gemological Institute of America (GIA) will begin growing diamonds at its research facility in New Jersey in order to keep up with identification and treatment of the stones, which are becoming more prevalent in the industry.
Tom Moses, the GIA's Executive Vice President and Chief Laboratory and Research Officer, told a meeting of the International Diamond Week at the Israel Diamond Exchange that the lab is planning to open a diamond synthesis facility in New Jersey.
The GIA aims for the facility to be operational by January and for it to be a research laboratory where GIA gemologists can look deeply into different treatments that a lab-grown diamond might be subjected to, and attempt to keep one-step ahead of producers of lab-grown diamonds.
The Gemological Institute of America (GIA) will offer its Graduate Diamonds diploma program in Hyderabad, India. The seven-week program begins on August 20 and will provide a theoretical understanding and practical knowledge to students seeking to learn the four 4Cs: cut, carat, color and clarity.
Mel Moss, industry activist and President of Regal Imports Ltd., discusses the "perfect storm" of miners cluttering the pipeline with unprofitable downstream endeavors, consumers losing interest and negligible profits for all: "Diamond miners are trying to make a profit, but under current conditions, their profit does not allow any profit for their customers. Diamond cutters are faced with a consumer that is not interested in paying more for diamonds, if they are interested in buying diamonds at all.
More than 600 people attended the GIA’s New York Jewelry Career Fair where jobseekers were given the opportunity to meet in-person with representatives from 48 companies during the jewelry industry’s largest recruiting event. A wide range of gem and jewelry companies, including Cartier, Christie’s, CIRCA Inc., Jewelry Television, Rent the Runway and Tiffany & Co., were looking to fill hundreds of positions. The program also featured a panel discussion with industry veterans and one-on-one coaching with 23 gem and jewelry professionals.
The U.S. Postal Service (USPS) has reportedly lost a parcel of diamonds worth $50,000 shipped express to the Gemological Institute of America (GIA) lab in Carlsbad, California, according to Nashville, Tennesee, local television station WSMV-TV. Joey Nunley, co-owner of Nashville jewelry store Prima Jewelers, said it was the first time in 20 years of sending diamond parcels through the mail that a package had gone missing. He insured the parcel for the legal maximum of $5,000.