India’s government is being urged to adopt the same rules on lab grown terminology as the US.
The GJEPC (Gem & Jewellery Export Promotion Council) says its 7,000-plus members are now required to adhere to the rules introduced by the US Federal Trade Commission (FTC) in 2016 and amended two years later. They have also been adopted by many other countries.
“Since India’s gem and jewellery trade has unanimously accepted the FTC’s new definition with respect to diamonds, we urge the Indian government and ministries to accept, adopt and adapt the same to existing consumer laws of our country.”
The FTC provides detailed guidance on exactly what forms of words can be used. It says: “If you sell laboratory-created diamonds, you should tell consumers that they are not mined diamonds by describing them as “laboratory-grown,” “laboratory-created,” “[manufacturer name]-created,” or some other word or phrase of like meaning so as to disclose, immediately preceding the word “diamond” and equally conspicuously, the nature of the product and the fact it is not a mined diamond.”
Smit Patel, convener of the GJEPC’s lab-grown diamond panel, said: “We have urged the government to align with the advancements and economic significance of lab-grown diamonds by adopting a forward-looking policy framework.”
The Indian government says its Central Consumer Protection Authority (CCPA) has organized a stakeholder consultation on consumer protection for the diamond sector, following representations from the GJEPC.
A stunning 10.33-carat Burmese ruby fetched an impressive $5.5 million at Sotheby’s Magnificent Jewels auction in New York, following a heated six-minute bidding battle between two phone bidders and one participant in the saleroom. The final sale price more than doubled its high estimate.
This cushion-shaped, untreated ruby, set in a ring alongside two pear-shaped diamonds, emerged as the highlight of the 96 lot auction, which achieved a total of $30 million. Notably, 92% of the lots were sold, with 70% exceeding their high estimates.
The auction underscored a strong appetite for rare colored gemstones, exceptional white and colored diamonds, and signed pieces from renowned names like Graff, Van Cleef & Arpels, and Boivin.
A 5.72 carat fancy intense blue diamond beat its high estimate and sold for $8.8m yesterday (10 December) at Christie’s New York.
The cushion brilliant cut VVS1 stone, set in a platinum ring with round diamonds, was the highlight of the Magnificent Jewels auction.
The price realized was $1,539,336 per carat. The pre-sale estimate was $6m to $8m.
The second highest price was for a pair of Harry Winston spinel and diamond earrings. They sold for $2,228,000—four times their high estimate of $600,000.
The sale raised a total of $49.2m, with 97 per cent of the 179 lots finding buyers.
Rahul Kadakia, Christie’s international head of jewelry, said: “Today’s sale in New York was a testament to the vibrant market for jewelry of the highest caliber with singular provenance.
“We were particularly pleased with the result of the top lot – a fantastic fancy intense blue diamond ring that sold for $8.8m.”
The Fancy Color Research Foundation gave the blue diamond a visual score of 8 out of 12 in its pre-sale analysis, noting its low color dispersion.
It said: “True Face-Up: Equivalent to that of a 9.15 carat which is ~59.9 per cent larger than the average
“Analysis: A Fancy Intense Blue Cushion brilliant-cut diamond, polished as a classic colorless diamond, probably manufactured during the 1960s or 1970s.
“The diamond’s inner-grade is very strong, and modifying its facet alignment could increase its saturation to vivid. No significant gray undertone is present in the color.”
Scientists in the UK have produced the world’s first diamond battery.
They say they’re a safe and sustainable alternative to lithium ion – and will last for an incredible 5,000 years.
They look like a conventional watch battery, but are much thinner and destined to power pacemakers, hearing aids and other healthcare devices, as well as satellites, deep space missions and remote sensors.
Nuclear fusion experts at the government’s UK Atomic Energy Authority (UKAEA), working with the University of Bristol, have developed the ever-lasting batteries using lab grown diamonds and an ultra-thin slice of radioactive material, the isotope known as carbon-14.
Neil Fox of the School of Chemistry at the University of Bristol said: “Carbon-14 was chosen as a source material because it emits a short-range radiation, which is quickly absorbed by any solid material.
“This would make it dangerous to ingest or touch with your naked skin, but safely held within diamond, no short-range radiation can escape.”
The semiconductor properties of the diamond convert the radioactivity into electricity, and it’s so hard that it prevents the radioactivity from escaping.
Maruti Impex, described as one of the world’s biggest manufacturers of small natural diamonds, is halting operations, and has advised its 15,000 workers to seek employment elsewhere.
The company’s founder, Suresh Lakhani, aged 45, suffered a stroke three months ago and remains in a coma.
He’s been the driving force behind the business, which he launched in 1995 when he was just 16 years old. He is said to be the sole decision maker.
The future of Maruti Impex, which operates over 100 units, directly and indirectly, in Surat, Bhavnagar, Amreli, and Junagadh, is now uncertain.
Staff were informed of the closure by audio message, just as diamond units re-open after the Diwali break.
They received salaries up to the holiday, but have been told it’s not clear when operations could resume. The company made mention of “three or four months”.
Family members stepped in short term following Lakhani’s stroke, but have reportedly decided to pause operations because of weak market conditions.
Times of India quotes Dinesh Navadiya, chairman of the Indian Diamond Institute, as saying: “Without his (Lakhani’s) leadership and given the current challenging market conditions, the management is unable to continue operations.”
Lakhani describes himself on LinkedIn as a “self-made entrepreneur and philanthropist who has built a successful global business – “Maruti Impex” from scratch. Maruti Impex is one of the largest companies in the world in cut and polished diamonds.”
Diversified mining company Rio Tinto’s second Beyond Rare tender has achieved a strong result, underscoring the rarity and unique provenance of the diamonds on offer.
The auction, which featured some of the world’s most coveted natural fancy coloured diamonds, also showcased the continuing global demand for these rare treasures.
The collection, which comprises 76 diamonds across 48 lots, included an exceptional mix of pink, red, and violet diamonds from the now-closed Argyle diamond mine in Australia, as well as white and yellow diamonds from Rio Tinto’s Diavik mine in Canada.
For the first time, the tender also included seven “Old Masters”, notable historic diamonds from the Argyle mine, further elevating the event’s appeal to collectors.
The tender saw successful bids from 12 bidders spanning Australia, Europe, Japan, Hong Kong, the Middle East, Singapore, and North America.
“The continued strong global interest in highly collectible natural coloured diamonds and the resulting value creation, reflects their stature as works of art to be treasured for future generations,” commented Rio Tinto Minerals CEO Sinead Kaufman.
One standout lot, Lot 40, which featured a 4.04-ct pear-shaped pure white diamond from the Diavik mine, alongside two rare pear-shaped violet diamonds from the Argyle mine, was entrusted to Danish luxury jeweller Hartmanns. The company will work with Glajz, an Argyle Pink Diamonds Icon Partner, to create a one-of-a-kind heirloom jewellery piece from these diamonds.
“I am honoured to be creating a jewelled treasure that reflects each magnificent birthplace of these three esteemed diamonds – Argyle in the remote East Kimberley region of Western Australia and Diavik, just below the Arctic Circle on the frozen edge of the earth in Canada’s Northwest Territories,” said Hartmanns owner Ulrik Hartmann.
Rio Tinto’s Argyle diamond mine, which ceased production in November 2020, was the source of nearly entirely the world’s total supply of rare pink and red diamonds. With 37 years of production, Rio Tinto continues to manage the Argyle Pink Diamonds brand, facilitating sales of remaining inventory and collaborating with prominent jewellers globally.
In addition to owning the Argyle Pink Diamonds™brand, Rio Tinto is the majority owner and operator of the Diavik mine in Canada. The company also continues to explore new opportunities in the diamond sector, with a recent joint venture agreement with Endiama, the national diamond mining company of Angola, to explore the Chiri kimberlite in Angola’s Lunda Sul province.
De Beers has reportedly lowered rough prices at its current sight in Gaborone, by as much as 15 per cent in some cases.
It generally uses price cuts only as a last resort, and prefers to offer sight holders the right to refuse or sell back part of their allocation.
Insiders have expressed surprise, and in some cases disappointment at the move, with the holiday buying season now here, and polished prices finally showing signs of recovery.
According to the Bloomberg news website, De Beers “cut prices by 10 per cent to 15 per cent for most of the goods it sells”. It cited anonymous insiders.
De Beers has until now maintained its prices in spite of weak demand, and despite the fact that they are often significantly higher than other sellers.
De Beers no longer publishes Sight revenues, but it is reckoned to have sold no more than $130m at its November Sight (average per 2023 Sight was over $360m).
Last week the company confirmed it would be cutting the number of Sightholders – there are currently 69 – as of 2026 in a move designed to build partnerships that “create value”.
The future of De Beers remains uncertain, with parent company Anglo American planning to sell it off, and Anglo itself again the focus of intense speculation.
Rival miner BHP, which bid unsuccessfully for Anglo six months ago, is now allowed to make a renewed approach.
Luk Fook reported a 27 per cent slump in its half-year revenue and the closure of 175 of its 3,500-plus retail jewelry stores amid a surge in gold prices and weak consumer demand.
Earnings for the six months to 30 September were down to $700m. The Hong Kong-based jewelry chain blamed: “various challenges including macroeconomic uncertainties, further rising gold prices and cautious consumer sentiment, coupled with a high base effect”.
Luk Fook said the sharp rise in gold prices – an increase of 23 per cent during the six months – affected consumer sentiment, resulting in a 24 per cent drop in the sales of gold and platinum products. Overall same stores sales were down 34 per cent.
CEO Wong Wai Sheung said: “Although the spike in gold prices may affect sales performance, an increase in profit margin will help mitigate the impact of the decline in sales.
“Sales of the gold products are expected to resume to the normal levels after consumers adapt to the high gold prices.
Gross profits for the six months were down 14 per cent to $228m, net profit fell 56 per cent to $54m.
In March, Luk Fook reported a 28 per cent increase in revenue, driven by a post-Covid influx of tourists.
De Beers says it will further reduce the number of sightholders, in a move designed to build partnerships that “create value”.
The emphasis will be on quality rather than quantity, CEO Al Cook told the Facets 2024 conference in Antwerp yesterday (26 November).
De Beers wrote to its 69 current sightholders last month advising them that a new supply agreement, as of January 2026, would be determined by an objective selection and allocation process. It declined to comment at the time.
“There will be some partnerships around the polished side, some partnerships around the rough side, some partnerships around dealing, some partnerships that go all the way into retail, but every partnership must create value, and that’s really important for all of our industry going forward,” Cook told the conference.
De Beers last reduced the number of sightholders in January 2021, when it introduced new contracts dividing buyers into three categories – dealers, manufacturers and integrated retailers.
The number of De Beers sightholders peaked at around 350 in the 1970s. It had halved by 2001 and was further reduced in subsequent changes to the client structure.
The diamond industry, once a symbol of timeless stability, finds itself in a state of flux as prices for natural diamonds hit multiyear lows, driven by a mix of evolving consumer preferences, geopolitical upheaval, and the meteoric rise of lab-grown diamonds (LGDs), a new study shows.
The reversal of fortunes that followed a surge during the covid-19 pandemic has left industry stakeholders grappling with how to adapt to ensure long-term sustainability, consultancy McKinsey & Company says in its latest report.
During the pandemic, diamond prices rose unexpectedly. Supply chain disruptions and the delay of weddings initially dampened sales, but many consumers stuck at home turned to diamonds as a form of self-care. This led to an unanticipated spike in demand and a sharp rise in prices.
The post-pandemic market has painted a very different picture. As traditional engagement and marriage cycles return and supply chains normalize, prices have tumbled amid changing market dynamics, McKinsey & Co. says.
Ten years ago, young customers were an important segment of the overall demand for precious stones. Today, they seek more affordable and ethical alternatives.
With prices up to 80% lower than mined diamonds, LGDs have swiftly carved out a substantial share of the market, challenging traditional producers, the report shows.
Shifting customer values
Increased awareness of environmental, social, and governance (ESG) issues has also driven consumers to demand greater transparency and sustainability in diamond sourcing. Many buyers now insist on proof that their diamonds were mined under fair conditions with minimal environmental impact. This shift is particularly pronounced among younger generations, who are reshaping the jewelry market with their purchasing power and values.
Generation Z is leading a wave of change, favouring ethical and customizable products over traditional offerings. Younger buyers are more likely to seek out jewelry that aligns with their values, including fair labor practices and sustainability.
Many are turning to digital platforms for their purchases, with online fine jewelry sales growing significantly. In 2021, the average online purchase of diamond jewellery in the US was $2,204, compared to $2,994 in physical stores, signalling a growing comfort with digital transactions for high-value items.
The trend of self-purchasing is another key shift. Rather than waiting for significant life events like engagements or weddings, many consumers are now buying fine jewelry for themselves.
Industry actors Beers Group and Signet Jewelers launched in October their “Worth the Wait” campaign, aimed at reigniting demand for mined diamonds from youngsters, particularly amid “zillennials”, the microgeneration born between 1993 and 1998.
Geopolitical and gov’t factors
Adding to the industry’s challenges are geopolitical tensions. Sanctions targeting Russian diamonds have disrupted the global supply chain, particularly for larger stones. Russia’s Alrosa, once the world’s top diamond producer by output, has been heavily sanctioned by the US and the European Union, creating regional dislocations.
McKinsey & Company warns that, by March 2025, these restrictions will tighten further, targeting stones of 0.5 carats and above, exacerbating supply chain issues.
The upheaval comes at a time when natural-diamond production is already constrained. Growth in supply is expected to remain sluggish, with an annual increase of just 1–2% through 2027, far below historical trends. Major mining companies are grappling with depleting resources, forcing them to shift from open-pit mining to more expensive underground operations. Companies like De Beers have invested billions to extend the life of their mines, but these efforts are costly and time-consuming.
Government intervention is also reshaping the industry. In diamond-rich regions, including Botswana, public authorities are taking larger stakes in mining operations, emphasizing the need for transparent and sustainable practices.
Despite the challenges, there are opportunities for companies willing to adapt, the consultancy says. Producers can diversify their offerings by incorporating LGDs or recycled diamonds into their portfolios. They can also emphasize the unique, intrinsic value of natural diamonds, appealing to consumers who value rarity and tradition. Investments in sustainability and digital commerce are likely to pay dividends, as consumers increasingly demand ethical and seamless shopping experiences.
The consultants conclude that by embracing innovation and aligning with shifting consumer values, the industry may find a way to shine brightly once more.
