Jobs hit as diamond industry cuts output

The US and China consume 60 per cent of the world’s production of diamonds. Recently consumer demand in these key markets is either depressed or subdued due to various reasons.

MSME-dominated diamond cutting and polishing industry is facing a crisis. Several units have reduced their production days and thousands of labourers have gone out of job. Working capital crunch, sluggish demand from China and falling polished diamond prices have been affecting the industry. Jewellery makers too are worried about the increase in the customs duty of gold and silver.

“At least 30 per cent of the MSMEs, which are into polishing works, have reduced their capacity utilization.

Instead of six days, now they are working five days. These are units that procure raw materials from larger companies and return them after polishing. Further, several units in Saurashtra and north Gujarat are affected to the extent that thousands have gone out of job. These units employ 10 to 15 workers. Around 10,000 to 15,000 are out of work and have returned to agricultural jobs,” said Dinesh Navadiya, Member of Surat Diamond Association.

According to him, multiple issues are affecting the industry. Companies have been facing working capital crunch due to shortage of bank finance. While domestic banks have cut their borrowing limits to the gems and jewellery sector, the PNB scam has also made it difficult for exporters to credit from international agencies for buying roughs. Delayed GST refunds too are blocking the working capital.

“Liquidity crunch and lack of adequate finance to the sector have added to the woes. This has resulted in factories limiting their production,” said GJEPC Chairman Pramod Kumar Agrawal.

The off-take of polished diamonds by China either directly or through Hong Kong has come down considerably with the trade war. Weaker Yuan has made imports costly for the jewellery sector.

“The US and China consume 60 per cent of the world’s production of diamonds. Recently consumer demand in these key markets is either depressed or subdued due to various reasons. There is a recessionary trend in China. Retail sales are down. The US-China trade war is adding to the volatility and uncertainty. There is destocking by retailers in major consuming countries such as the US and China and they are not reordering,” said Agrawal.

While the demand is slow, the polished diamond prices too have been coming down. Diamonds of one carat and more have been seeing continuous erosion of prices. This has forced the companies to limit their rough purchases. In caratage terms, import of rough diamonds and export of polished diamonds are down by around 23 per cent in the first two months of this fiscal. It was down 13 per cent in last fiscal.

Source: mydigitalfc

India Differentiates Synthetics Imports

Lab grown rough diamond

India has introduced an import classification code solely for lab-grown rough diamonds, enabling the industry to keep better watch of synthetics entering the country.

The government has separated the Indian Trade Clarification (ITC) code for rough synthetic gemstones into diamonds and non-diamonds, the Gem & Jewellery Export Promotion Council (GJEPC) reported last week. The move will help organizations such as the GJEPC track the precise quantities of lab-grown diamonds coming into the market, explained Colin Shah, the council’s vice chairman.

Previously, all rough synthetic gemstones carried the same Indian import code — 71042000 — whether they were man-made diamonds or other stones. From now on, rough lab-grown diamonds will fall into 71042010, while other rough synthetic stones will be assigned 71042090. Trade data for the two categories is likely to be available starting in August, the GJEPC said. Natural rough diamonds will retain their code of 71023100.

ITC codes are unique numbers for each type of product, and are based on the international Harmonized System (HS) of codes. The government announced the change in last week’s Union Budget, following lobbying by the GJEPC.

“This will go a long way in strengthening the efforts of the council to monitor the two pipelines and maintain their integrity,” said GJEPC chairman Pramod Agrawal.

India already has the distinction for polished: Synthetic diamonds carry the ITC code 71049010, while other polished synthetic gemstones are labeled 71049090. However, until now, the GJEPC has chosen not to publish the official trade figures for synthetic diamonds in its monthly data release, instead providing one total for all synthetic polished gemstones, including diamonds, and an equivalent for rough. It’s in the process of changing its reporting methods, and will soon publicize the whole range of available data across rough and polished, it confirmed.

India is one of the first countries to keep close tabs on lab-grown trading, the GJEPC claimed. China already has a similar distinction for its import codes, while the European Union will adopt a Combined Nomenclature (CN) customs code for synthetic diamonds on January 1, 2020, the GJEPC added. Australia and Russia are likely to follow suit, it noted.

The budget — the country’s first since the reelection of Prime Minister Narendra Modi — also saw the introduction of an online service enabling small and medium-sized enterprises to obtain loans of up to INR 10 million ($146,000) within 59 minutes. The government will allocate INR 3.5 billion ($51 million) to subsidize interest repayments for companies of that size that are registered for the nation’s goods and services tax. The initiatives are open to a range of industries, including jewelry.

Additionally, the government will charge a 2% “tax deducted at source” on cash withdrawals exceeding INR 10 million ($146,000) to discourage cash payment for business purposes.

Source: Diamonds.net

Red And Pink Diamonds Are Tendered By Rio Tinto

Argyle pink diamonds

Rio Tinto displayed 64 diamonds weighing a total of 56.28 carats, all from its Argyle mine site, in the east Kimberley region of Western Australia, the mining giant said today.

The diamonds make up the 2019 Argyle Pink Diamonds Tender.

Rio Tinto highlighted six diamonds all at or under 2.01 carats:

Argyle red diamond
Argyle red diamond

Lot 1: Argyle Enigma™,1.75 carat modified radiant Fancy Red diamond

Lot 2: Argyle Amari™, 1.48 carat heart shaped Fancy Vivid Purplish Pink diamond

Lot 3: Argyle Elysian™, 1.20 carat modified cushion shaped Fancy Vivid Pink diamond

Lot 4: Argyle Verity™,1.37 carat oval shaped Fancy Vivid Purplish Pink diamond

Lot 5: Argyle Opus™, 2.01 carat round shaped Fancy Intense Pink diamond

Lot 6: Argyle Avenoir™, 1.07 carat oval shaped Fancy Red diamond

The mine, nearly four decades old, is nearing its end.

“Rio Tinto’s Argyle mine is the first and only ongoing source of rare pink diamonds in history,” said Rio Tinto Copper & Diamonds chief executive, Arnaud Soirat, in a news release.

“With the lifecycle of this extraordinary mine approaching its end, we have seen, and continue to see, unstoppable demand for these truly limited-edition diamonds and strong value appreciation.”

JCK Lab-Grown Section Shows Rising Demand

JCK lab grown diamonds

At JCK Las Vegas, lab-grown-diamond exhibitors have mushroomed nearly as much as opinions about the stones themselves. To accommodate growing market needs, organizers debuted the Lab-Grown Diamond Neighborhood at the 2018 edition of the trade fair.

“There may have been exhibitors that had lab-grown in the show in earlier years, but they weren’t grouped together in a neighborhood until 2018,” says Sarin Bachmann, event vice president for JCK and Luxury. “Lab-grown diamonds are a growing segment, and it became important for our buyers to have clear delineation of the category.”

This is why the show added a 6,400-square-foot designated section for 29 lab-grown exhibitors to display both loose stones and finished jewelry last year. It’s also why the area increased its footprint by 40% this year, with nearly double the number of participants.

‘They’re not going away’

Proponents of lab-created diamonds see opportunities for the stones to share case space with mined ones, as lab-grown constitutes another way for consumers to spend discretionary dollars on jewelry as opposed to other product categories.

Indeed, lab-created diamonds helped fourth-generation jeweler Pia Aiya’s family business stay afloat during the recession. “Lab-growns came out of need but grew into something more,” says the Aiya Designs director of operations. “They are another avenue or tool.”

Raj Vaidya, owner of six-month-old DiamSpark Lab Grown Diamonds, agrees. “They’re not going away,” says Vaidya, whose parent company has been in the mined-diamond industry for 25 years.

“The affordability of lab-growns has increased the public’s awareness of them,” he adds. “And the industry is actually buying them in large-scale quantities — like 1,000 at a time. They are not on memo.”

Price may be the biggest factor in customers’ purchasing decisions — synthetic diamonds can cost a third of what natural ones do, according to interviewees — while sustainability and transparent sourcing are close behind.

Evolv, a division of longtime manufacturer Joseph Blank, dipped its toes in the lab-grown-jewelry waters in 2016, though sales have been slow until recently. Now the business is every bit as viable as mined diamonds.

“There’s less resistance from consumers and more from the industry, though we continue to get gradual increases in requests for them,” explains CEO Douglas Blank. “Our company is 100 years old, and lab-growns are keeping me busy and our phones ringing.”

Of course, the individual purchase figures can look disappointingly low compared to natural. “We just sold a 3.50-carat lab-grown stone for $13,000 that would have been $30,000 in a mined diamond,” he relates.

Demand for more

Of all the pros and cons, the most compelling argument for selling lab-created diamonds is that consumers are buying them.

For Sehal Mody, chief operations officer at GoGreen Diamonds, the proof is in the sales. His firm — a four-year-old division of a 40-year-old natural-diamond-jewelry manufacturer — has gone from making about two sales a month 10 years ago to getting retailer requests for entire showcases full of both loose lab-grown diamonds and finished jewelry.

“Retailers are looking for bridal and fashion basics,” he reports.

The biggest impetus for sales? Lightbox. Before the De Beers lab-grown jewelry line emerged, many merchants were hesitant to embrace this product category. Now sales are heating up, as is evident from the expanding Lab-Grown Diamond Neighborhood at JCK. At press time, JCK Las Vegas was still finalizing plans for the section’s further growth in 2020. Blank has already requested a booth double the size of this year’s.

“Lightbox really opened up the market,” affirms Mody.

Fenix, another lab-grown company, used virtual reality at its JCK booth to present the gems as a product that offered consumers a choice. In a five-minute experience, retailers could see the growing and cutting processes for themselves — the latter carried out at a factory in India.

“We’re not looking to pick a fight about what’s better or not,” says brand-builder Andrea Hansen, who aided Fenix with its campaign. “But we are well-equipped for volume, from 30 points to 3 carats and more. Lab-growns could dominate the fashion space.”

Bigger as they go

That speculation paves the way for the inevitable question of what’s next for synthetics. Many are saying bigger pieces of finished jewelry, and definitely more sales — though how much more is anybody’s guess.

“The percentage of lab-grown sales may just be 2% now, but if 2% becomes 3%, then we’ve seen a 50% jump,” says Kinish Shah, owner of Splendid Lab Diamonds. A 27-year veteran of natural diamonds under Surediam, his company began working in synthetics three years ago.

Of course, proponents of both types of diamonds exist and have “diamond dreams,” according to Hiren Goti, CEO of newcomer SkyLabDiamond. He says he doesn’t understand the negative opinions about lab-grown. “I don’t know why people are so worried. You can’t stop shoppers from buying what they want. It’s their choice.”

Lightbox liaisons

Members of De Beers’ Lightbox team remained cool under questioning at JCK Las Vegas as they addressed a packed conference room about the company’s lab-grown-jewelry product. That included queries about those who might manipulate inscriptions on stones larger than 0.20 carats to deceive buyers.

“We’re not here to police the rest of the industry,” said chief merchandising officer Sally Morrison, “but we could maybe work with the International Grown Diamond Association [IGDA] to help create standards for the overall health of the sector and to not undermine consumer confidence.”

Lightbox CEO Steve Coe offered clear communication about the manufacturing process for the brand’s fashion-forward pink and blue colors, which come in basic styles like studs and pendants.

He also pointed to broader gifting opportunities like sweet-16 presents at retail prices ranging from $200 to $1,000.

In addition, the stones aren’t graded, which reinforces the fact that they’re manufactured like other mass-produced items. “There’s not one that’s better or worse than any other in the lineup,” said Coe.

Meanwhile, women of all ages and ethnicities have said they find the jewelry appealing and feel pretty wearing it, according to brand research and video testimonies. And Lightbox’s $94 million investment in a manufacturing facility in Gresham, Oregon, which is slated to become operational in early 2020, signals how important the US market is for Lightbox’s business.

This article was first published in the July 2019 issue of Rapaport Magazine.

World’s biggest diamond producer Alrosa hit by Sino-US trade war

alrosa russian miner

The US trade war with Beijing has wiped out sales targets of the world’s largest diamond producer Alrosa in China and hit purchases by the country’s tourists in the west.

“When there’s any political instability or tensions, luxury goods sales immediately react, including jewellery with diamonds,” chief executive Sergei Ivanov of the Russian diamond miner said in an interview with the Financial Times. 

“We thought our sales growth in China would go up by 2 or 3 per cent, but now the outlook is likely more pessimistic — growth rates will either be neutral or slightly negative.” 

Mr Ivanov has backed a push into China, which analysts expect to drive growth in the diamond market in the next decade along with India, as Alrosa seeks to meet demand from China’s burgeoning middle class. 

The state-owned company, which produces about half the world’s rough diamonds along with De Beers, is attempting to catch up with its rival and has raised China sales from $50m to $200m in recent years. 

But headwinds from the US-China trade war and a broader market slump are hitting the industry’s profits.

Alrosa’s revenue fell 27 per cent year-on-year to Rbs70.5bn in the first quarter of 2019. Anglo American, the owner of De Beers, blamed a 6.3 per cent decline in its most recent sales period last month on a “more challenging environment” in China. 

The industry is also facing a supply glut that has tempered demand for polished stones, which analysts at Russian investment bank VTB Capital expect to decrease by 2 per cent this year and remain poor until 2021. 

Mr Ivanov said Alrosa would continue to favour price over volume despite the struggles. “We could cut the price by 10 per cent and sell everything we have, but we won’t help the market by doing that because it’d lead to prices on diamonds in the midstream falling.”

He predicted that Alrosa’s sales, which fell 38 per cent year-on-year to $988m in the first quarter this year and had continued to slump since, would continue to remain “much worse” than 2018 before normalising in the fourth quarter this year. “In the end, Christmas in the US and Chinese new year in February aren’t going anywhere. There’ll be good demand and the market will normalise,” he said. 

The slump has not deterred Alrosa from seeking new avenues for production, with its existing reserves, mostly located in Yakutia in northeastern Russia, set to run out by 2047. Mr Ivanov said new ones will probably be discovered in the near future. 

Half a world away, Alrosa opened operations in Zimbabwe this year and is increasing its presence in Angola, where it has a stake in Catoca, the world’s fourth-largest mine, and developing the $1.5bn Luaxe kimberlite project, which is expected to be even larger. 

The company has ramped up its African operations even as other foreign nationals have stopped operating or wound down their presences in Zimbabwe and Angola. 

The move comes as Russia has raised its presence in Africa through further investment in raw materials from oil to bauxite, arms sales and security advice.

Alrosa signed its deal to enter Zimbabwe after president Emmerson Mnangagwa visited Moscow this year, ahead of a larger Russia-Africa summit scheduled in Sochi on the Black Sea for October. 

But Mr Ivanov said Alrosa’s interest in the continent was entirely geological. “Reserves in other African countries have all been researched and the chance of finding a large deposit there is close to zero,” Mr Ivanov said. 

Alrosa has also overcome suspicion of Russia to grow its operations in the US, where it has reopened a New York office, increased rough diamond sales, and plans to begin selling polished diamonds.

Mr Ivanov said that 70 per cent of investors in its recent $500m bond issue were western-based, while about half the company’s free float was owned by US entities. 

“Investors don’t bring up sanctions at all any more,” he added. 

Source: ft.com

Firestone Diamonds recovers largest fancy yellow diamond to date

Firestone Diamonds 54 Carat Fancy Yellow Rough Diamond

Firestone Diamonds has recovered a 54 carat intense fancy yellow, sawable diamond from its Liqhobong mine in Lesotho.

“The Liqhobong mine has become known for its fancy yellow stones but this one is the largest we’ve recovered so far and is therefore quite special,” says Firestone Diamonds CEO Paul Bosma.

Although certain segments of the diamond market are currently struggling, the demand for unique natural stones remains positive,” he says.

The 54 carat diamond will go on sale at the next tender scheduled to take place during September 2019.

The recovery of its latest fancy yellow diamond follows the recovery of a 72 carat diamond which was recovered together with a 22 carat makeable white stone, followed by an 11 carat fancy light-pink stone in April.

Source: miningreview

Russia digs for diamonds in permafrost n Yakutia

Alrosa diamonds

Diamonds are forever, and so is the permanently frozen ground of Yakutia in north eastern Siberia, home to huge diamond deposits that ensure Russia’s supremacy in world production of the luxury stone.

In the city of Mirny, the sun shines almost continuously during the region’s white night season in early July, with temperatures exceeding 30 degrees Celsius.

But the summer does not last long. Yakutia is known for having the coldest winters on the planet, which drag on for nine dark months.

This region—rich in oil, gas and precious metals—is also home to eleven out of twelve mines belonging to Russia’s Alrosa group, the world’s largest producer of rough carats.

The majority state- and local government-owned company employs most of Mirny’s 35,000 inhabitants and contributes around 40 percent of the wider region’s budget in taxes.

Alrosa, which has been criticised by some locals for alleged environmental damage including polluting water supplies, has a reputation for secrecy but is now making efforts to demonstrate some of its work.

In Mirny, a gaping hole of massive depths—the abandoned mine “Mir”—stretches out into the city. It is more than a kilometre in diameter and 525 meters deep, or nearly two Eiffel towers placed end to end.

Oleg Popov, the director of Mirny’s diamond sorting centre, shows off a billiard table covered in shiny stones.

Nearly two Eiffel Towers deep

Alrosa mine
Alrosa mine

“There are 14,000 carats worth around $9 million on this table,” he said.

Explosions in -55 centigrade

“Each stone must be sorted by size,” said Irina Senyukova, leaning on stones in the nearby sorting room.

To reach the next diamond deposits themselves, visitors board a 20-seater Antonov plane and head north, across the taiga, to Nakyn, where Alrosa operates two open pit mines and is planning for a third out in the wilderness.

The most productive mine, Botuobinskaya, is currently only 130 metres deep, but the company plans to dig down 580 metres.

The operating mines will be exploitable until 2041, the company hopes.

Inside the mines, the temperature drops to -55 degrees Celsius in winter, which requires an increased use of explosives to extract diamonds.

“The climate has an impact on our machines, but they are adapted to the extreme conditions,” said Mikhail Dyachenko, deputy chief of the mine, standing on the edge of the precipice and wearing a safety helmet.

Alrosa has become more willing to show off its work
“Man will adapt to anything, most of the miners are natives of the region. They know this climate well,” he added.

Trucks go down the mine slowly, spiralling down thin dirt roads dug into the rock. The descent can last up to an hour.

In each ton of ground, there are around 6.2 carats of diamonds. After sorting, the rough diamonds are transported on secret flights to be sold around the world.

Some are flown to polishing centres in Moscow and Smolensk, a city in Western Russia.

The process takes place under heavy security, which was tightened further since a small gang of employees stole three million dollars worth of diamonds last month.

The diamonds were later recovered.

Drinking water

Mirny was founded in the mid-1950s after the discovery of the first diamonds. Its first mine functioned until 2001, and it was closed down in 2017 after a flood killed eight people.

It’s a man’s world
Last year several dams built by the company broke and villages around Yakutia’s Vilyuy River said they could no longer use it as a water source.

Russia’s environment watchdog estimated the damage to the Vilyuy basin at 22.1 billion rubles (over $330 million, 290 million euros) but said Alrosa would not be held accountable as the accident was caused by a natural disaster.

Separately, the company said in April it would provide 833 million rubles ($13 million, 11.5 million euros) over five years for a programme to improve the quality of drinking water in the river area.

Miners are exclusively men, predominantly from the region but also from the rest of Russia. Planes or helicopters carry the miners to the sites, where they work eleven hours a day for two weeks, then have a two week break.

“Local, indigenous communities lived here, and still live nearby—they are reindeer herders, but some of them go to the city to look for work,” said Dmitry Averyanov, who drives trucks that survey the mines.

As for the future, Alrosa is looking for ways to re-open Mirny’s mine. Works are not due to start before 2024 and their cost is estimated at 73 million rubles.

Source: phys.org

Diamonds from Marange excluded by Blue Nile

Top US jewelry etailer Blue Nile has blacklisted Zimbabwean diamonds over reports of human rights abuses in Manicaland’s Marange district.

On its website Blue Nile says: “Blue Nile is committed to ensuring that the highest ethical standards are observed when sourcing our diamonds and jewelry. Because of the reported human rights abuses in Zimbabwe’s Marange diamond district, Blue Nile will not purchase or offer diamonds from that area. As a responsible member of the diamond and jewelry industry, we are working with our suppliers to ensure our consumers receive only the finest goods procured from ethical sources.”

It is not clear how long ago this statement was posted opn the Blue Nile website.

In a report on the NewZimbabwe.com website Blue Nile was quoted as stating that “it was doing this in adherence to global diamond watcher the Kimberley Process. If one of our suppliers was ever found to be in violation of that process, we would immediately sever that relationship,” the diamond trader was quoted.

The NGO, the Center for Natural Resource Governance (CNRG) welcomed Blue Nile’s decision. CNRG executive director Farai Maguwu called on Zimbabwean authorities and in particular Zimbabwe Consolidated Diamond Company owned by the State.

“We endorse the decision by Blue Nile. It is the right thing to do. The use of torture and murder as punishment to artisanal miners in Marange has been widely reported resulting in consumers raising a red flag,” Muguwu told NewZimbabwe.com in an interview.

Maguwu claimed that in 2018 alone, more than 40 artisanal miners were killed in cold blood by ZCDC guards. Since the discovery of diamonds in Marange in June 2006, the police and army have been accused of using brute force and live ammunition to deal with illegal diamond miners.

Source: idexonline

Israel Bourse Unveils ‘Real Diamonds’ Campaign

The Israel Diamond Exchange (IDE) has launched an international awareness campaign, highlighting the unique features of natural diamonds.

The bourse will promote its “I love natural diamonds” campaign — which it says is the first international initiative by a global diamond center to differentiate real diamonds from synthetics — over social media. It will feature several short videos, released over a number of weeks, starting with a piece entitled “Fake Times. Real Diamonds.”

The project was first announced at the World Federation of Diamond Bourses (WFDB) executive committee meeting, held in Israel last week.

“At a time when counterfeit products and fake reproductions flood almost every market, few commodities remain as rare and exceptional as natural diamonds,” said IDE president Yoram Dvash, who hosted the WFDB meeting.

“In this campaign we want to highlight the exceptional qualities of natural diamonds, as symbols of love and timelessness over the generations and throughout the world,” he added.

View the first video here:

Source: Diamonds.net

Tracking conflict diamonds with lasers

opsydia

In a lab in the California city of Carlsbad, between Los Angeles and San Diego, a suspicious diamond recently arrived.

On the outer edge – what jewellers call the girdle – was a tiny inscription, of a bona fide diamond security code issued in 2015.

But the font was a different one than the Gemological Institute of America, or GIA, uses.

And whereas the original diamond was natural, this diamond was grown in a lab.

“Rarely do we encounter the type of blatant fraud described here,” say Christopher Breeding and Troy Ardon from the Carlsbad lab.

Carlsbad is the headquarters of the GIA, a non-profit organisation that evaluates and certifies diamonds for quality.

It assigns diamonds report numbers, which a laser can then carve on to the diamond. But this method has its problems.

“It is easy to be removed, just polish it off,” says Andrew Rimmer, chief executive of Opsydia, an Oxford University spin-out. “Also it’s easy to apply someone else’s serial number.”

So Mr Rimmer has been working on lasers that can write security codes beneath the surface of diamonds instead.

And codes inside diamonds are forever.

Diamonds are a huge business, with 133 million carats (about 27 tonnes) of rough diamonds worth about $15bn-$16bn (£12bn-£13bn) mined each year, according to Boston consulting firm Bain & Company.

About half originate in Africa, where in some countries, like South Africa and Botswana, mining is well regulated.

But Zimbabwe, under President Mugabe, used diamond exports to fund its repressive secret police.

And last year, three Russian journalists were killed while investigating the Kremlin’s links to militias in the Central African Republic who fund their fighting with diamond sales.

Synthetic diamonds are also an issue for the industry – adverts have appeared on China’s Alibaba e-commerce site with documentation stating they are natural.

Such concerns have taken the shine off diamond sales in 2019.

In response, many people in the diamond industry have been working on using the blockchain – a tamper-proof distributed ledger – to store information on a gem’s history, from the mine to the jewellery shop.

Examples are Australia’s Everledger and De Beers’ Tracr. Russian diamond mining giant Alrosa announced last autumn it will join the Tracr platform.

So it will be possible to “provide clients with a full history of a diamond, starting from the moment it was mined”, says Alrosa’s Eugeniya Kozenko.

“We can create lots of apps along the way” that draw on the blockchain, says Jim Duffy, chief executive of Tracr.

The hardest bit has involved creating robots for producers to use to scan diamonds at scale, and machine-learning algorithms to automate identifying the diamonds, Mr Duffy says.

De Beers also has launched a GemFair progamme to log diamonds produced by small-scale African miners, says Michillay Brown, partner relations specialist at Tracr.

The programme started with “artisanal and small-scale diamond miners in Sierra Leone”, and helps them record GPS locations for each diamond they find, which they then place in a QR-coded tamper-proof bag, she says.

In another sign that the sector is warming to blockchain tech, Lucara Diamond, a Canadian mining company, bought a blockchain business called Clara last year.

Their diamonds will “get scanned shortly after they’re recovered from the mine, and put on blockchain,” says John Armstrong, Lucara’s vice president for technical services.

Putting a full account of a diamond’s provenance on to a blockchain offers an “extremely secure way of storing detailed information”, says Opsydia’s Mr Rimmer. “But you still need to make sure the stone is the one it purports to be.”

So how can you write a permanent, tamper-proof security code inside a diamond?

With difficulty would seem to be the answer. Diamond has a high refractive index, meaning it bends light a lot.

“So whichever direction you want a laser to go, usually it goes somewhere else,” Mr Rimmer explains.

Engineers at Oxford were doing research around getting the highest possible resolution from telescopes, and compensating for fluctuations in the atmosphere.

And this turns out to produce answers that also apply to focusing lasers on targets that are very small.

So marks as small as one-thousandth of a millimetre can be made 0.15mm below a diamond’s surface in a trillionth of a second. The extremely high speed keeps the laser burst from heating up the stone.

Marks this small can’t be seen even with a jeweller’s magnifying glass, or loupe. You need a powerful microscope.

And since they’re so tiny, they don’t have to be on the outside girdle, which is covered up when the diamond is placed in jewellery, but can be in the top surface or around the crown where they can always be read.

Opsydia has just sold it first machines to De Beers.

But once you can write things inside diamonds, “you can write electrical circuits; it takes you into science instrumentation and ultimately quantum computing,” says Mr Rimmer.

Maintaining trust in the authenticity and provenance of diamonds is essential to keep an increasingly sceptical public buying.

Ajay Anand, founder of New York-based Rare Carat, built a platform that pulls in data on diamonds for sale from both big and small retailers.

He realised that “diamonds are the perfect data set for machine learning and price prediction”.

There are about 30 or 40 variables associated with any diamond, he says.

“So we put together the largest data set probably in existence – our algorithms can predict the price of a diamond pretty accurately,” he says.

The platform tells customers how good a bargain it thinks a particular diamond is.

And “we’re empowering dozens of smaller online and local retailers, with lower overhead costs,” but who might struggle to get customers through the door, he says.

The industry will be hoping that these new marking, tracing and buying technologies will ensure diamonds never lose their lustre.

Source: bbc.com