What Causes Diamonds To Erupt? Scientists Crack the Code

New findings hold the potential to spark future diamond discoveries.
An international team of scientists, led by the University of Southampton, has found that the breakup of tectonic plates is the main driving force behind the generation and eruption of diamond-rich magmas from deep inside the Earth.

This insight could significantly influence the trajectory of the diamond exploration industry, guiding efforts to locations where diamonds are most probable.

Diamonds, which form under great pressures at depth, are hundreds of millions, or even billions, of years old. They are typically found in a type of volcanic rock known as kimberlite. Kimberlites are found in the oldest, thickest, strongest parts of continents – most notably in South Africa, home to the diamond rush of the late 19th century. But how and why they got to Earth’s surface has, until now, remained a mystery.

The new research examined the effects of global tectonic forces on these volcanic eruptions spanning the last billion years. The findings have been published in the journal Nature.

Southampton researchers collaborated with colleagues from the University of Birmingham, the University of Potsdam, the GFZ German Research Centre for Geosciences, Portland State University, Macquarie University, the University of Leeds, the University of Florence, and Queen’s University, Ontario.

Tom Gernon, Professor of Earth Science and Principal Research Fellow at the University of Southampton, and lead author of the study, said: “The pattern of diamond eruptions is cyclical, mimicking the rhythm of the supercontinents, which assemble and break up in a repeated pattern over time. But previously we didn’t know what process causes diamonds to suddenly erupt, having spent millions – or billions – of years stashed away 150 kilometers beneath the Earth’s surface.”

To address this question, the team used statistical analysis, including machine learning, to forensically examine the link between continental breakup and kimberlite volcanism. The results showed the eruptions of most kimberlite volcanoes occurred 20 to 30 million years after the tectonic breakup of Earth’s continents.

Dr. Thea Hincks, Senior Research Fellow at the University of Southampton, said: “Using geospatial analysis, we found that kimberlite eruptions tend to gradually migrate from the continental edges to the interiors over time at rates that are consistent across the continents.”

Geological processes
This discovery prompted the scientists to explore what geological process could drive this pattern. They found that the Earth’s mantle – the convecting layer between the crust and core – is disrupted by rifting (or stretching) of the crust, even thousands of kilometers away.

Dr Stephen Jones, Associate Professor in Earth Systems at the University of Birmingham, and study co-author said: “We found that a domino effect can explain how continental breakup leads to the formation of kimberlite magma. During rifting, a small patch of the continental root is disrupted and sinks into the mantle below, triggering a chain of similar flow patterns beneath the nearby continent.”

Dr. Sascha Brune, Head of the Geodynamic Modelling Section at GFZ Potsdam, and a co-author on the study, ran simulations to investigate how this process unfolds. He said: “While sweeping along the continental root, these disruptive flows remove a substantial amount of rock, tens of kilometers thick, from the base of the continental plate.”

The typical migration rates estimated in models matched what the scientists observed from kimberlite records.

“Remarkably, this process brings together the necessary ingredients in the right amounts to trigger just enough melting to generate kimberlites,” added Dr Gernon.

The team’s research could be used to identify the possible locations and timings of past volcanic eruptions tied to this process, offering valuable insights that could enable the discovery of diamond deposits in the future.

Professor Gernon, who was recently awarded a major philanthropic grant from the WoodNext Foundation to study the factors contributing to global cooling over time, said the study also sheds light on how processes deep within the Earth control those at the surface: “Breakup not only reorganizes the mantle, but may also profoundly impact Earth’s surface environment and climate, so diamonds might be just a part of the story.”

Reference: “Rift-induced disruption of cratonic keels drives kimberlite volcanism” by Thomas M. Gernon, Stephen M. Jones, Sascha Brune, Thea K. Hincks, Martin R. Palmer, John C. Schumacher, Rebecca M. Primiceri, Matthew Field, William L. Griffin, Suzanne Y. O’Reilly, Derek Keir, Christopher J. Spencer, Andrew S. Merdith and Anne Glerum, 26 July 2023, Nature.

Sarine Profit Nosedives as Global Slump Hits Sales

Sarine Technologies saw a drop in revenue and a sharp slide in earnings for the first half of 2023 as demand for the company’s manufacturing equipment slowed.

Sales declined 24% year on year to $23.7 million in the six months that ended June 30, the Israel-based producer of technology for the diamond industry reported Sunday. Profit plummeted 85% to $953,000, as lower sales and a weaker product mix reduced margins.

High inflation and rising interest rates dented consumer demand, as did a sluggish post-pandemic recovery in China, Sarine explained.

“With a decline in the sale of polished diamonds, and the subsequent reduction of rough diamonds in the pipeline, the midstream effected less manufacturing activities,” the company said. “Appropriately, our traditional business of selling capital equipment and, to a much lesser extent our inclusion scanning services, were affected.”

Recurring revenues — from fees clients pay when they use Sarine systems, such as its Galaxy rough scanners — decreased around 9%. Outright sales of capital equipment — customers’ one-off purchases of machines — fell 40%. “Teething” problems with Sarine’s Meteorite Plus, a scanning machine for small rough stones that launched late last year, also impacted the top line. The company has rectified these issues, it said.

Revenues from services to the retail and wholesale segments, which Sarine calls trade revenues, offset the declines with a 12% rise. This mainly resulted from the acquisition of New York-based Gem Certification & Assurance Lab (GCAL) earlier this year, Sarine said.

Overall prospects for the coming months remain gloomy, the company added.

“As interest rates and inflation are likely to stay elevated and the possibility of a recession in the US is still realistic, overall industry conditions are likely to remain challenging for the rest of [2023],” it said. “Our traditional businesses of selling capital equipment and, to a much lesser extent, our Galaxy scanning services, will remain affected under subdued market conditions.”

Source: Diamonds.net

Alrosa reports strong diamond sales despite sanctions

Mirny Sakha Russia

Sanctions-hit Alrosa kept diamond sales in the first half of 2023 at the year-ago levels, the Russian company said on Monday as it reported financial results for the first time since Moscow’s 2022 invasion of Ukraine.

Efforts to reduce Russia’s revenue from diamond exports and to build on Washington’s existing sanctions on Alrosa, the world’s largest producer, have been subject to discussions among leaders of the Group of Seven (G7) nations.

Alrosa’s first-half revenue totalled 188.2 billion roubles ($1.9 billion), up 0.2% from January-June 2022, and up 3.5% from the same period of 2021. Net profit fell 35% year-on-year to 55.6 billion roubles.

“As of mid-2023, opportunistic diamond midstream participants have developed trade mechanisms to circumvent the impact of the restrictions, especially as it pertains to the trading of Russian diamonds in US dollars,” diamond analyst Paul Zimnisky said.

In April 2022, the United States cut Alrosa off from its banking system and banned direct sales to the lucrative US market. The European Union bought 1.4 billion euros ($1.5 billion) worth of Russian diamonds in 2022 as it has neither banned Russian diamond imports nor Alrosa.

As of now, once the Russian diamonds are cut and polished outside of Russia, they are considered originating from the nation that “transformed” them, Zimnisky added.

While some G7 countries have called for Russian diamond sanctions, others, including Belgium, have been concerned that they would divert trading to other centres and away from Antwerp, the world’s No. 1 one hub.

The G7 said in May it would continue working to restrict Russian diamonds trade, including through tracing technologies.

Zimnisky expects G7 to prepare a plan which would impact the global flow of Russian diamonds by late 2023 or early 2024.

“The diamond industry has had time to digest all of this, so while I do not expect a pending supply shock, I do see the way that the diamond supply chain works to be fundamentally transformed in the medium term,” he said.

Source: mining.com

Slower Growth for Fancy Colour Diamond Prices

Fancy colour diamonds saw slower growth in the last three months, with an increase of just 0.5 per cent in the FCRF Index, which tracks prices across all colours, sizes and intensities.

That compares with a 1.3 per cent rise during the first quarter of 2023, as reported by the New York-based Fancy Colour Research Foundation, with the biggest increases among yellows.

During Q2, yellows diamonds again drove the increase, with a rise of 6.5 per cent across all categories. Pinks were up 0.2 per cent and blues rose by 0.6 per cent.

The FCRF noted that fancy colour diamonds had again out-performed white diamonds, which saw prices fall 3.5 per cent during the quarter.

Board member Eden Rachminov said: “The first six months of 2023 were intriguing. We experienced notable spikes in certain sub-categories within the yellow category, particularly in the intense and vivid grades with a high inner-grade.

“Meanwhile, the blue and pink categories remained stable. If the world economy continues to maintain its positive momentum, we can anticipate a robust price behavior after the summer.”

The FCRF tracks pricing data for fancy colour diamonds in Hong Kong, New York, Geneva and Tel Aviv.

Source: IDEX

US Blocks $26m of India Diamond Payments to Russia

The US has reportedly blocked $26m of payments made by Indian businesses attempting to buy rough diamonds from Russia.

OFAC, the Office of Foreign Assets Control, is said to have instructed banks in recent months to halt the transfer of funds, mostly from UAE subsidiaries of Indian companies.

Neither India nor the UAE has sanctioned rough diamonds from Russia. The US has, although its ban does not apply to diamonds cut and polished outside Russia.

Leaders of the G7 nations concluded their summit in Hiroshima, Japan, in May without the clear mandate to fully sanction Russian diamonds that many had expected.

The US is believed to have halted the bank transfers over suspicions they were being made to sanctioned entities in Russia, but industry representatives in India insist otherwise.

The Gem & Jewellery Export Promotion Council (GJEPC) is lobbying the Indian Ministry of Commerce and the Indian embassy in the UAE to resolve matters.

Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), told Economic Times: “We are trying to explain to OFAC that the payments were made to non-sanctioned entities and even to some Russian entities well before the sanctions came into place. There is very little direct import of diamonds from Russia.”

The $26m of blocked purchases represent only a small proportion of the average $1.3bn of rough a month that India has been importing from all sources (GJEPC figures for April to June).

Source: IDEX

How accurate are jewellery valuations?

The accuracy of jewellery valuations can vary depending on several factors. Here are some key points to consider:

  1. Appraiser’s expertise: The accuracy of a jewellery valuation depends on the competence and experience of the appraiser. A certified gemologist or a professional jewellery appraiser with relevant credentials is more likely to provide a precise and reliable valuation.
  2. Purpose of the valuation: The purpose of the valuation matters. If the valuation is for insurance coverage, it may be higher to ensure full replacement in case of loss or theft. If it’s for resale, the value may be lower as it accounts for market conditions and potential profit margins for a buyer.
  3. Quality of the jewellery: The quality of the jewellery, including the materials, gemstones, craftsmanship, and overall design, plays a significant role in its valuation. High-quality materials and precious gemstones will generally have higher values.
  4. Market conditions: The fluctuating prices of precious metals and gemstones can impact the accuracy of a jewellery valuation. Market conditions change over time, so a valuation today might not hold the same value in the future.
  5. Certification and documentation: Having proper documentation and certifications for gemstones and metals enhances the accuracy of the valuation. This information helps appraisers make more precise assessments.
  6. Appraisal method: There are different methods for valuing jewellery, such as comparison with similar pieces, the cost to replace, or the intrinsic value of materials. Each method has its advantages and limitations.
  7. Local market differences: Valuations can vary across different regions due to variations in consumer preferences and market demands.

It’s important to note that a jewellery appraisal is an expert’s opinion based on their evaluation of the item at a particular point in time. The value assigned to the jewellery may change over time due to various factors, including market fluctuations, changes in demand, or updates in gemstone grading techniques.

AcuVal Adds the consistency of repeatable outcome, this give you a credible and trusted valuation.

555 carat Diamond Bought with Illicit Funds, SEC Says

Cryptocurrency mogul Richard Heart allegedly used proceeds from the sale of unregistered securities to buy the 555-carat Enigma diamond, according to the US Securities and Exchange Commission (SEC).

The SEC has charged Heart — who was born Richard Schueler and who created the Hex cryptocurrency token — with selling the securities to raise more than $1 billion from investors. It alleges that Heart and his PulseChain company committed fraud by misappropriating at least $12 million of those funds to purchase luxury items, including sports cars, watches and the diamond.

“Heart called on investors to buy crypto asset securities in offerings that he failed to register,” Eric Werner, director of the SEC’s Fort Worth regional office, said in a statement Monday. “He then defrauded those investors by spending some of their crypto assets on exorbitant luxury goods.”

The Enigma, which is believed to have come from outer space, is the largest faceted diamond of any kind to appear at auction. Heart purchased it from Sotheby’s at a one-off sale in February 2022 for GBP 3.2 million ($4.3 million). At the time, Heart tweeted that he had bought the stone and would rename it the Hex.com diamond as a nod to his cryptocurrency platform, calling it a “match made in heaven.” Hex has a “5555 day club” comprising people who hold 5,555-day Hex stakes — the longest possible stake in the electronic token.

Sotheby’s, which accepted payment for the Enigma, was not mentioned as a defendant in the SEC’s lawsuit.

“Sotheby’s does not comment on individual transactions, but we can confirm we have established due diligence procedures, tailored and updated to take account of our requirements to conduct business in compliance with applicable laws and regulations,” the auction house stated.

Source: Diamonds.net

Anglo announces latest De Beers’ rough diamond sales value

Anglo American plc announces the value of rough diamond sales (Global Sightholder Sales and Auctions) for De Beers’ sixth sales cycle of 2023, amounting to US$410 million.

The provisional rough diamond sales figure quoted for Cycle 6 represents the expected sales value for the period 10 and 25 July and remains subject to adjustment based on final completed sales.

Al Cook, CEO of De Beers, said: “In line with seasonal trends, rough diamond sales continued at a lower level during the sixth sales cycle of the year. Participants in the diamond industry’s midstream sector continue to take a cautious approach to purchases in light of ongoing macroeconomic challenges.”

Source: globalminingreview

US Jewelry Trade Shrinking at Faster Rate

The number of active US jewelry companies continued to decline in the second quarter, according to the latest data from the Jewelers Board of Trade (JBT).

Some 174 businesses shuttered during the three months ending June 30, an increase of 8% versus 161 in the same period a year earlier, the JBT said last week. In total, there were 23,424 companies active in the US industry, a drop of 2.4% compared with the second quarter of 2022 and 107 fewer than the previous quarter.

Of the businesses that discontinued operations, 22 shut due to mergers or takeovers, while 152 closed for other reasons. None went bankrupt, the JBT noted. Meanwhile, the number of new businesses slid to 116, compared to 136 the year before.

Retailers still constituted the bulk of the sector, at 17,760, down 2.5% year on year. The wholesale trade slipped 1.5% to 3,394, while the manufacturing sector contracted 2.7% to 2,270 firms.

The JBT, which provides credit information for the trade, downgraded the credit ratings of 873 companies across the US and Canada during the quarter, versus 831 a year ago. Meanwhile, it raised the scores of 823 businesses, compared to 752 from April to June of 2022.

Source: Diamonds.net

The gold, diamond, and ruby ring that Tupac Shakur wore days before his death sold at auction for over $1 million

Tupac Shakur’s custom crown-shaped ring, which he wore shortly before he died, sold for nearly $1.02 million Tuesday, becoming the most valuable hip-hop artifact ever sold at auction.

Sotheby’s in New York sold the ring as part of a large sale of hip-hop artifacts, including autographed letters from Shakur and a demo tape for his single “Trapped,” per a press release from the auction house. Prior to auction, the ring was estimated to sell between $200,000 to $300,000.

The lots, meant to commemorate the 50th anniversary of the musical genre, also included memorabilia from many other memorable names — Mos Def, De La Soul, and Wu-Tang Clan, to name a few.

The 14-Karat gold ring, encrusted with diamonds and rubies, features an inscription on the side that reads “Pac & Dada 1996” — a reference to his engagement to actress Kidada Jones.

According to the press release, Yaasmyn Fula, the artist’s godmother, offered the ring for auction, telling Sotheby’s it was custom designed by Pac and assembled by jewelers in New York City following his months behind bars and his newly signed deal with Death Row Records.

“Reflecting his recent affinity for Niccolo Machiavelli’s political manifesto ‘The Prince’ (Tupac would start going by “Makaveli” after reading The Prince while incarcerated), Tupac modeled his design after the crowns of the medieval kings of Europe in ‘an act of self-coronation,’ according to Fula, a celebration of survival through a tumultuous year in an oft tumultuous life,” per the press release.

The ring also appeared on his finger during the September 4, 1996, MTV Video Music Awards — his last public appearance before his tragic murder three days later in Las Vegas.

Source: insider.com