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Industrial Grade Diamond

Industrial Grade Diamond: Definition, Characteristics, and Uses
An Industrial Grade Diamond refers to a diamond that does not meet the standards required for use as a gemstone, due to its heavily included nature, lack of transparency, and absence of the brilliance and life that are expected of gem-quality diamonds. These diamonds typically have lower visual appeal and do not exhibit the exceptional clarity and sparkle that higher-quality diamonds are known for. While they may not be suitable for use in jewellery, industrial grade diamonds are highly valued for their functional properties in various applications, particularly in industries requiring extreme hardness.

Characteristics of Industrial Grade Diamonds
Heavily Included: Industrial grade diamonds usually contain significant inclusions (internal imperfections) that can severely impact their clarity. These inclusions can range from small cracks and air bubbles to larger, more visible internal flaws that detract from the diamond’s transparency. This makes them unsuitable for gemstone grading, where clarity is a key factor.

Lack of Transparency and Brilliance: Unlike gem-quality diamonds, which are prized for their ability to reflect light and exhibit brilliance, industrial diamonds lack the clarity and transparency necessary to sparkle. They often appear cloudy, opaque, or milky, with an overall dullness that prevents them from being used as gemstones in jewellery.

Colour Variations: Industrial diamonds can vary in colour, ranging from colourless to various shades of yellow, brown, or even green. However, their colour is typically not considered a positive feature, as it does not contribute to the visual appeal of the diamond. In the diamond trade, colourless diamonds or those with minimal colour are preferred for gemstones, whereas industrial diamonds can have more pronounced hues that make them unsuitable for jewellery.

Size and Shape: Industrial diamonds can come in a wide range of sizes, from small particles to large, rough stones. However, these diamonds are generally not polished or cut into the fine shapes typically seen in jewellery-grade diamonds. Instead, they are often left in their natural rough form to be used in industrial applications.

Industrial Grade Diamonds in Jewellery
Although industrial diamonds are primarily used for non-gemstone purposes, they are sometimes used in jewellery in their rough diamond form, particularly in unique or unconventional designs. These diamonds may be set in jewellery where their inclusions and lack of brilliance are intentionally showcased for aesthetic purposes. For example, some designers create raw diamond or rough diamond jewellery where the natural, unpolished appearance is valued for its organic, earthy charm.

However, this is far less common than using diamonds that are cut and polished to gemstone standards. In most cases, the diamonds used for fine jewellery are of gem quality, while industrial diamonds are kept for their functional uses.

Uses of Industrial Grade Diamonds
Industrial grade diamonds are highly valued in industries and applications that require materials with the exceptional hardness and abrasive properties of diamonds, without the need for their aesthetic qualities. These diamonds are not suitable for decorative purposes but have significant practical applications in a variety of fields. Here are some of the key uses of industrial grade diamonds:

Abrasives: Diamonds are one of the hardest known materials on Earth, making them ideal for use as abrasives. Industrial diamonds are used to make grinding wheels, polishing compounds, and other abrasive tools that are required for heavy-duty tasks. Their hardness allows them to grind and cut through other tough materials like metals, glass, and ceramics.

Cutting Tools: Industrial diamonds are often used in cutting tools for mining, drilling, and construction. Diamonds’ ability to cut through hard substances makes them indispensable for tools used in industries like oil and gas, mining, and quarrying. Diamond-tipped drill bits, saw blades, and other tools are commonly made using industrial-grade diamonds.

Drills: Diamond drills are one of the most significant uses of industrial diamonds. These drills are used to bore through hard materials, such as rock, concrete, or metal, and are essential in sectors like construction, mining, and geological exploration. The diamonds used in drill bits ensure that the tools can withstand extreme wear and tear, providing greater durability and performance.

Lasers: Diamonds are also used in laser technology, particularly in laser optics and cutting lasers. Industrial diamonds are employed in certain laser systems where their exceptional properties, such as high thermal conductivity, make them useful for focusing and guiding laser beams in applications like micromachining and precision cutting.

Polishing: Diamonds are frequently used in polishing applications, particularly for materials that need a high level of finish. Industrial-grade diamonds are used to polish metal, glass, and ceramics, providing a smooth and shiny surface. Diamond powder is commonly used in polishing wheels and pastes to achieve the desired smoothness.

Heat Sinks: Due to their excellent thermal conductivity, industrial diamonds are used in the production of heat sinks for high-performance electronics. Heat sinks help dissipate heat from sensitive equipment, and the ability of industrial diamonds to conduct heat efficiently makes them ideal for this purpose.

Synthesis of Other Diamonds: Industrial diamonds can be used in the synthesis of other diamonds. For example, diamonds used in high-pressure, high-temperature (HPHT) processes to create synthetic diamonds are often of industrial quality. These synthetic diamonds may be used in further industrial applications or, in some cases, be polished and used as gemstones.

Gem-Quality vs. Industrial-Grade Diamonds
Approximately 20% of mined diamonds are of gem quality, meaning that only a small portion of diamonds extracted from the Earth are suitable for use in fine jewellery. The majority of diamonds, however, fall into the category of industrial-grade diamonds and are put to practical use in various industries.

Gem-quality diamonds are carefully sorted, cut, and polished to enhance their brilliance and clarity for use in jewellery. In contrast, industrial diamonds are usually left unpolished and are used for their exceptional hardness and durability rather than their beauty.

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International Diamond Council

International Diamond Council

International Diamond Council (IDC): Definition, Role, and Purpose
The International Diamond Council (IDC) is a global organisation that was established to create and maintain standardised rules and guidelines for diamond grading, nomenclature, and trade practices. Founded jointly by the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA), the IDC plays a crucial role in ensuring uniformity and consistency in the diamond industry across the globe. It seeks to maintain the integrity, transparency, and trust of the diamond trade, facilitating smoother transactions and a more efficient market.

Founding and Establishment
The IDC was created as a collaborative effort between the WFDB and the IDMA in response to the need for a unified system that could establish and govern internationally accepted standards for grading and naming diamonds. The World Federation of Diamond Bourses, founded in 1947, represents diamond exchanges and bourses (markets for buying and selling diamonds) around the world. The IDMA, established in 1946, represents the manufacturers of diamonds, both natural and synthetic, across different countries.

Given the increasing complexity and scale of the global diamond trade, these two organisations recognised the need for a cohesive set of rules and guidelines to foster fair practices and ensure diamonds were graded consistently, regardless of the country in which they were traded.

Primary Objectives and Functions
The International Diamond Council serves several key functions within the diamond industry. Some of its main objectives include:

Establishing Standard Diamond Grading Criteria: One of the IDC’s most important roles is to establish globally recognised and accepted rules for diamond grading. The council provides a set of grading standards that help determine the value of a diamond based on the key 4 Cs—carat weight, cut, colour, and clarity. These grading criteria ensure that diamonds are evaluated in a consistent manner, irrespective of where they are bought or sold.

Maintaining Nomenclature Standards: The IDC ensures that the terminology used in the diamond industry is standardised and recognised worldwide. This includes establishing standardised nomenclature for different diamond characteristics, cuts, and classifications. By creating a common language, the IDC helps prevent confusion and misunderstandings in the global diamond market.

Facilitating Trade and Promoting Transparency: The IDC fosters trade relations among diamond dealers, manufacturers, and jewellers by promoting ethical practices and encouraging fair trade. It provides guidelines that ensure transparency and clarity in transactions, enabling businesses to operate with confidence in both established and emerging markets. This is particularly important for preventing fraudulent or misleading practices that could damage the reputation of the industry.

Regulating Diamond Certification: The IDC plays a key role in regulating and promoting the use of diamond grading certificates issued by recognised laboratories. These certificates offer an independent and unbiased evaluation of a diamond’s quality and authenticity, ensuring that both buyers and sellers have access to accurate and reliable information.

Encouraging Industry Cooperation: The IDC serves as a platform for cooperation among different stakeholders in the diamond industry, including producers, traders, and retailers. By bringing together the WFDB and IDMA, the council facilitates an open dialogue and collective decision-making that helps shape the future of the diamond market.

Global Impact and Significance
The work of the International Diamond Council has far-reaching implications for the diamond industry on a global scale. Some of the key areas where the IDC has made an impact include:

Global Standardisation: Through the IDC’s efforts, diamonds are graded and described according to a uniform system, making it easier for buyers and sellers to compare diamonds from different regions of the world. This reduces the potential for disputes over the quality and value of diamonds, increasing the overall trust in the industry.

Supporting Diamond Bourses: The IDC works closely with diamond bourses and exchanges around the world, helping them adopt and enforce the grading standards and ethical practices established by the council. This strengthens the reputation of diamond trading platforms, ensuring they are recognised as reputable and trustworthy in the eyes of consumers and industry professionals alike.

Promoting Ethical Standards: The IDC has been instrumental in promoting ethical sourcing and responsible trading practices. It advocates for the conflict-free diamond trade and ensures that diamonds are sourced responsibly, free from human rights abuses. This aligns with the broader goals of the Kimberley Process certification scheme, which aims to prevent the trade of conflict diamonds.

Enhanced Consumer Confidence: By standardising diamond grading and nomenclature, the IDC helps enhance consumer confidence in their diamond purchases. Consumers can rely on grading certificates and labels that follow established and internationally recognised standards, ensuring that the diamonds they purchase are accurately described and priced.

Adapting to Technological Advances: As the diamond industry continues to evolve, the IDC remains committed to adapting its rules and guidelines to reflect technological advancements in diamond grading and manufacturing. For example, as lab-grown diamonds become more prevalent in the market, the IDC has worked to ensure that they are properly identified and classified according to distinct and transparent criteria.

Key Contributions of the International Diamond Council
Development of the International Diamond Grading System (IDGS): The IDC has been instrumental in developing the International Diamond Grading System (IDGS), which is widely used in diamond grading worldwide. This system is designed to ensure consistent grading practices and provides a clear, understandable framework for diamond evaluation.

Collaboration with Laboratories: The IDC collaborates with independent diamond grading laboratories around the world to ensure that they follow the established guidelines for grading and certification. This collaboration has helped raise the overall standard of diamond evaluation, providing consumers and businesses with more reliable and transparent information.

Promoting Education and Training: The IDC is also involved in educating industry professionals about the latest developments in diamond grading, certification, and nomenclature. By providing training and resources to diamond dealers, graders, and jewellers, the IDC ensures that the standards it sets are consistently followed across the industry.

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Gem Quality

Only about 20% of mined diamonds are of gem quality, meaning they meet the necessary standards for use in jewellery. The remaining 80% fall into the industrial-grade category, used in various commercial and technological applications. Let’s explore this in more detail:

Breakdown of Diamond Quality
Gem-Quality Diamonds (≈20%)

These diamonds are characterised by high clarity, colour, and cut quality, making them desirable for jewellery.
They undergo cutting and polishing to enhance their brilliance before being set in rings, necklaces, earrings, and other fine jewellery.
Their value depends on the 4 Cs (Carat, Cut, Colour, Clarity) and whether they are natural or treated.
Industrial-Grade Diamonds (≈80%)

These diamonds are lower in clarity, may have visible inclusions, and often exhibit yellow, brown, or grey colours that make them unsuitable for jewellery.
They are used in industries due to their hardness and durability, which are essential for cutting, drilling, grinding, and polishing applications.
Common uses include:
Diamond-tipped drill bits and saw blades for construction and mining.
Abrasive powders for polishing and grinding metals.
High-tech applications, such as semiconductors and heat conductors in electronics.
Why the Low Percentage of Gem-Quality Diamonds?
Several factors contribute to why only a small fraction of mined diamonds qualify as gem-grade:

Formation Conditions: Natural diamonds form under extreme pressure and temperature deep within the Earth’s mantle. Impurities or irregular growth can affect their clarity, colour, or shape.
Inclusions and Blemishes: Many diamonds contain internal inclusions (tiny fractures or foreign minerals) and external blemishes, making them less suitable for jewellery.
Colour and Transparency: Gem-quality diamonds are typically colourless to light yellow (D-Z on the GIA colour scale). Many mined diamonds have a strong brown or grey tint, reducing their desirability.
Cutting Yield: Some rough diamonds, even if of good quality, may be inefficiently shaped for cutting into marketable gemstones.
Impact on the Diamond Market
Rarity Drives Value: Since high-quality diamonds are less common, they retain their value better than industrial-grade diamonds.
Lab-Grown Diamonds: The gap in supply between industrial and gem-quality diamonds has led to advancements in lab-grown diamonds, which can be produced with high clarity and controlled quality.
Recycling & Recutting: Some lower-quality diamonds can be recut or treated (e.g., laser drilling, fracture filling) to enhance their appearance, but these diamonds are usually less valuable than untreated stones.

The fact that only 1 in 5 mined diamonds meets gem-quality standards highlights the rarity and value of fine diamonds. This also influences pricing, sourcing strategies, and market trends, as both natural and lab-grown diamonds compete in the luxury and industrial sectors.

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If I buy a certified diamond, how do I know that the diamond in my ring is the one described on the diamond certificate or diamond grading report?

There are a number of ways to verify that your diamond matches the diamond certificate it is purchased with. If you purchased a diamond that is laser inscribed, ask your jeweller to show you the laser inscription under magnification. This way, you will always be able to identify the diamond as your own.

DCLA also performs a verification service, for both DCLA certified diamonds and for diamonds certified by other internationally recognised laboratories. Bring  or send your diamond, together with the diamond grading certificate, to the DCLA laboratory and the diamond will be conclusively matched against the certificate. DCLA can then cold laser inscribe the diamond with either the diamond grading certificate number, or with a personalised message.

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How do I know that my diamond certificate or diamond grading report is from an independent laboratory ?

Ask the jeweller if the diamond certificate comes from an independent diamond laboratory or if it produced by a diamond merchant or retailer, then do your research. Make sure the certificate is issued by the DCLA or another highly respected diamond grading laboratory; DCLA is the only diamond grading laboratory worldwide to offer a full-replacement Diamond Grading Guarantee.

De Beers taps into polished diamonds market with first-time auction

DTC De Beers

Anglo American’s De Beers, the world’s largest rough diamond producer by value, has decided to begin selling its own polished diamonds in auctions for the first time in its history.

The pilot auction, scheduled for June, will include a wide range of polished stones manufactured directly from the company’s own rough diamonds.

"The pilot auction, scheduled for June 29, will include a wide range of polished stones manufactured directly from De Beer’s own rough diamonds." All the polished rocks will carry grading reports from both the International Institute of Diamond Grading & Research (IIDGR) — De Beers’ in-house grading unit — and the Gemological Institute of America (GIA).

“We are interested in testing the level of demand from polished buyers for diamonds that have a clear and attractive source of origin, and that offer the assurance of product integrity that dual certification provides,” Neil Ventura, the miner’s executive vice president of auction sales, said in the statement.

If successful, the process would provide De Beers with more insight into the polished market, while also helping consumers fill gaps in supply or inventory if they were unable to find goods at the company’s rough auctions, he added.

All registered De Beers auction buyers will be eligible to bid in the first sale, which takes place on June 29.

Source: Mining.com

Blue Moon Diamond

The Blue Moon Diamond has been sold for a record US$48.26m at Sotheby’s in Geneva.

The sale price is a record per carat and for total value for any gemstone.

Blue Moon Diamond has no inclusions and has been officially declared flawless.

The 29.62-carat diamond was found at the Cullinan Mine in South Africa in January last year, blue diamonds make up only 0.1% of diamonds unearthed at the mine.

It was then cut and polished in New York, a process which took six months and eventually produced the 12.03 carat vivid blue gem.

De Beers cuts rough diamond prices and sight

De Beers which produces thirty percent of world rough diamonds has cut prices by 10 percent for the sight.

This comes after two reductions in its annual production output by 15 percent failed to slow slump in prices of rough.

Rough diamond prices have dropped 14 percent in some categories and are in their fifth consecutive quarterly loss, which is the longest in a decade.

De Beers cut the size of the sight to $250 million and reduced the prices by 9 percent, according to sight holders.  

De Beers has also contributed tens of millions to a jewellery advertising campaign. Its advertising campaign will promote diamond jewellery in the U.S. and to Chinese consumers.

De Beers sightholders refuse boxes Update

De Beers’s sightholders.

De Beers’s the world’s largest rough producer felt the pain, when only $300 million of the $450 million estimated sight was taken up by their sightholders. This leaves 30 percent of the rough on offer  on the table.

Anglo has previously counted on diamond revenues to offset a collapse in the price of other metals and minerals it mines. Anglo may cut the company’s dividend for the first time since 2009 according to analysts.

This is an indication of turmoil in the $80 billion diamond industry as traders, cutters and polishers suffer from a poor liquidity and weaker demand for jewellery.

Producers in India, where 90 percent of rough diamonds are cut and polished, may halt imports over the supply glut.

Update: Report sightholders may have refused 35%-50% at July sight which may be as low as $200M.