See Online Magazine
https://labgrownmagazine.com/Issues/AprilMay2020/
Uncertain Times
As much of the jewelry industry-and indeed
industries around the world-shut down, we
here at Lab-Grown Magazine would like you,
our readers, to know that our prayers are with
you and your families for your continued wellbeing
through these uncertain times.
The unprecedented health crisis that we
are all facing calls for unprecedented measures
and, while our staff is working remotely
in keeping with recommended social distancing,
we are always available by phone or email.
And, although face-to-face business may
be slowing, the digital age we live in allows
companies to effectively communicate in
cyberspace, with opportunities to be creative
in ways to market their lab-grown gems to
customers around the world.
Despite the crisis, lab-grown diamonds
continue to make news. While the coronavirus
has taken the sparkle out of India’s polished
mined-diamond exports-which saw a
decline of 41% in February 2020-exports of
polished lab-grown diamonds saw an increase
of 60% during the same month, according to
India’s Lab-grown Diamond and Jewellery
Promotion Council (LGDJPC).
The lab-grown rough material is sourced
mainly from China and Singapore and most
is polished in Surat, the hub of India’s mineddiamond
cutting industry. The majority of
India’s lab-grown exports go to the United
States, where mega-brands such as Signet
Jewellers, Zales, Kay and Jared sell lab-grown
diamond jewelry in their stores and online.
In other news, a new grading report for lab grown
diamonds has been launched by Gemological
Science International. GSI notes
that its report will not only indicate whether
the stone was made using the HPHT or the
CVD method, but also whether it has undergone
post-growth treatment, i.e. if it has been
enhanced or treated in some way.
The feature article in this April issue takes
a look at the environmental aspects of lab grown
stones. Claims by certain sellers that
LGDs are more “eco-friendly” than mined
diamonds have attracted a lot of attention, but
as the article points out, the situation is far
from simple. Definitely worth the read.
So, until the next issue, please stay safe.
Zev
The Diamond Sustainability Question
GRAB YOUR UMBRELLA
By Dan Scott
Once calculated, a mathematical sum
never changes, thus numbers don’t lie. On the
other hand, as the saying goes: Figures don’t lie,
but liars figure. This is especially true when billions
of dollars are at stake and individual livelihoods
depend on numbers that are released in a
given report.
And, those same reports tend to favor the person
and/or entity funding the report. With this in
mind, attention was focused on verified numbers
and noteworthy science—not sensationalism—to
write this article.
We are today in the midst of a “green” diamond
sustenance storm. It’s pelting down on all of us
while building up momentum with conflicting marketing
messages from lab-grown (LG) producers
and conventional miners, each claiming to be
“greener” and “better” for the Earth and mankind.
The short- and long-term outlook has us weathering
this self-created storm, but with the proper
knowledge and planning, you will come out shining.
First, though, a bit of rain must fall.
Carbon’s Darker Side
A continuous flow of eco-friendly industry
statements, persuasive court documents, detailed
white papers and global news releases are
emanating from LG associations and producers
as well as from the mining community.
What isn’t continuous or consistent, however,
is the message. LG and mined producers are attempting
to simplify and satisfy the question of
carbon—the carbon footprint, to be exact. How
large and damaging might the carbon footprint
be? Who’s leaving the bigger one—how and
why? For that matter, what is a carbon footprint?
A carbon footprint is defined as the total amount
of greenhouse gases (specifically CO2 as well as
methane, nitrous oxide and others) that are produced
to directly and indirectly support human
activities, usually expressed in equivalent tons
of CO2. It includes direct emissions, for example,
from fossil-fuel combustion in manufacturing,
heating and transportation, as well as emissions
required to produce the electricity associated
A reminder of how vast and expansive mining
operations presently are at ground level and deep
below the earth is seen here at Karowe, Botswana.
(Photo: Max Pinckers for The New Yorker)
with goods and services consumed. In short,
your carbon footprint is your impact on the environment
and global climate change. The smaller
the footprint, the better is life on our planet.
Speak Loudly and Carry
a Big Umbrella
I once worked for Barry Diller, creator of Fox
Broadcasting and USA Networks. A hard-edged
boss with few words, he knew how to succeed
in the brutally competitive broadcasting and entertainment
industries. His mantra was “Always
carry an umbrella,” a phrase that was as much a
metaphor for personal and corporate policy protection
as it was a reminder to keep his $5,000
suits from getting wet.
Diller’s actual umbrella was golf-size, but he
declared, “Gauge how wide your umbrella really
is at all times,” i.e. “be aware of all the factors at
play within your virtual circumference.” He contended
that holding your own umbrella meant
that circumstances should be kept under your
control. “If you get soaked, it’s your own fault.”
Imagine, for a minute, that you are holding a
huge umbrella covering the critical components
of the diamond world. You’re in control. Holding it
is also to shield yourself from an opponent pouring
cold water on you.
The diamond world’s umbrella is “sustainability.”
Those, who think we can all get under one
big umbrella and not get wet, are all wet. Today
we are each in a sustainability storm and we
can’t realistically expect any association or leadership
group to provide an umbrella. You need to
get your own protection. But that’s not so easy.
Each LG producer must promote their own genuine
accomplishments in the realm of sustainability.
It’s important that you don’t just cut and
paste from a competitor’s website or ad, and it’s
essential that you don’t make false or misleading
claims. Rather, you should insist on what is
real, and be ready to carry that message. This
article can help in that regard.
The diamond sector defines “sustainability” as
giving back to Nature, addressing global warming
and protecting the Earth. But sustainability
must also address harmonious, continued activities
in all links of the diamond supply chain,
within all cultures and generations. Regardless
of which side of the diamond production and distribution
you are on, managing your own message
while walking in step with fellow umbrella
users, helps ensure that everyone stays dry.
A Lot of Heavy Upper Hands
Current research reports provided by established
diamond industry associations should normally
be a great place to look for transparent and
accurate data on sustainability.
While this is precisely where my research began,
it quickly became obvious that one group
has the stronger upper hand. Leveraging public
relations prowess and decades of profitability
power, the sheer amount of public discourse on
this subject is delivered mostly by natural diamond
miners. Their reach is far greater than what
the LG sector offers.
Mining-oriented membership groups are placing
what appears to be a permanent and heavy
thumb on the sustainability scale. How so? It’s
simple math: More groups equal more people.
More people equal more money. More money
equals more voice.
The global membership groups praising all that
is mined include the Diamond Producers Association
(DPA), the World Federation of Diamond
Bourses (WFDB), the World Diamond Council
(WDC), the Diamond Manufacturers and Importers
Association of America (DMIA), the Diamond
Council of America (DCA), the Indian Diamond
and Colored Stone Association (IDCA), the Israel
Diamond Institute (IDI) and the Natural Color
Diamond Association (NCDIA). In addition, local
power groups are dominating major markets and
strong regional pro-mine parties have plenty of
mud to sling at the LG side.
Local chapters of the Diamond Bourse of
Southeast United States (DBSE) and the Diamond
Dealers Club of New York (DDC) are two
examples of regionalized pro-mine people power.
While groups such as the United States Jewelry
Council (USJC), Manufacturing Jewelers
& Suppliers of America (MJSA), India’s Gem &
Jewellery Export Promotion Council (GJEPC)
and the Antwerp World Diamond Centre (AWDC)
may not be taking sides, they are also not using
their clout to clear up a lot of confusion—confusion
promulgated by their sister groups.
In 2017, the DPA (whose members include
seven of the world’s largest and most vocal diamond
companies) released a report through
London-based Trucost ESG Analysis, a company
that estimates the hidden costs of the unsustainable
use of natural resources. The DPA/
Trucost paper claims that mined diamonds are
much less carbon-intensive than LG diamonds,
making them the clear eco-friendly choice.
Trucost estimated that the average polished
mined diamond emits 160 kg of CO2, significantly
below its estimate of 511 kg for each polished
carat grown in a lab. This is more emotionally
effective when seeing the numbers in the graph
below. The report states that a 1-carat LG diamond
has over 500 times the “relative carbon
intensity” as a pair of Levi’s 501 jeans. That, of
course, only applies when people start discarding
their LD diamonds in the garbage.
But explosives and other sources of greenhouse
gas emissions from diamond mine sites
vary greatly according to the report. Miners are
said to protect up to three times as much land as
they use for extraction without any genuine evidence
of such. These statements are confusing.
“I think their [DPA] estimates on greenhouse
gas emissions and energy usage are very questionable,”
says Saleem Ali, professor of energy
and the environment at the University of Delaware
and an occasional adviser to diamond makers.
“To claim that their carbon and energy footprint is
less than synthetic…defies common sense.” Ali
isn’t alone in his beliefs. Raymond Fruier, strategic
communications director at Earthworks, a
U.S. non-profit public research group, says “It’s
not surprising reports heavily funded by major
diamond miners have determined that mined diamonds
are ‘greener’ and better than lab-grown
diamonds.”
When challenged, De Beers quickly released
news of heavy investments in a new technology,
which, the company claims, will soon be able to
store carbon in the quarry and mine rocks, to
create its first carbon-neutral pit. De Beers questioned
all LG producers’ claims of using “renewable
energy” to reduce their carbon footprint,
noting that most U.S. cities are not equipped to
produce “renewable energy.”
On the other side, the U.S.-based LG grower,
Diamond Foundry, claims to be the world’s
first carbon-neutral LG producer since its production
is powered by renewable energy in California.
And so far, no one has challenged this
assertion, but how does it measure up on the
yet-to-be-invented carbon-footprint calculator?
Renewable energy is defined as power produced
from unlimited natural resources that cannot
be depleted or may be replenished within a
human’s lifetime. The most common examples
are solar, wind and hydro-power.
The company, Renewable Energy Prospects,
issued a statement noting: “The United States of
America can increase its use of renewable energy
in power generation to almost 50% by 2030,
making it the world’s second largest renewable
energy user after China, if it moves properly and
promptly.”
At last count, the U.S. is at 13.3% with operational
renewables, but the 2018 Grid Transformation
and Security Act and the Clean Economy
Act are making some states jump into action. For
example, Virginia has mandated 100% of “clean
power” by 2045. If you are a lab-grown producer,
keep that in mind when seeking to set up shop
in a “clean energy” state with many tax benefits.
Under the Sea
What about other sources of diamond? “Let’s
not forget there are plenty of undiscovered diamond
mines under the sea, which might be more
eco-friendly than traditional mining, but that investigation
has just begun,” says Ashok Some, a
professor and luxury brand strategist at France’s
ESSEC Business School.
De Beers didn’t need to hear that from a French
professor. The company took the dive in 2016.
With an investment of more than $100 million,
a De Beers unit traveled to Namibia, off Africa’s
Atlantic coast, with a 285-ton vacuum machine.
Operating 400 feet below sea level, it was
designed to suck up some of the world’s most precious
diamonds from the ocean floor. There were
no explosives, no pickaxes, no kidding.
While it somewhat worked, there were several
technology issues. Even worse, it vacuumed up
many fish and sea plants. Clearly, it had an environmental
impact on those creatures.
De Beers went back to the drawing board and
created the world’s first diamond-searching ship,
a custom-built vessel crafted for $468 million in
2019. Called the Debmarine, the ship is a joint
venture between De Beers and the government
of Namibia. It now owns seven of these ships
and operations are scheduled to start in 2022.
This joint venture is expected to add 500,000
carats per year to Namibia’s output of seabed
mined diamonds.
In comparison, the typical mining side in Namibia
is one million carats a year, although that
land site is up for sale. “We are focused on finding
a buyer that can sustain operations beyond
2020, protect jobs and contribute sustainably
to the Namibian economy,” says Riaan Burger,
Nameb chief executive officer, adding “and we
are very excited about the sea exploration project
with De Beers.” The hopeful sale of earth mining
in Namibia is a reminder that sustainability is
about now, not tomorrow.
An Anglo-American executive stated that this
increase in future diamond output represents a
35% year-on-year increase of current levels from
this one region alone and that it will be 100%
carbon neutral. Or will it? What about the energy
used to make and fuel the ships? With more than
3,700 square miles of marine diamond concessions
along its southwest coast, Namibia is expected
to support the natural diamond industry
for the next 50 years. How is it then that DPA
insists that white diamonds are rare?
So, challenged by multi-million-dollar diamond searching
ships and millions of members worldwide
from well-funded mined-focused global
entities, where should LG producers turn for assistance
and information? Hint: This is where you
may want to grab your umbrella.
It’s a Start
In May 2019, the Lab Grown Diamond Council
(LGDC) was launched in Manhattan with Chris
Casey at the helm and Michael Barlerin (who
also heads Silver Promotion Service) as chairman.
The Mission of the LGDC is to “develop
and implement a multi-tiered, international
communications program designed to increase the
awareness of, knowledge about and demand for
lab-grown diamonds,” according to a press statement
issued by LGDC.
Barlerin explained, “Many leading companies
in the lab-grown market have approached me
over the last year regarding the need for focused,
research-based messaging on advocacy, communications
and education of the unique offering
of lab-grown diamonds. The LGDC creates the
platform to develop and deliver on these needs.”
“The ‘sustainability grown diamond estimation
mark’ is being established to create a unified
voice to maximize the growth of lab-grown
diamonds,” said Casey. “Our intent is to provide
members with the tools they need to continue to
drive the growth of this revolutionary product.”
With sustainability in mind, the LGDC created
an LG certification—a branded way to identify LG
stones through a neutral third party called Scientific
Certification Systems, Inc., now doing business
as SCS Global Services (SCS).
Still, it is unclear how LGDC effectively promotes
lab-grown diamonds as being “greener”
than mined stones. Do its efforts focus only on
LG? Do they show how many producers are using
renewable energy? Do they show what tools
may be available to help? Stay tuned.
Another LG group has a been around for four
years. Founded in February 2016, the International
Grown Diamond Association (IGDA) is
based in North Carolina and is a well-funded,
non-profit group that claims to be “the first collective
and comprehensive trade association”
representing the LG industry. As of last count,
this group is still small with less than 35 member
companies worldwide, including growers, distributors,
retailers and consumer brands.
IGDA’s declared mission is to represent, educate,
promote, develop and grow the LG industry,
while helping consumers better understand the
value and benefits of LG diamonds. If that is truly
the case, the IGDA seems to be doing so in the
shadows. Most people are unaware of their presence,
and there was no response to my requests
for information.
Yet, both of these LG groups contend that an
earth-mined diamond produces more than 125
pounds of carbon per carat. By contrast, LG
diamonds release about 6 pounds of carbon, or
5% of what mined stones produce. Clearly, their
carbon footprint is much smaller. LG producers
may also compare the amount of sulfur dioxide
that mined diamonds produce (more than 30
pounds each) compared to zero for lab-grown
diamonds. Sulfur dioxide is a pollutant that depletes
the ozone layer, contributing to the warming
of the Earth. Do you wonder why you haven’t
read a lot about that benefit? So do I.
The winning solution for LG’s sustainability
argument is the use of renewal energy, and this
seems to be where the industry is heading. “Any
LG diamond factory could launch in any city,
powered largely by renewable energy, and it
would emit less carbon than any diamond miner
and should be promoted as such,” in a statement
from researchers at the University of Delaware.
Kentucky Clean ‒ Science versus
Sensationalism
Based in Louisville, Kentucky, a new LG facility
is currently producing l,000 “clean carats” a
month. The Kentucky Advanced Materials Manufacturing
Company (KAMM) is a subsidiary of Da
Vinci holdings, a global organization with existing
operations ranging from jewelry manufacturing to
distribution.
KAMM’s LG project is a collaboration with the
University of Louisville’s Center for Renewable
Energy Research and is part of a billion-dollar
worldwide effort to grow large “green” diamonds
for a variety of applications, including jewelry.
While KAMM is the first to establish this scale of
capability in Kentucky, it has a hard time making
national news.
Mining-oriented
membership groups are
placing what appears
to be a permanent and
heavy thumb on the
sustainability scale.
Above and Below Ground
LG diamond creation requires carbon, hefty
equipment and a massive electrical power
source to enable the required heat and pressure.
An operational LG producer needs a more structured
and smaller geographical space compared
to earth miners. It also employs fewer workers.
A key benefit in the sustainability question is
that LG producers are far less reliant on where
their production site is located. They also provide
a much safer working environment for their employees
than do miners.
Their operations don’t scar the planet with
miles and miles of dead land and dead trees, so
their “green” marketing message makes a lot of
sense from a surface perspective.
But, ask any LG-focused organization or manufacturer
to provide verified, third-party data to
support their earth-friendly mantra, and the message
often becomes muddy. After all, where is
the massive power coming from? How is it being
delivered? What are any negative residues after
the necessary power surges?
Diamond mining requires a considerable
amount of human resources. It is quite handson
with modernized, legal monitors, measuring
precautionary human safety and damage to the
earth.
Mining requires industrial-level transportation
and heavy equipment, resulting in high fuel use
and polluting emissions, not to mention explosives,
all in a vast specific outdoor space.
The image of explosions to create vast enormous
pits in the ground that are near hundreds,
if not thousands of people—with many in loweconomic
and depressed regions—quickly upsets
the peaceful “Kumbayah” mindset. Can you
erase that image from your mind when hearing
the latest DPA message?
Lab-grown operations
don’t scar the planet with
miles and miles of dead
land and dead trees, so
their “green” marketing
message makes sense.
By the Numbers
In the DPA/Trucost report mentioned earlier,
its analysis included the impact of energy, explosives
and other sources of greenhouse gas emissions
at mine sites as well as the operation of
functions such as finance and human resources
that are essential to running a pit.
But “the analysis does not include impacts and
benefits associated with exploration, mine closure,
diamond cutting and polishing, retail and
post-consumer phases of the diamond lifecycle,”
says Rick Lord, analyst at Trucost and one of the
report’s lead authors. Exploration, for example,
can be carbon intensive, since roads are built to
reach difficult-to-access areas, as can be mine
closures and all the heavy equipment that requires.
Perhaps the report left out more information
on these issues since they only increase the
mined-diamond carbon footprint.
It is unclear how this tug-of-war between mined
and lab-grown diamonds will end, although it
seems probable that the winners might be those
holding the largest umbrellas. “To the person who
cares about economic development, buy from
the large-scale mine. To the person who cares
about poverty, buy from a small-scale mine. To
the person who loves technology, innovation
and potentially helping your homeland, buy labgrown,”
says responsible mining expert Estelle
Levin-Nally of Levin Sources.
Dan Scott is Founder/Brand Architect with New York
Metro’s Luxe Licensing. Past and current clients
include Harry Winston, Chanel, Gucci and several
up-and-coming high jewelry and demi-fine brands.
He welcomes conversation and can be reached at
201.294.3697 or at dans@luxelicensing.com. ■
Frequently Asked Questions
About Lab-Grown Diamonds
With the growing demand for labgrown
diamonds comes a growing
number of important questions.
Daniel Sheppard, co-founder of Lab-
Grown Source, the largest lab-grown
diamond trading platform, answers
some of these FAQs.
Q: Is there a correct way to refer to lab-grown diamonds?
A: Yes. You must disclose to a customer when a stone is lab-grown. The Federal Trade
commission (FTC) has directed that you cannot call it a diamond unless it is preceded by a
term that makes it clear that it was not mined.
The term you use to describe lab-grown diamond has, however, some leeway. The FTC has
listed “Laboratory Grown,” “Cultured,” “Grown,” and “Created” as acceptable terms to describe
non-mined diamonds. The FTC also removed “Synthetic” from the list and this term should not
be used.
Q: Which growing process is better, HPHT or CVD?
A: This is a hot topic within the industry. The bottom line is that it is not required to disclose to
a customer which method of growth was used because, in almost every way, it makes no difference
to a customer. The difference between the two processes are on a molecular level and
only affect a gemologist studying the stone.
However, you should be aware that HPHT stones often incorrectly test as moissonite with a
pen tester. This can sometimes be raised when a customer has the diamond tested by a jeweler
who is not aware that pen testers do not work well on lab-grown diamonds.
Q: How long does it take to grow a diamond?
A: This varies with the size of the diamond. A 1-carat diamond takes about 3 to 6 weeks while
a 3-carat diamond needs about 6 to 9 weeks.
Q: Why aren’t all lab-grown diamonds flawless?
A: The process of growing a diamond in a lab recreates
the same process of growing a diamond in
the earth. This is an imperfect process where inclusions
and color can happen in the diamond. The
growers only have limited control of quality. Growers
can usually choose the quality within a range, but
there are always outliers that grow outside of that
quality range. The longer they grow a diamond, the
more risk there is for inclusions and damage in the
diamond.
Q: Why can’t I get a GIA-certified lab-grown diamond?
A: GIA will and does grade lab-grown diamonds.So you might
ask why does almost every lab-grown diamond you see have either
an IGI or GCAL certificate? It is because few growers want a GIA
certificate.
The reason is that GIA withholds their grades on
lab-grown diamonds from the certificate, giving only
a range. GIA will grade a diamond, enter it into their
database, but only give a range on the certificate.
The chart* below outlines how GIA grading
works for mined and lab-grown diamonds. Why
would you want a certificate that indicates no differential
between a G and a J LGD, or between an
SI1 and SI2 lab-grown diamond?
G-colored diamonds clearly are more desirable
and have a higher value than a J, but are not differentiated
by GIA’s grading system, so a range is not
helpful to anyone.
Why does GIA show their LGD grading like this? I don’t have an answer to that, but
a GIA certificate would give lab-grown diamonds greater respect and validation. I hope
that GIA will one day change this policy.
Q: Do lab-grown diamonds change in color?
A: The short answer is no. But that is not entirely true. Lab-grown diamonds do not fade or
gradually change color over time. Their color is permanent like a natural diamond. But there
have been some reports of CVD diamonds changing color for about 20 minutes when exposed
to extremely high temperature or high radiation. But these changes are rare and only temporary,
and do not occur in situations that regular people find themselves in.
Q: Where are lab-grown diamonds grown?
A: Most commonly, they are grown in Hong Kong/China and India. There are also several
important growers in the United States, Russia and Europe.
Q: Will the value of a lab-grown stone plummet to the price of a cubic zirconia?
A: Barring a few exceptions, diamonds are not an investment, so if we are selling them as
such, then we are being deceptive to our customers. If they are expecting a good ROI on
buying a diamond, they are going to be very disappointed.
In terms of the future price of LGDs, no one knows. Beware of anyone who pretends that
they do. Unless you have a crystal ball, answers to this question are an educated guess.
This is a long and complicated question, but I will share a few thoughts about it
Those who argue against LGDs maintain that if you can grow an
infinite number of diamonds, then-as technology improves-the
cost of growing will eventually go to zero. There is some truth
to this, but it is an oversimplification and ignores a few key
elements about lab-grown diamonds.
♦ It currently costs more to grow a diamond then to
mine one. It is the streamlined supply chain that leads to
lab-grown diamonds costing less.
♦ Growing a diamond is not like popping corn in the
microwave. You can’t just put a diamond seed in, push a
button and come back to a nice shiny LGD. The process
requires very advanced machinery that needs to be run by
highly skilled workers at large facilities. All of this requires a
very significant investment.
♦ Costs to cut, polish and wholesale a diamond are the same
for both mined and lab-grown, and account for the majority of
the cost of a diamond. Even if growing a diamond cost $0, all
of these other costs are still incurred, and could become more
expensive in the coming years as labor costs in
India and China increase.
♦ There are different opinions on this, but there
are reports that diamond mines will be empty by
2045 if we don’t start finding more deposits. If so,
this could greatly increase the demand for lab grown
diamonds.
♦ Just because you can create an infinite amount
of something does not mean the value will go to $0.
Over time, supply will match demand. For example,
phone manufacturers could flood the market with
cell phones. They could spend vast amounts of
money and build lots of factories. They could make
enough phones for everyone to have several each.
However, this is highly unlikely because doing this
would cause the demand, and therefore the price,
of phones to plummet. Most companies would go
out of business until supply and demand begin to
balance out.
I am not saying that LGDs will not drop in
price because they already have. So have mined
diamonds-and at a similar rate to LGDs recently.
These are a just a few points to consider when
deciding if lab-grown diamonds will one day be
priced like a cubic zirconia. ■
