DDG Ass #1 - Introduction

Diamond Industry

• Diamonds were discovered in India 3000 years ago, initially reserved for royalty.
• Peak production reached 180 million carats in 2005, fluctuating between 120-150 million carats currently, potentially decreasing.
• The "Diamond Value Chain" is the diamond supply chain term.
• USA is the largest diamond consumer, followed by China and India.
• Lab-grown diamonds are an emerging industry challenge.
• Simulants, treatments, branding, marketing channels, and traceability are other challenges for retailers.
• Trust and honesty in business are crucial for success.

Diamond Science

• Diamond formation occurs approximately 140 km below the Earth's surface.
• Recent research shows diamonds can form at greater depths than previously believed.
• Natural diamond formation and characteristics allow gemologists to distinguish between lab-grown or treated diamonds.
• Fancy diamonds are highly sought after, expensive and difficult to identify.

Diamond Grading

• The GIA grading system is a global standard.
• The GIA system is used by many labs globally.
• Antwerp is a major diamond trading hub.
• Standard diamond grades enable discussion without stones present.

Key Terms

• Appraisal: Valuation of a diamond, often for insurance.
• Diamond Value Chain: All stages in producing and distributing diamonds.
• Traceability: Verification of a diamond's history throughout the supply chain.

Diamond Concepts

• Retailers must adapt to changing consumer demographics and preferences.
• Identifying natural or lab-grown diamonds is complex, due to advancements in growth technology and treatment methods.
• Branding, identifying products, and efficient distribution channels are critical.
• Knowledge of the industry and market is essential.
• Diamond science helps understand rarity and value.
• Diamond grades help match stones accurately.
• Large, high-quality diamonds are evaluated more thoroughly than smaller, lower-quality stones.