Hundreds of Undisclosed Lab-Made Diamonds Detected, Fears Many More Are Circulating

(IDEX Online News) – Concerns are rising that a large number of undisclosed lab-made diamonds are circulating in the market. Suspicions were raised after IGI detected a batch of such items a few weeks ago, according to Chaim Even-Zohar. The goods have VVS-VS clarities, leading to suspicions that the purpose of creating the diamonds was to have them misidentified as natural diamonds.

Grading lab IGI identified about 600 stones out of a parcel of 1,000 F-J color, 0.30-0.70 carat diamonds as lab-made. A person who saw the diamonds said simply, "They were created to defraud."

The issue is not only a matter of knowing the source of the diamonds, but also one of determining their value. Polished lab-made diamonds are offered at 50-65 percent less than natural diamonds that have similar size, color, clarity and make characteristics.

According to warning posted on the DTC Sightholders website after they examined the diamonds, "[T]he combination of characteristics listed above is strikingly similar to that reported by the GIA [Wang & Moses 2011] for 16 CVD synthetics received from Gemesis Corporation."

Gemesis sells both rough and polished CVD- and HPHT- made diamonds. The diamonds under investigation were produced using the CVD process.

It is not known how many undisclosed CVD near-colorless lab-made diamonds are currently circulating in the market.

Avi Paz, president of the World Federation of Diamond Bourses, has urged vigilance, adding that violating rules on trading misrepresented or undisclosed products is grounds for suspension, expulsion, fines or other appropriate disciplinary measures.

In another article published in Diamond Intelligence Briefs (DIB), Even-Zohar reports on changes to the ownership, structure and activities of Gemesis.