After India’s Bharat Diamond Bourse (BDB) is considering lifting the ban on Lab-grown Diamonds from its trading floors, China’s Guangzhou Diamond Exchange (GZDE) signing strategic cooperation agreement to promote Lab-grown diamond, more developments are happening at global diamond bourses regarding Lab-grown diamonds.
DDE conducts world’s first Lab-grown diamond tender
UAE’s Dubai Diamond Exchange (DDE), part of The Dubai Multi Commodities Centre (DMCC) – world’s leading Free Zone for Commodities, recently conducted world’s first-of-its-kind tender of rough Lab-grown diamonds. The tender conducted at Dubai’s Almas Tower from May 13 – 15 was organized by Hong Kong-based diamond trading firm Tony’s Auction World, and around 50,000 carats of rough CVD (Chemical Vapor Deposition) Lab-grown diamonds were showcased.
Rushabh Mehta – CEO, Tony’s Auction World said “We are proud to stage in Dubai the first laboratory-grown diamonds tender in the world. Lab-grown diamonds offer a different value proposition to natural diamonds and trading them in a regulated and open platform increases the transparency and legitimacy of the sales process. This is a major milestone and testament to both the growing prominence of lab-grown diamonds and their increasing market appeal,”.
All tender participants were required to follow due diligence process, provide evidence that Lab-grown diamonds are sold and stored separately, clearly disclose and differentiate Lab-grown diamonds from Mined diamonds to adhere to DDE’s Code of Business Conduct. DDE is affiliated with World Federation of Diamond Bourses (WFDB), which means the DDE has to also comply with WFDB’s overarching policies and framework.
IDE also contemplating to lift the ban on Lab-grown Diamonds
Joining many other bourses, Israel Diamond Exchange (IDE) is also apparently contemplating to lift the ban on Lab-grown diamonds. IDE’s President Yoram Dvash in a Hebrew Facebook post recently said that he had discussion with senior members of the bourse on the way forward to the Lab-grown diamond scenario.
Apparently, this discussion was also triggered in the wake of Signet Jewellers’ e-commerce arm – James Allen entering the Lab-grown diamond sector last month. Through a special arrangement with Israeli Diamond Institute (IDI), James Allen is a major buyer from the Israeli diamond trade.
Yoram Dvash said “Other members felt we must join [James Allen] in carrying synthetic stones… A decision was made to continue to investigate the issue more deeply, and to hold a further discussion in the near future.”
IDE wants traders to put clear mark on small envelopes and Invoices to clearly indicate Lab-grown diamonds and it has already approved a budget to better segregate Lab-grown diamonds from Mined diamonds.
WFDB President Ernie Bloom has no issues with trading of Lab-grown diamonds on floors of diamond bourses as long as there is clear differentiation and ethical marketing. He said “[Bourses] have the right to decide if they want to have lab-grown diamonds on their bourses or not… Whatever their decision is, we will basically support it.”