Denverappraiser on how to avoid ''Conflict Diamonds''

[pricescope]

Neil (aka DenverAppraiser) published a new article: How to avoid ''Conflict Diamonds'' - Thank you, Neil.

some recent discussions:
Jewelers are nervous about \"blood diamond\" movie
Canadian diamonds

recent articles:
Diamonds are forever; prosperity isn''t
Trade prepares retailers for "Blood Diamond" film fallout

 

[WinkHPD]

Nicely done Neil!

Wink

 

[Regular Guy]

Neil,

Good topic; thanks. But, please help me look behind the curtain...

You wrote...

"How then, do you know if a diamond you are considering is KP compliant? Simple, ask. Every dealer should be prepared to provide you with the following written statement or words to this effect:

The diamonds herein invoiced have been purchased from legitimate sources not involved in funding conflict and in compliance with United Nations Resolutions. The seller hereby guarantees that these diamonds are conflict free, based on personal knowledge and/or written guarantees provided by the supplier of these diamonds.

This isn''t nearly as toothless as it seems at first glance. By issuing this guarantee, they are setting themselves up personally for both civil and criminal prosecution if it turns out to be false...."

I was not searching for this feature, but happy that Jim at then DCD (now James Allen) did include this statement on his website. I didn''t actually compare to other vendors here, to know whether they do, too, as well. But...here''s the thing. I would think Jim''s processes are virtually the same as all or most of his competitors...that he doesn''t do more due diligence, as perhaps you suggest, than they do. And that he is relying on the representations made to him by the same suppliers that all of his competitors use as well.

But...this is a topic enough to have people interested in it, and interested enough for people to consider buying Canadian diamonds, as you also do represent this as a not unreasonable option.

Are some wholesalers not committed to the Kimberly process, such that we can imagine Jim may avoid them, where others doing retailing might be willing to use them instead?

This might be the supposition of this portion of your article. In the alternative, maybe you''re just suggesting that if a retailer is thoughtful enough to include the text, we should be prepared to hold him to it...which is sort of another point.

Perhaps the bottom line question here...what sort of quality control practices should we understand exist for those entities who do represent that the Kimberly processes have been adhered to. It seems (until this is researched further, and I invite your response...sorry Jim...) that either this is a topic that might not be of great concern to buyers using garden variety Internet and store vendors, since the Kimberly Process is widely adhered to, and readily applied...or in the alternative, it''s hard to maintain these Kimberly principles, only special vendors and wholesalers do, and finding one who claims this is a rare find. I''m guessing the former is the case. In which case, if the concern is reasonable, the goodness associated with the quality control that goes into the claim that we are "conflict free" is a goodness I am at least curious about.

 

[WinkHPD]

Ira,

To the best of my knowledge all the diamonds that I see offered today from wholesalers are accompanied by this statement. I doubt that I could go looking for and find any diamonds that are acknowledged not to be covered under the Kimberly accords, so in a sense you hit the nail on the head that it is something that all retailers are adhering to simply because we have no accurate way of knowing that we are not adhering to it.

If as Neil states in his article that 99.8% of the diamonds on the market today are conflict free, then there would be no obvious advantage to any jeweler to even try to deal in conflict diamonds. The penalties are too steep and the rewards too shallow. I do not know what the discount from a supplier would be from these stones, but it would not be nearly as steep a discount as I could get buying off the street from divorces etc. If I wished to increase my margin I would sure rather open a pawn shop that bore no risk of imprisonment than try to save 10-15% dealing in conflict diamond, assuming of course that I had even a clue where to find them, which I do not.

There is a lot of furor over an issue that has been largely resolved. The furor should have come out many years ago when it was happening and when jewelers and their suppliers were already working on it rather than now when it is largely fixed.

Wink

 

[strmrdr]

Good job Neil.
Right to the point.

 

[denverappraiser]

Ira,

Almost every dealer, and even more so every wholesaler is supportive of Kimberley. It’s the only way to have repeatable regular supplies. 0.2% of newly mined stones isn’t a lot, but it’s not zero either. This begs an interesting question about where those stones end up.

#1 Stones can be smuggled into KP compliant sources. A smuggler could take a conflict stone and smuggle it into a mine somewhere else (Canada for example). A Canadian worker finds it and presto it’s now Canadian.

#2 Some dealers are simply shady characters and there is a black market in diamonds, mostly based on stolen goods, which is much bigger than just the conflict issue. The people who are peddling stolen merchandise aren’t nearly as likely to be concerned about KP compliance as the legitimate dealers. At the risk of disparaging pawn shops, most are much less careful about their sources than others in the trade. The guy who approaches you on the street and says ‘Hey buddy, wanna buy a diamond?’ may not be the best source for morally responsible shoppers.

#3 Some markets are less sensitive about this. Consumers in some countries are far less likely to ask questions about this than in others. A dealer of questionable goods would do well to avoid high profile sales in the US, Japan, Europe, etc.
North Korea, which is NOT a KP signer, isn’t a big market, but it is a market.

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[strmrdr]

To give the other side of the coin a little:

The biggest problem I have with the KP is that its only as good as the word of the next person up the chain.
Historically the trade does not have the best reputation for being upfront with consumers and in some places that is still the case.

The harsh penalties in the US help alleviate that somewhat but just how trustful is the chain. It is only as strong as the least honest link. As the GIA bribery scandal showed there are still some shady characters that use the large amounts of money in the system to corrupt the system for their own gain.

My opinion:
To be honest at this point I don''t worry about it too much but if wars pop up or intensify again in a major diamond producing area it would be a much greater concern to me.

 

[denverappraiser]

I certainly agree that KP is the start, not the end of this process. What this whole issue is bringing up is a whole new value characteristic to diamonds. The success of the Canadian marketing clearly points out that at least some customers want credible provenance and they are willing to pay extra to get it. What remains to decide is what constitutes an acceptable level of credibility, how much is this extra attribute worth, and how many people are interested in it. Apparently it’s worth enough that some smart people in Canada think it’s worth their trouble to both do it and to spend a pile of money to promote it. What they’re doing is not inexpensive. KP has no advertising budget at all. I agree that KP is fundamentally based on the word of the weakest link and that KP stones enjoy a lower credibility than GNWT certified stones for this reason.

I DO believe that a customer who buys a stone from a legitimate US dealer who makes the KP statement about it can be confident that they are not buying a conflict diamond. This list includes every single dealer who advertises here.

One of the interesting questions surrounding this topic is this: If provenance is valuable, and GNWT Canadian provenance is better than KP, what could a 100% legitimate African, Australian, Russian or other non-Canadian producer do to improve their own credibility? Would a GUARANTEED conflict-free stone from Namibia be worth as much as an otherwise similar stone from Canada? More? Less? Who could issue an acceptable guarantee?
Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[CaptAubrey]

To legally bring a rough diamond into the US, it must be accompanied by a KP certificate. So if you're buying from a legitimate jewelry store, you can trust that their stock is KP compliant.

Whether the KP itself works is a different issue, but it's certainly an improvement over the previous state of affairs.

 

[CaptAubrey]

Date: 6/8/2006 12:04:19 PM
Author: denverappraiser



#1 Stones can be smuggled into KP compliant sources. A smuggler could, for example, take a conflict stone and smuggle it into a mine somewhere else (Canada for example). A Canadian worker finds it and presto it’s now Canadian.

It''s a bit more complex than that, though such smuggling is enough of a problem that the RCMP has a special task force to deal with it.

One thing people need to realize is that the Canadian government''s definition of "Canadian diamond" is not the same as the US government''s defiinition of "Canadian diamond." Under US Customs regulations, the country of origin for manufactured goods is the country where the manufacturing took place, not the origin of the raw materials. This includes rough/polished diamonds.

This means that if I buy a parcel of Ekati rough from a BHP tender in Antwerp, have it cut there, when I bring it back to the US, I have to call them "Belgian diamonds" if I refer to their origin at all.

On the other hand, if I buy a parcel of who-knows-what off the street in Kinshasha, DRC, somehow get it into Canada and have it cut in Yellowknife, I now have a pile of DRC conflict diamonds that I can legally sell in the US as "Canadian Diamonds."

Bottom line, if you want to be 100% sure you''re not getting a conflict diamond, get a synthetic or a CZ.

And by the way, the tantalum in the batteries in your cell phone came from the DRC too.

 

[diagem]

Date: 6/8/2006 4:54:44 PM
Author: CaptAubrey

Date: 6/8/2006 12:04:19 PM
Author: denverappraiser




#1 Stones can be smuggled into KP compliant sources. A smuggler could, for example, take a conflict stone and smuggle it into a mine somewhere else (Canada for example). A Canadian worker finds it and presto it’s now Canadian.

It''s a bit more complex than that, though such smuggling is enough of a problem that the RCMP has a special task force to deal with it.

One thing people need to realize is that the Canadian government''s definition of ''Canadian diamond'' is not the same as the US government''s defiinition of ''Canadian diamond.'' Under US Customs regulations, the country of origin for manufactured goods is the country where the manufacturing took place, not the origin of the raw materials. This includes rough/polished diamonds.

This means that if I buy a parcel of Ekati rough from a BHP tender in Antwerp, have it cut there, when I bring it back to the US, I have to call them ''Belgian diamonds'' if I refer to their origin at all.

On the other hand, if I buy a parcel of who-knows-what off the street in Kinshasha, DRC, somehow get it into Canada and have it cut in Yellowknife, I now have a pile of DRC conflict diamonds that I can legally sell in the US as ''Canadian Diamonds.''

Bottom line, if you want to be 100% sure you''re not getting a conflict diamond, get a synthetic or a CZ.

And by the way, the tantalum in the batteries in your cell phone came from the DRC too.

Agreed, you know what you are talking about...
Neil, i would have wished it was that clear as you believe it is.

 

[denverappraiser]

Date: 6/8/2006 5:43:34 PM
Author: DiaGem

Neil, i would have wished it was that clear as you believe it is.

What is it you disagree with?

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[in-situ]

I''m new to this forum and I immediately find a good, juicy topic

Well done Neil for starting this post!

My take on things..

The blood diamonds movie will only have a negligible and short-term effect on jewelers / the diamond industry as a whole, if at all. The bottom line is that since their discovery, people have desired, cherished and aspired to own diamonds, both as symbols of everlasting love and as a symbol of status / wealth. The blood diamonds movie will not change this fact. We all know that cars kill the environment but do we stop driving? No. We know that guns kill but do we ban the sale of guns? No. We also conveniently forget that there have been a number of reports of sweatshope being used by major sporting goods brands but do we stop buying their products? No. You get my point, I''m sure.

I agree with almost all of what has been stated, but I do have to take my hat off to the pirate CaptAubrey, basically you cannot absolutely guarantee that even a KP "clean" diamond originated where the certificate says it did - most people should be intelligent enough to realize this.

 

[diagem]

Date: 6/8/2006 6:00:29 PM
Author: denverappraiser

Date: 6/8/2006 5:43:34 PM
Author: DiaGem

Neil, i would have wished it was that clear as you believe it is.

What is it you disagree with?

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

Neil, I didnt say I "disagree", I said I wished it was that clear and simple....

 

[denverappraiser]

Date: 6/8/2006 6:17:35 PM
Author: DiaGem

Neil, I didnt say I ''disagree'', I said I wished it was that clear and simple....

I agree.

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[diagem]

Date: 6/8/2006 6:05:45 PM
Author: in-situ
I''m new to this forum and I immediately find a good, juicy topic

Well done Neil for starting this post!

My take on things..

The blood diamonds movie will only have a negligible and short-term effect on jewelers / the diamond industry as a whole, if at all. The bottom line is that since their discovery, people have desired, cherished and aspired to own diamonds, both as symbols of everlasting love and as a symbol of status / wealth. The blood diamonds movie will not change this fact. We all know that cars kill the environment but do we stop driving? No. We know that guns kill but do we ban the sale of guns? No. We also conveniently forget that there have been a number of reports of sweatshope being used by major sporting goods brands but do we stop buying their products? No. You get my point, I''m sure.

I agree with almost all of what has been stated, but I do have to take my hat off to the pirate CaptAubrey, basically you cannot absolutely guarantee that even a KP ''clean'' diamond originated where the certificate says it did - most people should be intelligent enough to realize this.

Now that is being realistic...
Diamonds are just a tiny drop in the bucket coming out of these conflict area''s...., try "OIL" for example... (there are loads others)
But the media will not touch that subject due to interests....

We (industry members) need to put an emphasis on the fact that there are and were much worst stories on different subjects other than diamonds!!!

Neil, if you want to focus on the confict issue, try to collect more data on the other huge comodoties being stolen out of all those poor African countries..., and keep reminding/educating the consumer that 99.8% (ninty nine point eight percent) of diamonds are coming from legit sources..., and that Canadian diamonds are sold at a PREMIUM, and are not the only legit diamonds (what about Australia, Brazil, Russia, need I name more?), and that Canadian Diamonds are only a "marketing" strategy to collect higher prices.

 

[denverappraiser]

Date: 6/8/2006 6:30:05 PM
Author: DiaGem
Now that is being realistic...
Diamonds are just a tiny drop in the bucket coming out of these conflict area's...., try 'OIL' for example... (there are loads others)
But the media will not touch that subject due to interests....

We (industry members) need to put an emphasis on the fact that there are and were much worst stories on different subjects other than diamonds!!!

Neil, if you want to focus on the confict issue, try to collect more data on the other huge comodoties being stolen out of all those poor African countries..., and keep reminding/educating the consumer that 99.8% (ninty nine point eight percent) of diamonds are coming from legit sources..., and that Canadian diamonds are sold at a PREMIUM, and are not the only legit diamonds (what about Australia, Brazil, Russia, need I name more?), and that Canadian Diamonds are only a 'marketing' strategy to collect higher prices.

Ah, now there’s some areas where we disagree.

I’ve never been a big fan of defending a crime by pointing out that there are other bigger criminals in the vicinity. I certainly agree that diamonds are a tiny industry and that we are not, and never have been, among the biggest offenders but we should STILL be making efforts to clean up our own house. The strategy of distracting attention by pointing the other way is part of how we got into this mess and it will probably be part of the next one as well. The diamond business has become vastly more transparent in the last decade and I count this as an improvement. The accomplishments of Kimberly in 3 year are, quite frankly, remarkable. I dearly wish the oil business (or a variety of others) could do as well at extracting the criminals from their industry. Perhaps they can learn something by watching us. Maybe they can do it even better and we can learn something from them. It’s good either way. Let's take our lumps where we deserve them and give credit to those who are making it better. I'm proud to be in the diamond industry. The 'blood diamond' issue is a blot on our collective reputations and I'm proud that we're collectively doing something about it.

I don’t have the same problem with marketing that you seem to. Certified Canadian stones are worth more because they have GNWT papers. They are worth more than the exact same stone when presented with different paperwork. I don’t see this as a problem. Actually, I see it as a feature. It tells me that people are willing to put their money where their mouths are and it means that it’s worth the effort for the Africans, Aussies etc. to get their act together and convince people that their products are conflict free. This is the next level. As was pointed out above, KP is based on the credibility of the weakest link and this brings down the credibility of the strongest. The fact that there seems to be money available in it means that individual countries, mining companies, cutting houses and even specific mines can design profitable business models where one of there selling points is that they are socially and environmentally responsible. It's wonderful when responsible behavior and profit motives are aligned. I call this progress, and that premium is money well spent.

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[lil_jay78]

Well said Neil. I completely agree with you that though this industry is not the biggest...having a "clean" house is just as important.

And as far as being 100% sure, if you want a diamond, unless you mined the rock yourself, you won''t be sure...even then, there can be some crazy conspiracy. Anyway, all we can do as consumers, if we want to have diamonds, is take all safest route possible that we know of, and trust that everyone else is doing their part to make sure that route is indeed safe.

 

[denverappraiser]

These comments from Garry Holloway (aka Cut Nut).
-----------------------------------------------------------------------------------------------------------------------------

I would just like to add that the Kimberely Process is a multi government (70 nations I think) system of warranties on rough diamonds – the exporting government acknowledges that all export taxes have been paid by the miner / exporter and that the diamonds came from legitimate sources.

Then each of the active diamond importing nations issues a certificate to say that a legitimate export certificate accompanied the rough diamonds to the distribution or cutting nation.

It is worth noting that the provenance of large parcels of diamonds is readily identifiable – so smuggling out of one country and gaining a legitimate certificate from another is unlikely because of the risk of confiscation. Also most exporting nations raise a tax of about 7% - so smugglers would not usually like to pay their dues (the biggest problem as this tax money helps build schools and hospitals etc).

Smugglers could always add a smaller number of rough to other larger parcels – but that then assumes a larger conspiracy – and other legitimate exporters would usually not want to play that game.

The overall effect of KP is that the value of smuggled diamonds on the market is much lower than the 7% export tax, so even the Lebanese buyers in Sierra Leonie etc have gone clean and are paying their dues. They will of course do all the bribing they can to lower the taxable value of the goods they export, but these previously failed states are now being helped by Alrosa and Lev Lieve to put in proper and transparent infrastructure. True clean and honest government may be decades away for many of these countries – but at least we are now moving toward development diamonds.

PS – in rome and have to use internet café – so no time to post – but if you want you are welcome to post those comments from moi

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[denverappraiser]

100% certainty is not the standard, not because it’s undesirable but because it’s unattainable. It’s the same reason that there are non-zero standards for the acceptable amount of rat feces in hot dogs, mercury in fish, uranium in the air and similar issues where the obvious best choice is zero. Even if you buy a synthetic, a CZ, an antique, or a Canadian diamond there is a certain level of uncertainty about this sort of issue. You can’t to be 100% certain that the CZ wasn’t cut by a slave or a child, that the jeweler who sold it to you doesn’t sell drugs, beat his wife or neglect her children or that the producing lab is in compliance with labor and environmental laws. It’s all a matter of credibility. If you buy from a legitimate dealer you can be reasonably, but not 100%, confident that you aren’t supporting a terrorist cell. 99.8% certainty is pretty good. 98%, which is what KP the critics say, is still pretty good. Can they do better? I think so, and so do they. They're working on it. If it’s moving in the right direction, then the good guys are winning.

eil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[mepearl53]

With all due respect Neil I''d like to chime in here and agree and disagree. Let''s look at your list.

1) Can anyone really guarantee that all Canadian diamonds are conflict free because they say that they are? 100% Think GIA grading scandal. Little salt, little pepper. When money is involved anything can happen.

2) Antique diamonds. I think it was fair to say when I got into the business a fair amount of the gems we saw bought and sold were recycled or stolen. People were robed and maimed for the rocks. Even jewelry stores were robbed as they are today and the diamonds (and other rarities) were redistrubuted. I believe the Hope diamond in our Smithsonian was stolen, re cut, and re-sold.

3) Buy man made? Yes, but the production is so small of the gem qualities that you could not supply .01% of the bridal business alone at this point.

4) KP diamonds? Maybe but where money is involved do we really know 99.8% is accurate

5) Avoid diamonds entirely? And use what else? Another type of gemstone where it''s probably worse than the diamond industry. We can''t use pearls for we kill those oysters. I won''t buy fur for I remember those pics of the baby seals being harvested. Or eat veal for that''s not a pretty picture of how we get that tender meat. If I saw the way other meats were processed I''d probably become a vegetarian but what they do to those potatoes is horrible.

I''ve got to agree with Capt. A and Dia Gem. There are no 100% guarantees about anything besides death and taxes and every industry has it''s rotten eggs. It''s horrible what has been and continues to go on over in Africa. I listen to my national public radio everyday and all they talk about is Iraq and Iran. Not that 20% of the population or more are with aids or near death. The rebels are still there. We''ll send our men and women to protect our oil interests but what about getting involved in some human relief and maybe help rid these countries of these rebels? KP is the best we can offer.

 

[denverappraiser]

Date: 6/9/2006 5:23:37 PM
Author: mepearl53
With all due respect Neil I'd like to chime in here and agree and disagree. Let's look at your list.

1) Can anyone really guarantee that all Canadian diamonds are conflict free because they say that they are? 100% Think GIA grading scandal. Little salt, little pepper. When money is involved anything can happen.

2) Antique diamonds. I think it was fair to say when I got into the business a fair amount of the gems we saw bought and sold were recycled or stolen. People were robed and maimed for the rocks. Even jewelry stores were robbed as they are today and the diamonds (and other rarities) were redistrubuted. I believe the Hope diamond in our Smithsonian was stolen, re cut, and re-sold.

3) Buy man made? Yes, but the production is so small of the gem qualities that you could not supply .01% of the bridal business alone at this point.

4) KP diamonds? Maybe but where money is involved do we really know 99.8% is accurate

5) Avoid diamonds entirely? And use what else? Another type of gemstone where it's probably worse than the diamond industry. We can't use pearls for we kill those oysters. I won't buy fur for I remember those pics of the baby seals being harvested. Or eat veal for that's not a pretty picture of how we get that tender meat. If I saw the way other meats were processed I'd probably become a vegetarian but what they do to those potatoes is horrible.

I've got to agree with Capt. A and Dia Gem. There are no 100% guarantees about anything besides death and taxes and every industry has it's rotten eggs. It's horrible what has been and continues to go on over in Africa. I listen to my national public radio everyday and all they talk about is Iraq and Iran. Not that 20% of the population or more are with aids or near death. The rebels are still there. We'll send our men and women to protect our oil interests but what about getting involved in some human relief and maybe help rid these countries of these rebels? KP is the best we can offer.

Bill,

I don't think there's anything there I disagree with so we're agreeing to agree.

Nothing is 100%, nor did I say it was. I even agree that the 99.8% KP claim is suspect. Their critics use 98%.

Antique does not mean a clean history. It means that it's not part of the current and recent crop of problems in west Africa that have become known as 'conflict diamonds'. I agree that stolen merchandise is a vastly bigger problem.

I agree that synthetics have their problems, including the restricted availability, high prices and the current offerings of fancy colors only, but they are conflict free and those who want them CAN get them.

CZ is a pretty good substitute for diamonds, it's reasonably likely to be conflict free and lots of people buy it. Doing without jewelry entirely is also an option.

Is there a strategy you would like to add to the list?

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[diagem]

Date: 6/9/2006 6:36:51 PM
Author: denverappraiser

Date: 6/9/2006 5:23:37 PM
Author: mepearl53
With all due respect Neil I''d like to chime in here and agree and disagree. Let''s look at your list.

1) Can anyone really guarantee that all Canadian diamonds are conflict free because they say that they are? 100% Think GIA grading scandal. Little salt, little pepper. When money is involved anything can happen.

2) Antique diamonds. I think it was fair to say when I got into the business a fair amount of the gems we saw bought and sold were recycled or stolen. People were robed and maimed for the rocks. Even jewelry stores were robbed as they are today and the diamonds (and other rarities) were redistrubuted. I believe the Hope diamond in our Smithsonian was stolen, re cut, and re-sold.

3) Buy man made? Yes, but the production is so small of the gem qualities that you could not supply .01% of the bridal business alone at this point.

4) KP diamonds? Maybe but where money is involved do we really know 99.8% is accurate

5) Avoid diamonds entirely? And use what else? Another type of gemstone where it''s probably worse than the diamond industry. We can''t use pearls for we kill those oysters. I won''t buy fur for I remember those pics of the baby seals being harvested. Or eat veal for that''s not a pretty picture of how we get that tender meat. If I saw the way other meats were processed I''d probably become a vegetarian but what they do to those potatoes is horrible.

I''ve got to agree with Capt. A and Dia Gem. There are no 100% guarantees about anything besides death and taxes and every industry has it''s rotten eggs. It''s horrible what has been and continues to go on over in Africa. I listen to my national public radio everyday and all they talk about is Iraq and Iran. Not that 20% of the population or more are with aids or near death. The rebels are still there. We''ll send our men and women to protect our oil interests but what about getting involved in some human relief and maybe help rid these countries of these rebels? KP is the best we can offer.

Bill,

I don''t think there''s anything there I disagree with so we''re agreeing to agree.

Nothing is 100%, nor did I say it was. I even agree that the 99.8% KP claim is suspect. Their critics use 98%.

Antique does not mean a clean history. It means that it''s not part of the current and recent crop of problems in west Africa that have become known as ''conflict diamonds''. I agree that stolen merchandise is a vastly bigger problem.

I agree that synthetics have their problems, including the restricted availability, high prices and the current offerings of fancy colors only, but they are conflict free and those who want them CAN get them.

CZ is a pretty good substitute for diamonds, it''s reasonably likely to be conflict free and lots of people buy it. Doing without jewelry entirely is also an option.

Is there a strategy you would like to add to the list?

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

Neil, a wise man once told me not to try to save the world....
Its soooo out of your control, dont waste your energy on trying what the biggest leaders of this industry failed so far (with good intentions)....

My suggestion to you is: dont play to the media''s interests, dont make an issue out of it..., its a big enough issue as it is.

 

[mepearl53]

My suggestion to you is: dont play to the media''s interests, dont make an issue out of it..., its a big enough issue as it is.

The issue will reveal it''s ugly head soon enough regardless of Neal''s or someone else comments. It''s all about greed and power period. It would be interesting to hear from a informed forum like this PS group thinks before the movie comes out. So chime in here PS''er and let''s here what you have to say. Debate is good and will be a great sounding board on how the informed feel.

 

[denverappraiser]

I’m not sure I would describe the big players in the industry as ‘leaders’ but they are the ones who are behind KP and it strikes me that they’re doing a decent job of most of it. What they’re bungling is selling it, and the Canadians are eating their lunch. If you ask the vast majority of people, even industry insiders, how to avoid buying conflict diamonds, the only things they are able to think of are to buy Canadian or to boycott diamonds entirely. This issue is growing and it’s going to continue to grow, no matter what you or I do. Roughly 400 people have read my essay and this discussion in the last few days and most of them now know more about the subject than they did last week. They know more about it than the vast majority of their friends and associates and, hopefully they have a more balanced opinion than they get from Hollywood and the professional fearmongers. Yes, 400 people is just a raindrop in the grand scheme of things but it’s hard to know which raindrop is the one that makes a storm.

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[Capitol Bill]

Here is one thing industry leaders are working on.

Here is another.

The second link (above) contains information about Fair Trade Jewelry. The concept of Fair Trade Jewelry is similar to "Fair Trade Coffee" that many coffee establishments have recently begun offering their customers. Portions of the purchases of diamonds and other jewelry-related materials mined and produced by people living in poverty stricken countries go to directly benefit the lives of those who help to mine and produce the materials.

If consumers were given the option of purchasing a diamond that was helping to fund schools, hospitals and clean water and electricity projects in poverty stricken areas that produced the diamond, I would bet that enough people would choose to do it. Just think of all the consumers who are currently willing to pay a premium for a certified Canadian diamond. In the coming months and years the diamond buying public will have a conflict-free alternative that will not just enrich the coffers of the governments of the NW Territories. Fair Trade Diamond and Jewelry purchases will help make a difference in the lives of the unprivileged people producing the diamonds. There''s a compelling element to this kind of purchase, which is in keeping with the notions of romance and decency.

When Fair Trade Diamonds and Jewelry become available to my business, I will endeavor to offer them to my clients.

Bill Scherlag

 

[diagem]

Date: 6/9/2006 8:49:35 PM
Author: denverappraiser

I’m not sure I would describe the big players in the industry as ‘leaders’ but they are the ones who are behind KP and it strikes me that they’re doing a decent job of most of it. What they’re bungling is selling it, and the Canadians are eating their lunch. If you ask the vast majority of people, even industry insiders, how to avoid buying conflict diamonds, the only things they are able to think of are to buy Canadian or to boycott diamonds entirely. This issue is growing and it’s going to continue to grow, no matter what you or I do. Roughly 400 people have read my essay and this discussion in the last few days and most of them now know more about the subject than they did last week. They know more about it than the vast majority of their friends and associates and, hopefully they have a more balanced opinion than they get from Hollywood and the professional fearmongers. Yes, 400 people is just a raindrop in the grand scheme of things but it’s hard to know which raindrop is the one that makes a storm.

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

Who described the "Industry leaders as Big Players... you keep reading the text wrong!!!!

 

[diagem]

Just for thoughts...

Aber (a Canadian mining Company) owns Harry Winston....,

Even they dont mention the fact that they market their own Canadian production as "Canadian conflict free diamonds".

That says a lot in my opinion!!!

 

[denverappraiser]

Date: 6/9/2006 7:03:42 PM
Author: DiaGem

Neil, a wise man once told me not to try to save the world....
Its soooo out of your control, dont waste your energy on trying what the biggest leaders of this industry failed so far (with good intentions)....

Diagem,

Your right, I’m missing your point again. You mentioned that the biggest leaders of the industry as having failed so far. Who were you referring to and what initiatives of theirs are you calling failed (so far)?

RE: Aber.
Yes, at least one company that could be selling certified Canadian goods chooses not to. This comes as no surprise to me but it apparently tells you a lot. What? The GNWT people have a brisk and growing business with their services and many customers seem to like it but it’s hardly required.

Capital Bill.

Thanks for the links. Fair trade diamonds is another great initiative towards addressing this and other issues. It definitely deserves support and I hope it does great for you. Keep us posted.

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[Regular Guy]

Date: 6/9/2006 10:14:04 PM
Author: Capitol Bill

Here is another.

The second link (above) contains information about Fair Trade Jewelry. The concept of Fair Trade Jewelry is similar to 'Fair Trade Coffee' that many coffee establishments have recently begun offering their customers. Portions of the purchases of diamonds and other jewelry-related materials mined and produced by people living in poverty stricken countries go to directly benefit the lives of those who help to mine and produce the materials.

If consumers were given the option of purchasing a diamond that was helping to fund schools, hospitals and clean water and electricity projects in poverty stricken areas that produced the diamond, I would bet that enough people would choose to do it. Just think of all the consumers who are currently willing to pay a premium for a certified Canadian diamond. In the coming months and years the diamond buying public will have a conflict-free alternative that will not just enrich the coffers of the governments of the NW Territories. Fair Trade Diamond and Jewelry purchases will help make a difference in the lives of the unprivileged people producing the diamonds. There's a compelling element to this kind of purchase, which is in keeping with the notions of romance and decency.

When Fair Trade Diamonds and Jewelry become available to my business, I will endeavor to offer them to my clients.

Bill Scherlag

Bill,

This "fair trade" thing sounds interesting to me. Did you happen to go to that part of the conference in Las Vegas? Was it well attended?

Three points:

1) Our synagogue is getting into sponsoring sale of fair trade coffee. Pricing is competitive for other "high end" coffee, but basically twice the price of what is at the grocery store. Still, the good is appealing to buyers of both varieties for what the underlying idea is about.

2) Although I instigated it at our Temple, I'm also suggesting we have a counterbalancing set of education, encouraging members to try to figure out how to keep their "eyes on the prize," and consider if their money is best spent in this way, given the bigger picture of helping others even, while serving themselves, if that is their intent.

3) Fundamentally, however, given the symbolic nature of an engagement ring, if the additional idea is not too complicated an add on...I can see the idea of "fair trade diamonds" having some real bite. And also, addressing more the root of the problem, of how to really help, vs either the Canadian approach or Kimberly approach, which more just seems to say I don't want to get my hands dirty. When the talk about how to invest in South Africa or not some dozen years ago or more, vis-a-vis apartheid issues was current, the idea of avoiding or engaging framed the discusson in a pointed way. And it seems clear that the concept of fair trade helps to address the problems associated most directly.

P.S. (my) bad edit of your post...your first link looks to have a bright view as well. Good post, Bill!

Regards,