Kimberly Process Failures - Conflict Free Diamonds

[serenitydiamonds]

Just a short little note on the issue of conflict free diamonds. If you''ve been watching the news lately you may (or may not have) heard about a significant amount of human rights abuses occurring in Zimbabwe relating to the mining and manufacture of diamonds. These diamonds have been exported as valid Kimberly Process (KP) "conflict-free" material and this has generated a lot of concern at actually how effective the Kimberly Process has been at actually guaranteeing diamonds are not sourced from areas of human rights abuses. Industry expert Martin Rapaport states: “Tens of thousands of carats of blood diamonds are now in dealers’ inventories and jewelers’ showcases — and are being actively sold to consumers....Instead of eliminating blood diamonds, the KP has become a process for the systematic legalization and legitimization of blood diamonds.”

How to handle this:

1. Ask where your diamonds are from. Ethically and human rights conscious diamonds importers will know the exact source of their diamonds. Demand that your diamonds are not sourced from Zimbabwe.

2. If you are very concerned about abuses, purchase diamonds mined from Canada or Russia with documents stating the exact source of the diamond.

Thanks,
--Joshua

 

[Lula]

I suspect -- I'm not for sure, just a suspicion -- that very few vendors, whether they are online vendors or bricks & mortar stores, can say with certainty what country their rough was sourced from (unless, of course, they source and cut their own rough).

I'd be interested in hearing from vendors on this.

 

[joxxxelyn]

This may seem very controversial, or at the very least highly opinionated, but I wouldn''t be absolutely devastated/angry/etc. if my stone was a conflict stone. I don''t take care to ensure my clothing doesn''t come from sweat shops. I don''t take care to ensure the food I eat is sustainable. I also believe that even with things like foreign aid, a lot of it gets intercepted by the wrong hands. I guess that means we should stop donating, too. The problems are not as simple as stopping buying blood diamonds because it will not solve the economic desperation that drives these wars.

Of course I don''t think it''s a good thing that they exist. If you really wanted to change the diamond industry in a meaningful way, you would *have* to bust up the supply limitation and drive down the price to make them less lucrative for rebel armies to possess. Since those regions are so hungry for money, they will turn to any quick commodity to get it. As long as prices are high, collusion will overcome the system and/or drive prices even higher for everyone in the supply chain because of the sheer desperation of that region. You will end up lining the pockets of whoever''s in charge of the "verification process" and still end up with conflict stones. In order to actually enforce something like that, their entire economy, and the diamond industry, would have to be overhauled and I just don''t think that''s our responsibility. This Kimberly Process exploitation is a perfect example of why. When you try to throw blankets onto a fire, they just burn up with it.

 

[Karl_K]

rather than repeat myself I''m going to link a good discussion on this topic.

https://www.pricescope.com/community/threads/la-times-says-the-kimberly-process-is-failing.131360/

 

[Lula]

Date: 3/3/2010 12:29:09 PM
Author: joxxxelyn


This may seem very controversial, or at the very least highly opinionated, but I wouldn't be absolutely devastated/angry/etc. if my stone was a conflict stone. I don't take care to ensure my clothing doesn't come from sweat shops. I don't take care to ensure the food I eat is sustainable. I also believe that even with things like foreign aid, a lot of it gets intercepted by the wrong hands. I guess that means we should stop donating, too. The problems are not as simple as stopping buying blood diamonds because it will not solve the economic desperation that drives these wars.


Of course I don't think it's a good thing that they exist. If you really wanted to change the diamond industry in a meaningful way, you would *have* to bust up the supply limitation and drive down the price to make them less lucrative for rebel armies to possess. Since those regions are so hungry for money, they will turn to any quick commodity to get it. As long as prices are high, collusion will overcome the system and/or drive prices even higher for everyone in the supply chain because of the sheer desperation of that region. You will end up lining the pockets of whoever's in charge of the 'verification process' and still end up with conflict stones. In order to actually enforce something like that, their entire economy, and the diamond industry, would have to be overhauled and I just don't think that's our responsibility. This Kimberly Process exploitation is a perfect example of why. When you try to throw blankets onto a fire, they just burn up with it.

I don't think your view is controversial here; actually, I think it is typical of what many consumers on this forum believe.

The consumers who are actively looking for conflict-free diamonds tend to belong to other diamond/jewelry forums, not this one.

 

[bgray]

Date: 3/3/2010 12:29:09 PM
Author: joxxxelyn


This may seem very controversial, or at the very least highly opinionated, but I wouldn''t be absolutely devastated/angry/etc. if my stone was a conflict stone. I don''t take care to ensure my clothing doesn''t come from sweat shops. I don''t take care to ensure the food I eat is sustainable. I also believe that even with things like foreign aid, a lot of it gets intercepted by the wrong hands. I guess that means we should stop donating, too. The problems are not as simple as stopping buying blood diamonds because it will not solve the economic desperation that drives these wars.


Of course I don''t think it''s a good thing that they exist. If you really wanted to change the diamond industry in a meaningful way, you would *have* to bust up the supply limitation and drive down the price to make them less lucrative for rebel armies to possess. Since those regions are so hungry for money, they will turn to any quick commodity to get it. As long as prices are high, collusion will overcome the system and/or drive prices even higher for everyone in the supply chain because of the sheer desperation of that region. You will end up lining the pockets of whoever''s in charge of the ''verification process'' and still end up with conflict stones. In order to actually enforce something like that, their entire economy, and the diamond industry, would have to be overhauled and I just don''t think that''s our responsibility. This Kimberly Process exploitation is a perfect example of why. When you try to throw blankets onto a fire, they just burn up with it.

impressively stated--i agree.

 

[Lula]

Thanks for posting the link to that thread, Karl. I was looking for it and couldn't find it.

I bought an Infinity diamond from Paul Slegers (through Wink), because I do care where my diamond rough is sourced.

As for the comments in joxxxelyn's post about whether we as individuals can make a difference in this situation, Margaret Mead sums up my belief perfectly:

"Never doubt that a small group of thoughtful, committed people can change the world. Indeed, it is the only thing that ever has." - Margaret Mead.

 

[denverappraiser]

Date: 3/3/2010 12:29:09 PM
Author: joxxxelyn


This may seem very controversial, or at the very least highly opinionated, but I wouldn't be absolutely devastated/angry/etc. if my stone was a conflict stone. I don't take care to ensure my clothing doesn't come from sweat shops. I don't take care to ensure the food I eat is sustainable. I also believe that even with things like foreign aid, a lot of it gets intercepted by the wrong hands. I guess that means we should stop donating, too. The problems are not as simple as stopping buying blood diamonds because it will not solve the economic desperation that drives these wars.


Of course I don't think it's a good thing that they exist. If you really wanted to change the diamond industry in a meaningful way, you would *have* to bust up the supply limitation and drive down the price to make them less lucrative for rebel armies to possess. Since those regions are so hungry for money, they will turn to any quick commodity to get it. As long as prices are high, collusion will overcome the system and/or drive prices even higher for everyone in the supply chain because of the sheer desperation of that region. You will end up lining the pockets of whoever's in charge of the 'verification process' and still end up with conflict stones. In order to actually enforce something like that, their entire economy, and the diamond industry, would have to be overhauled and I just don't think that's our responsibility. This Kimberly Process exploitation is a perfect example of why. When you try to throw blankets onto a fire, they just burn up with it.

I largely agree but I’m not sure high prices has much to do with it. Stealing diamonds from miners and selling them elsewhere works even if the prices are low since the cost of goods is effectively zero with this business model. It works and is widely practiced with other products as well ranging from AIDS medication and food where it’s ‘free’ from foreign aid to prostitution where it’s ‘free’ from the slaves providing the service. The problem isn’t with the product, it’s with the marketplace and the regulators, meaning the government. Zimbabwe is a mess. It’s been a mess for decades but it’s not diamonds or even the KP that made it so. If anything, KP is helping by finally shining a light on it. One thing has become clear from far too many cases of this sort of thing … what seems like local political problems can become global economic and social problems and transparency seems to help. KP is years behind on this and and the corruption of the process may spell the end of the program but even in it’s possible demise I think it’s helping.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[Regular Guy]

Date: 3/3/2010 12:53:19 PM
Author: sarap333

As for the comments in joxxxelyn's post about whether we as individuals can make a difference in this situation, Margaret Mead sums up my belief perfectly:

'Never doubt that a small group of thoughtful, committed people can change the world. Indeed, it is the only thing that ever has.' - Margaret Mead.

Sara, thanks for this...

but...as to where other folks spend their time, in terms of diamond boards...I thought that comment was off. Pricescope is the BORG in the diamond world...and no other sites are worth contemplating with respect to number.

Karl your comments in the other thread...

"In my opinion the problem with Kimberly process punishments is the same problem with the UN and US sanctions they move to slow and often do more harm than good.
A scalpel used at the right time does more good than a sledge hammer a day late and a dollar short."

Are to me...not notable.

As we sometimes talk about the frog who will jump out of a boiling pot of water if just put in...but lay dying in the water if slowly raised to a boil...it may be difficult to get a sense of the big picture, and when it's so bad that you need to get out.

Rappaport, a major figure, did only just resign from the World Diamond Council, associated with Kimberly, within the last bunch of weeks.

I think Denver's points are well taken.

Also, the opinion that most purveyors of diamonds may well not know from whence their diamonds come from...I am sympathetic with as well.

For this significant...very optional...purchase...I think it's ok to pay more and shop selectively.

Should you look only to Canada, et al.?

I hope not, and would look for providers here to try harder, and engage a different paradigm to meet this new environment. One representative here has been mentioned that can it seems speak to where their diamonds are sourced, and he's not even a vendor...but works with vendors (and Sarah's found him).

I really would like to see the results of more efforts from more vendors here on this important topic.

 

[serenitydiamonds]

Date: 3/3/2010 12:29:09 PM
Author: joxxxelyn


This may seem very controversial, or at the very least highly opinionated, but I wouldn''t be absolutely devastated/angry/etc. if my stone was a conflict stone. I don''t take care to ensure my clothing doesn''t come from sweat shops. I don''t take care to ensure the food I eat is sustainable. I also believe that even with things like foreign aid, a lot of it gets intercepted by the wrong hands. I guess that means we should stop donating, too. The problems are not as simple as stopping buying blood diamonds because it will not solve the economic desperation that drives these wars.


Of course I don''t think it''s a good thing that they exist. If you really wanted to change the diamond industry in a meaningful way, you would *have* to bust up the supply limitation and drive down the price to make them less lucrative for rebel armies to possess. Since those regions are so hungry for money, they will turn to any quick commodity to get it. As long as prices are high, collusion will overcome the system and/or drive prices even higher for everyone in the supply chain because of the sheer desperation of that region. You will end up lining the pockets of whoever''s in charge of the ''verification process'' and still end up with conflict stones. In order to actually enforce something like that, their entire economy, and the diamond industry, would have to be overhauled and I just don''t think that''s our responsibility. This Kimberly Process exploitation is a perfect example of why. When you try to throw blankets onto a fire, they just burn up with it.

Definitely controversial opinion. I''m not speaking as a vendor at the moment, the following is my opinion. Each person is capable of changing the world, and one person can make a difference. I don''t like some large discount retailers labor relations and how they treat local businesses, so I refuse to shop at those places. I look for designers of clothing that don''t use sweatshops. Once people stop buying from these vendors, they will disappear and better minded ones will follow.

Breaking up the supply chain wouldn''t really cause a drop in prices. The supply of diamonds is not nearly as controlled as before. In fact, diamonds don''t possess as high of a market as most other gems as there is tremendous competition at every piece of the supply chain. What would stop abuses of any kind in any business is a well educated consumer who demands that their goods are manufactured with integrity.

The abuses occur because gemstones are a high value item that are easily exploitable by those in power and most customers (>80%) don''t ask how they got there. In those places simple resources such as water are treated the exact same way. The diamonds happen to be in a country with major ethics issues. You very seldom hear of people being beaten and murdered for mining other ethical countries, but you do in Zimbabwe.

--Joshua

 

[serenitydiamonds]

Date: 3/3/2010 1:04:20 PM
Author: denverappraiser

Date: 3/3/2010 12:29:09 PM

Author: joxxxelyn



This may seem very controversial, or at the very least highly opinionated, but I wouldn''t be absolutely devastated/angry/etc. if my stone was a conflict stone. I don''t take care to ensure my clothing doesn''t come from sweat shops. I don''t take care to ensure the food I eat is sustainable. I also believe that even with things like foreign aid, a lot of it gets intercepted by the wrong hands. I guess that means we should stop donating, too. The problems are not as simple as stopping buying blood diamonds because it will not solve the economic desperation that drives these wars.



Of course I don''t think it''s a good thing that they exist. If you really wanted to change the diamond industry in a meaningful way, you would *have* to bust up the supply limitation and drive down the price to make them less lucrative for rebel armies to possess. Since those regions are so hungry for money, they will turn to any quick commodity to get it. As long as prices are high, collusion will overcome the system and/or drive prices even higher for everyone in the supply chain because of the sheer desperation of that region. You will end up lining the pockets of whoever''s in charge of the ''verification process'' and still end up with conflict stones. In order to actually enforce something like that, their entire economy, and the diamond industry, would have to be overhauled and I just don''t think that''s our responsibility. This Kimberly Process exploitation is a perfect example of why. When you try to throw blankets onto a fire, they just burn up with it.

I largely agree but I’m not sure high prices has much to do with it. Stealing diamonds from miners and selling them elsewhere works even if the prices are low since the cost of goods is effectively zero with this business model. It works and is widely practiced with other products as well ranging from AIDS medication and food where it’s ‘free’ from foreign aid to prostitution where it’s ‘free’ from the slaves providing the service. The problem isn’t with the product, it’s with the marketplace and the regulators, meaning the government. Zimbabwe is a mess. It’s been a mess for decades but it’s not diamonds or even the KP that made it so. If anything, KP is helping by finally shining a light on it. One thing has become clear from far too many cases of this sort of thing … what seems like local political problems can become global economic and social problems and transparency seems to help. KP is years behind on this and and the corruption of the process may spell the end of the program but even in it’s possible demise I think it’s helping.


Neil Beaty

GG(GIA) ICGA(AGS) NAJA

Professional Appraisals in Denver

Well said.

--Joshua

 

[denverappraiser]

Date: 3/3/2010 1:23:44 PM
Author: Regular Guy
I really would like to see the results of more efforts from more vendors here on this important topic.

Ira,

No vendor wants to traffic in conflict diamonds and none want to be perceived as such, even if that perception is false. What would you have them do that they aren’t doing now?

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[serenitydiamonds]

Date: 3/3/2010 1:23:44 PM
Author: Regular Guy

Date: 3/3/2010 12:53:19 PM

Author: sarap333
Also, the opinion that most purveyors of diamonds may well not know from whence their diamonds come from...I am sympathetic with as well.

In today's modern world of supply, manufacturing, and retail tracking, there are no excuses for not knowing where your supplies come from. When customers start demanding their stones come with a free conscience, the business will change, overnight.

--Joshua

 

[joxxxelyn]

"In any future conflict in the region, diamonds would be one of the surest ways with which to buy weapons. "Diamonds were very much the fuel for the war but not the root cause, and those root causes are still very much with us," says the Western ambassador. "Corruption, unemployment, poverty - I could well imagine another blood-diamond scenario here."

http://money.cnn.com/magazines/fortune/fortune_archive/2006/12/11/8395442/index.htm

While education on issues is rarely a bad thing, my point is that they''re not really the problem. An educated consumer refusing to buy blood diamonds will only work if such diamonds can legitimately be tracked, and if a large enough number of consumers do this to actually impact demand.

""We buy piece by piece and then gather them into a parcel to sell to dealers," he says. Once the parcel of diamonds is sold to a licensed dealer, illegally mined diamonds are easily mixed in."

The solutions I would propose would be things like fixing the infrastructure in that country, making micro loans to individuals who have needs and business plans, and other direct, concrete investments. You need to take away the economic incentive to use diamonds as a tool of war, not attempt to artificially drive down demand for said diamonds.

 

[Regular Guy]

Date: 3/3/2010 1:39:56 PM
Author: denverappraiser

Date: 3/3/2010 1:23:44 PM
Author: Regular Guy
I really would like to see the results of more efforts from more vendors here on this important topic.

Ira,

No vendor wants to traffic in conflict diamonds and none want to be perceived as such, even if that perception is false. What would you have them do that they aren’t doing now?

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

Neil,

I may need some help here...from guys like you!

On the one hand...I don''t really know the buttons on the "machine."

On the other hand, picking up text from, for example, the other linked thread, Garry noted:

"One of my main suppliers (Indian) does indeed provide such a tracking service - but frankly unless i knew the stone came from a RIO or BHP mine in a 3rd world country I am philosophically opposed to implementing the required tracking in my own business (which BTW I have the systems for and it costs about $0.01 per stone extra)."

If the constraints are:

-African origin
-well cut
-trackable
- marginal (watch that) increase in cost to purchase

...please...you tell me what options our vendors can turn to.

Then we''ll see why they''re not doing it.

 

[denverappraiser]

I wish I had the answer.

The problem is in adding an attribute of provenance (history) to the value of a diamond. It’s not like diamonds are perishable and after it’s cut there are precious few clues available for where it came from. The only option for this is in the paper trail. At the front end, with the miner who finds a stone, it’s already a done deal. He knows for sure where it came from and exactly when it was mined. Chances are fairly good that his boss also knows but there’s always opportunity for corruption and misdealing even at this level. Opportunities for trouble are at every step along the way including the mining company, the distribution of the rough, all of the various tax collectors, shipping companies, cutters and their employers, labs, dealers, retailers, etc. That’s a lot of opportunity for corruption.

The core problem, that of corrupt governments and criminals who are interested in infiltrating anything that has money in it, I think is basically unsolvable. It’s part of the human condition and improving on it involves overthrowing, improving or replacing the marginally more corrupt regimes and encouraging the success of ones that seem to be better. It's an evolution and 100% success is not an option. Even dabbling at this is tricky and dangerous because one man’s idea of a functional government is going to be different from someone else’s and people have VERY strong opinions about it. This is subject of wars.

As far as I can tell, the only solution in terms of diamonds is for the end consumers to count provenance as important enough that they’re willing to pay extra for it or at least willing to adjust their shopping habits in order to get it. At least this makes it possible for customers who want the paper trail to get it. It’s sort of like the way that people will pay extra for the pedigree of a dog or a horse ( sometimes a LOT extra). Rather like that market, I think the vast majority of buyers don’t really care, or at least don’t care enough to see a higher price as a result and are happy to compromise by getting a mutt. A few will pay the big bucks to get the paper and the bragging rights that go along with it. Both can go away happy. It’s a lost cause to hope that ALL diamonds will be free of criminal interests and I think it's impossible to cause all customers to care but I think it is possible to insure that SOME diamonds are provably such and SOME customers obviously do care. That's the place to start.

The Infinity folks are taking a stab at it as part of their bundle of benefits and they do a nice job of tracking the pedigree of their goods but, frankly, I don’t know how well this is going and surely their sales figures are proprietary even if someone asked. I have seen other brands using a similar approach but it doesn’t seem to be one of those things that’s really taken hold in the industry. The Canadamark program seems to have mostly fizzled and similar efforts from Botswana, South Africa and Russia don’t seem to even made much of a splash. Although I agree with Joshua’s suggestion that you can solve this by buying from a dealer who is prepared to defend and document their sourcing from mine to finger, the reality is that 99% of them are simply unable to do this and their inability is NOT evidence that they’re trafficking in stolen, conflict or otherwise questionable merchandise.

By the way, there are other attributes that can be of value that come from the paper trail as well and that are currently not used. The date of mining, the identity of the miner or cutter, the crystal structure of the original crystal and bunches of other things. Who knows where this can go but it’s not unprecedented to have significant value come from these sorts of ethereal characteristics. Again the example of purebred animals comes to mind although my 'certified' used Honda comes to mind as well.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[Rockdiamond]

Date: 3/3/2010 11:38:26 AM
Author:serenitydiamonds
Just a short little note on the issue of conflict free diamonds. If you''ve been watching the news lately you may (or may not have) heard about a significant amount of human rights abuses occurring in Zimbabwe relating to the mining and manufacture of diamonds. These diamonds have been exported as valid Kimberly Process (KP) ''conflict-free'' material and this has generated a lot of concern at actually how effective the Kimberly Process has been at actually guaranteeing diamonds are not sourced from areas of human rights abuses. Industry expert Martin Rapaport states: “Tens of thousands of carats of blood diamonds are now in dealers’ inventories and jewelers’ showcases — and are being actively sold to consumers....Instead of eliminating blood diamonds, the KP has become a process for the systematic legalization and legitimization of blood diamonds.”


How to handle this:


1. Ask where your diamonds are from. Ethically and human rights conscious diamonds importers will know the exact source of their diamonds. Demand that your diamonds are not sourced from Zimbabwe.


2. If you are very concerned about abuses, purchase diamonds mined from Canada or Russia with documents stating the exact source of the diamond.


Thanks,

--Joshua

Joshua- I''m sure your heart is on the right place, but this is horrible advice as it implies some very honest sellers are less than ethical based on information they can''t possibly supply.
It is taking the onus of ensuring conflict free diamonds and putting it on the shoulders of the retail sellers.
As has been pointed out, it''s not possible to guarantee that any particular diamond came from any particular mine unless one actually saw it mined.
This means that virtually NO retail sellers can state with certainty where their diamonds were mined.
The only possible answer an honest dealer or retail seller can have is that they use well established sources that guarantee they are not selling conflict diamonds.
How can Canadian diamonds be "guaranteed" to be from Canada- again, unless one actually saw it mined, and kept watching it while it was polished sorted etc....
Do you not think that Russia also experiences a lot of corruption?
We carry a lot of diamonds from Russia- and also make sure to only buy from well established sources that guarantee conflict free- but in reality, there''s simply no way to guarantee that everyone mining these diamonds was fairly treated.

 

[yssie]

Canadian - the fifth C.



They have done a fantastic job of implementing procedures that further ethical trading practices, and maintaining those standards.



They have done an even more fantastic job of advertising the fact.



There's corruption everywhere, just as there are honest miners/cutters/vendors everywhere. If the masses chose to only purchase Canadian diamonds, I can see two things happening: 1) their already inflated prices would skyrocket, and 2) other legitimate institutions would suffer, and unethical means to stay in business would become a whole lot more appealing.

 

[Rockdiamond]

good points yssie- I''m also curious to know how sellers of Canadian diamonds guarantee they are , in fact, mined in Canada.

 

[serenitydiamonds]

Date: 3/3/2010 4:16:26 PM
Author: Rockdiamond

Date: 3/3/2010 11:38:26 AM

Author:serenitydiamonds

Just a short little note on the issue of conflict free diamonds. If you''ve been watching the news lately you may (or may not have) heard about a significant amount of human rights abuses occurring in Zimbabwe relating to the mining and manufacture of diamonds. These diamonds have been exported as valid Kimberly Process (KP) ''conflict-free'' material and this has generated a lot of concern at actually how effective the Kimberly Process has been at actually guaranteeing diamonds are not sourced from areas of human rights abuses. Industry expert Martin Rapaport states: “Tens of thousands of carats of blood diamonds are now in dealers’ inventories and jewelers’ showcases — and are being actively sold to consumers....Instead of eliminating blood diamonds, the KP has become a process for the systematic legalization and legitimization of blood diamonds.”



How to handle this:



1. Ask where your diamonds are from. Ethically and human rights conscious diamonds importers will know the exact source of their diamonds. Demand that your diamonds are not sourced from Zimbabwe.



2. If you are very concerned about abuses, purchase diamonds mined from Canada or Russia with documents stating the exact source of the diamond.



Thanks,


--Joshua

Joshua- I''m sure your heart is on the right place, but this is horrible advice as it implies some very honest sellers are less than ethical based on information they can''t possibly supply.

It is taking the onus of ensuring conflict free diamonds and putting it on the shoulders of the retail sellers.

As has been pointed out, it''s not possible to guarantee that any particular diamond came from any particular mine unless one actually saw it mined.

This means that virtually NO retail sellers can state with certainty where their diamonds were mined.

The only possible answer an honest dealer or retail seller can have is that they use well established sources that guarantee they are not selling conflict diamonds.

How can Canadian diamonds be ''guaranteed'' to be from Canada- again, unless one actually saw it mined, and kept watching it while it was polished sorted etc....

Do you not think that Russia also experiences a lot of corruption?

We carry a lot of diamonds from Russia- and also make sure to only buy from well established sources that guarantee conflict free- but in reality, there''s simply no way to guarantee that everyone mining these diamonds was fairly treated.

David,
It''s hard to prove the certainty of where a particular diamond was mined, I will agree with you on that. There are dishonest people who may sell a diamond from Russia that really was sourced from Zimbabwe. You cannot catch all the cheaters. But you can make a best effort to be educated and assertive on your rough supply. This all depends on your relationships with your suppliers. Your auditing of your suppliers. Your trust in your suppliers.

Canada has very stringent regulation on the production and documentation of their diamonds, so if the rough is papered from Canada it''s a pretty good bet it''s from Canada. Again this is dependent on your relationship and auditing of your suppliers.

However, saying it''s not possible to know where your diamonds are from is I believe unethical. Maybe you''re not 100% certain, but you should be able to say with confidence where your supplier gets most of his/her material and take an active role to demonstrate and audit this fact. I know many manufactures and vendors that can say with great confidence what the source of their particular rough was.

It''s our responsibility as retail jewelers to give our customers honest information, and
Corporations and retailers are responsible for the ethics and conduct of their suppliers. Mattel learned this lesson with Chinese manufactured toys containing lead.

--Joshua

 

[serenitydiamonds]

Date: 3/3/2010 4:37:15 PM
Author: Rockdiamond
good points yssie- I''m also curious to know how sellers of Canadian diamonds guarantee they are , in fact, mined in Canada.

The Canadian Diamond Code of Conduct:

http://www.canadiandiamondcodeofconduct.ca/images/Code_EN_Jan_06_FINAL.pdf

--Joshua

 

[denverappraiser]

Date: 3/3/2010 4:37:15 PM
Author: Rockdiamond
good points yssie- I'm also curious to know how sellers of Canadian diamonds guarantee they are , in fact, mined in Canada.

David,

It is possible to buy diamonds that have been certified as having been mined and cut in Canada. The two big issuers of these documents right now are the Government of the North West territories and BHP Billiton (a large mining company with operations in Canada).

http://www.certifiedarcticdiamond.com/
http://www.canadamark.com/

There are diamonds mined in Canada and cut elsewhere and diamonds mined elsewhere and cut in Canada that wouldn't be eligible for either of these labs and there are companies that prefer to sell stones without the pedigree in order to save the fees and hastle but a customer who buys a stone accompanied by either of the above documents can be confident that their stone is of Canadian origin.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[Rockdiamond]

Thank you for the information gentlemen!

I''m sure we all agree that it''s still very important for consumers to make sure they are dealing with ethical legitimate sellers.
As we know, laser inscriptions cost very little and are not a guarantee of identification


The main aspect which I find to be incorrect is Joshua''s assumption that sellers need to know specifically where the diamonds they sell are mined to operate ethically.

 

[diagem]

Date: 3/3/2010 1:23:44 PM
Author: Regular Guy
Rappaport, a major figure, did only just resign from the World Diamond Council, associated with Kimberly, within the last bunch of weeks.

I already expressed my opinion on this matter so I''ll sit out on this one...

But I would like to add/show the other side of the coin on your above comment Ira.

Rap is a great guy and I know him personally but he does sometimes maneuver in

ways...

Another view to Rap''s resignation from the WDC:

"Rap Nyet
There is only one person in the world who can out-rap Rap – and that is Rap himself. Deluding himself of his own importance as just another member of the World Diamond Council (WDC), Martin Rapaport, through his media, first generated the “news” of his pending intention to resign from this body. No public plea was made by anyone for him not to do so. Thus, Rapaport resigned, issuing a press release for the whole world to know. It must be frustrating for Rap that nobody really seemed to care.

It truly is a non-event."...


http://www.idexonline.com/portal_FullEditorial.asp?TextSearch=&KeyMatch=0&id=33588

 

[Rockdiamond]

Ira mentioned that he''d like to see the results of efforts by vendors on this issue- a question for all:
Say a cutter tells the dealer-"these stones are Russian mined and cut"
Say the dealer has every reason to believe the cutter.
If a business wanted to advertise "Russian Origin", how does one back that up?

Thanks for posting this great topic Joshua.

 

[Dancing Fire]

i never understand people worrying about buying conflict diamonds,if you ever stop to think about it we all be running around naked if we stop buying conflict clothes.our cars will stop running because we don't buy conflict gas. yeah.... i can see it now,some gas stations will post a sign saying "our gas is refined from non conflict oil"

 

[yssie]

Date: 3/3/2010 8:40:11 PM
Author: Dancing Fire
i never understand people worrying about buying conflict diamonds,if you ever stop to think about it we all be running around naked if we stop buying conflict clothes.our cars will stop running because we don't buy conflict gas. yeah.... i can see it now,some gas stations will post a sign saying 'our gas is refined from non conflict oil'

laughing out loud

 

[Lula]

Date: 3/3/2010 1:38:07 PM
Author: serenitydiamonds

Date: 3/3/2010 12:29:09 PM

Author: joxxxelyn



This may seem very controversial, or at the very least highly opinionated, but I wouldn't be absolutely devastated/angry/etc. if my stone was a conflict stone. I don't take care to ensure my clothing doesn't come from sweat shops. I don't take care to ensure the food I eat is sustainable. I also believe that even with things like foreign aid, a lot of it gets intercepted by the wrong hands. I guess that means we should stop donating, too. The problems are not as simple as stopping buying blood diamonds because it will not solve the economic desperation that drives these wars.



Of course I don't think it's a good thing that they exist. If you really wanted to change the diamond industry in a meaningful way, you would *have* to bust up the supply limitation and drive down the price to make them less lucrative for rebel armies to possess. Since those regions are so hungry for money, they will turn to any quick commodity to get it. As long as prices are high, collusion will overcome the system and/or drive prices even higher for everyone in the supply chain because of the sheer desperation of that region. You will end up lining the pockets of whoever's in charge of the 'verification process' and still end up with conflict stones. In order to actually enforce something like that, their entire economy, and the diamond industry, would have to be overhauled and I just don't think that's our responsibility. This Kimberly Process exploitation is a perfect example of why. When you try to throw blankets onto a fire, they just burn up with it.

Definitely controversial opinion. I'm not speaking as a vendor at the moment, the following is my opinion. Each person is capable of changing the world, and one person can make a difference. I don't like some large discount retailers labor relations and how they treat local businesses, so I refuse to shop at those places. I look for designers of clothing that don't use sweatshops. Once people stop buying from these vendors, they will disappear and better minded ones will follow.


Breaking up the supply chain wouldn't really cause a drop in prices. The supply of diamonds is not nearly as controlled as before. In fact, diamonds don't possess as high of a market as most other gems as there is tremendous competition at every piece of the supply chain. What would stop abuses of any kind in any business is a well educated consumer who demands that their goods are manufactured with integrity.


The abuses occur because gemstones are a high value item that are easily exploitable by those in power and most customers (>80%) don't ask how they got there. In those places simple resources such as water are treated the exact same way. The diamonds happen to be in a country with major ethics issues. You very seldom hear of people being beaten and murdered for mining other ethical countries, but you do in Zimbabwe.


--Joshua

Great response, Joshua. I love this forum. I've learned a lot. The people are great, But, I have to say, in the year or so that I have been lurking/posting here, I have been stunned and amazed that so many PS members just do not care about the source of their diamonds. And they talk about it openly, like it's no big deal.

I realize that vendors who "select" stones already cut from various levels of middlemen in the industry may have a difficult time verifying where the rough was sourced. Indeed, I would probably doubt the veracity of any assertions these retailers would make that they can guarantee the diamonds they sell are conflict-free. The farther you are away from the source (the mine) and the more levels of middlemen between you and the cutter, the harder it is to guarantee that the cut diamonds you are selling are truly conflict-free, and not just marketed as conflict-free to make the < 20% of us who care about this issue feel better.

But does that mean that it's okay for us as consumers to throw up our hands and say there's nothing that we can do about it, and rationalize it away by saying that if we applied the same standard to clothes or food, that we'd all be naked and starve -- hogwash. That's just an easy way to allow you to live with your head in the sand at the expense of the welfare of others in less fortunate circumstances.

ETA: I went back to the earlier thread that Karl linked above, and found this post by Paul Slegers:
"In buying rough, it is essential for us to recognize the origin. Knowing the origin, we can make predictions about how perceived colour in the rough will turn out after cutting, for instance.

As such, it is rather easy to avoid Zimbabwe-rough, both because it is less desirable as such, and since a few years, because we do not feel at ease with the recent politics of the country."

So perhaps it is not so impossible for those so inclined to truly know the source of the rough. But if customers don't demand it, why would retailers provide it?

 

[purrfectpear]

The bottom line is that some of us just don''t give a flip. No equivocating, no rationalizing, no head in the sand. We all pick our battles. Personally I think it''s rather silly to make a big deal out of conflict diamonds when the world''s largest corporations have no problem buying and selling from China. Can you say human rights?

 

[Lula]

Another rationalization -- thinking of a worse example, so your actions don't seem as wrong.

It's why we can't buy food or kids' toys or diamonds that don't have ethical/safety issues, because people don't give a flip and demand better.