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| Gems and Jewelry |
Moral Origins
Jill Newman
04/01/2004
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Sea Change
Diamonds are a potent symbol of love, commitment and success.
Americans spent $27.4 billion on diamond jewelry in 2002, and the dollar volume
is rising. Over the past few years, however, widespread controversy over the
origin and treatment of stones has affected demand. Buyers are increasingly
eager to avoid “conflict” diamonds—those sold on the African or Asian black
markets to fund brutal rebel armies and terrorists. Meanwhile, sophisticated
diamond enhancements have emerged that can make a mediocre stone appear flawless
to the naked eye, and technologies used to grow diamonds in the lab have become
so advanced that, in some cases, these clones can hoodwink experts.
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THE DIAVIK Diamonds Project is positioned in the middle of a fragile Arctic
ecosystem. |
These
distressing developments have prompted considerable changes in an industry that
has operated much in the same fashion for generations. Some of its strategic
moves may not be obvious to shoppers who simply want the best, brightest and
biggest stones money can buy. Others provide tangible benefits, such as a
greater selection of branded stones coming from some of the world’s leading
diamond miners and traders, who are coming out from behind the scenes to sell
directly to the public.
One of the biggest transformations in the diamond
trade is the emergence of vertically integrated businesses, in which a company
owns everything from the mine to the retail showroom. Vertically integrated
businesses give today’s diamond merchants greater control over their supply.
They know the mine and country of origin, and they can track stones from their
inception, thereby ensuring that their diamonds are not treated or fake. Also,
it can cut out the middleman in many cases, reducing costs and ultimately
bringing greater value to the customer.
Also, diamond supplies today are more
numerous than in the past. DeBeers once controlled the lion’s share of rough
diamonds. Today, however, diamonds come from a wider array of sources, including
mines in Russia and Angola. The new Canadian mines are just beginning to realize
the fruits of years of development efforts.
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