Members of the bourse will decide if the synthetic ban is lifted

While we do not disapprove of the synthetic diamond industry, the BDB remains a centre for the trade of natural diamonds, which is why we have had a ban on synthetic diamonds in place since 2015.

The decision to disallow the trading of synthetic products was approved at an annual general meeting following a specific request for it to be put on the agenda by our members.

Over the past four years, numerous media reports have speculated that the BDB may change its policy or lift its ban.

However, our position remains the same: we do not allow the trade of synthetic diamonds on our premises, and in the past we have penalised those who have breached this ban, including lifetime suspension from the bourse.

Any change in this policy would be subject to the will of our members.

Current initiatives

At present, our focus is on preventing the undisclosed mixing of natural and synthetic diamonds. The most important way to achieve this is by improving the accessibility and availability of synthetic diamond detectors.

This equipment is now very reliable and has become an essential tool for diamond traders, and we encourage their use by our members.

The Gemmological Institute of India, which is independent of but in coordination with BDB and the Gem and Jewellery Export Promotion Council, manufactures detection equipment which is available at the subsidised price of $US7,000.

Most of the diamond merchants trading at our bourse use it and every buyer is able to use one to independently check the diamonds again, prior to purchase.

In addition to the detector, the BDB has its own disciplinary committee, and diamantaires are vigilant at every stage in verifying the diamonds.

With undisclosed diamond mixing becoming more commonplace, transparency must be the priority across the whole diamond supply chain.

A diamond’s information should not only be available to the trade, but also to members of the public. Total transparency is key.

Changes in the future

The Natural Diamonds Monitoring Committee (NDMC) is an Indian all-trade body formed in 2012.

Its purpose is to monitor the proliferation of synthetic diamonds and the undisclosed mixing of synthetics with natural diamonds. It also drafts regulations in relation to these issues.

Soon, the NDMC will provide new and updated recommendations on synthetic diamond trading.

These will be available to the general body of BDB members who can then vote to reverse or maintain the existing policy.

Any decision made before the NDMC forms clear guidelines and rules would be premature.

The WFDB allows each bourse to make autonomous decisions on this matter as long as natural and synthetic diamonds are properly differentiated, with clear and accurate descriptions on all invoices and documents.

Addressing the problems

At present, there are approximately 100 traders dealing in synthetic diamonds in Mumbai, as opposed to the 5,000 members of the BDB trading in natural diamonds.

It is clear that the natural diamond market has significantly slowed and margins are under pressure; this may be attributed to overtrading and a misunderstanding of the true market demand.

Reducing the production and supply of rough could correct this imbalance, and we at the BDB are also trying to counter this downturn with promotional activities.

We are also in discussion with government bodies as to which steps we can take to support our members.

However, lifting the ban on trading synthetic diamonds will not solve these underlying problems in the natural diamond market.

As stated previously, the BDB is accountable to our members and their business requirements, and they hold the power to change the existing policies – just as they voted for the ban in 2015.

'The Great Diamond Debate' Contents » 

	Ensuring the terms of battle are truth and fairness Coleby Nicholson, managing editor of Jeweller
	Navigating change: how 2019 shaped the diamond debate Arabella Roden, assistant editor of Jeweller
	Making the call for total transparency and trust Jean-Marc Lieberherr, CEO of the Diamond Producers Association
	Sustainably created: that is the future of diamonds Martin Roscheisen, CEO of Diamond Foundry
	Sustainability and gem tracking have arrived in force Russell Shor, senior industry analyst at the Gemological Institute of America (GIA)
	Questioning the ethics of synthetic diamonds Martin Rapaport, founder of Rapaport Group
	Keep your diamonds transparent to avoid misleading consumers Ernie Blom, president of the World Federation of Diamond Bourses (WFDB)
	Synthetic, created, lab-grown: What should we call these diamonds? Paul Zimnisky, independent diamond industry analyst and consultant
	Is the ostrich finally lifting its head out of the sand? Dror Yehuda, president of Yehuda Diamond Company
	The industry must support natural diamonds Boaz Moldawsky, chairman of Israel Diamond Institute
	The natural diamond industry is facing disruption in every aspect Sergey Ivanov, CEO of Alrosa
	Don’t blame synthetic diamonds for the natural industry’s woes Garry Holloway, founder of Melbourne’s Holloway Diamonds
	Important lessons have been learnt from the first year of Lightbox Sally Morrison, chief marketing officer at Lightbox Jewelry
	Retailers, it’s time to follow the leader – your customer Marty Hurwitz, CEO of MVI Marketing
	Both sides of the diamond debate should verify their claims Danielle Max, editor in chief IDEX Online
	Fighting for the hearts and minds of diamond desire Alan Bronstein, president of the Natural Color Diamond Association
	Deconstructing the next great jewellery-consuming generation Jonathan Kendall, president of De Beers Group Industry Services
	The consumer conundrum: ‘Should I buy a lab-grown or natural diamond?’ Jimmy DeGroot, jewellery retail training specialist and speaker

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