The Executive Committee of the World Federation of Diamond Bourses gathered at the Israel Diamond Exchange in Ramat Gan, Israel, on June 24th, with one of the major issues discussed is the impact of synthetic diamonds on the global diamond industry.
In a special address to the meeting, Mr. Martin Rapaport, Chairman of the Rapaport Group, explained that melee goods have been losing value since January and that there is a serious concern that prices for this category of goods of lower quality and purity will decline further.
WFDB President Ernie Blom said: “The WFDB is not opposed to synthetic diamonds as such on the market. They should, however, always be disclosed so that consumers know exactly what they are buying, and so that there is no confusion between real natural diamonds and lab-grown.
“At the same time, the consumer should be aware that synthetic diamonds will not hold their value over time as their production capacity is unlimited. Unlike diamonds, the value of synthetic diamonds will not be forever and they do not express the same emotion of ever-lasting love and passion.”
The Executive Committee discussed how the trading of synthetic diamonds should be organized in the most appropriate way at WFDB-affiliated exchanges. Currently, the diamond exchanges in India, Israel, and Hong Kong prohibit trading in synthetic diamonds on the floor of their diamond exchanges.
Yoram Dvash, President of the Israel Diamond Exchange and host of the meeting of the ExCo, commented: “In the coming months, diamond exchanges will develop specific communication programs on social media to promote our diamond business. Consumers should be aware of what they are buying as well as what the intrinsic value is of the product they are embracing.
“Through targeted campaigns on social media, it is our intention to clarify the unique selling proposition of natural diamonds to the broadest possible audience.”