Meeting at the CIBJO Congress in Moscow, the Diamond Commission decided to advance a proposal that, henceforth, the CIBJO definition of a diamond would also have the following addition: “a diamond is a mineral which has been formed completely without human interference. It may be subsequently cut and polished.”

CIBJO’s position is that diamonds, which are sold without any qualifier, can be assumed to have been formed in nature.

The session of the Diamond Commission, which followed a comprehensive seminar on synthetic diamonds, which had been organised by Diamond Commission President Udi Sheintal.

Synthetic diamonds, therefore, need to be disclosed as such. Article 3.7 of CIBJO’s Diamond Book states: “The fact that a synthetic diamond is wholly or partially synthetic shall be disclosed. Only the term ‘synthetic,’ ‘laboratory-created’ or ‘laboratory-grown’ shall be used to describe synthetic diamonds and these terms shall be equally as conspicuous and immediately precede the word ‘diamond.’”

Meanwhile, the Commission also considered the issue that changes were needed in the Blue Book regarding coloured diamonds, since they are becoming increasingly popular for investment purposes and their descriptions should now be stated in the diamond book.

Deputy Commission President Harry Levy explained that terms regarding colour hues of coloured diamonds were not universally accepted and understood. “Consequently, there is no price list or guide for buyers as to how much they should be paying. We have heard complaints that the profit margin is as much as a factor of 10. Bringing order to the issue would help create a price list.”

The Commission also considered the issue of custom tariffs where officials are using the same tariff for natural and synthetic stones since there is no separate tariff for synthetics. “This could theoretically lead to a situation where someone might say that natural stones and synthetics are the same because the customs charge is the same for both,” Levy explained.

Meanwhile, Commission President Udi Sheintal told delegates that Steering Committee members decided to change the title of the Blue Book to The Diamond Book, and the proposal was accepted by members.

Sheintal said that the terms Treated diamonds and Treated would be left in the book.

In addition, the Commission accepted a proposal by Ronnie Bauer from Australia that the diamond blue book should include a term called Laser Inscription regarding the laser inscription of diamonds. Bauer’s proposed definition was accepted as follows: “The process of using a laser to inscribe letters, symbols, logos and numbers on the girdle or facets on a diamond.”

Photo Caption: Udi Sheintal, President of the CIBJO Diamond Commission.

A range of speakers provided delegates with a deep understanding of the issue of lab-grown or synthetic diamonds. The event was coordinated by the CIBJO Diamond Commission, and moderated by Ronnie Vanderlinden, President of the Diamond Manufacturers and Importers of America (DMIA). He opened the event by saying that there was nothing against trading in synthetics as long as they were openly disclosed.

Although the issue has received great media attention in the past couple of years due to the mixing of synthetic stones into parcels of melee, Mr. Vanderlinden reminded the audience that it was not a new topic and had been around for about 50 years.

“There is no need to fear lab-grown diamonds,” he said. “They will be part of our lives in the future as diamond mines become depleted. He said that litigation would not be successful in the area of synthetics and called for greater communication between the synthetic diamond sector and its naturally mined stones counterpart.

Vanderlinden introduced Russian scientist Dr. Andrey Katrusha, an expert in the field of lab-grown diamonds who spoke about the different production methods – HPHT and CVD. He said the costs of both methods were similar as were the profit levels from both. He commented that the process was already very efficient and within several years was likely to become at least 10 times as efficient.

Dr. Katrusha pointed out that most of the lab-created production was aimed at industrial usage. Furthermore, he said that annual production could reach 2 million carats per year with factories being set up in China.

The next speaker was Dr. Simon Lawson, of De Beers Technologies UK, who told delegates that the diamond miner has been involved detection technology research for 30 years and that the aim of creating detection machines was to maintain consumer confidence.

Dr. Lawson  said that, technically speaking, it was still difficult to create a perfect colourless diamond since there are often metallic inclusions.

He said the key features of lab-grown diamonds were fluorescence and striations, with a “terrace” effect on the surface of the stones.

He said the machines that De Beers had produced for synthetic detection were DiamondSure, DiamondView and DiamondPlus, and that his division works closely with Element 6 in order to produce the most effective detection devices.

De Beers has also produced the Automated Melee Screening (AMS) machine for small diamonds of 0.10 to 0.20 carats. The firm is making them available to Diamond Trading Company Sightholders this year and to the Forevermark lab in Antwerp.

Dr. Lawson said the pass rates for detection using the AMS machine were 98 percent for 10 point stones, 97 percent for five-pointers, and 96 percent for one-pointers.

The next speaker was CIBJO Pearl Commission President Ken Scarratt who is GIA Managing Director for South East Asia. He said the GIA developed and produced its DiamondCheck machine because it found that previously too many diamonds were being referred for further checking. Among the advantages of the machine were that there are fewer “false referrals” and the device can also detect non-diamonds.

Speaking on the development of lab-created diamonds, Scarratt said the past decade had seen a big improvement in the ability of manufacturers to create higher colours and clarities as well as in producing a large range of coloured stones.

Presenting the legal aspect regarding lab-grown diamonds was Suzan Flamm, Senior Counsel at the U.S. Jewelers Vigilance Committee (JVC). She pointed out that the words diamond and synthetic are clearly defined terms under the U.S. Federal Trade Commission jewellery guides. She explained that synthetic stones must be qualified with words such as “lab-grown” or “lab-created” or “(manufacturer’s name) created diamond”.

Failure to disclose the lab-created nature of a stone can be regarded as a breach of contract and warranty. It is also a deceptive trade practice.

Not knowing that a stone is synthetic is no defence under U.S. law and under the country’s Lanham Act, compensation can be awarded. Because a criminal violation requires proof of intent to defraud a client, prosecutors are more likely to seek a civil remedy such as breach of contract. Ms. Flamm advised diamantaires to be responsible for goods they sell and to be completely aware of its nature.

Jean-Pierre Chalain, director of the diamond department at the Swiss Gemmological Institute (SSEF) presented the Automated Diamond Spectral Inspection (ASDI), which is a device which can analyse very large quantities of melee diamonds at low cost. It is able to identify colourless synthetic diamonds, as well as diamonds that have been colour treated, and can bulk test 4,000 stones per hour.

Photo Caption: The main podium of the Synthetic Diamond Conference, which highlighted the first day of the CIBJO Congress.

The harmonisation of CIBJO’s Coloured Stone Blue Book with its Pearl and Diamond counterparts along with the promotion of Trade Codes was at the centre of the work of the Coloured Stone Commission over the past year, members heard.

There are continuing efforts to improve the harmonisation of definitions and terms in the Gemstone, Diamond and Pearl Blue Books, Coloured Stone Commission President Nilam Alawdeen told the Commission meeting. He thanked Gerard Grospiron, and Sector A President Roland Naftule for their efforts in bringing about increased harmonisation.

The commission’s meeting heard about the many new suggestions and recommendations made since the 2013 CIBJO Congress.

Commission President Alawdeen reported that most of the new definitions, and changes were adopted at the commission’s meeting, while others would be further considered.

“Together with the issue of Trade Codes, harmonisation was the main issue that our Commission members spent most of their time discussing,” Alawdeen told the meeting.

On the issue of Trade Codes, Alawdeen explained that members of the gemstones and jewellery trades are required to give full disclosure on treatments, but that this is sometimes not practical to supply on invoices and jewellery tags.

The use of alphabetical codes originally developed by the American Gem Trade Association (AGTA), and more recently adopted by CIBJO allows the trade to more efficiently fulfil that responsibility. “If the buyer and seller understand the codes, then they can be simply stated on the invoice and/or jewellery tag. These codes are intended for use only within the trade. Except for the members of AGTA, these codes are not being used most of the time worldwide.

“In Japan, where I am based, we hope to promote and recommend the use of the trade codes. We hope and encourage t the CIBJO country delegations will do the same in promoting their use among their members,” he added.

Speaking on the issue of the Trade Codes, Sector A President Roland Naftule said the problem of disclosure could cause critical problems relating to consumer confidence. “It is vital that all members of the trade give full details about items being sold to consumers in order to maintain consumer confidence and our reputation.

“The codes need to be used all the way from the miners to retailers so that everyone has full information,” he added.

Speaking on the issue of the Trade Codes, Sector A President Roland Naftule said the problem of disclosure could cause critical problems relating to consumer confidence. “It is vital that all members of the trade give full details about items being sold to consumers in order to maintain consumer confidence and our reputation.

“The codes need to be used all the way from the miners to retailers so that everyone has full information,” he added.

The meeting also heard members debating issues relating to emerald and ruby treatments and jadeite.

Photo Caption: The Coloured Stone Commission in session.

“CIBJO gets its mandate from its members, which for the most part are national associations representing the very grass roots if the industry in their respective countries,” said CIBJO President Gaetano Cavalieri, in his opening address to the CIBJO Congress. “We are open to the participation of all relevant people and companies, be they large or small, and our mission is to defend their interests and also the interests of our consumers, without whose trust none of us could survive.”

The following is the full text of his address to the Congress:

Welcome to Russia and welcome to Moscow.

For many of us in this room, less than 25 years ago the very concept of us gathering together in this location together, here in Moscow, would have seemed almost impossible.

I, and many of you, were born into world that was separated by walls and borders that few could cross, where communication was difficult and where the opportunity of knowing, working together and doing business with people on the other side was extremely limited.

But, when the barriers that separated East from West came crashing down at the end of the 1980s, many of our misconceptions about our counterparts on the opposite side fell away at the same time. And what we discovered was that, not only is the love of jewellery universal, for us in the jewellery business it is a common language. Indeed, if CIBJO has got anything to do with it, it is language with a common vocabulary, or nomenclature, and a common grammar.

This is an unusual setting for a CIBJO Congress, but a most appropriate one. As many of you already know, we are seated above one of the largest jewellery manufacturing facilities in the world. In so many ways can be a considered a symbol of the new Russia.

The Russian jewellery tradition, of course, did not begin with the end of the Cold War. It has an illustrious history dating back many hundreds of years, and was developed not only as part of this nation’s cultural and artistic tradition, but also because it is blessed by an incredible array of natural wealth, ranging from gold, palladium and silver, diamond deposits and a rich variety of coloured gemstones.

But over the course of the past 20 years the Russian jewellery industry has flourished, drawing on its long history and tradition, while at the same time releasing a spirit of creativity and entrepreneurship. The results of this rebirth can be found in the display cases around us, and in the women and men who work each day in the floors of the facility below us.

The gentleman who is a responsible for creating this massive enterprise, in an impressively short period of time, is also the Chairman of the Russian Jewellery Guild, our host in Moscow over the coming three days. I would like to pay tribute to Gagik Gevorkyan and to thank him and his staff for their hard work and hospitality. We are most grateful.

In particular, I would like to thank Artak Udumyan, who has coordinated the organisation of this congress, and who has worked closely with us over the past year to make it possible. With him is a whole team of managers, workers and volunteers, some of whom you may have met, but many who have worked and continue to work behind the scenes. I thank all of you.

Russia is one of the BRICS country, that club of nations that is driving the growth not only the luxury product industries, but of the world economy in general. We do not always know the venue of our next congress, but this time we do, and it will be another of the BRICS, Brazil in South America, and more specifically the city of Salvador in the State of Bahia.

We have a large delegation from Brazil with us in Moscow today, who are no doubt studying closely. Among them is Mr. Rafael Valverde, Superintendent of Industry and Minerals of the State of Bahia, and the personal representative of His Excellency Jaques Wagner, Governor of the State of Bahia. Also present is Mr Hecliton Santini Henriques, President of IBGM, who will be our host in Brazil next year, and Karina Sena, President of the Bahia association of jewellery precious gems and metals.

We have a very tight programme this morning and my intention is to keep my remarks briefs. It is important, however, that I emphasise the role of CIBJO in the world industry today and, in particular, our obligation to represent the interests of all participants and stakeholders in our industry, at all levels of the chain of distribution and in all geographic locations.

CIBJO gets its mandate from its members, which for the most part are national associations representing the very grass roots if the industry in their respective countries. We are open to the participation of all relevant people and companies, be they large or small, and our mission is to defend their interests and also the interests of our consumers, without whose trust none of us could survive.

Ours is an industry that traditionally has been comprised of predominantly smaller companies, many of which are family owned. CIBJO provides them a forum where they can rally together, and draw strength from one another as a community with similar attributes and challenges.

In the jewellery industry, like in other business sectors, the position of the smaller and medium sized enterprise has eroded in recent years. One may argue that this is result of economic forces, created by a market that is becoming globalised, where economies of scale are always increasing.

That may be, but what may be more acceptable in other, more heavily industrialised business sectors is not always appropriate for jewellery, where the principles of individualism and personal creativity are so critically important.

CIBJO not only insists, but will do all that it can to ensure that the playing field in the jewellery sector remains level for all participants, be they large or small. We cannot accept a situation where the conditions for entry are artificially manipulated so that the cost of participation is restrictively expensive.

Our commitment to responsible business practices and Corporate Social Responsibility is absolute, and we insist that they be applied and implemented by all individuals and companies that are active in our business. But we refuse to accept a situation by which ethical and upstanding members of our trade are unable to compete fairly because that they cannot afford or are structurally unable to implement the systems that are imposed upon them.

There is a growing tendency of players in our industry, sometimes private companies, to lobby government and other international organisations to enact legislation or regulations that say are intended to protect the chain of distribution. These players represent themselves — not the industry as a whole and certainly not the international business. That is the role of elected representatives, like the national organisations and by association CIBJO.

It has been reported in the international press that a side meeting will shortly be taking place in just a few days in Paris, where certain industry members, mainly large companies, will be discussing how the jewellery industry could contribute to establishing new OECD due diligence guidelines on precious stones. I would like to stress that CIBJO, as the leading representative of national associations from our industry around the world, should have been consulted. We were not. Neither were the African producing countries or Russia, which together represent almost 90 percent of world diamond production.

Let me stress, we do not have  a problem with companies acting in their own interest, but do we have a problem when it is in conflict with the general interest, which is the one that in the jewellery industry we democratically and legitimately represent, and in the diamond producing industry the African mining countries and Russia legitimately represents.

Although we understand and sympathise with the rationale of conflict mineral initiatives, the effects of poorly conceived legislation or regulations can be devastating.

For example, one of the consequences of the conflict minerals clause in the Dodd-Frank Act in the United States is companies avoiding legitimate gold producers in the Great Lakes region of Africa.

They avoid them because they  because there are alternatives sources of supply, which are less cumbersome when it comes to Dodd-Frank compliance.

Let me stress, those who are paying the steepest price for the ill-conceived legislation are not the jewellers, but the stakeholders. And they are people and entire communities living in some of the most economically under-developed areas of Africa.

We certainly do not suggest that anyone does not comply with national law, but there are also humanitarian concerns, which is something that, we, as an organisation with special United Nations status, is very aware of. We have committed to the UN development programme and that means that nobody can be left behind.

CIBJO has a voice, and it can and has been heard. In Europe, for example, where there is a legislative effort underway to parallel Dodd-Frank, CIBJO’s EU Committee has had discussions in Brussels with the European Commission, and it appears that the law that will be passed by the European Parliament will have fewer unintended consequences than the one that was passed in the United States.

We have a few days of intense discussions ahead of us,  but as we have shown in the past the significance of what happens here can be critical to the future of our industry.

On the agenda is range of topics, including those that I have discussed, but there also os synthetic diamonds and their effect on the market, jewellery advertising standards, our industry’s carbon footprint, the different CIBJO Books and many more.

May our deliberations be in-depth, meaningful and transparent.

CIBJO’s commitment to responsible business practices and Corporate Social Responsibility is absolute, said CIBJO President Gaetano Cavalieri in his address to the Opening Session of the CIBJO Congress 2014 in Moscow. “We refuse to accept a situation by which ethical and upstanding members of our trade are unable to compete fairly because that they cannot afford or are structurally unable to implement the systems that are imposed upon them, he stated.

Dr. Cavalieri Cavalieri vigorously defended the need for fairness in the jewellery industry. “CIBJO not only insists, but will do all that it can to ensure that the playing field in the jewellery sector remains level for all participants, be they large or small. We cannot accept a situation where the conditions for entry are artificially manipulated so that the cost of participation is restrictively expensive,” Dr. Cavalieri said.

CIBJO’s commitment to responsible business practices and Corporate Social Responsibility is absolute, and the organisation insists  that they be applied and implemented by all individuals and companies that are active in the jewellery business, Dr. Cavalieri said.

But, he added: “There is a growing tendency of players in our industry, sometimes private companies, to lobby government and other international organisations to enact legislation or regulations that say are intended to protect the chain of distribution. These players represent themselves — not the industry as a whole and certainly not the international business. That is the role of elected representatives, like the national organisations and, by association, CIBJO.”

Referencing a meeting that is scheduled to take place in Paris in several days time, where several industry members, most of whom represent larger companies, reportedly plan to discuss how the jewellery industry could contribute to establishing new OECD due diligence guidelines on precious stones, Dr. Cavalieri noted: “I would like to stress that CIBJO, as the leading representative of national associations from our industry around the world, should have been consulted. We were not. Neither were the African producing countries or Russia, which together represent almost 90 percent of world diamond production.

“We do not have  a problem with companies acting in their own interest, but do we have a problem when it is in conflict with the general interest, which is the one that in the jewellery industry we democratically and legitimately represent, and in the diamond producing industry the African mining countries and Russia legitimately represents,” Dr. Cavalieri stated.

Although CIBJO understands and sympathises with the rationale of conflict mineral initiatives, it is important to point out that poorly conceived and improper legislation or regulations can be devastating, Dr. Cavalieri said.

“One of the consequences of the conflict minerals clause in the Dodd-Frank Act in the United States is companies avoiding legitimate gold producers in the Great Lakes region of Africa,” he said. “They avoid them because there are alternatives sources of supply, which are less cumbersome when it comes to Dodd-Frank compliance.

“Let me stress, those who are paying the steepest price for the ill-conceived legislation are not the jewellers, but the stakeholders. And they are people and entire communities living in some of the most economically under-developed areas of Africa,” said Dr. Cavalieri, who noted CIBJO’s commitment to the United Nations development programme as an organisation with special consultative status in the UN Economic and Social Council (ECOSOC).

“CIBJO has a voice, and it can and has been heard,” Dr. Cavalieri emphasised. In Europe, he reported, where there is a legislative effort underway to parallel Dodd-Frank, CIBJO’s EU Committee has had discussions in Brussels with the European Commission, and it appears that the law that will be passed by the European Parliament will have fewer unintended consequences than the one that was passed in the United States.

Speaking to the congress, Eli Izhakoff, CIBJO’s Honorary President, called on the confederation to initiate the creation of a common position among the leading industry organisations. “I have always found the unity is strength,” he said. “It is always easy to say ‘No’, but it is much more difficult to say ‘Yes’.”

Mr. Izhakoff called on the CIBJO President to meet with World Federation of Diamond Bourses President Ernest Blom; Maxim Shkadov, President of the International Diamond Manufacturers Association, and the newly elected President of the World Diamond Council, Edward Asscher.

“There is a division in the industry, and it is imperative that we bridge gaps. Hopefully, by the end of the World Diamond Congress

Russian Finance Minister Anton Siluanov delivered the opening address of the 2014 CIBJO Congress 2014, which commenced this morning at the Russian Jewellery Guild in Moscow. Speaking to a crowd of 300 industry members, he paid tribute to the World Jewellery Confederation, and particularly to its work relating to the harmonisation of standards, promoting Social Corporate Responsibility and maintaining consumer confidence.

“CIBJO’s work is very important to the development of the international jewellery industry and we believe that it can also help the Russian jewellery trade as well,” said Mr. Siluanov. He said the Russian government was already discussing legislation relating to diamonds and coloured stones and that CIBJO standards could be included in the proposed laws.

In his address to the opening session, CIBJO President Gaetano Cavalieri vigorously defended the need for fairness in the jewellery industry. “CIBJO not only insists, but will do all that it can to ensure that the playing field in the jewellery sector remains level for all participants, be they large or small. We cannot accept a situation where the conditions for entry are artificially manipulated so that the cost of participation is restrictively expensive,” Dr. Cavalieri said.

“Our commitment to responsible business practices and Corporate Social Responsibility is absolute, and we insist that they be applied and implemented by all individuals and companies that are active in our business. But we refuse to accept a situation by which ethical and upstanding members of our trade are unable to compete fairly because that they cannot afford or are structurally unable to implement the systems that are imposed upon them,” he continued.

“There is a growing tendency of players in our industry, sometimes private companies, to lobby government and other international organisations to enact legislation or regulations that say are intended to protect the chain of distribution. These players represent themselves — not the industry as a whole and certainly not the international business. That is the role of elected representatives, like the national organisations and, by association, CIBJO.

Referencing a meeting that is scheduled to take place in Paris in several days time, where several industry members, most of whom represent larger companies, reportedly plan to discuss how the jewellery industry could contribute to establishing new OECD due diligence guidelines on precious stones, Dr. Cavalieri noted: “I would like to stress that CIBJO, as the leading representative of national associations from our industry around the world, should have been consulted. We were not. Neither were the African producing countries or Russia, which together represent almost 90 percent of world diamond production.”

“We do not have  a problem with companies acting in their own interest but do we have a problem when it is in conflict with the general interest, which is the one that in the jewellery industry we democratically and legitimately represent, and in the diamond producing industry the African mining countries and Russia legitimately represents,” Dr. Cavalieri stated.

Although CIBJO understands and sympathises with the rationale of conflict mineral initiatives, it is important to point out that poorly conceived and improper legislation or regulations can be devastating, Dr. Cavalieri said.

“One of the consequences of the conflict minerals clause in the Dodd-Frank Act in the United States is companies avoiding legitimate gold producers in the Great Lakes region of Africa,” he said. “They avoid them because there are alternatives sources of supply, which are less cumbersome when it comes to Dodd-Frank compliance.

“Let me stress, those who are paying the steepest price for the ill-conceived legislation are not the jewellers, but the stakeholders. And they are people and entire communities living in some of the most economically under-developed areas of Africa,” said Dr. Cavalieri, who noted CIBJO’s commitment to the United Nations development programme as an organisation with special consultative status in the UN Economic and Social Council (ECOSOC).

“CIBJO has a voice, and it can and has been heard,” Dr. Cavalieri emphasised. In Europe, he reported, where there is a legislative effort underway to parallel Dodd-Frank, CIBJO’s EU Committee has had discussions in Brussels with the European Commission, and it appears that the law that will be passed by the European Parliament will have fewer unintended consequences than the one that was passed in the United States.

Speaking to the congress, Eli Izhakoff, CIBJO’s Honorary President, called on the confederation to initiate the creation of a common position among the leading industry organisations. “I have always found the unity is strength,” he said. “It is always easy to say ‘No’, but it is much more difficult to say ‘Yes’.”

Mr. Izhakoff called on the CIBJO President to meet with World Federation of Diamond Bourses President Ernest Blom; Maxim Shkadov, President of the International Diamond Manufacturers Association, and the newly elected President of the World Diamond Council, Edward Asscher.

“There is a division in the industry, and it is imperative that we bridge gaps. Hopefully, by the end of the World Diamond Congress