MANY MAN MADE DIAMONDS WERE SNUCK IN AS NATURAL DIAMONDS.
We are renowned diamond dealers who have been deeply immersed in this industry for quite a while. Over the years, as we conducted business, we have encountered or been involved in "unique" incidents and situations, whether we wanted to or not. This article aims to reveal the hidden side of diamond history that few outside the diamond supply chain are aware of.
These stories are important to us, as they deserve to be known to our valued customers and readers. You will likely gain a better understanding and appreciation of the diamond business from our stories. As a precaution against possible legal disputes, we will not be using real identities. We will, however, faithfully detail the other details as they occurred.
NOW TO BREAK THE SILENCE
A strong sense of something major was at work among global diamond wholesalers four years ago. We soon learned more substantial and detailed information through a connection we had with the Diamond Wholesaler Conglomerate. For those unfamiliar with the diamond world, the Conglomerate is kind of a big deal; like OPEC, the Conglomerate determines and fixes diamond wholesale prices. They serve as a vital link in the diamond supply chain; diamond miners, cutters, polishers, exporters, importers, and wholesalers all depend on them for direction. Consequently, any news they provided had to be credible.
What was causing everyone to feel uneasy? According to rumours, the largest diamond wholesaler in the world, based in Russia, was engaging in fraud that was of immense proportions.
During the time this event took place, lab grown diamonds had been available on the market for more than 19 years; however, they had a tiny share of the market and weren't very popular with consumers, partly because they were yellow and would cost as much as mined diamonds. The situation, however, would not remain the same for much longer. A bombshell exposé four years ago revealed that the largest Russian diamond wholesaler had been involved in a massive fraud operation that entailed hundreds of thousands of lab-grown colourless (white) diamonds being passed through the most reputable laboratory in the world. In the past, lab grown diamonds were considered to be yellow; therefore, the laboratory was unable to recognize them as lab grown diamonds, unknowingly increasing their market value.
The Russian wholesaler made massive profits through the switch to lab grown diamonds and flooding the market with diamonds that are almost indistinguishable from mined diamonds. Upon realizing something was wrong, the certification lab notified the Conglomerate, and the operation was terminated immediately.