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The insider story of Lab Grown Diamonds
Jan 23, 2021
The insider story of Lab Grown 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.



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.

The insider story of Lab Grown Diamonds


In common with countless audacious scams and frauds, this one flourished due to the vulnerability of the system, which they exploited to achieve such unprecedented profit.

The question is: how did they repeatedly and deliberately deceive the world's most prestigious diamond certification organization over an extended period of time? As obvious as it may seem, there is a straightforward scientific truth behind this question:

Down to the last atom, mined diamonds are EXACTLY the same as lab grown diamonds!

Is that all there was to the scheme? Of course not! We will reveal all as promised, so don't worry!

During that time, a major Russian wholesaler was regularly sending diamonds, mined, of course, to the trustworthy laboratory to be certified. In order to test the waters, they gradually introduced some clear lab grown diamonds, waiting to find out whether the laboratory was any wiser. It became apparent to the Russian wholesaler that the most advanced diamond certification lab could not tell the difference between lab grown diamonds and mined diamonds. In response to the fact that lab grown diamonds can now be made clear, rather than the ubiquitous yellow colour, the wholesaler began mixing lab grown diamonds into their regular shipment in earnest and in scale in order to take full advantage of this development.



How was this scheme ultimately brought to an end? Why was such a seemingly foolproof and sophisticated operation discovered and subsequently exposed?

In order to fully understand how they were discovered, we must briefly review some math and science.

In all cases, man-made diamonds are of "Type IIA". This label indicates that since the stones are made under fully controlled conditions with precise parameters, they are never exposed to oxygen, which means there is no oxidation of the diamond's chemistry. It is important to note, however, that such coveted oxidation-free diamonds are extremely rare in nature, with only about 2-5% of mined gem-quality diamonds eventually receiving the prestigious "Type IIA" label. This fixed rarity was critical to unravelling the Russian operation.

Man made diamonds becoming more frequently certified as mined diamonds caused discrepancies in probability, and suspicion was raised.

When the lab observed that there were simply too many "Type IIA" diamonds originating from just one individual supplier, the sheer quantity of this high grade originating from just one place was statistically impossible. The diamond industry was shaken to its foundation by the revelations of the investigation into the matter.

There is no way to determine how many lab created diamonds have been certified as natural and are available on the market, but the Russian company was immensely profitable, so the number must have been substantial.



As the claims seemed so unbelievable and far-fetched, everyone questioned their validity at first.

Our company, being one of the leading diamond companies, ultimately received a confirmation of the rumours from the Conglomerate when they presented us with an action plan. This confirmation forced us to cease all business and communication with the Russian wholesaler since they were now permanently banned from the entire diamond industry for life.

As a result of this covert operation, lab grown diamonds have risen to prominence from the background. The quality of lab grown diamonds has improved to the point where they are indistinguishable from natural diamonds and, in some cases, even exceed their quality. In other words, man made diamonds could no longer be considered second-class gems. A year would pass before the first legitimate lab grown gemstones became available to the general public.



A scandal of this magnitude has dealt the mined diamond industry a crippling and permanent blow. As of now, there is already a large number of man made diamonds in active circulation that were certified and sold as natural diamonds. Further, even the world's most prestigious lab could not identify lab-grown diamonds from mined stones, which led to countless undetected stones slipping through their fingers and flooding the market.

The scandal embarrassed and financially ruined those in the diamond mining industry, so efforts were made to cover up the scandal, at least to save face.


Transparency and openness are our core principles. We tell our customers everything we know about the industry. We believe it is our duty to provide them with deep and uncensored insights about the industry that no one else can openly offer.

Novita Diamonds is committed to the planet's health and its inhabitants, which is why we only use lab grown diamonds rather than mined ones, unlike our competitors who use both. This naturally makes our competitors biased; it would be in their best interest not to disclose stories like this that could turn away prospective buyers and thus negatively impact their bottom line.

Thank you for taking the time to read this article, and we hope it has given you a better understanding of the diamond industry. Hopefully, you enjoyed this article or found it informative, so please share it with family, friends, and your significant other. During your next party or get-together, whether face-to-face or virtually, you might have something interesting to discuss with them!

The insider story of Lab Grown Diamonds