The trend of mixing lab-grown diamonds in jewellery made with natural diamonds is becoming rampant and is a major concern for consumers.
The price difference between natural and lab-grown diamonds (LGD) provides a huge incentive for unorganised players to mix them and make a quick buck.
Ajoy Chawla, CEO (Jewellery Division) of Titan Company, told businessline that it is very difficult for consumers to identify the difference between natural and lab-grown diamonds, particularly when they are mounted on studded jewellery.
With the demand for diamond jewellery steadily increasing, he said some consumers realise that they have bought jewellery with mixed LGD only when they come to exchange it for a new design.
To counter this practice, Tanishq plans to install 100 diamond-testing machines at its leading jewellery outlets to instil confidence among consumers when they buy studded jewellery from its stores, said Chawla.
The domestic diamond market has grown rapidly, surpassing China to become the second-largest diamond-consuming country and accounting for 11-15 per cent of global consumption.
In a bid to boost buyers’ confidence, De Beers, one of the largest natural diamond brands, recently launched a machine, SynthDetect XL PL, that can test both mounted jewellery and loose stones for synthetics and natural diamonds.
While gold jewellery has achieved 100 per cent penetration, diamond-studded jewellery has reached only about 8-10 per cent penetration.
Amit Pratihari, Managing Director of De Beers India, said the diamond jewellery market is estimated to grow to $22 billion in the next 8 years, from about $8.5 billion currently.
The growing aspirations of consumers from smaller towns have been pushing demand for studded diamond jewellery, and the momentum should not be spoiled by a few bad elements in the industry, he said.
The Gem and Jewellery Export Promotion Council, the apex body for the gem and jewellery trade in India, has urged the industry to desist from using terms such as “real,” “genuine,” “natural,” and “precious” for LGD. The term “cultured” can be used for lab-grown diamonds and must be immediately followed by terms such as “laboratory-created” or “laboratory-grown,” it said.
Vipul Shah, Chairman of GJEPC, said the government should adopt the terminology used in the US for identifying LGD and natural diamonds.
“The initiative will protect consumer rights by shielding them from misinformation. The Federal Trade Commission (FTC) of the United States’ definition reflects technological advancements and ensures clarity in diamond marketing, applying the same standards to both mined and lab-grown diamonds,” he added.
