46 STATE OF THE MAJORS 2017 The State of the DIAMOND INDUSTRY DIAMOND INDUSTRY DIAMOND INDUSTRY DIAMOND INDUSTRY The industry is taking action to ensure it accurately differentiates between undisclosed lab-grown diamonds and their mined counterparts— the biggest challenge it faces. A lthough there is no way of knowing how many undis- closed lab-grown diamonds are circulating, analyst Chaim Even-Zohar estimates approximately $750 million worth of gem-quality man-made diamonds entered the supply chain in 2016. He describes the volume of undisclosed lab-grown melee—di- amonds sized from a miniscule 0.001 carats to 0.18 carats used in every type of jewelry—entering the market as “staggering.” Others also believe there is a reasonable likelihood of discovering undisclosed lab-grown stones in the pipeline. “Based on our experience of testing jewelry and parcels, we suspect the risk of finding synthetics in the supply chain is reasonably high at the moment,” says Tom Moses, executive vice president and chief lab- oratory and research officer at the Gemological Institute of America. Just one high-profile case of a consumer discovering the expensive ring they saved up for contained an undisclosed lab-grown diamond could have huge ramifications for consumer trust in an industry already working hard to stay relevant to millennials. It is bound to happen before too long and, in fact, it probably already has. David Skuza of DRC Techno, a Surat, India-based gemological re- search and development company founded by sightholder Dharman- andan Diamonds, says every customer who has used the company’s J-Secure Plus machine has found undisclosed lab-grown diamonds. One customer recently tested a fancy diamond bracelet with rounds and baguettes. They discovered the baguettes to be lab grown, a big surprise. “Every retailer, manufacturer, wholesaler and diamond company By Danielle Max