The trend of mixing lab-grown diamonds in jewelery 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 unorganized players to mix them and make a quick buck.
Ajoy Chawla, CEO (Jewellery Division) of Titan Company, told business line 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 jewelery steadily increasing, he said some consumers realize that they have bought jewelery with mixed LGD only when they come to exchange it for a new design.
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Also read: How lab-grown diamonds are reshaping the diamond industry
To counter this practice, Tanishq plans to install 100 diamond-testing machines at its leading jewelery outlets to instill confidence among consumers when they buy studded jewelery 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 jewelery and loose stones for synthetics and natural diamonds.
While gold jewelery has achieved 100 per cent penetration, diamond-studded jewelery has reached only about 8-10 per cent penetration.
Amit Pratihari, Managing Director of De Beers India, said the diamond jewelery 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 Jewelery Export Promotion Council, the apex body for the gem and jewelery 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.
