Diamond Traceability

The Diamond industry is also not an exception. Since diamonds have always been a synonym for integrity, trust, and love, it becomes very important for suppliers and retailers to offer conflict-free and legally mined diamonds to the customers.

The traceability of diamonds is what makes the diamond worth buying. Tracking a diamond’s journey from mine to market is crucial in stating whether a diamond is legally mined or not. With rising awareness among customers, brands are now forced to bring and maintain transparency in the diamond supply chain.

Once known to be a secretive industry now, the diamond industry is gradually moving towards transparency and regulations. In the contemporary world, shifts in customers’ attitudes towards society and the environment pushed the diamond industry to adhere to ethical mining practices.

The Importance of Diamond Traceability

Loyalty Towards Customers

Diamonds hold an extraordinary place in the lives of people. For them, they are the symbol of eternal love and care. Whether embedded in a wedding ring or exquisite jewelry, people admire diamonds for their everlasting brilliance and purity. Due to this exceptional bonding between buyers and diamonds, people become curious about their diamonds. Also, people want to know whether diamonds are mined legally and following government rules and regulations or not. They are not interested in buying diamonds that are a result of civil disruption and conflicts.

Rewarding and Incentivizing

It is important to reward and incentivize ethical business practices in the diamond industry. When people prefer to buy legally mined diamonds, and they are sold at premium prices in the market, it invigorates traders, miners, and manufacturers to follow ethical practices for diamond excavation. Also, proper authentic certification and provenance records will act as a chief market tool for retailers, who can claim respect in the market as sellers of ethical luxury items. Rewarding and incentivizing ultimately help in building a transparent and legal diamond market.

Improved Measures for Blood Diamonds

Diamonds that are the result of war conflicts where illegal mining is involved are known as “blood diamonds.” With the help of proper traceability and inspection, diamonds that come from these war zones can cease to enter the diamond market around the globe. These diamonds are one of the primary sources of funding armed conflicts. Proper traceability ensures that authorized diamonds will reach the hands of buyers following the Kimberley Process Certification Scheme. Rules and regulations also reduce the risk of child abuse and labor that are associated with diamond excavation.

Quick and Easier Responses

Diamonds that are properly traced throughout their journey from mine to market are free from any kind of disputes and concerns. The traceability of a diamond helps in the quick resolution of disputes that arise out of customer skepticism or charges of illegal diamond trading. The presence of a detailed track record makes sure that any kind of doubt is resolved expeditiously. It is not only imperative for customer satisfaction but also for eliminating blood diamonds from the supply chain.

Enhanced Government Earnings

To regulate the diamond industry the government needs legitimate and real-time data that allows it to monitor and control the diamond trade efficiently. It also helps the government in charging the right amount of taxes and collecting proper royalties. The revenues generated from the diamond trade are further utilized by the government for the betterment and development of the local population and to elevate the living standard of diamond miners.

How are Diamonds Traced?

To track diamonds, it is imperative to maintain and update records at each stage, starting from mining to selling. The tracking of diamonds helps in building customer trust in the retailers and wholesalers who are selling these diamonds in the market. Ethically sourced diamonds come with transparency and a history of legitimate mining. The legally mined diamonds are not only liked and purchased by the buyers, but they can form a bond with these beautiful stones.

Diamond traceability is done with the help of a technology known as blockchain. As its name suggests, blockchain is a set of important data maintained by each individual involved in the process at every stage. The best part about this technology is that once data is fed into the system it cannot be degraded. Each individual who is involved in the process has access to this data and this brings transparency. In the case of diamonds, data related to every stage is stored as a block of information. This information block together forms records that are essential for future purposes. Undoubtedly, it is one of the most famous approaches but with certain limitations. The main deficiency lies with the recording of data. If recorded data is inaccurate then the purpose of the whole exercise gets defeated. This may happen intentionally or unintentionally at any stage of the recording. However, the inaccurate data stays in the system forever, providing misleading information to others and giving rise to doubts over the authenticity of a diamond.

The limitations involved in blockchain can be overcome with the help of verifiable data. Verifiable data means collecting data independently and directly from the production system at every phase. Once data is entered into the system, it cannot be altered using any means. The chances of human error and counterfeiting are reduced because data is automatically recorded at every stage. The verifiable data method serves as the most accurate way to trace diamonds without any error or ambiguity.

Stages involved in the traceability of diamonds:

The first and foremost stage from where traceability starts is the mining site. Companies involved in legitimate mining practices strictly comply with environmental and legal instructions. The diamonds mined by these companies have tags with unique identification numbers.
Once diamonds are mined, they are sent for certification and documentation to known institutes like the Gemological Institute of America (GIA). Here, diamonds are analyzed according to 4cs (cut, clarity, carat weight, and color) and origin. After analysis diamonds get certified as per their characteristics and source.
When diamonds are cut and polished, every step gets meticulously recorded to ensure authentic records.
When diamonds are sent to retailers for trading they offer provenance reports or QR codes to the customers for digital verification of the diamond’s journey and origin.

Platforms for Tracing Diamonds

With rise in demands for traceability of diamonds, modern technology is used for tracking and monitoring the journey of diamonds from mine to showroom. Whether it is a rough or polished diamond, each and every step is recorded for authentic records. The amalgamation of advanced technology enriches the customer buying experience and resolves all their queries related to the authenticity of a diamond. Platforms like TracR and Everledger are prominently used for tracing diamonds.

Everledger

Everledger is a state-of-the-art technology that uses advanced technological tools like blockchain and nanotechnology to create a digital record of each and every diamond. Accepted by diamond traders and certification institutes around the globe, everledger helps institutions create digital reports that are accessible to customers and retailers with a click. What makes it even more compatible with the industry is its digital algorithm that ensures the security of data regarding the diamond’s origin, characteristics, and ownership.

TracR

TracR is based on blockchain technology and is widely used around the world for tracing diamonds. Software developed by the DeBeer group provides a technological upper hand to record the journey of a diamond from mine to market. It offers tamper-proof source assurance and provides authenticated data about the diamond’s origin. It helps build confidence in customers and diamond retailers about the legitimacy of their products.

Why Does It Matter?

In the 21st century, buyers are more informed and concerned about their purchases. Every individual buyer wants a diamond that is free from conflict and human abuse. This is why transparency in the traceability of diamonds is of utmost importance. It does not matter how costly the diamond is; if it is mined following rules and regulations and has authentic records, buyers are ready to buy it even if they pay an extra price.

Providing authentic diamonds to the customer is essential for brands to maintain their prestige in the market. Any unethical trading practice on the part of these brands can severely damage their credibility. For brands, it is imperative to adhere to ethical business practices and safeguard their business from unwarranted risks. Also, following proper traceability guidelines helps businesses to comply with international rules and regulations. It saves organizations from penalties and legal consequences.

What Retailers Must Know About the Diamond Journey?

Retailers who want to build trust among their customers and long-term relationships need to emphasize tracking and the provenance of diamonds. By providing up-to-date reports about diamonds they can claim customer respect and faith. Additionally, it helps retailers deliver a new in-store experience to their customers and gain an upper hand in the competition against e-commerce and other luxury brands.

For retailers, engaging with trusted and reputable suppliers who track each and every diamond is necessary for their business. Before buying products from any supplier retailers must check whether the supplier completely adheres to legal standards or not. Make sure that all diamonds that are brought by retailers must meet the industry standards.

With the help of technologies like blockchain and artificial intelligence, retailers can smoothen the traceability of diamonds. It is beneficial to invest in these state-of-the-art technologies that offer correct and transparent data. Apart from tracking diamonds, retailers also put their commitment to sustainable diamonds. Diamonds that are extracted following eco-friendly practices must be promoted by them. In this modern world, customers are very sensitive about the environment.

Frequently Asked Question (FAQs)

What is the traceability of a diamond?

The traceability of a diamond refers to tracking the diamond journey beginning from mining to selling by retailers. With the help of modern technologies like blockchain and artificial intelligence, diamond traders ensure ethically sourced diamonds reach the market. It helps them to comply with legal and environmental frameworks.

How are diamonds traceable?

Modern technology will help in tracing diamonds efficiently. Technology like blockchain and artificial intelligence help in storing and updating data without any inconsistency. The unique identification number and certification help in tracing diamonds from mines to customers.

How many stages does the diamond traceability system have?

The diamond traceability system mainly has four stages. It starts from mining then comes certification, cutting, and polishing, and in the last trading and retailing. Tracking diamonds in all these stages ensures transparency and ethical business practices.

Diamond Traceability