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The Diamond Standard ETF: a solution to the natural diamond industry’s crisis

ETF will be positioning natural diamonds as an investment asset, similar to precious metals. A diamond ETF can unlock new demand and stabilize prices

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The natural diamond industry faces a critical challenge: plummeting prices due to the rise of lab-grown diamonds.  Consumers, often misled into believing lab-grown diamonds are equivalent to natural ones, are opting for the cheaper alternative, undermining the value and reputation of natural diamonds. This trend threatens millions of jobs and the value of existing diamond holdings.  Traditional marketing efforts are unlikely to succeed in the age of social media skepticism.

The solution lies in positioning natural diamonds as an investment asset, similar to precious metals.  Just as ETFs revitalized the markets for gold, silver, and other metals, a diamond ETF can unlock new demand and stabilize prices.  Diamond Standard has received approval to launch such an ETF.

The Problem: Lab-grown diamonds, while chemically similar, lack the scarcity and economic contribution of natural diamonds.  Their proliferation is confusing consumers and devaluing natural diamonds, leading to excess inventory and potential bankruptcies within the industry.

The Solution:  The Diamond Standard ETF will create a new avenue for demand by attracting institutional investors. This will differentiate natural diamonds from lab-grown, establish them as a tangible investment, and provide the industry with a much-needed boost.  This investor demand will drive up the value of all natural diamonds, benefiting the entire industry.

The Opportunity: Diamond Standard needs $200 million in initial assets to launch the ETF.  They propose acquiring excess diamond inventory from vendors in exchange for ETF shares.  Post-IPO, the ETF projects to purchase $3 billion worth of diamonds from participating vendors.

How it Works:  Vendors can contribute their excess inventory (polished, round, natural diamonds, specific carat, color, clarity, and cut requirements) to the ETF in exchange for shares at a 10% premium on wholesale. This allows vendors to monetize slow-moving inventory, participate in the ETF’s potential growth, and gain a Right of First Refusal to sell more diamonds to the ETF post-IPO.

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DiamondBuzz

GIA Puzzled by Rare Starburst Inclusions in Yellow Diamond

A 2.50-carat yellow diamond shows never-before-seen starburst cloud formations, prompting deeper investigation by GIA scientists.

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The Gemological Institute of America (GIA) recently encountered an exceptionally unusual diamond that defied easy explanation. The 2.50-carat round brilliant, graded at the institute’s Carlsbad, California, laboratory, displayed star-shaped inclusions so distinctive that researchers struggled to pinpoint their origin.

According to research “several randomly distributed yellow zones consisting of stacks of clouds with four-sided star patterns near the girdle noticed in the diamond.” These clouds—clusters of micro-inclusions—each contained a central concentration of more intensely colored particles arranged in a cross-like formation. When viewed from an alternate angle, the phenomenon appeared as a row of bright-yellow overlapping triangles, prompting the GIA to launch an in-depth analysis.

Initial observations revealed blue fluorescence under long-wave UV light, while the clouded yellow patches displayed weak yellow fluorescence under deep-UV imaging. Testing also indicated the presence of hydrogen-related defects, typically associated with brownish or greenish color components. However, these did not explain the intense yellow coloration of the zones, which is more commonly linked to cape defects, H3 centers, isolated nitrogen (C-centers), or a 480-nanometer absorption band.

To probe further, GIA scientists used photoluminescence spectroscopy to compare the yellow zones with surrounding areas. The results showed no signs of H3-related features or absorption-band activity. The only notable finding was a nitrogen-vacancy center present exclusively within the vivid yellow areas, suggesting the coloration stemmed from C-centers confined to specific surface regions.

The lab initially considered whether the diamond might resemble a case reported in 2020, in which a near-colorless diamond developed a yellow overgrowth layer late in formation. However, the composition and behavior of the current stone’s micro-inclusion clouds did not align with that scenario.

GIA researchers concluded that the origin and formation of the starburst-like micro-inclusions remain unknown — a mystery that will require further investigation.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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