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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

CIBJO Backs ‘synthetic’ As Sole Label For Man-Made Diamonds

CIBJO’s Laboratory-Grown Diamond Committee, Told Delegates That “Synthetic” Remains The Primary Term Recognized By Consumers, Despite A Formal Push From The Sector’s Steering Committee To Defer The Ruling and Authorize “Laboratory-Grown.”

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The World Jewellery Confederation (CIBJO) has recommended “synthetic” as the only acceptable descriptor for non-mined diamonds, rejecting calls from trade leaders to permit the term “laboratory-grown,” the organization said on Monday.

The decision, finalized at the closing session of the 2026 CIBJO Congress, deepens a global divide over gemstone terminology at a time when manufactured stones are rapidly eroding the market share and pricing power of mined gems.

CIBJO’s Laboratory-Grown Diamond Committee, told delegates that “synthetic” remains the primary term recognized by consumers, despite a formal push from the sector’s steering committee to defer the ruling and authorize “laboratory-grown.”

CIBJO’s move aligns with a growing regulatory push in several major markets. France restricted terminology to “synthetic” in 2024, Russia followed suit in June, and the London Diamond Bourse endorsed the single descriptor on Sunday. In May, the African Diamond Producers Association also tightened descriptor rules to shield the natural diamond trade.

In contrast, regulators and retailers in the United States and India have favored consumer-friendly phrases such as “lab-grown” or “laboratory-grown.” The commercial stakes are particularly high in the U.S., where synthetic stones now account for more than half of all engagement ring sales by volume, applying severe downward price pressure on natural rough and polished stones.

CIBJO, which began moving to strike “lab-grown” from its influential Diamond Blue Book standards last year, warned that the diverging legal frameworks are leaving the global market increasingly fragmented.

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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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