Lab Urges Caution over Surge in Undisclosed Colored Synthetics

Gemological Science International (GSI) has issued a warning to the trade after coming across a “notable increase” in jewelry set with pink, yellow and brown lab-grown diamonds posing as natural.

The jewels, which have been submitted to the lab for grading, often contain synthetic stones mixed in with natural colored diamonds, Debbie Mazar, president and cofounder of GSI, explained Tuesday. Many of the undisclosed synthetics were type IIa, with a single nitrogen atom, and ranged in size from melee to 1 carat.

Additionally, some of the lab-grown diamonds were intentionally cut to mimic natural ones, GSI noted. The GSI observed several with fractures, pinpoint clouds, polish-overs and distinct brown grain lines, features found in natural diamonds, which would potentially enable the fraudulent stones to pass standard gemological evaluation, GSI said.

“The challenge arises as most jewelry-screening equipment in the market is designed to screen white, near-colorless diamonds,” Azar explained.

The advanced technology in diamond growth is contributing to increased success by growers in replicating natural diamonds more and more, GSI added.

GSI’s warning comes on the heels of several from other labs. In December, Italian grading lab Gem-Tech cautioned that it had encountered a number of lab-grown stones circulating bearing fraudulent inscriptions from the Gemological Institute of America (GIA) for natural stones. Last month, the International Gemological Institute (IGI) examined a 6.01-carat lab-grown with a GIA laser inscription for a similarly cut natural, while the GIA reported it was taking steps to combat the recent influx of lab-growns bearing fraudulent inscriptions from the lab by offering same-day report verification.

Source: Rapaport

IGI Detects 6-Carat Lab-Grown Diamond With Fake Inscription

The International Gemological Institute’s laboratory in Tel Aviv recently detected a 6-carat lab-grown diamond that someone apparently was hoping to pass off as a natural stone.

The 6.01-carat, pear-shaped synthetic diamond was fraudulently inscribed with the Gemological Institute of America report number for a G-color natural diamond of the same size and shape, but with a few key differences, IGI said in a news release issued Tuesday.

First, the lab said, photoluminescence (PL) spectroscopy, which is now widely used by grading labs to separate natural diamonds from lab-grown stones and to identify diamond treatments, shows a wavelength peak of 737 nanometers in the diamond (see chart below).

This is an indicator that the diamond was grown in a factory using the chemical vapor deposition process.

IGI photoluminescence spectra
The photoluminescence spectra for the 6.01-carat lab-grown diamond recently examined by the International Gemological Institute

Second, when examined under a microscope, IGI graders saw a carbon inclusion where the feather was indicated on the clarity plotting diagram in the GIA report.

They also noticed a cloud inclusion, resulting in IGI giving the lab-grown diamond a lower clarity grade than VVS1, the clarity grade of the natural diamond.

Lastly, there was a discrepancy between the depth of the diamond IGI examined and the depth noted on the GIA report.

“Everyone in our industry must be vigilant,” said IGI CEO Tehmasp Printer, who took over as head of the lab in October after Roland Lorie retired.

“As attempted fraud increases, the need for ongoing verification is a necessary step to protect consumers from purchasing misrepresented gems and jewelry.”

Source: Nationaljeweler

Hong Kong Busts $64M Diamond Scam

Hong Kong authorities have arrested four people suspected of running a money-laundering syndicate that falsely declared synthetic diamonds as natural.

The operation, which authorities codenamed “Gem Crusher,” was the first money-laundering case using transnational diamond trading the Hong Kong Customs and Excise Department has detected, the government organization said Thursday.

On December 19 and 20, customs raided eight premises across multiple areas in Hong Kong, including residential and business locations. So far, authorities have frozen HKD 8.2 million ($1.1 million) in assets belonging to those in custody.

Hong Kong customs officials were alerted to the scheme earlier this year and launched a financial investigation, exchanging information with authorities in India, the department explained.

Members of the crime syndicate had established diamond-trading companies in both Hong Kong and India. Throughout 2021, the syndicate exported low-value lab-grown diamonds from Hong Kong to India with fictitious declarations presenting them as high-value naturals.

The purpose was to “transfer significant amounts of suspicious funds from India to Hong Kong,” authorities alleged. The suspects laundered around HKD 500 million ($64 million), the department claimed.

During the raid, customs seized a “large quantity of suspected synthetic diamonds, a small quantity of natural diamonds, about HKD 1 million [$128,055] in cash, a number of mobile phones, computers, company [seals], checkbooks, bank cards, bank documents and trading documents” from the four suspects, authorities said.

The four men — believed to be the “masterminds, ring leaders and members” of the syndicate — were arrested on suspicion of “dealing with property known or reasonably believed to represent proceeds of an indictable offense.”

The investigation is ongoing, and further arrests cannot be ruled out, customs noted.

Souce: Diamonds.net

Italian Grading Lab Warns of Synthetic-Diamond Scam

Italian gemological lab Gem-Tech has warned the trade that a number of lab-grown diamonds circulating in the country are being sold as natural.

Three stones were submitted to the lab accompanied by certificates from the Gemological Institute of America (GIA) stating they were natural, Gem-Tech said last week. Gem-Tech weighed the stones and found them to be nearly identical to those recorded on the GIA certificates. The stones also had laser inscriptions with a visible GIA logo that matched those the lab had seen before from other GIA-graded stones, Gem-Tech explained.

However, further investigations indicated the stones had been fraudulently paired with the grading reports, while the inscriptions appeared to be forgeries.

When the Italian lab exposed the diamonds to ultraviolet light to detect fluorescence, it discovered that the stones were inert, whereas the reports described the level of fluorescence as “faint.” The diamonds were then checked using spectrophotometric analysis and displayed a distinct greenish coloration and other characteristics commonly found in synthetics created using chemical vapor deposition (CVD).

Once the lab checked the report numbers against the GIA website, it realized they were issued for other, natural, stones that were just slightly different than those submitted to Gem-Tech.

“Gem-Tech has seen this happen before,” the lab said. “It would not be the first time that malicious individuals obtained reprints of authentic reports and paired them with stones other than those described.”

Although there were only three stones submitted, Gem-Tech believes there might be more, it told Rapaport News.

“The client who submitted them for identification reported that these stones were not the only ones being offered,” the lab added. “Other dealers have mentioned that these three synthetic diamonds, identifiable by their report data, have been presented in other parts of the country.”

Source: Rapaport

GIA Lays Off 151 Employees at Carlsbad Headquarters

GIA Lays Off 151 Employees at Carlsbad Headquarters

The Gemological Institute of America (GIA) has cut some 20% of the workforce at its Carlsbad, California, headquarters amid a prolonged slowdown in the industry.

In late July, the lab let 151 employees go, primarily in its laboratory, as well as some in corporate positions, Stephen Morisseau, the GIA’s director of communications, told Rapaport News Sunday. The lab made the layoffs as a result of a drop in the number of diamonds submitted for grading.

“Many organizations in the global gem and jewelry sector are experiencing a downturn due to economic conditions affecting the global gem trade,” Morisseau explained. “Due to those economic conditions, there has been a decline in demand for GIA’s gem identification and grading services, which led to the difficult decision to reduce staffing.”

The layoffs will bring the GIA’s total workforce in Carlsbad to 600, according to The San Diego Union-Tribune, which was the first to report the story. Globally, the lab has approximately 3,500 employees.

“The reductions will not affect our ability to advance our important consumer-protection mission, nor to meet the needs of our clients,” Morisseau added.

Source: Diamonds.net

GIA Launches The Digital Diamond Dossier

Digital GIA Diamond Dossier
Digital GIA Diamond Dossier

The start of 2023 marks a significant milestone in the digital transformation of the global diamond industry – the launch of the fully digital GIA Diamond Dossier, the most widely available diamond grading report in the world. The GIA Diamond Dossier is available for D-to-Z diamonds from 0.15 to 1.99 carats without colour treatments. Printed GIA Diamond Dossier reports issued before January 2023 remain valid.

Tom Moses, GIA Executive Vice President and Chief Laboratory and Research Officer, said, “The launch of the digital GIA Diamond Dossier report starts the conversion of all GIA’s laboratory reports to a modern digital format. This important change improves data security, offers efficiencies across the supply chain and reduces our reliance on paper.”

The first digital GIA Diamond Dossier report was issued at the GIA laboratory in Ramat Gan, Israel, on Monday, 2nd January 2023. More than 33 million printed GIA Diamond Dossier reports were issued since the introduction of the service in 1998.

Pritesh Patel, GIA’s Chief Operating Officer, added, “In 2025, when all GIA reports are digital, retailers and consumers will find greater convenience and a more immersive experience. Eliminating printed reports is an important advancement, reducing the impact of using, shipping and storing the nearly 40 tons of paper and plastic that go into printed GIA reports each year.”

The secure digital GIA Diamond Dossier is available in the reimagined GIA App or on computers, tablets and phones through the robust and secure online GIA Report Check Service and the GIA advanced application programming interface (API) for commercial users. The digital report service includes a Report Access Card with the report number, a QR code linking to the digital report and 4Cs information to embed into receipts, invoices and e-commerce sites.

The new GIA App is widely available for Apple and Android devices. The Android app for China is in development and will be available at a later date. The GIA Match iDTM inscription matching service is expected to be available in the first half of 2023, accessible exclusively through the reimagined GIA App.

Printed GIA Diamond Dossier reports issued before January 2023 remain valid.

AGS Laboratories to Integrate with GIA

AGS CEO Katherine Bodoh and GIA president and CEO Susan Jacques
AGS CEO Katherine Bodoh and GIA president and CEO Susan Jacques

The American Gem Society (AGS) will close its laboratory operations at the end of this year, with the Gemological Institute of America (GIA) taking on elements of the organization.

AGS Laboratories’ intellectual property (IP), technology, research staff and Las Vegas facility will become part of the GIA, the two organizations announced Wednesday. AGS Laboratories will continue to provide services until the end of 2022 and will contact clients with details of the transition, it said.

The nonprofits, both founded by Robert M. and Beatrice Shipley in the 1930s, will combine their gemological research efforts. The amalgamated team will “develop innovative products” to help consumers and the trade, encompassing light-performance research and a “science-based” fancy-cut grade standard, they said.

“This consequential agreement brings AGS and GIA even closer, driving our future with 90 years of shared history and elevating our founders’ vision,” commented AGS CEO Katherine Bodoh in a joint statement.

The GIA will create an endowment to support AGS and its membership. They did not provide further financial details. The collaboration will also help advance AGS’s retailer programs and support more member education, for example at the annual AGS Conclave, the statement continued.

The AGS Ideal grading report will be available from GIA as a digital-only supplement to GIA reports for eligible D to Z natural and laboratory-grown round and fancy-shape diamonds, incurring an additional cost of $25. GIA clients will be able to request these extra reports from January 2023.

In an information sheet for customers, AGS noted that GIA was responsible for inventing the 4Cs of diamond grading while AGS “created light performance and ignited a discussion on sparkle.” For instance, the AGS is one of the few major labs to offer a cut grade for fancy-shape diamonds.

“By harnessing each other’s strengths to move forward boldly, consumers will be better protected, and we will ensure the longevity of the Shipleys’ vision,” said GIA president and CEO Susan Jacques.

Correction, October 20, 2022: An earlier headline incorrectly stated that the GIA was taking over AGS’s grading division. In fact, the AGS Laboratories grading operations will close, with the GIA taking over certain other elements of the organization, including research.

Source: Diamonds.net

GIA Launches Diamond Origin Service

The Gemological Institute of America (GIA) has begun accepting submissions for a new service providing consumers with source verification for diamonds.

Leading manufacturers sent the first polished diamonds to the GIA’s Source Verification Service in early July, the institute said Wednesday. GIA-graded diamonds with confirmed origin information will be available to consumers when the initial submissions are returned and as more manufacturers join the program, the organization explained.

An independent auditing firm will vet all cutters before they enter the program. The auditors will confirm the company has the ability to track a diamond from receipt of the rough through the entire manufacturing process. The GIA will evaluate all participating firms regularly to ensure they are continuing to adhere to the guidelines, it noted.

Initially, the GIA will accept only polished natural diamonds with verified source documentation, including Kimberley Process (KP) certificates and invoices from vetted manufacturers. It will add lab-grown diamonds to the service in the near future. Consumers can access the information through the GIA’s online Report Check service, it added.

“GIA’s new service provides diamond-source information to consumers as quickly as possible,” said its CEO, Susan Jacques. “The GIA Source Verification Service is ready to provide verified diamond-source information to address increasing consumer demand and government interest in transparency and traceability across the supply chain.”

Source: Diamonds.net

Belgian Lab Detects Diamond with Fake Inscription

The diamond bearing the fake GIA inscription.

HRD Antwerp recently discovered a fake inscription on a polished diamond the lab had received for grading.

The 1.50-carat stone had a Gemological Institute of America (GIA) laser inscription corresponding to a natural grading report, HRD said Monday. The accompanying report listed the diamond as natural, with no color treatments. The stone was further identified as type IIa, meaning it contained virtually no elements other than carbon. However, during testing, the Antwerp lab found that the diamond had undergone High Pressure-High Temperature (HPHT) color treatment.

Although the diamond’s carat weight, color and cut precisely matched the GIA report, HRD noticed inconsistencies with clarity characteristics that were quite similar to those listed in the certification and could easily be mistaken during a standard loupe inspection, it explained.

“Detailed microscopic investigation by an experienced grader revealed that this was not the same diamond described in the report,” HRD said. “The clarity characteristics did not completely overlap. Since these characteristics are a unique fingerprint of the diamond, the inscription was conclusively identified as false. The diamond at hand had been intentionally inscribed with a fake laser inscription to deceive the customer.”

Correction: The story has been updated to clarify what was disclosed in the report and the findings of HRD.

Source: diamonds.net

GIA Sees Spike in Synthetics Fraud

GIA Sees Spike in Synthetics Fraud

The Gemological Institute of America (GIA) has seen a rise in submissions of lab-grown diamonds with counterfeit inscriptions that make the stones appear natural.

Clients using the GIA’s update or verification services are increasingly sending in goods that prove to be synthetic, the organization said Monday. These stones have falsified girdle engravings that reference a genuine natural-diamond report number, while most have almost identical measurements and weights to the natural diamonds they mimic.

In a recent case, someone submitted a 3.075-carat, H-color, VVS2-clarity, triple-Ex, lab-grown diamond to GIA Antwerp for an update. The stone carried a report for a 3.078-carat, G-color, internally flawless, triple-Ex natural diamond. The synthetic stone’s real-life dimensions were within hundredths of millimeters of the measurements in the natural-diamond report, the GIA noted.

“This unfortunate situation demonstrates why it is important, especially in any transaction where the buyer does not have a trusted relationship with the seller, to have the diamond-grading report updated before completing a purchase,” said Tom Moses, the GIA’s executive vice president and chief laboratory and research officer.

The GIA blotted out the counterfeit inscription and inscribed a report number for a new certificate that it issued, adding the term “laboratory-grown” on the girdle, as is its practice.

In February, the institute reported that it had received a number of lab-grown or treated stones carrying natural reports and fake inscriptions.

Source: Diamonds.net