Future of natural diamonds depends on industry unity – WFDB

World Federation of Diamond Bourses

World Federation of Diamond Bourses (WFDB) president Yoram Dvash has raised concern about the “meteoric” rise in the penetration of synthetic diamonds into the market, which he believes threatens the value and future of the natural diamond.

He explains that synthetic diamonds started as a marginal phenomenon but has become an unprecedented flood. In less than a decade, lab-grown diamonds have grown to comprise 20% of global jewellery sales.

In the US, which Dvash deems the world’s most important jewellery market, most new engagement rings now include synthetic diamonds, owing to their falling prices and the difficulty to distinguish them from natural diamonds.

For Dvash, this trend is not just about displaced natural diamond sales but changes in values and culture. “It is about the loss of the sense of intrinsic worth, wonder and uniqueness that have underpinned the natural diamond for generations,” he says.

He urges all key players in the industry to make a concerted effort on a global scale to restore the natural diamond to centre stage.

Dvash says he is encouraged about the industry recognising the importance of working together to raise the image of the natural diamond, as demonstrated at the WFDB’s President’s Meeting in June.

He mentions that during the event speeches, panels and private conversations, mining companies, international organisations, retailers and diamond exchanges all expressed a willingness to invest more effort and resources to encourage natural diamond consumption.

Some of the commitments made by natural diamond industry members include signing the Luanda Accord, De Beers committing to invest in raising the desirability of natural diamonds through educational and marketing campaigns, and the Natural Diamond Council (NDC) establishing a new educational website to enable jewellery salespeople to be better informed to communicate the unique value of natural diamonds to customers.

The Luanda Accord was signed following the WFDB President’s Meeting by African diamond-producing countries and industry stakeholders. It involves an agreement to pool resources and boost global marketing efforts for natural diamonds.

All parties to the accord have agreed to contribute 1% of their rough diamond sales revenue to a fund managed by the NDC.

The WFDB itself launched a campaign using original videos to promote the emotional significance of natural diamonds.

Dvash expresses gratitude at the industry coming together at this important juncture, especially to uphold natural diamonds as a symbol, not just a product. “Its future depends on our unity,” he concludes.

Source: miningweekly

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World Federation of Diamond Bourses

The World Federation of Diamond Bourses (WFDB) is an international confederation of diamond bourses, or exchanges, which serve as key trading platforms for diamonds globally. Established to promote ethical standards and professional conduct in the diamond trade, the WFDB plays a vital role in the regulation and standardisation of diamond transactions, ensuring integrity and fairness within the global diamond industry.

Key Functions and Roles of the WFDB
Ethical and Professional Conduct:

The WFDB sets and enforces strict ethical guidelines for its members, ensuring that diamond transactions are conducted with honesty, transparency, and fairness. These rules cover areas such as business practices, trade ethics, and legal compliance.
Members of the WFDB are committed to responsible sourcing, adhering to established ethical principles to avoid the trade in conflict diamonds and ensuring that diamonds are sourced and traded in a manner that is both sustainable and legally compliant.
International Coordination:

The WFDB serves as a central body to unify the operations of diamond bourses worldwide. It facilitates international cooperation between diamond exchanges, promoting collaboration and standardisation of diamond trading practices across national borders.
The federation works to harmonise diamond grading standards, transaction protocols, and dispute resolution mechanisms to ensure a smooth and unified global market.
Advocacy and Representation:

The WFDB represents the interests of diamond bourses and their members in the global marketplace. It advocates for policies that promote the growth and health of the diamond industry and addresses issues related to trade barriers, industry regulations, and market access.
The organisation is a key voice in the international dialogue surrounding the diamond industry and plays an important role in discussions on sustainability, ethical sourcing, and the future of diamond trading.
Promoting Fair Trade and Transparency:

One of the WFDB’s core missions is to foster transparency within the diamond trade. By promoting the use of standardized grading systems and supporting initiatives like the Kimberley Process Certification Scheme, the WFDB helps to ensure that diamonds traded on its exchanges meet high standards of quality, legality, and ethical sourcing.
The WFDB also offers guidelines and training to ensure that diamond professionals operate with integrity and respect for the rules governing the industry.
Support for Diamond Bourses:

The WFDB offers support to diamond bourses around the world, helping them operate efficiently and ethically. It provides a platform for member bourses to share information, best practices, and market trends, strengthening the global diamond trade community.
Member bourses benefit from the WFDB’s global influence, networking opportunities, and access to a trusted, reliable marketplace.
Commitment to the Diamond Industry’s Future:

The WFDB is committed to the sustainable development of the diamond industry, supporting initiatives that promote long-term growth, environmental responsibility, and the welfare of local communities involved in diamond production.
It works to ensure that the industry remains robust and responsive to changing market conditions, regulatory requirements, and technological advancements, such as synthetic diamonds and blockchain technology.
Membership and Structure
The WFDB is composed of diamond bourses from around the world. These exchanges are member-owned organisations that serve as trade hubs for diamond dealers and manufacturers.
Membership in the WFDB is typically reserved for diamond dealers, manufacturers, and other professionals who engage in the wholesale trading of diamonds.
The WFDB’s structure is democratic, with each member bourse having a say in the decisions that affect the global diamond trade. This ensures that the needs and concerns of the broader industry are represented in the WFDB’s actions.

The World Federation of Diamond Bourses (WFDB) plays a critical role in maintaining ethical standards and promoting professional conduct within the global diamond trade. By unifying diamond bourses worldwide and setting clear rules and guidelines for diamond trading, the WFDB helps foster transparency, fairness, and integrity in the industry. Its efforts to advocate for ethical sourcing, sustainability, and responsible trade practices ensure that the diamond market remains strong, trusted, and sustainable for the future.