Diamonds Are Still Forever at The JCK Show, Las Vegas

Las Vegas—Rewind to The JCK Show — Las Vegas last year and you'll notice some worried faces in the diamond sector. The industry was abuzz with concern about how the sudden media exposure of what are known as conflict diamonds would affect its image and sales. To make matters worse, Warner Bros. was due to release its movie, "Blood Diamond," during the holiday shopping season. The jewelry industry braced itself, prepared for the worst.

Fast forward to May 29–June 5 this year, and it's as if nothing happened. According to many exhibitors and attendees, conflict diamonds are a non-issue at this year's JCK. It seems that last year's fears were unwarranted.

"I haven't heard anything about (conflict diamonds) at the show," said exhibitor Marcee Feinberg, vice president of marketing at Lazare Kaplan Intl. "Blood Diamond" was, she added, "a wonderful movie, but it (doesn't reflect) the current situation."

Conflict diamonds are those that are illegally traded to fund rebel militias in poor African nations. As the largest extracted resource in the world, 65 percent of all diamonds come from African countries, according to the World Diamond Council. At the height of the problem in the late '90s, an estimated 4 to 15 percent of the world's rough diamond supply was thought to be illegally traded.

Attention that the brutal conflicts in Sierra Leone at that time drew from throughout the world inspired the United Nations, government officials in developed countries, the diamond industry and several non-government organizations to form the WDC. Its sole mandate was to prevent so-called "blood diamonds" from entering the legitimate supply by developing and implementing a tracking system for the export and import of rough stones.

Enter the Kimberly Process Certification Scheme, a system of warranties and verifications signed into effect in 2003. Part of the process requires that rough diamonds be sealed in tamper-resistant containers and bear certification in order to cross international borders. With governmental support and oversight, 72 countries now follow the KP, making diamonds among the most highly regulated extracted resources in the world. According to the WDC, more than 99 percent of all diamonds traded internationally are now deemed conflict-free.

The accompanying media barrage appeared to have little negative impact on the industry, with robust holiday sales.

"We are constantly working to better the process." said Carson Glover, spokesperson for the WDC. "As governments, the world and the industry change, we try to make sure we're moving along to insure the diamond pipeline is protected."

Despite public awareness, JCK exhibitors claimed that most customers were neither asking questions nor seemed concerned about the issue.

"We did seminars for our sales people, had literature available to our customers, but we've noticed very little concern about it on the consumer's part," said retailer Sherri Lloyd of Robbins Diamonds in Philadelphia.

Many exhibitors stood behind the philosophy that as long as a consumer buys from a legitimate dealer, he or she has nothing to worry about.

"The KP has addressed the issue, but good or bad, it's had no effect whatsoever on the show," said David Bonaparte, JCK group vice president. "Six or seven years ago it was an issue, but not anymore. The industry has taken big steps to practically eradicate (conflict diamonds)."

Bonaparte said there weren't even specific conferences that addressed conflict diamonds at this year's show.

Not everyone believes that it should be business as usual in the diamond industry, however. Some understand that preventing the trade of conflict diamonds is an ongoing process, and nothing is foolproof forever.

"It's a start," said Robert May, marketing director of Pluczenik Diamonds of New York. "(The Kimberly Process) has had a positive influence on the industry. It's continuing, and it will continue."