Brilliant Earth and Conflict Diamonds
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Just the other day I received the following email from a reader who wanted some help in his search for the best diamond:
“Hi
Ideally, I’m looking for a 1 carat, F or better color, VVS1 or better clarity, Ideal or Super Ideal cut, probably round shaped diamond, for less than $9000 (not including setting).
I’m very interested in conflict free diamonds. I’ve been looking at Brilliant Earth’s website.
If you have any thoughts, thank you in advance!
AP”
I am not going to address the first question the reader had regarding the F color VVS1 diamond here. You should take a look at my page “Guide to Diamond Pricing” to get a good understanding as to why I advised AP to reconsider the high clarity and color ratings he indicated.
What I really want to concentrate on here is the issue of conflict diamonds (or sometimes referred to by the more dramatic name of Blood Diamonds). And for that a very short history lesson…..
The term conflict diamond refers to diamonds that were mined in war torn countries in Africa and the proceeds from the diamonds went on to fund the tribal or warlord military actions. Common countries exporting conflict diamonds were Angola, Liberia, Congo Sierra Leone. At its peak conflict diamond exports were responsible for about 4% of the diamond trade.
During the late 1990’s several human rights organizations increased awareness of the problems associated with conflict diamonds and the issue was brought up with the UN. The UN security council issues resolution 1295 in May of 2000 and organized a meeting in Kimberly, South Africa to discuss ways of combating the use of revenue derived from conflict diamonds in war activities. The result of this meeting became knows as the Kimberly Process and involved a diamond certification process that would ensure that diamonds were conflict free. Ultimately the UN adopted the Kimberly Process and it became the defacto standard that regulates the diamond industry.
The United States banned all imports of conflict diamonds January of 2001 and later passed the Clean Diamond Trade Act effectively adopting the Kimberly Process and banning the import of conflict diamonds. The adoption of Kimberly effectively reduced the funding from conflict diamonds from 4% to less then 1%.
So what does this all mean to you the diamond consumer? As long as you are buying from a reputable Jeweler such as James Allen, Blue Nile, or Zoara, you can rest assured that that you are not buying a conflict diamond! If you have any question or doubt- ask the Jeweler to see a copy of his conflict diamond policy. You can click here to view for yourself the James Allen conflict diamond policy. Since James Allen manufactures most of there own diamonds it is easier for them to keep track of the source then say a Blue Nile who is relying on inventory from other people.
I know what you are thinking – if there is no longer a concern over conflict diamonds why do companies such as Brilliant Earth make such a big deal over there conflict free policy? The truth is, and this is what I answered AP, that much of what Brilliant Earth is doing Is marketing and PR. Brilliant Earth is portraying itself as a “Green” company and they not only promote conflict free diamonds but also environmentally friendly packaging and recycled metals.
Don’t get me wrong, I have no problem with being “Green” in fact I just traded in my gas guzzling Mini-Van for a much more fuel efficient sedan and I am looking forward to the day when I can get my hands a Chevy Volt or Better Place car! What I don’t like is that Better Earth is not telling the whole story about conflict diamonds.
First, Better Earth sells only Canadian diamonds. What this fails to take into account is that many African economies rely heavily on the diamond industry and the proceeds in the conflict free diamond trade account for healthcare, education and infrastructure of many countries. Botswana, for example, provides free public schooling to all kids up to age 13 funded from the sale of diamonds. It is important to remember that even before Kimberly not every diamond that came out of Africa was a conflict diamond and today it’s almost non-existent. For more facts and figures on all the good that African diamond trade does see this page.
Second, I did some price and inventory comparison between Brilliant Earth and James Allen and was amazed to find that you are paying a huge premium for these diamonds. For example, I did a search for a very typical 1 carat I SI1 round Ideal and on Brilliant Earth I got exactly 1 result that was priced at $6,070 (it was actually 1.01 and can be viewed here) The same search on James Allen yielded 8 results and they were priced from $4,870 to $5,760 (yes, these are also 1.01) and an average price of $4,707. In other words you are paying a whopping 33% premium to go with the Brilliant Earth diamond – when both James Allen and Brilliant Earth are conflict free diamonds!
Now again, I am all for going “Green” (I am even a New York Jets fan) and I will pay a little bit more for a cup of coffee that comes in a recycled cup, but 33% higher? No. I know that Hybrid cars cost more then standard gas cars but in that case I am getting something in return – my gas bills will be significantly lower. I also suspect that in a few years they will be the same price. In the case of diamonds the James Allen diamonds are certified to be just as conflict free as the Brilliant Earth diamonds.
