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AWDC My AWDC Home Natural Diamonds Trader What you need to know as a Trader Page Overview How Natural & Synthetic Diamonds are Formed Let’s Talk about Price Detection, Certification & Supply Chain Integrity Sustainability Claims: Verified Impact vs. Marketing Narratives Natural Diamonds and how they are Responsibly Sourced The Importance of Correct Terminology The Importance of a Certificate The Importance of Transparency, Traceability, and Education Towards Your Clients But what can you do as a supplier of natural polished diamonds? As a diamond trader, you're at the nexus between supply and retail. Your ability to educate, influence, and reinforce the integrity of natural diamonds has never been more vital.  The market for synthetic diamonds is growing, albeit with its share of challenges. To preserve both client trust and product value, transparent disclosure and strategic positioning of natural diamonds are essential. We gathered a wide range of sources to create a guide that combines consumer-facing clarity with midstream insights, helping you position yourself confidently in a complex product landscape. This guide was created to provide you with information that you can share with those you supply, equipping them with the tools needed to accurately inform their buyers about the benefits of natural versus synthetic diamonds. Diamonds have been in Antwerp since 1447. The current landscape: 1,470 active companies 80,000+ diamond shipments/year USD 24.5 billion trade value Natural diamonds = 99.5% of trade value Source: AWDC 1. How Natural & Synthetic Diamonds are Formed Diamonds may appear visually identical to the untrained eye, but their origins define their economic value, traceability, and market position. A thorough understanding of the formation processes reveals the essential differences between natural and synthetic diamonds. Key Details: Natural diamonds are formed over billions of years (3.5 billion – 500 million years to be exact) under extreme heat and pressure, over 100 miles beneath the Earth’s surface. They reach the surface through volcanic activity and are only found in specific geological regions. Synthetic diamonds, by contrast, are created in a matter of weeks through two main processes: High Pressure High Temperature (HPHT) and Chemical Vapor Deposition (CVD). These industrial methods simulate natural conditions in a controlled environment. The production of synthetic diamonds is predominantly concentrated in India and China. Synthetic Diamond Production There are two main processes used to create Synthetic diamonds. The production method used does not affect the look or cost of the polished product. Both methods require a tiny diamond crystal, called a “seed,” to serve as a base upon which the stone can be grown. The seed can be natural, but it is commonly grown in a laboratory. High Pressure, High Temperature (HPHT) Method To create a diamond using the HPHT method, reactors replicate extreme natural conditions, such as immense pressure (5–6 GPa) and temperatures nearing 1,650°C (3,000°F). This process transforms graphite into a distinctively shaped Synthetic diamond crystal in a fraction of the time it takes nature. Chemical Vapor Deposition (CVD) Method This newer method involves breaking down the molecules of a carbon-rich gas, such as methane, into carbon and hydrogen atoms at temperatures of around 1,100°C (2,000°F). These atoms are then deposited onto a seed plate to produce a square-shaped diamond crystal. Source: NDC Report p. 12 - 13 Natural diamonds are rare and geographically limited, with each stone bearing the mark of geological time and location. Synthetic diamonds are industrial products, produced on demand and without the unique traits of naturally formed gemstones. Example: It is estimated that the total annual output of all 1-carat natural diamonds could fit into a single 50-liter suitcase, underscoring their natural scarcity. In contrast, synthetic diamond production capacity can be scaled almost indefinitely. 2. Let’s Talk about Price Price volatility is one of the most critical differentiators between natural and synthetic diamonds. Understanding historical trends and current market behavior is essential for effective inventory and margin management. According to andustry analysts Edahn Golan and Paul Zimnisky: Since 2018, the wholesale price of a 1-carat, near-colorless, VS1 synthetic diamond has declined by approximately 95%, while retail prices have dropped by 76%. The price decline has been driven by rapidly falling production costs, which have decreased by 90% in the past decade due to advancements in CVD technology. Natural diamonds retain an average of 70% of their original purchase value and exhibit greater price stability over time. Larger natural diamonds command exponentially higher prices due to geological rarity, whereas synthetic diamond pricing scales linearly with size. Synthetic diamonds are created with greater efficiency and less material wastage. “Natural diamonds often require cutting away up to 60% or more of the rough. Source: https://harpersbazaar.com.au/the-difference-between-lab-grown-and-natural-diamonds/ Synthetic diamonds experience rapid depreciation, posing a significant risk for inventory held by upstream and midstream players. In contrast, natural diamonds retain more substantial residual value and offer more stable returns over time. Example:  A 1.5-carat synthetic diamond that sold for $10,750 in 2016 is now available for approximately $1,455, a decline that highlights the unpredictability and volatility of synthetic inventory. Whole synthetic diamond prices (2018 - 2025): 1 carat synthetic: from €1570 (2018) → €90 (2025) 30 pointers: €110 → €25 No resale market, declining demand Source: Edahn Golan 3. Detection, Certification & Supply Chain Integrity Maintaining the integrity of the diamond supply chain requires robust detection protocols and credible certification practices. This is particularly critical to prevent the mixing of natural and synthetic diamonds. There are more than 20 industry-grade instruments available to detect synthetic diamonds, including the HRD Antwerp M-Screen Ultra, GIA iD100 and De Beers SYNTHdetect. “The ASSURE Program has developed a standard to test Diamond Verification Instruments consistently. We partnered with leading manufacturers as part of a shared commitment to maintaining consumer confidence.” David Kellie, CEO, Natural Diamond Council. Source: https://www.naturaldiamonds.com/council/assure-testing-program/ One of the most reliable markers of a natural diamond is the presence of nitrogen, which is almost entirely absent in synthetic diamonds. Reliable certification from institutions like GIA, IGI, and HRD is crucial for validating the origin and quality of diamonds. Grain patterns, fluorescence behavior, and trace element composition are key factors in laboratory identification. Systematic detection is a non-negotiable standard in today’s diamond trade. Only with verifiable certification and thorough testing can midstream players maintain trust and transparency in their supply chain. Example:  Synthetic diamonds created using HPHT often contain metallic inclusions from catalyst materials like iron or nickel, traits that can be detected with precision instruments, but not with the naked eye. 4. Sustainability Claims: Verified Impact vs. Marketing Narratives Claims surrounding sustainability have become a central theme in the diamond market, yet many of these assertions lack transparency and scientific rigor. Are Synthetic Diamonds More Ethical or Sustainable? Not always. Sustainability depends on various factors, including energy source, water usage, chemical handling, and working conditions. Synthetic production is highly energy-intensive, often relying on fossil fuels for its operations. Carbon Claims Synthetic diamonds often require temperatures exceeding 2,000°F. Over 70% are produced in China and India, countries where energy grids rely heavily on coal. “Carbon-neutral” claims are typically achieved through offsetting and often apply only to rough production, rather than the entire supply chain. Carbon Capture Some companies claim carbon capture as an environmental benefit. However, 1 carat of synthetic diamond stores just 0.2 grams of carbon, equal to one or two emails. A mature tree absorbs 48 pounds (over 21,000 grams) of CO2 annually. Other Greenwashing Risks Claims of “mine-free” overlook the need for mined materials in reactors. Water-intensive cooling systems operate in water-stressed regions. Energy efficiency varies widely between facilities. Social Impact Synthetic diamond manufacturing supports fewer jobs and offers limited community benefits. In contrast, the natural diamond industry supports about 10 million people globally, providing jobs, education, and infrastructure. Source: World Diamond Council Key Details: Synthetic diamonds require the continuous operation of high-temperature reactors, often exceeding 1,100°C (2,000°F), resulting in substantial energy and water consumption. Over 70% of synthetic diamonds are produced in India and China, where fossil fuels are a primary source of energy. Claims of carbon neutrality are often based on offsetting schemes and typically refer only to the production of rough stones, not the whole supply chain. Natural diamonds, particularly those sourced from responsible mining operations, contribute to economic development, healthcare, and education in the regions where they are produced. Did you know that while 70% of synthetic diamonds are produced in India and China, where fossil fuels are a primary source of energy, some synthetic diamond producers use renewable energy. To verify these sustainability claims, consumers are encouraged to ask for the following: A sustainability certification verifying that the synthetic diamond’s carbon footprint is offset Confirmation that the diamond can be traced throughout the supply chain Proof that it meets strict social and environmental standards Documentation that the diamond was produced with a net-zero environmental impact Source: Brides Sustainability narratives must be evaluated based on full life-cycle impact. While some LGD producers claim environmental benefits, many omit the use of fossil fuels, high water consumption, and limited social contribution. Natural diamond producers often support robust environmental and community initiatives. Example:  A 1-carat synthetic diamon…