Natural Diamond Industry Launches Traceability System Amid Competition

Hit by competition from lab-grown diamonds and declines in pricing, the natural diamond industry is launching a large-scale traceability system to further build customer trust and establish provenance of the consumer jewels, in a move that industry observers say will boost sales.

De Beers Group, the world’s largest diamond producer and distributor, recently announced that the Gemological Institute of America (GIA) will acquire a 30 per cent stake in Tracr, a De Beers-backed firm that has developed a blockchain-based platform to trace the origins of diamonds.

The agreement highlights GIA’s confidence in the platform’s ability to scale up traceability of natural diamonds using industry-wide infrastructure, according to a statement from De Beers on Tuesday.

“Provenance tracking for natural diamonds is expected to lift natural diamond sales,” said Lu Qi, an associate professor with the School of Gemmology at the China University of Geosciences (Beijing). “[The platform] records each diamond’s origin, design, cutting and polishing processes.”

“Buyers can trace the entire production and processing journey of each diamond. It helps raise consumer awareness and boost their confidence in buying natural diamonds,” she added.

Lu said that diamond traceability may push up the cost of natural diamonds.