FASHION FOR POSITIVE CHANGE
Corporate Integrity in the World of Luxury
A Diamond's Value
What is a diamond?
Britannica defines a diamond as “a mineral composed of pure carbon. It is the hardest naturally occurring substance known” (The Editors of Encyclopaedia Britannica, 2024). On the Mohs Scale of Hardness, it ranks a 10/10 which is the highest relative mineral hardness. (Cape Town Diamond Museum, n.d.). Symbolically, a diamond represents love and is the April birthstone.
The origin of the diamond is widely discussed, from ancient mineral-rich seawater trapped along sinking oceanic plates, rejecting and precipitating Carbon through temperature change and pressure below the Earth’s crust; to Carbon dissolved within liquid metal deep in the Earth - producing more transparent stones under the same pressure (due to less Nitrogen). The singular carbon atoms then crystallise into diamonds (Gorvett, 2022).
(Only Natural Diamonds, n.d.)
The Molecular Structure of a Diamond
A Diamond Lattice
(EveryDay, n.d.)
(ChemGuide, n.d.).
Carbon exists in other forms such as:
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Graphite
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Fullerite
Where are diamonds found?
Naturally produced diamonds are found in over 30 countries, but the leading producers of diamonds are: Russia, Botswana, Canada, Angola, South Africa, Democratic Republic of Congo and Namibia (Brilliance, n.d.). According to BBC Futures, “every diamond that has ever been sold or worn, except those grown in the laboratory, is at least 990 million years old” and suggests there may be some as old as 3.2 billion years old (Gorvett, 2022).
(King, 2023)
Interestingly, “Russia is the world’s leading producer of diamonds, mining more than 23 million carats of high-quality diamonds in 2018” (Brilliance, n.d.). However, due to the nation's current conflict with Ukraine, many countries and jewellers such as Tiffany & Co. have temporarily paused their business in the country, complying with “applicable sanctions and legal restrictions concerning Russia” (Tiffany & Co., n.d.). Immigration direction is a good way of assessing where audiences want to be, which can be applied to Russia’s current political state (Chenecey, 2024).
In a notice on the UK government website, there have been imposed sanction measures in the ‘Russia Regulations’ covering trade and other factors which prohibit the import of Russian diamonds, “aimed at encouraging Russia to cease actions which destabilise Ukraine, or undermine or threaten the territorial integrity, sovereignty, or independence of Ukraine” (GOV.UK, 2024). Furthermore, “third country processing can be a means of concealing the Russian origin of diamonds, and this measure is targeted at reducing circumvention of sanctions on Russian diamonds” (GOV.UK, 2024).
De Beers
Diamond has unique characteristics which hold value as the Earth’s hardest mineral. However, the current public’s heightened perception of value for the stone has been fuelled by De Beers ingenious marketing.
(De Beers, 1991)
(Paul Ziminsky, 2019)
In the 2022 movie Nothing Lasts Forever, produced and directed by Jason Kohn; De Beers are referred to as ‘The Diamond Cartel’, as the world’s largest diamond miner. The story goes as follows: back when demand and prices for diamonds were low, De Beers (previously operated by the Oppenheimers) bought the world’s majority of uncut gems (estimated at 90% of the world’s supply) and sold the idea of the diamond through effective advertising. This included ‘A Diamond Is Forever’ (launched in 1948) which birthed the concept of the engagement ring, with the diamond being the ultimate symbol of everlasting love to the emerging class of America after World War 2 (Mupeti, 2024). It’s clear the company saw an opportunity to create a new market and prided themselves on the art of storytelling.
The world diamond trade is controlled in Charterhouse Street, London and the engagement ring industry is estimated to be worth $107 billion globally by the end of 2027 (Diom & Doaga, 2022). The first thing that comes to mind when someone thinks of diamonds is engagement rings, therefore naturally this is a vital pillar of the industry. As part of the valuation business since 1978, Martin Rapaport - Chairman of the Rapaport Group, effectively decides and reports on the price of diamonds, and believes the role of the diamond is under threat because gender roles are under threat. He claims if “we lose the engagement ring market, we’re all out of business” (Kohn, 2022). According to The Knot in 2023, 46% of engagement ring centre stones were synthetic diamonds which could pose a threat (The Knot, 2023). Years of advertising has created the norm of the engagement ring being worth at least 2 months salary, which translates to the huge industry valuation, linking to adornment theory and the projected value of self.
The concept of showing love through an engagement ring is a fairly new concept. Jewellery designer, Aja Raden explained in the case of diamonds “people want things because they’ve been told to want them. De Beers has convinced hundreds of millions of people over almost over a century so effectively they want a diamond” continuing “De Beers invented a way to sell them to people… the least desirable kind” (Kohn, 2022). We live in a post-truth environment in modern society where people are okay with lack of information. Scientific thinking is fact but business thinking is purely perspective; if a business can validate a story with a coherent viewpoint - then it can be considered fact and they can challenge or sell anything (Chenecey, 2024).
The film suggests diamonds are one of the most common gems, but De Beers has developed an image of rarity for the stone which potentially contradicts the reality, “its monopolistic control violates US antitrust laws but the cartel has successfully kept its executives beyond the reach of American justice” (Kohn, 2022). Now, “the company can regulate supply and select deals, increasing it in good years and reducing it in bad to keep prices high” (Kohn, 2022).
According to How Stuff Works, “De Beers then told consumers to hold onto their family's diamond jewellery and to cherish it as heirlooms. This eliminated the aftermarket for diamonds, which further enabled De Beers to control the market. Without people selling their diamonds back to jewellers or to other people, the demand for new diamonds increased” (Bonsor, n.d.). The need for new diamonds encourages further consumption.
The discourse on ethical diamonds means it’s now a societal expectation that the company now publishes annual UK Modern Slavery Act statement reports. A positive step of accountability from those in the industry who can make a difference. Additionally, they have developed a ‘Code of Origin’, “a customised code unique to your diamond that provides assurance that it is natural, it has followed industry-leading ethical standards” (Newman, 2022).
De Beers has managed to advance competitors in the field, from Tiffany & Co., Bulgari and Swarovski in terms of diamond production. However, one of the most imminent threats to the industry (and therefore the company) became:
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Conflict diamonds
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Synthetic diamonds.
In the present day, De Beers has a number of new ventures and a multidimensional identity. This is a result of ventures such as Lightbox (lab-grown diamonds), Tracr (a blockchain / AI platform to trace diamonds from the source) and GemFair (an effort to formalise small-scale alluvial mining), De Beers Institute of Diamonds (offering classes for students to learn more about the diamond industry) and more. Brand worlds are heading in the direction of selling services and experiences on top of products (Chenecey, 2024).
Critics suspect Stephen Lussier’s (CEO of Forevermark at De Beers) involvement in the Nothing Lasts Forever film suggests deeper issues in the organisation as the company have refused to engage with press until now.
(Kohn, 2022)
(Davies, 2024)
The 4C’s by De Beers & GIA (The Gemological Institute of America)
Diamonds have a cultural significance in comparison to other gemstones with its connotations of power, strength, love and health throughout history. They are valued by what is known as the 4C’s: cut, clarity, carat weight and colour (Times of India Education, 2023). The 4C’s were developed by the GIA (The Gemological Institute of America) in partnership with De Beers as universal benchmarks to judge diamond quality.
In an analysis by Frost & Sullivan in 2014, they discovered an additional 2C’s which play into customers' buying process: Conscience and Carbon, “this illustrates the increasing awareness in buyers about diamond origins and about impact on environment” (Frost & Sullivan, 2014).
Cut
Cut refers to “proportioning, symmetry, and polish of a diamond rather than the shape of the stone. The cut of a diamond takes into account the depth of the stone and how well the diamond’s facets interact with light” (Olive Ave Jewelry, n.d.). As the Earth’s hardest mineral, it must be cut using other diamonds (e.g. diamond-bladed edges) or even lasers in the cleaving and sawing methods.
(GIA, n.d.)
(Olive Ave Jewelry, n.d.)
Carat Weight
Carat weight can be reflected in the visual size of a diamond based on the typical cut of a diamond but ultimately refers to weight.
(GIA, n.d.)
Colour
Colour as reflected in the name references, “higher colour refers to lack of colour or amount of white colour in a diamond. An ideal diamond is colourless and shows as much white as possible” (Olive Ave Jewelry, n.d.). Diamonds vary from colourless to black, and can be transparent, translucent, or opaque. Colourless or pale blue stones are most valued, but are rare. The rarest coloured diamonds come in red, blue and green; with violet, orange and yellow being more common. The colour of diamonds may be changed by exposure to intense radiation (as released in a nuclear reactor or by a particle accelerator) or by heat treatment (The Editors of Encyclopaedia Britannica, 2024). Additionally, the amount of nitrogen in the diamond can affect colour (Gorvett, 2022).
(Olive Ave Jewelry, n.d.)
(GIA, n.d.)
Clarity
Clarity refers to the imperfections of a diamond. In an educational segment on Olive Ave Jewelry’s website, they write “many times the inclusions in a diamond are not visible to the naked eye and can be seen only under a loupe/microscope. These diamonds are considered “Eye-Clean”, which means there are inclusions present, but they do not take away from the physical beauty of the diamond” (Olive Ave Jewelry, n.d.).
(Olive Ave Jewellry, n.d.)
From a consumer perspective of 58 respondents, this is the degree of importance people place on the 4C’s. In terms of conscious capitalism, price is the ultimate driver of pursuit but marketers have crafted it to feel like there is an element of choice as it is more interesting to marketers for creating consumer content (Chenecey, 2024). Unfortunately, the additional 2C’s were not added to the survey at the time of publishing.
These factors can be graded by the GIA as part of a company offering through their ‘Diamond Grading Report’ and ‘Diamond Origin Report’ among others. This can be a form of added value and verification to the customer, as it allows them to learn more about the diamond quality and origin if it is naturally mined. Additionally, the institute offers reports for laboratory-grown diamonds but not diamond simulants.
Inversely, the GIA has faced controversy with suggestions in the Nothing Lasts Forever film of an industry for creating illegitimate certificates and origin stories for natural diamonds that are in fact synthetic. In fact, diamonds are more common than the public has been led to believe. Jewellery designer Aja Raden comments “your big diamond might be fake too even if you have that nice GIA certificate” (Kohn, 2022).
Example of a Diamond Grading Report
What factors influence your decision when choosing between natural and lab-grown diamonds?
(GIA, n.d.)
Diamonds as Symbols of Wealth & Status
Diamonds hold historical significance as a symbol of wealth and status. Based on the authority of written sources, in ancient times, diamonds were worn by royalty to show their power and wealth, “In 1477, Archduke Maximillian of Austria commissioned the very first diamond engagement ring on record for his betrothed, Mary of Burgundy. This sparked a trend for diamond rings among European aristocracy and nobility” (American Gem Society, n.d.).
The diamonds value transcends over countries and cultures throughout history, “Ancient Egyptians believed diamonds represented the sun and signified power and courage. In India, they were considered divine objects and worn as talismans to ward off evil spirits”. To add, “the Romans believed Cupid’s arrows were tipped in diamonds, making anyone on the receiving end of the arrow instantly fall in love” (Only Natural Diamonds, n.d.).
(Reiser, n.d.).
Notably, the world’s largest diamond, The Cullinan (also known as The Second Star of Africa), was discovered in 1905 at the Premier Mine in Transvaal, South Africa (The Royal Collection Trust, n.d.). At an astonishing 3106 carats, the almost flawless diamond has been “cut into 9 large diamonds, 96 small diamonds, and nearly 20 carats of unpolished chips” (Brilliance, n.d.).
The magnificent diamond (specifically The Cullinan II Diamond) has been incorporated into the Imperial State Crown within the Crown Jewels that hold a place of rich history within the Royal Family - found at The Tower of London.
(Gorvett, 2022)
(Royal Collection Trust / His Majesty King Charles III, 2023)
“The Crown Jewels are the nation’s most precious treasures, including the sacred Coronation Regalia used at the Coronations of new monarchs. Comprising more than 100 objects and over 23,000 gemstones, the Crown Jewels are priceless, being of incalculable cultural, historical, and symbolic value. They are part of the Royal Collection, held in trust by the monarch for the nation” (Historic Royal Palaces, n.d.).
However, there is discourse on who the diamonds truly belong to. In particular, the ethics of the Cullinan diamond as “many of the Crown Jewels come from countries that were colonised by the British. As a result of this legacy, the Cullinan diamonds remain controversial in South Africa, and recently there have been calls [and pressure on the British monarchy] to return them,” in a new online petition with over 8,000 signatures (Gorvett, 2022). The diamond was discovered while South Africa was still under British colonial occupation. According to Historic Royal Palaces, “the gift was intended to symbolise good intentions between England and South Africa after the South African (Anglo-Boer) war” (Historic Royal Palaces, n.d.).
Johannesburg based lawyer and activist - Mothusi Kamaga told Reuters, “The diamond needs to come to South Africa. It needs to be a sign of our pride, our heritage and our culture;” adding, “I think generally the African people are starting to realise that to decolonize is not just to let people have certain freedoms, but it’s also to take back what has been expropriated from us” (Reuters, 2023).
(Royal Collection Trust, 2023).
(Gorvett, 2022)