The Bradenton Herald
July 30, 2006

A diamond dilemma; Be wary of 'blood diamonds'
by Robin Roger

People buying diamond rings often know to look for the four c's: color, cut, clarity and carat. But there's actually a fifth c: conflict.

Conflict diamonds, also known as blood diamonds, come from African countries like Angola, Sierra Leone and the Democratic Republic of Congo. Money from the export and selling of the diamonds has been used to fuel civil wars there. Often, unwitting consumers become part of the issue.

"We didn't know anything about it," said Ethyl Arnold, 76, of Palmetto, who visited a jewelry shop in downtown Bradenton with her husband recently. "The younger generation is more up on that than the older generation."

But as information spreads about conflict diamonds, more and more customers are questioning jewelers about where their diamonds come from.

"The Blood Diamond," a movie set to debut Dec. 15 starring Leonardo DiCaprio as a diamond smuggler in Sierra Leone, is expected to increase interest and even stir up controversy on the issue.

Some local jewelers admit they don't know much about conflict diamonds, but others have researched the issue.

Jack Webb, of Webb Brothers Goldsmiths in Palmetto, recently read an article in a trade magazine warning jewel-ers to be prepared to answer questions about conflict diamonds once "The Blood Diamond" comes out. But, he admit-ted, after three years in business on Riverside Drive he has not been asked one question about the topic. Most people don't know about the problem, he said, probably because they buy diamonds so infrequently.

Webb and his brother made conflict-free diamonds part of their quality statement. A sign on the wall lists the stan-dards of the company. One of the last sentences reads, "Our vendors warranty they do not sell conflict diamonds."

The vendor Webb uses - Stuller Inc. - includes a statement on all of its invoices stating that they purchase diamonds from sources not involved in the conflict.

"You'd almost need to go out of your way to get a conflict diamond," Webb said. However, one of the places where you might run into conflict diamonds is on the Internet, he added.

As a retailer, Vanessa Baugh said she must trust a vendor's word about where they get their diamonds. Her store, Vanessa Fine Jewelry on Main Street in Lakewood Ranch, uses two diamond vendors, one in the United States and an-other in Israel. Baugh said she waited until she had researched the company in Israel and was satisfied with its practices before doing business with them.

Still, Baugh said there is always room for doubt.

"Can I 100 percent say that we do not carry a single conflict diamond? No," she said. "But we try to do everything we can to make sure we're not involved with anything along those lines."

She believes most jewelers want to do the right thing and do not want to sell conflict diamonds. Any store that car-ries conflict diamonds is probably not operating above board in the first place, she said.

"It's inexcusable," Baugh said. "It's a terrible thought that something so beautiful could be used for something so horrible."

Gemesis, a local company that creates diamonds in its plant on Professional Parkway in Lakewood Ranch, is stay-ing out of the argument.

"We're part of the industry as a whole and any negative that comes against the industry hurts us as well," said Clark McEwen, chief operating officer. "We are an alternative, but we definitely don't try to use that in our marketing in any way."

The company uses a tiny seed of a diamond and graphite and applies heat and pressure to create a cultured dia-mond. McEwen said the diamonds they create are 100 percent the same as natural diamonds mined from the earth. The one exception is that Gemesis specializes in creating what they call "fancy yellow" diamonds. Jewelers use Gemesis diamonds alongside natural white diamonds.

Conflict tapering off
Some in the diamond industry said conflict diamonds are not as common as they once were.

"Right now there is sporadic fighting going on, but the conflicts that caused this whole thing are essentially over," said Russell Shor, a senior industry analyst at the Gemological Institute of America. "Plus, the diamonds that were at issue probably represented at the height of it only 3 or 4 percent of the diamonds in the market."

These days, Shor said, conflict diamonds probably account for less than 1 percent of the diamonds in circulation. Angola is no longer at war and a quarter of the world's diamond production comes from Angola, South Africa and Bot-swana, he said.

The diamond industry has worked as quickly as it could to remedy the problem of conflict diamonds, Shor said, but met roadblocks along the way as different countries struggled to work together.

In 2002 the United Nations made an attempt to decrease the number of conflict diamonds in the world market by approving the Kimberley Process Certification Scheme. It required participating countries to meet three requirements: ensuring that the sale of any diamond originating from the country does not fund a rebel group, making sure that a cer-tificate accompanies each diamond export and ensuring that no diamond has been exported to or imported from a coun-try that does not participate in the process.

DeBeers, the largest diamond mining company in the world, and the World Diamond Council are participates along with more than 40 countries including Canada and the United States.

Since participation is voluntary and self-enforced, critics have said there is no guarantee that the Kimberley Process has successfully lowered the number of conflict diamonds in circulation. Activist groups have also argued that the proc-ess ignores human rights violations in countries that are not at war and diamonds that may have been used to fund ter-rorist groups like al-Qaida and Hezbollah.

"The Kimberley Process is not solving the problem," said Beth Gerstein, a director of Diamonds for Africa, a non-profit that aims to end the conflict-diamond trade. "It only deals with the UN's definition of a conflict diamond. It does not address local brutality in diamond mining, child labor or environmental issues."

Tracking diamonds
Diamonds for Africa collects used diamond jewelry and cash and donates it to the bushmen in Botswana and chil-dren in the Democratic Republic of Congo and Sierra Leone.

The organization recently sent out a release about the movie "The Blood Diamond." Gerstein thinks Hollywood will put a spotlight on the issue and push the industry into the mainstream.

"The only way to ensure that a diamond is 100 percent conflict free is to purchase from Canadian mines, as they track and monitor above and beyond current controls," the nonprofit says.

Gerstein also owns Brilliant Earth, a company that deals solely in diamonds from Canada. She started Brilliant Earth with her husband a year ago when they got engaged and were looking for a conflict-free diamond.

They had heard about the issue on 60 Minutes and had read about the civil wars being waged in Africa. They had difficulty finding a jeweler that carried conflict-free diamonds.

"We were pretty surprised that most of the retailers did not know about these issues and were selling us on the beauty of the diamond," she said.

Gerstein researched the industry by contacting non-governmental organizations such as Partnership Africa Canada and Global Witness.

Brilliant Earth then partnered with Canadian mines where diamonds are tracked from the mine through cutting, polishing, transport and the customer.

"Any diamond that gets through that does not meet those high ethical standards will taint the supply," she said.