Besides lasting ‘forever’, diamonds are also a girl’s best friend. But conflict diamonds are less so, which is why diamond and gold exchanges have upped the efforts at eradicating diamonds from possible conflict zones.
These diamonds often fund rebel and terrorist activity in areas such as Sierra Leone, the Democratic Republic of Congo, and Angola. This aids terrorist groups in their activities. Many of these diamonds, which should rightly be labelled as ‘conflict diamonds’ still reach the world market for sale to unsuspecting buyers.
The Kimberley Process Certification Scheme is one initiative to prevent the sale of ‘blood diamonds’ on the international market. This means that participants in this initiative certify their diamonds. They have to comply with various measures to satisfy consumers and other people involved in the diamond industry that their diamonds are conflict-free.
The World Federation of Diamond Bourses (WFDB) also plays an important role in assuring their 28 members only deal in conflict-free diamonds. One of the most recent expulsions from the World Federation of Diamond Bourses is that of Marange in the east of Zimbabwe in 2009. The mine failed to follow the rules of the Kimberley Process and this means that all diamonds from this area may now be banned from the international trade; diamonds from the Murowa deposits do have Kimberley Process certificates so the ban does not affect this area.
Another recent expulsion is that of Venezuela. This country has withdrawn from the Kimberley Process for two years, starting in 2008. The WFDB has a rule regarding rough diamonds: mines may only trade rough diamonds that have Kimberley Process certificates. Venezuela did not comply with this rule and faced expulsion for the infringement.
All this is good news for consumers and dealers alike. It means that they can be sure that diamonds from a WFDB member country’s diamond and gold exchange are conflict-free.
Author bio:
The Gold Company wrote this article about how diamond and gold exchanges benefit the diamond industry.