Israeli Bourse Bans Synthetics From Trading Floor

In a sign of the ongoing tension between the natural and lab-grown diamond sectors, the Israeli Diamond Exchange has banned man-made diamonds from its trading floor.

The decision to forbid trading of created stones on the bourse floor was made in late December, says spokeswoman Sharon Gefen. She adds that while exchange members are free to trade in lab-grown diamonds outside the bourse, they must commit to full disclosure or face suspension. 

In addition, Israel’s diamond controller has decreed that the diamond center’s customs office will accept only natural diamonds, Gefen says.

“Synthetics are not within his jurisdiction and therefore must be treated for customs purposes as any other goods imported or exported,” she adds.

Ernie Blom, president of the World Federation of Diamond Bourses, says he knows of no other trading club that has banned synthetic diamonds from its floor and seemed surprised when informed of the decision. 

New York City’s Diamond Dealers Club tells JCK it is not considering a similar policy, pointing to a recent statement from its president, Reuven Kaufman, that dealing in synthetic diamonds is “neither illegal or unethical” if it’s done with full disclosure.

 

 

JCK News Director