Vendor Validation 101: What Is It And Why It Matters
Vendor validation is the process that confirms a supplier as a legitimate entity. When we purchase diamonds, our buying team carefully vets vendors on the Diamond Standard Exchange (DSE). The DSE is where all natural diamonds are purchased for Diamond Standard commodities.
Diamond Standard only buys from registered and accredited vendors, who are established diamond manufacturers and dealers around the world. All vendors must be existing clients of one of the two major gemstone certification organizations: the International Gemological Institute (IGI) or the Gemological Institute of America (GIA). Additionally, most vendors listed on the DSE are De Beers Sightholders and, therefore, previously accredited.
To trade on the DSE, it is mandatory for vendors to participate in the Kimberley Process Certification Scheme (KPCS)—established to stop the trading of diamonds from conflicted regions. Complying with the KPCS requires vendors to commit to transparent practices, trade with only other KPCS members, and certify shipments as conflict-free. Verifying vendor membership is a crucial step in our rigorous ‘Know Your Vendor’ procedure overseen by our compliance department.
Diamond Grading with Our Partners at IGI and GIA
To determine the value of each diamond in our coins, we rely heavily on the IGI and GIA. Both organizations grade diamonds according to a process that assesses over twenty characteristics of each stone. These features include, but are not limited to, the 4Cs, dimension, fluorescence, and confirmation of natural, untreated diamonds. If you want to learn more about these principal traits of diamonds, please visit our post Buying Natural Diamonds and the 4Cs.
With an exception of some stones between 0.18-0.25 carats, all diamonds purchased are pre-graded by GIA. After diamonds are purchased, IGI labs verify that the GIA report matches the diamond we received. For the few diamonds purchased ungraded, IGI completes a full grading procedure to create an accessible report. Both GIA and IGI reports have a unique identification number that can be traced back to the diamond by a microscopic inscription of the report number on its girdle—the edge that goes around the diamond.
Natural vs. Lab-Grown Diamonds
We do not buy or engage with any lab grown diamonds. Lab grown diamonds are produced without limitation and, therefore, have significantly less value. Upon receiving stones, IGI screens using a machine with spectroscopic technology to ensure our coins only contain natural diamonds.
Transparency: Your Coin Identified
Diamond Standard works to make our investors as confident as possible in their purchase. Motivated by the importance of transparency, we provide an effortless way to identify each diamond in your coin. To see the simplicity of verifying your Diamond Standard coin on the blockchain, and its diamonds with IGI and GIA, click here to watch our video on YouTube.
Web 3.0 Is Coming, and Here's What That Really Means for Diamonds
We recently attended Jewelers Circular Keystone (JCK) in Las Vegas, the largest jewelry trade show in North America. At JCK, it couldn’t have been more clear: blockchain technology is revolutionizing the diamond industry.
De Beers — the world’s leading diamond supplier — is deploying a new technology called Tracr that allows diamonds to be tracked from mine, to market, to your hands. Tracr is a distributed ledger diamond blockchain that provides easy access to gem specifics dating back to when the stone was mined. Various suppliers have already been granted access to the technology, and the list is growing.
With diamonds moving into the world of Web 3.0, we are excited to be in the heart of this growing technology. By building an ultra-secure coin around the diamonds, dots, chip, and QR code, we have achieved the world’s first and only regulator-approved method to produce, deliver, and transact a fair and fungible standardized diamond commodity.
To learn more about our blockchain token and wireless encryption technology please visit our post: Let’s Get Physical: Perfecting the Diamond Standard Coin.
Join us in the pursuit of exploring commodities
and cryptos — and, of course, diamonds.
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