Commitment rings stand as one of the pricier investments many individuals will make throughout their lifetime.Thank you for reading this post, don't forget to subscribe!
However, professionals have cautioned that expenses may escalate if fresh regulations aiming to restrict the commerce of Russian diamonds come into effect at the beginning of next year.
An average ring comes with a price tag of roughly £1,900 to £2,000.
Nevertheless, high-ranking sources in the industry informed This Is Money that the cost of precious stones could surge by a minimum of ten per cent under the potential sanctions deliberated by the G7.
The potential sanctions targeting the Russian diamond trade may lead to a 10% rise in commitment ring prices.
This, consequently, might also elevate the prices of other accessories such as earrings and necklaces.
Belgium has proposed the scrutiny of diamonds to verify their origin, ensuring they do not originate from Russia, and then uploading the data to an online tracing system.
Nonetheless, as per Ronny Vandelinden, president of the International Diamond Manufacturers Association and vice-president of the World Diamond Council, the scheme could enforce ‘significant’ financial burdens on ordinary consumers.
There are apprehensions that levies might be imposed on the gemstones, and the testing process could disrupt the supply chain, leading to a hike in diamond prices.
Belgium contends that its regulations would be more adept than those of others in identifying Russian diamonds.
‘The intended G7 sanctions on Russian diamonds, instigated by Belgium, would undoubtedly deal a severe blow to the jewelry market if it materializes,’ remarked Mr. Vandelinden.
‘This will elevate costs – eventually, we will have to transfer the additional costs to the consumer.
‘This signifies that should the G7 execute this plan, we can anticipate a substantial surge in prices of diamond jewelry.’
While experts concur on the necessity of imposing sanctions on Russia following its invasion of Ukraine, they argue that substitute strategies have not been thoroughly contemplated.
These have been anchored on attestations from suppliers affirming that the diamonds do not originate from Russia – a streamlined process supported by African nations.
Russia dominates as the foremost producer of diamonds globally, while other major contributors encompass Botswana, Canada, the Democratic Republic of the Congo, and South Africa in southern Africa.
African countries engaged in diamond mining, such as Botswana and South Africa, are particularly anxious that additional expenses and delays could inflict irreversible harm on their economies.
Despite backing the sanctions, they are of the opinion that this specific approach of identification and sales restraint will be more detrimental than beneficial.
Additionally, Belgium commands the largest stake in the industry within the EU, as the city of Antwerp serves as a key hub for diamond cutting.
Billions of pounds worth of diamonds pass through the district annually and are traded there.
An official from Belgium expressed skepticism regarding the likelihood of their plans ‘prompting a surge of 10 per cent or more’ in prices.
He elucidated that under the plan, up to 70 percent of the world’s uncut diamonds would be directed to Antwerp, as it would exclude Russian production – a reduction from the current 80 percent flow through the city.
He conveyed, ‘Despite the current sanctions in the UK and US, Russian conflict diamonds are infiltrating the Western markets.
‘The proposal advanced by Belgium aims to thwart all plausible fraudulent schemes that might sustain the Russian diamond trade, essentially putting an end to the financing of the war in Ukraine through the Russian conflict diamond trade.
The official emphasized, ‘The principles underpinning the Belgian proposal are the sole verifiable system that will furnish the jewelry sector and major retail brands with credibility to assure their clientele that they are no longer vending products incorporating conflict diamonds. ‘