The Gemmological Institute of America (GIA) is taking steps to protect the integrity of the natural diamond industry, which has been facing significant challenges due to the rise of lab-grown diamonds (LGDs). As part of its effort to differentiate between natural and lab-grown diamonds, the GIA has announced that it will no longer apply its internationally recognized 4Cs grading system—color, clarity, cut, and carat weight—to LGDs. Instead, starting later this year, LGDs submitted to the GIA will receive simplified descriptors, categorized as either "premium" or "standard." If a diamond's quality is subpar, it may not receive any grade at all.

The 4Cs grading system has long been the standard for determining a diamond's value, with various respected grading agencies around the world, including the GIA, the International Gemmological Institute (IGI), an HRD, contributing to the industry’s framework. GIA holds particular weight on the global stage. However, with the emergence of lab-grown diamonds, the natural diamond industry has faced increased competition, particularly due to LGDs being priced at a fraction, around a third of the cost of their natural counterparts.

The GIA’s move to separate the grading of natural and lab-grown diamonds is a strategic effort to highlight the distinction between the two. The move also comes at a time when the natural diamond industry is struggling to cope with a 30% drop in global prices over the past two years. To make matters worse, this disruption has caused widespread ramifications in key diamond manufacturing hubs, such as Surat, India. The local diamond industry has seen drastic cuts in wages and work hours, particularly affecting artisans, as the demand for natural diamonds declines. With nine out of ten diamonds sold worldwide polished in Surat, the socio-economic impact of this shift has created a humanitarian crisis in the region.

As GIA takes these steps to maintain clarity and differentiation between natural and lab-grown diamonds, it remains to be seen whether consumers will truly care about the loss of the 4Cs certification for LGDs. For now, the natural diamond industry is grappling with how to respond to this transformative, technology-driven disruption.

Without the 4c’s will Lab Grown Diamonds attract the consumers wishing to buy LGD or shift from Natural purchase to LGD jewellery and how will the retailer explain to the consumers about this are some of the many questions that looms large within the LGD sector.