Don't get blood on your hands

VALENTINE'S Day is approaching, but Hollywood blockbuster Blood Diamond may rub the shine off dreams of receiving a sparkling rock. There is nothing romantic about the suffering of thousands of innocents caught up in bloody civil wars to control this lucrative trade, as portrayed in the film, starring Leonardo DiCaprio, below.
Yet the World Diamond Council is determined to reassure consumers that so-called conflict diamonds, the subject of the new film, now represent only 1% of world trade. Furthermore, it stresses that revenue from the legitimate industry is vital for improved healthcare and education across Africa. Don't stop buying diamonds is its predictable message.
The United Nations defines conflict diamonds as "diamonds that originate from areas controlled by forces or factions opposed to legitimate and internationally recognised governments, and are used to fund military action in opposition to those governments, or in contravention of the decisions of the Security Council".
The film is set against the background of barbaric fighting in Sierra Leone in the late 1990s, paid for by conflict diamonds, which accounted for about 4% of the world's diamond production at that time. The brutality and dehumanising of child soldiers in particular led to an outcry resulting in the Kimberley Process Certification Scheme, which requires participating governments to guarantee legal authenticity of any stones sold within their jurisdiction.
So should you buy or shouldn't you? See the film and make up your own mind. But if you agree the legitimate trade should be supported then make sure you only buy via reputable dealers that offer full authentication.
Illegal gems are believed to still come from three countries. Republic of Congo has been suspended from participation in the Kimberley Process and conflict diamonds may still be coming from Liberia and the Ivory Coast.
Diamonds have never been bought with an eye to a quick buck, but have long been prized for their enduring quality and tradability. Countries, governments, banks and stock markets can all crash, but with diamonds you can put a fortune in your pocket, flee and begin life again.
The precious gems can be bought in two forms. Uncut stones are purchased for pure investment from dealers or over the internet. These must be kept in a safe at home, or in a safe-deposit box, and should be insured. Alternatively, you can buy polished stones to set in jewellery or which have already been set.
A spokesman for Koppelman's, in the heart of Britain's diamond market in London's Hatton Garden, said: "Uncut stones have been doing well over the past few years. Not soaring away but steadily rising.
"But jewellery hasn't been doing so well. It's been flat. No one knows why. We would all like the answer, but that's the way it is."
In truth, jewellery can't be considered a serious investment at all. Fashion jewellery in particular has a resale value of a fraction of its purchase price. Like buying a new car, it will depreciate the minute it sits on your finger. Over time, though, it can hold its worth. Gems passed from generation to generation can prove a good hedge against inflation.
As with paintings or fine wines, the more you spend, the more you stand to make. The bigger and better the quality of the gem, the more it becomes a serious investment which will appreciate over time.
But you need to pay at least £3,000 or £4,000 to be in this league. Fine designer jewellery with a big sparkler will appreciate most of all, but again will be priced upwards of £3,000.
Keep in mind four things when shopping for a diamond: cut, colour, clarity and carat. The latter refers to the gem's weight. Typical engagement rings are between half and one carat. The most valuable diamonds are colourless, and are graded D to Z, with a perfectly colourless diamond graded D. Yellow and pink diamonds have become fashionable alternatives in recent years. Unusual colours are particularly prized by collectors for their rarity.
How much a diamond sparkles will depend on its cut and clarity, as these determine how light passes through and reflects off a gem. A 'flawless' diamond will be classified IF, which stands for internally flawless.
Stones are most often cut 58 times (facets in industry jargon). Round and princess (square) settings are the most common choice for engagement rings, so if buying for a present you may wish to check before opting for a heart or pear-shaped stone.
Watch for terms such as 'clarity enhanced', as this means the diamond has been artificially altered, not given an extra polish. It is well worth ensuring the diamond bought has a certificate verifying its quality from an independent laboratory. Any reputable jeweller should not be afraid of a buyer wishing to have the quality of their stone verified in this way.
And don't forget insurance. List any expensive jewellery separately under your home insurance policy, and make sure you have all-risks cover which will pay up if you lose jewellery while away from home.
Websites such as www.cooldiamonds.com have investment stones and jewellery starting at below £1,000. Visit www.diamondfacts.org to be sure you avoid blood stones.
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