AGTA Bans Synthetics from Shows: Why Now?
Gary Roskin
Roskin Gem News Report
By now, you should have read that the American Gem Trade Association (AGTA) plans on banning all synthetic gem materials from their GemFair trade shows beginning in 2025.
Why? Why does AGTA want to ban all synthetic gemstones from the show floor?
“We know synthetic gemstones have been around for a century,” states John Ford, chief executive officer for the AGTA. This is true. The gemstone industry has had synthetic ruby for over a century, and has been using synthetic sapphire, synthetic emerald, synthetic opal, synthetic alexandrite, synthetic amethyst, and more in jewelry for decades. In fact, AGTA’s Code of Ethics and Disclosure Requirements have included specifics for man made gem materials for decades. “Basically, it [the ban on all synthetics] was strictly related to the chaos that had been created by synthetics in the diamond industry, and that our membership and board members were concerned of the adverse effects that synthetics could potentially cause in the gemstone industry.”
So Many Questions
But if synthetic diamond is the concern, why throw in all synthetics? Aren’t AGTA members required to disclose whether a gem material is man-made or not? And if AGTA members are required to disclose, (see the Code of Ethics below), why then would the buyers have be worried about what is being sold in the GemFair?
And hasn’t the jewelry industry embraced synthetic colored gems for decades in items like class rings, mothers pins, and fashion jewelry? Hasn’t CZ, cubic zirconia, a man-made gem material, been a staple for fashion? And there doesn’t seem to be any confusion with any of that.
So why now eliminate all synthetic gems? Why not just synthetic diamond?
“Well, you have to understand, we’re in the natural color gemstone business. That’s in our bylaws. We are a natural color gemstone business. And the action was taken by the board because of concerns about the adverse effects that it can potentially cause in the color gemstone industry.”
Ford went on to say that AGTA’s core goals are for the betterment of the color gemstone industry, the membership, and to protect the end consumer. And that is why the decision was made to ban all lab grown synthetic stones “because of our concern for the overall color gemstone market.”
Not that it will have Major Effect
“We only had two (or three) companies, out of approximately 300 companies, that were exhibiting synthetic in loose or jewelry this year. So it’s not a widespread amount of people in our organization.”
This new ban as you have read does not eliminate all sales of synthetics by AGTA members. This new ruling is just about what can or cannot be sold at the AGTA GemFair trade shows. “We do have people in the organization, in our membership, that sell them outside of the show,” says Ford. “That’s fine. We’re not against that. But synthetic gemstones can no longer be exhibited or traded at the gem shows.”
Déjà Vu All Over Again
Didn’t this happen once before, that AGTA tried to ban the selling of synthetics in the GemFair. We refer to Chatham Created Gems and the efforts of AGTA to keep created gems out of the show. According to Chatham’s writings on page 209 in The Chatham Legacy, an American Story, AGTA and Chatham locked horns, and Chatham “sued the board of AGTA for antitrust and conspiracy to restrain my trade.” A truce was eventually called and Chatham was allowed to exhibit. Is it possible we could see this again?
Overly Cautious
The AGTA board of directors are concerned about the disruptions created by synthetics in the diamond industry. But didn’t the colored gemstone industry go through a similar disruption over a hundred years ago? Are they concerned that this disruption could today happen again… that synthetic emerald, ruby, and sapphire could make major plays into the natural market – because of what’s happening with the current diamond market?
Ford asks back, “What makes you think the same thing, the same adverse effects cannot happen in the colored gemstone industry?”
“Well, our board unanimously was concerned about the adverse effects that the synthetics could potentially cause in the colored gemstone industry. And that’s why they took the unanimous action that they did.”
“I think synthetic gems have their place in the market,” notes Ford. However, with the new show rule, just not at the AGTA GemFair.
“We have all kind of show rules,” notes Ford. This is just one more. And according to Ford, “the response from our membership has been overwhelmingly positive for the action.”
Aren’t Cultured Pearls Confusing?
If synthetic gems are causing an adverse effect on the natural gem business, do not cultured pearls cause an adverse effect on the natural pearl business? Why not ban them as well?
“We were addressing synthetics,” says Ford. “As you know, there’s a huge difference between a cultured pearl and a stone that’s being grown in a laboratory. This was not intended to have any effect on cultured pearls.”
The Last Word
“As you know, AGTA is a leader in the colored gemstone industry. And when you’re a leader, leaders sometimes have to step out, when you feel strongly based on your convictions that you need to do something. And that’s what the board of directors did.”
AGTA Code of Ethics:
The American Gem Trade Association, Inc. (“AGTA”) is an organization of members dedicated to promoting, educating and maintaining fair business practices in buying, selling and trading natural colored gemstones, pearls, natural colored diamonds and colored stone manufactured jewelry (the “colored gemstone industry”).
Part M
To describe synthesized materials that have essentially the same physical, chemical, and optical properties as gemstones of natural origin, each AGTA member shall use only the word “synthetic” or some other word or phrase of like meaning approved by the Federal Trade Commission so as to clearly disclose the nature of such product and the fact that it is not a natural gemstone. The terms “laboratory grown”, “man-made”, and “lab-created” are deemed and construed to be words or phrases of like meaning as the term “synthetic”. No AGTA member shall use the word “faux” or other substantially similar word or phrase to describe materials, which are “synthetic”, “laboratory grown”, “man-made”, or “lab-created”. An AGTA member shall only use the words “simulated” for simulants or “imitation” for imitations.
