Blockchain, Chain of Custody and Trace Elements: An Overview of Tracking and Traceability Opportunities in the Gem Industry

Abstract

Recent developments have brought due diligence, along with tracking and traceability, to the forefront of discussions and requirements in the diamond, coloured stone and pearl industries. This is a result of consumer demands for detailed information on the provenance of gems, banking requirements aiming to reduce risk, industry and company initiatives seeking to bring greater transparency, and growing government legislation on mineral supply chains. To address this trend, certification mechanisms and technologies (such as blockchain) are being developed to solve inherent traceability challenges. As applied to gems, such standards and associated technology could benefit from the support of existing gemmological approaches (e.g. geographical origin determination) to enhance traceability and transparency measures. Recent initiatives are not just limited to corporate social responsibility reporting and due diligence requirements, but they also embrace supply chain management (including quality control and process improvements)-for example, to correctly identify and disclose treated and synthetic materials throughout the jewellery industry-as well as address consumer demand for provenance information. This article provides an overview of current trends and developments in the tracking and traceability of gems, along with an explanation of the terms used in this context.