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The world’s two most powerful diamond companies are making quiet but decisive moves to counter what some insiders are calling an existential threat to the industry — the growing popularity of lab-grown diamonds.

In May, Signet Jewelers — the world’s biggest diamond retailer, with chains that include Jared, Zales, Kay and Blue Nile — began printing a “buyer beware” disclaimer of sorts on the receipts of all of its lab grown diamond sales, warning customers that the bauble they bought could plummet in value.

Lab-grown diamonds’ “relative abundance may not ensure that their value will hold over time,” Signet’s receipts now state.

The retailer is also training its 20,000 sales associates to educate shoppers about natural diamonds’ unique attributes, including their enduring emotional and financial value, Signet spokesperson Katie Spencer told The Post.

Meanwhile, De Beers — the world’s largest diamond producer — late last month unveiled a new diamond ‘verification’ machine that it’s selling to retailers as a tool to give buyers confidence that they are purchasing a natural diamond.

LGDs and mined rocks are nearly indistinguishable to the naked eye — even to trained jewelers.

The developments come as Signet and De Beers aim to deliver a gut punch to so-called LGDs, with the companies preparing major marketing blitzes for real diamonds in the coming year as the industry anticipates a long-awaited, post-pandemic surge of wedding engagements.

“This is the first time in at least 20 years that the largest seller and producer have come together to take a stand on natural diamonds,” diamond analyst Paul Zimnisky told The Post.

Signet is slated to report quarterly earnings on Thursday.

A year ago, the diamond industry still seemed caught in the headlights as the popularity and profitability of LGDs soared. De Beers poured money into a fledgling LGD label called Lightbox as celebrities like Meghan Markle, Billie Eilish and Leonardo DiCaprio touted them as “conflict-free” and environmentally friendly to Gen Z.

The LGD trend has been devastating for De Beers, which reported a 21% sales decline in the quarter ended in mid-May compared to a year ago. That’s on top of the 36% sales drop in 2023 when De Beers took a $1.6 billion writedown — and blamed it partly on the rise of lab grown diamonds, according to Northcoast Research.

“LGDs account for 19% of the market and are a real threat, growing to as much as 22% this year,” according to Zimnisky.

But distributors of real diamonds say trends lately have turned in their favor: LGDs have gotten so cheap that last year’s profit margins — as high as 50% at retail — are fast evaporating.

Last month, De Beers slashed the price of its Lightbox LGD brand by 37% to $500 a carat citing plummeting wholesale prices. This was on top of a 10% price reduction by the diamond giant in January.

In a little-noticed disclosure on May 31, De Beers also revealed that its Element Six factories will end a six-year stint making lab-grown diamonds and return to their previous focus on making diamonds for industrial uses.

While China has long been the largest producer of man-made diamonds, India began ramping up over the past several years focusing on producing 3-, 4- and 5-carat polished synthetic diamonds.

“We believe that lab grown diamond production is greater than expected with supplies still exceeding demand, pressuring prices down,” Northcoast Research analyst Jim Sanderson told The Post.

The result is that jewelers are now drowning in LGDs, which have fallen in price by nearly 30% over the past 12 months alone, according to experts.

“Retailers’ top line revenue is getting squeezed,” Zimnisky added. “Retailers have to decide if they want to be selling $6,000 or $8,000 natural diamonds or $1,200 man-made diamonds. I think the acute price decline of generic LGDs has really put this into perspective.” 

Doug Meadows, owner of David Douglas Diamonds, of Marietta, Ga., is among the retailers whose enthusiasm for LGDs is losing its luster.

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Its a race to the bottom for LGDs for pricing, Meadows told The Post. No one can sustain it at this price. They are just too cheap right now.

A year ago, a two carat LGD engagement ring at his boutique sold for $4,500. Today that same ring is $1,000 less. In response, Douglas began training his sales staff to emphasize natural diamonds again.

We got so excited about LGDs that we lost focus on natural diamonds and the finesse of selling them, he added.

Signets sales were down 6% to $2.5 billion in the latest quarter ended Feb. 3 and its best performing brand in the quarter was value-oriented Banner, which saw flat sales, the company said. 

While we have seen continued discounting into the first quarter, Signet chief executive Virginia Drosos said on a March 20 earnings call, I would anticipate that the inventories are recovering somewhat and so that could be a help. I also think that consumers are becoming more aware that lab-created diamond prices are falling.

Signet and De Beers are hammering the point that LGDs are less valuable in a coordinated campaign to change consumers minds about purchasing them for their engagement rings.

De Beers’ “a Diamond is forever” tagline was introduced in 1948 and became one of the most powerful marketing slogans ever.

“Marketing is such an important part of this industry,” Zimnisky said. “Its really up to the diamond industry to explain why consumers should pay more for natural diamonds.”

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Fourteen children arrested on suspicion of manslaughter over Gateshead fire released on bail

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Fourteen children arrested on suspicion of manslaughter over Gateshead fire released on bail

All 14 children arrested on suspicion of manslaughter after a boy died in a fire have been released on police bail, officers said.

Layton Carr, 14, was found dead near the site of a fire at Fairfield industrial park in the Bill Quay area of Gateshead on Friday.

Northumbria Police said on Saturday that they had arrested 11 boys and three girls in connection with the incident.

In an update on Sunday, a Northumbria Police spokesman said: “All those arrested have since been released on police bail pending further inquiries.”

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Teenager dies in industrial estate fire

Firefighters raced to the industrial site shortly after 8pm on Friday, putting out the blaze a short time later.

Police then issued an appeal for Carr, who was believed to be in the area at that time.

In a statement on Saturday, the force said that “sadly, following searches, a body believed to be that of 14-year-old Layton Carr was located deceased inside the building”.

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David Thompson, headteacher of Hebburn Comprehensive School, where Layton was a pupil, said the school community was “heartbroken”.

Mr Thompson described him as a “valued and much-loved member of Year 9” and said he would be “greatly missed by everyone”.

He added that the school’s “sincere condolences” were with Layton’s family and that the community would “rally together to support one another through this tragedy”.

A fundraising page on GoFundMe has been set up to help Layton’s mother pay for funeral costs.

Pic: Gofundme
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Pic: Gofundme

Organiser Stephanie Simpson said: “The last thing Georgia needs to stress trying to pay for a funeral for her Boy Any donations will help thank you.”

One tribute in a Facebook post read: “Can’t believe I’m writing this my nephew RIP Layton 💔 forever 14 you’ll be a massive miss, thinking of my sister and 2 beautiful nieces right now.”

Detective Chief Inspector Louise Jenkins, of Northumbria Police, also said: “This is an extremely tragic incident where a boy has sadly lost his life.”

She added that the force’s “thoughts are with Layton’s family as they begin to attempt to process the loss of their loved one”.

They are working to establish “the full circumstances surrounding the incident” and officers will be in the area to “offer reassurance to the public”, she added.

A cordon remains in place at the site while police carry out enquiries.

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Football bodies could be forced to pay towards brain injury care costs of ex-players

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Football bodies could be forced to pay towards brain injury care costs of ex-players

Football bodies could be forced to pay towards the care costs of ex-players who have been diagnosed with brain conditions, under proposals set to be considered by MPs.

Campaigners are drafting amendments to the Football Governance Bill, which would treat conditions caused by heading balls as an “industrial injuries issue”.

The proposals seek to require the football industry to provide the necessary financial support.

Campaigners say existing support is not fit for purpose, including the Brain Health Fund which was set up with an initial £1m by the Professional Footballers’ Association (PFA), supported by the Premier League.

But the Premier League said the fund has supported 121 families with at-home adaptations and care home fees.

From England‘s 1966 World Cup-winning team, both Jack and Bobby Charlton died with dementia, as did Martin Peters, Ray Wilson and Nobby Stiles.

Neil Ruddock speaks to Sky's Rob Harris outside parliament
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Neil Ruddock speaks to Sky’s Rob Harris outside parliament

Ex-players, including former Liverpool defender Neil Ruddock, went to parliament last week to lobby MPs.

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Ruddock told Sky News he had joined campaigners “for the families who’ve gone through hell”.

“A professional footballer, greatest job in the world, but no one knew the dangers, and that’s scary,” he said.

“Every time someone heads a ball it’s got to be dangerous to you. You know, I used to head 100 balls a day in training. I didn’t realise that might affect my future.”

A study co-funded by the PFA and the Football Association (FA) in 2019 found footballers were three and a half times more likely to die of a neurodegenerative disease than members of the public of the same age.

‘In denial’

Among those calling on football authorities to contribute towards the care costs of ex-players who have gone on to develop conditions such as Alzheimer’s and dementia is Labour MP Chris Evans.

Mr Evans, who represents Caerphilly in South Wales, hopes to amend the Bill to establish a care and financial support scheme for ex-footballers and told a recent event in parliament that affected ex-players “deserve to be compensated”.

Greater Manchester Mayor Andy Burnham, who helped to draft the amendment, said the game was “in denial about the whole thing”.

Mr Burnham called for it to be seen as “an industrial injuries issue in the same way with mining”.

In January, David Beckham lent his support to calls for greater support for footballers affected by dementia.

One of the amendments says that “the industry rather than the public should bear the financial burden”.

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A spokesperson for the FA said it was taking a “leading role in reviewing and improving the safety of our game” and that it had “already taken many proactive steps to review and address potential risk factors”.

An English Football League spokesperson said it was “working closely with other football bodies” to ensure both professional and grassroots football are “as safe as it can be”.

The PFA and Premier League declined to comment.

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Terror arrests came in context of raised warnings about Iran, with ongoing chaos in its own backyard

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Terror arrests came in context of raised warnings about Iran, with ongoing chaos in its own backyard

These are two separate and unrelated investigations by counter-terror officers.

But the common thread is nationality – seven out of the eight people arrested are Iranian.

And that comes in the context of increased warnings from government and the security services about Iranian activity on British soil.

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Counter terror officers raid property

Last year, the director general of MI5, Ken McCallum, said his organisation and police had responded to 20 Iran-backed plots presenting potentially lethal threats to British citizens and UK residents since January 2022.

He linked that increase to the ongoing situation in Iran’s own backyard.

“As events unfold in the Middle East, we will give our fullest attention to the risk of an increase in – or a broadening of – Iranian state aggression in the UK,” he said.

The implication is that even as Iran grapples with a rapidly changing situation in its own region, having seen its proxies, Hezbollah in Lebanon and Hamas in Gaza, decimated and itself coming under Israeli attack, it may seek avenues further abroad.

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The government reiterated this warning only a few weeks ago, with security minister Dan Jarvis addressing parliament.

“The threat from Iran sits in a wider context of the growing, diversifying and evolving threat that the UK faces from malign activity by a number of states,” Jarvis said.

“The threat from states has become increasingly interconnected in nature, blurring the lines between: domestic and international; online and offline; and states and their proxies.

“Turning specifically to Iran, the regime has become increasingly emboldened, asserting itself more aggressively to advance their objectives and undermine ours.”

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Anybody working for Iran in UK must register or face jail, government announces

As part of that address, Jarvis highlighted the National Security Act 2023, which “criminalises assisting a foreign intelligence service”, among other things.

So it was notable that this was the act used in one of this weekend’s investigations.

The suspects were detained under section 27 of the same act, which allows police to arrest those suspected of being “involved in foreign power threat activity”.

Those powers are apparently being put to use.

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