Ghost currency

Sparkling diamonds feature on millions of engagement rings and other fine jewellery. They are also used in some industrial situations as a component in specialised cutting equipment. But diamonds are also used as a medium of exchange in shady dealings. “Where there’s anything that’s worth a lot of money, and that’s easily transportable, it becomes a ghost currency,” says Professor Watling.

Diamonds have regularly been at the centre of large scale organised crime transactions for hundreds of years. Gold and diamonds are often currencies of choice for drugs and arms trading. These highly valuable commodities are also regularly stolen. Professor Watling worked with the W.A. police through the 1980s and 1990s to help crack criminal activity which included the ongoing theft of pink diamonds from the Western Australian Argyle mine, the world’s most famous pink diamond operation. Pink diamonds were going missing, and turning up in Europe. Stolen stones were ‘fingerprinted’, which led to criminals being apprehended. The Professor also helped W.A. police nab robbers who had stolen large quantities of gold, by fingerprinting the recovered precious metal. No doubt those crooks had their own fingerprints checked out too. 

Spotting fakes

Professor Watling and other scientists like him are often called upon to determine the authenticity of diamonds. This service is increasingly in demand, with the rise of fakes and lab grown diamonds in recent years. Scientist John Chapman was formerly a physicist working at the Argyle mine. He now runs a laboratory in Perth. He is sent diamonds from all over the world which he analyses in order to specify their source and authenticity. Lab grown or synthetic diamonds are not actually considered to be fakes as such, but people want to know whether their stone is natural or man-made, as there is a huge difference in terms of value – both monetary and emotional.

A lab diamond might be difficult to pick from a natural diamond at a glance, but most jewellers can spot it and of course a scientist can quite quickly confirm whether a gemstone is natural or factory produced. Lab diamonds cost much less and they do not hold their value at all, whereas a natural diamond increases in value annually and is considered to be a very good investment. Particularly an Argyle pink diamond. That is why Mr Chapman specialises in certifying Argyle pink diamonds. Their value has skyrocketed in recent years. Many people may have a pink diamond which is unmarked, and not be aware that it is in fact a genuine Argyle.

The mine did not mark all their pink diamonds for many years. They only certified and marked stones which were larger than 0.5 carats. So there are lots of smaller pink diamonds around which are not readily identifiable as Argyles, yet they may well be. Mr Chapman can tell you one way or another, with certainty, after running his tests. He relates a story about a man who bought a pink diamond at a pawnbroker for a modest amount. The man suspected it might be an Argyle, and took it to Chapman to be analysed. Sure enough, it was an Argyle alright, and worth $50,000. Big win!

Does every diamond have a unique fingerprint, like people do?

Yes, every natural gemstone is unique, and tests can pinpoint age and origin.

Are diamonds sometimes used as a form of currency?

Yes they are, and although this is often perfectly legitimate, diamonds are also sometimes 

used as an underworld currency.

Are all Argyle pink diamonds certified?

Since around a decade ago, all Argyle diamonds – except for very small ones – are certified and marked. At Paul Bram, all of our pink diamonds come with Argyle certification.