Through an ethnographic survey of Italian ethical jewelers and representative customers, this study focuses on how the topic of traceability in the Canadian diamond industry is communicated and negotiated within two representative Italian ethical jewelry stores in Milan and Bologna. To better understand communication strategies deployed by jewelers to convey the concepts of ethical jewelry, the authors explore themes related to traceability in the context of Canadian ethical diamonds (CEDs). A specific dominant narrative built around CEDs is identified that leverages customer concerns about the violation of the safety and human rights of workers on the diamond supply chain. To more deeply analyze how information about the traceability of CEDs successfully mitigates consumer concerns about the ethics of jewelry supply chains, the authors explore the role of identity obsession (Remotti 2010) in ethical jewelry purchase decisions by Italian consumers. They further discuss rationales for the general resistance of many Italian jewelers to offering ethical jewelry in local stores, to better understand why, to date, ethical jewelry remains a niche market segment in Italy, with most Italian consumers unaware of the degrading environmental and sociological impact of such products as blood diamonds.