The Israeli Diamond Institute notes that a couple of companies are working to facilitate Bitcoin payments in the American jewelry industry.

Jewelry search engine and online marketer Verichannel agreed to work with Bitcoin payment processor Coinapult last week to allow both online and brick-and-mortar jewelry retailers to accept Bitcoins. Verichannel will be charging $3 transaction fees in the US and a bit more abroad.

Bitcoin solves one particular problem in this industry because the risk of fraud forces credit card companies to consider retailers high risk.

"One of the biggest problems facing retail stores is the risk of credit card reversals," Verichannel CEO Jacques Voorhees said in a statment. Bitcoin, however, eliminates that problem because the currency makes chargebacks impossible.

Coinapult is an American company that specializes in sending Bitcoins to users via email and SMS.