I spoke about how all people develop a sense of right and wrong in their lives, and operate on a system of norms, beliefs, ideas, and values that we might encapsulate as character.  I told them that reputation is what people think of us, but character is what we are in the dark.  It guides our thinking, our words, and our actions.  Character never leaves us.  It goes with us wherever we go.  It is there when no one is looking.  It is our moral framework, determining our ethics, integrity and judgment.

I feel it is vital that anyone entering the gem and jewelry industry understand the importance of character.  It’s not enough to gain product knowledge, technical expertise, or sales and marketing savvy.  It’s not enough to consider oneself a professional by fulfilling the requirements for a diploma or convincing someone that you are right for a job.  A career may start there, but it will surely be influenced – positively or negatively – by the character that one brings to the table. 

There are many temptations in the jewelry industry today.  And they are often magnified in difficult times.  There is the obvious temptation to steal products from a business.  But what about the less obvious temptation to steal time from your boss, to take synergy from your co-workers, or to withhold important facts from your customers?  Each act is a reflection of your (our!) character, and comes with a set of consequences – one way or the other. 

There is much a leader or business-owner can do to help employees build character.  All people yearn to know the virtues and values that guide a leader’s thinking.  And most people will adopt the values of those they respect. 

In my view, there is only one way to get people “on board” with your business or organization.  And that is to share the values that shape your character as a leader.  You don’t have to be perfect.  You can’t be.  But your actions must be true to your beliefs     And you must have strong character if you’re going to try to develop it in others.  It is the mark of a leader and the soul of a business.  In the end, it is character that really counts.

At the just-concluded World Diamond Congress a U.S. State Department Official said all rough diamonds entering the U.S.after January 1, 2003 must be accompanied by a certificate that they have been exported legally, in accordance with the laws of the producing country.

J. D. Bindenagel, the U.S. State Department’s special negotiator for conflict diamonds, told participants at the just-concluded World Diamond Congress in London that the diamond certification scheme expected to be ratified next week by the Kimberley Process will become policy whether or not the U.S. Congress passes the Clean Diamonds Act.

“All diamonds must be in accordance with the Kimberley Process or they won’t get in. And anyone who submits false documentation will be prosecuted,” said Bindenagel.

The Kimberley Process is a system whereby diamond-producing countries certify that diamonds have been mined and sold through legitimate channels. This program is designed to prevent conflict and illicit diamonds from entering the mainstream trade.  Diamond-processing and consuming countries are expected to ratify the Kimberley Process next week at a meeting in Interlaken, Switzerland.

The approximately 120 delegates to the World Diamond Congress had hoped to deliberate on other pressing issues, especially in light of the pronouncement by former vice-president Al Gore in Antwerp two weeks earlier that the conflict diamond issue was largely a thing of the past. These other issues include the challenges to smaller dealers and manufacturers posed by De Beers’s Supplier of Choice initiatives, extending sanctions to dealers who sell HPHT-treated diamonds without disclosure, and a rapidly softening diamond market. However, the conflict diamond issue crowded out all others.

In opening the Congress, held at the Langham Hilton Hotel October 28-29, De Beers managing director Gary Ralfe told the delegates that the diamond industry must commit to “ethical accountability” and called on the members of both organizations that comprise the Congress--the World Federation of Diamond Bourses and the International Diamond Manufacturers Association--to present a “united front” by adopting a resolution to self-regulate their industry by refusing to handle uncertified goods.

Ralfe noted that “some countries may not be in a position to implement Kimberley Process requirements by January 1 and others may want delays. However, we as an industry must have our own regulations in place and go ahead with certification requirements.”

“If we fail to do this,” he warned, “our livelihood will be at risk. A consumer boycott of diamonds remains a possibility.”

Kimberley Process chairman Abbey Chikane, of South Africa, acknowledged that the World Trade Organization had some concerns over provisions banning trade with non-complying nations, but he stressed that the Kimberley Process “seeks to be as inclusive as possible” so sanctions are not directed at specific countries.

The delegates unanimously enacted a resolution requiring a statement on invoices for all diamonds and diamond jewelry that the diamonds have been purchased from legitimate sources, that is, producers that are not involved in funding conflict and are in compliance with United Nations resolutions.

Before the vote, a number of delegates complained that including diamond jewelry in such a requirement would make it difficult to buy estate pieces, since they carry no origin certificates. Cecelia Gardner, executive director of the Jewelers Vigilance Committee, who attended the Congress as an advisor, replied that the resolution called on members to use their “best efforts” and that existing reporting requirements usually were sufficient.

Non-governmental organizations, who first raised the conflict diamond issue three years ago, called the resolution too general, saying it did not require diamond traders to keep documented, auditable proof that they are not dealing in conflict goods.

Newly elected WFDB President Shmuel Schnitzer told the Congress he wanted a “hermetic closure against any trade in rough diamonds that might inflict suffering on the people of the African continent.”

By Russell Shor
Senior Industry Analyst

Characterizing gemological features has always been critical in determining the origin of color in a diamond, and it is even more important with the increased use of high pressure/high temperature (HPHT) technology to change diamond color. This treatment may alter internal characteristics of the diamond, but interpretation of these clues can be very challenging, as evidenced by two diamonds recently submitted to the East Coast laboratory for origin-of-color reports.

The 3.38 ct Fancy Intense blue marquise and 1.20 ct Fancy Vivid orange-yellow pear shape exhibited very similar inclusions that looked suspiciously like those often found in HPHT-annealed stones. Both diamonds displayed large, flat, apparently graphitized inclusions surrounded by a colorless halo (see figure).

After further examination, however, we noted subtle but significant differences in these internal features. The halo in the blue diamond was quite flat with little or no relief, and was very shiny in reflected light. The halo in the yellow diamond appeared to undulate around the dark center, and it revealed a less reflective, sugary appearance with reflected light.

Black inclusions are relatively common in natural-color type IIb blue diamonds. They are less common—but not unknown—in natural-color yellow diamonds. Tension haloes can form naturally around inclusions in any diamond. The conditions of HPHT treatment can create tension haloes around existing inclusions while stimulating graphite formation along their crystal faces. The result may be a large, flat inclusion with a dark center, which is surrounded by a transparent/translucent halo.

However, there are subtle differences in tension haloes produced naturally and those resulting from HPHT processing. Because HPHT treatment subjects a diamond to intense heat and pressure for a relatively short period of time, it can cause severe damage to existing features. From our experience, the sugary texture and undulating nature of the tension halo in the orange-yellow pear shape suggested that this diamond was subjected to a rapid change in heat and pressure, whereas the smooth, shiny appearance of the halo in the blue diamond indicated that it was caused by a slower, natural process. Spectroscopic analysis confirmed the observations we had made with magnification: The orange-yellow diamond had been HPHT annealed, and the blue diamond was natural color.

For more updates from the GIA Gem Trade Laboratory, see the Gem Trade Lab Notes section of Gems & Gemology. To subscribe,  please click here or contact Subscriptions Manager Debbie Ortiz at dortiz@gia.edu. Call toll free 800-421-7250, ext. 7142. Outside the U.S. and Canada, call 760-603-4000, ext. 7142.

Editor’s Note: This report was prepared by Thomas Gelb and Matthew Hall of the GIA Gem Trade Laboratory in New York.

Over the last several months, there has been extensive discussion and research related to the new color-altered sapphires that have been treated mainly in Thailand. The cause of color in these stones has been a major focus of the investigation into this new treatment, as has identification of the treatment in all stones to which it has been applied.

Following detailed analyses, replication experiments, validation by independent researchers, and extensive discussions, it has been unequivocally established that the color change is caused by the diffusion of beryllium from an external source into the corundum.  Beryllium diffused into corundum, in an oxidizing atmosphere, at high temperatures, is the single causative agent of color change in this new process. Beryllium diffusion is very similar to the diffusion of titanium into corundum that creates a blue color layer, and thus both will be described similarly in our reports. The primary effect of the beryllium diffusion is an added yellow color component, although other effects have also been observed. Depending on the starting material, the colors produced by this technique now present on the market are yellow, orange, orangy pink, orange-red, green, green-blue and violet.

The majority of these treated stones can be identified through a combination of standard gemological testing techniques. We are now focusing our research efforts on the establishment of robust identification criteria for those stones that are not identifiable by established testing methods.  We believe that these criteria will involve both traditional gemological testing and advanced analytical techniques; the latter will undoubtedly include instruments that are routinely used today in well-equipped gemological labs, but we are also looking at methods that historically have not been accessible to gem testing laboratories.

Establishment of these criteria is being given the highest priority at both the GIA Gem Trade Laboratory and the AGTA Gemological Testing Center, and we will be using all of the resources at our disposal, including consultation with outside experts.  We believe these efforts will help allay the concerns of dealers and jewelers alike regarding this new treatment procedure, and will allow consumers to purchase corundum with certainty and confidence.

When a gem shows different colors under different types of lighting, it’s called color change. The most well known and highly valued color-change gem is alexandrite chrysoberyl. When an alexandrite is under lighting that is rich in red — like an incandescent light bulb — the gem looks red. If it is under lighting that is rich in blue and green — like a fluorescent light — the gem looks green.

Only exceptional alexandrites get close to matching the reds and greens of rubies and emeralds. The saturation levels of good-quality alexandrite are a couple of levels lower than the best rubies and emeralds.

Although alexandrite is the most valued color-change gem, some others, like sapphire, spinel, and garnet, can also show this effect.

To grade a color-change gem, you have to consider the distinctness of the color change and the attractiveness of the gem’s bodycolor under both light sources, as well as the cut and clarity of the gem.

To check the gem’s color change, look at it under both a daylight-equivalent, fluorescent grading lamp and an incandescent light, like a penlight. Some gems — most color-change garnets and sapphires — might only show a purplish red to bluish gray color change. At the top of the value scale, fine alexandrite shows a change from purplish red to bluish green. Rate the color change as moderate or strong. If it’s weak, disregard it.

Evaluate the gem’s cut and clarity as you would for other transparent, faceted colored gems, but pay the most attention to the quality of the color change and the gem’s bodycolor under both types of lighting.

Grading a Color-change Gem

1. Evaluate the color change. It should be distinct for maximum value. Rate it as moderate or strong.
2. Evaluate the bodycolor. It should be attractive under both light sources.
3. Evaluate the cut. The gem should be well proportioned and symmetrical.
4. Evaluate clarity. There shouldn’t be any distracting inclusions.

Further information regarding color-change gems can be found in the GIA Colored Stones course and Colored Stone Grading Lab manual.

A new jewel will soon glitter along the coastal Southern California landscape when the world’s largest crystal octahedron is placed atop the entrance tower of the GIA's world headquarters in Carlsbad.

The one-ton octahedron, which will soon be installed to create the GIA Tower of Brilliance, resembles the shape of a natural diamond crystal and alludes to GIA’s worldwide reputation as the world’s foremost authority in gemology and creator of the international diamond grading system. The octahedron was custom designed for GIA by D. Swarovski & Co., the world-famous Austrian crystal manufacturer, which donated it to the Institute along with a significant monetary gift to GIA’s endowment campaign.

GIA President William E. Boyajian expressed gratitude for the donation as well as the unique crystal creation: “We are deeply appreciative that a company of Swarovski’s stature and integrity has made such a substantial investment in GIA. With this donation, Swarovski has dramatically demonstrated its confidence in GIA’s ability to continue to serve the gem and jewelry industry and the public long into the future.”

Commenting on the crystal octahedron, Boyajian added, “The display of this fabulous octahedron will not only enhance GIA’s world headquarters with its artistic beauty, but it will also serve as a lasting reminder of Swarovski’s support of GIA’s important mission.”

Helmut Swarovski, Chief Executive Officer of D. Swarovski & Co., said, “We are proud to make this donation to support GIA’s significant work on behalf of the gem and jewelry industry and to celebrate its collaboration with Swarovski in the last few years.”

The crystal octahedron comprises an outer glass structure which resembles the shape of a natural diamond crystal, with a metallic replica of a round-brilliant cut diamond within. It will be motorized to rotate and reflect a moderate amount of light, resembling the characteristics of a diamond returning light through its facets.

Swarovski’s innovative lighting division designed the octahedron. Swarovski has also designed other special crystal creations as part of its Symbols of Light collection. The first in this series was The Cross of Light, which is on display in the Basilica di Santa Maria degli Angeli e dei Martiri, in the Vatican.

Linda Ellis, GIA’s chief Development officer, said, “The octahedron is absolutely magnificent, but it represents only a fraction of Swarovski’s total gifts to GIA, which are well in excess of $1 million. Swarovski’s most important financial donation, to-date, is their recent $702,000 contribution to the Institute’s $75 million endowment campaign.”

Ellis added, “This campaign is the centerpiece of GIA’s efforts to create a permanent, perpetual source of income to secure the Institute’s ability to fund its work on behalf of the gem and jewelry industry and the consumer public. Swarovski’s donation helps us take a major step forward in achieving the goals of this vital campaign, and it is greatly appreciated.”

2002 GIA League of Honor Inductees Back row, left to right: Peter K. Gross, ABN AMRO Bank; Ralph Destino, Cartier, Inc.; Matt Stuller, Stuller, Inc.; Martin Klein, Julius Klein Diamonds Inc. Front row, left to right: Dr. Andrea Turcato, Vicenza Trade Fair; Dr. Giovanni Lasagna, Vicenza Trade Fair; Hedda T. Schupak, the JCK Shows and JCK Magazine; Norbert Steinmetz, E. Schreiber Inc.; Lee Michael Berg, Lee Michaels Fine Jewelry. Photo by Dominick Fiorille. © GIA 2002.

Dinner Co-Chairs Ed Bridge, president and co-chief executive officer of Ben Bridge Jeweler Inc., and Elliot Tannenbaum, partner of Schachter & Namdar Polishing Works Ltd., were among the first to congratulate the honorees for their vision and foresight in supporting GIA's Endowment Campaign.

The honorees, Richard T. Liddicoat (in memoriam), Matt Stuller, Hedda T. Schupak, Dr. Giovanni Lasagna, Dr. Andrea Turcato, Peter K. Gross, Martin Klein, Norbert Steinmetz, Ralph Destino and Lee Michael Berg, all contributed $100,000 or more on behalf of themselves or their organization to further GIA's critical programs and services. For their support, each received the coveted League of Honor medallion at the dinner among hundreds of their peers and industry leaders.

Richard T. Liddicoat, who passed away in July, was remembered and honored for his contributions to the entire industry at the dinner. All proceeds from the dinner will benefit the Richard T. Liddicoat Memorial Fund, which as part of GIA's Endowment Fund, will assist the Institute in carrying on Liddicoat's vision and life's work on behalf of the industry.

“The GIA Endowment will create a solid financial foundation that will secure and support GIA and enable it to grow for years to come,” said GIA President William E. Boyajian, G.G. “The industry has helped us in the past and now we're off to a good start to continue building for the future. I challenge everyone to join those of us who have contributed to the Endowment Fund. It's crucial in our efforts to safeguard the public's confidence in our precious products and our wonderful industry.”

The campaign to grow the Endowment Fund, a permanent fund that is invested to grow and whose interest will sustain GIA long into the future, was officially launched at the dinner.

To learn more about the GIA Endowment Fund or the Richard T. Liddicoat Memorial Fund, see the latest issue of the Fall 2002 The Loupe: GIA World News. The issue also includes a special, keepsake supplement that honors and remembers the late Mr. Liddicoat.

To subscribe to The Loupe: GIA World News, a free, quarterly publication, contact Mark Saffell at (760) 603-4140 or E-mail msaffell@gia.edu.

2002 League of Honor Inductees

Richard T. Liddicoat, former GIA Chairman of the Board (In Memoriam)
Matt Stuller, Stuller, Inc.
Hedda T. Schupak, The JCK Shows and JCK Magazine
Dr. Giovanni Lasagna, Vicenza Trade Fair
Dr. Andrea Turcato, Vicenza Trade Fair
Peter K. Gross, ABN AMRO Bank
Martin Klein, Julius Klein Diamonds Inc.
Norbert Steinmetz, E. Schreiber Inc.
Ralph Destino, Cartier, Inc.
Lee Michael Berg, Lee Michaels Fine Jewelry