As I look back on this year, with its extreme highs and lows, I can’t help but think of Charles Dickens’s classic line: “It was the best of times, it was the worst of times.” Despite the overall economy, this has been a wonderful year for the Institute on many different levels. We have experienced major growth over 2001 in all GIA divisions. The Gem Trade Laboratory has led the way, with intake of items up substantially over last year. As a result, we have greatly increased our laboratory staff, which now totals nearly 500. Just as importantly, we have increased our grading staff on both coasts, and expanded our support infrastructure to provide a significantly reduced servicing time.

This has been an especially important year for GIA Research, with continued progress on our analysis of diamond cut in round brilliants, our vigilance in the identification of high pressure/high temperature (HPHT) treated diamonds, and our gains in meeting the challenges of identifying a new form of diffusion treatment in corundum. And although the list of research projects keeps growing in tandem with our accomplishments in so many areas, we are also expanding our technical resources to meet the needs of the industry and our obligations to the consuming public.

GIA Education has reached yet another level in its service to the trade and public. Our new Graduate Gemology program, introduced early this year, was met with enthusiastic response from our nearly 10,000 active students. Not only are enrollments up 10% this year overall, but our completion rates are double what they were with the former courses. A remarkable accomplishment in distance education circles, this reflects the relevance and accessibility of our program, as well as the processing speed that improved Internet servicing of our lessons provides. In addition, the introduction of our new School of Business, with diploma programs specifically geared to operating businesses in the gem and jewelry industry, has been extremely successful: 48 students have completed 134 courses in our pilot program this first year alone. Truly, GIA Education is in its best position ever to service the training needs of the industry.

To enable us to continue our important work in Research and Education, we recently launched a $75 million Endowment Campaign. With $33 million already pledged in support of our nonprofit mission, we are well on our way to assuring the Institute’s ability to maintain and advance the levels of service you have come to expect. Other milestones in 2002 included our far-reaching events – such as the Career Fairs in New York and Carlsbad, presentations at GemFests and countless trade events worldwide, professional development sessions at Alumni events, and our annual League of Honor Founders Dinner in New York. The true capstone this year was the unveiling in November of the GIA Tower of Brilliance, with the world’s largest “crystal” octahedron created by the Swarovski Group of Austria. These are only a few examples of the breadth of our growth in 2002 and the diversity of our current activities.

In a year filled with so many highs, we also experienced the lowest of lows with the passing of our dear Chairman, Richard T. Liddicoat, in July. Much has been written about his contributions to GIA and the gem and jewelry industry over his remarkable career, spanning more than 60 years. We all continue to benefit from his innovations in diamond grading and gemological education, and especially from the ethical standards he established for thousands of gemologists around the world. I was one of the many people who also benefited from his wise counsel, and I shall always count it a privilege and an honor to have known and worked with such a great man as Richard Liddicoat.

So, yes, 2002 brought us the best of times, and also the worst of times. Still, in looking ahead to 2003, I am enormously optimistic about the future of both GIA and the gem and jewelry industry. We have a wonderfully talented team of dedicated professionals at GIA locations worldwide, with the skills needed for success in their everyday work and the determination to conquer unforeseen challenges on behalf of the industry and the consuming public. Your confidence in their efforts gives us even more reason to celebrate their accomplishments.

In closing, let me take this opportunity to wish all of you a healthy and prosperous holiday season and a very happy New Year.

Corundum treated by Be diffusion (0.86 - 2.78 ct). Photo by Elizabeth Schrader.

The uncertainty associated with the previously published concentrations of iron (Fe) and Be obtained through SIMS analysis (see table link above and Gem News International, Spring 2002 Gems & Gemology, pp. 86 - 90) was large, due to inadequate calibration standards. As we indicated at that time, the uncertainty of the Be concentration, for example, could be as high as ±200%. At the time of our initial analyses, the SIMS facility we used did not have established corundum standards for these elements. In our efforts to improve the accuracy of analysis, we worked with the facility to create new corundum standards for Fe and Be by means of ion implantation. Using the new standards, we recalculated the concentration of Fe and Be in the previous analyses. We also reanalyzed several of the samples we had tested earlier (see new table). Note that, in a few samples, Ti concentrations are not available because of technical problems with the original analyses; Si concentrations were measured in our most recent analyses only.

The recalculated SIMS data show that although the concentrations of Fe and Be have changed, the relative relationships between the values remain the same; that is, in those sapphires that show clear color zonation from rim to center, the abundance of Be in the rim is still approximately 10 times greater than that in the center. An analysis of the original (not repolished) surface of treated orange sapphire no. 48413 showed that the Be concentration was as high as 99 parts per million (ppm). In some samples, Be had diffused through the entire crystal, so no color zoning was observed. We also conducted additional before-and-after experiments (samples 45493 and 45494) for which, as done previously for samples 45002 and 45031, we had an untreated natural pink sapphire from Madagascar sawn in half, and then had one half treated in Thailand using the same method as for the other treated sapphires. In both sets of samples, the treated halves showed a greater Be concentration than the untreated halves.

Recent experiments conducted by Dr. John Emmett (Crystal Chemistry, Brush Prairie, Washington) have demonstrated that diffusion of about 10 ppm Be could create strong coloration in very pure originally colorless synthetic corundum. We have also seen that the lattice diffusion of Be may not necessarily lead to color change in all natural sapphires. For example, a significant concentration of Be (11 ppm) was detected at the rim of one pink sapphire (sample 45082) that showed no apparent change in color after the treatment. In addition, as reported earlier, high concentrations of Be (73 - 113 ppm) were detected in a crucible we obtained in Thailand that had been used for the treatment.

The Be concentrations in natural, untreated corundum samples that we have analyzed were typically below 1.0 ppm. In most cases, diffusion of trace amounts of Be into the lattice of a corundum sample at high temperature significantly changed its color appearance. Depending on the properties of the original corundum and the conditions of the treatment, the color of the end products can be yellow, orange, orangy red, or even red.

On the basis of all these data and observations, we believe that our previously published findings and conclusions about the importance of Be diffusion in this new sapphire treatment process continue to be valid.

For more gemological updates from around the world, see the Gem News International section of Gems & Gemology. To subscribe, visit G&G Online. Or contact Subscriptions Manager Debbie Ortiz, or call toll free 800-421-7250, ext. 7142. Outside the U.S. and Canada, call 760-603-4000, ext. 7142.

This entry was prepared by Dr. Wuyi Wang and Barak Green of the GIA Gem Trade Laboratory in New York and Carlsbad, respectively. To review previous Insider entries on this topic, please go to: Volume 4, Issue 24, Volume 4, Issue 10, Volume 4, Issue 5, and Volume 4, Issue 3).

High-end diamonds continue to sell this season, as engagements and advertising by branded diamonds and De Beers spur consumers.

RETAIL: Many jewelers report a run on engagement rings this Christmas, similar to last season. And much of the non-engagement business at the high end is concentrated in heavily advertised products. Vogue, In-Style, Departures, and Town & Country are filled with more diamond jewelry advertisements than ever.

Michael Pollack, president of Hyde Park Jewelers, an upscale retail chain headquartered in Denver, Colorado, notes that “consumers seem fairly upbeat. They seem to have gotten over the hump of the stock market decline, and those who have money still seem willing to spend it.”

He says that sales are running ahead of last year – particularly for loose diamonds, which have jumped 35%. The reason: branded diamonds with the advertising to go with them, and a “huge number of engagements.”

Versailles Jewelers, an upscale store in San Diego’s Fashion Valley Mall, says that diamond sales are up 13% from last year, particularly in G-SI or better qualities, and managers of other high-end stores in the same mall say that business has been strong all season. Again, they were surprised by the number of engagement rings sold.

Diamonds seem to be gaining market share in general. The manager of one large Kay Jewelers store reports that diamonds are 80% of the season’s business, and the manager of a nearby Zales puts that percentage at over 70. Colored stones have, however, gained a solid foothold on TV shopping channels.

Discounting among the major chains remains aggressive, though this year’s promotions are more creative. Many of them – such as Kay, Littman/Fred Meyer, Zales, Whitehall, and Weisfield’s – are offering one-year interest-free credit purchases. Weisfield’s offers $100 on future purchases for every $300 spent at Christmas. This 0% option will impact the bottom line much less than deep discounts because today’s interest rates are so low.

Mass merchandisers report sales at the low end of targets, but stress that jewelry remains one of their most popular items.

ONLINE: ComScore Networks reports that online jewelry retailers have seen a surprising increase in sales this season – up 70% over last year to $80 million in November 2002. Analysts report that customers are now more comfortable spending large amounts of money online.

The revival of what had been seen as a failing category – online jewelry retailing – is certainly behind the recent acquisition of Ashford.com by Diamond.com, a Steinmetz Diamond Group affiliate. Ashford.com was a public company with annual revenues in excess of $45 million. With the addition of Ashford.com, Diamond.com will be the preeminent retailer of fine jewelry and watches on the Internet.

DE BEERS: The final sight of the year totaled about $325 million, in line with expectations. De Beers’s Diamond Trading Company (DTC) also announced that it will add another product category, right-hand rings, to the three-stone ring and Statement Diamonds that it will promote heavily.

DTC has been advising brokers and clients, in its Intention to Offer reports, that sales of certain types of rough diamonds over 2 carats will be restricted to the goods it receives from producers next year. Under its ITO program, the DTC informs clients of the allocations of rough diamonds they can expect to receive in the coming six months. Some clients registered complaints, but most believe that a cautious policy is sensible in today’s market, according to one broker. However, DTC executives did say that if Christmas sales in America are good and the market needs to restock, it will increase the size of future sights according to rough availability. DTC reiterated that the ITOs were only an indication of what DTC intends to sell during the first half of 2003, and were neither a minimum nor a maximum figure.  Generally speaking, brokers say that clients are very positive about the confidence the ITO gives them in forward planning their manufacturing and marketing.

Russell Shor
GIA Industry Analyst

The four colors outside the color wheel show the hue range for ruby.  Click image for detailed view.

Medium to medium-dark tones are preferred as long as the tone is not so dark that it has a negative effect on brilliance. At the other extreme, if the tone is too light, the stone is considered pink sapphire, even if saturation levels are high.

The most valuable ruby colors are red to slightly purplish red with medium to medium dark tones and vivid saturation.

Some gem dealers debate the borderline between ruby and pink sapphire. Historically, the word ruby referred to shades of red, which technically included pink. But the names ruby and pink sapphire reflect a wide difference in value. That’s why, given a choice, a supplier would prefer to be able to call a corundum gem ruby rather than pink sapphire.

The sample stones in the value chart range from top-quality rubies with medium to medium-dark tones and strong to vivid saturation to commercial-quality rubies with low saturation and dark tones.  Click image for detailed view.

The GIA Gem Trade Laboratory uses masterstones to determine if  corundum is ruby or if it’s pink, purple, or orange sapphire. The laboratory grades its masterstones on the principle that red must be the dominant hue before a stone can be called a ruby. In the trade, identification of the dominant hue is subject to personal perception and in some areas of the world pink sapphires are considered rubies.

This discussion on ruby color descriptions is part of GIA’s Colored Stones course, and it is also in GIA’s Colored Stone Grading Lab manual. For additional information on GIA courses and diploma programs, click here, or e-mail eduinfo@gia.edu, or call 800-421-7250, ext. 4001.

Using a groundbreaking approach to the evaluation of diamond appearance, research scientists at GIA have studied how human observers describe and judge diamonds of various proportions under a variety of conditions.  Diamond dealers, retailers, consumers, and trained observers have all taken part in this ongoing series of observation tests of diamond appearance.

Over the past 18 months, GIA has collected nearly 40,000 observations of more than 1,000 diamonds in a variety of controlled environments as well as in typical trade settings. No cut-evaluation methodology currently used in the trade has been empirically tested in this manner.

“We work on the premise that computer modeling must always be validated by real-world observations,” said Thomas C. Yonelunas, CEO of the GIA Gem Trade Laboratory. “We are pleased to confirm that the observations gathered in this phase of our study strongly support computer-modeled results for brilliance and fire.”

Initial observation tests allowed researchers to further define relevant environmental and observational parameters, leading to refined metrics for brilliance (brightness) and fire.   These new calculated predictions of brilliance and fire were then verified by “real world” brilliance and fire differences seen in diamonds.  Recently, GIA conducted observation tests to determine how the two appearance aspects of brilliance and fire contribute to overall appearance.

Among those who participated in the tests were diamond dealers in both New York and Antwerp.  They observed the test diamonds both in their own offices, where they make similar judgments every day, and in controlled viewing environments at GIA offices.

Trade members were given the opportunity to learn the diamonds’ proportions after their observation tests were completed.  Some participants indicated their surprise at the performance of a number of diamonds specially cut to proportions considered outside standard cutting parameters. This further supported GIA’s contention that “every facet matters.” GIA has found that variations in the lengths of star and lower-girdle facets greatly impact the visual appearance of a diamond.  Thus, estimates of appearance cannot rely only on pavilion angle, crown angle, table size, and total depth.

Retailers and consumers were also tested in various controlled and natural environments at other times throughout this phase of the research.  In addition, thousands of observation tests have been conducted at GIA in controlled environments using experienced laboratory observers.

Research scientists at GIA are currently examining other possible appearance aspects, such as scintillation, to understand how they also might interact with brilliance and fire to determine overall appearance.

The goal of GIA’s long-term research project is to provide a scientific basis for evaluating cut in diamonds.  Not only will this help members of the trade reach a consensus on a cut system, but ultimately it will also provide consumers with a higher level of confidence and comfort in their diamond purchases.

GIA plans to incorporate the findings from these observation tests into expanded cut quality information on GIA Diamond Grading Reports.

For more on GIA’s cut research project, click here.

Cris Olson, G.J., designed the 2002 national college football championship trophy.

In an unprecedented event, a GIA Graduate Jeweler (G.J.), Cris Olson, head designer for Molina Fine Jewelers of Phoenix, Ariz., was selected by the Fiesta Bowl Committee to design and create the 2003 national college football championship trophy. Olson created an elaborate trophy worth more than $1 million, which was unveiled by the Fiesta Bowl Committee Dec. 12. The trophy, now on display at numerous events leading up to the Tostitos Fiesta Bowl, will be presented to the winner of the national championship game to be held Jan. 3 between Ohio State University and the University of Miami in Tempe, Ariz.

The nearly four-foot tall, 200-pound trophy is encrusted with 2,400 diamonds totaling nearly 50 cts, which were donated by De Beers. It is made of 18kt gold and sterling silver, with five shades of hand-carved marble. According to Alfredo J. Molina, president of Molina Fine Jewelers, and a GIA Graduate Gemologist (G.G.), more than 2,000 hours were logged within 30 days by his company’s master jewelers and craftsmen in assembling the intricate parts of the trophy. Molina, who is also a member of the Fiesta Bowl Committee, said the trophy design incorporates many symbols that showcase the athletic agility and strong spirit of the game.

“The Fiesta Bowl Committee wanted to present a trophy they could be proud of in the conference, making this the most valuable trophy in the world,” said Molina. “It is an incredible honor to create such a prestigious trophy, and it will truly be a spectacular award.”

Molina explained that the trophy’s base floor has an inlaid compass with the four cardinal directions spot-lit, signifying the path the players take in the game and in life. Linemen – the backbone of the team – support the trophy, and the players at the top are guarding the ball. The football is made of 18kt gold, and is fully removable from the trophy. Its interior is partly hollow and contains an internal power source that keeps the diamonds and Tostitos Fiesta Bowl logo illuminated even when the football is removed.

“My GIA education was a fundamental element in my ability to create this trophy,” said Olson. “The Jewelry Manufacturing course provided the knowledge to understand the nature of the gold and materials I used, and how the stones are set. The Wax course gave me the capability to sculpt and wax the football players, and the Design course provided the comprehension to complete a mechanical rendering to communicate with the goldsmiths.”

Molina added, “GIA took that innate talent that Christopher has, and molded it into something he could use in the industry.”

“The trophy overwhelmed me,” said John Junker, president of the Fiesta Bowl. “I understood a little about design and some concepts, but seeing it live and in person was a very memorable moment.”

“Gold, diamonds and precious metals are symbols that cross all cultures, backgrounds and belief systems, and are an emblem for when we do something in life highly meaningful and full of purpose, “ Junker added. “This trophy adequately represents and does justice to a particularly important accomplishment such as winning the national championship.”

According to Junker, the trophy has been approved as the permanent trophy for the Fiesta Bowl, and the original will remain as an everlasting part of the Fiesta Bowl’s collection. Replicas will be presented to future winners. “It’s a one-of-a-kind item, and truly an heirloom for each championship team for years to come,” said Junker.

Trophy specifics:

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