First was the 13^th annual Jewelry Career Fair, the event that connects jobseekers – many of whom are GIA students and graduates – with industry firms seeking good people to fill varied and numerous positions. Career Fair was again a huge success, with some 1,000 people in attendance, plus almost 200 volunteers who helped to make the event possible. The second of our two Career Fairs this year will be held at our Carlsbad campus Oct. 17 for anyone interested in either job possibilities or recruiting opportunities. The abundance of positions being offered by firms participating in both Career Fairs is ample evidence of the continuing health of the gem and jewelry industry.

We also conducted our annual International Executive Council (IEC) meeting in New York, where industry leaders heard our latest plans in Education, Research, the Laboratory, and overall Institute activities. This informative event gives us an opportunity to provide updates on various GIA divisions and gain advice, comments, and recommendations from the attendees. Brook Ellis briefed the IEC on our progress in Education, including our growth in enrollments in all delivery methods and the new GIA School of Business. Tom Moses updated the Council on key issues in Research, most particularly our work on HPHT-treated diamonds, beryllium-diffused corundum and our latest findings on cut in round brilliants. Tom Yonelunas recapped operations in our Laboratory, highlighting the tremendous growth we have experienced over the past two years, including a 40% increase in overall activity since the year 2000 alone. I summarized our corporate-wide activities, and formally announced the dates of the next International Gemological Symposium in late August, 2006, commemorating GIA’s 75^th Anniversary. All in all, it was an excellent gathering, and informative for both Institute staff and attendees.

As always, it was an exciting few days of events and activity in New York. Our thanks to the many industry volunteers who assisted with Career Fair, the many trade leaders who gave their insights at the IEC meeting, and the American Gem Society for honoring a true hero of GIA and of gemology, G. Robert Crowningshield.

Reports from the JA Show in New York (July 27–30) indicate that many retailers—from mass merchandisers to quality independents—feel that the worst of the two-year slump is behind them. Buying, however, remained spotty—some firms did quite well, others not so well—as buyers continued to temper their optimism with caution.

“There was a lot of interest from retailers, but it was difficult to turn that interest into a sizeable order,” said one exhibitor with a design-oriented line. “Still, I believe this show was better than last year.”

Consumer confidence, however, took a sharp fall in July, disappointing many economists who had noted that economic indicators, particularly the purchase of durable goods—high-ticket items designed to last three years or longer—have been picking up. However, rising unemployment and the increased financial burdens on state governments to fund education and jobless benefits promise to remain a significant drag on whatever recovery may lie ahead in the second half of 2003.

DIAMONDS: The Antwerp Diamond High Council (HRD) announced a new process to identify the area of origin of diamonds last week, but it is a long way from any practical application, according to a spokesman for De Beers. (Senior HRD officials are on vacation until Aug. 18 and not available for comment.) And those practical applications may be limited to identifying stolen goods.

Andy Bone, who monitors the conflict diamonds issue for De Beers, stresses that the test will not be useful in deterring trade in illicit diamonds because most such stones are alluvial in origin, having been eroded from primary deposits in eastern Angola and deposited all over the country and across the border in the DRC (Democratic Republic of the Congo). Thus, potential conflict goods would carry the same “signature” as diamonds legitimately mined from the primary kimberlite deposits.

Bone stressed that De Beers “fully supported” the HRD research to the point of providing samples from four mines. The reason is security.

Bone said theft of diamonds from mines and sorting facilities has been a major problem for De Beers (and every other diamond producer) over the years—particularly in Namibia, where losses from beach deposits historically reached 10% or more. Those deposits are nearly depleted, but theft from sorting operations remains a problem.

“We always had a very difficult time proving that stolen diamonds indeed came from our mines. With this technology, we will be able to do so, thus it’s very much in our interest to see this work through,” said Bone.

Bone says De Beers is fully committed to further support of this research, but cautions there is a long way to go—particularly because it will take years to build a database of samples and information from every diamond producing locale in the world. He had no estimate on the cost of each test.

“The biggest risk we see is from people who expect too much from this right away. It’s in its very early days, and it will take a long time before real, practical applications will come from this.”

De Beers’s announcement that earnings from rough diamond sales increased 34% to $414 million during the first half of 2003, and that its stockpile has been reduced by $600 million, overshadowed several more important announcements arising from its press conference.

First, De Beers’s diamond sales do not reflect current market conditions. They are instead a lagging market indicator, because manufacturers constantly seek rough supplies and rarely stop buying in slow times unless the banks or dwindling cash reserves force them to slow down. This process can take two years or more, and thus we often find that De Beers’s sales slow down just as a new up-cycle begins.

Much more important from a long-term perspective is De Beers’s announcement that it is actively pursuing a resolution with the U.S. Department of Justice over long-standing anti-trust allegations and possibly will open a U.S. office.

De Beers Managing Director Gary Ralfe noted that, following meetings with the US State Department, it would soon try to start settlement discussions with the Justice Department. This could lead to it re-entering the U.S. market by the end of next year, according to a report in the Financial Times of London.

CONFLICT DIAMONDS: The Kimberley Process finally became law in the United States on July 30, after President Bush issued an executive order requiring producers to certify that all rough diamond imports are of legitimate origin. The Kimberley Process certificates are issued through the U.S. Kimberley Process Authority (USKPA). The rules require that each certificate be assigned a unique number by the Automated Export System of the U.S. Census Bureau.

The USKPA is an industry-based organization that licenses shipping and diamond companies to issue K.P. certificates for use with exports of rough diamonds from the United States. The USKPA requires strict procedures for issuing and tracking K.P. certificates, and conducts periodic audits to assure the integrity of the system. The directors of the USKPA are Matthew Runci of Jewelers of America, Martin Hochbaum of the Diamond Dealers Club of New York, and Cecilia Gardner of the Jewelers Vigilance Committee.

The U.S. industry has already been operating under a voluntary international program of self-regulation by providing warranties for all diamonds. These warranties, provided by suppliers of rough and polished diamonds as well as suppliers of jewelry containing diamonds, state that the diamonds have been purchased from legitimate sources not involved in funding conflicts and in compliance with United Nations resolutions.

MACRO: While most economic signs point toward recovery, the job market remains weak and will remain a drag on growth for the foreseeable future. The U.S. Department of Commerce reported that second quarter growth hit 2.4%, nearly a full percentage point above expectations. While key factors such as business investment performed well, some of this growth was buoyed by the largest increases in defense spending since the Korean War 50 years ago. The U.S. Department of Labor reported that the economy shed another 44,000 jobs in July compared to June. Analysts were hoping to see employment holding steady. In addition, the department revised its May job loss number to 72,000 from the previously reported 30,000.

Russell Shor
Senior Industry Analyst

Using a patented CVD process (U.S. patent no. 6,582,513), Apollo Diamond Inc. of Boston, Mass., has successfully grown facetable laboratory-created diamonds. Four crystals (0.34-0.87 ct.) and four faceted samples (0.14-0.31 ct.) were submitted to the GIA Gem Laboratory for examination. The faceted samples ranged from faint brown to dark brown (see figure). Clarity was equivalent to VS₁ to SI₂; some small and irregularly shaped gray-black inclusions were observed in some samples, due to deposition of diamond-like carbon or graphite (as suggested by Raman spectroscopy). Characteristic strain patterns were observed, which were different from those seen in natural diamonds. Also, since no flux is employed in the growth process, the metallic inclusions typically seen in synthetic diamonds grown by HPHT processes are not present in CVD laboratory-grown diamonds. All of the samples fluoresced a very weak yellow-orange to long-wave UV radiation, and a weak to moderate yellow-orange to short-wave UV. As a characteristic feature, the CVD synthetic diamonds displayed strong red fluorescence while exposed to high-energy UV radiation in the De Beers DiamondView.

Infrared absorption spectra showed that the CVD laboratory-created diamonds were type IIa, and some contained trace amounts of isolated nitrogen. Photoluminescence spectra suggested the presence of N-V centers, indicated by very strong emission peaks at 575 nm and 637 nm. Also observed were features such as H-related absorption at 3123 cm^-1 in the mid-infrared range and a relatively strong photoluminescence emission at 737 nm due to trace impurities of silicon.

According to Apollo, gem-quality crystals weighing up to 3 cts. could become available in the near future. Apollo is cooperating closely with the GIA Gem Laboratory to ensure that these CVD laboratory-grown diamonds are correctly identified before being introduced into the market. Gemological and spectroscopic studies of additional samples will be reported in a future article.

This entry was prepared by Wuyi Wang, Matt Hall, and Tom Moses of the GIA Gem Laboratory, New York, and Jim Shigley of GIA Research, Carlsbad; the photo is by Elizabeth Schrader. For more on these CVD laboratory-grown diamonds, as well as other gem materials from around the world, see the Gem News International section in the upcoming Fall 2003 issue of Gems & Gemology. To subscribe, visit Gems & Gemology online. Or contact Circulation Coordinator Debbie Ortiz at dortiz@gia.edu, or call toll free 800-421-7250, ext. 7142. Outside the U.S. and Canada, call 760-603-4000, ext. 7142.

Thermal reaction testing is just what it sounds like: You touch a gem with a heated device and watch its reaction. In some cases you simply hold it near a gem and watch the reaction. You need a hot point to perform this test. This can be a thermal reaction tester (TRT), which is an electronic, handheld device designed specifically for thermal reaction testing. The TRT has a fine point. Electricity heats the point to a temperature that can cause a thermal reaction in the material being tested. A hot point can also be a fine-point soldering iron or any other pointed device that can be heated to a high temperature.

The test is very simple. Use the hot point to touch or nearly touch the test specimen in an inconspicuous place, and then smell or observe the results.

Some gem materials—especially organic gems like amber, conchiolin coral (black coral), tortoise shell, jet, and their plastic imitations—emit characteristic odors when tested with a hot point. Those odors can help you identify them.

Amber will emit a resinous odor similar to that of incense. Conchiolin coral and tortoise shell have a protein odor, like burning hair. Jet has an odor like burning coal, or an oily odor, like tar or asphalt. Plastic emits a variety of acrid odors such as camphor, carbolic acid, fish, formaldehyde, protein, sour milk, sweet fruit, and vinegar.

When testing with a hot point, choose an inconspicuous part of the stone. Never perform this or any other potentially destructive test without the gem owner’s permission. Never touch the hot point to any gem. Adjust the temperature so the tip of the tester glows a dull red, and hold the tip very close to the specimen. If it is necessary to touch the stone, do it lightly and briefly. While it is hot, quickly bring the specimen to your nose and note the odor.

Treaters typically use wax to enhance the surface appearance of jade carvings and turquoise, and to seal the dye in lapis lazuli. The hot point can help you detect wax and other surface coatings, like plastics.

To test for surface coatings with a hot point, hold it about 1/16 of an inch (1.5 mm) from the stone. If the stone is coated with wax or paraffin, a sweating effect will appear under low magnification as the material liquefies and flows. A stone that is coated with plastic will issue an acrid odor as the coating burns.

Always perform the test before you use heavy liquids. Porous materials can absorb heavy liquids and sweat them out during hot-point testing. Be certain the stone being tested contains no heavy liquids from previous tests.

The fractures in emeralds are commonly filled with oil or polymer, so this is a common test for these stones. This test should be performed under magnification so the reaction can be seen more easily.

Again, hold the hot point about 1/16 of an inch (1.5 mm) from the stone. Look for movement of the oil or polymer in fractures that extend to the surface. Oils or polymers can seep out, making the gem appear to be sweating.

Use extreme caution when testing emeralds, and observe the precautions noted above.

You can learn more about the identification of gemstones in the GIA Gem Identification course. For information on GIA courses and diploma programs, click here, e-mail eduinfo@gia.edu, or call 800-421-7250, ext. 4001.

Smith has extensive experience in the identification of a broad range of gem materials and detection of treatments, as well as in determining origin-of-color for colored diamonds. These were his major areas of concentration at the Gübelin Gem Laboratory in Switzerland, where he worked for most of the last 12 years.  Prior to that, Smith worked in the GIA West Coast Identification Laboratory as a Staff Gemologist from 1986 to 1991.

In announcing Smith’s appointment, GIA Gem Laboratory CEO Thomas C. Yonelunas said, “I am delighted to welcome Chris back to GIA and look forward to the many contributions he will make as we move forward in the development of expanded colored stone services and gemological research. We have worked closely with Chris and the Gübelin Laboratory over the years on a number of significant identification and treatment projects, and his work has been instrumental in the success of these research projects.”

Smith will work closely with Yonelunas, Tom Moses, vice president of Identification and Research Services, and Shane McClure, director of West Coast Identification Services. Smith’s responsibilities will include establishing the focus of many of the Institute’s research efforts on gem materials and treatments, as well as assisting in the development of new gemological identification services, said Yonelunas.

Smith has authored or co-authored articles in many gemological journals worldwide, including Gems & Gemology, The Journal of Gemmology (U.K.), The Australian Gemmologist, and Lapis Mineralien Magazin (Germany). Topics of these articles ranged from rubies mined in Nepal and sapphires from Vietnam, to diamonds processed by high pressure/high temperature annealing to improve their color.

Most recently, Smith, along with McClure, won G&G’s Dr. Edward J. Gübelin Most Valuable Article Award for their 2002 article and chart on gem treatments. In addition, Smith has lectured on gemological topics in the U.S. and throughout Europe and Asia.

Smith said he is looking forward to tackling the challenges inherent in identification of gem materials and treatments for the benefit of the public as well as the integrity of the industry. “The treatments we are seeing are becoming more sophisticated, so detecting them becomes increasingly more challenging,” said Smith. “Technological developments in treating gem materials often leave us in the difficult position of reverse-engineering a suspected treatment to determine its origin and components,” he added.

He emphasized the importance of advanced analytical techniques and equipment, such as Raman spectroscopy, as routine measures to keep pace with the emergence of new treatments.

Aug. 4, 2003

In the lead article, “Beryllium Diffusion of Ruby and Sapphire,” noted physicist Dr. John L. Emmett and co-authors provide an in-depth report on how beryllium diffusion can cause a variety of color changes in corundum. The result of collaborative work by several laboratories—including the GIA Gem Laboratory and the AGTA Gem Testing Center—this article concludes with the most current information on detecting beryllium diffusion, including a fold-out chart with dozens of instructive photos and photomicrographs.

“This treatment is one of the greatest challenges to the colored stone industry in many years,” commented G&G editor-in-chief Alice Keller. “It is critical that gemologists not only understand how beryllium diffusion affects ruby and sapphire but also know how to detect it or when to send a suspect stone for more sophisticated testing.”

These include the 203.04 ct D-color De Beers Millennium Star, the 101.29 ct Fancy Vivid yellow Allnatt, and the 59.60 ct Fancy Vivid pink Steinmetz Pink. This article is a valuable counterpart to a once-in-a-lifetime exhibit.

Still more news and research can be found in the regular sections of the Summer issue. The Lab Notes column contains the latest reports from the GIA Gem Laboratory, whereas Gem News International offers more finds from the Tucson gem shows and around the world. The issue concludes with the popular Book Reviews and Gemological Abstracts sections, which review the current literature in gemology and related subjects.

To order a copy of the Summer 2003 issue or to subscribe, visit www.gia.edu. Or contact Circulation Coordinator Debbie Ortiz at dortiz@gia.edu, or call toll free 800-421-7250, ext. 7142. Outside the U.S. and Canada, call 760-603-4000, ext. 7142.

July 28, 2003