RETAIL: Several major jewelry retailers report that holiday sales have begun to pick up nicely after a slow start. An executive for one major chain noted that sales of larger (carat-plus) diamonds have “started to come around.”

Dale Perelman, president of King’s Jewelry (New Castle, Pa.), a mid-level chain that operates about 55 stores in the Midwest, said larger three-stone diamond rings have been in strong demand, along with a new 90-facet, proprietary-cut round brilliant that King’s has promoted heavily.

“In all, we’re about on schedule – a little ahead of last year.”

An executive of another mid-level retail jewelry chain reported that unit sales were up slightly from last year, though the average price point has been "a bit lower.” And a buyer for a major department store noted that sales have increased “nicely” in the past week, adding that “it’s all about price points ending in 9’s,” referring to $99 and   $199 promotional items.

Retailers say holiday-season jewelry sales are splitting into two camps: Middle- and lower-income consumers – hard pressed by rising energy bills – are buying slightly more but cheaper items this year, while the upper-income market remains cautious but quality conscious.

Retail sales in general got off to a slow start, prompting a lot of discounting in the malls. The International Council of Shopping Centers (ICSC) reported that retail chain stores experienced a 1.7% decline in sales during the second week of the season over the first week, though the total was 3.3% ahead of the same period last year.

ICSC economist Michael P. Niemira noted in an ICSC bulletin, “This season has followed the same shopping pattern we experienced last year – a moderate start with softness the week following.”

Reuters noted a pickup in the third week that supports the ICSC statement that “consumers will step up their holiday shopping in upcoming weeks to finish the 2004 season on the strong side.” The ICSC expected a year-to-year increase in sales of 3.5–4% this December. The National Retail Federation, which is usually more optimistic, forecasted a 4.5% gain in seasonal sales.

DIAMONDS: India’s huge diamond manufacturing industry – and American mass merchandisers – will feel relieved that the Western Australia state government has agreed to help Rio Tinto with the half-billion-dollar cost of redeveloping the Argyle Diamond Mine. To preserve jobs, Western Australia is willing to help the mining giant convert Argyle into an underground facility. For India’s diamond manufacturers and American retailers, Argyle is the primary source of affordable diamonds. The government announcement has ended eight years of speculation over the future of the Argyle mine. There is one catch: An independent auditor will be brought in to determine whether the mine would indeed have to close without government aid.

The Argyle mine was originally scheduled to either go underground or close in 2002. Rio Tinto deferred the decision six years by widening the pit and continuing above-ground mining, but the above-ground operation will reach its end in 2008. After that, production will have to come from underground extraction, or cease. Constructing the shaft and other infrastructure to convert the mine to an underground operation will take several years.

At its peak, Argyle yielded 42 million carats annually, mainly in smaller, lower-quality diamonds. In recent years, Argyle production has fallen to less than half that amount. An underground facility would not produce more than 15 million cts. a year, according to company projections, but closing the mine altogether would have created a great deal of unemployment in India, as well as a scramble for supplies of comparable rough.

AUCTIONS: Diamonds achieved strong prices at Sotheby’s Dec. 8 Magnificent Jewelry auction in New York. The auction realized $16.5 million, with 80% sold by lot and 86.8% by value. Lisa Hubbard, executive director of Sotheby’s Jewelry Department, said the results demonstrated the strength of the worldwide market for top jewelry pieces.

Some highlights of the sale included a three-stone diamond pendant set with a 15.11-ct. D-Internally Flawless pear-shaped diamond, which went for $1,128,000. A 10.34-ct. Fancy Light pink pear-shaped diamond drew $713,600 from a dealer.

Christie’s last jewelry sale of the year, held Dec. 14 in New York, realized $3.8 million, with 77% sold by lot and 79% by value. Highlights included a circular-cut light yellow VVS2 diamond of 19.21 cts., which fetched $136,000 ($7,100 per ct.); an oval Sri Lankan sapphire ring of 60.02 cts., which sold for $131,000, or $2,100 per ct.; and a pair of invisibly set sapphire and diamond ear clips by Van Cleef & Arpels, which were purchased by a private European buyer for $125,000.

These sales followed two very strong auctions by Sotheby’s and Christie’s in Geneva last month which totaled over $50.5 million. The highlight of the Christie’s Nov. 18 sale was a 55.92-ct. round brilliant D-Internally Flawless diamond that brought $4.5 million.

Russell Shor
Senior Industry Analyst

During a trip to Sri Lanka in mid-2004, a client of the SSEF Swiss Gemmological Institute purchased, among other faceted corundums, a red 1.05-ct. modified round brilliant with unusual color zoning. Refractive indices of 1.760–1.770 and a hydrostatic specific gravity (S.G.) of 4.00 indicated that it was corundum.

Viewed face-up, the sample appeared uniformly purplish red (figure 1, left). From the side, however, it appeared very light blue in the crown portion, while the culet area was purplish red (figure 1, right). Such color zoning has been observed in various colors of sapphire from Songea (Tanzania) and Sri Lanka, especially in blue and orange stones. A strong red fluorescence to long-wave UV radiation was observed in the culet area, and Raman spectroscopy confirmed that both parts were corundum.

With magnification, it became obvious that this was a Verneuil (flame fusion) synthetic sapphire, as numerous gas bubbles were visible in the very light blue portion. When immersed in methylene iodide, the boundary between the purplish red and very light blue zones appeared curved (figure 2). However, no curved striae were observed in the purplish red portion. A qualitative chemical analysis of the table facet by energy-dispersive X-ray fluorescence showed only aluminum; no gallium was detected, as expected for a flame-fusion synthetic corundum.

These observations indicated that the sample was cut from a color-zoned boule of Verneuil synthetic corundum, with the purplish red part representing the small center of the otherwise very light blue boule. This also explained the large fissures observed perpendicular to the growth direction. Verneuil boules usually have some tension along their growth axis along which they are split before being cut. Obviously this was not done in this case, and therefore the tension cracks developed.

This entry was prepared by Drs. Lore Kiefert and Henry A. Hänni of the SSEF Swiss Gemmological Institute, Basel, and Dr. Karl Schmetzer, a researcher based in Petershausen, Germany. For more cutting-edge updates from around the world, read the Gem News International section in the upcoming Winter issue of Gems & Gemology. To subscribe to G&G, click here. Or contact Circulation Coordinator Debbie Ortiz, or call toll-free 800-421-7250, ext. 7142, or fax 760-603-4595. Outside the U.S. and Canada, you can also call 760-603-4000, ext. 7142.

Lapis lazuli’s name is an amalgamation of the Latin word for stone (lapis) and the Persian word lazaward, denoting the color blue. Often referred to as “lapis” in the trade, the gem has a very long history of cultural and ornamental use. It has been mined in Afghanistan, the source of the finest material, for more than 6,000 years. Other localities include Iran, Russia, and Chile.

The gem can be semitranslucent to opaque, and it comes in a range of colors that include deep violet blue, royal blue, light blue, turquoise blue, and greenish blue. Cutters fashion lapis into cabochons, carvings, signets, and tablets. Skilled artisans use it with other ornamental materials for inlay work.

Lapis lazuli is a rock, which means it is an aggregate of several different minerals, primarily lazurite. Lapis often contains a whitish calcite matrix – the host rock that surrounds the gem – or flecks or veins of glinting yellow pyrite, or both. It can also contain diopside, sodalite, amphibole, feldspar, and/or mica. A smoothly uniform bodycolor, free of visible calcite and pyrite, is also possible, though rare.

The fact that lapis is an aggregate makes it harder to obtain a reliable refractive index (RI) reading. A vague spot reading at about 1.50 might be seen, although a reading on a calcite inclusion might reveal an RI of 1.67. Lapis fluoresces a weak to moderate green or yellowish green under short-wave ultraviolet light, but calcite inclusions might fluoresce pink under long-wave light.

Treaters commonly dye lapis to disguise calcite inclusions and give the surface a more even appearance. Signs of dye may be seen in cracks and surface pores. Some dyes come off when the surface of a treated gem is rubbed with a swab dipped in acetone or denatured alcohol. However, be sure to obtain the owner’s permission and conduct the test on an inconspicuous part of the stone, like the back of a cabochon, because it is potentially destructive.

Lapis might also be treated with paraffin coating or impregnation, which can improve the appearance of the gem’s polish, as well as act as a sealant for dyed gems. A hot point can be used to detect this treatment, as the heat will melt the paraffin and cause it to “bead.” Again, the owner’s permission should be obtained, as this is another potentially destructive test.

Gilson imitation lapis is believed to be a zinc phosphate made through a ceramic-type process and colored by synthetic ultramarine, a manmade pigment. The manufacturer sometimes adds crushed pyrite to give it a more realistic appearance. Gilson imitation lapis lazuli is opaque, with an intense medium to dark violetish blue color.

Gilson imitation lapis lazuli might reveal a vague spot reading between 1.53 and 1.55, a little higher than natural lapis’s 1.50 reading. The Gilson imitation typically has uniform color and an even distribution of pyrite grains but does not contain any calcite. Its surface shows many small, angular, dark violet patches in reflected light, while natural lapis lazuli may show dark rings around pyrite grains.

Unlike natural lapis, Gilson imitation lapis is inert to UV radiation. Its specific gravity of 2.33–2.55 is lower than that of the natural material, which is usually around 2.75. In addition, Gilson imitation lapis is more porous than natural lapis.

To learn more about identifying gemstones, refer to the GIA Gem Identification course. Click here for information on this course and other GIA programs.

Continuing its tradition of delivering gemological education services worldwide, GIA announced it will open a new education branch in Dubai in fall 2006. It will be the Institute’s 12^th overseas location, and 15^th overall.

The new GIA Education branch will be located in the Dubai Metals and Commodities Center’s (DMCC) landmark building, the 65-floor Almas Tower. It will comprise more than 5,000 square feet and include two classrooms. Classes will begin early in 2007 and will include the Graduate Gemologist (G.G.) diploma program and other GIA courses and classes.

“Dubai has grown steadily as a major trading center in the Middle East,” said GIA Vice President of Education Brook Ellis. “There is a thriving gem and jewelry industry there, and a corresponding demand for greater gemological education services. GIA will be pleased to deliver its quality education in the region.”

Ellis added that expanding into Dubai also reflects growing worldwide demand for gemological education. “Our On Campus enrollments have filled quickly this year, and after opening our new branch in Mumbai, and relocating our New York, Los Angeles, and Hong Kong schools in 2004 to accommodate more students, we know that there is still unmet demand. This is one more step in our service to the industry and for the public.”

Tawfique Abdullah, CEO of the DMCC, remarked, “Creating the right educational infrastructure is a key ingredient not only to develop Dubai into a global hub for the gem and jewelry sectors, but also to position the Emirate as an industry leader. We are delighted to see GIA come to Dubai to set up such training facilities.”

The DMCC was created in 2002 as part of a strategic effort by the Dubai government to establish a precious goods market. It was intended to provide the market infrastructure needed to support a wide range of trading activities, particularly in gold and diamonds.

For further information on GIA diploma programs and other education offerings, click here.

A unique exhibit of nearly 100 jewelry items, mineral specimens, gems, objets d’art, and carvings is now on display at GIA’s New York campus. Originating from GIA’s Museum Collection, the pieces represent some of the newest and most exceptional additions to the Institute’s set. It will be on display through 2005.

On view throughout the New York campus, the exhibit aims to educate students and the public about the fascinating world of gemology. A single crystal of heliodor measuring 18 x 5.5 x 4.5 cm is one of the pieces featured. A variety of beryl, the stunning crystal is doubly terminated and shows interesting surface etchings characteristic of the heliodors from the Wolodarsk pegmatites from Ukraine, said GIA Museum Curator Terri Ottaway.

Another intriguing Ukrainian heliodor, a 69.88-ct. gem, has been fashioned into a work of art by Michael McCue Dyber. Hemispheres of different sizes and depths are carved and polished into the back of the gem, where they act like mirrors reflecting the light. “It’s a lovely and remarkable piece,” Ottaway said.

An important collection of rare red beryl crystals and cut stones, donated to GIA in 2003 by Rex Harris, Michael Nielson, and Tina Nielson of Red Beryl Inc., was also sent to New York for the exhibit. “These crystals and faceted stones are notable not only for their attractive color, but also for their rarity,” Ottaway said. “Utah is the only location in the world where gem-quality specimens of this kind are found.”

Other pieces from the exhibit include impressive jewelry items, such as a lady’s ring donated to the Institute by John and Harriet Coccomo, which features a 2.30-ct. emerald surrounded by 72 tapered diamond baguettes.

Award-winning pieces by famous jewelry designers are also included. Among them are Paula Crevoshay’s “Sandia Sunset,” an 18K gold interchangeable brooch/pendant, which features a 6.18-ct. black opal, accented by two round faceted Mandarin garnets from Namibia, a square Burmese red spinel, a round Ceylon (Sri Lanka) sapphire, and eight round diamonds.

“What a fantastic way to debut part of GIA’s excellent collection of gems, minerals, and jewelry in New York,” said GIA Museum Director Elise Misiorowski. “The pieces that are on display there will not only help teach our students about the science of gemology, but they will also help demonstrate how beautiful gems can be incorporated into jewelry.”

The public is welcome to view the exhibit, located at 270 Madison Ave. at 39th St., Monday through Friday, 8 a.m. to 5 p.m. Call GIA New York at 212-944-5900, or click here for more information about the Institute’s education programs, museum exhibits, and laboratory services.

Dec. 14, 2004

The Institute's just-released 2005 Education catalog makes it easy for anyone to embark on an exciting new dream career in the industry. From those seeking their first professional position or those already employed in gems and jewelry, to career changers looking for a fresh start, the GIA catalog points the way to success. By highlighting various jewelry career opportunities – such as gemologist, designer, jeweler, manager, buyer, appraiser, and even business executive – GIA’s 2005 Education catalog helps students match their career goals with the appropriate diploma program.

Prospective students can simply choose their jewelry dream career by browsing the catalog’s table of contents. They are then directed to the exact GIA education program required to launch their new career in the industry. Each GIA diploma program can lead to a rewarding career in jewelry or gemology, or jewelry business management.

The 2005 catalog provides in-depth course descriptions for the Institute’s diploma programs, including: Graduate Gemologist (G.G.), Accredited Jewelry Professional (A.J.P.), Graduate Jeweler (G.J.), and Applied Jewelry Arts (A.J.A.). The GIA School of Business is also prominently featured, with details on how students can learn real-world jewelry business skills in fields such as marketing, accounting, management, and ethics and law.

With three U.S. campuses and 11 international locations, as well as Distance Education, online learning, and traveling Extension classes, GIA makes it convenient to learn gemological skills and business concepts worldwide. The catalog also outlines how students can create their own timetable by choosing the option of combining On Campus and online classes to better fit their schedule and needs. A GIA diploma and resulting jewelry career opportunities are conveniently within reach for almost anyone.

“The opportunities to earn a GIA diploma are expanding worldwide, and the market for jewelry is global," said GIA Vice President of Education Brook Ellis. "GIA's international and domestic growth has been phenomenal, and with the help of the new catalog, students can simply choose a career that inspires them and then discover how to carry out their aspirations. Step-by-step, it shows how they can mold their future and make a dream career become reality.”

“I had been working for 15 years as a real estate agent in Texas, and I finally followed my dream and my heart to GIA,” said Phyllis Stokely, a recent G.G. student at the Los Angeles branch. Stokely now works at Saks Fifth Avenue’s fine jewelry department in San Antonio, Texas. “The catalog was incredibly informative, and it helped me to pinpoint the classes I would need to take to become a gemologist. I’m so happy to finally be here, working at my dream career.”

To request a copy of GIA’s 2005 Education catalog, call 800-421-7250, ext. 4001, or 760-603-4001 outside the U.S. and Canada, or e-mail GIA Education.