I’ve been traveling almost nonstop of late, including trips to two important international conferences. Public confidence was a central topic at both conferences, truly a global concern.

In late February, the International Colored Gemstone Association (ICA) held its biannual Congress, this year at the center of the colored stone world in Bangkok, Thailand. The Congress was well attended, with two major themes emerging: the need to build public desire for colored gemstones, and the need to ensure consumer confidence in colored stones. These two concepts are not mutually exclusive: They build and support one another. Public desire for colored gems cannot be built without the confidence of consumers. And public confidence in colored stones cannot be achieved without proper identification and full disclosure of any treatments that may exist.

Consumer confidence was also a major theme of the annual CIBJO (International Confederation of Jewellery, Silverware, Diamonds and Stones) Congress, which was held in early March in Hong Kong. Numerous speakers emphasized this in the opening session of the Congress and throughout the three and a half days of presentations. Why was consumer confidence such an issue at these two global congresses? I suspect the answer is simple: Leaders know that public confidence is absolutely vital to the preservation of the industry, and they are speaking up about it.

What has changed? James Evans Lombe of the Diamond Trading Company described it this way in his excellent talk: “Consumer attitudes have changed – from ‘I’ll trust you’ to ‘Tell me more’ to ‘Show me’.” The expectations – even demands – from consumers are like never before. The industry would be wise to meet these expectations, or face the consequences of its inaction.

After all, jewelry is fundamentally a discretionary luxury purchase, and consumers have many other choices. According to Lombe, “Trust can only be achieved if consumers have complete confidence in the professional and ethical standards – and technical skills – of the gem industry.” Jewelry is an emotional purchase that must be backed by competent professionals who can win the respect of the public. And this is where GIA comes in.

If you are one of many who, for so many different reasons, have put off your gemological or jewelry-related training, now is the time to reengage. There is no better way to win public confidence in the gems and jewelry you sell than to pursue the education that will set you apart from others. It is your roadmap to success and your obligation to customers.

I encourage you to embrace the challenge of winning public confidence in the industry by taking the courses that will make a difference in your life, your work, and your career. You’ll be glad you did, and the industry will be better for it.

Dealers and retailers report that business was solid at all levels in February, although retailers remain resistant to higher prices. The Hong Kong International Jewellery Show was strong – no surprise there – as were Valentine’s Day sales in the U.S. However, the weak U.S. dollar, combined with rising prices for rough diamonds and some colored stones – notably better-quality sapphires – may cause a crunch for retailers later this year, as their inventory needs conflict with dealers and manufacturers who are grappling with dwindling profits.

DIAMONDS: De Beers reported March 3 that worldwide retail diamond sales rose 6% in local currency during 2004. In U.S. dollar terms, the increase was 8%, reflecting the weakness of the U.S. currency. The strongest growth regions were Asia-Pacific, the Persian Gulf, and India. The U.S., which now accounts for just over 50% of worldwide diamond sales, had a solid holiday season, and Japan reported a small gain for the second consecutive year.

De Beers’s South African mines produced a total of 13.7 million cts. in 2004, an increase of 15% from 2003. The old Kimberley mines produced a record 2 million cts., a production level last achieved in 1914.

Polished stocks in the cutting centers declined, but bank debt continued to climb in line with the increased volume of trade. There was strong demand for rough diamonds throughout the year, resulting in Diamond Trading Company (DTC) sales of $5.695 billion, 3% higher than in 2003. During the year, the DTC raised its rough diamond prices on three occasions, for a cumulative average price increase of 14% over 2003. De Beers’s earnings for calendar 2004 were $652 million, 11% higher than 2003.

The company noted that 2005 “is likely to be a more challenging year for the diamond industry. However, with the transformation of the industry that has taken place over the last few years, there is now growing evidence that diamonds are competing favorably with other luxury products.”

RETAIL: Finlay Enterprises is making a major move upscale, with a proposed acquisition of Carlyle & Co. Jewelers, and a simultaneous downscale move by inking an agreement to carry synthetic moissanite in its leased departments.

Carlyle is a privately owned regional chain, located primarily in the southeastern U.S., with 32 jewelry stores and annual sales of approximately $80 million.

Charles & Colvard, manufacturers of synthetic moissanite, announced that jewelry containing its products will be distributed at 114 Finlay Enterprises–leased department store jewelry counters.

Finlay Fine Jewelry Corp. is the largest U.S. operator of licensed fine jewelry departments in department stores, including Robinsons-May, Lord & Taylor, Famous-Barr, Marshall Field’s, Rich’s-Macy’s, and Bon-Macy’s.

COLORED STONES: Gem traders at the recent International Colored Stone Association Congress in Bangkok praised the reforms instituted by the government of Madagascar in liberalizing its gemstone export system. Foreign and local gem traders can now legally buy gemstones in Madagascar and export them, according to a statement issued by the country'sMinistry of Energy and Mines.

Before the ratification of this reform measure on Feb. 18, it had been illegal for foreigners without Malagasy affiliates to buy gemstones in the country and export them. As a result, there was reportedly widespread smuggling of gemstones, causing the government to lose millions of dollars in much-needed revenues.

MACRO: February same-store sales rose 4.9% year on year, thanks to an improving labor market, according to an International Council of Shopping Centers (ICSC) survey. This is the strongest one-month showing since May 2004.

The reasons for this strength are not entirely clear, said Michael Niemira, ICSC’s chief economist and director of research, but “some improvement in the labor markets” is a key factor.

Luxury retailers performed well, showing average increases of 7.2% year on year, though they fell back from their January performance of 8.6%. Discounters rose 4.9% overall, on the strength of Target’s 9% posting and TJX’s 6%. Department stores were up 2.8% as a group. Neiman Marcus enjoyed the biggest gains, up 7.7%, followed by Kohl’s and JCPenney, both of which climbed 6.1%.

Russell Shor
Senior Industry Analyst

At this year’s February AGTA GemFair in Tucson, Dudley Blauwet (Dudley Blauwet Gems, Louisville, Colo.) had a few rough and cut samples of emerald from a new deposit in China. According to miners and mineral dealers in northern Pakistan who have visited the deposit or purchased rough near it, the mining area is located in the Taxkorgan region in western Xinjiang Province. It is near the village of Dabdar, approximately 120 km (or a two-hour drive) from the Khunjerab Pass.

Blauwet first heard of the Chinese emerald discovery while in northern Pakistan in November 2003, but he saw only poor-quality rough at that time. During a return visit to Pakistan in June 2004, he obtained additional samples and also saw faceted emeralds weighing about 2 cts. By October-November of last year, news about the deposit had become more widespread in Pakistan, and Blauwet was shown photographs of the mine. These revealed a large pit made with bulldozers and other earth-moving equipment. 

Examination of the three faceted emeralds (0.29–0.46 ct.; see figure) showed the following properties: color – bluish green, with moderate dichroism in yellowish green and bluish green; diaphaneity – transparent; refractive index (RI) – n_o=1.588–1.589 and n_e=1.580–1.581; birefringence – 0.007–0.008; specific gravity (SG) – 2.69–2.74; Chelsea filter reaction – weak red; and fluorescence – inert to both long- and short-wave UV radiation. Absorption lines in the red end of the spectrum (due to chromium) were visible with the desk-model spectroscope. Microscopic examination revealed “fingerprints,” fractures (with evidence of clarity enhancement), two- and three-phase inclusions (some of which were jagged in appearance, resembling those in Colombian emeralds), and fine growth lines parallel to the c-axis (observed perpendicular to the optic axis) that had an almost “Venetian blind” appearance. One of the stones contained low-relief crystals that were identified by Raman analysis as plagioclase.

This entry was prepared by Elizabeth P. Quinn (GIA Gem Laboratory in Carlsbad) and Dudley Blauwet. More information on this emerald deposit, as well as additional reports on other items seen at this year’s Tucson gem shows, will be published in the Gem News International section of the Spring 2005 issue of G&G. To subscribe, click here or contact Circulation Coordinator Debbie Ortiz. Call toll-free 800-421-7250, ext. 7142. Outside the U.S. and Canada, call 760-603-4000, ext. 7142.

Peridot has long been associated with light; the ancient Egyptians called it the “gem of the sun.” It is a plentiful and affordable gemstone that dealers usually sell in calibrated sizes. Peridot occurs in an attractive range of color, from brownish or yellowish green to greenish yellow, and is transparent. The finest hue is green with no hint of yellow or brown. This color is usually preeminent in stones that weigh 10 cts. or more.

Peridot has several characteristics that make it fairly easy to distinguish from other transparent green gems. Its refractive index (RI) range is 1.65–1.69. Its birefringence is about 0.035, and it shows moderate doubling due to the strength of its double refraction. Its spectrum shows three strong, narrow bands at 453, 477, and 497 nanometers (nm).

Most high-quality peridots are eye clean. However, magnification sometimes reveals dark chromite crystals that look like tiny black spots. These spots might be octahedral in shape and are often surrounded by tension fractures. Magnification may also reveal reflective disk-like liquid-and-gas inclusions often referred to as “lily pads.”

Some other transparent green stones come close to peridot’s typical colors, but their characteristics easily set them apart. Green tourmaline has a lower RI of 1.62–1.64 and a lower birefringence of 0.020. Diopside’s RI is higher, at 1.67–1.70, and its birefringence is lower, up to 0.030. It also has a distinctive spectrum that commonly features a 505 nm line not found in peridot’s spectrum. Synthetic spinel’s 1.73 RI and singly refractive character will separate it (and synthetic spinel triplets) from peridot. Magnification will also reveal the assembly of synthetic spinel triplets.

A step-by-step procedure to identify natural and synthetic gems is taught in GIA’s Gem Identification course. Click here for information on this course and other GIA programs.

The jewelry industry’s much-anticipated annual recruiting event is slated to take place in July and October. Hosted by GIA, Jewelry Career Fair will be held in New York City at the Jacob K. Javits Convention Center, July 29 from 9 a.m. to 3 p.m., and again at GIA’s world headquarters in Carlsbad, Calif., Oct. 7 from 8:30 a.m. to 3 p.m.

Drawing thousands of job seekers and scores of employers representing some of the finest jewelry firms in the world, Career Fair is a showcase for the glittering employment opportunities available in fine jewelry. Free to job seekers, the event also offers a wealth of career development information in the form of one-on-one coaching, skill seminars and workshops, resumé reviews, and networking, all designed to help further one’s career in the jewelry industry.

Employers look forward to Career Fair as much as job seekers and cite the event’s advantages, such as meeting fresh talent with a passion for jewelry, finding a variety of qualified applicants, and exposing their businesses to a large audience of job seekers in a short period of time.

“This event is an excellent opportunity to meet incredibly talented students with a true passion for our industry. We are thrilled to participate year after year," said Dené Jolly, recruiter from Robbins Bros. Rahul Kadakia, senior vice president of Christie’s, said, “We try to meet the next generation of specialists for Christie's Jewellery Department.” Kadakia, a GIA Graduate Gemologist, is himself a former Career Fair job seeker who found his first job in the industry at the event.

Career Fair also attracts some of the jewelry industry’s most respected leaders and experts, who offer attendees the benefit of their experience and wisdom as seminar speakers and personal career coaches.

“Career Fair is truly a unique opportunity for job seekers and businesses alike," said Kathryn Kimmel, Career Fair co-founder and GIA’s vice president of Marketing and Public Relations. "If you’re looking for an entry point into the fine jewelry industry, or if you’re looking to hire that next rising star, Career Fair is definitely the place to be,” said Kathryn Kimmel, Career Fair co-founder and GIA’s vice president of Marketing and Public Relations.

Career Fair was founded by GIA and The Jewelers 24 Karat Club of Southern California. Prime sponsor for the New York Career Fair is The VNU Jewelry Group, and the JCK Publishing Group is the prime sponsor for the Carlsbad event. Employers interested in recruiting can contact GIA’s Career Services office at 800-421-7250, ext. 4195, or e-mail Kimberly Northup. Job seekers can click here for more information, or call GIA’s Jewelry Career Fair hotline at 800-421-7250, ext. 4100, or e-mail Career Fair.

March 1, 2005

Dr. David McKinney, associate professor from the GIA School of Business, will travel to the Institute’s London branch to conduct a weeklong executive training program, April 4–8. The conference is designed to help those in the jewelry business advance to leadership positions and to give insight into how to expand jewelry businesses internationally.

In addition to an industry overview and discussion of current jewelry trends in Europe and the UK, other topics include: Global Trade in the Jewelry Marketplace; International Business Planning; Merchandising; Sales Management and Training; Management; Leadership; and Marketing.

“It’s going to be an intensive week,” said GIA School of Business Dean Dr. Mink Stavenga. “Everything from building an international jewelry business, to planning a global advertising campaign, to developing effective leadership styles will be covered.”

The program also includes discussions and interactive exercises dealing with specific global challenges, such as currencies and cultures. There will be opportunities to develop international strategic alliances, and tools to enhance participants’ jewelry businesses will be given. As an exercise, participants will also design a marketing program related to their business. A Certificate of Completion will be awarded.

GIA London is located at 99 Great Russell St. To register for the GIA School of Business Executive Training Program, e-mail GIA London, or call +44-0-20-7813-4321. Click here to learn more about GIA London.

Feb. 18, 2005

GIA Director of Research Dr. James E. Shigley updated attendees at the recent Tucson gem shows on the Institute’s latest work in studying synthetic diamonds, the clarity enhancement of rubies with a glass filling, and the development of a portable system to detect beryllium diffusion of corundum using a technique called LIBS (laser-induced breakdown spectroscopy).

Synthetic Diamonds
Shigley discussed both types of synthetic diamonds currently being manufactured: those grown through high-pressure and high-temperature (HPHT) processes, and those grown at high temperatures but low pressures using chemical vapor deposition (CVD). He pointed out that several companies are now marketing HPHT-grown synthetic diamonds, nearly all of which are colored. Shigley said the identification of synthetic diamonds has become more challenging over the past 10 years, largely because of the increased use of post-growth treatment processes to change colors, the production of higher-clarity crystals with fewer metallic inclusions, and the marketing of samples with more natural-looking, less saturated colors.

Techniques and equipment for identifying HPHT-grown synthetic diamonds include magnification (to detect features such as color zoning, graining, and metallic inclusions); UV fluorescence reactions; the desk-model spectroscope; and the DTC detection instruments (DiamondSure™ and DiamondView™). In addition, advanced testing using chemical analysis and more sophisticated spectroscopy techniques is now performed by major gem-testing laboratories. The identification of melee-size synthetic diamonds remains a practical difficulty, Shigley added.

Shigley noted that although GIA does not know of any commercial production of CVD-grown synthetic diamonds, continued technological developments have improved their quality. He said gem laboratories are turning to photoluminescence spectroscopy as one means to help identify CVD-grown synthetic diamonds. Only an experienced gemological laboratory could reasonably be expected to identify CVD-grown synthetic diamonds, Shigley said, and only then with advanced gem-testing equipment.

Clarity-Enhanced Rubies
GIA has been researching rubies that are clarity enhanced with glass fillers, which have recently appeared in various gem markets. At the time of this presentation, GIA was looking at samples with silica-containing glass as well as the newer lead-containing fillers. Shigley explained that magnification of glass–filled rubies can reveal characteristics such as a flash effect, gas bubbles, other (irregular) vo