The second half of this year is shaping up to be “decent, but not spectacular” for worldwide diamond jewelry sales, according to a top De Beers executive.

In a recent interview, Stephen Lussier, director of consumer marketing for the De Beers Diamond Trading Company (DTC), noted that U.S. demand remains strong in the middle and higher segments of the market, while the lower end “shows some softness.”

“The growth is particularly strong in the larger, better-quality diamonds, in part because it is difficult these days to open a magazine and not find a picture of a celebrity wearing a whopping diamond ring – 5 cts., 10 cts., or more.”

In larger diamonds, the only weakness is in the “piqué” goods (I2 and I3 clarities), he said.

However, a significant portion of the U.S. market is in promotional qualities, from mass merchandisers who have experienced soft demand all year, mainly because high fuel prices have siphoned away a great deal of disposable income.

“It’s likely that fuel prices will continue to be a drag on sales at that level this year,” Lussier added.

Elsewhere, the two strongest-growing markets remain in India, where demand for better qualities is rising quickly, and China. Europe, however, likely will continue to be slow. Lussier said the forecast is that sales of luxury goods, including diamonds, will be flat there.

On the supply side, the DTC’s diamond production has increased an average of nearly 7% yearly since 2000, he said. Much of this increase comes from more efficient mining methods and reworking stocks at its original mining sites in Kimberley, South Africa. 

While these increases are mostly in smaller goods, under 0.05 ct. in rough, production of larger, better qualities has been rising as well.

“Overall, we have been pleasantly surprised by our ability to generate [increased] supplies to the market,” said Lussier. “This is why we have been able to take on eleven new clients [sightholders].”

However, a number of sightholders say they have been disappointed by the DTC’s supplies of rough, and that adding new clients will exacerbate these shortages. Although DTC clients report that the July 11–14 sight was one of the largest ever, at more than $800 million, one reason is that the new clients began receiving allocations at this sight, in addition to the 84 existing clients.

Lussier also noted that increases in diamond jewelry advertising have been fueling demand throughout the world market. He estimates that some $350 million is being spent this year by retailers and diamond companies to advertise diamond jewelry, over and above the $190-plus million that the DTC is spending worldwide.

“There is actually much more,” he noted, “because these figures do not include advertising in local media, flyers, radio, etc., which we cannot measure.”

Lussier also noted that Black Economic Empowerment initiatives in South Africa will have an effect on the structure of the diamond industry in coming years.

“It is entirely understandable that governments want to use their resources to build employment, and it is our duty to help them do so in a way that makes economic sense.”

“Obviously,” he noted, “this means that greater numbers of larger goods will be processed in Africa, because it is economic to do so there. This will present supply challenges to manufacturers in New York and Antwerp.”

“The challenge will come in the middle-range goods. Can they be polished without subsidies?”

Ultimately, he explained, it will fall to DTC clients who have “deep, global, downstream distribution” to partner with local empowerment ventures to cut such goods economically in Africa.

“Clearly, there will be an economic cost. The balance we now have to examine is that of meeting the needs of governments while protecting the economic sustainability of our clients.”

Russell Shor
Senior Industry Analyst

At the February 2005 Tucson gem shows, a parcel containing about 180 grams of rough ruby and pink sapphire was available from a new locality in Kenya. Recently, more information has become available, along with both rough and cut samples of this new corundum that reportedly have not been treated in any way.

The deposit is located in the Kenya Rift Valley in the west-central part of the country, approximately 70 km east of Eldoret near Lake Baringo. In October 2001, a local gem prospector was shown samples of pink and red corundum from this area by members of the Tugen tribe who lived in Barsemoi.

The prospector later visited the locality and collected samples of gem-quality corundum from a dry river bed. He applied for a license with the Kenya Commissioner of Mines, and after a two-year process received a mining permit for a five-square-kilometer area. In June 2004, he resumed collecting surface material from the site and has obtained more than 2 kg of corundum, ranging from red to pink to pinkish violet.

So far, approximately 350 stones have been faceted at his office in Eldoret, and the largest weigh 2.80 and 3.71 cts. (both oval cuts). Most of the stones range from 0.5 to 1.6 cts., and are bright purplish pink to purplish red (see figure).  

As of May 2005, approximately 400 local villagers were active in the region surrounding the original mining claim, expanding the corundum-bearing area to approximately 20 square kilometers. Preliminary indications suggest that this area has the potential to become a significant source of untreated ruby and pink sapphire. The gemological properties of this corundum are currently being studied at GIA, and will be reported in a future issue of G&G.

This report was prepared by Dudley Blauwet of Dudley Blauwet Gems (Louisville, Colo.) and Brendan M. Laurs, editor of Gems & Gemology. For more updates from around the world, see the Gem News International section in the upcoming Summer 2005 issue of Gems & Gemology. To subscribe to Gems & Gemology, 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

This edition of Insider Gemologist explains the distinguishing characteristics of four green gems – malachite, green idocrase, hydrogrossular garnet, and saussurite. Malachite has a distinctive appearance, but the others can be confused with similar green gems.

Malachite has a long history. The Egyptians used it for jewelry and other ornamental purposes as early as 4000 B.C. Malachite is copper carbonate, and copper is the cause of its color. Malachite is often banded with two or more green tones; the banding might be curved or angular, and the colors range from vivid bluish green to green. Malachite’s banding is so distinctive that it is rarely mistaken for any other gem. However, some glass and plastic imitations do exist, as does a synthetic version made in Russia.

The gem is usually opaque, but it can be semi-translucent. It might have a radial fibrous structure and a surface sheen. Its refractive index (R.I.) is 1.66 to over the limits, but it is often impossible to detect due to the gem’s low hardness (Mohs 3.5–4) and resulting poor polish. Specific gravity (S.G.) is variable, but usually near 3.95 for gem-quality material. Synthetic malachite’s S.G. is lower, around 3.61 to 3.70.  

Most malachite specimens have some surface area that is good enough to get a birefringence blink reading, and most materials that blink are carbonates. If the material’s appearance suggests malachite and the resulting readout is a blink, it is most likely malachite.

Translucent idocrase (vesuvianite) and green hydrogrossular garnet can be very similar in appearance. Both are calcium-aluminum silicates, and both resemble jade. They are also associated minerals that often occur together, so a gemologist must sometimes make a judgment call as to whether a specimen should be called idocrase or hydrogrossular.

Their R.I.’s are also very close. Hydrogrossular has an R.I. that ranges from 1.690 to 1.730 depending on the stone’s water content. The spot reading is usually 1.720. Idocrase can range from 1.700 to 1.721, with a normal spot reading of 1.71. The S.G. for both materials can overlap and is around 3.40.  Hydrogrossular garnet is more likely than idocrase to contain black inclusions.

Visible spectrum is a more reliable and consistent separation factor. Translucent idocrase’s spectrum shows an absorption line at 464 nanometers (nm). Green hydrogrossular garnet’s spectrum shows a cutoff at 460 nm.

Saussurite is a translucent-to-opaque aggregate of zoisite, epidote, and other minerals that is often carved and used as a jade simulant. Its color ranges from grayish to yellowish green, and it frequently has a mottled appearance.

Saussurite can be separated from jadeite, hydrogrossular garnet, and idocrase by its appearance, spectrum, R.I., and fluorescence. Saussurite’s spectrum usually shows a weak band at 460 nm. Spot R.I. readings are around 1.56 and 1.70. The gem might fluoresce moderate red under short-wave UV radiation, but it is often inert.

Step-by-step procedures to identify natural, synthetic, and imitation gems are taught in GIA’s Gem Identification course. Click here for information on this course and other GIA programs.

Please note: GIA will provide another presentation on the GIA Diamond Cut Grading System at the upcoming JA Show in New York. The presentation will take place on Tuesday, Aug. 2, from 1:30 to 2:30 on the main show floor in booths #1862-1961.

General System Information

• The new GIA Diamond Cut Grading System is based on sophisticated 3-D computer modeling and other predictive algorithms, all of which have been validated through human observation testing.
• The GIA Diamond Cut Grading System is supported by more than 70,000 observations of actual diamonds by individuals from all levels of the diamond trade (including potential consumers).
• GIA has calculated cut grade results for more than 38.5 million proportion sets of round brilliant diamonds.
• The GIA Diamond Cut Grading System applies to standard round brilliant diamonds that fall within the GIA D-to-Z color scale and the Flawless-to-I3 clarity scale.

• The new GIA Diamond Cut Grading system is based on 3-D computer modeling and is supported by more than 70,000 observations of actual diamonds.

  Initially, the GIA Diamond Cut Grading System will not apply to fancy-color or fancy-shape diamonds, or to round diamonds modified with different faceting arrangements.
• GIA considers the following seven components when assessing the cut grade of a standard round brilliant cut diamond: brightness, fire, scintillation, weight ratio, durability, polish, and symmetry.
• GIA has developed and is currently beta testing online software and a comprehensive database to estimate the cut grade of round brilliant diamonds. The latter has been embedded in a number of leading optical measuring devices. These products will be available when GIA officially announces the launch date for its new diamond cut grading system.
• The online cut-grade estimation software will be available free of charge on the GIA website when it is released.
• The new system takes into account the following measured proportions: total depth, table size, average crown angle, average pavilion angle, average star length, and average lower-half/girdle length.
• The new system takes into account the following visually assessed parameters: girdle thickness, culet size, polish, and symmetry.
• In addition, the GIA Diamond Cut Grading System considers the presence of significant “painting” or “digging out” (i.e., the upper- and/or lower-half facets are fashioned at tilt angles different from those traditionally used for standard round brilliant diamonds), as this method of brillianteering affects a diamond’s face-up appearance.
• Since the GIA Diamond Cut Grading System is predictive, diamond cutters can use the system to plan and manufacture diamonds, allowing them to maximize yield while also attaining the cut grades they desire.

New GIA Reports

• A GIA cut grade will be included in every GIA Diamond Grading Report and GIA Diamond Dossier® for standard round brilliant diamonds.
• New GIA diamond reports will provide a single overall cut grade: Excellent, Very Good, Good, Fair, or Poor.
• The new GIA diamond reports will contain expanded proportion information displayed within a representational graphic, along with a consumer-friendly description of the Four Cs.
• GIA will not issue the new reports until several months after the official announcement of its cut-grading system, so the trade can learn about and adjust to the new system.
• When the new GIA reports are launched, the GIA Gem Laboratory will provide services to reissue an existing report with the diamond’s cut grade, or to update the grading information for an item to include a cut grade.

Essential Research Findings

• Within every cut grade there is a wide range of proportion sets and face-up appearances that all perform equally well.
• Grade ranges allow for personal and regional cut preferences.
• All proportions work together to create a cut grade; no single proportion can be considered alone.
• A standardized lighting and viewing environment should be used to consistently assess and display a diamond’s face-up cut quality.

Additional Information

• GIA will be presenting seminars on its Diamond Cut Grading System at major trade shows, cutting centers, and other locations around the world.
• GIA Education course material will contain information on the GIA Diamond Cut Grading System starting in the first quarter of 2006.
• GIA Instruments has developed a standard lighting and viewing environment for assessing and displaying a diamond’s face-up cut quality; this environment will be available when the new cut-grading system is officially announced.
• GIA Instruments has also developed a measuring reticle that can be used with most standard gemological microscopes to obtain the necessary measurements of a round brilliant cut diamond when other methods are not available.
• GIA is developing an informational brochure to explain the essential elements of the GIA Diamond Cut Grading System to members of the trade.
• GIA is also developing brochures and other counter materials to help sales staff communicate the GIA Diamond Cut Grading System to their customers.
• Gems & Gemology has recently released all three of the GIA diamond cut articles as downloadable PDF files; these are available by clicking here.
• GIA Research has written several articles that summarize much of the foundational science that supports its research on diamond cut; an archive of these online articles can be found here. 

In a 2004 survey of independent jewelers by JCK magazine, 74 percent of respondents said good employees are harder to find today than five years ago. Those who recruit at GIA’s Jewelry Career Fair, however, tell a very different story.

One of the many satisfied recruiters from the 2004 New York event was Daniela Gil of Akiva Gil Co., Inc., of New York. “Job seekers from entry level to very experienced are here,” said Gil. She also cited Career Fair as a “safe, validated, and exciting environment.”

Jeff Mitchell of Jewelry Marketing Company said, “[Career Fair is] a fantastic display of applicants and recruiters working together to better their jewelry careers and experiences.”

The next Career Fair is just around the corner, on July 29 at the Jacob Javits Center in New York. Starting with upwards of 1,000 participants, including GIA students, recent graduates, and others with professional experience, Career Fair gives recruiters access to the largest pool of qualified, motivated candidates available at any single recruitment event in the industry.

Career Fair is free for job seekers. Registration begins at 8:45 a.m., and the event ends at 3 p.m. Recruiting tables will be open from 10:30 a.m. until 2:45 p.m., and more than 35 companies have registered so far, many of them from New York and the Northeast. Saks Fifth Avenue, Tiffany & Co., Fortunoff, Lux Bond & Green, Diamonds International, William Goldberg Diamond Corp., and Hearts on Fire are among them.

“This is the kind of recruiting occasion employers dream of: a large number of well-trained, enthusiastic candidates, many with professional experience, who are passionate about working with gems and jewelry,” said GIA Marketing and Public Relations Vice President Kathryn Kimmel, co-creator of the event. “GIA is proud to host this event for the industry, and we hope a lot of companies will take advantage of it.”

Along with the recruiting activities, job seekers will also be able to talk one-on-one with industry experts and experienced leaders in Career Coaching sessions. Advice will be available on setting career goals, developing a career strategy, and fine-tuning rèsumès.

Participants can also benefit from firsthand tips from experts in panels and workshops, including Marketing Yourself for Success, How to Find Your Dream Career, and Immigration Law Workshop.

A brand-new panel this year will be What Happens After "You’re Hired!", in which young professionals talk about their early experiences in the trade and how they achieved success. Job seekers can gain insights from these rising stars about how to maximize their skills and training to land their dream job and make the most of it.

Firms who want to recruit may contact GIA’s Career Services office at 800-421-7250, ext. 4195, or e-mail Kimberly Northup.

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. Job seekers can call GIA’s Jewelry Career Fair hotline at 800-421-7250, ext. 4100, click here, or e-mail  Career Fair.

For the second straight year, GIA is returning to the island of St. Thomas. In August, a GIA expert instructor will provide hands-on training in diamonds, colored gemstones, and jewelry in Extension classes at the University of the Virgin Islands.

The classes, being held in conjunction with the University of the Virgin Islands’ Community Engagement and Lifelong Learning (UVICELL) Center, will be held at the UVICELL Center.

GIA's Accredited Jewelry Professional (A.J.P.) diploma program, Aug. 22–26, teaches the essentials in product knowledge and sales of diamond and colored gemstone jewelry. For the first time in St. Thomas, Diamond Grading will also be offered, Aug. 29–Sept. 2. Students will learn how to grade diamonds accurately using the International Diamond Grading System created by GIA.

Those who complete the classes will acquire the A.J.P diploma and a GIA letter of completion for Diamond Grading. In addition, the University of the Virgin Islands will grant a certificate.

According to GIA Education Vice President Brook Ellis, the classes will only be offered once in the Caribbean this year. “Within a two-week period, students will master the steps of a sale and become adept at grading diamonds,” he said.

“The jewelry industry plays such a critical role to our local economy,” said UVICELL Director Ilene Garner. “We are pleased to continue our collaborative efforts with GIA, which will enable our jewelry professionals to learn firsthand from the industry experts.”

“GIA’s A.J.P program was extremely beneficial to our business,” said Om and Neeta Sukhani, owners of