Diamond and gemstone markets remain quiet in the pre-holiday season. U.S. retailers and jewelry manufacturers continue to worry about declining consumer confidence, but at the extreme top end, Christie’s recent New York auction achieved astounding prices for very large diamonds. For example, a 25-ct. heart-shaped pink diamond topped $6 million, and a 33.11-ct. D-Flawless pear shape drew almost $75,000 per carat. Most of the top-priced lots will probably end up in the Persian Gulf region, which is benefiting from the surge in oil prices; the pink diamond was purchased by a dealer from Dubai. Laurence Graff and several other European and Asian dealers acquired a majority of the other large diamonds in the sale, but they do much of their business with Middle Eastern clientele. 

At the opposite pole of the market, a key consumer researcher noted that holiday sales will be difficult for retailers who do not offer substantial discounts. Lynn Franco, director of The Conference Board Consumer Research Center, said, “The degree of consumer pessimism, in conjunction with the anticipation of much higher home heating bills this winter, may take some cheer out of the upcoming holiday season. In order to avoid a blue Christmas, retailers will need to lure shoppers with sales and discounts.”

RETAIL: Executives of several major retail jewelry chains in the Northeast and Midwest expect high home heating prices and Internet competition to limit sales this holiday season. In general, they expect sales to be even with, or only slightly above, last season’s levels.

“We will be holding the same inventory levels as last Christmas,” said one New England–based retailer who projects flat sales this year. “Of course, there are wealthy consumers who aren’t bothered by high oil prices, but we need more than just them to carry the day.” An executive of a Midwestern chain of 60-plus stores said he was looking for a 2–3% increase this fall, though he believes that solitaire diamond sales “will be very difficult because of Internet competition and rising diamond prices. In addition, margins are definitely decreasing on these items.”

The Jewelers of America’s new Cost of Doing Business Survey found that average retail jewelry store sales increased 6.1% in 2004. Independent mid-range stores reported the greatest growth, at 8.1%. Luxury independents grew 5.2%, and chain-store sales increased 6.6% for the year.

JA members’ gross margins increased slightly to 49.2% from 48.8% in 2003. Independent, mid-range retailers reported the highest gross margins at 51.8%, up from 50.1% in 2003. Diamonds continued to comprise more than half of jewelers’ sales, and finished diamond jewelry accounted for 36.9% of sales, up 1% from 2003. Loose goods made up 14% of sales, up 2% from 2003, according to the study.  

MACRO: The U.S. Federal Reserve raised short-term interest rates a quarter-point to 4% on Tuesday, a signal that it places a priority on capping inflation instead of stimulating economic growth. The Fed’s statement noted that while core inflation (excluding food and energy) remains relatively low, the cumulative increases in energy and other costs “have the potential to add inflation pressures.” It also warned of possible future interest rate increases to keep inflation in check.

Economic forecasters say the Fed’s action could siphon more disposable income from many homeowners who hold adjustable rate mortgages and dampen the housing market, which has sustained most of the recent economic growth in the U.S.

The Conference Board Consumer Confidence Index, which had plummeted in September, declined again in October. The Index now stands at 85.0, down from 87.5 in September. The Present Situation Index declined to 108.2 from 110.4. The Expectations Index decreased to 69.5 from 72.3 last month.

“Much of the decline in confidence over the past two months can be attributed to the recent hurricanes, pump shock, and a weakening labor market,” said Franco. “Consumers’ assessment of current conditions, however, remains above readings a year ago, but their short-term expectations are significantly below last October’s level. Consumers’ overall assessment of ongoing conditions was less positive in October.”

Russell Shor
Senior Industry Analyst

A decade later, most commercially available synthetic diamonds are still grown using the high pressure/high temperature (HPHT) technique, and the information in the 1995 chart remains valid. Yet the variety of HPHT-grown synthetics has multiplied, with post-growth treatment processes being applied to change color and other properties. A recent supplement to the 1995 chart, “Characteristics of HPHT-Grown Synthetic Diamonds,” appeared in the Winter 2004 G&G.

To purchase these back issues or laminated copies of the charts, 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. To order the Synthetic Diamonds volume, visit GIA Gem Instruments and Bookstore, or call 760-603-4200.

Many varieties of gemstones occur in the orange, yellow, and brown color range. Those that may be seen in jewelry include zircon, sphene, chrysoberyl, sinhalite, and peridot. Knowing their distinguishing gemological characteristics can help in identifying these gems.

Although blue is the most common color seen in jewelry, zircon also occurs in orange, yellow, and brown, among other colors. It can either be a dull brown or a vivid orange-brown sometimes called “flame” zircon. Zircon’s refractive index (RI) varies, but orange, yellow, and brown zircons are almost always over the limit (OTL) of the refractometer.

Zircon’s strongly doubly refractive (DR) optic character separates it from similar-looking singly refractive (SR) OTL stones like spessartine garnet. With magnification, most zircons in this color range show fairly strong doubling. In addition, they often show pits along the facet edges—especially those that have been heat treated bright red to orange and brown. Zircon’s visible spectrum has a key absorption line at 653.5 nanometers (nm).

Sphene has a birefringence approximately twice that of zircon and noticeably greater fire. It is transparent to translucent, and usually occurs in yellow, green, brown, and orange. Sphene’s main identifying features are its OTL RI, DR nature, and dispersion; its visible spectrum features a prominent set of lines centered at 580 nm. Yellow-to-brown sphene also shows moderate-to-strong pleochroism, strong doubling, and twinning.

Peridot and sinhalite are two other possibilities in the transparent orange, yellow, and brown color range. Peridot, which is typically green, is rarely a true yellow, but it can be greenish yellow. Its RI is 1.654 to 1.690 (+/- 0.020), and its 0.035 to 0.038 birefringence is greater than that of most other yellow gemstones in this RI range, except for sinhalite. Usually yellow or brown, sinhalite has an RI of 1.668 to 1.707 (+/- 0.005) and a birefringence of 0.036 to 0.039.

Peridot and sinhalite can also be separated by their optic signs and possibly by their optic character. Peridot’s optic sign is biaxial, either positive or negative, with the common point usually located almost exactly halfway between the extremes. Sinhalite is strongly biaxial negative.

Sinhalite’s spectrum is similar to that of peridot, but it shows four absorption lines in the blue region—at 452, 463, 475, and 493 nm—and a band at 526 nm. Peridot has three bands in the blue region, at 453, 473, and 492 nm.

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.

Former U.S. Secretary of State Madeleine K. Albright will help kick off GIA’s 4th International Gemological Symposium when she presents the lead keynote address on Sunday, Aug. 27, 2006 at the Manchester Grand Hyatt Hotel in San Diego.

Secretary Albright became the United States’ first woman secretary of state in 1997, at the time the highest ranking woman in the history of the U.S. government.  Immediately preceding her appointment, from 1993 to 1997, she served as the U.S. permanent representative to the United Nations and was a member of the President’s Cabinet. In 1995, she led the U.S. delegation to the U.N.’s Fourth World Conference on Women, in Beijing.

Currently head of The Albright Group LLC, a global strategy firm that she founded, Secretary Albright is also chairman of the National Democratic Institute for International Affairs, co-chair of the Pew Global Attitudes Project, and president of the Truman Scholarship Foundation. In addition, she serves on the Board of Directors of the Council on Foreign Relations and on the Board of Trustees for the Aspen Institute.

Secretary Albright is a jewelry enthusiast, noted for her eclectic collection of fine and costume brooches. She is working on a book about her collection, which will be published in 2008. The book, which will be illustrated, will discuss the historical and personal significance of the collection and her use of brooches as a tool of diplomacy. Her autobiography, Madam Secretary: A Memoir, was a New York Times bestseller in 2003. Her next book, The Mighty and the Almighty: Reflections on America, God and World Affairs, will be published in May 2006.

GIA President William E. Boyajian said Dr. Albright’s address should strike a chord with the multinational Symposium audience. “In keeping with our Symposium theme of ‘Navigating the Challenges Ahead,’” said Boyajian, “Secretary Albright’s significant experience in U.S. international strategy and policy perfectly position her to address the important business and geopolitical issues facing the world today. We are delighted and appreciative that Madeleine Albright will be our lead keynote speaker for Symposium.”

Secretary Albright received her B.A. from Wellesley College, and her master's and doctorate from Columbia University’s Department of Public Law and Government. She was born in Prague, Czechoslovakia, and immigrated to the United States with her family in 1948. She has three daughters and six grandchildren.

Symposium will bring together upwards of 1,500 participants from around the globe to gain firsthand knowledge from gem and jewelry experts representing every aspect of the international trade: diamonds, colored stones, pearls, gemology, jewelry design, manufacturing, marketing, branding, and retail. A variety of powerful formats will provide a dynamic experience for attendees, including presentations by industry leaders and distinguished business figures from inside and outside the trade, plus panel sessions, provocative “war rooms,” and spectacular social events.

The opening session of Symposium is co-sponsored by ABN AMRO Bank and The VNU Jewelry Group. For further details on the 4^th International Gemological Symposium, to be held Aug. 27–29, 2006, and the pre-Symposium Gemological Research Conference (Aug. 26–27), including registration, click here.

Two GIA Laboratory representatives will continue the worldwide series of free presentations on GIA’s new Diamond Cut Grading System in South Korea, South Africa, and the United Arab Emirates. Attendees will learn details of the cut grading system and how it will benefit all sectors of the diamond trade.

GIA Laboratory Communications Manager Barak Green and West Coast Grading Laboratory Director Phil Yantzer will provide a summary of the new system in which diamonds receive one of five cut grades, ranging from Excellent to Poor. They will also review GIA’s new grading reports, cut software, and other support materials.

In Seoul, a three-hour presentation on Nov. 28 will be held at the Seoul Club, located at Joongku Jangchoongdong 208. A reception will begin at 6 p.m. with the presentation starting at 7:00 p.m., and those interested in attending can e-mail info@giakorea.co.kr to RSVP or obtain more information.

On Dec. 1 in Johannesburg, the GIA team will review GIA’s new cut system on the fifth floor of the SA Diamond Centre, at 225 Main Street. To RSVP, contact joyceb@jewellery.org.za.

As part of the Watch & Jewellery Dubai show, Green and Yantzer will again present details about the system in Dubai on Dec. 6 at 4 p.m. at the Airport Expo.

The GIA Diamond Cut Grading System will be implemented on every GIA Diamond Grading Report and GIA Diamond Dossier® for standard round brilliant diamonds on the GIA D-to-Z color scale and Flawless to I₃ clarity scale, beginning Jan. 1, 2006. The cut grade system will be incorporated into the GIA Education curriculum beginning in the first quarter of 2006. GIA Extension classes taught in 2006 also will include special sessions on the system.

“While the new system provides an objective assessment of a diamond’s overall cut quality, each cut grade represents a range of proportion sets and allows for personal or regional preferences in diamond appearance,” Green explained. “In these presentations, we will explain how manufacturers can plan and predict cut grades, buyers can compare cut qualities, and retailers can communicate the effects of cut on round brilliant diamonds to their customers.”

To learn about the system, click here.

More than 150 Italian jewelry industry dignitaries gathered to witness the grand opening of GIA’s new school in Florence on Oct. 13. A press conference was also held, and a special exhibit of Renaissance period costumes was on display to highlight the importance of Italy’s history and culture in jewelry and fashion.

The event began with a press conference attended by local media. GIA Education Vice President Brook Ellis and Dr. Luca Mantellassi, president of the Florence Chamber of Commerce, cut the ceremonial ribbon at 5 p.m. to officially open the school.

Guests included GIA Global Education Director Seung-Hae Moon, Franco Torrini, president of Torrini Jewelers, and others from the Italian jewelry and fashion industry. All current GIA Florence On Campus students joined the celebration, along with some visiting Distance Education students.

“The new classrooms have been greeted with enormous enthusiasm, and our new location in Florence has proven to be an ideal center for GIA in Italy,” said GIA Florence Director Federico Stocco. “It was great to see new and past students, colleagues, and friends all celebrating together. It was a wonderful day, and we are all very proud of what GIA has achieved.”

The school, located in the city’s center next to the Uffizi Museum and its world-famous Renaissance paintings and sculptures, occupies two floors with more than 10,000 square feet, three classrooms, and a student lounge.

The Jewel Museum, a particularly appealing feature of the new school, housed a special exhibit of Renaissance period costumes. They were created by the famous Florentine tailor, Sartoria Teatrale Antonietta, who for many years has designed costumes for theatre shows, opera performances, and prestigious events in Tuscany. Artistic inspiration is taken from paintings of the relevant era, and extensive handmade work helps to recreate effects and materials that cannot be found today.

Classes at GIA Florence, which began Sept. 26, run consecutively in both English and Italian. In order to meet increased demand, GIA Florence has added more classes. The Graduate Colored Stones program in English starts Nov. 14, with the Italian class beginning Nov. 21.

GIA Florence is located at GIA Florence Via del Castello d’Altafronte, 11, Firenze, Italy, 50122. For more information, click here; e-mail info@giaflorence.com; or call +39-055-215-964.

Nov. 3, 2005

Accomplished jeweler and designer Jim Grahl shared his expertise in creating fine jewelry pieces and jeweled objets d’