For years people have been asking when we will host our next International Gemological Symposium. In 1999, we met the millennium. In 2006, we will navigate the challenges ahead and GIA will celebrate its 75^th anniversary by giving back with an unprecedented educational event that is three years in the making.

We have pulled out all the stops: More than 75 experts from around the globe to speak; dynamic keynotes to lead off each day; educational sessions never before assembled; social events that will dazzle and inspire; and a network of some 1,500 professionals from every sector of the industry and some 40+ countries.

I encourage you to come celebrate with us in San Diego at the beautiful Manchester Grand Hyatt Hotel, on the waterfront. Southern California has the best weather in the world, with world-class attractions to augment your Symposium activities. This is a must-come, must-see, must-experience event.

Please check it out at www.symposium.gia.edu. Join us August 27–29, 2006, for an unparalleled experience, one you cannot afford to miss. And for those who want to learn about the latest technical developments, come a day early for the Gemological Research Conference, August 26–27. Register for Symposium before June 15 and save $300 off the at-the-door price.  Registration is $1,295 at this time, but the experience of listening, learning, and sharing with the best and the brightest in the industry is priceless.

I look forward to welcoming you in San Diego!

The soaring price of gold, which recently topped $700 per ounce, sent shock waves through the Indian International Jewellery Show (IIJS), May 4–8 in Mumbai. India is by far the world’s largest consumer of gold jewelry, but business was down considerably from last year despite the country’s robust economy.

“Many retailers aren’t buying because they are worried the price may come down suddenly,” said one major local manufacturer. “And consumers simply do not want to pay the higher price.”

International exhibitors worried that the high cost of gold would dampen sales at the upcoming shows in Las Vegas and Vicenza, because high energy prices have already extracted a larger bite from consumers’ disposable income.

Diamond jewelry manufacturers at the show said they benefited somewhat from the gold rally, since the prices of their gems have declined as much as 10%–15% in recent months as a result of large inventories that have accumulated in the cutting centers.

Although traffic was down at the show, most major Indian diamond manufacturers, who now cut 60% of the world’s diamonds by value, anticipate strong domestic sales this year. “We are on track for a 25% increase,” noted one large Diamond Trading Company sightholder. “In fact, we are seeing Indian consumers switching from gold to diamonds.” India already ranks third behind the U.S. and Japan for retail diamond jewelry purchases.

DIAMONDS: Overall, however, the diamond market is experiencing difficulties. Manufacturers said that average profits have fallen to less than 5%, and many types of goods are at break-even or a slight loss.

“The only real profits are in goods over 3 cts. or high-quality ‘stars’ [small goods for cluster and pavé jewelry],” said one.

High inventories worldwide and the combination of rising interest rates and a cumulative industry debt that has topped $11 billion continue to pose challenges. In addition, major U.S. retailers, who sell 48% of the world’s diamond jewelry, have resisted rising prices because of the inflationary pressures facing their customers.

As a result, liquidity within the trade has “dried up,” according to one sightholder, and a number of smaller manufacturers in India have closed.

COLORED STONES: Large amounts of lower-priced rubies were offered at IIJS, prompting numerous queries about the lead glass–filled goods that have been seen throughout the market for the past year. Buyers reported that some dealers were claiming the gems originated from new localities (even Ethiopia) rather than from Madagascar, the usual source of these treated goods.

There is a new twist on the much-debated blue “Paraíba”-type tourmaline from Mozambique: A deposit showing the distinctive blue color without heat treatment has been discovered. Some of the pieces were offered in Basel “at attractive prices,” according to one dealer, while another dealer added that the Mozambique find seems to be fairly sizeable because prices have remained reasonable.

In general, demand for colored gems has been concentrated in the better qualities, especially untreated goods, so much so that extreme scarcities have developed in top-quality corundum.

“The market is very specific and very, very selective,” said one major dealer. “Unfortunately, everyone wants the same things.”  

AUCTIONS: Christie’s is offering fewer major diamonds at its May 17 Geneva auction than in previous sales. Apart from a 50.53 ct. Light yellow (W-X) stone fashioned by Gaby Tolkowsky and an ungraded 32.15 ct. oval, there are none of the mega-stones that have anchored recent sales. The highlight is a 2.25 ct. Fancy Intense blue-green diamond that is expected to bring up to $580,000. However, there are a number of top rubies, including a 13.43 ct. expected to bring $530,000–$620,000.

MACRO: Retail sales in the U.S. grew in April despite the sharp rise in gasoline prices – though economists warn that the effects of high gas prices are not far off.

The National Retail Federation (NRF) reported that U.S. retail industry sales in March rose a solid 7.2% over last year, and increased 0.3% seasonally adjusted over February. Home improvement and furnishings especially saw continued significant increases. The figures for February sales were revised up from 7.2% to 7.8%. 

The immediate future may not be so bright, however. “In spite of economic concerns, consumers are still demonstrating their ability to spend,” said NRF Chief Economist Rosalind Wells. “With gas prices continuing to rise and the slowdown in the housing market, we expect consumers to become more conservative as the year goes on.”

U.S. Commerce Department figures for March retail sales showed an increase of 7.9% compared to the previous year and 0.6% from February. These totals, however, include gasoline, auto, and restaurant sales.

Russell Shor
Senior Industry Analyst

Figure 1. All of the ruby rondelles in this necklace (13–23 mm in diameter) proved to be lead-glass filled. Photo by H. A. Hänni, © SSEF Swiss Gemmological Institute.

This report was prepared by Dr. Henry A. Hänni, director of the SSEF Swiss Gemmological Laboratory, Basel. For more gemological developments from around the world, read the Gem News International section in every issue of Gems & Gemology. 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.

A diamond looks the way it does because of three optical effects: white light reflections called brightness, flashes of color called fire, and patterns of light and darkness called scintillation. Together, these factors give the diamond life and determine its visual appeal.

Brightness – often called brilliance in the trade – is the effect of all the diamond’s internal and external reflections of white light. Well-cut diamonds are brighter than poorly fashioned ones, even if they’re of equivalent size, color, and clarity. In general, the brighter a diamond, the higher its cut grade.

The proportions that play the biggest role in determining a diamond’s brightness are table percentage, crown angle, and pavilion angle. These proportions, in a variety of combinations, can produce high levels of brightness in a round brilliant diamond.

Fire results when white light traveling through the diamond is dispersed into a rainbow of spectral colors. It’s the most difficult of a diamond’s optical qualities to evaluate, and is especially challenging to assess in diamonds under 0.50 ct.

Scintillation is a combination of sparkle and pattern. Sparkle is the spots of light that flash as the diamond, the observer, or the light source moves. In an attractive diamond, the flashes should appear even and balanced in size.

Pattern is the relative size, arrangement, and contrast of the bright and dark areas that result from a diamond’s internal and external reflections. The pattern of bright and dark areas should be well balanced, and there must be enough contrast to give the pattern a crisp, sharp look.

GIA Education teaches students the two stages needed to arrive at the final estimated cut grade of a standard round brilliant diamond. During the first stage, students use the diamond’s appearance to assign a visual estimate of the cut grade. They do this by judging the quality of its optical attributes – brightness, fire, and scintillation. Students then use the diamond’s proportions, polish, and symmetry to assign a final estimated cut grade.

When assessing a diamond’s appearance in the first stage, the lowest assigned grade for brightness, fire, and scintillation sets the cut grade estimate. For example, a diamond with Very Good brightness, Very Good fire, and a Good pattern would get an initial estimated cut grade of Good.

The next Insider article will look at the procedures used by GIA Education to help students complete a visual estimate of a diamond’s cut grade. It will also include a more detailed discussion of pattern, as the importance of this element to a diamond’s appearance is new to many gemologists.

Step-by-step procedures to estimate the carat weight and grade the color, clarity, and cut of diamonds are taught in GIA’s Diamond Grading course and Diamond Grading Lab class. Click here for information on these and other GIA programs.

Come discover what’s new at GIA at the JCK Las Vegas Show. Show attendees can gain helpful information about new products and educational opportunities as well as take advantage of valuable at-show offers at the GIA booths. The Institute will also present information on important research and laboratory advances at show seminars.

This year, representatives from GIA Education, GIA Instruments & Books, the Alumni Association, the GIA Laboratory, and the 2006 International Gemological Symposium will be available at the main booth, #12027, on the second level of the JCK Show (Sands Expo and Convention Center).

At the AGTA GemFair, the “Soul of Brazil,” featuring 24 signature pieces donated by award-winning designers and top manufacturers from Brazil will be on display at the GIA Collection booth, #34548.

Enroll in GIA Education at the Main Booth, Receive Special Offers 
GIA Education will offer three valuable incentives for those who enroll in any GIA Distance Education program during the JCK Show: the famous GIA triplet loupe, signature tweezers, and a world travel clock.

Gems & Gemology Offers Show Specials at Main Booth
The Spring 2006 issue of Gems & Gemology will be introduced at the JCK Show. It features groundbreaking articles on “Paraíba”-type tourmaline, lead glass–filled rubies, and tortoise shell, plus the annual G&G Challenge quiz and more. Those who purchase a new one- or three-year subscription will receive the Spring 2006 issue free, offered only at the JCK Show.

GIA Instruments Unveils GIA FacetScan™ Optical Scanner                                                                         
At JCK Las Vegas, GIA Instruments will introduce the GIA FacetScan™, its new “Plug and Play” non-contact optical scanner. This scanner is fully compatible with any Windows XP system by just plugging it into the USB port, and unlike other machines, it does not require a separate computer or special video adapter.

The portable GIA FacetScan™ offers easy-to-use software that was designed specifically for retailers. With it, retailers will be able to obtain estimated laboratory proportion grades with GIA’s preloaded software. GIA Facetware™, GIA’s Cut Grade estimating software, is optional.

JCK show attendees can stop by GIA’s main booth and meet with GIA Instruments & Books representatives to try out the new FacetScan™.

Pick Up Your Spring 2006 Issue of The Loupe

Don’t miss the overview of GIA’s 4th  International Gemological Symposium and Gemological Research Conference in the latest issue of The Loupe , including the day-by-day schedule on the inside front cover. Other highlights include the launch of GIA’s first-ever bachelor’s degree program in the School of Business, announcement of scholarship winners, and a fascinating tale of one alum's quest to establish the age of a religious icon based on its gemstones. You can pick up a complimentary issue of The Loupe at both GIA booth locations.

Discover the Gem Wealth of Brazil at the GIA Collection Booth in Las Vegas

Be one of the first to discover the tropical excitement and gem wealth of Brazil when you visit GIA’s Collection Booth at the JCK Las Vegas show June 2–6. Located in the AGTA Pavilion in the Venetian Hotel, Booth #34548, the GIA Collection Booth will have more than 24 signature pieces donated by award-winning designers and top manufacturers from Brazil on display. This is the first international jewelry collection assembled for the GIA Museum.

GIA Laboratory Experts to Provide Overview of GIA’s Diamond Cut Grading System
Phil Yantzer and Barak Green of the GIA Laboratory will present an overview of GIA’s Diamond Cut Grading System.

Green and Yantzer will offer an in-depth description of the system, including its cut-quality components. Special attention will also be given to those areas of grading that can affect cut grades, such as polish and symmetry assessments, girdle thickness, and measurement precision.

Participants will also receive information about GIA’s cut grading software and support products, updates on GIA grading reports, and more. The presentation will be held in the Lando Ballroom in Room 4301/4302 of the Venetian from 2 to 3 p.m. on Thursday, June 1.

Research Update Covers Laboratory Advancements
Shane McClure, GIA’s West Coast Identification Services director, and Chris Smith, his East Coast counterpart, will present new developments from the GIA Laboratory Friday, June 2, at the JCK Las Vegas Show. The “GIA Research Laboratory Update” will be held in the Lando Ballroom in Room 4303/4304 on the fourth floor of the Venetian from 9 to 10 a.m. McClure and Smith will review some of the GIA Laboratory's latest research findings, including its recent investigations into the beryllium diffusion in heat-treated blue sapphires, and provide an overview of GIA's research on corundum in general.

Learn About Symposium’s Great Lineup, Save Up to $355
While at the JCK Show, visit GIA’s main booth for up-to-date information on our 2006 International Gemological Symposium, which will be held Aug. 27–29 in San Diego. Representatives will be available to answer any questions regarding this event and the pre-Symposium Gemological Research Conference. The early registration deadline for both expires on June 15 and, along with it, the chance to save up to $355. If you haven’t already registered for Symposium, JCK would be a good opportunity to do so.

Consumer behavior pioneer Paco Underhill will present his latest findings on “The Consumer of the 21^st Century“ at a special breakfast being held during GIA's Symposium.

Underhill is the best-selling author of Why We Buy: The Science of Shopping. His presentation on “The Consumer of the 21^st Century^” will address a multitude of factors that affect today’s consumer behavior.

The talk is scheduled for Monday, August 28, at 7:30 a.m. and is open to Symposium participants only.

“Paco has made a science out of shopping behavior, and his presentation will provide attendees with great insight into why people buy in today’s competitive marketplace,” said GIA Vice President of Marketing and Public Relations Kathryn Kimmel, who is also the event's co-chair.

Underhill has spent more than 25 years conducting research on different aspects of shopping behavior. A recognized expert in this important field, he has written for many leading publications, including the New York Times, London Times, The Wall Street Journal, and The Christian Science Monitor. In addition to Why We Buy, he has authored Call of the Mall: The Geography of Shopping.

Underhill is the founder and managing director of Envirosell, Inc., an international behavioral market research and consulting company. Underhill and Envirosell have been profiled by major magazines such as The New Yorker, Fortune, and Business Week, and featured on ABC’s “20/20” and CBS’s “48 Hours.”

Through videotaping, anthropological observation methodologies, mapping programs, and attitudinal interviews, Underhill and Envirosell provide consumer behavior reports for such Fortune 500 companies as Microsoft, McDonalds, Starbucks, and Citibank.

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 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 debate centers, and spectacular social events.

JCK Magazine is the prime sponsor for Monday’s all-day program. For a day-by-day schedule of Symposium events, click here. To register for Symposium and the pre-Symposium Gemological Research Conference (Aug. 26–27), e-mail igs@gia.edu, or click here for more information.