The gala was part of the Institute’s 4th International Gemological Symposium, held Aug. 27–29 at San Diego’s Manchester Grand Hyatt hotel, which brought the global gem and jewelry community together to discuss, debate, and explore the industry’s most pressing issues and latest trends.

The three-day event, which drew 1,332 attendees, began Sunday afternoon with a keynote address by former U.S. Secretary of State Madeleine K. Albright, titled “Opportunities and Danger: The World in 2006.”

Other keynote speakers included consumer behavior expert Paco Underhill, who delivered Monday’s address on “The Consumer of the 21st Century”; Frank Abagnale, the subject of Steven Spielberg’s movie Catch Me If You Can, who shared his life story and lessons from his work as one of the FBI’s leading fraud prevention specialists; and Deepak Chopra, a leader in the field of mind/body medicine.

One of the sessions, “Consumer Confidence – It’s All About Trust,” included participants from the World Gold Council, the De Beers Diamond Information Center, and the Council for Responsible Jewellery Practices. Panelists discussed how the industry can approach issues such as consumer awareness, money laundering, and concerns raised by the upcoming movie The Blood Diamond.

Concurrent with the speaker sessions, more than 90 posters explored a wide range of gemological topics in this "Marketplace of New Ideas."

Maurice Tempelsman, chairman of the board at Lazare Kaplan International, delivered Tuesday’s closing remarks. His speech, “Tradition and Transition,” marked his third consecutive Symposium address and focused on the changing face of the diamond industry.

“The fundamentals of our industry are no longer driven by supply, but increasingly and inexorably by issues of ultimate consumer demand,” Tempelsman said. “For all those who are stakeholders along the diamond pipeline – from producer nations and mining companies upstream, to manufacturers, distributors, retailers, and their bankers downstream – there is no single fact, and no single transition, more important than this one.”

In addition to the gala, Symposium attendees socialized and networked at several evening events, including Monday’s poolside Sunset Soirée and Tuesday’s dinner and fashion show, themed “Moods, Sensations, Differentiations: The Soul and Future of Italian Jewelry.”

The first Symposium was held in 1982 in honor of GIA’s 50th anniversary the preceding year, with subsequent Symposia held in 1991 and 1999. Full coverage of the 2006 Symposium will appear in GIA’s two print publications. The proceedings, including formal abstracts of all speaker and poster presentations, will be published in the Fall issue of Gems & Gemology. Comprehensive coverage of the educational and social events will appear in the Fall issue of The Loupe: GIA World News. Both will be available in early November.

For a complete list of sponsors, click here. Brief video highlights of the event can also be viewed by clicking here.

The GRC kicked off Friday, Aug. 25, with a field trip to the famous Pala pegmatite district in nearby Fallbrook. The all-day tour gave 50 participants an informative, hands-on look at three working mines. (A second field trip took place Aug. 30, the day after the closing of the International Gemological Symposium.)

Oral Presentations

In the dual-track speaker sessions, leading researchers delivered 62 oral presentations that addressed the six general topics of the conference:

• Geology of gem deposits: Ten presentations were given, including keynote speeches on the geochemical formation of pegmatitic gems by David London and on diamond occurrence in the earth’s mantle by Jeff Harris.
• New gem localities: Among the highlights were Lawrence Snee’s discussion of gem deposits in Afghanistan and Federico Pezzotta’s talk on promising new localities in Madagascar.
• Gem characterization techniques: This session featured Emmanuel Fritsch’s forecast of important techniques in the coming decade, as well as George Rossman’s look at the usefulness of nanofeatures (those on the scale of one billionth of a meter) in characterizing gem materials.
• Diamond and corundum treatments: Mark Newton offered a physicist’s perspective on treated diamonds, while Kenneth Scarratt discussed corundum treatments and their implications for the integrity of the product.
• Laboratory growth of gem materials: Highlighting this session were Ichiro Sunagawa’s address on the growth and morphology of single crystals and James Butler’s presentation on the growth of CVD synthetic diamond.
• General gemology: Notable talks included Menahem Sevdermish’s demonstration of color communication in gem materials and Shane McClure’s introduction of a new classification scheme for gem corundum based on source type.

Poster Sessions

In this interactive forum, 62 exhibitors were on hand to present their own research findings through multimedia displays and one-on-one discussions. Among the poster presentation topics were the mining of pegmatite-related primary gem deposits, ruby and sapphire from Greenland, the geology of placer gem deposits, and global rough diamond production from 1870 to 2005.

In addition to its robust academic program, the GRC featured lively evening social events and an abundance of networking opportunities.

The conference’s co-chairs, GIA Research Director James Shigley and G&G Editor Brendan Laurs, plan to make it a regular event. The next GRC is scheduled for August 2009.

“The response to the GRC exceeded all of our expectations,” said Laurs. “The dual speaker tracks gave conference participants an opportunity to choose the topics that best matched their interests, while the poster session rounded out the program with a wide variety of research applications in contemporary gemology.”

Abstracts of the Research Conference oral and poster presentations will be published in the Fall 2006 issue of Gems & Gemology, scheduled for release in late October. Attendees of the GRC and Symposium will receive a copy of this issue. Click here to subscribe to G&G. Call toll-free 800-421-7250, ext. 7142. Outside the U.S. and Canada, call 760-603-4000, ext. 7142.

At the Diamond Trading Company’s Aug. 29–Sept. 1 sight, once again a number of Indian clients deferred their sight boxes. This was due to the flood damages in Surat and sluggish demand, said diamond industry executives.  

The total value of rough offered by the DTC was estimated at $500–$550 million. However, the recent floods in Surat have displaced many diamond workers, and manufacturers there say that most of the city’s factories will remain closed for several more weeks while recovery efforts continue. At the same time, buying remained cautious among large U.S. retailers in the face of high diamond inventories and sales, in some cases running below expectations.  

While African nations vie with mining companies for control of their diamond resources, a new producer will likely transform the rough diamond market yet again in the coming decade.

Saskatchewan could be producing up to 10 million carats – $1.5 billion worth – within 10 years, according to government estimates announced by Martin Irving, manager of the Canadian province’s mineral and resources branch, at GIA’s 4th International Gemological Symposium, Aug. 28.

If all the projects come to fruition, Saskatchewan would be the world’s fourth largest diamond producer by value and volume. While these estimates are based on data provided by exploration and mining companies, such data have proved reasonably accurate in the past, he said.

One mine in the province, Fort à la Corne, is already under advanced exploration. Fort à la Corne may yield up to 5 million carats. It is being developed by three partners: Shore Gold, Kensington Resources, and De Beers. Several nearby kimberlite clusters are also under exploration by small mining companies. Estimates are that their production could match that of Fort à la Corne.

By 2016, Canada is expected to be producing nearly 30 million carats worth $3.5 billion, Irving added. Nine mines are either currently producing or under construction; two others are in advanced exploration, and three await permitting.

However, Saskatchewan may wield the greatest influence over the future rough diamond market because it involves many junior companies that will likely sell their shares of the mines’ production themselves instead of jointly marketing through the senior partner. This will no doubt result in a number of direct partnerships with large retailers or diamond manufacturers, said Irving.

Indeed, a number of Israeli and Indian manufacturers have been talking to these junior mining firms at various mining conferences within the country. For those without such supply agreements, the rough market could become a competitive free-for-all, with perhaps eight to 10 new sellers.

RETAIL: U.S. retail jewelers continue to report mixed results, reflecting the buyers’ caution that has been apparent at recent trade shows.

On the positive side, Signet Group (operating as Kay Jewelers and Jared Galleria in the U.S.) reported that its same-store sales companywide rose 5.2% during the first half of fiscal 2006, compared to the same period last year. Group sales totaled $1.5 billion. The company noted that profits rose 9.9% to $71.4 million, largely boosted by second-quarter results, which showed an increase of 12.7% to $33.9 million.

Signet’s same-store sales in the U.S. rose 7%, with total sales up 15.8% to $1.2 billion. In addition, the average unit selling price rose 5%. Jared’s luxury watch ranges performed strongly.  Kay’s television and print ads are reported to have boosted both Valentine’s Day and Mother’s Day retail sales in the United States.

Zale Corp. reported a loss during the fourth quarter of its fiscal year, which the retail jewelry chain attributed to aggressively discounted inventory clearance programs.

The company reported a loss of $26.45 million, against a $4 million profit for fiscal 2005. The inventory clearance helped Zale revenues rise 3.9% to $491 million.

Company president and CEO Betsy Burton said in a news release, “We had better than expected top-line growth in the Zale brand, offset by lower gross margins due to increased clearance.” She added that inventory clearance would continue through the first quarter of fiscal 2007.

For the year, Zale profits fell 49% to $54.5 million. Same-store sales rose 1.6%. The company is looking toward sales growth of 3% to 5% in 2007.

Tiffany & Co. also reported a sharp decline in earnings, but noted that the decline stemmed from accumulating inventories as well as increased costs for gold and other precious metals. The company announced that second-quarter sales grew 9.2% to $574.9 million from the same period of 2005. Profits declined 18.6% to $41.1 million.

Tiffany's second-quarter same-store sales grew 6% worldwide, led by Europe which was up 20%. Sales were up 5% in the U.S. while falling 3% in Japan. Net inventories increased 16% from one year ago.

For the six months ending July 31, sales rose 7.4% to $1.114 billion. Profits fell 7% to $84.29 million. Same-store sales for the first half grew 4% worldwide, 5% in the U.S., and 17% in Europe; they fell 1% in Japan.

Russell Shor
Senior Industry Analyst

The total depth percentage of a round brilliant diamond is its table-to-culet depth, expressed as a percentage of its average girdle diameter. Total depth percentage is an aspect of design, and therefore important to the assessment of an overall cut grade. The total depth percentage and the diamond’s potential cut grade can be determined by following the procedure below.

1. Calculate the diamond’s average girdle diameter (see article in previous Insider).

2. Measure the diamond from table to culet.

3. Divide the depth in millimeters by the average girdle diameter, and multiply by 100.

4. Round the result to the nearest tenth of a percent.

5. Use the table below to help estimate the diamond’s potential cut grade.

Example: A round brilliant-cut diamond has an average girdle diameter of 4.55 mm. Its depth from table to culet measures 2.55 mm.

Divide the diamond’s depth by its average girdle diameter: (2.55 ÷ 4.55) = 0.5604

Multiply by 100: 0.5604 × 100 = 56.04%

Round to nearest tenth of a percent = 56.0%

Total depth percentage is useful in determining why a diamond is underweight or overweight in relation to its diameter. Well-proportioned diamonds typically have total depth percentages around 60.0 percent.

Diamonds with total depth percentages below 55.0 percent are generally underweight, with shallow crowns, shallow pavilions, or a combination of both. They might also have large tables or very thin to extremely thin girdles.

Diamonds with total depth percentages of 65.0 percent or more are generally overweight, with steep crown angles, deep pavilions, or both. Excess weight is often located at the girdle, which might range from thick to extremely thick. Some stones might have large tables, shallow crowns, and exceptionally deep pavilions. Others might combine slightly steep crowns with moderately thick girdles and moderately steep pavilions.

It’s important to understand that while a total depth percentage of 60.0 percent suggests good proportions in a diamond, it doesn’t guarantee them. A diamond with a 60.0 total depth percentage might still have negatives like a shallow crown, a very thick girdle, or a deep pavilion.

As you can see from this chart, some total depth percentage (TDP) ranges overlap between grades. For example, a diamond with a total depth percentage of 60.0 percent can fall within any of the GIA cut grades. A total depth percentage of 52.0 percent, however, falls outside the ranges for Excellent, Very Good, and Good and can result in only a Fair or Poor grade. When a diamond’s total depth percentage falls outside any of the top ranges, it can never achieve one of the better cut grades.

Step-by-step procedures to determine 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.

A DVD-ROM containing professional audio and video recordings of GIA's 4th International Gemological Symposium is now available for purchase from Source of Knowledge, a leading digital conference recording company.

The MPEG4 DVD-ROM features unedited, live recordings of many of the event’s panel sessions and keynote speakers, including former Secretary of State Madeleine Albright, lecturer and consultant Frank Abagnale, and Lazare Kaplan International’s Maurice Tempelsman.  

“This conference recording is perfect for those who were unable to attend this Symposium or for those who would like to have a record of this historical event,” said Kathryn Kimmel, GIA vice president of Marketing and Public Relations and the event's co-chair.

The MPEG4 DVD-ROM will play in computers able to read DVD-R Media, including Windows 98/NT/2000/XP and MAC OSX. The MPEG4 DVD-ROM is not a DVD video disc and will not play in your home DVD player. The DVD-ROM can be purchased from Source of Knowledge for $349 plus shipping and handling.

Please note that this is not a GIA product and can only be obtained from Source of Knowledge. Click here to download an order form.

The necklace/brooch was donated during the JCK International Jewelry Show in Las Vegas on June 4 and will become part of the GIA Museum’s permanent collection. The piece is on display at the Institute’s headquarters in Carlsbad, Calif.

“Using their delicate, chiffon-sheer gold fabric, FabricJewelry has created an exquisite rose for this necklace,” said GIA Museum Director Elise Misiorowski. “The necklace has a powerful presence but is lightweight and ultra-feminine. It is a privilege to receive this unique gift for the GIA Collection.”

Each petal of the golden flower has been edged with silk thread, and its center is set with small Paraíba tourmalines and diamonds radiating from a pear-shaped pink sapphire.

In addition to the 2.66-ct. center sapphire, the hand-assembled piece contains four rubies, 30 tourmalines, 79 colorless diamonds, 48 black diamonds, and three briolette pink sapphires. The woven metal threads are 30 microns in diameter and are a blend of 24K yellow gold.

FabricJewelry Co., Ltd., based in Tokyo, was founded by Yoko Kobayashi, Izumi Takemoto, and Tsumugi Fujita. The company’s two lines of jewelry include “Silkyveil,” woven with 30-micron threads of pure gold, and the award-winning “Angelveil,” woven with 100-micron threads of pure gold and platinum.

“We are honored to donate this jewelry to GIA, the most prestigious gemological institute in the world,” sa