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Page 1: Fall 1999 Gems & Gemology - Gemological Institute of AmericaGems & Gemology is published quarterly by the Gemological Institute of America, a nonprofit educational organization for
Page 2: Fall 1999 Gems & Gemology - Gemological Institute of AmericaGems & Gemology is published quarterly by the Gemological Institute of America, a nonprofit educational organization for

i

EDITORIALThe 1999 International Gemological Symposium: What a Ride! 1Alice Keller and Kathryn Kimmel

VALEDICTORY ADDRESSESGlobalization and Technology: Dynamic Forces for the 21st Century 2Maurice TempelsmanMeeting the Millennium in the Gem & Jewelry Trade 8William E. Boyajian

SPECIAL SESSIONObservations on GE-Processed Diamonds: A Photographic Record 14Thomas M. Moses, James E. Shigley, Shane F. McClure,

John I. Koivula, and Mark Van Daele

PHOTOMONTAGEPeople, Places, and Events 23

ABSTRACTS OF FEATURE PRESENTATIONS / BY SESSIONChanges and New Developments in Africa 34John J. GurneyDiamonds from Australia 37A. J. A. (Bram) JanseCanadian Diamond Production: A Government Perspective 40Douglas PagetRussian Diamond Sources 43N. V. Sobolev

The New York Diamond Market 44Hertz HasenfeldThe Antwerp Diamond Sector 46Marcel PruwerThe Indian Perspective: Challenges and New Developments 47M. A. MitchellDiamond Manufacturing and Distribution:

The Israeli Perspective 49Shmuel Schnitzer

The Effect of International Economic Developments on the Diamond Market 50

Carl PearsonDiamond Economics: A Dynamic Analysis 51Martin RapaportThe Diamond Distribution System 52Eli HaasRetail Markets and the Growing Global Significance of Branding 53Russell Shor

A Manufacturer's Perspective 55Sean CohenThe U.S. Diamond Industry 56Benjamin Janowski Today and Tomorrow in the Japanese Jewelry Market 58Hidetaka Kato The Developing Market in China 59Gerald L. S. Rothschild

Contents

D I A M O N D SOURCES

DIAMONDMANUFACTURING

& DISTRIBUTION

D I A M O N DECONOMICS

PERSPECTIVES ON THE DIAMOND

MARKET

Page 3: Fall 1999 Gems & Gemology - Gemological Institute of AmericaGems & Gemology is published quarterly by the Gemological Institute of America, a nonprofit educational organization for

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Ruby and Sapphire Occurrences Around the World 60Robert E. KaneEmeralds—Recent Developments and

Projected Changes in Supply 62Dietmar SchwarzReview of Gem Localities in North America,

Russia, and Southeast Asia 64William LarsonColored Stone Sources in Africa and Madagascar 66

Abe K. Suleman

Will There Be Another Chance for Business in the Asian Colored Stone Jewelry Market? 68

Yasukazu SuwaSnake Oil or Cedar Oil: Have Your Colored Stones

Been Enhanced, and Are You Telling the Tale? 70Gerald Manning South America: The Birth of a New Jewelry-Consuming Market 71Daniel André Sauer

The Present and Future of Akoya Cultured Pearls 73Shigeru Akamatsu Freshwater Pearls: New Millennium—New Pearl Order 75James L. Peach Sr.The Tahitian Cultured Pearl: Past, Present, and Future 76Robert WanCultured South Sea Pearls 77Andy Muller

The Ongoing Challenge of Diamond Identification 80James E. ShigleyThe Identification of Ruby and Sapphire 82Kenneth Scarratt Distinguishing Natural from Synthetic Emeralds 84Karl SchmetzerIdentification Challenges of the New Millennium 86Shane F. McClure

Identifying Diamond Treatments 88Ilene M. ReinitzFluxes and the Heat Treatment of Ruby and Sapphire 90John L. EmmettFissure-Filled Emeralds and Their Detection 93Henry A. HänniAn Overview of Gemstone Treatments 95Kurt Nassau

Chaumet—A Very Parisian Jeweler 97Diana ScarisbrickEarly 20th Century Jewelry 99Elise B. MisiorowskiThe Marketing of Period Jewelry During the

20th Century and into the Next Millennium 101Joseph H. Samuel Jr.

Adapting Classic Designs to Modern Markets 103Robert Lee MorrisCreating a Luxury Brand 104David Yurman

COLORED STONEDISTRIBUTION &

MARKETING

PEARLS—THE SOURCES

GEM IDENTIFICATION

TREATMENTS

TIMELESSNESS OF ANTIQUE &

ESTATE JEWELRY

ORIGINAL &TREND-SETTING

JEWELRY DESIGN

COLORED STONESOURCES

Page 4: Fall 1999 Gems & Gemology - Gemological Institute of AmericaGems & Gemology is published quarterly by the Gemological Institute of America, a nonprofit educational organization for

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RETAILING IN THENEW MILLENNIUM

The American Designer Jewelry Movement: Where It Came from and Where It's Going 105

Cindy Edelstein

Perspective of a High-End Jeweler 107Stephen MagnerPerspective of an Electronic Retailer 109John CalnonMeeting Customer Needs 111Matthew StullerCan a Family Business Compete

in the 21st Century Jewelry Market? 112Thomas Tivol

PANEL DISCUSSIONSDiamond Production in the 21st Century 114

Manufacturing and Marketing Diamond Jewelry in the 21st Century 116

The Role of Laboratory-Grown Materials in the 21st Century 118

The Leadership Role of Fine Jewelry in the 21st Century 120

Marketing Pearl Jewelry in the Next Millennium 122

Critical Issues in the 21st Century 124

Marketing Opportunities in the 21st Century 126

The Importance of Electronic Networking in the 21st Century 128

THE WAR ROOMSBranding 130

Appraisals 132

Diamond Cut 134

Disclosure 136

POSTER SESSION ABSTRACTS: A MARKETPLACE OF NEW IDEAS 138

INDEX 177

EEddiittoorr’’ss nnoottee:: Because of con-tractual restrictions, we couldnot include the talks of businessspeakers Peter Ueberroth, AlRies, Don Tapscott, Art Laffer,and Rushworth Kidder. However,audio recordings of most ses-sions, including the last fourbusiness speakers, can be pur-chased through The Sound ofKnowledge (www.tsok.net).

Note that, unlike a regularissue of Gems & Gemology, noneof the articles or other informa-tion in this volume was submit-ted to peer review, although sev-eral internal reviewers wereinvolved in the editorial process.Also because of its specialnature, this issue is paginatedseparately from the other issuesof G&G in this volume year, andit has a separate index as well.

ABOUT THE COVER: The diversity of presentations at the 3rd InternationalGemological Symposium—from old localities to new, from period jewelry to contempo-rary, from diamonds to a vast array of colored stones and pearls—is illustrated on thecover of this special Proceedings issue: ((11)) Antique platinum earrings with white drop-shaped natural pearls (each 14.3 x 10.5 mm) and diamonds; ((22)) a 12.5 mm Tahitiancultured black pearl; ((33)) a 4.40 ct violetish purple spinel, Sri Lanka; ((44)) a 3.83 ct pinkspinel crystal, Mogok, Myanmar; ((55)) a 1.76 ct blue spinel, Sri Lanka; ((66)) a 1.53 ct pur-ple-red spinel, Vietnam; ((77)) a 16.95 ct dodecahedral yellow diamond crystal, IvoryCoast; ((88)) a 6.58 ct “Jubilee”-cut J-VS1 diamond; ((99)) a 0.65 ct Fancy Vivid yellow dia-mond; ((1100)) a 0.30 ct Fancy Deep blue diamond; ((1111)) a 0.31 ct Fancy Intense purple-pink diamond; ((1122)) a 10.07 ct tanzanite in a platinum and gold ring designed by BerndMunsteiner; ((1133)) a 12.64 ct spessartine garnet, Kunene River, Namibia; ((1144)) a 7.54 ctgreen tourmaline, Paraíba, Brazil; ((1155)) a 5.84 ct greenish blue tourmaline, Paraíba,Brazil; ((1166)) a 5.04 ct ruby, Malawi; ((1177)) a 2.12 ct emerald, Coscuez, Colombia; ((1188)) a3.05 ct sapphire. Stones and jewelry from the collection of Michael M. Scott.

Photo © Harold & Erica Van Pelt—Photographers, Los Angeles, California

Color separations for Gems & Gemology are by Pacific Color, Carlsbad, California.Printing is by Fry Communications, Inc., Mechanicsburg, Pennsylvania.© 1999 Gemological Institute of America All rights reserved ISSN 0016-626X

Page 5: Fall 1999 Gems & Gemology - Gemological Institute of AmericaGems & Gemology is published quarterly by the Gemological Institute of America, a nonprofit educational organization for

EEddiittoorr--iinn--CChhiieeffRichard T. Liddicoat

PPuubblliisshheerrWilliam E. Boyajian

AAssssoocciiaattee EEddiittoorrJohn Sinkankas

TTeecchhnniiccaall EEddiittoorrCarol M. Stockton

Assistant Editor Stuart Overline-mail: [email protected]

CCoonnttrriibbuuttiinngg EEddiittoorrJohn I. Koivula

EEddiittoorrAlice S. Keller5345 Armada DriveCarlsbad, CA 92008(760) 603-4504e-mail: [email protected]

SSeenniioorr EEddiittoorrBrendan Laurse-mail: [email protected]

SSuubbssccrriippttiioonnssDebbie Ortiz(800) 421-7250, ext. 7142Fax: (760) 603-4595e-mail: [email protected]

EEddiittoorrss,,GGeemm TTrraaddee LLaabb NNootteessThomas M. Moses Ilene ReinitzShane F. McClure

EEddiittoorrss,, GGeemm NNeewwssMary L. Johnson, John I. Koivula, Dino DeGhionno, andShane F. McClure

EEddiittoorrss,, BBooookk RReevviieewwssSusan B. JohnsonJana E. Miyahira-Smith

EEddiittoorr,, GGeemmoollooggiiccaall AAbbssttrraaccttssA. A. Levinson

AArrtt DDiirreeccttoorrSeth Hogan

PPrroodduuccttiioonn AAssssiissttaannttCarole Johnson

WWEEBB SSIITTEEwww.giaonline.gia.edu

Alan T. CollinsLondon, United KingdomG. Robert CrowningshieldNew York, New YorkJohn EmmettBrush Prairie, Washington,Emmanuel FritschNantes, FranceC. W. FryerSanta Monica, CaliforniaHenry A. HänniBasel, SwitzerlandC. S. Hurlbut, Jr.Cambridge, Massachusetts

Alan JobbinsCaterham, United KingdomMary L. JohnsonCarlsbad, CaliforniaAnthony R. KampfLos Angeles, CaliforniaRobert E. KaneSan Diego, CaliforniaJohn I. KoivulaCarlsbad, CaliforniaA. A. LevinsonCalgary, Alberta, CanadaThomas M. MosesNew York, New York

Kurt NassauP.O. Lebanon, New JerseyGeorge RossmanPasadena, CaliforniaKenneth ScarrattNew York, New YorkKarl SchmetzerPetershausen, GermanyJames E. ShigleyCarlsbad, CaliforniaChristopher P. SmithLucerne, Switzerland

EDITORIAL REVIEW BOARD

SUBSCRIPTIONS and SINGLE COPIESSubscriptions to addresses in the U.S.A. are priced as follows: $69.95 for one year (4 issues), $179.95 for three years (12 issues). Subscriptions sent elsewhere are$80.00 for one year, $210.00 for three years.Special annual subscription rates are available for all students actively involved in a GIA program: $59.95 to addresses in the U.S.A.; $70.00 elsewhere. Yourstudent number must be listed at the time your subscription is entered.Single copies of this special Proceedings issue may be purchased for $24.95 in the U.S.A., $35.00 elsewhere. Discounts are given for bulk orders of 10 ormore of any one issue. A limited number of back issues of G&G are also available for purchase. Please address all inquiries regarding subscriptions and thepurchase of single copies or back issues to the Subscriptions Department. or contact us on the Web at www.giaonline.gia.edu.To obtain a Japanese translation of Gems & Gemology, contact GIA Japan, Okachimachi Cy Bldg., 5-15-14 Ueno, Taitoku, Tokyo 110, Japan. Our Canadiangoods and service registration number is 126142892RT.

MANUSCRIPT SUBMISSIONSGems & Gemology welcomes the submission of articles on all aspects of the field. Please see the Guidelines for Authors in the Spring 1999 issue of thejournal, or contact the Senior Editor for a copy. Letters on articles published in Gems & Gemology and other relevant matters are also welcome.

COPYRIGHT AND REPRINT PERMISSIONSAbstracting is permitted with credit to the source. Libraries are permitted to photocopy beyond the limits of U.S. copyright law for private use of patrons.Instructors are permitted to photocopy isolated articles for noncommercial classroom use without fee. Copying of the photographs by any means other thantraditional photocopying techniques (Xerox, etc.) is prohibited without the express permission of the photographer (where listed) or author of the article inwhich the photo appears (where no photographer is listed). For other copying, reprint, or republication permission, please contact the editor.Gems & Gemology is published quarterly by the Gemological Institute of America, a nonprofit educational organization for the jewelry industry, 5345Armada Drive, Carlsbad, CA 92008.Postmaster: Return undeliverable copies of Gems & Gemology to 5345 Armada Drive, Carlsbad, CA 92008.Opinions expressed in signed articles and abstracts are understood to be the opinions of the authors and not of the publisher or GIA.

EDITORIAL STAFF

PRODUCTION STAFF

VVOOLLUUMMEE 3355 NNOO.. 33

Page 6: Fall 1999 Gems & Gemology - Gemological Institute of AmericaGems & Gemology is published quarterly by the Gemological Institute of America, a nonprofit educational organization for

or four days in June, from the 21st to the 24th,we enjoyed one of the most exhilarating experi-

ences in the history of our industry. More than 1,400people from 49 countries came together at the ThirdInternational Gemological Symposium to learn, to listen, towork, and to play. Representatives from major diamondmining companies met the manufacturers who cut dia-monds, the dealers who sell them, the designers who setthem, and the retailers—from online shopping networks tolarge chains to single-store operations—who deliver them-to the consumer. The sharing of information outside thepresentation rooms was almost as powerful as the knowl-edge that was imparted by the more than 200 speakers, pan-elists, War Room participants, and poster session presenters.

And lest we lose sight of our roots, who will ever forgetthe words and wit of Richard Liddicoat, Bob Crowning-shield, Bert Krashes, and Glenn Nord at the special“Gemology Greats” session? Over the course of the last 60years, these four men have transported gemology from atrade to a profession, from a skill to a science.

The gemological information was framed by some powerfulbusiness speakers. Former Olympics chairman PeterUeberroth opened Symposium by emphasizing the impor-tance of “two at the top”— if we are to get ahead, we mustshare our leadership. On the final day, marketing expert AlRies declared the brand—not the salesperson—as king intoday’s battle for consumer dollars. “It’s the brand itself thatprovides credibility,” Ries said. Cyber-guru Don Tapscott,reminded us that “we are seeing the first generation to growup digital—the first generation to be bathed in bits . . . thereare 80 million members of this generation in the UnitedStates and they are all going to wear jewelry.” Distinguishedeconomist Arthur Laffer asked rhetorically whether wethought (Federal Reserve Board Chairman) Alan Greenspanwas going to “lose his nerve and . . . ruin the last 20 years offinancial credibility?” Said Laffer: “No, of course not . . . thebest is yet to come.” And noted ethicist Rushworth Kiddertold jewelers at Symposium that information cannot hideforever. It always comes out. Kidder’s message was resound-ing: “Disclose or be disclosed.”

Rounding out Symposium were wonder-ful social events that encouraged networking and cama-raderie. Highlights included the fabulous international foodat the opening reception, the Canadian wines that flowed atthe San Diego Natural History Museum diamond gala, thespectacular jewelry at the platinum breakfast and the pearlreception, and a melange of fine Italian jewels and opera in“Arte in Oro.” Our heartfelt thanks to the many sponsorswho made these and other special aspects of Symposiumpossible.

We have put together this Proceedings volume to sharesome of the vast information that was provided duringthese four days in June. In the longest issue of Gems &Gemology ever published, we are pleased to provide theclosing speeches of Maurice Tempelsman and BillBoyajian, a special update on GE-processed diamonds,extended abstracts of 45 feature presentations, and sum-maries of the eight panels. Also included is a photomontageof the people and events that gave life to Symposium.Rounding off the formal program are summaries and dia-logue from each War Room, a unique open forum atwhich hundreds of attendees argued and advocated insearch of solutions to some of the industry’s most pressingconcerns—branding, appraisals, diamond cut, and disclo-sure. The volume concludes with more than 70 abstractsfrom the poster sessions, which proved to be a true“Marketplace of New Ideas.”

WE DEDICATE this special Proceedings issue to Dr. VinceManson, whose heart and considerable intellect made the1999 Symposium a reality. Vince mobilized an entire armyof speakers, panelists, presenters, and volunteers. And hedid so while waging a private and most courageous battlefor his own life. We rallied at Symposium, inspired by hisvision and bolstered by his enthusiasm. Vince passed awayon July 3rd, leaving us with one of the most memorableexperiences of our lives. Vince, a toast to you . . . .

GEMS & GEMOLOGY FALL 1999 1

Alice Keller & Kathryn KimmelCo-Chairs, Third International Gemological Symposium

F

The 1999INTERNATIONAL

GEMOLOGICALSYMPOSIUM

WhataRide!

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2 SYMPOSIUM PROCEEDINGS ISSUE

URS IS A DYNAMIC INDUSTRY — driven bythe creative energy of the men and women

who combine the skills necessary to run a suc-cessful business with the sense of joy, aesthetics, andbeauty that add an extra dimension to the greathuman adventure. We help our customers celebratethe memorable moments in their lives: engagements,wedding anniversaries, births, or that wonderfulmoment when a gift of beauty and distinction is thetangible expression of love, gratitude, or recognition.And because of this, ours is also an industry of service,for in some small way we participate in the spirit ofeach occasion we help to celebrate.

I congratulate the organizers and planners of thissymposium for their selection of experts and speakers.You chose well and carefully. In the last few days, wehave heard presentations on specific technical andtrade issues as well as on broader themes that set acontext. This is as it should be, for our industry is very much part of the broader economy, and is affect-edby the dramatic political and economic forces that affectall other industries.

When I stood before you in 1991 at the SecondInternational Gemological Symposium, in celebrationof GIA’s 60th anniversary, I could not help but reflecton the wisdom and foresight of GIA’s founder,Robert Shipley, who also founded the AmericanGem Society. I paid tribute to his vision to foreseethat an increasingly knowledgeable consumer

required a more knowledgeable approach, and to histenacity in establishing what has become the mostrecognized and respected research and educationalcenter for this industry. This was true in 1991, and itis even more so in 1999. The GIA provides technicaleducation to more than 15,000 students in residence,distance education, and extension courses. Todaythere are more than 250,000 GIA graduates. Thenumbers are impressive. But even more impressive isthe fact that this represents a storehouse of gemologi-cal expertise, knowledge, and ethical values on whichthe industry can draw. GIA focuses on attractingyoung people to this industry. Since 1991, GIA’s“Career Fair” program has helped place thousands ofqualified graduates. There is no greater satisfactionthan starting a young person on a successful careerpath. By doing so you energize the industry and bringit new ideas and fresh viewpoints to meet the futurechallenges.

Looking Back, Gazing ForwardAs we bring to a close this tumultuous century andlook to the new millennium, a few thoughts come tomind. “It was the best of times, it was the worst oftimes.” How right Charles Dickens was.

It was a century that saw some of the most mon-strous deeds that humans can inflict on one another.It was also a century that witnessed marvelous break-throughs and accomplishments in science and discov-

GlobalizationBy Maurice TempelsmanChairman, Lazare Kaplan InternationalNew York

and

O

Dynamic Forces for the 21st Century

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GEMS & GEMOLOGY FALL 1999 3

ery. With these developments came the reevaluationof what is right and what is wrong, and what we mustdo to make this a better place for ourselves and forour children.

As we approach the new century—let me add,with anticipation and a measure of optimism—it isuseful to look at the one that is just about to end. Isuggest we do so through the vision of ThomasJefferson, who said “I like the dreams of the futurebetter than the history of the past.” Although I ammore comfortable with that than with Shakespeare’s“What’s past is prologue,” today more than everhumanity can shape its destiny for good or evil. Thetools exist. The challenge is to muster the will, makethe choices, and deploy the organizational skills to usethese tools effectively and creatively.

This century was harsh on ideologies (commu-nism, fascism, and other “isms”). Who would havethought that communism — as an idea, a form ofgovernance, an economic system, an empire— wouldimplode, not by conquest or war, but through itsinability to come to grips with the objective realitiesof our age. A broader worldview and scientificadvances are defining and redefining daily the sub-stance of power and wealth. This is true for nationslarge and small, and for companies large and small.

This century was harsh on experts. Which politicalanalyst or economic pundit had the foresight ortemerity to predict the developments that, with20/20 hindsight, we now accept as having been obvi-ous and inevitable? At GIA’s 60th anniversary, theU.S. economy was in recession and our diamond andjewelry industry was stagnant. We believed that eco-

nomic growth would come from other parts of theglobe —Japan, the Pacific Rim, emerging markets.The U.S. market was labeled mature, tired; a new tri-umphalism that proclaimed economic miracles inother parts of the world prompted us to look else-where for growth and innovation. Nor was it onlyour industry that turned to other regions for itsfuture. Political leaders also lamented or bragged(depending on which side of the miracle they foundthemselves), wise economists forecast, and shrewdinvestors committed substantial capital to these expec-tations. However, all did not quite work out as pro-claimed—a useful reminder of our fallibility and, letme add, our courage in the face of what is inevitablyan uncertain future.

This century was generous—particularly in its clos-ing years—to systems of governance that struck a bal-ance between the freedom needed to nurture individu-al initiative and enterprise, and the accountability andtransparency—openness—essential to government byconsent and the successful workings of a free economy.

Now that the post-Cold War euphoria is over, inpolitics as well as economics, a new sense of realityhas set in. The end of communism in Russia did notproduce the automatic flourishing of democracy andfree-trade economies all over the globe. Nor did the“economic miracles” and newly emerging marketsavoid the pitfalls and disciplines of the marketplace.Nations, like individuals and companies, can onlylearn from past mistakes. It takes time to establish anew mindset, a new infrastructure—all the things thatare necessary for a functioning society to survive,adapt, and flourish in this rapidly changing world.

Jewelry captures the spir-it of a special occasion,as with these diamond

anniversary and engage-ment rings, set in gold

and platinum. Courtesyof Lazare Kaplan

International.

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4 SYMPOSIUM PROCEEDINGS ISSUE

The corrective measures cannot be imposed fromoutside; they must come from within and must reflectthe history, culture, and values of each society. Wecannot, nor should we attempt to, export in a pack-age what has worked so well in the U.S. in recentyears. Nor does our apparent success justify our ownform of triumphalism. But with caution, and a mea-sure of modesty, it may be useful to examine why theU.S. economy has responded so well to the dramatic,often wrenching, changes brought about by thegreater impact of global developments and rapid tech-nological change. We possess no magic formula, norare we guided by a manifest destiny. Nevertheless,through a combination of energy, luck, wisdom, andhistorical legacy, our system has become structured so

that the individual is free to create, grow, and benefit,while at the same time is held accountable to theneeds and laws of society and to the transparencyrequired in a modern functioning economy. This,and the capacity to self-correct, are the essence of theresilience that has enabled the U.S. economy toabsorb, not without pain and dislocation, but withmore stability than other economies, the unexpectedand unforeseen changes we have had to confront andaccept. And what is true for this economy in generalis equally true for our industry.

Trends for the FutureNow, if you will permit me, I’ll share my thoughtson two trends that will have an ongoing impact onthe diamond and jewelry industry in the years tocome. They are obvious, and they are not exclusive,as there are many other trends and forces we cannotyet see. But these two are important and timely: glob-alization and technology.

Globalization. Much has been written and said aboutglobalization. Although a lot of this is esoteric andeven incomprehensible, deep down one feels thatglobalization is real. Those of us who go to sea forour pleasure or adventure know that it is a tide ofepic dimensions and force. We aren’t quite surewhere it will lead, but we do know or feel that, if wewant to reach our destination, we had better take itinto account as we navigate and set course.

No one has written more cogently and compre-hensively on this subject than Thomas L. Friedman,the erudite columnist of the New York Times. He usesthe forces of globalization as a lens through which toexamine daily events in politics and economics. In hisrecent book, The Lexus and the Olive Tree (FarrarStraus & Giroux, 1999), he argues that globalization isnot just a phenomenon or a passing trend. It inte-grates capital, technology, and information acrossnational borders in a way that creates a single globalmarket and, to some degree, a global village. He thensuggests that you cannot understand the morningnews, know where to invest your money, or thinkabout where the world is going—or where your busi-ness is going—unless you understand how this newsystem influences the domestic policies and interna-tional relations of virtually every country.

Globalization I took place between the mid-1800sand the late 1920s. If one compares the volume oftrade and capital that flows across borders relative to

The economic and cultural systems that have evolved inthe U.S. give the individual freedom to create. This“Web of Life” platinum bib-style necklace is set withdiamonds on one side and pearls on the reverse.Designed by Robert Lee Morris, it was awarded theGrand Prize at the 1998 “Platinum Passion” designcompetition hosted by Platinum Guild International,and was on display in the 1999 Nature of Diamondsexhibit at the San Diego Museum of Natural History.Photo © GIA, by Harold & Erica Van Pelt.

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GEMS & GEMOLOGY FALL 1999 5

gross national products, and the flow of labor acrossborders relative to populations, the period of global-ization preceding World War I was similar to the onewe are living through today. This first era of global-ization was broken apart by the successive blows ofWorld War I, the Russian Revolution, and the GreatDepression, which combined to fracture the worldboth physically and ideologically. The divided globethat emerged after World War II was then frozen inplace by the Cold War, which lasted roughly from1945 to 1989, ending with the fall of the Berlin Wall.Friedman maintains that what we are now livingthrough is really Globalization II. However, today’sera of globalization not only differs in degree, but inimportant ways it also differs in kind. The previousera of globalization was built around falling trans-portation costs; today’s era of globalization is builtaround falling telecommunications costs. He goes onto say, “If the first era of globalization shrank theworld from a size ‘large’ to a size ‘medium’ this era ofglobalization is shrinking the world from a size ‘medi-um’ to a size ‘small’.”

I take comfort in that historical perspective: first,because we have been here before; and, second, becauseit disposes of the proposition that history is dead andthat world economics are now driven by a “newparadigm.” History has not been suspended—we shallhave plenty of opportunities to make new mistakes—nor have the inexorable economic laws that governthe marketplace and business cycle disappeared. Riskand reward will remain the benchmarks for those ofus who have chosen business as a profession. But aswe look at risks and rewards in the ordinary course,we must also look at them through the lens of global-ization and its impact.

This leads me to the diamond industry. We haveall seen and felt the impact of rapid globalization onour business. When I addressed you in 1991, growthand future expansion were perceived to lie outsidethe U.S. And indeed that is what happened. Diamondproduction expanded, investments were made, mar-keting and advertising were refocused, and a lot of usthought that a new era of growing demand in differ-ent parts of the world would sustain an uninterruptedexpansion. That boom quickly reversed itself withcatastrophic impact on many countries and markets,as demand suddenly declined. As the situation slowlystabilizes, the lessons learned are that, yes, we do livein a global village—and, no, we cannot isolate our-

selves across political borders. Nor does globalizationlend itself easily to supervision and control.

Technology. From the outer limits of our universe, tothe deepest recesses of our oceans— from the micro-scopic world of the atom on which the physicalworld is built, to the double helix of the DNA chainthat is the basis of life itself—human knowledge hasadvanced with great, bold steps. There are no limitsto our curiosity and our vision. Progress and thechange it brings cannot be stopped; nor should it belamented. Technology, in the final analysis, is not anend; rather, it is a means—a tool. How we use it—forgood or for evil, to build or to destroy—is a humandecision. Technology will challenge our wisdom, ourpriorities, our ethics, and even our humanity. I am con-fident that we shall rise to the occasion, because the ben-

The impact of globalization in the early 20th centuryis evident in these onyx and jade jabot brooches andcarved jade brooch, which derive their inspiration fromAsian decorative arts. Dating from around 1925, thejewelry is courtesy of Neil Lane Jewelry, Beverly Hills,California. Photo © GIA and Tino Hammid.

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6 SYMPOSIUM PROCEEDINGS ISSUE

efits for all of us far exceed the cost—the temporary dis-comfort that comes with the need to adjust to change.

The gem and jewelry industry is part of all this, asit should be, although to a certain extent the rapidmarch of technology has had a lesser impact on ourindustry than on others. Many industries have hadmore dramatic exposure to technological develop-ments in very short time spans and have had to learnto adjust quickly. However, we have had the luxuryof adjusting gradually—and thus the opportunity tothink and correct when unavoidable and irreversiblechanges challenged our industry as well. Tradition isalways comforting, particularly in a business where theeternal—art and beauty—intersects with the ephemer-al—commerce and change. This industry is fortunateto have so many people who understand the impor-tance of tradition, but who also can accept change andturn it into opportunity. As I said in my openingremarks, ours is a joyful business—and we should doall we can to keep it so—but it is not immune to allthe technological change taking place around us andthe resulting discomfort. Change is inevitable, and it isup to us to make change our friend.

Let me briefly touch on three areas of the dia-mond business where new and accelerating techno-logical development will bring change that will affectall of us, as well as those who purchase our products:(1) diamond mining, (2) diamond polishing, and (3)diamond marketing.

Diamond Mining. Satellite imaging, new break-throughs in geochemical and geophysical methodolo-gy, enhanced recovery methods such as X-ray tech-niques, underwater mining in deeper and deeperwaters, and incremental improvements in standardmining procedures—have all substantially increaseddiamond production, diamond reserves, and futurepotential. The new Ekati mine in Canada’s frigidNorthwest Territories, Namdeb’s production offshoreof Namibia, the mines in Botswana’s harsh desert, andRussia’s Alrosa mines close to the North Pole are alltributes to the ingenuity and capacity of the miningcompanies to develop and economically mineincreasingly hard-to-access diamonds. Technology hasmade that possible. It is irreversible.

Diamond Polishing. Laser sawing, automated cuttingmachines, computerized planning, measuring andpolishing machines, deep pressure boiling, and nowthe newly announced General Electric process toimprove the color of a small portion of diamondssuitable to this application, have changed the capacityand economics of transforming rough stones to pol-ished diamonds. Technology has made that possible—and here, too, it is irreversible.

Diamond Marketing. About a year and a half ago,John Chambers, the President of Cisco Systems—thecompany that makes the black boxes that connect theInternet—declared that, although most people did notgrasp it yet, the Internet was about to change “every-thing” about how people work, invest, learn, shop,and communicate (T. L. Friedman, “Foreign Affairs:Are You Ready?” New York Times, June 1, 1999). Inthe future, 1999 will be remembered as the year thatthe Internet really began to penetrate the conscious-ness of America. The way people buy everythingfrom cars to airline tickets and, yes, diamonds andjewelry—as well as the way they communicate,invest, work, and learn—is being fundamentally trans-formed. Technology has made that possible. Again, itis irreversible, and it is just the beginning.

U.S. Federal Reserve Chairman Alan Greenspan,testifying before the Joint Economic Committee,recently said, “Forecasting [the impact of] technologyhas been a daunting task.” I will not run where angelsfear to tread, but let me suggest that the consequenceof the technological breakthroughs in diamond min-ing is the availability of more rough diamonds in agreater variety of shapes, sizes, and qualities. The con-

New technology has made it possible to recoverdiamonds from the Ekati mine, in the bitter coldof Canada’s Northwest Territories. Photo © JiriHermann; courtesy of BHP Diamonds Inc.

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GEMS & GEMOLOGY FALL 1999 7

sequences of technological changes in diamond pol-ishing are a broader and more diverse supply to theconsumer and some adjustments in the relationshipsamong certain diamond grades. The consequences ofthe Internet are a new way of marketing and, for theconsumer, a new way of purchasing diamonds.

Given the conclusion that globalization and tech-nology will increasingly be part of our lives, that thesetrends are irreversible and will gather greater momen-tum in the years ahead, and that our industry, like allother industries, will be challenged and surprisedagain and again, two questions come to mind.

The first is: How should we as an industry feel aboutglobalization and technology? The answer to that simplequestion is crucial: It will determine how we come togrips with the changes that have already occurred, andwith others that have yet to come. We can curse orcondemn the new and try to roll it back. We can pre-tend it isn’t here or that it will go away if we ignoreit. Or we can, with hope and some trepidation,accept it as the unavoidable highlight of the age welive in, and turn it to our benefit and the benefit ofour customers. This requires candor, realism, opti-mism, and adaptability. I have no doubt that ourindustry has the talent, entrepreneurship, resilience,and integrity to come to grips with this reality and theopportunity it presents.

The second question is: How should we as anindustry deal with the impact of globalization and newtechnologies?

We field that question every day. The answer isobvious: adapt and prosper, resist and perish. Maybethe question should be restated: How should we as anindustry deal with these issues in relation to the consumer?For in the final analysis it is our customers who deter-mine whether we succeed or fail and whether thisindustry grows and prospers, or declines. The way weposition our products and ourselves has an importantbearing on the outcome. I have no easy or simpleanswer, but let me set forth some basic principles for aconfident and optimistic outlook:

First: Our job is to present the facts. The modernconsumer is better informed, better educated, hasmore access to information, and is better able andmore willing to make up his or her own mind whenthe facts are presented.

Second: Our job is to trust their judgment. Ourcustomers are part of the changing world; they are not

immune to it, and they know how to deal with inno-vation and change. They deal with that every day.

Third: With empowerment comes greater respon-sibility. What parent or grandparent has not watchedwith awe and admiration as a young child masters theInternet and is “on line” for his social life, his infor-mation, his learning? What parent or grandparent hasnot realized with trepidation that the Internet is dif-ferent from radio, television, and newspapers in that itis totally open, interactive technology—without edi-tors, censors, or filters. As you get connected, youhave to understand that this is an empowering medi-um. It gives you millions of new choices, but many ofthese will not be appropriate.

This industry is fortunate to have institutions likethe GIA and the AGS, the brainchildren of RobertShipley. Their job is to inform and educate in a worldthat is constantly changing and where new technolo-gy affects all sectors of the industry: mining, polishing,and marketing. We who care for, and benefit from,this industry must also face up to the unavoidablechanges that globalization and technology bring.Adjustment to some changes may be painful in theshort run, but I submit to you, with confidence, thatglobalization and technology will open new andchallenging opportunities for those with the vision tosee them and the courage and optimism to graspthem. This industry is too robust and too vibrant todo otherwise.

With laser cutting, diamond manufacturers cancreate shapes that would have been impossiblewith traditional methods. Both this 12 mm longx 2 mm thick sailboat and the accompanying ten-nis racket were produced by this new technology.Photo © GIA and Tino Hammid.

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8 SYMPOSIUM PROCEEDINGS ISSUE

THROUGHOUT HISTORY, humankind hasworked with stone and metal to weave the“fabric of passion” referred to in VinceManson’s opening comments into items of

adornment. Just as great designers and craftspeople fash-ion these items into beautiful jewels, so have these jew-els themselves helped fashion humankind.

Once again, we have seen how gems and jewelrybridge the arenas of life itself. They embody beauty.They engender love. They captivate the heart. Gems,like people, have personality. They smile at us. Theyspeak to us. And we watch, and listen.

Over these past several days, we have looked atsources, production, distribution, and identification.We’ve listened to gemologists, designers, manufactur-ers, and marketers. We’ve addressed challengingissues. We’ve introduced new concepts. We’veenlightened one another. Indeed, we have all beenmoved by the role that gems play — in science, inbusiness, in art, and in tradition.

But within this rich history lies an uneasinessabout the future of the gem and jewelry industry.This has been a century of revolutionary change:world wars, economic depressions, the advent ofcomputer technology, a man on the moon, and amission to Mars. It has also been one of radicalchange in the gem and jewelry industry: shifts in sup-

ply and demand, new retail formats, and sophisticatedtechnological challenges.

The decade of the 1990s has been especially chal-lenging for our industry. The over-retailed ‘80sbecame the efficiency-minded ‘90s. Mergers, acquisi-tions, and even bankruptcies dominated the scene. Asa result, the number of storefronts has been greatlyreduced, and those that survived often lack thetrained personnel that are the hallmark of the profes-sional jeweler.

At the wholesale level, we have seen how marketscan be shattered by the unknowing —or unthink-ing—actions of only a few. The emerald industry is acase in point, where the use of unstable fillers withoutsuitable disclosure in the search for short-term profitshas devastated demand and left dealers struggling.

But something else changed: New realities set in,and these new realities require new rules.

The thesis I propose as we close this 1999Symposium is simply this:

We are an industry in transition, and we must adopt new rules to guide us.

According to Massachusetts Institute of Tech-nology (MIT) economist Lester Thurow (1999, p.57), “the old foundations of success are gone.” For all

By William E. BoyajianPresident, Gemological Institute of America

Carlsbad, California

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GEMS & GEMOLOGY FALL 1999 9

of human history, he says, the source of success hasbeen the control of natural resources. Land and oil aregood examples. In our industry, the resources are dia-monds, precious metals, colored stones, and pearls.Thurow maintains that the source of success today isknowledge. Knowledge has become the trueresource.

This leads us to Rule #1 for an industry in transition:

Whoever owns the gold does not always rule.

Technology—knowledge, really—has had a pro-found impact on the “natural” resources of the gemand jewelry industry. It was knowledge that allowedMikimoto to develop cultured pearls at the turn ofthis century. It was knowledge that helped Verneuilcreate synthetic corundum around the same time. Itwas knowledge that allowed General Electric to pro-duce synthetic diamond in the 1950s. It was knowl-edge that helped Thai gem traders convert milkywhite Sri Lankan sapphire to beautiful blue materialin the 1970s. And it is knowledge that allows GE toalter the color of certain natural diamonds today.

According to Lester Thurow, the types of changeswe are seeing in the world today were last observed acentury ago, during the industrial revolution. At thattime, birth was given to the corporate research labo-ratory, as well as to the concept of systematic industrial

research and development. Technological advancesdid not just happen randomly; they could be system-atically managed. Technological advances also led toeconomic and cultural change. Consider electricity: Itspawned a whole new set of industries and radicallyaltered the production processes of every existingmanufacturer. With the electric light bulb, nightbecame day. Performance and efficiency increased.People’s habits changed. As a result, societies, evenentire cultures, were transformed. And technology—again, knowledge—threatens to have a greater globalimpact in the coming millennium. Here is what asenior executive at GE told me the other day: GE hasenormous scientific, technological, and engineeringcapabilities. General Electric wants its name associatedwith natural diamonds, not synthetic diamonds. GEwants to make an impact —even help revolutionize —the diamond industry, in ways never before imagined.And GE will introduce a steady stream of new tech-nology into the diamond business over the comingdecade. This is only part of the new realities of whichI speak.

Such change both intrigues and intimidates.Change brings progress, but it also brings increasedcompetition. I’m reminded of a recent advertisementin which the headline read: “Competition is a lot likecod liver oil. First it makes you sick. Then it makesyou better.” Change puts pressure on the status quo.It also thins margins for some, and fattens them for

For thousands of years, gems havebeen fashioned into items of

adornment. This magnificent dia-mond and platinum bracelet is set

with the important 69.68 ctExcelsior diamond, the largest of

11 stones cut from the largest dia-mond (995.20 cts) ever found at

the Jagersfontein mine. Thebracelet was on view in the Nature

of Diamonds exhibit at the SanDiego Natural History Museum,March through September 1999.Courtesy of Mouawad Jewelers,New York. Photo © GIA, by

Harold & Erica Van Pelt.

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10 SYMPOSIUM PROCEEDINGS ISSUE

others. It has a way of bringing out the best, andworst, in people. Principles become bent, skewed inmany directions. And the jewelry industry is notimmune to change and its many consequences.

How does Thurow’s theory of natural resources fitwith our industry and Rule #1? Let’s relate it to DeBeers’s natural resources and their current research onbranding. Could it be that De Beers’s control of thesupply of diamonds is not as important today as theirname or image? Could it be that De Beers will shiftmore of its energies from controlling supply to con-trolling the consumer’s mind? For we are in an age, asAl Ries said earlier, when marketing in the new mil-lennium is branding, and winning position in themind of the consumer is vital (Ries, 1999). As savvyas De Beers is, it probably will try to control bothsupply and the mind.

Could it be, then, that the next natural resource ofour industry—control of knowledge—looks less natu-ral and more resourceful? For what are natural

resources but products inherent to earth that weexploit for economic gain? Indeed, one of the biggestproblems facing leaders in the new millennium willbe how to develop our companies, organizations, andassociations to maximize intellectual resources—togenerate new ideas, new processes, new products, andnew services. Knowledge is much more than data. Itis a composite of experience and learning, and it con-stitutes the primary building block for any businessentity. Strategic and focused, it is the key that enablesone firm to do something significantly better thanothers. Thus, real knowledge creates real value, forstakeholders and consumers alike.

Today, we must learn how to do business andmake money in whole new ways, because simplyowning the product is not enough. Using informa-tion to create knowledge is the byword of success forthe new century.

Rule #2, then, for an industry in transition, is this:

Whoever controls knowledge rules.

The 19th century marketplace was dramaticallyand forever changed by the industrial revolution.Companies that hesitated to embrace mass productionfailed or were diminished. The 20th century has beenchanged by the information revolution, and compa-nies that refuse to embrace the technology of todaywill go the way of their 19th century counterparts.

It is axiomatic that those who fail to remember thepast are doomed to repeat it. This must serve as awarning to each of us: Change and adapt, or sufferthe consequences . . . as Peter Ueberroth advised inhis June 21 opening address.

Unfortunately, the corporate junkyard in ourindustry is littered with the wreckage of dealers, man-ufacturers, and retailers who didn’t see it coming,proceeded too slowly or too cautiously, or decided tolook the other way.

The future has become clearer since our lastSymposium in 1991, not just because we are eightyears more advanced, but also because the elements ofan information society are better developed andunderstood. Eight years ago we acknowledged thepersonal computer as a revolutionary product, notunlike the television was 40 years before. But wecould hardly have imagined the emergence of theInternet as it exists today, let alone the convergenceof these new communication technologies into what

With knowledge, Japanese entrepreneur KokichiMikimoto developed the Akoya cultured pearl into amajor industry. Cultured pearl necklace and earringsset with diamonds and blue sapphires are courtesy ofMikimoto Co.

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Education and knowledge provide thefoundation and underpinning that

allow an individual or a business tocreate new products and services with

intrinsic as well as market value.Illustration by Peter Johnston.

GEMS & GEMOLOGY FALL 1999 11

can be nothing less than revolutionary in the future.We have learned that electronic commerce is both

a challenge and an opportunity. It is a way for nimblebusinesses of all types to increase their effectiveness,reach untapped markets, develop new products andservices, and boost profits. As Don Tapscott (1999)told us: “More direct selling via the Internet is a cer-tainty.” Specialists will do better because they won’ttry to be all things to all people. They’ll do their thingbetter, and they’ll reach more people in search ofunusual products and services. They’ll also fill nichesthat consumers demand, now and in the future.

In case you’re not convinced about Rules 1 and 2,let me give you a few more industry examples thatI’m sure will hit home. How is it that information ona piece of paper—a grading report—can appear tobe more important than the gemstone itself? How is itthat a man who owns no diamonds, like MartinRapaport, can govern the price of them? How is itthat owning proprietary technology can control theoutlook of those who own the product it alters? Thatis, how can a firm like General Electric—through itsnew color altering process — have such a profoundimpact on the future livelihood of every dealer in thediamond pipeline?

Moreover, how is it that a 10-year-old electronicnetwork may do more diamond business than a 100-year-old diamond bourse? How is it that the groupowning most of the mines in Colombia cannot controlthe price of emeralds? How is it that laser inscription canbe an impediment in the 1980s and a security measure inthe 1990s? How is it that the analysis of cut can lie dor-mant for decades and regain life in only a few years?

Technology not only changes the way we dobusiness, but it also changes the way we think.Technology adds new dimensions to reality and takessome away. One person’s revelation becomes another

person’s terror. One person’s truth becomes anotherperson’s lie. Finding agreement is difficult, but notimpossible. When reasonable people speak openly andhonestly, rational compromise often prevails. This is anoble goal as we look to the new millennium: thatfair-minded people, no matter what the stakes, canwork together for the good of all.

Rule #3 for an industry in transition:

Continue to live by the Golden Rule:“Do unto others, as you would

have others do unto you.”

The headline of Time magazine read: “What everhappened to ethics?” It is no coincidence that weasked a leading ethicist, Rushworth Kidder (1999) , tospeak at this event. What we tried to do atSymposium is share principles that can help lead andguide our trade as we work and learn together in thenew millennium.

At GIA, our priorities remain the same:Education, Research, and the Gem Trade Laboratory.To be effective, education for professional develop-ment has to be grounded in reality. If learning is to beboth retained and useful, it must be applied immedi-ately and repeatedly. Our charter is to provide thateducation efficiently, affordably, and accurately.There is probably no better goal to help us live by theGolden Rule than to be a well-educated, well-trainedindustry. After all, consumers want to buy fromknowledgeable jewelers whom they know and trust,just as jewelers rely on the knowledge and integrity oftheir suppliers.

At the 1991 Symposium, we revealed that thedecade of the ‘90s would alter our thoughts aboutresearch in the future: Post-Cold War military tech-nology would be converted to commercial enterprise,

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12 SYMPOSIUM PROCEEDINGS ISSUE

and this new technology would begin to take its tollon the trade. Quoting from my 1991 speech, “ . . . themoney allocated to research on identification methodsin the gem and jewelry community is miniscule com-pared to that allotted to developing synthetics andtreatments. The jewelry industry is not prepared forthe potential impact of such technology. For the goodof the industry, the technology of gemstone identifi-cation must keep pace with the technology of gemsynthesis and treatments.” (Boyajian, 1992, p. 30)

In the 1990s, we tackled some of the challengesbrought on by this new technology: fracture-filleddiamonds, synthetic moissanite, new synthetic sap-phires and rubies, even synthetic diamonds. In the

21st century, however, we will see the full effects ofcommercial exploitation of these technologies. Whatwe are seeing with the new GE process, for example,is just the tip of the iceberg.

Gemological laboratories, therefore, are challengedas never before. And if they are challenged, imaginethe dilemma for dealers, manufacturers, and retailers.No wonder more people are protecting themselveswith third-party documentation. No wonder they’researching for additional measures of security. Nowonder they question the future.

There are common pitfalls in every industry and inevery firm. The strong desire for self-preservation isoften coupled with an unwillingness to change and aresistance to fresh ideas. This fosters short-term think-ing and, in some people, an overriding obsession withmaking money that leads them to hoard informationand fail to disclose.

Yet mission must be more important than money,and doing what is right must be more important thandetermining who is right. Although I am not so naïveas to believe that noble motives are everyone’s goal, Ido know that no one of us is as smart as all of us. Onlyby working as a community will we prevail.

We are here at Symposium as people who care.We are leaders who can make a difference in thisindustry. While some things must change, othersmust not. We must remain true to the basic tenets ofour industry, our core values of knowledge, integrity,standards, and quality. Yet these virtues cannot beproduced on demand. At some point, we must beable to define what it means to act properly andresponsibly. And we must always remember to live bythe Golden Rule.

To summarize, then, our industry is in transition.We observe rapid change all around us, and we seekto make sense out of what, at times, appears to bechaos. I shared three Rules that I believe are axiomsof the coming millennium. They are:

1. Whoever owns the gold does not always rule.

2. Whoever controls knowledge rules.3. Live by the Golden Rule.

I have used real-life examples from our industry tomake these points. In particular, the models of successin the future are not necessarily those of the past.

Education is a major priority at GIA. Here we see ajewelry manufacturing student master the skills of abench jeweler. Photo © GIA.

Once considered an impediment to sales, laser inscrip-tion of a laboratory report number or other informationon the girdle of a diamond is now a respected securitymeasure. Photo © GIA.

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GEMS & GEMOLOGY FALL 1999 13

Owning the gold, diamonds, colored stones, andpearls is not enough in an information society.Owning value-added skills of support, service, tech-nology and trading are at least as important. Owninga name, a brand, an image, or a reputation may be ofeven greater value.

Some people in our industry own a segment of itthrough sheer knowledge and intelligence. Thosepeople who trade off of their strategic and intellectualcapacities often hold an edge over others who areworking with an older model. Older models may stillapply, but if your profit margin, growth, or marketshare is declining, consider the benefits of change.

Finally, no matter what your belief system, basicvalues must prevail. At the end of the day, virtue winsout over greed, and operating by the Golden Rulewill be more satisfying and, ultimately, will make youmore successful.

So what did we learn at this Symposium?• That gem and jewelry businesses

must embrace change to survive• That new treatments challenge

gemology just as new viruses challengemedicine

• That change itself means progress, not demise

• That new technologies will only increase inthe years ahead

• And that ethics and integrity really do matter

In conclusion, this industry’s real challenge is tosecure the hearts and minds of today’s astute con-sumer. We live in the greatest consumer age in thehistory of humankind. While this is a great time, it isalso a great test for our industry. At GIA, we haveattempted to do our part over the years to help securethe future of the industry and to help ensure the pub-

lic trust in gems and jewelry. I can only hope that thisSymposium has made even a small contribution tothat effort. But it mustn’t stop here. This is not a cli-max, but a beginning. Not a landing, but a launch.

The key to success in the year 2000 and beyondwill be the ability of each of us to anticipate and pre-pare for the future. We have weathered the chal-lenges of the past quite well, and every indication isthat we can adapt and navigate through the roughwaters ahead. This is an extremely resourceful andresilient industry, with remarkably agile people.

As we face the coming millennium, let’s remem-ber our experience of the Symposium. We saw thefuture here and—while challenging —that future isbright. Let’s work together to make our dreams avision, and our vision a reality, now and in the yearsto come.

One of the most important technological challenges of the 1990s is synthetic moissanite, a diamond simulantthat reads as diamond on a standard thermal probe.This synthetic moissanite is courtesy of Charles &Colvard (formerly C3, Inc.)

REFERENCES

Boyajian W.E. (1992) Facing the future in the gem andjewelry industry. In A. S. Keller, Ed., Proceedings of theInternational Gemological Symposium, 1991, GemologicalInstitute of America, Santa Monica, CA, pp. 27–33.

Kidder R. (1999) Winning with ethics. Audio recording oflecture by Don Tapscott presented at the ThirdInternational Gemological Symposium, San Diego,California, June 24, 1999. The Sound of Knowledge,San Diego.

Ries A. (1999) Marketing in the new millennium. Audio

recording of lecture by Al Ries presented at the ThirdInternational Gemological Symposium, San Diego,California, June 24, 1999. The Sound of Knowledge,San Diego.

Tapscott D. (1999) Digital technology. Audio recording oflecture by Don Tapscott presented at the ThirdInternational Gemological Symposium, San Diego,California, June 24, 1999. The Sound of Knowledge,San Diego.

Thurow L. (1999) Building wealth. Atlantic Monthly, June,pp. 57–69.

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14 SYMPOSIUM PROCEEDINGS ISSUE

S OF AUGUST 1999, GIA STAFF MEMBERS hadexamined 960 natural diamonds that had undergone anew process, developed by the General Electric

Company (GE), that removes some or all of the color of a diamond.Distributed exclusively by Pegasus Overseas Limited (POL), anAntwerp-based subsidiary of Lazare Kaplan International (LKI), thediamonds are referred to as GE POL or Pegasus diamonds in thetrade. These GE-processed diamonds look like untreated diamonds;however, careful examination has revealed that some of them exhib-it subtle features that usually are not present in natural-color dia-monds. This article presents demographic information on 858 (of the960) GE-processed diamonds that had been incorporated into theGIA Gem Trade Laboratory database as of July 15, 1999, anddescribes some of the unusual internal features that were seen. Asrecently stated by GE, the procedure used involves high pressure andhigh temperature and, to date, is effective only on certain high-puri-ty and high-clarity diamonds (J. Casey, pers. comm., 1999; see Box).

BACKGROUND

Earlier this year, Pegasus Overseas Limited announced to the jewelryindustry that GE scientists had developed a new process to improvethe color and other characteristics of a select group of natural dia-monds. According to these announcements, the diamonds would besold only through POL, and every direct purchaser would beinformed in writing by POL that they were purchasing a GE-pro-cessed diamond. Such sales began in June 1999.

In press releases (e.g., March 1, 1999) and other public state-ments, POL representatives claimed that this process was designed toimprove “the color, brilliance, and brightness” of qualifying dia-monds, and that the results were “permanent and irreversible.” Theystated that it did not involve any conventional diamond treatment

Observations on GE-Processed Diamonds: A Photographic Record

By Thomas M. Moses, James E. Shigley, Shane F. McClure, John I. Koivula, and Mark Van Daele

GIA Gem Trade Laboratory and GIA Research, New York and Carlsbad

Special SessionSpecial Session

AObservations made at GIA on858 GE-processed diamondsrevealed several interesting featuresthat may be diagnostic of thiskind of diamond. Specifically, asignificant percentage exhibited aslightly hazy appearance, notice-able internal graining, and otherunusual internal features.

Editor’s Note On June 23, at the Third InternationalGemological Symposium, representa-tives of GIA and the GIA Gem TradeLaboratory held a special session toprovide an update on the situationregarding the diamonds processed byGeneral Electric to improve their color(i.e., closer to colorless). This articlefollows up on that special session withthe statistical results and a photo-graphic record of GIA’s examinationof a large number of such diamonds.

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methods (such as irradiation, laser drilling, surfacecoating, or fracture filling), but rather it was merelyan extension of the manufacturing of rough into pol-ished diamonds. Nor did the processed diamondsrequire any “special care and handling.” Last, theyalso reported that these GE POL diamonds would“be indistinguishable” from natural-color diamondsby jewelers and gemologists using standard gem-test-ing equipment and techniques.

Since the initial announcement, representatives ofGE, POL, and GIA have held a series of useful andongoing discussions to address the concerns of thejewelry trade, and ultimately the consuming public,about this new GE process. These discussions result-ed in specific steps taken by GE to laser inscribe thegirdle surface of all of their processed diamonds with

the letters “GE POL” (figure 1), and by POL to thensubmit these diamonds to the GIA Gem Trade

GEMS & GEMOLOGY FALL 1999 15

esearch at the General Electric Companyon the properties of diamond as an indus-

trial material extends back more than 50 years.One result of this ongoing research programwas the discovery of a new process thatimproves the color of a select group of rare nat-ural diamonds. Specifically, exposure of certainhigh-purity diamonds to high temperature andhigh pressure removes their extrinsic color cen-ters (i.e., those caused by the external forces thataffected the diamonds after they formed in theearth’s mantle), so they display their optimumintrinsic color (i.e., as they originally grew). (Formore information on the cause of color in dia-monds, see Field [1979] and Fritsch [1998].)

The new process simulates the high pressures

and temperatures to which natural diamondswere subjected while they were deep in theearth’s mantle (see, e.g., Kirkley et al., 1991).The diamonds that respond to this method rep-resent in volume significantly less than 1% of“run of mine” diamonds. After processing, mostof the diamonds are in the D through G colorrange, and most require repolishing.

This discovery evolved through years of sci-entific and technical work. The General ElectricCompany is currently working with the jewelryindustry to develop practical means of identifi-cation and to educate the industry’s membersabout these processed diamonds.

Dr. T. Anthony and Dr. J. CaseyThe General Electric Company

R

RESEARCH ON DIAMONDS

AT THE GENERAL ELECTRIC COMPANY

Figure 1. The laser-inscribed “GE POL” is readilyvisible on the girdle surface of this 1.25 ct marquise-shaped diamond. Photomicrograph by John I. Koivula;magnified 40×.

RE F E R E N C E S

Field J.E. (1979) The Properties of Diamond. Academic Press, London.

Fritsch E. (1998) The nature of color in diamonds. InG. Harlow, Ed., The Nature of Diamonds,

Cambridge University Press, New York, pp.23–47.

Kirkley M.B., Gurney J.J., Levinson A.A. (1991)Age, origin, and emplacement of diamonds:Scientific advances in the last decade. Gems &Gemology, Vol. 27, No. 1, pp. 2 –25.

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Laboratory for reports that would identify that thesestones had undergone the GE process. This inscrip-tion provides an immediate, practical means of recog-nition throughout the trade. In addition, GIA makesthe following comment on grading reports for allsuch diamonds sent to the GIA Gem TradeLaboratory by POL: “‘GE POL’ is present on the gir-dle. Pegasus Overseas Limited (POL) states that thisdiamond has been processed to improve its appear-ance by General Electric Company (GE).” GE and

POL officials also have expressed support for GIA’sefforts to develop additional means of identifyingthese diamonds.

During the three-month period from early Maythrough July 1999, POL submitted 960 laser-inscribed diamonds to the GIA Gem Trade Lab-oratory for reports. They were examined by experi-enced diamond grading, identification, and researchstaff at GIA’s offices in New York and Carlsbad. This

16 SYMPOSIUM PROCEEDINGS ISSUE

Figure 3. As illustrated here, most of the 858 GEPOL diamonds examined by the GIA Gem TradeLaboratory weighed less than 2.00 ct.

Figure 4. The majority of these diamonds were fash-ioned in one of several fancy shapes (most frequentlymarquise or pear shapes). (RB = round brilliant;MQ = marquise; OV = oval; PR = pear shape;EM = emerald)

Figure 2. In several instances, GE-processed diamonds have been resubmitted to the GIA Gem Trade Laboratory,by individuals other than Pegasus representatives, with the “GE POL” inscription partially or completely removed.The database of information on the GE-processed diamonds we examined helped us detect these stones. In the photoon the left, the black appearance of the inscription has been removed, so that the “GE POL” is less visible. In thephoto on the right, only small portions of the original inscription are still visible. Photomicrographs by Shane F.McClure; magnified 40×.

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examination of a large group of known GE-processeddiamonds—using both standard identification andgrading techniques and, for some of the samples,advanced spectroscopic methods—gave us the uniqueopportunity to collect data on each diamond. Thisdatabase has already proved of value by allowing us torecognize several of these diamonds that were subse-quently resubmitted to GIA but with the “GE POL”inscription partially or completely removed (figure 2).

We have compiled certain demographic data on thisgroup of GE POL diamonds. These are presentedbelow, together with a description— and illustra-tions — of the various unusual internal features weobserved.

DEMOGRAPHIC DATA

Diamond Type. Diamonds are classified into fourmajor categories—referred to as types Ia, Ib, IIa, andIIb—according to the presence or absence of thetrace elements nitrogen or boron in their crystalstructure. These four categories of diamonds can bedistinguished on the basis of ultraviolet transparencyand visible and infrared absorption spectra, amongother characteristics.

Whereas most near-colorless diamonds seen in theGIA Gem Trade Laboratory are type Ia, the vastmajority (99%) of the 858 GE POL diamonds weretype IIa. This was determined by their transparency toshort-wave ultraviolet radiation and internal features,such as crosshatched (“tatami”) strain patterns.

Size. The 858 diamonds in our sample ranged from0.18 to 6.66 ct, with an average weight of 1.69 ct.The majority weighed less than 2.00 ct (figure 3).Note, however, that more than two-thirds (577)were 1.00 ct or more.

Shape. As illustrated in figure 4, 86% of these dia-monds were cut in one of several “fancy” shapes—mainly oval, marquise, and pear; most of the remain-der were round brilliants. This is consistent with therecent POL statement that they choose fancy shapesto obtain maximum value from the original rough(“GE/LKI support disclosure . . . ,” 1999).

Color. A high proportion (80%) of the GE-processeddiamonds were described as “colorless” or “near-col-orless” (from grades D through G; see figure 5). In

28% of the samples, however, members of our grad-ing staff commented that the diamonds had a slightlybrownish or grayish color appearance when examinedwith the GEM Diamondlite™ or a gemologicalmicroscope. LKI president Leon Tempelsman recent-ly commented that most of the diamonds are “topbrown” before the process is applied, “with othersgenerally within the brown family” (Donahue, 1999).

Of the 20% that fell below “near-colorless” on thecolor-grading scale, the largest portion (16% of thetotal group) were in the H–K range and 3% of thetotal group were in the L–N range. The remainderwere highly colored: Several were distinctly yellow,two fell in the O–P range, two in the S–T range, twoin the U–V range, and one in the Y–Z range.

Clarity. Consistent with the recent GE statementthat only high-clarity diamonds are chosen for pro-cessing, the majority of the GE POL diamonds (61%)were graded as being IF or VVS1. Most of theremaining diamonds were distributed over VVS2,VS1, and VS2, with very few in the SI or I categories(see figure 6). GE has confirmed that they selecthigh-quality stones for economic reasons ( J. Casey,pers. comm., 1999).

Ultraviolet Fluorescence. We found that 79% ofthe sample diamonds did not fluoresce to either long-

GEMS & GEMOLOGY FALL 1999 17

Figure 5. Although the entire range of color grades(from D through Z) were represented by the 858 GE-processed diamonds, most of these diamonds were inthe colorless to near-colorless range (D through G). Afew were distinctly yellow, and fell in the color gradesbetween O and Z.

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or short-wave ultraviolet radiation (figure 7 presentsthe results for long-wave UV). All of the remaining21% fluoresced blue, most with an intensity of veryfaint to faint. This fluorescence reaction correspondsto that of natural-color type IIa diamonds.

INTERNAL FEATURES

GIA’s examination of this large number of GE POLdiamonds, in some cases at high (up to 200×) magni-fication, revealed a variety of unusual internal features,such as graining (figures 8 and 9) and inclusions (fig-ures 10–16). This section expands the photographicrecord of the visual features we observed in the GE-processed diamonds (see, e.g., Shigley et al., 1999, foran earlier report), to help members of the industrybetter distinguish such diamonds. Further work is in

18 SYMPOSIUM PROCEEDINGS ISSUE

Figure 9. Also observed was brown graining, oftenin a parallel banded pattern. Photomicrograph byShane F. McClure; magnified 40 ×.

Figure 8. Graining was seen in a large number of GE-processed diamonds, and was one of the most prominentinternal features of these stones. In some cases, thegraining appeared whitish. In those diamonds where thegraining was most intense, it seems to have contributeda slightly hazy appearance to the overall stone.Photomicrograph by John I. Koivula; magnified 35×.

Figure 6. In general, the clarity of the sample diamondswas higher than normally would be expected in a generalpopulation of untreated colorless to near-colorless dia-monds, with 61% clarity graded as IF or VVS1.

Figure 7. The vast majority of the GE POL dia-monds were either inert, or displayed very faint fluores-cence, when exposed to long-wave ultraviolet radiation.

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GEMS & GEMOLOGY FALL 1999 19

Figure 10. “Partially healed” cleavageswere seen in a number of the GE POLsamples. Some, as on the top left andright (magnified 13× and 18×, respec-tively), were similar in appearance to the“fingerprint” inclusions seen in some col-ored stones. Others had an unusual net-work-like appearance (bottom left, 18×),and one showed a partially healed cleav-age next to a granular/glassy cleavagesimilar to those described in figure 11(bottom right, 32×). The first three pho-tomicrographs are by Shane Elen; the last is by Shane F. McClure.

Figure 11. These cleavages appear gran-ular and reflective (i.e., more opaque)

where they intersect the surface of the dia-mond, and are glassier and more translu-

cent deeper within the separation. Topleft—photomicrograph by John I.

Koivula, magnified 40 ×; top right andbottom—photomicrographs by Shane F.McClure, magnified 40 × (top right and

bottom left) and 33× (bottom right).

progress to see if any—or a combination—of thesevisual features will provide conclusive evidence that adiamond has been exposed to GE’s or a similar highpressure/high temperature procedure.

Graining. Internal graining was seen in more than75% of the GE POL diamonds. Our graders describedthe graining as very subtle to obvious, sometimes with

a “whitish” appearance (figure 8), but occasionallybrown (figure 9). Graining also occurs in natural-colortype IIa diamonds, though less frequently.

The GIA grading staff noticed that 45% of the dia-monds displayed a slightly hazy appearance, especiallywhen viewed with the microscope at 10× magnifica-tion. This may be due to graining or to some otherlight-scattering effect. Some of the diamonds did not

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exhibit the “crisp,” transparent appearance typical ofnatural untreated diamonds of similar color, clarity,and type.

Other Features Seen with Magnification. One ormore of the following internal features were observedin more than 30% of the samples: (1) surface-reachingcleavages or feathers; and (2) included crystals, typical-ly with strain cracks or halos.

Many of the surface-reaching cleavages appearedto be “partially healed”; that is, they resembled the“fingerprint” inclusions that are seen in sapphire andruby (figure 10). In other cleavages, we noticed thatclose to the surface of the diamond they had a frostedor granular appearance; but deeper within the stone,they became glassier (figure 11). A black area was seenin some of the cleavages (figure 12); laser Ramanmicrospectrometry identified the material in one

feather as graphite. Although cleavages are seen insome natural-color diamonds, we have not observedthis distinctive combination of features in surface-reaching cleavages or feathers in untreated near-color-less diamonds.

We noted included crystals that were surroundedby stress cracks (figure 13) in 103 samples. In a num-ber of instances, we observed black patches of whatalso appeared to be graphite that were surrounded bya translucent halo of tiny cracks radiating outward(figure 14). As is the case with colored gems such asruby and sapphire, this radial cracking may be due tothe differences in thermal expansion of the inclusionand the host diamond during heating to high temper-ature. A circular cleavage forms around the inclusionalong the octahedral plane to relieve the resultingstress within the diamond.

Other inclusions consisted of one or more areas of

20 SYMPOSIUM PROCEEDINGS ISSUE

Figure 13. This small solid inclusion surrounded bya stress crack is an example of a feature seen in 103of the GE POL diamonds. Photomicrograph byVincent Cracco; magnified 63×.

Figure 12. Each of these two partially healed cleav-ages has a black area similar to one identified asgraphite in another sample by Raman analysis.Photomicrograph by Shane Elen; magnified 18×.

Figure 14. In most of the 103 samplesthat had solid inclusions surrounded by

a stress crack, a black inner area(graphite) was surrounded by a brighter

halo of outward radiating cracks (left;also evident here is the banded internal

graining seen in a number of the GEPOL diamonds). In some instances,

there were several areas of graphite(right). Photomicrographs by John I.

Koivula; magnified 40×.

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what appeared to be graphite, surrounded by a mesh-like region of small cracks (figure 15). Again, theseinclusions are unlike the included crystals or cracksthat are typically seen in untreated near-colorless dia-monds.

Some solid opaque inclusions did not exhibit theseradial cracks, but instead showed a melted or flowstructure. These may have been sulfide inclusions,which are seen in some natural diamonds.

Unusual localized clouds or cloud-like formations(which resembled the stringers sometimes seen inruby) were present in approximately 2% of these dia-monds (figure 16).

Strain. Most of the GE POL diamonds exhibitedmoderate-to-strong strain patterns (with crosshatched[“tatami”], banded, and/or mottled arrangements; seefigure 17) when examined between crossed polarizingfilters with a polariscope or gemological microscope.In the majority of these samples, the strain colors werefirst- and second-order gray, blue, or orange. In com-parison, natural-color type IIa diamonds (which canshow similar strain patterns) usually exhibit less-intensegray and brown interference colors (Lang, 1967).

Discussion. Although the internal features noted herewere usually subtle in appearance, the fact that they

GEMS & GEMOLOGY FALL 1999 21

Figure 15. This inclusion contains several areas ofwhat appear to be graphite, which are surrounded bymesh-like zones of tiny cracks. Photomicrograph byJohn I. Koivula; magnified 40×.

Figure 17. When viewed with cross-polarized light, most of the GE POL diamonds exhibited banded ( left) orcrosshatched (center and right) strain patterns. Although some stones did reveal low-intensity interference colors(right), for the most part these diamonds showed moderate- to high-intensity interference colors (center and left),notably stronger than what is normally seen in untreated diamonds of similar color. Left and center photomicro-graphs by Shane F. McClure, magnified 20×; right photomicrograph by John I. Koivula; magnified 20×.

Figure 16. Approximately 2% of the GE POL dia-monds exhibited unusual localized clouds and stringer-like clouds. Photomicrograph by Shane F. McClure,magnified 40×.

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22 SYMPOSIUM PROCEEDINGS ISSUE

were observed in many of the 858 diamonds rein-forced our belief that these features were (1) producedin the diamonds as a result of this process, or (2) pre-existed in the kind of diamond selected for processing.In either case, we have rarely encountered the precisefeatures described here in the colorless to near-color-less type IIa natural-color diamonds submitted overthe years to our laboratory for grading reports.

To date, we have not established any definitiveidentification features in GE POL diamonds that canbe detected by instrumental measurement (e.g., anabsorption band produced in type IIa diamonds bythe GE process, which could be recorded by a spec-trophotometer). Thus, visual features (especially theuse of a laser inscription on the girdle, as mentionedabove) may offer the jeweler or gemologist the bestway at this time to recognize a GE POL diamond.

CONCLUSIONS

For the most part, the 858 GE-processed diamondsthat formed the database reported here: (1) were typeIIa diamonds, (2) weighed an average of 1.69 ct, (3)were fashioned in fancy shapes, (4) fell in the D-to-Grange of color grades, (5) had high clarity grades, and(6) did not fluoresce to UV radiation. In addition,many of these diamonds showed a slightly hazyappearance, often with noticeable internal graining—characteristics that were far more common in thisgroup of diamonds than in a similar population ofnatural-color diamonds. Other internal features(cleavages, feathers, and solid inclusions) were alsosomewhat different in appearance from what we havepreviously observed in untreated near-colorless dia-monds. None of the GE-processed diamonds exhibit-ed any evidence of “traditional” diamond treatments(such as irradiation, fracture filling, surface coating, orlaser drilling). On the basis of the diamonds we haveexamined to date, we believe that it is possible todetect at least a portion of these GE POL diamondsusing standard gemological observation techniquesand equipment.

GIA has undertaken a research program to betterunderstand the techniques used to improve diamondcolor and also to learn what color changes can beproduced and how extensive these modifications maybe. Results of these experiments will be published asthey become available. If we can reproduce some ofthe same apparently characteristic features seen in theGE-processed diamonds examined to date, then suchfeatures may provide a way to identify that the colorof a diamond has been altered by this method.

However, it is also possible that further develop-ment work could minimize or eliminate some of theunusual internal features we have noted in these dia-monds. It is likely that various organizations will con-tinue to experiment with this type of treatment, andthat greater numbers of such diamonds will find theirway into the jewelry trade. Although every effort isbeing made to keep up with these new technologies,we cannot guarantee that practical means will befound to recognize all of these diamonds.

Acknowledgments: The authors thank Dr. ThomasAnthony and Dr. John Casey of GE Corporate Research& Development, Schenectady, New York, for their assis-tance. Grading of the GE-processed diamonds was super-vised by Bruce Lanzl and Ed Schwartz of the GIA GemTrade Laboratory.

RE F E R E N C E S

Donahue P.J. (1999) Tempelsman: Consumers mixed onGE POL pricing. Web site http://www.professional-jeweler.com, October 14.

GE/LKI support disclosure and detection (1999) Interviewwith Leon Tempelsman in Rapaport Diamond Report,Vol. 22, No. 36, October 1, p. 23 et passim.

Lang A.R. (1967) Causes of birefringence in diamond.Nature, January 21, p. 248 (figure 3 and section V).

Shigley J., Moses T., McClure S., Van Daele M. (1999)GIA reports on GE POL diamonds. Rapaport DiamondReport, Vol. 22, No. 36, October 1, p. 1 et passim.

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Special video presen-tation by De BeersChairman NicholasOppenheimer.

GIA President BillBoyajian delivers his welcoming remarks.

“Mr. GIA,” Richard T. Liddicoat.

Keynote speaker PeterUeberroth proposes a“two at the top” systemfor businesses, where twoindividuals are able tofunction interchangeablyas leaders.

Bill Boyajian, Symposium Co-Chair AliceKeller, Richard T. Liddicoat, GIA

Executive Chairman Ralph Destino, andSymposium Co-Chair Kathryn Kimmel at

the opening ceremony.

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Right: Mark Van Bockstael, Jean-PierreChalain, Karl Schmetzer, and Henry Hänni.

Below: Gina Latendresse, Frank Mastoloni,Renee Latendresse, and Tom Chatham. At the

“Meeting the World” Opening Reception.

Right: GIA students Mithun Sacheti,Isabelle Don Carli, Aurelie Gourg, and

Jean François Michiels, with Sue Johnsonof GIA Education.

Above: Susan Jacques, Howard Herzog, and Lynn Ramsey.

Above: (Standing) Ezriel Rapaport, MartinRapaport, Eli Izhakoff, Dafna Avigur, ChaimEven-Zohar, and Martin Hochbaum; (Seated)Rivka Rapaport, Norma Haas, Eli Haas, RachelRosin, and Lorri Dee Dukes.

Right: SherylCashmore, Isaac

Dekalo, Nir Livnat,and Hadasa Dekalo.

Below: GeorgeHouston and AlWoodill.

24 SYMPOSIUM PROCEEDINGS ISSUE

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Above: A capacity WarRoom audience listensexpressively.

Left (superimposed):Whitney Sielaff.

Left: The DiamondProduction panel.

Right: Branding War Room moderatorWhitney Sielaff and panelists Al Molina,

Sheldon David, Liz Chatelain, StevenLagos, Esther Fortunoff, Glenn Rothman,Scott Kay, and Eli Haas pose with former

Marine Jackie “Spyder” Lockhart.

Below: Garry Holloway argues his point atthe Diamond Cut War Room.

Left: Russell Shor asks a question from the floor.

Michael DeBurgh adds his voice to the Brand-ing War Room, as Daniel Sauer looks on.

Thomas Gübelin, during the Leadership Role ofFine Jewelry panel.

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Left: The San DiegoNatural History Museum,site of the “Nature ofDiamonds” exhibit and the“Diamonds—The NewMillennium” gala event.

Below: Sheryl Cashmore,Elise Misiorowski, HertzHasenfeld, Sally Ehmke,and Al Levinson.

Above: JamesRothwell, presi-

dent of BHPDiamonds;

Chuck Fipke,chairman and

founder of DiaMet Minerals;

and Jim Eccott,president of DiaMet Minerals.

Performance by the Delta Drummers, a nativedance troupe from the Northwest Territories.

Center: Symposium Manager Carol Moffatt;Directly above: Jim Eccott extends his welcometo “Diamonds—The New Millennium.”

Below: BenJanowski and

WilliamGoldberg.

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Above: Laurie Hudson welcomes attendees to the Platinum Breakfast;Henry Kennedy presents his poster on “Publicity and Profits.”

Directly above:“White Hot Platinum: The Metal of the Millennium.”

The Platinum Dancers.

Below: Zlata and Jules Sauer;Dona Dirlam and John Sinkankas;and Kurt and Julia Nassau withEric Wong.

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Bill Boyajian and TomYonelunas update the trade onGE-processed diamonds.

Disclosure War Room: MaryJohnson, Cheryl Kremkow, George

Rossman, Nanette Forester,Francesco Roberto, Roland Naftule,Cecilia Gardner, Esther Fortunoff,

and Jeffrey Fischer.

The Alumni Internet Caféwas a popular attraction.

George Harlow signs a copyof Nature of Diamondsfor Kevin Castro.

Carole Johnson and Cassidy Kennedy at the

Gems & Gemology booth.

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GIA students Holly Rice, MichelleOrlik, Fumiyo Ishida, and Jessica Boleat the Pearl Reception.

Above: Kathryn Kimmel, Gabrièl Mattice, Cindy Edelstein, and Cheryl Kremkow.

Directly above: Runway models display the elegance of pearls at the “Pearl Fashion Preview.”Above: Fran Mastoloni and Frank Mastoloni.

Directly above: Elvira Cornell and Varujan Arslanyan.

Akoya, Tahitian, and South Sea pearl fashions were ondisplay at “Of Future Days: A Pearl Fashion Preview.”

Below: Cuixia Mi and Robert Wan.

GEMS & GEMOLOGY FALL 1999 29

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Top left: WendyDavis and TerriOttaway at the“Arte in Oro”

reception.

Contemporary Italianjewelry designers

weave time-honoredartistic traditions

with innovative tech-niques to create theclassics of tomorrow.

“Arte in Oro,” Symposium’s final social event, showcased jewelry by Italy’s leading designers.

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Italy’s rich artistic heritage—extending fromthe Middle Ages through the Renaissance

and the Baroque era—came to life at“Arte in Oro.”

Above: Richard T. Liddicoat and E-Mae Bradbury enjoy the show.

Below: Bill Boyajian, VicenzaTrade Fair Board PresidentGiovanni Lasagna, RalphDestino, Vicenza Trade FairBoard Executive Director AndreaTurcato, and soprano PamelaHicks.

Lower Left: Lynn Ramsey, GaryGordon, and Italian JewelryGuild President Robyn Lewis.

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Clockwise from middle left: Gemology greats RichardT. Liddicoat and Robert Crowningshield; DonaldTapscott describes how the Internet will change theway the jewelry industry does business; according tomarketing expert Al Ries, “If you want to build apowerful brand in the mind of consumers, you needto contract your brand, not expand it.” Center:Maurice Tempelsman delivers the valedictory presentation.

Rushworth Kidderurges gem and jewel-ry professionals tosupport ethics: “Thequestion is: Will weself-regulate, or haveregulation imposedon us?”

Noted economist Arthur Lafferpresents his economic forecast forthe new century.

Top left: BillBoyajian withMaurice Tempelsmanat the ClosingCeremony.

Top right: BertKrashes and GlennNord during the“Gemology Greats”session.

32 SYMPOSIUM PROCEEDINGS ISSUE

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SessionsDIAMOND SOURCESModerator: John I. Koivula Coordinators: Thomas Gelb and Maha DeMaggio

DIAMOND MANUFACTURING AND DISTRIBUTIONModerator: Thomas C. Yonelunas Coordinators: Kelly Shanley and Mark Van Daele

DIAMOND ECONOMICSModerator: John M. KingCoordinators: Scott Guhin and Jonathan Cohen

PERSPECTIVES ON THE DIAMOND MARKETModerator: Alice S. KellerCoordinators: Marla Belbel and Daniel Gillen

COLORED STONE SOURCESModerator: Brendan M. Laurs Coordinator: Jana Miyahira-Smith and Michael Wobby

COLORED STONE DISTRIBUTION AND MARKETINGModerator: Wendi M. MayersonCoordinators: Philip York and Duncan Pay

PEARLS —THE SOURCESModerator: Wendy F. GrahamCoordinators: Karin Hurwit and Clara Zink

GEM IDENTIFICATIONModerator: Thomas M. MosesCoordinators: Dino DeGhionno and Troy Blodgett

TREATMENTSModerator: Mary L. JohnsonCoordinators: Ronnie Geurts and Stuart Overlin

TIMELESSNESS OF ANTIQUE AND ESTATE JEWELRYModerator: Veronica Clark-HudsonCoordinators: Rebekah Nichols and Laura Small

ORIGINAL AND TREND-SETTING JEWELRY DESIGNModerator: Susan B. JohnsonCoordinators: Steve Workman and Corrine Perez-Garcia

RETAILING IN THE NEW MILLENNIUMModerator: Harry W. StubbertCoordinators: William Herberts and Roxana Lucas

Abstracts ofFeature

Presentations34

44

50

55

60

68

73

80

88

97

103

107

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34 SYMPOSIUM PROCEEDINGS ISSUE

NALYSIS OF HISTORICAL RECORDS (e.g.,Levinson et al., 1992) reveals that Africa

has been the source of about 70% byweight of the global total of about 3.5 billion carats(700 metric tons) of diamonds produced since antiq-uity, chiefly from primary kimberlite deposits but alsowith substantial high-value contributions from sec-ondary sources, mainly alluvials. All the significantkimberlite mines have been found within the stableArchean (>2.5 By [billion years]) cratonic nuclei ofthe continent (Janse, 1996). The major alluvial fieldsare on, or adjacent to, these geologic structures; arederived from them by secondary surficial processes;and have been a declining influence in recent times.Moving away into peripheral Early Proterozoic rocks(between 1.6 and 2.5 By), there is much less chanceof finding an economic primary diamond source.Current knowledge of diamond formation processesin the earth’s mantle predicts that the likelihood offinding economic kimberlite pipes off cratons isextremely low. This rules out large areas of theAfrican continent from hosting an as-yet-undiscov-ered primary diamond source, as can be seen from thefigure shown here (reprinted from Janse, 1996).

Some geologically favorable terrain for primarydiamond sources occurs within countries that are, tovarying degrees, unsafe places to operate and particu-larly unsafe to explore. Two of these, Angola andZaire, are currently producing diamonds under con-ditions of civil war. Nevertheless, they have beenimportant diamond producers from secondarydeposits for many decades, and they have high poten-tial for further discoveries of new primary deposits.Indeed, De Beers announced four new discoveries inLunda Norte Province, Angola, during 1998.Extensive exploration in certain other cratonicsources, such as North Lesotho, indicates that the dis-covery of a major kimberlite pipe is unlikely.

Current ProductionAfrica currently produces 51.8 Mct (million carats) ofrough diamonds annually, or 46% of the world totalby weight, which rises to at least 72% by value. Thejewel in the crown is Jwaneng (in Botswana), themost profitable mine in the world; Jwaneng’s 1997production of 12.7 Mct represented 21% of worlddiamond production by value (Picton and Newton,1998).

All the major De Beers mines, which produced31.3 Mct in 1998, have projected lives of more than10 years, and the most important of these—Jwaneng,Orapa, Venetia, Premier, and Finsch—are expectedto produce for more than 20 years. Orapa is sched-uled to double production by year 2000 to about 12.5Mct, and improved mining and recovery operationsare being implemented at Jwaneng, Venetia, Finsch,and in the Kimberley mines, as well as on the westcoast of southern Africa.

In the South Atlantic Ocean, De Beers Marineand Namdeb have a well-established, profitable min-ing operation that produces more than 500,000 high-value carats per year at present. Continuing explo-ration, coupled with high-technology improvementsto their mining operations, suggests increasing pro-duction and a long life for this operation. Spectacularrecent successes for the NamSSol underwater crawlerof Namco in Namibia, and the prospecting results ofDiamond Fields International, further expand the evi-dence for the existence of a major resource of gemdiamonds in the sea off western southern Africa, par-ticularly Namibia. This will more than offset thedepletion of high-level beach deposits and river allu-vials on land.

Changes and New Developments in AfricaJohn J. Gurney

University of Cape TownRondebosch, South Africa

Diamond SourcesDiamond Sources

E-mail address: [email protected]

A

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To date, economic kimberlites have been found only on those parts of cratons known as archons. This map of Africa showsthe distribution of cratons (outlined in green) and archons (outlined in red). Solid red dots and red letters are pipes and dikes,green striped areas and green letters are alluvial deposits (note that some areas contain both green stripes and red dots), andthe red-striped area marks the beach and off-shore deposits in Namibia and Namaqualand. Key to large, openred letters: B–Bangweulo archon; CA–Central African craton; G–Gabon archon; KA–Kalahari archon; LK–Lunda-Kasai archon; M–Man archon; R–Reguibat archon; SA–South African craton; T–Tanzania archon; WA–West Africancraton. Key to solid red and green letters: A–Akwatia/Birim alluvials; B–Banankoro alluvials and pipes; Bf–BuffelsRiver alluvials; Cb–Carnot/Berbérati alluvials; Cu–Cuango alluvials and pipes; Do–Dokolwayo pipe; F –Finsch pipe;G–Gope pipe; J–Jwaneng pipe; Ja–Jagersfontein pipe; K–Koidu pipes and dikes; Kb–Kimberley pipes (5);Ko–Koffiefontein pipe; L–Letlhakane pipe; Le–Letseng pipe; Li–Lichtenburg alluvials; Lo–Lower Orange River alluvials;Lu–Lunda pipes and alluvials; M–Mitzic kimberlites; Mb–Mbuji-Mayi pipes, eluvials and alluvials; Mo –MoukaOuadda alluvials; Mw –Mwadui pipe; O –Orapa pipe; P–Premier pipe; R–River Ranch pipe; Rg –Reggane alluvials;S–Séguéla alluvials and dikes; St–star fissure; T–Tortiya alluvials; Ts–Tshikapa alluvials; V–Venetia pipe;Vo–Vaal/Orange Rivers alluvials; Ye–Yengema alluvials. (Reprinted with permission from Janse, 1996.)

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36 SYMPOSIUM PROCEEDINGS ISSUE

Future ProductionReviewing this situation, it appears that African dia-mond production will increase to more than 60 Mctper year in the foreseeable future.

In the medium term (5–12 years), additional pro-duction may come from the development of miningoperations on some of the many known kimberlitesin Angola, following the model of Catoca (66 ha,with 1.17 ct/tonne; Gordon, 1997). Camafuca-Camazambo (160 ha) and Camatue (12 ha) are twogood examples among many. Gope 25 in Botswanamay be developed by De Beers/Falconbridge. Anumber of small potential mines are in the feasibili-ty stage at present (e.g., Klipspringer, The Oaks,Palmietgat, Crown mine, and Voorspoed in SouthAfrica; and Tshwapong in Botswana). These reflecta growing interest in the mining of smallerdeposits, especially where—as with Marsfontein(SouthernEra/De Beers)—they have high ore grades.Marsfontein (0.4 ha) produced 1 Mct in its first yearof operation.

The Kalahari craton (again, see figure) is an excel-lent example of a comprehensively explored cratonwhere significant discoveries (Finsch, Orapa,Jwaneng, Venetia, Klipspringer, Marsfontein) havebeen made in each of the last four decades. It is rea-sonable to expect further discoveries, especially inareas with extensive recent geologic cover where hid-den ore bodies have proved elusive in the past. Thesewill be accomplished by creative use of modern

prospecting methods applied by the growing body oftechnologically astute exploration companies.

In this context, the early-stage grass roots prospect-ing activities of Rex Diamonds and Ashton/Diamet inMauritania are examples of the sort of explorationprograms that could contribute to keeping Africa atthe forefront of diamond production in the longerterm.

In any event, Africa’s premier position is assuredwell into the next millennium. It has been indepen-dently estimated that by 2005 African production willbe 63 Mct out of a world total of 119 million carats,representing 66% of world value at an average priceof US$97/ct and a total value of $6.1 billion (Pictonand Newton, 1998). African production by countryin 2005 is estimated to be: Botswana 26 Mct, SouthAfrica 14 Mct, DR Congo 14 Mct, Angola 5 Mct,Namibia 2 Mct, rest of Africa 2 Mct.

RE F E R E N C E S

Gordon C. (1997) Angola’s first kimberlite mine. DiamondInternational, No. 47 (May/June), pp. 67, 68, 71, 72.

Janse A.J.A. (1996) A history of diamond sources in Africa:Part II. Gems & Gemology, Vol. 32, No. 1, pp. 2–30.

Levinson A.A., Gurney J.J., Kirkley M.B. (1992) Diamondsources and production: Past, present and future. Gems & Gemology, Vol. 28, No. 4, pp. 234–254.

Picton J., Newton C. (1998). De Beers/Centenary and theGlobal Diamond Industry. Standard Equities, 104 pp.[www.equities.co.za].

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GEMS & GEMOLOGY FALL 1999 37

Diamonds from AustraliaA. J. A. (Bram) JanseConsultant Geologist

Perth, Australia

HE DISCOVERY of the Argyle diamonddeposit in 1979, and its exploitation since

1986, brought extensive changes to the dia-mond industry from four key perspectives: geological,mineralogical, gemological, and commercial. In 1980,for the first time in the known history of diamondmining, economic quantities of diamonds were foundin an Early Proterozoic mobile belt instead of, as forall previous discoveries, the Archean core of a craton.Until 1980, it was thought that diamondiferous kim-berlites (and, by inference, any other primary hostrock for diamonds) occurred only in the interior ofold cratons—that is, parts of the earth’s crust olderthan 1,600 million years (My) that are stable, rigid,and have not been deformed (known as Clifford’sRule; Clifford, 1966). Janse (1994) elaborated onClifford’s Rule by stating that economic kimberlitesoccurred only on an Archon—that part of a cratonthat is underlain by basement rock of Archean age,older than 2,500 My. In the Kimberley region ofWestern Australia (see figure), the economic Argylelamproite and the near-economic lamproites atEllendale occur not in a stable Archean block, butrather in the Early Proterozoic Halls Creek and KingLeopold mobile belts, which are older than 1,800My, and surround the stable Archean KimberleyPlateau block.

For more than 100 years, up until 1980, it wasthought that the only primary host rock for diamondswas kimberlite (excluding a few diamonds of meteorit-ic origin and their problematic occurrence in somerocks of dubious origin). However, the diamonds atArgyle occur in lamproite, a rare rock that had beenknown as an academic curiosity since it was named bySwiss Professor Paul Niggli in 1923. Like kimberlite,lamproite forms breccias that range from bluish greento pale yellow. These breccias are also ultrabasic-to-basic rocks (i.e., poor in silica and thus containing

much olivine); as is the case with kimberlite, they alsocontain alkalis, mainly potassium and sodium, inamounts much higher than in other ultrabasic-to-basicrocks. In most alkaline rocks, sodium is predominantover potassium, but the reverse is true for kimberliteand lamproite. In 1980, however, no one had expectedto find economic quantities of diamonds in a nonkim-berlitic rock, so at first exploration geologists referredto the Argyle diamond host rock as “kimberlitic.”

The Argyle DepositThe 50 ha (124 acres) Argyle pipe produces mainlysmall (average size 12 points), predominantly browndiamonds of irregular shape; only 5% are true gemquality. Mining began in 1985, with almost 30 Mct(million carats) produced the following year (seetable). The great commercial problem of how toabsorb this large volume of diamonds into the worldmarkets was the reason the majority owners of theArgyle Diamond Mines Joint Venture (CRA [nowRio Tinto] about 57% and Ashton Mining 38%)negotiated two five-year sales contracts with the DeBeers CSO that covered mid-1986 to mid-1996.From the beginning of production, the 5% minorityowner, Northern Mining (later the Western AustralianDiamond Trust, which was absorbed into ArgyleDiamond Mines in early 1989) sold its share directly tothe market. Since mid-1996, all Argyle diamonds havebeen sold to the market outside of the CSO.

Eventually it was discovered that about 40% of the95% non-gem diamonds at Argyle could be cut eco-nomically in India into inexpensive, low-qualitystones. Thus, the production from the Argyle minebecame 5% gem, 40% near-gem, and 55% industrialgrade. Approximately 700,000 people, about 25% ofwhom work full time, are currently involved in theIndian cutting industry and cut most of the Argylemine production (Sevdermish et al., 1998).

T

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38 SYMPOSIUM PROCEEDINGS ISSUE

Diamonds have been discov-ered in several areas ofAustralia— in lamproites,kimberlites, and alluvialdeposits. Most of thedeposits, including the high-ly productive Argyle mine,are located in WesternAustralia, in what is knownas the Kimberley region.

Argyle, with its associated alluvials, is the onlymajor Australian diamond producer. For eight years,from 1988 to 1995, Bow River Diamond Mines(owned by Normany-Poseidon) mined a small alluvialdeposit in Lower Limestone Creek, 20 km down-stream from the Argyle pipe, and produced roughly 7Mct (again, see table) of a quality three times higherthan that of the Argyle diamonds: $25 per carat com-pared to $8 per carat. Thus, the great majority ofAustralian diamonds are produced by Argyle. Presentore reserves will last until the end of 2003. Deepeningof the open pit now in progress has assured that themine will remain active until the end of 2005, while aplanned additional underground operation mayextend life until 2009.

Other Deposits in Western AustraliaDiamonds have been found in stream sediments of theOrd River as far as Kununurra, up to 150 km down-stream from Argyle, and some have reached the sea.However, it is not clear where the paleo-Ord Riverthat would have drained the Argyle pipe during theTertiary period had its outlet. Compared to the

straight and periodically stable coast of South Africaand Namibia, the coast of the Kimberley region andadjoining Northern Territory is flat and indented fromever-changing river courses. Consequently, it isunlikely that large concentrations of diamonds existoffshore along Australia’s northwest coast.

In contrast to the large Argyle lamproite, which islocated in the Early Proterozoic Halls Creek mobilebelt, small kimberlite dikes and pipes have been foundin the northern part of the Archean KimberleyPlateau. Striker Resources is presently evaluating the4-km-long Bulgurri kimberlite dike system and thefour small Ashmore pipes. Both of these propertiescontain sharp-edged, flat-faced, colorless, inclusion-freeoctahedra and have promising economic potential.

The 20 ha (49 acres) Aries kimberlite pipe, thelargest kimberlite pipe discovered in Australia so far,was found in the more interior part of the KimberleyPlateau. (Although the pipe is large and the diamondsfound to date have been good quality—mainly color-less dodecahedra, reportedly valued at $150 percarat—the ore grade is too low to make it an eco-nomic deposit.)

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GEMS & GEMOLOGY FALL 1999 39

Other Diamond Producing Areas of Australia

Alluvial diamonds were found as early as 1851 insoutheastern Australia in a region that is far outsideany cratonic parts of the crust. In fact, it is in aPaleozoic orogenic belt. The origin of these diamondsis still an enigma. The largest concentration of dia-monds was found near Copeton in New SouthWales. Attempts to establish an economic productionfrom this and other smaller deposits in the regionwere made in the last century, and again in the 1990s,but without commercial success. The Copeton dia-mond crystals are often complexly twinned; theresulting “naats” (seams) are often difficult to see andcause problems in cutting. Consequently, the termcannifare (“cannot make”) is often applied to theCopeton stones. Total alluvial production from the1860s to the 1920s amounted to about 300,000 carats.Small deposits of alluvial diamonds, and kimberliteswith a trace of diamonds, have been found in manyother places throughout Australia, but none hasproved economically significant.

At present, the only producing diamond mineother than Argyle is Merlin, located in the NorthernTerritory. It was discovered by Ashton Mining in

1994, and brought into production in February 1999.As is the case with the Ekati mine in Canada’sNorthwest Territories, Merlin draws ore from four toseven small kimberlite pipes and produces diamondsof very good quality, reportedly $130 per carat. In thefirst batch produced, a good-quality diamond of14.76 ct was recovered, and several stones of this sizeand quality have been found since.

REFERENCES

Clifford T.N. (1966) Tectono-metallogenic units and met-allogenic provinces of Africa. Earth and Planetary ScienceLetters, Vol. 1, pp. 421–434.

Janse A.J.A. (1994) Is Clifford’s Rule still valid? Affirmativeexamples from around the world. In H.O.A. Meyer and O.Leonardos, Eds., Diamonds: Characterization, Genesis andExploration, Vol. 2, Proceedings of the Fifth InternationalKimberlite Conference, Araxá, Brazil, 1991, Companhiade Pesquisa de Recursos Minerais (CPRM), SpecialPublication 1/B, Rio de Janeiro, pp. 215–235.

Sevdermish M., Miciak A.R., Levinson A.A. (1998) Therise to prominence of the modern diamond cuttingindustry in India. Gems & Gemology, Vol. 34, No. 1,pp. 4–23.

Annual diamond production of Australia, 1983–1998.

Australia, as a %Argylea Bow Rivera of world production

Year Alluvial Alluvial Pipe Pipe Total Alluvial Alluvial By weight By value production grade production grade production production grade

(Mct)b (ct/tonne) (Mct) (ct/tonne) (Mct) (Mct) (ct/tonne)

1983 6.2 5.8 NPc NP 6.2 NP NP 6.2 11 21984 5.7 3.9 NP NP 5.7 NP NP 5.7 9 21985 5.4 4.7 1.7d 5.0 7.1 NP NP 7.1 11 21986 NP NP 29.2 9.1 29.2 NP NP 29.2 32 61987 NP NP 30.3 8.7 30.3 NP NP 30.3 33 61988 NP NP 34.6 7.3 34.6 0.5 0.3 35.1 35 71989 1.6 1.4 32.8 6.7 34.4 0.7 0.3 35.1 33 61990 2.1 1.1 31.7 6.1 33.8 0.9 0.3 34.7 32 61991 1.6 1.2 33.4 5.6 35.0 1.0 0.3 36.0 35 71992 2.4 0.7 36.6 5.4 39.0 1.2 0.3 40.2 40 61993 2.5 0.7 38.4 5.8 40.9 1.0 0.3 41.9 41 61994 3.1 0.7 39.7 5.0 42.8 1.0 0.2 43.8 41 61995 2.4 0.5 37.5 4.2 39.9 0.5 0.2 40.4 37 51996 2.6 0.4 39.4 3.9 42.0 NP NP 42.0 35 51997 1.6 0.3 38.6 3.7 40.2 NP NP 40.2 35 41998 1.9 0.3 40.0 3.5 40.9 NP NP 40.9 35 4

aData from annual reports of Ashton Mining Ltd. and from Bow River Mines management.bMct = Millions of carats.cNP = No production reported for the year from this source.dProduction at the Argyle pipe began in December 1985; 1.7 Mct was one month’s production.

TotalAustralianproduction

(Mct)

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40 SYMPOSIUM PROCEEDINGS ISSUE

HE ANNOUNCEMENT earlier this decadethat diamonds had been found in the

Northwest Territories presented a whole newchallenge to the Canadian government. For the mostpart, provincial governments have jurisdiction over nat-ural resources in Canada. However, the three northernterritorial governments — the Yukon, the NorthwestTerritories, and the new territory of Nunavut—do not.Consequently, the government of Canada has beendeeply immersed in the development of this country’sfirst diamond mine and its new diamond industry. Earlyresearch revealed important issues—such as the needfor environmental reviews, the political climate in thenorth, and the structure of the northern miningindustry— that were different from those in other dia-mond-producing countries. Therefore, the governmenthad few precedents to follow in its mandate to ensurethe smooth development of this complex industry.

Since fall 1998, however, the first Canadian dia-mond mine — the Ekati mine — has been in produc-tion, and it is likely that additional mines will be devel-oped. As a result, Canada could soon be producingmore than 10% of the world’s diamonds by value. Thisreview looks at the Canadian government’s response tothis new industry, including government attempts toattract value-added operations to the NorthwestTerritories.

Canada’s North and Its Diamond MinesCanada’s Arctic region is an enigma to most peo-ple — including the majority of Canadians. It makesup one-third of the country’s landmass, but it hasonly a tiny fraction (<100,000 people, or 0.003%) ofits population. Only 800 km south of the North Poleat its northernmost point, it stretches across threetime zones and touches two oceans (see map). Con-sequently, it is a difficult and expensive area both toreach and to work.

Few took Canadian geologist Charles Fipke veryseriously in the early 1980s, when he first startedprospecting for diamonds in this cold, barren region.But like the adventurers who opened up theKlondike a century before and became millionaires,Fipke eventually became very very wealthy followinghis 1991 discovery of a number of kimberlite pipes inthe area near Lac de Gras.

It is not the purpose of this presentation to dwellon the history of the discovery of diamond deposits inCanada, as this topic has been discussed in great detailelsewhere. Suffice it to say that during the period1991–1998, more than 250 kimberlite occurrenceswere discovered in the Slave Geological Province inthe Northwest Territories, and exploration for addi-tional diamond deposits continues unabated.Although diamond-bearing kimberlite pipes havebeen found in several other provinces and territories(i.e., Quebec, Ontario, Saskatchewan, Alberta, BritishColumbia, and Nunavut), the principal cluster of eco-nomically viable pipes found to date occurs in the Lacde Gras area, the site of the Ekati diamond mine,which is owned by BHP Diamonds Inc. (51%), DiaMet Minerals Ltd. (29%), Charles E. Fipke (10%), andStewart L. Blusson (10%).

The Ekati mine alone has a resource of 66 milliontonnes at 1.07 ct/t, with an average value of US$100per carat (see “Diamond production starts at Canada’sEkati mine,” Gem News, Winter 1998 Gems &Gemology, pp. 290–292, for further details). FromOctober 1998 to June 1999, the mine produced inexcess of 1 Mct (million carats). It is expected to pro-duce about 3 to 4 Mct a year for at least 17 years.And, as they say in the Arctic, that’s only the tip ofthe iceberg. Other diamond projects in the evaluationor development stage include Diavik, Snap Lake, and

Canadian Diamond Production:A Government Perspective

Douglas PagetCanada Department of Indian Affairs and Northern Development

Hull, Quebec, Canada

T

E-mail address: [email protected]

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GEMS & GEMOLOGY FALL 1999 41

Kennady Lake in the Northwest Territories, andJericho in Nunavut. At least six different companiesare involved.

Exploration and Mining DifferencesDiamond exploration and mining in Canada are verydifferent from most other countries. Not only is theclimate harsh (winter temperatures of −40ºC arecommon), but there is also very little infrastructure, soall materials are moved to the projects via winter iceroads. In addition, glaciers have resulted in diamondindicator minerals being dispersed for great distances,the kimberlites being covered with glacial deposits(e.g., till) in some places, and in most cases the occur-rence of kimberlites under lakes (because the glacierspreferentially eroded the kimberlite pipes, resulting indepressions that are now filled with water). Last, mostof the pipes found to date in the NorthwestTerritories have a small surface expression—typicallyless than 2 ha (~ 5 acres)—which makes them moredifficult to locate (thus requiring modern geophysicalexploration methods). By comparison, for example,the Orapa mine in Botswana extends over 100 ha. IfCanadian diamonds are more difficult to reach, theyare definitely worth the effort because of their highquality, with up to 30% gems in the pipes slated forproduction thus far.

Business ClimateDoing business in Canada’s North is also differentfrom anywhere else in the country, and perhaps theworld. A large proportion of the population in the

Arctic region is aboriginal. Many of the First Nationslocated in the Northwest Territories are activelyinvolved in land claim settlements and self-govern-ment agreements, which give them decision-makingpowers over land use and resource development.

The three northern territories enjoy a special rela-tionship with the government of Canada, a relation-ship managed by the Department of Indian Affairsand Northern Development (DIAND). DIAND is akey player in the North. Three of its key objectivesare to:

• Foster the political development of the North

• Promote sustainable development• Strengthen Canada’s international presence

among circumpolar nations

Although these complex issues will not be dis-cussed here, one recent event—the establishment ofthe territory of Nunavut—deserves mention. Itdemonstrates the approach Canada is taking withrespect to the political and economic development ofthe North.

NunavutOn April 1, 1999, the map of Canada was redrawnwith the creation of Nunavut—a vast new territory inthe Eastern Arctic (again, see figure), which is populat-ed by about 25,000 people of whom 85% are Inuit. Inpartnership with their non-aboriginal neighbors, theywill run a public government for all of the Nunavut

This map shows theprovinces and territories

(Yukon, NorthwestTerritories, and Nunavut)

of Canada. The Ekati dia-mond mine, as well as mostof the potentially economic

kimberlites found to thispoint, are in the Slave

Geological Province.

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42 SYMPOSIUM PROCEEDINGS ISSUE

residents, one that will clearly reflect the culturalmakeup of the territory. Inuktitut, the aboriginal lan-guage, will be the working language of the govern-ment, and many of its programs and policies willreflect their traditional knowledge and customs.

Like all Canadians, Northerners want and needjobs and business opportunities. They want and needan economy that will support them and their chil-dren. They want and need sustainable developmentthat addresses both the economic and cultural healthof aboriginal communities, where the populationgrowth is double the Canadian average. However,they are not prepared to risk the health of the envi-ronment, their own physical health, or their cen-turies-old traditions for the sake of a mine that maynot last longer than 20 years. This notion of sustain-able, responsible development is more and moreshaping the government’s view of mineral develop-ment in the North.

Environmental Assessment and theEngagement of First NationsThe proposal to develop the Ekati diamond mine trig-gered the most rigorous environmental assessment of amining project ever in Canada. Working together aspartners, the governments, mining industry, aboriginalcommunities, and public built on the findings of apublic panel to negotiate a mine-specific regulatoryregime and benefits package that meets the needs ofNortherners in general, and aboriginal people in par-ticular. The final arrangement included:

• An environmental agreement betweenBHP Diamonds Inc. and both the federaland territorial governments

• Impact and benefit agreements that commitBHP Diamonds Inc. to provide jobs, busi-ness opportunities, training, and annualcash payments to the communities over thelife of the mine

• A socioeconomic agreement, to ensure thatthe benefits of diamond developmentextend to all residents of Canada’s North

• A water license, an action that is commonto every mine

• Six land leases that provide an enforcementmechanism for certain obligations in theagreement

Another innovative aspect of this agreement wasthe creation of an independent monitoring agency toensure compliance by Ekati Diamond Mines and thegovernments in meeting their obligations related toenvironmental management and reporting activities.Aboriginal people play a key role in the agency, andappointed four of the seven members.

Today, the Ekati mine is up and running. About700 people are employed, and a stream of social ben-efits is flowing into the North at an increasing pace.

Diamond ManufacturingThrough an agreement between Ekati DiamondMines and the government of the NorthwestTerritories, roughly 3% by weight, but 10% by value,of rough diamonds from the Ekati mine are availablefor local manufacturing in the North. The territorialgovernment, backed by the federal government, isfinding ways to establish local cutting and polishingoperations. For example, the government of theNorthwest Territories has attracted Sirius DiamondsLtd. of Victoria, British Columbia, by providingtesting equipment and other assistance. Other manu-facturers are expected to follow. Jewelry making isthe next logical step in the development of value-added diamond industries in Canada’s North, andways to create other such opportunities are beingexamined.

ConclusionThis snapshot of Canada’s diamond industry is, admit-tedly, intended to stimulate interest in mining oppor-tunities in Canada. When you consider the North’simmense diamond potential, Canada’s mineral rightsdisposition and tenure system (which promotesexploration and mineral development), a reasonabletax regime, as well as the technical expertise available,you cannot help but conclude that Canada’s North isa good place to do business. With this excellentexploration and mining environment, it is inevitablethat Canada will play a major role in the diamondindustry in the next millennium.

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GEMS & GEMOLOGY FALL 1999 43

HE HISTORY OF DIAMOND productionin Russia began in 1829 with the discovery

of alluvial diamond deposits in the northernUral Mountains (see location “U” on the inset map).However, it was not until 1954 that the first kimber-lites were discovered, in the Siberian craton of theRepublic of Sakha (formerly Yakutia), as predicted byProfessor Vladimir S. Sobolev in the late 1930s.Professor Sobolev’s prediction was based on the manygeologic similarities between the South African and theSiberian cratons, including past magmatic activities.

The vast Siberian craton, in which more than 800kimberlite bodies have been identified to date, coversmore than 2,000,000 km2. The boundaries of theSiberian craton are shown on the main map, as aremajor kimberlite fields 1, 2, and 3, in which at least 10high-grade kimberlite pipes are currently being mined.Also indicated on the map (as no. 4) is the new Nakynkimberlite field, which contains the recently discov-ered (in 1994) Botuobinskaya kimberlite.

Approximately 98% of all diamonds mined inRussia come from Sakha, with the remaining 2%recovered from placers in the Ural Mountains.Within Sakha, 90% of the diamonds are mined fromseveral Devonian age (345–362 My) kimberlite pipes.The main ones are Mir, Internationalaya, Aikhal,Sytykanskaya, Udachnaya, Jubileynaya, and Botuo-binskaya. Ten percent of the production is from theAnabar placers at the Ebelyakh River. Several pipes inthe Muna field (no. 5 in the figure) are being preparedfor mining early in the next millennium. Whereasopen-pit mining has been the mainstay of the Russiandiamond industry since its inception, plans are beingmade for the first underground mine, at theInternationalaya pipe, and another later at the Mirpipe; both are in the Malaya Botuobiya craton (seemap).

In the northern part of European Russia, theArkhangelsk diamondiferous province on the EastEuropean (Russian) craton is being evaluated for itseconomic potential (see location “A” on the insetmap). Since this province was discovered in the late1970s, several high-grade kimberlite pipes have beenidentified. It is likely that the Lomonossov kimberlitepipe will be the first to be developed, with productionplanned to begin early in the next century.

Russian Diamond SourcesN.V. Sobolev

Institute of Mineralogy and PetrographyRussian Academy of Sciences, Siberian Branch, Novosibirsk, Russia

T

On the inset map of Russia, the "U" represents thelocation of the first discovery of alluvial diamonds in theUral Mountains and “A” represents the Arkhangelskkimberlite field, which was first discovered in the 1970sand is expected to begin production early in the nextcentury. The most important diamond-producing areasin the Sakha region of Siberia are shown on the largermap. In Sakha, the Siberian craton hosts the followingdiamondiferous kimberlite fields: (1) MalayaBotuobiya, (2) Alakit, (3) Daldyn, (4) Nakyn, and(5) Muna. The location of the Anabar placers of theEbelyakh River is also shown (6).

E-mail address: [email protected]

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44 SYMPOSIUM PROCEEDINGS ISSUE

DiamondManufacturing

DiamondManufacturing

ew York’s Position in theCurrent World Diamond Market

From its beginnings in the late 1800s, NewYork’s diamond industry has continued to grow andprosper as one of the most important of the world’scutting centers. Supported by skilled craftsmen trainedin Europe, augmented by a well-apprenticed laborforce, compelled by high wage and labor standards inthe New World, and fueled by aggressive productmarketing, New York gained its foothold by supply-ing larger, well-made diamonds to the growingAmerican—and international—consumer market.Today, with some 400 skilled cutters and approxi-mately 2,000 diamond merchants—concentrated in asingle square mile in midtown Manhattan—NewYork continues in a dominant international role. Yetit faces critical decisions as to how it will maintainthat role in the future.

New York shares the title of “World CuttingCenter” with Belgium, Israel, Asia (including theemerging China), and, of course, India. When thesefive centers are measured in terms of number of cut-ters, New York is by far the smallest. New York’sposition, however, is maintained by the types ofgoods it cuts, the quality of the cutting, and the sig-nificance of the primary market it serves—the U.S.retail jewelry industry.

From the onset, New York has had higher laborcosts than other cutting centers (with the possibleexception of Belgium), so its production had to be ingoods appropriate to this situation. New York gainedits reputation by cutting medium-to-larger goods withfine make, and such goods remain its strength today—well-cut rounds and fancies, usually 0.50 ct and above.

New York is also an important trading center. In1998, over 97% of American diamond imports camethrough New York. The more than $6 billion inannual imports are distributed to other cutters, towholesalers who are not sightholders, and to the

largest concentration of retail jewelers in the world—numbering some 40,000—from major chain stores tohigh-end specialty retailers. New York also distributesto wholesalers and retailers worldwide.

Having reached more than $22 billion in retailjewelry sales in 1998, the U.S. jewelry marketanchors New York as a significant player. With over60% of the typical retailer’s annual sales being in dia-monds or diamond jewelry, the U.S. retail marketrepresented 36% of world diamond sales by value (seefigure) and at least half of the world’s total diamondconsumption by weight. The types of diamond goodsproduced in New York accounted for over half ofU.S. total consumption by weight.

Because of the significance of the U.S. retail mar-ket, the U.S. consumer drives diamond productiontrends. Today’s consumer seeks higher-quality centerstones, and there is an increasing awareness anddemand for “Ideal” and premium-cut diamonds. Theuse of laboratory certificates in retail selling is increas-ing, with more emphasis being placed on cut quality.

Challenges Facing theNew York Diamond MarketTo maintain its current status in the world diamondmarket, New York must address the following chal-lenges:

1. Spot shortages2. Labor costs3. Globalization4. Competition for high-end cutting

Spot Shortages. The polished diamond market of 1999has proved to be an interesting conundrum.Weakness in demand for small sizes (i.e., up to 1 ct) iscounterbalanced by extreme shortages in the 1.25+ ct

The New York Diamond MarketHertz HasenfeldHasenfeld-Stein

New York

E-mail address: [email protected]

N

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GEMS & GEMOLOGY FALL 1999 45

categories. Certain sizes, such as 1.70s and 2.50s, havevirtually vanished.

The underlying reason for this situation is that thesupply line for much of the “outside” rough in recentyears, which originated in Russia and Angola, has vir-tually disappeared. Most of the rough in today’s mar-ket comes from traditional (and legal) channels. DeBeers has regained firm control of the rough markets,especially in the larger sizes. In fact, at the most recentsights, premiums on boxes of larger-size rough were8%–15, numbers that were unheard of in recentyears. New York, as the first line of defense for theretail jeweler, must continue to procure the difficultsizes. Otherwise, jewelers will turn to Antwerp andIsrael in hopes of finding such goods.

Labor Costs. Over the past three decades, Israel andIndia have emerged as important cutting centers. Atthe same time, we have seen centers such as HongKong and Thailand fade almost as quickly as theyemerged. While the cheapest goods will continue tobe cut in various developing nations around the globe,New York must focus its industry on cutting goodsworthy of the talent and expertise of its labor force.

New York is also augmenting human labor withautomation. Automatic diamond cutting has evolveddramatically since the first machines were used in Israelin the 1970s. Today, a machine is capable of cutting adiamond—with the exception of the star facets—withperfect polish and symmetry and with no additionalweight loss, compared to human labor. Automationensures better consistency, an attribute demanded inbranded diamonds. It also helps address some of theconsumer issues regarding diamond cut, the last qualityfactor to become quantifiable.

Globalization. With today’s telecommunications,overnight deliveries, and international travel facilities,New York is no longer insulated by the Atlantic. Notonly are diamonds supplied to the American marketby other cutting centers, but New York also servicesother international markets. New York has estab-lished strategic international links for the Americanretailer through brokers and partnerships in overseascenters. Diamond trading in the U.S. now requiresmemo service and next-day delivery. To overcometime zones, progressive retailers look for electronicaccess to existing inventories, including on-line pric-

ing and ordering. U.S. retailers also require credit.Fortunately, the New York Diamond Market is in astrong financial position.

Competition for High-End Cutting. The diamondmanufacturing technology available to New York isalso available to the rest of the world. As skill andexperience increase in other cutting centers, NewYork has seen increasing competition from those cen-ters for the larger, better rough. In response, NewYork must conscientiously protect its role in finemake by providing more premium-cut goods for theAmerican market, along with the diamond-gradingreports that authenticate their cutting quality.

Concluding RemarksAs a relatively small and tight center, New Yorkmaintains the ability to adjust to consumer trends andservice special requests. Because of their depth of skilland experience, New York cutters can shift produc-tion to different shapes, sizes, and features as the mar-ket demands. In addition, New York can respond tocustom orders and recutting requests. Although it isimpossible to curtail the developing skills andresources of other centers, a keen awareness and sen-sitivity to the needs of the American retailer will helpprotect New York’s position as the diamond supplierto this important constituency. New York is indeedpoised for the new millennium.

The U.S. dominates world diamond sales. For 1998,it represented 36% by value.

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46 SYMPOSIUM PROCEEDINGS ISSUE

ith a yearly turnover of around $20 billion,Antwerp handles more than 80% of the world’s

rough diamonds, and half of its polished dia-monds. It is the undeniable capital of the world’s dia-mond trade, continuing a tradition of cutting, trading,and financing that started in Bruges over 500 yearsago. Antwerp’s diamond volume is a reflection of itskey role in the diamond pipeline. There are well over1,000 active diamond manufacturing and tradingcompanies in Antwerp, some of which are the largestin the world. The Antwerp sector accommodates aglobal business comprising 70 million pieces of dia-mond jewelry at an average of $750 per piece. Thisamounts to a total retail value of $50 billion and awholesale polished diamond value of $12 billion.

For centuries, diamonds and the diamond indus-try were clouded in mystery, myth, and the magicreleased by artisan gem cutters. Today, the diamondtrade is driven by computers, lasers, leading-edge sci-ence and technology, and the Internet. WhileAntwerp’s cutting tradition has felt the impact ofcompetition from low-cost cutting centers, suchcompetition has raised the local standards of skills andtechnology with tremendous increases in the efficien-cy of all operations.

For years, the international diamond trade operat-ed in an environment largely protected by De Beers.Recent experience and De Beers’s new commercialstance reveal the weakness of a production-based,rather than market-driven, strategy. The viciousimpact of the “reverse ripple effect” (i.e., downstreammarket conditions—whether good or bad—areinevitably exaggerated in the cutting centers) can bedevastating. More positively, contending with criticalchange and challenge is illuminating. A self-examina-tion analysis (SWOT—Strengths, Weaknesses,Opportunities, and Threats) defines several issues thatmerit attention, including commoditization, erosion

of profit margins, treatment and disclosure, branding,unprofessional conduct and ethical standards, corpo-rate transparency, the discount syndrome, credit andmemo excesses, and far too little creativity in style,design, and merchandising. Antwerp is very aware ofcurrent threats to the global diamond industry.Accordingly, Antwerp is now re-inventing itself withvitality, gaining new insight, vision, and clients, anddeveloping new business strategies.

Today, Antwerp is positioned perfectly to be thepartner of choice for diamond dealers, distributors,manufacturing jewelers, retailers, other cutting cen-ters, and downstream stakeholders around the world.The city benefits from the presence of the financialpillars of the diamond industry, Antwerp DiamondBank and ABN-AMRO. Indicative of Antwerp’sstrength and position, as well as the quality of itsinfrastructure, is the fact that it is headquarters to theWorld Federation of Diamond Bourses and theInternational Diamond Manufacturers Association.The HRD (Diamond High Council) is beingrevamped through a process of modernization underits new director-general, Peter Meeus. Antwerp’s fourdiamond bourses, the oldest in the world, lead theglobal industry in developing dispute resolution andarbitration procedures.

In July 2000, the city will host the AntwerpWorld Diamond Congress, a major platform foraddressing the challenges that face the global diamondindustry. With the implementation of forward-think-ing and constructive development strategies, Antwerpdiamantaires believe there is no reason why diamondjewelry could not be a $100-$150 billion world mar-ket given the right design, merchandising, and pro-motional approach. Antwerp is picking up the pace.

The Antwerp Diamond SectorMarcel Pruwer

International Economic Strategy ConsultingAntwerp, Belgium

W

E-mail address: [email protected]

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GEMS & GEMOLOGY FALL 1999 47

ARLIER THIS YEAR, ARGYLE DIAMONDS

celebrated its 10th year of operating in India. Ihave, in fact, been going to India for the last 20

years, visiting factories, meeting with diamond indus-try representatives and, of course, selling diamonds.The last 20 years have been a period of great chal-lenge, opportunity, and growth in the Indian dia-mond industry, a period during which Indian manu-facturers reached a position of dominance. Let meremind you of how far the Indian diamond and jew-elry manufacturing industry has come and what hasbeen accomplished.

• Today, more than 100 Mct (million carats) perannum of rough diamonds are processed inIndia.

• Approximately one million people are directlyemployed in the Indian diamond industry, andmany more support their activities.

• The first laser machines were introduced intoIndia in the late 1980s. Today, there are morethan 400 lasers in operation.

• 19 out of 20 diamond polishers in the worldreside in India.

• Indian polished exports have more than doubledin the last five years, to over US$5 billion.

• India is now the leading exporter of polished dia-monds in terms of both value and volume.

• Today, exports of diamond jewelry from Indiaare approaching $1 billion, up from $155 millionin 1990.

Whichever way you look at it, the growth in theIndian diamond and jewelry manufacturing industryhas been one of modern India’s great success stories.

Elements of India’s SuccessLet us now look at the elements of this success andwhat they might mean for the new millennium.

Purchasing and Financial Strength. Security of supplyhas always been critical in the diamond industry. TheIndian manufacturing industry has excelled by estab-lishing an efficient infrastructure to ensure a stable andgrowing supply of rough diamonds, accompanied bythe financial capacity to fund these purchases.

Today, Indian diamond manufacturers have pur-chasing offices in the world’s major trading centers—Tel Aviv, Mumbai (Bombay), and Antwerp. TheIndians also regularly visit Russia and Africa to securesupplies. Whether they are buying through CSOsights (and there are 40 Indian sightholders) or on theopen market, the Indians are well organized and havethe business acumen to ensure continuity of supplyunder any scenario.

Ability to Process a Wide Range of Product. The Indianmanufacturing industry has the skills and capability toprocess any type of rough diamond. For a long time,India manufactured rough rejections that were bothlabor-intensive and extremely difficult to process.Cutting and polishing these “rejections” provided asound basis for learning how to get the most out of arough diamond. It also positioned the Indian dia-mond industry for manufacturing the difficult large-scale Argyle production that commenced in the early1980s. Cutting and polishing the Argyle product pro-

The Indian Perspective:Challenges and New Developments

M. A. MitchellArgyle DiamondsPerth, Australia

E

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48 SYMPOSIUM PROCEEDINGS ISSUE

vided further skills development and product under-standing.

In the early days when I visited Indian factories,they were essentially part of a cottage industry. In arelatively short time, traditional Indian diamond-cut-ting skills have been enhanced enormously by therapid adoption of technology such as diamond-impregnated cutting wheels and automated polishing,in addition to laser sawing. As a result, the Indianmanufacturing industry is now in a position where itcan process the full range of rough, from very small,low-quality stones to the more expensive and largerproducts. In fact, many diamantaires in other cuttingcenters are increasingly subcontracting their cuttingand polishing activities to the Indian industry. I antic-ipate that we will see the Indian industry increasinglydominate manufacturing across the full range of dia-monds and diamond jewelry.

Global Marketing and Distribution Systems. The Indiandiamond industry has excelled in the worldwide mar-keting and distribution of both loose polished stonesand, more recently, diamond jewelry. Now, not onlycan they effectively acquire a wide range of rough andmanufacture it competitively, but they also can sell itsuccessfully on a global scale. Family members inIndian companies are mobilized to provide anunprecedented level of vertical integration and super-efficient communications. To give you an example,one of our key customers buys Australian rough fromour Antwerp office, cuts and polishes it in Mumbai,has a jewelry factory in Surat, and distributes both loosepolished stones and diamond jewelry in New York.

These three success factors combine to produce atypical Indian product that represents high quality andlow cost. For retailers, this translates into better mar-gins. For the end consumer, it means more value forthe money. This is the only formula for success in anincreasingly competitive environment.

The Millennium ChallengeThe strong growth over the past 25 years has secureda great future for the Indian diamond industry. Indiais likely to see an even larger market share, as it con-tinues to dominate diamonds and diamond jewelry.The global environment in which the Indian dia-mond manufacturing and jewelry industries nowoperate is unlikely to change in the foreseeable future.That is:

• Low inflation• Increasing competition• Shrinking margins• A shortened distribution chainThere is no room in the chain unless you can add

value. The search for improved value and profitabilityis relentless.

In this environment, I see the challenges as two-fold: (1) the possibility of new players entering theretail market, and (2) the possibility that large-scalemanufacturers of diamonds and diamond jewelry willdistribute directly to consumers through the Internet.

As the Indian powerhouse searches for furthergrowth opportunities, we may see a greater number ofIndian companies in the retail business; after all, theyare already financing a large part of the stock in theretail and jewelry manufacturing pipeline.Alternatively, the move to Internet marketing is a logi-cal next step to complete integration. If retailers are tomeet the challenge of this sort of competition, thenthey need to look at new ways in which they can dif-ferentiate themselves and add value for their customers.

These are exciting times. Argyle Diamonds (theworld’s largest diamond mine), India (the world’slargest diamond manufacturing industry), and theUnited States (the world’s largest consumer marketfor diamond jewelry) have come a long way together.The journey is not yet complete, and we look for-ward to working together to meet the challenges ofthe new millennium.

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GEMS & GEMOLOGY FALL 1999 49

T PRESENT, THE ISRAELI DIAMOND industryis enjoying an upswing period, and I have

good reason to believe that this momentumwill continue well into the year 2000.

Last year (1998), De Beers reduced its worldwiderough supplies by 28%. As Israel’s annual consump-tion of rough diamonds is equivalent to more than70% of the CSO’s annual sales, it is clear that CSOpolicies affect the Israeli industry each and every day.However, in 1998, Israel’s exports of polished dia-monds declined by only 11.5%, to $3.65 billion.Actually, we have no complaints about the reductionin volume of rough because, as partners to our roughsuppliers, we realize that we also had to make a con-tribution to the welfare of the entire industry.

This year, we believe that polished exports willapproach $4 billion. The success of De Beers’s policiesshould cause prices of polished diamonds to firm, espe-cially in the latter part of the year. Today, 62.8% of allour direct polished exports are destined for the UnitedStates. We estimate that an additional 15% of ourexports to other countries eventually end up in theU.S. In the first half of 1999, we saw our exports toHong Kong, which is a virtual barometer, increase by11%. We also see encouraging buying activity fromJapan. Fueled by a stronger yen, Japan’s polishedimports rose by 21% in the first quarter of this year.This suggests that the Japanese market remains veryimportant, and the purchase of diamond jewelryremains an integral part of that country’s consumerbehavior.

As a result of this improved situation, 25 new dia-mond factories have opened in Israel over the pastfew months. That is the other part of the so-calledripple effect: When the pendulum swings back— andwe have already felt the effect of a shortage of

goods —the improvement is fast and decisive.We have every reason to believe that we should

be truly optimistic about the future. Even with newsources in Canada, and with the expansion of productionin Botswana, it is clear that demand for quality diamondswill greatly surpass the growth in new rough supply.New markets will fuel the expansion of the diamondbusiness. The greatest hope lies, I believe, in the Chi-nese market, which is likely to be the world’s mostattractive market at the onset of the new millennium.We also anticipate other promising new markets, suchas Eastern Europe, India, and South America.

Diamond Manufacturing and Distribution: The Israeli Perspective

Shmuel SchnitzerIsrael Diamond Exchange and M. Schnitzer & Co. Diamonds

Ramat-Gan, Israel

The Israel Diamond Exchange, in Ramat-Gan, is animportant hub for the Israeli diamond market. It isestimated that polished exports from Israel could reachalmost $4 billion in 1999.

A

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50 SYMPOSIUM PROCEEDINGS ISSUE

Diamond EconomicsDiamond

Economics

HE DIAMOND MARKET, like many othermarkets, is confronted with a rapidly chang-

ing competitive landscape (see figure).Profound shifts in the international business environ-ment during the 1990s have had (and no doubt willcontinue to have) far–reaching effects on the diamondindustry. In particular, globalization and rapid techno-logical change are transforming the world economy.The old models of doing business are having to adjustto new realities. In the new economy, there are nofriends or enemies, just competitors.

In the 1980s, companies began to apply principlesof sustainable competitive cost advantage on a globalscale. In diamonds and jewelry, firms moved to set upand utilize manufacturing capacity in Asia and, to alesser extent, Latin America. In the 1990s, global

competition in the diamond business has intensified,exacerbated by overcapacity and a slowdown in retaildemand worldwide. Focused marketing and access todiverse and competitive supply sources have becomethe main considerations in maintaining profit margins.

Also, the market dynamic has shifted from Asia toAmerica. The dependence of the diamond industryon the U.S. is striking. The U.S. has not had such abig share of the world retail market for 30 years ormore. Whereas America suffered from the strong yenin the 1980s, the Japanese and Asian markets havesuffered from the strong dollar in the 1990s.

After the ups and downs of the past few years, sup-ply and demand are in better balance and there isundoubtedly room for growth in the world diamondmarket, with considerable untapped potential.Margin pressures will no doubt remain, but globaliza-tion and new technologies will bring opportunities, aswell as challenges, for both small and large firms.

In a changing world, the diamond business is for-tunate to have strong and vigilant global institutions,such as GIA. New technologies and new treatmentsbring new threats to the market. Anything thatharms the integrity of the industry has to be resisted.Supporting GIA, therefore, has to remain a priorityfor everyone.

Finally, spare a thought for De Beers. They, too,are having to come to terms with globalization, com-petition, and the changing supply-demand balance.At the 1991 Symposium in Los Angeles, I noted thatthe diamond business depends on confidence—confi-dence in the product and confidence in the system ofmarketing. Despite all the changes in the world sincethen, I have no reason to alter my opinion.

The Effect of International Economic Developments on the Diamond Market

Carl PearsonEconunitLondon

T

E-mail address: [email protected]

Powerful and diverse forces will mold thediamond market of the future.

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GEMS & GEMOLOGY FALL 1999 51

HE DIAMOND INDUSTRY is undergoingunprecedented change and development.

New information technologies will revolution-ize the distribution system and play havoc with tradi-tional profit margins and marketing strategies. Therough- diamond markets and De Beers Central SellingOrganisation (CSO) will be forced to reinvent them-selves, as global economic forces play a greater role indictating polished diamond prices. The fundamentaleconomics of the diamond industry will change, as firmslook for new ways to generate profits in an increasinglycomplex global marketplace. Firms will have to adoptnew strategies and new ways of doing business if theyare to succeed in the diamond markets of the future.

Some people still complain that certificates andprice lists have destroyed profit margins in the dia-mond industry. Pray tell, how will these same firmsadapt to the information revolution now taking placeon the Internet? The availability of specific pricingand inventory information to consumers is growingexponentially. The old days when you could makemoney because consumers did not know diamondprices or quality are over, kaput, gone.

The Importance of Adding Value. The only waya firm can make money in the diamond business is byadding value to the diamond product. Jewelers whothink they can make “traditional margins” by simplyplacing a diamond into a four-prong setting aredreaming of the past instead of planning for thefuture. Firms can and must add value to the diamondsthey sell—through better design, customer support,education, branding, and hundreds of other ways. Wemust recognize that the cost of selling and shippingdiamonds to consumers via the Internet is significantlybelow the cost of traditional retailing, so Internet sellerscan move diamonds at margins well below those thatany in-store retailer can afford. While jewelers cancompete on the Internet, they cannot compete withthe Internet. Traditional jewelers must define exactlyhow they are adding value to the diamonds they sell.

Diamond Pricing Will Change. The diamondindustry is unique. Rough diamond prices are nowcontrolled by the De Beers CSO, while polished dia-mond prices are established in a free market. The dia-mond trade often finds itself in an untenable positionbecause rough prices are not adjusted downwardwhen polished demand declines. Consequently,rough prices are sometimes higher than polishedprices. In this scenario, diamond manufacturing isunprofitable and cutters put tremendous pressure onretailers for higher prices, even though there is insuffi-cient demand to justify them.

The imbalance between rough and polished pricesand the resultant lack of profitability for diamond cut-ters is a primary CSO problem: When cutters do notmake money, they cannot buy rough and the CSOstockpile increases. The CSO is currently undergoinga strategic review that will undoubtedly conclude thatthey should maintain a profitable relationship be-tween rough and polished prices. If they follow thiscourse, polished prices will drive rough prices, anddiamond pricing will be beyond their control.

It is reasonable to expect that the CSO will modi-fy their powerful role in diamond pricing over thenext few years. They will give higher priority to lim-iting the size of their stockpile than to controllingprices. More than ever before, the industry will haveto self-regulate prices and deal directly with problemsthat result from increased diamond price volatility.

In conclusion, the diamond trade is entering aperiod of great transition. We should expect signifi-cant change in all sectors—from the mining andwholesale distribution of rough to the retail distribu-tion of polished. Our challenge is to confront thesechanges head-on. To turn adversity into opportunity.To find new ways to participate in the exciting mar-kets of the future.

Diamond Economics: A Dynamic AnalysisMartin Rapaport

Rapaport Diamond ReportNew York

T

E-mail address: [email protected]

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52 SYMPOSIUM PROCEEDINGS ISSUE

HE DIAMOND INDUSTRY has undergonewrenching changes in the past decade—

from the way rough diamonds are mined andmarketed, to the way they are polished and eventuallysold to consumers by retailers. The only thing we canpredict with any certainty is that changes will contin-ue to occur, but they will arrive much more rapidlyand they will require enormous adaptability at everylevel of the industry.

Currently, the diamond industry is shaped like afunnel. Diamond production comes from all over theworld, then funnels down into the narrow distribu-tion channels of rough diamonds that eventually reachthe cutting centers. Today, something close to 70%—and probably nobody outside of the Central SellingOrganisation knows the exact figure—of the world’srough diamonds are distributed through De Beers.Most recently, we saw Russia sign an agreement withDe Beers. Only a few months ago, De Beers alsosigned an agreement to sell 35% of the production ofCanada’s Ekati mine. As much as we would like toavoid a well-worn subject, De Beers is still the funnelthrough which diamonds reach the rest of the indus-try, and it would be foolhardy to ignore that fact. DeBeers influences everything that happens in the dia-mond industry, all the way down to the retail level.

Although the current arrangement is monopolis-tic, it does provide stability. First, our industry bene-fits from the well-funded De Beers marketing cam-paign. Then consider the steadying influence of thesingle-channel marketing system for rough diamonds,as we saw after the Asian economy collapsed inOctober 1997. In a normal competitive environment,diamond prices (both rough and retail) would havefallen 30%–40%. Korea was hit especially hard, yetKorean consumers were still able to convert their dia-mond jewelry into money at a reasonable approxima-tion of what they paid for it. Other valuable com-modities—real estate, cars, furs, artwork—fell to

one-half, one-third, and sometimes one-fifth of theiroriginal value. Over and over, those consumers saidthat the first thing they’d replace when the economyturned around would be their diamonds. We can takesome comfort from that.

It sounds like a rosy picture, but will it actuallyremain this way? Can we count on the status quo tocontinue? De Beers is undergoing a massive manage-ment review of its entire structure, and its leaders areconsidering the fundamental question of whetherthey want to, or even have the ability to, continuethe single-channel marketing system into the 21stcentury. The answer to that question will determinehow most of us in the industry will fare in the future.

It has been said that “Change is the great equaliz-er,” but I have to disagree in this case. If De Beersdecides to give up the single-channel distribution sys-tem, this change will not equalize the playingground—it will rewrite the rules of the game. Somepeople will benefit from it, but others undoubtedlywill lose. De Beers, no longer a monopoly but acompetitor, would be a dominant competitor, withextensive resources and an enormous advertising bud-get. De Beers would have the ability to integrate ver-tically into every retail niche that’s been carved.Supply channels for polished diamonds would narrowdramatically. Polished diamond distribution wouldbecome every bit as controlled as today’s rough dia-mond distribution is. If such a scenario unfolds, manyretailers will be left out of the picture altogether.

Nevertheless, the general outlook in the U.S. isvery positive. As long as the economy remains strong,we can expect vigorous and healthy diamond andjewelry sales.

The Diamond Distribution SystemEli Haas

Diamond Dealers ClubNew York

T

E-mail address: [email protected]

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GEMS & GEMOLOGY FALL 1999 53

rom the 4 Cs to Commoditization For centuries, buyers and owners of diamonds

valued them strictly for their beauty as measuredby the 4Cs, the pleasure they brought the wearer, andthe awe and envy they inspired from those around thewearer. That situation reached its peak about 20 yearsago, until the great commodity boom of 1980, whennewspapers were full of talk about $800 gold and “dia-mond investments”: A one carat D-flawless sold for$62,000, and pundits said it was cheap at twice theprice. The investment boom didn’t last very long, butits legacy—in the form of an increasing dependenceon laboratory grading reports and price lists—changedthe diamond market forever. Publisher MartinRapaport got his start in 1978, when prices were risingfaster than he could put them into print. On the sup-ply side, diamond production more than doubled inthe 1980s; at the same time, worldwide demandtripled, thanks to the economic boom in Japan and,eventually, throughout the rest of Asia.

But what should have been a diamond manufac-turers’ paradise was tempered by cutthroat price com-petition, discounting, and that dreaded word—com-moditization—that is, the selling of diamonds by certifi-cate and price list at much lower margins, as little as20% in some cases. Retailers played one supplier offagainst another, with the result that margins and cashflow fell into a downward spiral that only recentlyappears to be bottoming out.

Now the Internet can complete the process bymaking the purchase of diamonds almost automatic.A recent check of the eBay on-line auction compa-ny, for example, listed 1,432 diamond items, rangingfrom $19.95 to $7,000. GemKey lists more than$150 million worth of diamonds and gemstones eachday on its trading network. And that’s just to thetrade.

And Quality CutsQuality retailers and their key diamond suppliers,being resourceful businesspeople, evolved a strategy tofight back: They offered quality cuts such as “ultra-Ideals,” which weren’t governed by certificates.Cutters created new and proprietary cuts such as theGabrielle, the Radiant, and many others that couldnot be checked easily against a lab report or in theRapaport Report. Their aim, besides raising profit mar-gins and reintroducing “distinctiveness,” was toreestablish the diamond as a symbol of romance andprestige in an age where Wal-Mart sells them along-side garden hoses and plastic dishware.

And Now: BrandingThe industry is just entering the next phase—branding—which is becoming a lot more controversialthan the new cuts. It’s controversial because of the DeBeers initiative (the “Millennium Diamond”), whichmany people in both retail and wholesale believe is anattempt by the “diamond giant” to seize control overthe so-called downstream diamond market.

De Beers claims that their research and that of oth-ers clearly demonstrates that consumers want brandeddiamonds and branded jewelry—whether it is by DeBeers or another reputable company. And most willpay more to get a brand that means prestige and instillsconfidence that the buyer made the right decision.

About four or five years ago, De Beers conductedan extensive consumer study about synthetic dia-monds. After the interviewer had explained what syn-thetic diamonds were—that is, actual diamonds madeby man, as opposed to simulants such as CZ—most ofthe survey participants felt that a reputable jewelercould spot synthetic diamonds and would not pass

Retail Markets and the GrowingGlobal Significance of Branding

Russell ShorGemKey USA

New York

E-mail address: [email protected]

F

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54 SYMPOSIUM PROCEEDINGS ISSUE

them off as natural stones. But that was most of theconsumers surveyed—not all of them. A minority didnot have such confidence, and they said they felt like“red meat” to a jeweler who possessed all of theknowledge. Also, De Beers found that many con-sumers would pass over diamonds for something else ifthey felt a jeweler could not spot the differencesbetween synthetic and natural stones. It was this studythat launched the initiative to develop synthetic dia-mond detectors and the branding program.

Further, De Beers surveys found that consumerfeelings about the “inviolability” of diamonds actuallyworked against branding at first. While jewelry buyersreadily accept cultured pearls that have been tumbledand bleached and colored gems that have been heat-treated or irradiated, diamonds have to be pure anduntouched. Consumers were worried that the markwould compromise the diamond’s quality.

Since no company had undertaken such consumerresearch about diamonds before, almost all of this pro-ject was a trip into the unknown. Focus groups andquestionnaires gave De Beers some clues, but by lastyear it was clear that most of these concepts had to beproved in the marketplace before further decisionscould be made. This is what led De Beers to launchthe trial marketing program of its branded diamonds atBoodle & Dunthorne, a British retail chain.

The key questions were: (1) Will consumers accepta “marked” diamond, and (2) How much more arethey willing to pay for one? Other questions addressedwhether or not consumers wanted the “extra” reassur-ance of a serial number on their diamond and a DeBeers in-house certificate that said the diamond wasnatural and untreated.

The next step was to develop a sales training pro-gram for the Boodle & Dunthorne staff so they couldproperly explain what the brand meant and that themarking on the diamond was meant to enhance value,not compromise it. De Beers and Boodle & Dun-thorne began the program in July 1998 with a 10%premium over comparable unmarked diamonds. Sincethen, they have been steadily pushing that premiumpast 15%. According to De Beers, not one consumerhas refused to buy a branded diamond because it costsmore. In fact, Boodle & Dunthorne have decided toconvert their entire inventory of diamonds over 30points to De Beers-branded goods—even complicatedpieces such as multi-stone rings.

Ultimately, De Beers hopes branding will increase

the size of the diamond market, not carve a biggerslice for retailers and sightholders selling its ownbranded diamonds. De Beers already sees this happen-ing in other luxury markets. For example, many con-sumers will pay $5,000 for a new Louis Vuitton flightbag even if they already have a flight bag, because it’ssomething new and exciting. In short, the brand drivesthe demand for the product as much as it does for thebrand itself, according to De Beers.

Last, some retailers, such as Cartier, have successful-ly built a store brand of their own. However, “thirdparty brands” such as that offered by De Beers, otherdiamond houses, or respected industry groups (e.g., theAmerican Gem Society or World Federation ofDiamond Bourses) can be the global equalizer—ensur-ing quality standards and helping retailers who do nothave great resources compete in the “branded” world.

As part of De Beers’s marketing for the new millen-nium, the Mikimoto diamond feather brooch (withan 11.10 ct diamond as the centerpiece) was part ofa collection featured at the “Diamonds Are Forever:The Millennium Celebration” gala event held inLondon June 9, 1999. Photo by Albert Watson.

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GEMS & GEMOLOGY FALL 1999 55

H E E N T I R E D I A M O N D I N D U S T R Y ischanging, and the rate of change is increasing.

Notable within this changing industry is the evolv-ing role of the diamond manufacturer. Whereas in thepast the manufacturer’s role was clearly defined as one ofpolishing diamonds and selling them at wholesale, nowthe manufacturer is entering an era of vertical integration.This involves purchasing the rough diamonds as close tothe source as possible and then selling the polished stonesas close to the ultimate consumer as possible. The era ofvertical integration for diamond manufacturing willchange the “mix” of manufacturers involved in the busi-ness and, concomitantly, it will have a large impact on therole of dealers and possibly retailers.

The role of diamond manufacturers started to changeback in the late 1970s, as the GIA Gem TradeLaboratory grading reports and Rapaport price lists grad-ually became accepted worldwide. Standardized gradingand pricing allowed rough to be priced more tightly inrelation to polished. At that time, many in the industrydid not understand the effect that these reports and listswould have during an era of seemingly endless priceincreases for polished goods. However, with roughbeing priced ever closer to realizable polished value,manufacturers were forced to increase their yields tocombat low margins.

By necessity, this environment created significantlygreater manufacturing efficiency. Yet, the cost savingsgenerated were constantly being eroded by the ever-increasing prices for rough. To further combat the lack ofprofitability, manufacturers sought to increase turnoverwhile maintaining their overhead. Increased turnover ledto a glut of polished diamonds, as the greater capacity thathad been achieved drove their demand for rough. Thisglut led to competition for sales, which resulted in theneed for ever-longer credit terms and greater bank financ-ing. This situation has eroded many of the gains made byincreased turnover and led to moribund prices for pol-ished diamonds. In addition, it has resulted in diamond

manufacturers’ funding other sectors of the industry, inparticular, the retail jewelry business.

The economic crisis in Asia actually saved the dia-mond industry by injecting it with a strong dose of reality.As a result of the Asian crisis, companies and institutionsrelated to the industry realized that the system by whichthe industry operated was unstable and unsustainable.

As we look to the future, we see that the informationage, which dominates commerce today, will bring manypositive benefits. Not only has it already moved diamondmanufacturers in the direction of vertical integration, butit also has produced a number of broad trends that willusher in a new era of profitability.

First, enhancing efficiency by outsourcing services cancreate highly dynamic small firms. Like fish in the ocean,small firms need to react quickly if they are to survive.With the manufacturing efficiencies inherent in outsourc-ing and the nimbleness of small firms, we may see a signif-icant change in the dynamics of all manufacturing firms.

Second, branding is here to stay. In the future, due topublic demand and the widespread availability of dia-monds on the Internet, there will be a plethora of brands.As a result, there will be at least 20 different versions of a“G-VS2”, each with its own price point. The prices forpolished goods will not be nearly as definable as they arenow. If polished prices are variable, then the price gapbetween polished and rough will be greater, and there willbe more opportunity for better profitability. The informa-tion age will, with the correct usage, bring profitabilityback to the industry.

Last, diamonds have intrinsic value. Humans havebeen captivated by them for thousands of years. As long asthere are human beings and luxury products, diamondswill be bought and there will be diamond manufacturers.With new marketing methods, diamond manufacturerswill absorb an ever-increasing and profitable role withinthe diamond industry as a whole.

A Manufacturer’s PerspectiveSean Cohen

Rand Diamond Cutting Works (Pty) Ltd.Johannesburg, South Africa

Diamond MarketDiamond Market

E-mail address: [email protected]

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56 SYMPOSIUM PROCEEDINGS ISSUE

HE U.S. DIAMOND INDUSTRY enters the21st century with several history-making

trends in full force. Most importantly, the U.S.has evolved from a manufacturing society to a ser-vice-based society, and now we are emerging as acommunication- and information-based society.Soon, the consumer will have the ability to be fullyinformed on any subject, to reach multiple globalsources with a speed and ease that will fundamentallyalter any conceptions we now have about the way theworld works. There will be no future for companieswith business models and profits that rely on geo-graphic isolation, limited communication, or theignorance or laziness of the consumer.

The industry’s evolution has accelerated to a pointwhere entire segments are at risk. Catalog showroomshave essentially disappeared, as have jewelry distribu-tors. The number of diamond importers and dealershas declined rapidly, while jewelry imports havegrown just as fast. Suppliers of loose diamonds feelcompelled to be in jewelry manufacturing, and theyare finding the transition daunting because of the vastdifferences between the two businesses. At the sametime, television shopping networks and wholesaleclubs, once disparaged, are now sizable businesses.The Internet is causing distress mostly because it is an“invisible” opponent—there is no real estate toinspect. And this one has the power to dwarf any-thing we have seen.

The supply side remains fragmented and faces dif-ficult times in a market that will value marketing anddistributing power far more than purely manufactur-ing skills. Heavy competition, informed consumers,and excess capacity at all levels of the industry havecaused shrinking margins for some years, and it isfinally sinking in that margins are not going toimprove within the present structure of the trade.

To address the many new challenges facing theU.S. diamond industry, companies are pursuing any

device that raises visibility— especially consolidation,branding, and technology, but particularly the Internet.The aim is to dominate their market segment, and toincrease productivity to the point where turnover—the sale of larger volumes — overcomes the lack ofgross margin.

ConsolidationConsolidation, especially at retail, has reached a finalstage. Television, like the wholesale clubs, has onlyfour meaningful companies in jewelry. The mall jew-elry sector has seen some 40 operations disappear inthe last seven to eight years. Only 10 or so chains willexist in the mall jewelry sector by 2005. Only suppli-ers with significant capacity in production, systems,and support will be able to service this sector.

The days when any credit-worthy diamond com-pany could buy goods from prime sources appear tobe ending. Prime goods are going to be channeledthrough a preferred value chain of distributors, manu-facturers, and retailers, and there will be a distincteffort to cut off competition. Nevertheless, small,innovative companies, who sense the public’s needsand who respond accordingly, will outperform largerivals, and may even undo them.

BrandingThe fundamental nature of diamonds makes truebranding particularly difficult, since a brand name can-not be ostentatious or visible on the principal prod-uct. Nevertheless, branding is going to have centralimportance for Internet sales, and that guarantees thatconsiderable effort will be exerted to create successfulbrands.

The De Beers brand has great potential, but wecan be certain that many others will make efforts inthis area. Although there will be few successful bran-

The U.S. Diamond IndustryBenjamin JanowskiJanos Consultants

New York

E-mail address: [email protected]

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GEMS & GEMOLOGY FALL 1999 57

ders, we can expect a great deal of jockeying for posi-tion around those who do succeed. Cutters, jewelrymanufacturers, importers, wholesalers, and retailers allwill want strong alliances with the brander. Brandingstands out as a singularly powerful tool for attainingsize and profits, and it will be futile to fight the trend.

Technology: The InternetThe enormous capacity of the Internet will provide aquantum leap in the ability to communicate and toproject image and personality. It is a mistake to imaginethe Internet of the future as a faster, upgraded versionof what we have now. We will have the “experience”of buying jewelry delivered to us in a manner that sur-passes almost any in-store experience we know.

By 2005, 10% –15% of the country’s jewelry busi-ness, or about US$6 billion, may be generated by theInternet, directly or indirectly. A new retail format thatcaptures 15% of the business while still in its infancywill have an enormous impact on the status quo. Someare already saying that the diamond business as weknow it is finished. Indeed, it is likely that, with regardto pricing, the Internet will produce the equivalent of apublic bourse. Even the Rapaport list could fade out, asthe Internet becomes the great equalizer.

This new dynamic will require a new set of mar-keting skills, most critical of which will be producingsales velocity. Small family businesses, which histori-cally nurture their stocks and rely on relationships,may no longer be viable. Even now, with diamondlists available to retailers on Web sites, dealers havefound that there is little loyalty, only a search for value.

Jewelers need to view such an environment as anopportunity. If they succeed, we will see a revitalized andenergized independent sector.

What Are the Possible Scenarios We Face?Scenario 1. Supply Domination. The hope is that DeBeers will be able to continue single-channel mar-keting, and rebuild a situation in which inventoriesmake money by sitting on the shelf. De Beers willnot relent in its pursuit of control, at least in betterand larger goods, and it will seek success by funnel-ing stocks through a limited number of favoredsightholders.

However, this will be a multi-polar world, andunless there is a remarkable turnaround in producersentiment, De Beers control of a high percentage of

world diamond production is unlikely.Other major producers will build comparable net-

works of large customers. In this scenario, a compa-ny’s position in the value chain will mean a great deal.All others will have inordinate difficulty finding thegoods they need at a price that is affordable.

Scenario 2. Retail Domination. The continuance ofthe present situation, in which retailers foster competi-tion among suppliers in order to extract the lowestpossible price, could continue for years. Major retailerswill connect directly with major sightholders (bothwithin De Beers’s domain and outside it), and large-scale disintermediation will result as consolidationintensifies. Independent retailers will join the fray,with many of the stronger operations establishing simi-lar associations with the dominant suppliers. Therewould still be room here for relationships betweenretailers and mid-sized, established diamond compa-nies. However, the Internet could radically change thebalance of retail power.

Scenario 3. Distributive Domination. A number ofwholesale suppliers establish powerful brands and findboth manufacturers and retailers at their door. TheInternet takes another piece, flattening the hierarchyand making distribution the most important and valu-able asset. In this scenario, verticalization and alliancesattain any number of variations, and the distinctionsbetween suppliers and retailers really blur.

Scenario 4. No Domination. Everything happens, anddoesn’t happen. There are enough sources of polishedgoods to satisfy any diligent buyer. Major chains con-tinue to consolidate, absorb weaker ones. Inde-pen-dents maintain the high ground in the guild business.Branding brings credibility and stability to the trade,and the threats of synthetics and treatments are dis-armed. The Internet grabs a large slice of business, butin its democratization it generates as much new busi-ness as it takes away.

WatchwordsThe watchwords for the future will be efficiency, speed,innovation, and anticipation; not necessarily size, longevi-ty or deep inventories. Product will count less than mar-keting, and inventory might well be treated like a hotpotato.

Which scenario is the likely one? Take your pick!

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58 SYMPOSIUM PROCEEDINGS ISSUE

H E JA P A N E S E J E W E L R Y M A R K E T hasexperienced great changes in the past decade,

including the shift from a seller’s to a buyer’smarket. As a result, we need more skills to market ourproducts. The present situation is a consequence of theeconomic slowdown that started in 1991 and hasgrown progressively worse.

After extremely rapid growth in the 1980s, theJapanese retail jewelry market reached record sales of¥ 3.015 billion (US$22.8 billion at the averageexchange rate for that year) in 1991, but by 1998 ithad declined by almost half, to ¥1.595 billion(US$13.3 billion at the average exchange rate). Thisslowdown is also reflected in changes in Japan’s pro-portion of world diamond sales. Whereas in 1991Japan accounted for about 30% of the world’s dia-mond sales by value, this had fallen to 25% in 1997and probably reached its low point in 1998, at a mere18%; by comparison, the United States accounted forupwards of 40% of the world’s diamond sales last year.This decline was reflected in all sectors of the Japanesemarket. Furthermore, partly because of the increasingpopularity of a new concept, the “simple wedding,”the acquisition rate for diamond engagement ringsshrank from 76% in 1994 to 68% in 1998 for firstmarriages.

However, improvement is on the horizon. Duringthe first quarter of this year (1999), diamond importsincreased by 20% compared to the same period in1998. This bodes well for continued recovery for theremainder of the year.

During this long recession in Japan, companies havetried to find ways to survive. Some have taken extrememeasures, such as restructuring, reducing costs, closing

under-performing retail outlets or excess facilities, andwithdrawing from non-core or unprofitable segmentsof the jewelry business. Notwithstanding these efforts,some companies were forced to declare bankruptcy,including a few so-called top-ranked companies.

In due course, the jewelry market in Japan willrecover and thrive. However, I feel that it will neverexpand as rapidly as it did in the past, and that theretail jewelry market will become far more competi-tive. For all practical purposes, the Japanese jewelrymarket is mature and soon will be saturated. To besuccessful in such a market, major improvements willbe required in retailing, merchandising, and presenta-tion skills, in addition to developing beautiful jewelry.

Although most of these aspects of the retail jewelryindustry can be evaluated quantitatively, the issue of”emotion” is particularly important in Japan. We areseeing a trend in purchases away from those items thatpeople buy for their usefulness and can replace easily,to those that they buy for some important reason andwhich have no substitute. It may represent a valuablememory, or it may be a symbol of some emotion.One such emotion is affection, which immediatelyconjures up the image of a diamond. Although thisconcept is well established in our market, its impor-tance will continue to grow. We know that we areselling not only a diamond, or a piece of jewelry—butalso a dream.

Nevertheless, we in Japan are always alert to, andprepared to respond to, changes in consumer tastes,trends, and customs in our society, as well as changesto business practices and the distribution system. Suchchanges are inevitable, and they are transforming theJapanese jewelry industry.

Today and Tomorrow in the Japanese Jewelry Market

Hidetaka KatoKashikey Co., Ltd.

Tokyo

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GEMS & GEMOLOGY FALL 1999 59

HE DIAMOND SCENE in the People’sRepublic of China has altered considerably

in the course of the last 20 years. Followingthe liberalization policies adopted by Deng Xiao Ping,there have been fundamental changes—mostly in themain commercial centers, coastal areas, and borderprovinces adjoining Hong Kong and Macao—whichhave affected every sphere of life. Today, numerouscentrally and locally funded infrastructure projects aretaking place. Much overseas investment by ethnicChinese individuals and companies, and by govern-ments and foreign organizations, has flowed into thecountry. A consumer society has started to developthat includes Western-style shops, some of interna-tional standing. Advertising on television, in maga-zines, and in newspapers—both locally and national-ly—has played a role in creating consumer interestand awareness. There is disposable income in thehands of more people, with a growing middle classthat is backing its preferences with purchasing power.

Social changes are also in process. Some of the tra-ditions that governed life for generations are beingforced to adapt to new ways of thinking and action.There is a sense of relief that the drab uniformity ofMao days has changed in favor of a more interesting,exciting, and colorful way of life—affecting especiallythose members of the younger generation who live inbig cities and who have access, through languageawareness, to outside influences.

These changes have substantially influenced dia-mond developments in China. Prior to the 1990s,there was a distinct lack of a diamond culture com-pared to the high acquisition rates among expatriateChinese in neighboring countries and throughout theworld. During the present decade, many diamondfactories were opened with government (central and

provincial) assistance. The Chinese authorities inBeijing and Shanghai are working on measures toencourage diamond and jewelry manufacturing inChina—including reorganizing the tax system toallow local industries to compete with imports, offi-cial and unofficial, from overseas. At the same time,overseas diamond companies have invested in manu-facturing opportunities in China, both to take advan-tage of the lower production costs and to establish abase for the market possibilities that are anticipated todevelop in the years ahead.

In recent years, De Beers has undertaken educa-tional programs to increase and improve consumerawareness. Encouraging results have been achieved—supported by estimates of growth in total sales, and ofthe rise in the average price of jewelry items sold. Byway of example, the Chinese market for diamondjewelry grew during the 1990s from insignificant to$500 million in 1998. Current De Beers marketingprograms are attempting to introduce the concept ofthe diamond wedding ring and to promote diamondacquisition among men.

Much work remains to be done, and care has tobe exercised, to find the right partner with whom towork in China. However, there are opportunities forgrowth and development in which both local compa-nies and foreign enterprises can take part. The size ofChina’s population, the increase in wealth andincome, and the growing awareness of Western stylesand fashions—including jewelry—promise a brightfuture for the diamond market in this rapidly devel-oping nation.

The Developing Market in ChinaGerald L. S. Rothschild

R-W (Diamond Brokers) Ltd.London

E-mail address: [email protected]

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60 SYMPOSIUM PROCEEDINGS ISSUE

F T E R D I A M O N D A N D E M E R A L D, sap-phires and rubies are the most sought-after

of fine gemstones. Widespread use andacceptance of heat treatment in the 1980s, and signifi-cant discoveries such as the vast ruby reserves in theMong Hsu region of Myanmar in the early 1990s,have made rubies much more available and affordablethan ever before. With the exception of Antarctica,gem-quality ruby and sapphire are mined on everycontinent. This abstract reviews the status of theactive deposits on each continent, and concludes byaddressing the question: Will supplies be able to meetmarket demand in the next millennium?

Although still debated by geologists, with fewexceptions rubies and sapphires can generally be clas-sified as coming from: (1) alkali basalts; (2) marble-type deposits; or (3) metasomatic deposits and ultraba-sic bodies, such as those associated with pegmatites,schists, gneisses, skarns, and amphibolites (see, e.g.,Levinson and Cook, 1994; Muhlmeister et al., 1998;Schwarz, 1998). This distinction has significant com-mercial importance because rubies and sapphiresrecovered from alkali basalt deposits often are lesspure in hue, and typically are much darker in toneand saturation (and thus frequently command substan-tially lower prices) than their counterparts from othergeologic origins.

Asia. Historically, Asia has been the predominantsource of ruby and sapphire, and significant quantitiescontinue to come from Myanmar and Sri Lanka. Bythe early 1990s, many of Thailand's important basalt-type deposits of ruby and sapphire were nearlyexhausted, and today mining activity is greatlydecreased. India continues to supply major quantitiesof low-priced ruby beads, cabochons, and star rubies.Several locations in Orissa State in eastern India cur-rently yield fine-quality facet-grade ruby.

Sapphire mining at the historic Kashmir deposit iscurrently limited to sporadic alluvial workings alongthe hill slides and old mine tailings. Limited geologicstudies indicate that further deposits of sapphire mayawait discovery in Kashmir. In 1979, a major depositof fine-quality ruby was discovered in Azad Kashmir,about 350 km from the blue sapphire area

The last decade has seen the discovery of, orincreased mining activity at, deposits in Vietnam,Laos, and Cambodia. Ruby continues to be recov-ered from deposits in Nepal, Tajikistan, Afghanistan,and Pakistan. In addition to economic considerations,the viability of mining some of these regions is influ-enced by difficult terrain, as well as by political con-siderations. Important alkali basalt sapphire depositsare mined in at least three different areas of China.Ruby is also known from several different regionsthere; the Yunnan and Guangxi provinces—whichborder Myanmar, Laos, and Vietnam—are promis-ing. Asia will continue to be a major supplier of rubyand sapphire during the 21st century.

Europe. There are several countries in Europewhere gem-quality corundum is known to occur;however, most are not producing commercially atpresent. Russia has the greatest potential in Europefor economic ruby and sapphire deposits, but current-ly there is only minor production. Gem corundumhas been discovered at numerous places in the UralMountains. Given the right conditions and incentives,this region could become a significant producer ofgem-quality ruby and sapphire.

North America. Montana remains North America'smost significant source of gem corundum. Huge sap-phire reserves are known to exist within four major

Ruby and Sapphire Occurrences Around the WorldRobert E. Kane

San Diego, California

Colored StoneSources

Colored StoneSources

E-mail address: [email protected]

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GEMS & GEMOLOGY FALL 1999 61

areas of Montana. Although limited production con-tinues today from several different areas, the success orfailure of these or future mining ventures depends onthe ability to mine, heat treat, and cut the stones at acost that will enable the unusual colors and generallysmall sizes to be sold at competitive prices on theworld market.

South America. Opaque and low-quality sapphireand ruby have been known in Brazil for many years.In the 1990s, however, a potentially economicdeposit of facet-grade sapphire was systematicallyexplored in the Indaia Creek region of Minas Gerais.This deposit has yet to be mined commercially.Sapphires have been known in the Mercaderes-RioMayo area of Colombia since 1907. Small-scale min-ing continues to produce various colors, includinglight to medium blue, and an unusually high percent-age of color-change sapphires. Rubies also have beenreported. The future of these deposits will dependlargely on economic and political factors.

Australia. Australia remains a major player in theinternational sapphire market. Gem sapphire occurs inassociation with alkali basalt at numerous localities ineastern Australia. Large-scale commercial mining hasbeen successful only at the Anakie and New Englandfields. Geologic surveys indicate that Australia is verylikely to remain a major supplier of commercial sap-phire well into the next century.

Africa. Africa undoubtedly will be the source ofmany exciting future discoveries of ruby and sapphire.Gem corundum continues to be commerciallyexploited (to varying degrees) in Burundi, Kenya,Malawi, Mozambique, Namibia, Nigeria, Rwanda,Sierra Leone, South Africa, Tanzania, Uganda, theDemocratic Republic of the Congo (formerly Zaire),and Zimbabwe, as well as in the nearby island nationof Madagascar. As the latter half of this century hasalready witnessed, East Africa has extraordinary gempotential. This is particularly true throughout theMozambique Orogenic Belt, the 200–300-km-widegeologic feature that runs from Mozambique in thesouth, through Tanzania, Kenya, and Ethiopia, to theSudan in the north; it is one of the richest gem-bear-ing regions in the world. In Tanzania alone, morethan 200 different occurrences of various gem miner-als have been identified (Dirlam et al., 1992), most of

which are in the Mozambique Belt. The Tundururegion of southern Tanzania is so rich in gems, includ-ing sapphire and ruby, that it has been described as the“new Sri Lanka.” Future discoveries of gem-qualityruby and sapphire are likely all along this belt.

Many other countries in Africa will continue toprovide exciting deposits of ruby and sapphire. Forexample, Uganda recently produced some unusuallylarge ruby crystals. Last, Madagascar, which has manygeologic similarities to East Africa, continues to revealits extraordinary sapphire wealth. Most recently, thealluvial deposits in the Ilakaka region of southernMadagascar have yielded impressive quantities ofattractive pink sapphire, as well as important quanti-ties of blue sapphire.

Ruby and Sapphire in the New Millennium. Asexploration techniques move beyond the simplewashing of gravels and placing of explosives towardthe use of sophisticated geophysical technology (suchas seismic reflection and radar imaging for high-reso-lution mapping of near-surface deposits; see, e.g.,Cook, 1997), even more gem corundum deposits willbe discovered. When these advanced technologies arecombined with favorable political and economic con-ditions in less-developed countries, where miningcosts are relativity low, we will see the greatest results.

Current information indicates that not only willmarket demand for ruby and sapphire be met in the21st century, but a full range of qualities and price-points will also be available.

RE F E R E N C E S

Cook F.A. (1997) Applications of geophysics in gem-stone exploration. Gems & Gemology, Vol. 33, No. 1,pp. 4 –23.

Dirlam D.M., Misiorowski E.B., Tozer R., Stark K.B.,Bassett A.M. (1992) Gem wealth of Tanzania. Gems &Gemology, Vol. 28, No. 2, pp. 80–102.

Levinson A.A., Cook F.A. (1994) Gem corundum in alkalibasalt: Origin and occurrence. Gems & Gemology, Vol.30, No. 4, pp. 253–262.

Muhlmeister S., Fritsch E., Shigley J.E., Devouard B.,Laurs B.M. (1998) Separating natural and syntheticrubies on the basis of trace-element chemistry. Gems &Gemology, Vol. 34, No. 2, pp. 80–101.

Schwarz D. (1998) Aus Basalten, Marmoren undPegmatiten. Rubin, Saphir, Korund: Schön, hart, selten,kostbar — extraLapis No. 15, pp. 5–9.

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62 SYMPOSIUM PROCEEDINGS ISSUE

N GENERAL, the most important factorsaffecting gem production are: (1) socio-

political, (2) logistical, (3) technical, (4) finan-cial-commercial, and (5) geological-mineralogical.The importance of each of these factors on produc-tion varies in each mining area. In some emerald-pro-ducing countries (e.g., Zambia and Brazil), the domi-nant factors controlling the gem output are geologi-cal-mineralogical and technical (e.g., the lack ofmodern mining technology). In other countries,emerald production is controlled primarily by currentsocio-political factors (e.g., Russia and Pakistan), andeven by recurrent military operations (e.g.,Afghanistan). The status of current emerald produc-tion and the future potential of the major producingcountries are reviewed.

ColombiaColombia, the world’s most important emerald-pro-ducing country, is reorganizing its emerald industry,including the mining sector. Foreign companies havebeen invited to participate in joint-venture miningprojects (e.g., Canadian companies at Chivor).Currently, there is only minor production at Chivorand Muzo. Coscuez is the most important miningarea at present; it produces about three-quarters ofColombia’s emeralds (see figure). In the past fewyears, underground mining has begun to replace thehistoric open-cast mining operations.

BrazilThe major problem facing most Brazilian emeralddeposits is the complex geological conditions (e.g.,extensive faulting, dislocations, or disrupted layers) inthe mining areas, which requires the use of capital-intensive mining methods to follow the emerald min-eralization (Lau, 1998). The potential reserves of most

Brazilian emerald deposits are impressive. However,the high production costs result in inflated prices forthe emeralds (Roditi and Cassedanne, 1998). Futureprospects depend primarily on whether the mines canget sufficient capital to develop modern undergroundoperations.

Emeralds—Recent Developments and Projected Changes in Supply

Dietmar SchwarzGübelin Gem Lab

Lucerne, Switzerland

I

E-mail address: [email protected]

This fine emerald crystal from Coscuez in Colom-bia measures 1.3 cm high. Courtesy of MelGortatowski; photo © Jeff Scovil.

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GEMS & GEMOLOGY FALL 1999 63

ZambiaFor the past few decades, the Zambian governmenthas attempted to control practically all aspects of theemerald industry. This has made it impossible toexploit the enormous potential of the emerald fieldsin the Ndola Rural District (see, e.g., Milisenda et al.,1999). Optimistic predictions, which project annualproduction of about US$100 million (a value previ-ously attained in the 1980s), have been voiced bysome individuals with intimate knowledge of theZambian emerald industry. If such goals are to berealized, efficient underground mining operationsmust be introduced. This will require governmentsupport and guarantees, before private mining compa-nies will make the substantial investments necessary tomodernize emerald exploration and mining, as well asother phases (e.g., marketing) of the emerald industry.The geological-mineralogical and economic potentialof the Zambian emerald fields is sufficient to justifysuch a commitment.

ZimbabweSteady production of at least 60 kg of mixed-graderough emeralds per month has been achieved sincethe mid-1990s (Zwaan and Kanis, 1997). Although itis difficult to give a precise estimate of reserves, ongo-ing exploration in the Sandawana area indicates thatcurrent production can be maintained for many years.

MadagascarIn general, emerald mining in the Mananjary region isvery costly, due to the lack of a stable infrastructure,poor telecommunications, and expensive technicalmaintenance. Systematic mining is also impeded bythe lack of capital and technical expertise.Nevertheless, the emerald potential of this region isenormous (Petsch and Kanis, 1998).

PakistanThe Pakistani government, which has controlled theemerald industry for decades, has prevented thedevelopment of modern and effective mines and mar-keting strategies. Increased production can only beachieved when the following are achieved: reductionof government interference, large investments of capi-tal, and acquisition of sufficient technical expertise forthe operation of modern large-scale mines.

AfghanistanMining activity in Afghanistan, including emerald

production, has always been more dependent onpolitical-military conditions than on mineralogical-geological factors. Currently, emeralds are beingmined in the Panjshir Valley, although there is nosteady production, at least “officially” (Giard, 1998).Comprehensive studies by Russian geologists indicatethat the region has significant gemological potential,but precise data on the emerald reserves are lacking.

Russia (Ural Mountains)Although no new emerald deposits have been discov-ered in the Urals since 1945 (Laskovenkov and Zher-nakov, 1995), geological studies suggest that onlyabout 30%–35% of the known reserves have beenworked to date. Future prospects depend mainly onthe implementation of cost-effective mining opera-tions along with a realistic marketing concept for theproduction.

RE F E R E N C E S

Giard D. (1998) Les émeraudes de la vallée du Panjshir. InD. Giard, G. Giuliani, A. Cheilletz, E. Fritsch, and E.Gonthier, Eds., L’émeraude, Association Française deGemmologie, Paris, pp. 177-184.

Laskovenkov A.F., Zhernakov V.I. (1995) An update onthe Ural emerald mines. Gems & Gemology, Vol. 31,No. 2, pp. 106–113.

Lau W. (1998) New finds in Brazil boost production.Jewellery News Asia, No. 169, September, pp. 160, 162,164.

Milisenda C.C., Malango V., Taupitz K.C. (1999)Edelsteine aus Sambia – Teil 1: Smaragd. Zeitschrift derDeutschen Gemmologischen Gesellschaft, Vol. 48, No. 1,pp. 9-28.

Petsch E.J., Kanis J. (1998) Gisements d’émeraudes deMadagascar, région de Mananjary. In D. Giard, G.Giuliani, A. Cheilletz, E. Fritsch, and E. Gonthier, Eds.,L’émeraude, Association Française de Gemmologie, Paris,pp. 1173-1176.

Roditi M., Cassedanne J.P. (1998) L’exploitation des minesd’émeraude et leur context socio-économique au Brésil.In D. Giard, G. Giuliani, A. Cheilletz, E. Fritsch, and E.Gonthier, Eds., L’émeraude, Association Française deGemmologie, Paris, pp. 157-163.

Zwaan J.C., Kanis J. (1997) Update on emeralds from theSandawana mines, Zimbabwe. Gems & Gemology, Vol.33, No. 2, pp. 80–99.

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64 SYMPOSIUM PROCEEDINGS ISSUE

ORTH AMERICA. Gem mining in NorthAmerica has never been extensive, and typi-

cally has accounted for less than 1% of theglobal gem production. Nevertheless, over the yearsthe U.S. has produced more than 60 different coloredgemstones, mostly from relatively small, short-liveddeposits. Some U.S. colored gem areas and depositshave been known for more than a century. Mining atthese deposits generally has been intermittent, howev-er, as new economic zones are found or older zonesare reworked. For example, the pegmatite district inSan Diego County, California, has been famous for itstourmalines since the 1890s (figure 1). Mines such asthe Himalaya, Stewart, and Tourmaline Queen haveenjoyed revitalization and supplied fine gem materialover the past three decades. Since 1976 at theHimalaya mine alone, 10,000 feet (3,075 m) ofunderground tunnels have been driven, with about 2tons of tourmaline recovered to date. The Little Threepegmatites, also in San Diego County, have producedspectacular spessartine and blue topaz. The historicpegmatites in Maine (e.g., at Plumbago and Mt. Mica)have been mined sporadically in the same time frameand also have produced some fine tourmaline.

Arizona produces several important gem minerals.Significant deposits of peridot are located on the SanCarlos Indian Reservation, where magnificent gemrough up to 40 ct have been recovered, althoughmost of the pieces are small. Nearby, fine andraditeand “ruby”-colored chrome pyrope garnets occur.The Four Peaks deposit, located in the ruggedMazatzal Mountains near Phoenix, has recently beenreopened and is producing high-quality amethyst.Although the faceted stones are typically small, the

amethyst is known for its extraordinary “red flash”effect to strong light.

The southwestern U.S. is one of the world’s largestsources of turquoise. Numerous deposits in Arizona,Nevada, and New Mexico produce turquoise, some

Review of Gem Localities inNorth America, Russia, and Southeast Asia

William LarsonPala International

Fallbrook, California

E-mail address: [email protected]

Figure 1. Fine-quality tourmaline is still producedoccasionally from pegmatites in Southern California.These pink, bicolored, and green stones from theHimalaya mine weigh 5.15 c t, 5.83 c t, and 3.77c t, respectively. Photo © Tino Hammid.

N

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GEMS & GEMOLOGY FALL 1999 65

of it magnificent but most of it of lower quality(porous, chalky but amenable to enhancement). Someof the copper mines (e.g., at Morenci) still producemalachite and azurite. Chrysocolla is obtained fromthe Globe-Miami district. These copper minerals arecontinually being exposed during mining operations.Other important gems presently being mined in theU.S. include sunstone (feldspar) from Oregon; sap-phire from two areas in Montana (the in situ YogoGulch deposit and several alluvial sources in the west-ern part of the state); and emerald from Hiddenite,North Carolina. Although recent emerald finds atHiddenite have been encouraging, it remains to beseen whether this deposit can be mined economically.

Much scientific and media attention has beengiven to two rare gem materials that are unique to theUnited States: red beryl from Utah and benitoitefrom California. Extensive (and expensive) develop-ment work by organized mining companies is cur-rently in progress at both of these deposits.

Elsewhere in North America, Mexico has beenthe source of fine amethyst and iridescent andradite,but it is probably best known for beautiful opal fromQuerétaro. In the last few years, some extremely fineopal has been produced, but in small quantities.Although only a limited number of colored gemshave been mined in Canada, British Columbia hasbeen the world’s principal supplier of nephrite forseveral decades. Alberta is the world’s only source of“ammolite,” the nacreous outer shell layer of fossilammonites that can exhibit remarkable iridescence.

Russia. Since the dissolution of the Soviet Union in1991, exploration for, and mining of, colored gems inRussia has undergone tremendous changes. Most ofthe major activity has been in the Ural Mountainswhere the mining of emerald and alexandrite (frommine dumps at Malysheva and Takovaya), as well asdemantoid (at Karkodino mine) has resumed, in mostcases with mixed results. Jadeite has been found atthree locations: the Polar Urals, Kazakhstan, andSiberia. In the Lake Baikal area, pegmatites locallycontain abundant tourmaline. Only time will tell ifthese various deposits can be mined economically andwhether their production will be significant to thegem trade.

Southeast Asia. The production of ruby, sapphire,spinel, and jadeite from historic areas in Myanmar—especially Mogok (figure 2)—is legendary. However,the new production of rubies from Mong Hsu, innortheastern Myanmar, is likely the major gemologi-cal event of the decade in Southeast Asia, as it hasgreatly increased the availability of rubies on theworld market. Concomitantly, there has been a sig-nificant decrease in the production of sapphire fromthe Kanchanaburi district in Thailand, and productionfrom Laos and Cambodia is still affected by politicalturmoil. Vietnam has exciting potential. Its rubies arefabulous. The full significance of Vietnam’s spinel,aquamarine, topaz, and other gems has yet to bedetermined.

Figure 2. Primitive miningtechniques are still employed at

the world-famous ruby minesof Mogok, Myanmar. Photo

by William Larson.

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66 SYMPOSIUM PROCEEDINGS ISSUE

RGUABLY, THE GREATEST SOURCE ofexcitement in the world of colored gem-

stones for the past half-century has beenAfrica. This continent consists of 50 nations; 20 ofthese, as well as the nearby island nation ofMadagascar, produce gemstones. Much of Africa’sland mass is composed of Precambrian rocks, the most

geologically significant of which, from the viewpointof colored gemstones, are found in the MozambiqueOrogenic Belt. This belt extends almost the entirelength of the eastern part of Africa, from Madagascarand Mozambique in the south to Ethiopia and Sudanin the north. Most of the colored gemstone depositsare related to the Pan-African orogeny (i.e., a series ofmetamorphic events and associated mineralizationsthat occurred between 800 and 450 million years ago,which were superimposed on the Mozambique Belt).

As diverse and vast as the continent is, so too isthe colored gem potential. In order to predict thispotential, as judged by the number of new gemstonediscoveries, it is worthwhile to examine Africa’srecent gemological past. This continent, with all itsinherent difficulties, has yielded amazing finds of:tanzanite in Tanzania (figure 1); tourmaline fromMozambique and Namibia; very fine aquamarinefrom Mozambique; and tsavorite from Kenya,Tanzania, and Mali. Further, the Southeast Asiandominance in ruby and sapphire is being challengedby Tanzania, Kenya, and Malawi. Alexandrite, cat’s-eye chrysoberyl, and sapphire—in qualities that rivalthose from Sri Lanka—were recently discovered inthe Tunduru area of southern Tanzania (figures 2 and3). Mozambique has yielded spessartine garnet that iscomparable to the “Mandarin” garnet from Namibia.Nigeria also has produced fine spessartine, as well aslarge amounts of pink, red, and bicolored tourma-line. Zambia and Zimbabwe are regarded as veryimportant sources of fine emerald.

More than ever, Madagascar demands close scruti-ny due to the sheer frequency with which newdeposits are being discovered and the quality of thegems found. Sapphire in colors comparable to thosefrom Kashmir are now mined near Ilakaka, in south-

Colored Stone Sources in Africa and MadagascarAbe K. Suleman

Tuckman Mines and Minerals Ltd.Arusha, Tanzania

E-mail address: [email protected]

Figure 1. Tanzanite is one of the most importantgem materials discovered in the 20th century. Thiscrystal measures 4.4 cm high, and the oval brilliantweighs 10.08 ct. Courtesy of Barker & Co.; photo© Jeff Scovil.

A

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GEMS & GEMOLOGY FALL 1999 67

ern Madagascar. Madagascar is also the source of tour-maline, sphene, apatite, and various garnets. Emeralddeposits have been found near Mananjary, and exten-sive deposits of dark blue sapphire have been minednear Diego Suarez. In the next decade, Madagascarwill likely emerge as one of the most important col-ored gemstone sources in the world.

However, Africa’s streets (or mountains) are notlined with gemstones. Africa is an example of extremes.The inherent difficulties, in most of the mining areas,defy the imagination. These include anarchy, inade-quate communications, difficult climatic conditions,poor infrastructure, insufficient finances, governmentred tape and arbitrary judgments, lack of technologyand appropriate machinery, prevalence of malaria andother diseases, and in some areas warfare. As a result,the foreign investments that are sorely neededthroughout Africa are difficult to obtain for coloredgemstone mining. After discovery has been made, thesystematic extraction of the gems presents another setof problems. Once the easily accessible surface areashave been worked, hand mining becomes difficult,tenuous, and eventually uneconomical, at which timethe area is abandoned. Restarting mining in a localitythat has been desecrated by small-scale miners, even ifmodern machinery and mining methods are used, isusually economically unattractive.

Africa will almost certainly yield more compellingtreasures in the new millennium, but the extent of its

future gemstone wealth will depend on improve-ments in exploration and mining. And, althoughAfrica is rich in colored gems, it is not likely thatthere will be an oversupply for extended periods oftime. New discoveries that yield superb stones aregenerally worked feverishly for a relatively short peri-od of time and soon are exhausted. Thus, Africa willbe a reliable source of significant quantities of coloredgemstones, but the supply will be erratic.

Figure 2. This miner is digging for gem-bearing gravels atLibafu in the Tunduru region of southern Tanzania.Photo by Horst Krupp.

Figure 3. A stunningvariety of gems havebeen recovered from thevast alluvial deposits inthe Tunduru region ofsouthern Tanzania.The gemstones shownhere consist of sapphires,spinel, chrysoberyl, andgarnet (approximately0.5–2 ct). Courtesy ofHorst Krupp; photo byShane F. McClure.

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68 SYMPOSIUM PROCEEDINGS ISSUE

Colored StoneDistribution

Colored StoneDistribution

Colored StoneDistribution

INCE THE ASIAN COLORED STONE marketspeaked in 1990, poor economic conditionshave caused them to stagnate. In particular, the

currency crisis that originated in Thailand in 1997 hasseverely damaged the economies of the area. Thisabstract will investigate past and present market con-ditions, particularly in Japan, and present ideas forreviving the market from a global viewpoint.

Recent History:Gradual Growth, Drastic DeclineFigure 1 shows Japan’s gem and jewelry importsbetween 1965 and 1998. Total imports of US$35million in 1965 increased by over 100 times to justunder $4 billion by 1990. It is noteworthy that theJapanese market, which 30 years earlier had account-ed for just a few percentage points of world jewelry

Will There Be Another ChanceFor Business in the Asian

Colored Stone Jewelry Market?Yasukazu SuwaSuwa & Son, Inc.

Tokyo

S

Figure 1. The Japanese jewelry industry experienced extraordinary growth from 1985 to1990. Since 1995, however, the economic crisis in Japan has resulted in drastic declines inimports of jewelry and especially loose diamonds and colored stones.

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GEMS & GEMOLOGY FALL 1999 69

consumption, surpassed one-third of the world totalby the early 1990s. During this same 25-year period,the exchange rate went from 360 to 144 yen per dol-lar, and per-capita gross domestic product increasedfrom $993 to $24,164. These statistics illustrate howjewelry purchases rise as a society becomes moreaffluent.

The increase in gem and jewelry imports between1985 and 1990 shows the effect of the expansion ofthe Japanese market during the “bubble” economy—aperiod of low capital costs and an extraordinary appre-ciation of asset prices that lasted from 1986 to 1991.The exchange rate dropped from 144 yen per dollarin 1990 to 94 yen per dollar in 1995. AlthoughJapan’s economy had already collapsed by 1995, over-all imports did not decrease up to that year because ofthis stronger yen. Between 1990 and 1998, imports ofruby, sapphire, and emerald had decreased drastically,by 80%. Jewelry imports dropped only 27% between1995 and 1998, compared to decreases of over 60%for diamonds and 70% for colored stones (other thanruby, sapphire, and emerald) during that period. Thiswas a result of sustained sales of branded jewelry bycompanies such as Cartier, Tiffany and Co., andBulgari.

Future ProspectsThe future of the Asian market for gems and jewelrydepends on the success with which these countrieschange to a global-minded social structure. We needto keep abreast of changes in the politics, economies,and societies of Japan, China, and other Asian coun-tries. Since jewelry is a long-term, big-ticket pur-chase, consumer confidence is especially important

for reviving the market, not only in Asia but also ona global scale. Thus, treated gemstones must be clear-ly disclosed as such when they are sold. It is ofparamount importance that we as an industry workto increase confidence in our products. The Internetwill undoubtedly be a major force in the transforma-tion of the colored stone jewelry market. TheInternet will facilitate the immediate, efficient, andaccurate transfer of information. As a result, the valueof jewelry as an asset will become even clearer,which will greatly enhance the appeal of these prod-ucts. Since Internet business is not conducted face-to-face, product confidence is especially importanton-line. Increased product reliability will allow forsmoother Internet transactions.

In summary, a global-minded social structure,greater consumer confidence in gems, and the spreadof Internet business are key to the revival of the col-ored stone jewelry market worldwide (figure 2).E-mail address: [email protected]

Figure 2. A three-fold solution could help revive thedemand for colored stone jewelry in Asia and worldwide.

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70 SYMPOSIUM PROCEEDINGS ISSUE

ARKETING COLORED GEMSTONES in the United States requires a proper under-standing of the impact of consumer confi-

dence and trust in our products. The two key ques-tions we must ask are: How do we foster and main-tain that trust? How do we promote a positive imageto the consumer? Efforts made to answer these ques-tions will yield a positive response from the con-sumer. Action in the following areas can go a longway toward addressing these concerns.

First: Participate in consumer education.Responsible use of terminology regarding productcontent and its effect on pricing is essential. Use“friendly” language (see, e.g., AGTA’s [1999]brochure “Gemstone Enhancements: What YouShould Know”).

Second: Don’t underestimate the power ofnegative press. The Diane Sawyer exposé “All thatGlitters” in her Prime Time Live segment (February1998) highlighted fraud in the jewelry industry:“Buyer beware!” This negative press caused seriousripples in consumer confidence, resulting in afall-off in sales of emeralds, Native American jewelry,and other colored stones (both natural and synthetic).

Third: Use the trade associations.• American Gem Trade Association: Fosters respon-

sible promotion of colored gemstones, and providesinformation for the retailer to share with the con-sumer. Also maintains a code of ethics, with manda-tory member compliance.

• American Gem Society: Provides marketing sup-port for the retailer and information for the con-sumer; maintains high membership/vendor standards.

• Jewelers of America: Provides extensive marketcooperation with other trade groups; furnishes mar-keting support for retailers and consumer education,with an emphasis on retail jeweler issues.

• Jewelers Vigilance Committee: Fosters ethics andintegrity in the jewelry industry. The JVC is the jew-elry industry watchdog. Violation of FTC guidelinesfor consumer protection is a key concern for JVC.

Fourth: Use gemological laboratories. Valuecannot exist without trust. The laboratory commit-ment to accuracy is, in many cases, the basis of trust—and, therefore, a building block of “value.”

Fifth: Avoid risky marketing strategies. Massmarketers and other large (and small) retailers oftenignore nature’s limited ability to produce gem materi-als in the quality/clarity/color and quantity they seek.Mass marketing requires product uniformity—oftenin defiance of nature’s production limits. Some prod-ucts sold by mass marketers—on television and othermedia—are susceptible to fraudulent substitution ofsynthetics or imitations for natural stones.

Sixth: Follow the FTC Guidelines. These are avail-able through the trade organizations or can be down-loaded directly from the Internet (www.ftc.gov). TheGuidelines specify the important differences betweennatural, synthetic, and imitation. Know the acceptedalternative language for these and other terms, as per-mitted by the FTC. For example, use pearl alone onlyif it’s a natural pearl. If it’s not natural, it’s a culturedpearl, a simulated pearl, or an imitation pearl (again, seethe Guidelines). Be aware of these potential abuses andbe prepared to act when you see likely violations.Report them to the JVC.

Consumers thrive on well-presented informationabout colored stones and their enhancements. If youmarket colored stones in the United States, learn thedisclosure requirements and make them your own.There is no avoiding responsibility if you fail to “dis-close.” There is significant liability for failure to do so,and it can be very costly.

Snake Oil or Cedar Oil: Have Your Colored Stones Been Enhanced, and Are You Telling the Tale?

Gerald ManningManning International

New York

M

E-mail address: [email protected]

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GEMS & GEMOLOGY FALL 1999 71

ITHIN SOUTH AMERICA, the major sup-pliers of gems are Brazil and Colombia,

whereas the largest jewelry manufacturing andconsuming markets are Brazil and Argentina, fol-lowed by Venezuela, Chile, Colombia, Peru, andBolivia.

Mining, Marketing, and Manufacturing in BrazilFor years, Brazil has stood as the world’s major pro-ducer of colored gems (in terms of gem varieties),leading the production of Imperial topaz (figure 1),aquamarine (figure 2), tourmaline, amethyst, andchalcedony, among others. However, a combinationof factors has drastically reduced the country’s gem-mining activity in the last five years. The traditionalgarimpeiro (i.e., the folkloric independent miner, whois driven by dreams of hitting the jackpot) has guaran-teed the supply of most of Brazil’s gems for the last sixdecades. The Brazilian government has introducednew regulations for the working conditions of thegarimpeiros, and the new constitution requires that theindependent miners form cooperatives with strictenvironmental controls—and, thus, additional invest-ments for infrastructure.

Today, most of the mining properties are con-trolled by mining companies or individual landown-ers. At this time, the landowners are giving priority toagricultural and cattle breeding activities over gemmining. Perhaps most importantly, gem prices havenot kept pace with the rapidly increasing miningcosts, so many mines have been forced to shut down.

And because of the high investment risk involved ingem mining, especially for colored gemstones, fewprivate domestic or foreign companies are now get-ting involved in such ventures. With the exception ofdiamond, emerald, alexandrite, and Imperial topaz,which hold a higher intrinsic value, there are current-

South America: The Birth of a New Jewelry-Consuming Market

Daniel André SauerAmsterdam Sauer

Rio de Janeiro, Brazil

E-mail address: [email protected]

Figure 1. Imperial topaz has been mined in OuroPreto, Brazil, for more than 200 years. The pinktopaz in the top ring weighs 5.35 ct, and the deep“salmon”-colored topaz in the bottom ring is 7.08 ct;both are set with diamonds in 18K gold. Courtesy ofAmsterdam Sauer Jewelers —Brazil.

W

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72 SYMPOSIUM PROCEEDINGS ISSUE

ly no organized gem-mining operations in Brazil. Thereduction in Brazil’s gem output is expected to lastindefinitely, unless new incentives are created or newimportant discoveries are made—usually by accident,as has historically been the case for most Braziliangems.

On the brighter side, the Brazilian jewelry indus-try has been experiencing tremendous growth sinceJuly 1994, when a new economic stabilization planbegan. The drastic reduction of inflation was reflectedimmediately in the greater buying power of the pop-

ulation. Brazilian consumers have been buyingdurable goods as never before. The result was agrowth in jewelry consumption of no less than 100%,in a four-year period, with Brazil’s jewelry marketworth an estimated US$1 billion (including informalactivities) in 1998. At the same time, modernization,increased productivity, quality-control programs and,most importantly, creativity, have transformed Brazil’sjewelry-manufacturing industry in less than five years.By 1998, the jewelry industry employed about onemillion people and consumed around 40 tons of gold.Most of the jewelry was manufactured by the 1,200small and middle-size local domestic industries, butimported jewelry, mainly from Italy and Asia, alsosupplied the market.

According to the World Gold Council, Brazilranks as the world’s 12th-largest gold consumingcountry. Provided Brazil sustains its economicstrength, the jewelry market will certainly continue togrow there and in South America as a whole.

ColombiaColombia stands out as the world’s major producer ofemeralds, with an estimated market value of $500million per year. Although the country lives in a con-stant struggle to overcome its internal problems, theemerald market has been an important economic andsocial activity for centuries. The historic mine atMuzo is still the most important one for the quality ofemeralds produced, but Coscuez is the most produc-tive one. New investments have been directed towardthe Chivor mining complex. During the WorldEmerald Congress in Bogotá in 1998, important issuessuch as methods of clarity enhancement, grading stan-dards, and certification were discussed, but these haveyet to be resolved. The industry urgently awaits theestablishment of new universally accepted proceduresto address these issues. It is the obligation of our tradeto restore credibility to this important gemstone.

Figure 2. Brazil is noted for the fine aquamarine pro-duced there. These “rough” aquamarine beads(approximately 15 mm in diameter) provide a novelcompliment to the baroque pearls and the 19.5 ctNigerian tourmaline enhancer. Courtesy of SusanSadler Fine Jewelry Design.

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GEMS & GEMOLOGY FALL 1999 73

O R M O S T O F T H E 20T H C E N T U R Y,Japanese Akoya cultured pearls dominated

the pearl market. For decades, a strand ofAkoya cultured pearls (figure 1) has been a staple ofthe jewelry wardrobe.

The Present Pearl production in Japan has been declining since1992, because Akoya oysters have been dying in greatnumbers. In 1997, massive Akoya oyster deaths esca-lated to become a nationwide problem, as the pro-duction of cultured pearls dropped to less than one-third the usual 70 ton harvest. This has been com-pounded by a reduction in the quality of these pearls.

There appear to be three main causes for theAkoya oyster mortality: red tide, formalin, and disease.

Red Tide. In 1992, a unique “red tide”— a suddencolor change of the seawater, usually to red—killedmany Akoya oysters in Ago Bay. Subsequent researchbrought the following facts to light:

• The red tide was caused by a new phyto-plankton called Heterocapsa circulariscarma.

• In several minutes, the plankton killsbivalves, such as Akoya oysters.

• Agitating mud on the sea floor, where redtide plankton reside, can carry the planktontoward the ocean’s surface where they maymultiply and cause the red tide.

• At present we cannot prevent red tides, butwe can predict them at least a week inadvance and evacuate the oysters to saferareas.

Formalin. Formalin is a formaldehyde solution. This

toxic substance is widely used to cure disease at blow-fish culturing farms, which are located within about300 m of the Akoya farms. Although it is difficult toprove a link between formalin and the Akoya oyster

The Present and Future of Akoya Cultured PearlsShigeru Akamatsu

K. Mikimoto & Co. Ltd.Tokyo, Japan

Pearl SourcesPearl Sources

Figure 1. Japanese Akoya cultured pearls arerenowned for their attractive appearance and highluster. Photo courtesy of Mikimoto.

F

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74 SYMPOSIUM PROCEEDINGS ISSUE

deaths, pearl farmers strongly oppose the use of forma-lin from an environmental and food-safety standpoint,as well as for its possible effects on oysters. As a reme-dy, Japan’s Fishery Agency has recommended the useof a formalin substitute at the fish farms. The fishfarmers have complied, and the situation is improving.

Disease. Research eventually showed that a virus wasa contributing factor in the Akoya oyster deaths. Tocounteract the virus, we are now taking the follow-ing measures:

• Only healthy oysters are being bred.

• Healthy oysters are kept in virus-free cul-turing tanks, and/or their sperm is pre-served in liquid nitrogen.

• Infected oysters are eliminated wheneverand wherever they are found.

• Every effort is made to avoid excessivestress to the oysters.

Chinese Akoya Pearl CultivationFull-scale production of Akoya cultured pearls startedin China around 1983. Now, Chinese Akoya cul-tured pearls hold a solid position in the world pearlmarket. At about 25 tons per year, China’s volumetoday is about the same as Japan’s. Although ChineseAkoya cultured pearls do not fully match the qualityof their Japanese counterparts, they are widely export-ed as commercial merchandise. If Japan does notmake the utmost effort to produce good-qualityAkoya pearls, Chinese Akoyas will probably driveJapanese Akoyas out of the world market.

The FutureAbove all, Japan urgently needs to revive Akoya cul-tured pearl production (figure 2). New ideas andtechniques must be implemented. If farmers continueto use the same techniques as they have in the past,they cannot expect improvement.

In addition, to maintain the pearl industry’s pros-perity, we have to educate consumers so they canmake intelligent choices. Globalization of the pearlindustry is imminent. Therefore, establishing a uni-versal standard for cultured pearls is critical. The timeis right for the pearl industry to come together to dis-cuss pearl nomenclature, manufacturing, and quality.As president of the CIBJO (International JewelleryConfederation) Pearl Commission, I propose to holdsuch a conference next year in Kobe during theCIBJO congress.

Figure 2. Japanese Akoya pearl farms such as this arestruggling to maintain production despite widespreadoyster mortality. Photo courtesy of Mikimoto.

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GEMS & GEMOLOGY FALL 1999 75

S WE APPROACH the new millennium, wefind the world of pearls even more excitingthan at the turn of the 20th century, when

Kokichi Mikimoto of Japan started culturing saltwa-ter shell-section Akoya pearls. During the 20th cen-tury, we have seen the development of South Seawhite and “gold” saltwater shell-section culturedpearls, the advent and demise of Japanese freshwatermantle-section cultured pearls, and the rise of bothPolynesian saltwater shell-sectioned cultured pearlsand, most recently, Chinese mantle-section freshwa-ter cultured pearls. (The term mantle section refers tothe mantle tissue used for pearl nucleation; such cul-tured pearls are commonly referred to as “tissuenucleated.” The term shell section refers to the shellbead that is commonly used to nucleate culturedpearls, commonly referred to as “bead nucleated.”)

Freshwater cultured pearls, grown by both shell-section and mantle-section techniques, are currentlyvery important in world markets and are expected toplay an even greater role in the new millennium.Today, freshwater shell-section pearl culturing isoccurring in China, Japan, and the U.S., althoughonly the Chinese product is significant in the worldmarket. Commercially available shapes are primarilycoin, rectangular, and square, but there is expecta-tion of considerable production of round shell-sec-tion pearls from China during the next 18 to 24months.

Freshwater mantle-section cultured pearls nowhold the largest share in the world pearl market,with the advent of high-grade mantle-section

Chinese freshwater pearls causing a lot of excite-ment. These cultured pearls are often called “purepearls,” because typically there is no detectablenucleus, and concentric layers are evident through-out the pearl (see figure).

As we prepare to enter the 21st century, theChinese pearl farmers are dominating the worldpearl market. Production of both mantle-section andshell-section cultured pearls in 1999 is expected tobe between 800 and 900 metric tons, in sizes from 1to 15 mm, with a wide variety of shapes and a broadrange of colors; this output is expected to increase to1,500 metric tons by 2005. Saltwater pearl farmersare being challenged by the lower production costsand enormous production capacity accomplished bythe Chinese pearl farmers.

The new millennium will hold fantastic opportu-nities for the consumer, as a larger variety of high-quality freshwater cultured pearls become availableat competitive prices.

Freshwater Pearls: New Millennium —New Pearl Order

James L. Peach Sr.American Shell Company and U.S. Pearl Company

Camden, Tennessee

E-mail address: [email protected]

A

This mantle-section Chinese freshwater cultured pearl(12 mm in diameter) has been sawn in half to revealmultiple concentric layers and no evidence of a nucleus.

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76 SYMPOSIUM PROCEEDINGS ISSUE

ROUND THE TIME that Westerners dis-covered Tahiti in 1767, the black pearl had

already earned a reputation in Europe andelsewhere as the “pearl of queens” and the “queen ofpearls.” It took some 120 years before the talents ofpeople were combined with those of nature to pro-duce what today is known as the Tahitian culturedpearl (see figure). However, the first successes did notoccur regularly until the late 1960s to early 1970s.Fortunately for Tahiti and the nearly 400 pearl farmsthat operate there today, cultivation, harvesting, selec-tion, and promotion efforts have improved over thepast 26 years. That is why exports of Tahitian cul-tured pearls reached a record of more than 6 tons in1998, with a collective value of $134.5 million.

My personal opinion is that, ultimately, Tahitiancultured pearl production should be limited to a max-imum of 8 tons yearly. It will probably reach thatlevel in another four to five years. When it does, Tahiti’s

government has targeted a value of some $300 millionfor those 8 tons of cultured pearls. Why such a bigchange in price per ton? Simply because a new andincreasingly concerted effort is being made by thegovernment and the pearl-producing industry to cul-tivate and export only the finest-quality Tahitian cul-tured pearls. On January 1, 1999, the governmentimposed new export classifications and regulationsaimed at ensuring that only a high-quality productenters the world pearl market. They effectively banthe export of rejects and non-nacreous “pearls,” suchas calcite “pearls” and organic “pearls.” According tothe government’s official definition, the Tahitian cul-tured pearl is one produced only from the black-lippedoyster Pinctada margaritifera, variety cumingi, which isthe official oyster used on pearl farms in FrenchPolynesia. The new export regulations stipulate thatthere are only four products of Tahiti’s official pearloyster that qualify for the label “Made in Tahiti.”They are the Tahitian cultured pearl, the Tahitianmabé, the Tahitian keshi and the Tahitian mother-of-pearl. Note that the new regulations have notchanged the export tax on loose Tahitian culturedpearls. Half of that tax still goes to the government,and the other half goes to Perles de Tahiti, a nonprof-it economic interest group that has done much topopularize the Tahitian cultured pearl in the gem,jewelry, fashion, media, and entertainment industries.

Japan is our number one export market, followedby the U.S. and Hong Kong. However, the promo-tional efforts by Perles de Tahiti have opened newmarkets for Tahitianan pearl exports, such as LatinAmerica, Spain, England, Austria, Germany,Belgium, Eastern European countries, and evenRussia. The trade association also has increased activi-ty in existing markets, such as France, Italy,Switzerland, Canada, and the U.S. The producers andgovernment alike are optimistic that demand willcontinue to grow for the fine-quality cultured pearlexported from Tahiti.

The Tahitian Cultured Pearl: Past, Present, and FutureRobert WanTahiti Perles

Tahiti, French Polynesia

New government regulations ensure that only high-quality Tahitian cultured pearls, such as those shownhere, enter the world pearl market. Courtesy of GIEPerles de Tahiti; photo by M. Roudnitska.

A

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GEMS & GEMOLOGY FALL 1999 77

rief Historical BackgroundIn 1928, a team of Japanese, led by Dr.Sukeo Fujita, harvested the first cultured

South Sea pearls at Buton, Celebes (now calledSulawesi), in Indonesia. The team was financed byBaron Iwasaki of Mitsubishi Goshi-Gaisha of Tokyo(better known today as Mitsubishi Corp.).

From 1928 until the outbreak of World War II in1941, the project produced, on average, 8,000 to10,000 cultured pearls per year. The majority of thepearls cultivated at Buton were 8-10 mm in diameter,with 12 mm being the rare exception. If we recallthat during the same period Akoya pearls cultivated inJapan had an average diameter of 3–4 mm, there islittle wonder that these first South Sea pearls createdquite a sensation.

For the period during Wold War II and immedi-ately after, from 1941 to 1956, we found no recordedproduction of any significance. In 1954, however,Kichiro Takashima established a South Sea pearl cul-ture project in Burma (now Myanmar), and the firstregular harvests started in 1957. In 1956, anotherJapanese pearling pioneer, Tokuichi Kuribayashi,started farming in Australia and harvested his first cropin 1958. During the 1960s and 1970s, various farmsopened in Australia, Indonesia, the Philippines,Malaysia, and Thailand. Nevertheless, we estimatethat in the early 1980s, the total marketable part ofthese productions was around 95 kan, or a maximumof 100 kan (1 kan=3.75 kg). Since then, however,development has been truly phenomenal.

Current Production EstimatesHow large is our industry today? We estimate that in1999, the entire saltwater cultured pearl industry (i.e.,organized pearl farms) will produce pearls worthapproximately US$490 million (figure 1). WhiteSouth Sea cultured pearls are estimated to represent$217 million of this value, which translates into amarket share of 44.4%; the major producers areAustralia, Indonesia, and the Philippines (see table).

Main Characteristics by CountryAustralia

• Australia produces almost half of the world’swhite South Sea cultured pearls by weight, andalmost two-thirds by value ($136 million).

Cultured South Sea PearlsAndy MullerGolay BuchelKobe, Japan

Figure 1. South Sea pearls from Australia, Indonesia,and the Philippines represent almost half of the worldsaltwater cultured pearl production estimated for 1999.

Leading producers of cultured South Sea pearls (1999 estimates).

Country By weight (kan) By value (US$)

Australia 47.2% (450) 62.9% ($136.5 million)Indonesia 39.8% (380) 28.7% ($62.3 million)Philippines 10.9% (104) 7% ($15.3 million)

B

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78 SYMPOSIUM PROCEEDINGS ISSUE

• Approximately 90% are cultivated along thenorthern coastal areas of Western Australia.

• The Western Australian Pearling industry is wellorganized and efficient. Sixteen license holdersshare a total annual oyster quota of 572,000(Pinctada maxima) shells fished from the wild, plus350,000 propagated in hatcheries.

• So far, these “hatchery options” have not beenfully utilized. The first pearls cultivated fromhatchery shells in Australia were harvested in1998, but they represented less than 3% of thetotal. However, farmers have now begun to usethese hatchery options, so they should start tohave an impact in the market after the year2000.

• The official policy in Australia of limiting outputby quota control, to keep the supply of culturedSouth Sea pearls from exceeding demand, is nowunder review and may change in the not-too-distant future.

• South Sea pearls cultured in Australia are, onaverage (at about 13 mm), the largest in theworld. Their colors are more “silver,” white, andblue when compared to their counterparts fromIndonesia and the Philippines.

• Pearl growth usually takes 24 months, with ini-tial seeding operations and harvests taking placeduring the cooler months of June, July, andAugust.

Indonesia

• Unlike Australia, where production is concen-trated in one particular coastal area, the farms inIndonesia are spread over the entire archipelago,with the main concentration in the islands east ofBali to Irian Jaya.

• The entire South Sea pearling industry reliesentirely on Pinctada maxima oysters propagated inhatcheries. The fishing of wild pearl oysters ceasedprior to the mid-1990s.

• Indonesia’s industry is not strictly regulated, andno quotas exist regarding the number of oystersthat farmers can seed and breed. Also, the gov-ernment has not set any limit on the number oflicenses it issues.

• Indonesian seawater temperatures are relativelystable (26º–30ºC, versus 18º–31ºC in Australia),which promotes regular, even growth, withoutAustralia’s seasonal limitations. Because the oys-ters (and the pearls inside) usually grow faster,pearl growth periods can be shorter, between18 and 24 months, depending on location andconditions.

• The pearls cultivated in Indonesia are smaller(approximately 10.5–11 mm on average) thanthose from Australia. They tend to have awarmer color (see, e.g., figure 2), often with tintsof “champagne,” “cream,” yellow, “gold,” andpink. The nacre is usually thick, and the pearlshave a high luster.

• There are more than 50 farm sites in Indonesia,and it is estimated that more than 2 million oys-ters will be seeded this year.

• Indonesia has good future potential. Althoughthe production is still smaller than Australia interms of total value and weight, it has alreadysurpassed Australia in terms of the number ofpearls it cultivates.E-mail address: [email protected]

Figure 2. Note the warm “golden” color of theseSouth Sea cultured pearls. Photo © GIA andTino Hammid.

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GEMS & GEMOLOGY FALL 1999 79

The Philippines

• Similar to Indonesia, the government sets nolimit on the number of licenses it issues, or on thenumber of oysters to be seeded.

• A major breakthrough with hatchery technologytook place over the past three years, and theindustry is developing fast nowadays, mainlyusing propagated Pinctada maxima oysters.

• In the past, most farms were spread throughouta wide area, mainly in the south. Today, how-ever, the largest farms are located on the south-western island of Palawan, which has becomethe largest pearl-producing area in thePhilippines.

• The pearls cultivated in the Philippines resembletheir counterparts from Indonesia. They are rela-tively small, have a thick nacre, and usually showa good luster and a warm color.

• The largest farm reportedly seeded over 200,000oysters this year. Smaller farms are seedingbetween 20,000 and 50,000 oysters. The totalnumber of oysters seeded is most likely in excessof 500,000.

Others

White South Sea pearls also are cultivated in coun-tries such as Malaysia, Vietnam, Myanmar, andThailand. Myanmar and Thailand are progressingsteadily, and it is possible that their annual produc-tion will reach between 30 and 70 kan each withinfive years.

Some Thoughts for Today . . . And for TomorrowThe global breakthrough in hatchery technology forfarming the white-lip pearl oysters (Pinctada maxima)gave the biggest boost yet to this industry. Just 15years ago, the entire industry relied on oysters fishedin the wild. This year, more than 80% of the world’swhite-lipped South Sea oysters seeded for pearls werepropagated in hatcheries.

At this writing, the Australian cultured pearlindustry is being reviewed, especially in light of a“competition policy.” The issues are extremely com-plex, and it will probably take a few years for deci-sions to be made and potential new laws to be imple-mented. Regardless of the outcome, Australian pro-duction will continue to increase, especially after theyear 2000, when the pearls cultivated in propagatedoysters will reach world markets.

Indonesia has great potential, but production ismore difficult to forecast. One of the many reasons isthat its harvests are susceptible to ocean conditionssuch as “El Niño” or “La Niña,” and they may bedisrupted by earthquakes and tidal waves. The indus-try suffered heavy setbacks in the 1980s and 1990s.Some of the largest producers of the past are practical-ly out of business today. Meanwhile, others haveemerged and the industry is again prospering. ThePhilippines, Myanmar, and Thailand are also on anexpansion course.

While the past century belonged to the Akoyacultured pearl, there is little doubt that pearls cultivat-ed in the South Seas will dominate saltwater pearlproduction in the new century.

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80 SYMPOSIUM PROCEEDINGS ISSUE

E W E L E R S F A C E L E G A L A N D E T H I C A L

requirements to disclose information on theidentity of the gem materials that they sell

their customers. These requirements presupposethat the gems can be identified, either by the jewelersthemselves or by laboratories that support the jewelrytrade by issuing gem identification reports.

The past decade has witnessed the continuedintroduction of diamond treatments, synthetic dia-monds, and even a significant new diamond simu-lant—synthetic moissanite—into the jewelry trade.Jewelers must become aware of the existence of thesenew treatments and materials. They also must learnwhich standard gemological testing instruments andtechniques are most helpful in their identification, andat what point they should turn to a gemological labo-ratory for assistance.

Diamond TreatmentsThe diamond treatments most commonly encounteredinclude methods to improve apparent clarity, such ascleavage- or fracture-filling (widespread occurrence) orcoating (rarely seen), and to enhance color using expo-sure to radiation and/or heat (seen among some col-

ored diamonds). Diamonds with cleavages that havebeen filled with a glass-like material can be recognizedby the distinctive interference (“flash”) colors displayedby the filled areas, which can be observed with magni-fication (see, e.g., McClure and Kammerling, 1995).Diamonds with a surface coating often exhibit anunusual color or appearance, one that is not consistentwith their other gemological properties. Colored dia-monds that have been treated by exposure to radiationand/or heat usually require examination with advancedanalytical equipment to detect evidence of treatment.Since exposure of a diamond to radiation and/or heatcan take place in the earth, it is not always possible todistinguish if a particular diamond has been treated.

Synthetic DiamondsSynthetic diamonds, usually in small sizes and typical-ly brownish yellow (but sometimes blue, red, and—rarely—near-colorless), occasionally are encounteredin the jewelry trade. For the most part, the syntheticdiamonds that we have seen in the trade have beenproduced in Russia or the Ukraine. Cuboctahedralcrystals up to a few carats (although usually less than 2ct) can be grown from a molten metal alloy at high

The Ongoing Challenge of Diamond Identification James E. Shigley

GIA ResearchCarlsbad, California

J

Gem Identification

Gem Identification

Figure 1. Among the distinctive characteristics of colored synthetic diamonds are unusual color zoning (leftand center) and a cross-shaped fluorescence pattern (right). Photomicrographs (left to right) by Shane Elen(magnified 20×), John I. Koivula (25×), and Taijin Lu (2.5×).

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GEMS & GEMOLOGY FALL 1999 81

temperatures and pressures. These growth conditionsgive rise to the distinctive gemological properties ofsynthetic diamonds (figure 1). Faceting of these crys-tals yields polished synthetic diamonds that typicallyweigh less than 0.50 ct, and often have a modifiedsquare shape to retain weight (or are fashioned aseven smaller round brilliants). For polished syntheticdiamonds, the distinctive properties include unevencolor zoning, intersecting graining, metallic inclusions(resulting sometimes in attraction of the syntheticdiamond to a magnet), uneven ultraviolet fluores-cence (often stronger to short-wave in comparison tolong-wave UV), and—for near-colorless material—prolonged phosphorescence. The identification ofsynthetic diamonds can be confirmed by advancedspectroscopic and chemical analysis methods. (Forfurther information on the identification of syntheticdiamonds, see Shigley et al., 1995, and the articlescited therein.)

Diamond SimulantsNear-colorless synthetic moissanite currently presentsan identification problem because standard thermalprobes (used to distinguish diamond and imitationmaterials such as cubic zirconia [CZ]) will often mis-takenly identify synthetic moissanite as “diamond.”However, synthetic moissanite can be separated by itsnon-isotropic optic character (when examined withmagnification looking through the sample, facet junc-tions will appear “doubled”; see figure 2, left), strongabsorption of light at the blue end of the visible spec-trum, lower specific gravity, unusual needle- or plate-like inclusions (figure 2, right), lack of ultraviolet flu-

orescence, and—often—electrical conductivity (see,e.g., Nassau et al., 1997). The fact that syntheticmoissanite is now available in greater quantities and isbeing distributed worldwide means that jewelerscould encounter it more frequently in the market-place. Therefore, knowledge of these identifying fea-tures is critical.

What the Future HoldsIn the future, it is likely that new methods for treatingdiamonds will be developed or become more promi-nent, such as the new high pressure/high temperaturetreatment that reportedly removes or alters color.[Editor’s note: see the article in this issue on GE-pro-cessed diamonds for further information.] Syntheticdiamonds will continue to be produced, but highcosts and the restricted availability of synthesis equip-ment are likely to limit the number, sizes, and qualityof synthetic diamonds and keep prices high. Jewelerswill need to stay informed about technological devel-opments in diamond treatment and synthesis, as wellas current gem-testing methods, to fulfill their respon-sibilities to their customers.

RE F E R E N C E S

McClure S.F., Kammerling R.C. (1995) A visual guide tothe identification of filled diamonds, Gems & Gemology,Vol. 31, No. 2, pp. 114–119.

Nassau K., McClure S.F., Elen S., Shigley J.E. (1997)Synthetic moissanite: A new diamond substitute. Gems& Gemology, Vol. 33, No. 4, pp. 260–275.

Shigley J.E., Fritsch E., Reinitz I., Moses T.E. (1995) Achart for the separation of natural from synthetic dia-monds. Gems & Gemology, Vol. 31, No. 4, pp. 256–264.

Figure 2. Synthetic moissanite can bereadily separated from diamond by itsdoubly refractive optic character, asrevealed by the doubling of the facetjunctions as you look through the stone(left). Synthetic moissanite also maycontain distinctive tube-like or flat,reflective plate-like inclusions (right).Photomicrographs by Shane Elen, mag-nified 15×.

E-mail address: [email protected]

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82 SYMPOSIUM PROCEEDINGS ISSUE

HETHER A RUBY OR SAPPHIRE is beingbought, sold, or appraised, the fact that it

has or has not been enhanced by heat maymake anything from a minor to a major difference inits value. Hence, today one of the key trade concernsupon reading a laboratory report is whether a deter-mination has been made of the heated or unheatednature of a ruby or sapphire. In all treatments, thegem world is also moving closer to fully implement-ing a “Total Disclosure” policy, and so beyond thepricing factor may soon lie a very strong moral, if notlegal, reason for requiring such a determination.

Several factors are of critical concern in the identi-fication of ruby and sapphire, including: how todetermine enhancement by heat, residues from theheating process, glass and other fillings, color andasterism surface diffusion, and synthetic rubies andsapphires. Given that today all major gemologicaltesting laboratories enlist advanced technology foridentification procedures, it is also important tounderstand the information provided by ultraviolet-visible and infrared spectrometers, energy-dispersiveX-ray fluorescence (EDXRF) chemical analysis, andlaser Raman microspectrometry.

Enhancement by HeatThe appearance of silk may help in the determinationprocess; that is, the presence of unaltered silk willindicate that the stone has not been heated. In bluesapphire, internal diffusion of blue color in areas thatwere once occupied by individual rutile needles indi-cates that the stone has been heated. “Silk” formationscomposed of oriented fine “dust-like” inclusions alsomay indicate heat treatment for stones from certainlocalities, such as Sri Lanka.

The appearance of included crystals and feathersalso may help. Feathers that are composed of “bubble-like” formations, or have an overall “glassy” appear-

ance, and crystals with a melted or “snowball”appearance (figure 1) are good indicators of heatenhancement. However, perfectly formed feathersand crystals point toward an unenhanced stone.

Some absorbance observations also may assist indetermining enhancement by heat (see, e.g., Schwarzet al., 1996). Similarly, some heat-treated stones havedistinctive fluorescence reactions, such as the chalkyappearance of some heat-treated blue sapphires whenexposed to short-wave ultraviolet radiation.

Diffusion of Surface Color and AsterismThe most common color produced in “surface-colordiffused corundum” is blue, but other colors, such asorange and red, also may be seen. The simplest iden-tification technique is to examine a suspect stone overa white diffuser plate, so that color concentrations willbe observed at facet junctions if the stone is surface-color diffusion treated. More definition is gained ifthe stone is immersed in methylene iodide.

Using standard gemological microscopic tech-niques, but particularly with overhead reflected light,the phenomena that cause surface-diffused asterismwill be observed only in a layer near the surface of thestone, not throughout the stone as would be the casefor a natural star sapphire or ruby.

Glass in Cavities and Open Fractures, andResidues within Essentially Closed FissuresEither by design or by accident, glass may be deposit-ed in open fractures and/or surface cavities during theheat treatment of rubies (and sometimes sapphires). Itis important to disclose the presence of such glass onlaboratory reports and to any potential purchaser of astone. For the most part, the presence of glass isrevealed by its surface luster (figure 2), which is differ-

The Identification of Ruby and SapphireKenneth Scarratt

AGTA Gemological Testing CenterNew York

E-mail address: [email protected]

W

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GEMS & GEMOLOGY FALL 1999 83

ent from that of the ruby host. When making suchobservations, however, one should be aware of otherpossible causes for such differences in surface luster,for example, where natural unaltered or even alteredinclusions have been exposed at the surface during thepolishing process.

Following heating, various residues may be dis-covered within fissures; in these cases, no differenceswill be seen in surface luster, and their presence isrevealed only by internal inspection. Most major lab-oratories will reveal the presence of such residues, andsome quantify the amount using such terms as minor,moderate, and significant.

Separation of Natural from Synthetic GemsTwenty years ago, the separation of natural ruby andsapphire from their synthetic counterparts was notcomplicated by such practices as heat enhancement,which can significantly alter the appearance of naturalinclusions. There also were fewer processes used tomanufacture synthetic rubies and sapphires.

Nevertheless, certain identification principles stillapply; for example, the presence of curved growthlines in ruby or curved color banding in sapphire is asure indicator that the stone is of synthetic origin.However, experience in viewing all the differentkinds of inclusions likely to be present in natural andsynthetic rubies and sapphires is essential if the gemol-ogist is to avoid errors such as mistaking the “melted”inclusions in a heat-treated Mong Hsu ruby for theflux inclusions of a synthetic. It can be equally as cost-ly to mistake the dark or blue zones sometimes pre-sent in a synthetic ruby manufactured by Chatham for

the dark or blue zones expected in unheated roughmaterial from Mong Hsu. The chance of errorincreases when the synthetic has been “manufac-tured” to resemble the external appearance of theMong Hsu material.

Certain inclusions within a synthetic ruby or sap-phire can be very helpful in the identification process,such as platinum platelets and bright orange flux.Growth phenomena such as the undulating structuresseen in hydrothermally grown synthetic rubies andsapphires also are very distinctive, as is the presence ofa partial seed plate.

Identification becomes increasingly difficult whenthere are no inclusions or those present have anunusual appearance. Raman analysis of inclusions maypositively identify the material and, on the basis ofthat information, allow identification of the host.When there are no inclusions, or Raman does notproduce the needed information, then chemical anal-ysis by EDXRF may reveal the presence of trace ele-ments that are indicative of one of the synthetics or anatural source.

UV-visible spectroscopy also may be useful in theidentification of sapphire, especially the geologic ori-gin of a natural stone. When this information is com-bined with trace-element data and a detailed knowl-edge of inclusion scenes from different localities, itmay not only identify the natural or synthetic natureof the stone, but it may also provide information onthe geographic locality of the natural material or themanufacturer of the synthetic.

RE F E R E N C E

Schwarz D., Petsch E.J., Kanis J. (1996) Sapphires from theAndranondambo region, Madagascar. Gems &Gemology, Vol. 32, No. 2, pp. 80–99.

Figure 2. Note the difference in luster between theglass-filled fracture and the host ruby. Photomicrographby Kenneth Scarratt.

Figure 1. Snowball-like inclusions, here surrounded bya stress fracture, are commonly seen in heat-treated sap-phires. Photomicrograph by Kenneth Scarratt.

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84 SYMPOSIUM PROCEEDINGS ISSUE

ARIOUS NONDESTRUCTIVE METHODS areapplied to distinguish natural from hydrother-

mally or flux-grown synthetic emeralds.Microscopic examination is used to determine thepresence or absence of solid, fluid, and/or multiphaseinclusions, as well as for the determination of diagnos-tic growth patterns and color zoning. Inclusions canbe characterized further by laser Raman microspec-trometry or by electron microprobe analysis.Chemical properties of the host material (and some-times inclusions) can be determined by X-ray fluores-

cence or electron microprobe analysis. Absorptionspectroscopy in the visible and ultraviolet ranges candetect the presence or absence of color-causing transi-tion metals such as chromium, vanadium, iron, nick-el, and copper. Infrared spectroscopy can reveal thepresence or absence of different types of watermolecules and/or chlorine.

For most of these techniques, diagnostic propertiesexist that are useful to separate natural from syntheticemeralds, but there are also areas of overlap.Specifically, certain characteristic features are typical

Distinguishing Natural from Synthetic EmeraldsKarl Schmetzer

Research ScientistPetershausen, Germany

Figure 1. These spectra were recorded by means of the energy-dispersive X-ray analysis system of an electronmicroprobe, for natural emeralds from Swat, Pakistan; Miku, Zambia; and Muzo, Colombia—as well asfor the following synthetic emeralds: Russian flux-grown synthetic and Biron hydrothermal synthetic.Characteristic sodium and magnesium peaks were observed for the natural samples from Pakistan andZambia; distinct amounts of chlorine are diagnostic for Biron synthetic emeralds.The peak positions (in keV)are Na-1.0, Mg-1.3, Al-1.5, Si-1.7, and Cl-2.6.

V

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GEMS & GEMOLOGY FALL 1999 85

for either natural or synthetic emeralds if present, buttheir absence is of no unequivocal diagnostic value.The presence of distinct amounts of sodium andmagnesium, for example, is useful to characterizenatural emeralds from numerous sources (figure 1).The presence of these elements can be determined bywavelength- or energy-dispersive X-ray fluorescenceanalysis or electron microprobe analysis, but naturalemeralds from some sources — such as someColombian or Nigerian stones — contain only verylow amounts of sodium and magnesium. Thus, thesodium and magnesium values of these natural emer-alds overlap those of their flux-grown and hydrother-mal synthetic counterparts (again, see figure 1).

The presence of distinct amounts of chlorine—asdetermined by X-ray fluorescence, electron micro-probe analysis (figure 2), or infrared spectroscopy—isused to characterize hydrothermal synthetic emeraldsproduced in China or Australia (Biron). An absenceof chlorine, however, is known not only for naturalemeralds from various sources, but also for flux-grown synthetic emeralds and for some otherhydrothermal synthetic emeralds (e.g., produced inRussia or in Austria [Lechleitner]).

The presence of certain trace elements, such asmolybdenum, is useful to characterize some flux-grown synthetic emeralds (e.g., Chatham, Gilson, andZerfass). However, no residual molybdenum com-pounds are found in natural emeralds, in hydrother-mal synthetic emeralds, or in flux-grown syntheticemeralds that are produced in molybdenum-free fluxcompositions, as is the case for samples grown inRussia from lead vanadate solvents.

An even more complex pattern of overlap isobserved for other features, such as water-relatedinfrared absorption bands. No water is present in flux-grown synthetic emeralds. Absorption bands of watermolecules that are not related to alkali ions (such asl i thium and sodium) are observed for somehydrothermally grown synthetic emeralds, such asLinde and Biron. However, some natural andsome synthetic samples contain comparable amountsof water molecules not related to alkalis, as well as

some alkali-related water. For this group, which con-sists of Russian and Lechleitner hydrothermal syn-thetic emeralds as well as low-alkali-bearing naturalemeralds — such as those from Colombia orNigeria—identical water absorption bands may bemeasured in the infrared. For natural emeralds withhigher amounts of alkali-related water molecules,the infrared spectra again are diagnostic for naturalemeralds.

Consequently, a combination of techniques issometimes necessary to determine unequivocallywhether an emerald is natural or synthetic. In general,gemologists in the major laboratories must decide,after microscopic examination and standard gemolog-ical testing, which additional techniques must be per-formed to determine the origin of a sample.

Figure 2. This energy-dispersive X-ray spectrumof a Biron hydrothermal synthetic emerald wasrecorded by means of an electron microprobe; thesample reveals a characteristic chlorine content aswell as almost identical amounts of vanadiumand chromium. The presence of both color-causingtrace elements, vanadium and chromium (here, at5.0 and 5.4 keV, respectively), is typical for thissynthetic emerald grown in Australia, althoughvanadium and chromium may also be seen inColombian emeralds.

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NE OF THE MOST INTERESTING things aboutworking in a gemological laboratory is the

opportunity to see the most challenging newdevelopments in gemology—often before they areseen by almost anyone else in the field. This discus-sion presents a few of the more interesting or signifi-cant items that have recently come through the GIAGem Trade Laboratory.

Jadeite JadeBecause of the demand for fine-quality jadeite and itsrarity, jadeite is treated in many different ways tomake the most of what little material is available.Small carvings of dark green, nearly opaque jadeiteare hollowed out from the back so that they appear tobe a pleasing (and more salable) lighter green. Becausethe walls of these carvings may be less than one mil-

limeter thick, the back is usually filled with plastic tokeep the jadeite from breaking. We also have seenlarge cavities in bangle bracelets that have been filledwith a plastic mixed with a speckled green material—so the filler blends in with the rest of the bracelet.Several pieces of dyed green jadeite submitted to thelaboratory did not show the characteristic absorptionspectrum used to detect the dye. In addition, we haveseen very believable imitations of fine jadeite, such asdyed quartzite (figure 1).

Imitation TanzaniteWe recently examined an excellent new tanzaniteimitation. The material is synthetic forsterite, a miner-al in the olivine group, which has been doped withcobalt. Its appearance is very similar to tanzanite,including the strong pleochroism characteristic of thatmaterial. However, synthetic forsterite is easy to sepa-rate from tanzanite based on its gemological proper-ties (especially the refractive indices, 1.635–1.670 forforsterite as compared to 1.69–1.70 for tanzanite).

Zachery-Treated TurquoiseThis proprietary turquoise treatment reduces the natu-ral porosity of turquoise, so that the treated materialwill take a better polish than untreated material andwill not discolor by absorbing foreign materials such asoils. It also can darken the color of the material.Extensive testing has not detected the presence of anypolymers or other foreign materials within theturquoise after treatment. One indication of treatment

Identification Challenges of the New Millennium

Shane F. McClureGIA Gem Trade Laboratory

Carlsbad, California

O

E-mail address: [email protected]

Figure 1. Quartzite can be dyed to imitate finejadeite, as illustrated by these 8 mm beads. Photoby Maha DeMaggio.

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GEMS & GEMOLOGY FALL 1999 87

seen in some of the stones that had improved colorwas blue concentrations along fractures. However, ahigher-than-normal potassium content is the only wayat this time to identify the treatment conclusively.

Diffusion[?]-Treated TopazBlue-to-green topaz that reportedly derives its colorfrom diffusion treatment has been available for severalyears now. Whether or not this treatment is actually adiffusion process has not yet been proved, but it issignificant to note that this material is substantially dif-ferent from the pink-, red-, and orange-coated topazthat has been on the market. The coatings that producethese other colors are temporary and will easily scratchoff. The color layer of the “diffused” material has thesame hardness as topaz and has been shown to be verydurable. The color is produced by cobalt, and thestones often show an elevated R.I. (sometimes over thelimits of the refractometer). This treatment creates anextremely thin color layer that can be detected easilyby its spotty appearance in the microscope.

Synthetic AquamarineHydrothermally grown synthetic aquamarine hasbecome commercially available during the last year,and has been sold in Brazil as small calibre-cut goods(figure 2). It appears that the quantities available aresmall and the stones are easy to identify, as they havethe characteristic chevron-like graining seen in manyhydrothermal products (figure 3).

TsavoriteA very significant new deposit of fine-quality tsavoritehas recently been found in southern Tanzania. Manykilos of the material have been recovered, with thebest of the stones being of the finest quality when fin-ished. We discovered some very interesting grainingpatterns in one of the stones we examined. Thisgraining consisted of parallel striations that werecurved in such a way as to remind us of the swirl stri-ae often seen in glass. Fortunately, the stone hadmany other inclusions that proved its natural origin.

Glass ImitationsWe continue to see high-property glass represented asnatural stones. The most recent incident was a greenglass that was being sold as Chinese peridot. This glasshad a very high refractive index (over the limits of the

refractometer), was very clean, and was visually iden-tical to peridot. Gemologically, this material is easy todistinguish from peridot because none of their prop-erties overlap. The greatest danger in this type of imi-tation is when it is sold in the rough or mixed in withparcels of natural stones.

Figure 2. One of the newest synthetics on the mar-ket is hydrothermally grown synthetic aquamarine.The cut samples average approximately 1 ct. Photoby Maha DeMaggio.

Figure 3. The presence of chevron-like grainingproves that the host stone is a hydrothermal synthet-ic, in this case synthetic aquamarine. Photo-micrograph by Shane F. McClure; magnified 25×.

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TreatmentsTreatments

IAMONDS CAN BE TREATED to alter theirclarity or their color. Although modern tech-

nology has increased the number of treatmentsto which diamonds may be subjected, most diamondtreatments still can be detected through careful gemo-logical observation and testing.

Clarity EnhancementA common treatment used in the trade to improveclarity is laser drilling. This technique creates access toa subsurface inclusion which, if it has not been vapor-ized by the laser beam, can then be dissolved by acid.Drill holes can be differentiated from natural etchchannels by their appearance (Johnson et al., 1998).Specifically, drill holes are round in cross-section,whereas etch channels in diamond are square, triangu-lar, or hexagonal.

Clarity also can be altered by introducing a high-refractive index glass into surface-reaching fractures(fracture filling), which greatly reduces their visibility.However, since the glass does not match the refrac-tive index of diamond at all wavelengths, a “flasheffect” is seen when observing the diamond parallel tothe plane of the fracture (McClure and Kammerling,1995). Non-surface-reaching fractures may be filledthrough a drill hole, but the hole itself is usually toowide to be concealed by this treatment. An unfilleddrill hole disperses light around its edges, and may dis-play a subtle partial rainbow when observed perpen-dicular to its length, whereas a filled drill hole mayexhibit pinpoints of light showing various colors (fig-ure 1). Knowledgeable observation with good light-ing and magnification of at least 10× is the key toidentifying clarity treatments.

Identifying Diamond TreatmentsIlene M. Reinitz

GIA Gem Trade LaboratoryNew York

D

Figure 1. The laser drill holeand fracture in this 2.51 ctdiamond have been filledwith a high-refractive indexglass. Note the various-col-ored pinpoints of light alongthe drill hole, and the pink-to-purple flash colors alongthe fracture. Photomicrographby Vincent Cracco; magnified63×.

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GEMS & GEMOLOGY FALL 1999 89

Color EnhancementOff-color diamonds are commonly treated to create amore attractive, saturated color. The most importantdevelopment in this area over the last decade is thatthere is now substantial overlap in the color appear-ance of natural and treated diamonds, especially foryellow, greenish yellow, and pink hues. Most colortreatments involve irradiating and/or heating the dia-mond to create various color centers (Collins, 1982).Some of these treatments produce a diagnostic distri-bution of the color (e.g., concentration at the culet),while detecting others requires careful analysis of aUV-visible-near infrared spectrum taken at low tem-perature; luminescence reactions may also be diagnos-

tic (Reinitz and Moses, 1997, 1998). The origin ofcolor in some green diamonds—and, on rare occa-sions, some diamonds of other hues—cannot bedetermined as being either natural or treated.

In rare instances, diamonds are coated to producea fancy color; more frequently, they are coated tomake a pale yellow or brown diamond look morecolorless. Coating techniques vary from the common-place (such as fingernail polish) to the highly sophisti-cated (such as sputtered metals; see figure 2). To date,all coatings can be identified by careful observationwith 10× or higher magnification, using a variety oflighting conditions, especially diffused transmittedlight and reflected light.

The release of GE-processed diamonds onto themarket has provided the most recent—and perhapsmost significant—identification challenge for gemol-ogists (see report in this issue of Gems & Gemology,pp. 14–22).

RE F E R E N C E S

Collins A.T. (1982) Colour centres in diamond. Journal ofGemmology, Vol. 18, No. 1, pp. 37–75.

Johnson M.L., Schwartz E., Moses T.M. (1998) When adrill hole isn’t. Rapaport Diamond Report, Vol. 21, No.45, pp. 1, 19, 21, 23, 25-26.

McClure S.F., Kammerling R.C. (1995) A visual guide tothe identification of filled diamonds. Gems & Gemology,Vol. 31, No. 2, pp. 114–119.

Reinitz I., Moses T. (1997) Gem Trade Lab notes: Treated-color yellow diamonds with green graining. Gems &Gemology, Vol. 33, No. 2, p. 136.

Reinitz I., Moses T. (1998) Gem Trade Lab notes:Diamond—Color treated from orangy yellow to reddishpurple. Gems & Gemology, Vol. 34, No. 3, pp. 213–214.

Figure 2. A sputtered-metal coating—visible here indiffused transmitted light as indistinct dark spots—hasbeen applied to the pavilion of this 2.02 ct diamond.Photomicrograph by Nick DelRe; magnified 63×.

E-mail address: [email protected]

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H E D I S C O V E R Y O F E X T E N S I V E R U B Y

deposits in the Mong Hsu area of Myanmar(Burma) has provided the marketplace with a

much-needed source of fine ruby in smaller sizes(see, e.g., Hlaing, 1991; Henn and Bank, 1993;Kammerling et al., 1994). Much of the ruby from thislocation is characterized by blue or blue-black coreswhich generally are removed by heat treatment(Peretti et al., 1995). The heat treatment is straight-forward: Temperatures of 900°C or above in an airatmosphere are usually sufficient to accomplish thedesired change in color. When substantial quantitiesof Mong Hsu ruby began arriving at gemological lab-oratories worldwide, new features were recognizedthat were soon identified as residual flux inclusions(Peretti, 1993; Milisenda and Henn, 1994). These

observations were mentioned in grading reports(Hänni et al., 1998), and have initiated a seriousdebate on the use of flux in heat treatment and, inparticular, what the presence of large amounts of fluxmeans in terms of the quality and durability of theoriginal ruby.

What is a flux? A flux is simply a material that isusually a solid at room temperature, but at high tem-peratures it becomes molten and is a solvent for min-erals and other inorganic materials. There are manytypes of fluxes in use, such as oxides, borates, silicates,molybdates, and fluorides, as well as various combina-tions of these materials. For example, fluorides areoften used to reduce the viscosity of other fluxes.Fluxes based on borax (sodium tetraborate decahy-drate) are widely used in Thailand for the heat treat-ment of ruby and sapphire (Abraham, 1982; Peretti etal., 1995).

It has been stated that a flux is necessary to preventthermal-shock fracture of ruby and sapphire duringheat treatment (Robinson, 1995). Nothing could befurther from the truth. Natural ruby and sapphire arehighly resistant to thermal shock fracture; much moreso, in fact, than the ceramic crucibles in which thestones are placed, or the refractory materials of thefurnace. Fluxes are used solely to enhance the appear-ance of lesser-quality material.

In principle, a flux can have many functions. Itcan slightly dissolve the surface of ruby or sapphire,giving it a somewhat polished appearance. It can fillfractures that are open to the surface. It can match theaverage index of refraction of corundum, thus mask-ing fractures and other cavities. It can dissolve inclu-sions or staining in fractures that reach the surface. Itcan dissolve the amorphous layers that result from

Fluxes and the Heat Treatment ofRuby and Sapphire

John L. EmmettJLE Associates and Crystal Chemistry

Brush Prairie, Washington

E-mail address: [email protected]

Figure 1. This 28 ct ruby from the John Saul minein Kenya shows two glassy blebs that resulted fromheat treatment without flux. They probably repre-sent the melting of micaceous inclusions, and couldeasily be mistaken for residual flux.

T

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GEMS & GEMOLOGY FALL 1999 91

aluminum hydroxide decomposition along partingplanes. Finally, a flux can combine chemically withinclusions that melt out of a ruby or sapphire.

Upon cooling, a flux can redeposit dissolvedcorundum (Hänni, 1997–1998; Hughes and Galibert,1998), resulting in very limited re-growth, or it cansimply solidify as a corundum-containing material. Itcannot, however, completely re-grow corundum in afissure, because the flux usually contains less than 20%dissolved corundum (Nelson and Remeika, 1964;Linares, 1965). The solidified flux can be a glass, apolycrystal, a single crystal, or all of these phases,depending on the final composition, viscosity, coolingrate, volume, and substrate. In addition, each of thesephases can have a different chemical composition.

Although today fluxes are used routinely to heattreat nearly all types of ruby and sapphire, determin-ing that a flux has been used is not straightforward.First, many fluxes are based on borates, and boron isnot detected by the X-ray fluorescence (XRF) spec-trometers routinely used in gemological laboratories.Second, mineral inclusions may melt out of thecorundum during heat treatment, and these meltdroplets may appear very similar to flux deposits. Thetwo glassy blebs on the surface of the ruby in figure 1could easily be misidentified as flux. These glassymaterials are composed of the oxides of silicon, alu-minum, and magnesium, sometimes with calcium,

potassium, or sodium. They apparently result fromthe melting of various micaceous mineral inclusions.Given the wide compositional range of fluxes, thevariety of inclusions that can melt and/or dissolve in aflux, and the variety of morphologies that result fromthe cooling of flux materials, the identification of aflux as a filling in fractures or cavities can be verychallenging.

In what may be yet another application of moltenfluxes, we recently examined five fine sapphires of 3-5 ct each that we believed to have been deep diffused;yet they did not exhibit the color concentrations atthe facet junctions that are typical of this treatment(Kane et al., 1990; see, e.g., figure 2). Note that thisfacet outlining is an artifact of recutting and repolish-ing the sapphire, which was necessitated by the pit-ting of the surface that was caused by powder sinter-ing (Carr and Nisevich, 1975) during deep diffusion,and not the deep diffusion process itself. Prior torecutting and repolishing, the outlining of the facetjunctions in deep-diffused gemstones generally is notvisible even with immersion. We identified three ofthese stones as being deep diffused on the basis of thediffusion profiles seen on surface-reaching “finger-print” inclusions when they were viewed edge-on.Because titanium dioxide—the material typically usedfor diffusion treatment—has a very high surface-diffu-sion rate on sapphire, it will propagate into any open

Figure 2. Color concentrations along facet junctionsare clearly visible in this deep-diffused sapphire thathas been immersed in methylene iodide. Thisuneven coloration—which is considered characteristicof diffusion treatment—results primarily from therecutting and repolishing of the stone, not the diffu-sion treatment.

Figure 3. This slice of a faceted, deep-diffused sap-phire shows the diffusion profile extending out from a“fingerprint”-like inclusion (bottom left) that reachesthe stone’s surface. The deep diffusion of this samplewas performed by heating in a Ti-containing powder,which is the usual practice. However, a Ti-containingflux theoretically could produce the same result with-out the surface damage caused by powder sintering.

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92 SYMPOSIUM PROCEEDINGS ISSUE

fissures and start diffusing into the bulk of the stone.Figure 3 shows a cross-section slice of a deep-dif-

fused sapphire with a fingerprint inclusion thatexhibits the diffusion profile. This stone was deep dif-fused in the usual manner from a powder. In princi-ple, however, titanium could be diffused into sapphirefrom a molten flux. This would avoid the surface pit-ting and thus eliminate the need for recutting as wellas the facet outlining. This is what we believe wasdone to at least three of the five stones that we stud-ied. These observations suggest that careful examina-tion of fine sapphires is most prudent, even whenthere is no evidence of color concentrations at thefacet junctions.

RE F E R E N C E S

Abraham J.S.D. (1982) Heat treating corundum: TheBangkok operation. Gems & Gemology, Vol. 28, No. 2,pp. 79–82.

Carr R.R., Nisevich S.D. (1975) Altering the appearance ofsapphire crystals. United States patent 3,897,529, filedDecember 15, 1969, issued July 29, 1975.

Hänni H.A. (1997–1998) Short notes on some gemstonetreatments. Journal of the Gemmological Association of HongKong, Vol. 20, pp. 44–52.

Hänni H.A., Kiefert L., Chalain J.P. (1998) Ruby. InStandards & Applications, SSEF Swiss GemmologicalInstitute, Basel, Switzerland.

Henn U., Bank H. (1993) Neues Rubinvorkommen inMyanmar (Burma). Zeitschrift der Deutschen Gem-

mologischen Gesellschaft, Vol. 42, No. 2/3, pp. 63–65.Hlaing U.T. (1991) A new Myanmar ruby deposit.

Australian Gemmologist, Vol. 17, No. 12, pp. 509–510.Hughes R.W., Galibert O. (1998) Foreign affairs: Fracture

healing/filling of Mung Hsu ruby. AustralianGemmologist, Vol. 20, No. 2, pp. 70–74.

Kammerling R.C., Scarratt K., Bosshart G., Jobbins E.A.,Kane R.E., Gübelin E.J., Levinson A.A. (1994)Myanmar and its gems—an update. Journal ofGemmology, Vol. 24, No. 1, pp. 3–40.

Kane R.E., Kammerling R.C., Koivula J.I., Shigley J.E.,Fritsch E. (1990) The identification of blue diffusion-treated sapphires, Gems & Gemology, Vol. 26, No. 2, pp.115–133.

Linares R.C. (1965) Properties and growth of flux ruby.Journal of the Physics and Chemistry of Solids, Vol. 26, pp.1817–1820.

Milisenda C.C., Henn U. (1994) Neues Rubinvorkommenin Myanmar (Burma). Goldschmiede und UhrmacherZeitung, Vol. 92, No. 4, pp. 147–148.

Nelson D.F., Remeika J.P. (1964) Laser action in flux-grown ruby, Journal of Applied Physics, Vol. 35, No. 3,part 1, pp. 522–529.

Peretti A. (1993) Foreign substances in Mong Hsu rubies.JewelSiam, Vol. 4, No. 5, p. 42.

Peretti A., Schmetzer K., Bernhardt H.J., Mouawad F.(1995) Rubies from Mong Hsu. Gems & Gemology, Vol.31, No. 1, pp. 2–26.

Robinson N. L. (1995) Thais get burned by glass filling.Colored Stone, Vol. 8, No. 4, pp. 1, 13–14, 16–18.

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GEMS & GEMOLOGY FALL 1999 93

ISSURES AND FRACTURES IN GEMSTONES arecommonly filled with various materials such

as glass, wax, oil, or artificial resins to improvetheir clarity. In the case of emeralds, fissure fillingtraditionally has been performed with organic mate-rials. These fillings usually are visible with micro-scopic inspection, or with UV radiation due to theirfluorescence. However, such observations need con-firmation by other methods. Identification of suchfillings is usually possible with infrared spectroscopyor laser Raman microspectrometry.

At the SSEF Swiss Gemmological Institute, theanalysis of fissure fillings is now routine.Identification of the filling is performed in threesteps: (1) optical (microscopic) examination, (2)FTIR analysis, and (3) Raman microspectrometry.For both the infrared and Raman techniques, thespectra obtained are compared to those of known(reference) materials.

Microscopic ExaminationA detailed study with the microscope generally allowsdetection of the presence of a filler substance in theemerald and the extent of treatment. It also providesindications of the identity of a possible filler substance.Trapped air bubbles and dendritic patterns are a reli-able indicator of the presence of a filler. Another indi-cation is provided by “flash effects” along the fissureplanes. While oil may create an orangy flash effect,flashes that show a change of color when the stone isviewed at different angles to the light source are typi-cally due to artificial resins (figure 1).

FTIR SpectroscopyFourier-Transform Infrared spectroscopy (FTIR) is

more versatile than conventional infrared spec-troscopy for studying the molecular structure oforganic compounds. However, a problem ariseswhen fillers are analyzed within an emerald: Most oftheir characteristic features — at around 1600 cm−1—cannot be detected because of the absorption inter-ference from the host emerald. Fortunately, emeraldsare transparent to infrared radiation in a secondspectral area, between 2800 and 3200 cm−1, fromwhich characteristic features of organic substancescan be obtained. The FTIR technique can beapplied in two modes (i.e., transmittance or diffusereflectance), depending on such considerations as thesize of a stone and whether it is set in jewelry.Whichever FTIR technique is used, however, theanalyzed volume of the sample is usually largeenough to cover several fissures. Therefore, this

Fissure-Filled Emeralds and Their DetectionHenry A. Hänni

SSEF Swiss Gemmological InstituteBasel, Switzerland

E-mail address: [email protected]

Figure 1. Multicolored flashes in emerald fissures oftenindicate clarity enhancement by an artificial resin. Photo©SSEF Swiss Gemmological Institute.

F

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“macro method” may enable the identification ofmultiple fillers when the emerald has been succes-sively filled with different substances.

Raman AnalysisWith Raman microspectrometry, the identificationof organic fillers in emeralds is also feasible. Waxes,oils, and natural and artificial resins show distinctRaman spectra. The characteristic peak areas arebetween 1300 and 1700 cm−1 and from 2800 to3200 cm−1. To obtain an analysis, the laser is focusedinto a narrow beam that is directed at a specific frac-ture (i.e., it is a “micro-analysis”). Complicationsmay arise with this technique if a stone contains sev-eral substances, or mixtures of pure organic fillers, ina single fracture filling. In such cases, it is necessaryto compare not only peak positions, but also peakintensity ratios. This enables the detection of admix-tures and, frequently, residual fillers from earliertreatments. However, it may not be possible toidentify decomposed filler materials (e.g., figure 2)with Raman analysis.

Because the successful identification of an organicfiller using either FTIR or Raman microspectrometrydepends on comparison to reference data, a compre-

hensive collection of reference spectra for knownmaterials is a necessity. Our laboratory maintains sucha library and it is constantly being enlarged. In addi-tion, several Raman users, as well as equipment man-ufacturers, are presently compiling databases ofRaman spectra that will be of particular value to thegemological community.

Figure 2. The chemical properties of a filling sub-stance that has dried, as shown here, may be differentfrom those of the original substance. Photo ©SSEFSwiss Gemmological Institute.

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GEMS & GEMOLOGY FALL 1999 95

EMSTONES THAT ARE DEFICIENT in eithercolor or clarity can be enhanced by a wide

variety of treatments (Nassau, 1994). An esti-mated two-thirds of all colored gemstones used in

jewelry today are enhanced, and the use of enhance-ments on diamonds continues to grow.

Important factors to be considered in gemstoneenhancement are: (1) the permanence of the treat-ment, that is, whether it is stable under normal condi-tions of wear and display (i.e., exposure to light—inthe absence of excessive heat—and repolishing); (2)whether the presence of the treatment can be identi-fied by standard gemological methods; and (3)whether the treatment can be reversed, should onewish to do so.

The effect of the simple heat treatment of variousgem materials is summarized in table 1 (top). All of theheat-treated materials in table 1 are stable, and most ofthe treatments can be reversed. The effect of radiationtreatments is similarly summarized in table 1 (bottom).Most of the irradiated materials are stable, and thetreatment can be reversed in most cases.

Table 2 summarizes other types of gemstone treat-ments under two categories: (1) bleaching, dyeing, andfilling techniques (top); and (2) other processes (bot-tom). Treatments in the first category generally are notstable (or their long-term stability is uncertain), andnone can be fully reversed except in unusual circum-stances. Among the other treatments, the recentlyannounced GE POL process (see, e.g., Bates, 1999)undoubtedly uses high temperature at high pressure tolighten the color of certain diamonds (see, e.g.,Nassau, 1994).

Many of the treatments in tables 1 and 2 can beidentified by standard gemological examination, butmany others cannot. Irradiated gem materials oftenpose the greatest challenge, because the exposure to

radiation may occur naturally or in the laboratory,with varying degrees of permanence. For example,yellow and “padparadscha” sapphire, as well as yellowto brown (“Imperial”) topaz, occur in both stable andfading forms (sometimes even together in the samesample), in both artificially irradiated and naturallyoccurring material.

Using equipment described by Nassau (1996a), asimple test can be performed to identify rapidly fadingmaterials (e.g., irradiated spodumene, grossular, andgreen topaz, and some natural or irradiated yellow-to-brown topaz and padparadscha sapphire). Care mustbe taken to keep the temperature below 50°C toavoid heat destruction of color, a precaution that hasbeen missing from some studies (Brown, 1993;Nassau, 1996b). Fading of both natural and enhancedgemstones is also a problem for curators of gem andmineral collections (Nassau, 1992).

RE F E R E N C E S

Bates R. (1999) Diamonds: Mystery treatment announced.Jewelers’ Circular Keystone, Vol. 170, No. 4, p. 19.

Brown G. (1993) Maxixe-type beryls: Ghosts from thepast. Journal of Gemmology, Vol. 18, No. 7, pp. 215–221.

Nassau K. (1992) Conserving light-sensitive minerals andgems. In F.M. Howie, Ed., The Care and Conservation ofGeological Materials, Butterworth-Heinemann, Boston,pp. 11–24.

Nassau K. (1994) Gemstone Enhancement: History, Science,and State of the Art, 2nd ed. Butterworth-Heinemann,Oxford, England, 252 pp.

Nassau K. (1996a) Fade testing: Has the time come?Jewelers’ Circular Keystone, September, pp. 1116–1117.

Nassau K. (1996b) On the identification and fade testing ofMaxixe beryl, golden beryl, and green aquamarine.Journal of Gemmology, Vol. 25, No. 2, pp. 108–115.

An Overview of Gemstone TreatmentsKurt Nassau

Nassau ConsultantsLebanon, New Jersey

G

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TABLE 1. Simple heat and irradiation treatments.

Gem material Change Result Stable?a Reversible?

SIMPLE HEATINGNear-total to widespread useAmethyst To yellow Citrine Yes YesBeryl Green to blue Aquamarine Yes YesChalcedony Yellow to brown Carnelian, agate, Yes No

to red tiger’s eye, etc.Corundum Develop, lighten, or Sapphire Yes Yes

intensify blueTopaz To pink Pink topaz Yes YesZircon To colorless or blue Zircon Yes YesZoisite To purple-blue Tanzanite Yes Yes

Frequent to occasional useAmber Clarified, sun- Amber Yes No

spangledCorundum Develop or inten- Yellow sapphire, Yes No

sify yellow “padparadscha”Corundum Develop asterism Ruby, sapphire Yes Yes

or remove silkRuby Remove “off” Ruby Yes Yes

shades

Rarely usedOrganics Age (darken) Amber, ivory Yes NoQuartz Remove “smoky” Greenish yellow Yes Yes

IRRADIATIONNear-total to widespread useQuartz To smoky, black Smoky quartz Yes YesTopaz To blue Blue topaz Yes Yes

Frequent to occasional useCorundum Develop yellow Yellow sapphire, ?b Yes

“padparadscha”Diamond To blue, green, Colored diamond Yes Yes

yellow, or redPearl Darken Black pearl Yes NoTourmaline Develop red Red, purple, and Yes Yes

multi-color

Rarely usedAmethyst Partial change Amethyst-citrine Yes YesBeryl Develop blue Blue (or green) No Yes

Maxixe(-type)Spodumene Develop green Green spodumene No YesTopaz Develop yellow Imperial topaz ?b Yes

to brown

aStable for normal wear and display, and to repolishing.bStable and unstable colors can both occur, even in the same sample.

TABLE 2. Other treatments.

Process Gem material Stable?a Reversible?

BLEACHING, DYEING, FILLINGNear-total to widespread useBleach Chalcedony, coral, ivory, ?b No

pearl, petrified wood, tiger’seye, and others

Dye Agate, chalcedony, marble, ? Noonyx, pearl, and others

Crack fill: colorless Emerald ? Nooil/polymerImpregnate: colorless Agate, chalcedony, lapis lazuli, No Nooil/polymer/wax turquoise, and others

Frequent to occasional useCrack fill: colorless Diamond, ruby, sapphire ? Noglass

Dye Amber, coral, ivory, jade, No Noturquoise, and others

Impregnate: colored Agate, chalcedony, jade, No Nooil/polymer/wax lapis lazuli, turquoise, and

others

Rarely usedCrack fill: colorless Ruby, sapphire, and others ? Nooil/glass/polymerCrack fill: colored Beryl, diamond, emerald, No Nooil/glass/polymer ruby, quartz, and others

OTHER PROCESSES

Frequent to occasional useDoublets, triplets Opal Yes NoLaser drilling of Diamond Yes NoinclusionsSurface-diffused Ruby, sapphire No Noasterism and/or color

Rarely usedCrackling Ruby, sapphire Yes NoCrackle and dye Quartz No NoDoublets, triplets Any gemstone ? NoFoil, mirror, and Any gemstone ? Yes star backsHigh pressure/ Diamond ? ?high temperatureReconstruction Amber Yes NoSurface color coating Amber, carnelian, diamond, No Yes

turquoise, and othersSynthetic overgrowth Emerald on beryl No No

aStable for normal wear and display, and to repolishing.bStability not known.

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GEMS & GEMOLOGY FALL 1999 97

HE 19TH CENTURY was a golden age for jewelerseverywhere, but particularly for those in Paris,

who showed an extraordinary ability to create a suc-cession of new styles and techniques for the rest of theworld to copy. We are fortunate that the records ofChaumet—at 12, Place Vendôme—have survivedintact. They provide a guide to this most creativeperiod of jewelry history—the changing pattern ofdesigns, the emergence of new clients—and offer anexplanation for Parisian preeminence.

Chaumet’s story begins with a father-and-sonpartnership, M. E. and F. R. Nitot. Appointed courtjewelers to Napoleon Bonaparte before his corona-tion as Emperor in 1804, they were given the task ofcreating jewelry that would express his absoluteauthority. To this end, they supplied the magnificenttiaras, earrings, necklaces, brooches, and bracelets—setwith diamonds, pearls, and fine colored stones—thattransformed the ladies of the Bonaparte family intoroyalty. The Nitots’ mastery of the grand manner hasnever been surpassed, and it set the pattern for the restof the century, when emblems of rank such as thetiara were a Chaumet specialty.

In the next phase of French history, from the fall ofNapoleon in 1815 to the declaration of his nephew asNapoleon III in 1852, the Nitots’ successors showed asimilar genius for translating a new mood into jewelry.They turned their back on the imposing classical stylesof the Empire and introduced diamond jewelryinspired by nature—garlands of wild roses, jasmine,hawthorn, and bulrushes — mounted on tremblersprings for extra realism. At the same time, a passionfor history led to “Gothic” and “Renaissance” types ofgold and enameled jewelry which could be worn withdaytime dress. Other jewels reflected religious faith,political involvement, sporting interests, and sentimentfor family, friends, and lovers. The most importantFrench customers were the women of the great bank-

ing families of Rothschild and Fould, but even theywere eclipsed by the scale of purchases from theRussians, English, and Spanish, either as visitors or res-idents in the city. According to the Chaumet ledgers,wealthy Americans—Colonel Thorn with six daugh-ters to marry, Mrs. Bingham from Philadelphia, andMrs. Henry Livingston II from “old New York”—were now acquiring important collections of jewelry.

Chaumet —A Very Parisian JewelerDiana Scarisbrick

Author and Jewelry HistorianLondon

T

Antique & EstateJewelry

Antique & EstateJewelry

Figure 1. This circa 1910 Chaumet design for animportant diamond, pearl, and emerald corsage orna-ment hanging from shoulder straps anticipated thefashions of the 1920s.

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98 SYMPOSIUM PROCEEDINGS ISSUE

The patronage of Napoleon III and his wife,Empress Eugénie, raised the jewelry trade to newheights. The Emperor encouraged the leading mastersto participate in the International Exhibitions thatwere held at regular intervals from 1851, and theirstands always drew huge crowds. So firmlyentrenched was Parisian supremacy that little changedafter the exile of Napoleon III and the establishmentof the Third Republic in 1872. Thanks to improve-ments in rail and steamship travel, more and morevisitors were drawn to Paris not only from other partsof Europe, but also from North and South America.

The Chaumet design albums record these purchas-es , which show a strong preference for 18th centurythemes—flowers, leaves, ribbons, bowknots, and tas-sels —executed in diamonds and precious stones. Thequality was superb, each drawing a work of art initself, and those pieces that have survived exhibitexemplary craftsmanship (see, e.g., figure 1). Whatkept standards so high? Clues are provided by thedaybooks, which give every detail of client visits tothe shop and their correspondence. Each jewel wasthe result of a dialogue between the customer and thefirm, and the customer required “something not yetknown” that was compatible with the very latest cou-ture fashion. From the grandest tiara to the mostmodest brooch, everything had to have the stamp ofParisian chic, and it might be returned as “old-fash-ioned, clumsy, too dear” if it failed to please. Suchcriticism provided the spur for the constant renewal

of ideas and techniques that gave the business its vital-ity. So, too, did the competition from other greathouses such as Bapst, Boucheron, and Mellerio,which made Paris a buyer’s paradise—though Mrs.Michael Herbert complained after visiting them allthat trying to choose a necklace for her sister GraceVanderbilt from such a wonderful array “was despair-ing work.”

By this time Joseph Chaumet, who joined thefirm in 1875 and gave his name to it, was in charge.Not only did he guide Chaumet through the gloriesof the Belle Epoque, but he adapted to the challengeof Art Deco (figure 2). After his death in 1928, hisson Marcel weathered the difficult years of economicdepression and World War II. Marcel, in turn, wassucceeded by his two sons, who directed Chaumetthrough the golden years that followed the peace of1945. Chaumet International, now owned by aninternational company, is managed by Pierre Haquet.

FU R T H E R RE A D I N G

Scarisbrick D. (1995) Chaumet: Master Jewellers Since 1780.Alain de Gourcuff, Editeur, Paris, and ChaumetInternational.

Scarisbrick D., Hurel R. (1998) Chaumet: Two Centuries ofFine Jewellery. Catalog of an exhibition at the MuséeCarnavalet, March – June 1998, Paris.

Vever H. (1908) Histoire de la Bijouterie Française au 19ièmeSiècle. H. Floury, Paris.

Figure 2. John Rubel madethis Art Deco-era Egyptian

Revival brooch for Chaumetin 1924. The hunters, fash-

ioned from ruby and emer-ald, stand on a pavéed dia-mond background; the onyx

sides are gripped by lotusmotifs. Courtesy of A. C.

Cooper Ltd., London.

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GEMS & GEMOLOGY FALL 1999 99

ADICAL CHANGES IN WESTERN SOCIETY

during the early decades of the 20th centu-ry are clearly reflected in the jewelry design

of the period. This evolution is evident in the specifictypes of jewelry that were popular, how they wereworn, the motifs used, and the gems incorporated.

At the turn of the century, Western societyregarded jewelry as an outward expression of wealth,and women of the upper classes wore an impressiveamount, particularly on formal occasions. Eveningjewelry often included a tiara, several necklaces, longstrands of pearls, brooches, corsage ornaments,bracelets, and rings. The garland style, using lacy, del-icate motifs drawn from the decorative arts of the18th century French court, was favored for jewelrydesign by the wealthy women of the Edwardian era

(figure 1). Diamonds and natural pearls were the pre-ferred gems, set predominantly in platinum, a newmetal for jewelry. This monochromatic look perfectlycomplemented the pastel colors that dominated cloth-ing fashion. Diamonds from the recently discoveredSouth African deposits were plentiful, as were pearlsfrom the Persian Gulf and Ceylon (now Sri Lanka).When colored gems were incorporated, they werealways the finest and were set off by diamonds and/orpearls. Favored colored gems included amethyst, peri-dot, opal, turquoise, demantoid garnet, emerald, ruby,and sapphire.

The 1910 Paris production of Scheherezade byBallets Russes had a profound impact on Westernsociety. Clothing design was immediately affected, asless-confining “harem dresses” in gauzy fabrics came

Early 20th Century JewelryElise B. Misiorowski

Jewelry HistorianLos Angeles, California

R

Figure 1. This lacy bow cor-sage ornament, which consistsof diamonds set in platinumbacked with gold, is typical ofthe garland style that waspopular with the upper classesduring the Edwardian era. Itwas made by Tiffany & Co.around 1900. Courtesy of theNeil Lane Collection, BeverlyHills, California. Photo ©GIA and Tino Hammid.

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100 SYMPOSIUM PROCEEDINGS ISSUE

into style, supplanting the long dresses over tightcorsets that had been the fashion. This softer, looserclothing couldn’t support the heavy bodice jewelsthat were previously fashionable, so they quicklywent out of style. Jewelry became more compact, andfewer pieces were worn at any given occasion.Platinum workmanship came into its own during thisperiod. Every surface of the finely fabricated platinummountings was polished, embellished with exquisitehand engraving or beaded with millgrain to add extrashimmer. Delicately sawpierced platinum plaquesstudded with gems were popular as pendants orbrooches. Motifs for jewelry became more symmetri-cal and geometric, and natural subjects became sleekerand more stylized.

Jewelry design was forgotten with the onset ofWorld War I and the Russian Revolution. The enor-mous casualties of men between 1914 and 1918 drewwomen into the workforce. As women acceptedthese new responsibilities, their attitudes, dress, andjewelry also evolved. Postwar women were morepragmatic and independent, and their look was slimand boyish, with cropped hair and shorter skirts.

Designers revived the trend toward geometric pat-terns in jewelry that began before the war, and alsodrew motifs from the Middle East and Asia. In this,

and in the use of a strong primary color palette, wesee the influence of the Ballets Russes resurfacing.Diamonds and platinum again were fashionable, nowset to contrast with bold combinations of ruby, emer-ald, sapphire, black onyx, rock crystal quartz, jade,lapis lazuli, coral, amber, turquoise, or mother-of-pearl. Step-cut diamonds (introduced in 1915) ideallysuited the geometric style of the jewelry, and coloredgemstones carved in geometric shapes, as beads, or asstylized leaves and flowers were very popular.Cultured pearls, newly introduced, were more afford-able than natural pearls, thus causing a shift in marketvalue for all pearls.

Jewelry, like clothing, was designed to emphasizethe vertical line. Evening dresses were sleeveless andcut low in front and back. Long strands of pearls orbeads, often terminating in pendants or tassels, wereechoed by long, dangling earrings and long lapelbrooches. Narrow, flat, strap bracelets in continuousgeometric motifs outlined in calibrated colored gem-stones (figure 2) were worn in multiples on bare arms.Jeweled cigarette cases and vanity cases came intobeing, as women began to smoke and wear make-upin public, and wristwatches were introduced as themodern way to tell time.

Looking back, it is fascinating to see how eco-nomic fluctuations and developments in art, science,and technology all have had a direct impact on howjewelry is worn at any given time in history, as wellas on what gems and materials are used. Knowingthis gives us a definite perspective on current jewelrydesigns and allows us to speculate on future changesthat will certainly manifest themselves in the newmillennium.

FU R T H E R RE A D I N G

Bennett D., Mascetti D. (1989) Understanding Jewelry.Antique Collector's Club, Woodbridge, Suffolk.

Nadelhoffer H. (1984) Cartier: Jewelers Extraordinary. HarryN. Abrams, Inc., New York.

Proddow P., Healy D., Fasel M. (1992) Hollywood Jewels:Movies, Jewelry, Stars. Harry N. Abrams, Inc., New York.

Rudoe J. (1997) Cartier: 1900 –1939. Harry N. Abrams,Inc., New York, and The Metropolitan Museum ofArt, New York.

Scarisbrick D. (1995) Chaumet: Master Jewellers Since 1780.Alain de Gourcuff Éditeur, Paris, and ChaumetInternational.E-mail address: [email protected]

Figure 2. The Art Deco period is well representedby this flexible strap bracelet, with a repeatingEgyptian sphinx and pyramid motif, fashioned fromdiamonds, rubies, emeralds, sapphires, and blackonyx set in platinum. It was made by Janesich, circa1925. Photo © GIA and Tino Hammid.

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GEMS & GEMOLOGY FALL 1999 101

E MUST FIRST REMEMBER that period jewel-ry was contemporary jewelry when it was

sold initially. It can only be described as “peri-od” when it moves into secondary markets as the resultof subsequent ownership, or with the passage of time.

New Marketing OpportunitiesThe important periods before 1950 are well known,in particular Victorian, Edwardian (figure 1), Art Nou-veau, Art Deco (figure 2), and Retro. Unfortunately,jewelry designed after 1950 has not been named byjewelry historians; I call it “previously owned jewelry”when it moves into secondary markets.

The marketing of quality period jewelry dependson recognizing two characteristics that are inherent tothe human psyche. One is the universal desire to col-lect. This appears at an early age and lasts a lifetime.The other is connoisseurship, which is a subjectivejudgment that derives from one’s ego.

What better product exists to satisfy these humanneeds than fine artistic collectible jewelry? We have aunique product, the result of the unusual partnershipof Mother Nature’s wondrous creative force in pro-ducing from the depths of the earth beautiful, raregem materials with the creative genius of fine crafts-men. Few other collectibles can make this statement.

The important auction houses have seized thisopportunity to do business in the marketing of “artis-tic collectible” jewels. Today, they report sales in thisfield of several hundred million dollars. This businesshas such great promise that the auction houses haveshifted their emphasis from marketing to the jewelrytrade to marketing directly to private individuals.

The profit centers of independent jewelers arebeing threatened by the commoditization of dia-monds, the expanded marketing of “branded” design-er jewels, and of course the new marketplace of theInternet. In fact, major auction houses such asSotheby’s have recently made partnerships withimportant players in this field of e-commerce—in thiscase Amazon.com.

Is there an opportunity for the independent jewel-er to establish a profit center in this area of artistic col-lectibles? I believe there is, but it first requires theacquisition of an inventory of quality period jewelryto establish credibility, and then demands a commit-ment to the training and education of at least onesalesperson in the organization to become an expertin this field. The appearance of learned and articulatejewelry historians over the last 25 years has producedmany books and articles useful in this process. Finally,he or she should ally with at least one recognized

The Marketing of Period Jewelry During the 20thCentury and into the Next Millennium

Joseph H. Samuel Jr. J.& S. S. DeYoung Inc.

Boston, Massachusetts

E-mail address: [email protected]

Figure 1. Edwardian jewelry, like this circa 1900platinum brooch set with pearls and diamonds, is pop-ular with collectors. Courtesy of J.&S.S. DeYoung.

W

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102 SYMPOSIUM PROCEEDINGS ISSUE

dealer in period jewelry for help in establishingauthenticity and direction.

The Importance of ProvenancePeriod jewels with the provenance of important jew-elry houses of the past command a substantialpremium— a premium that appears to be increasingyearly. Some of the key names that appear on jewelrysold in America in the first half of this century areTiffany, with its high-quality gemstone jewelry as wellas its Art Nouveau collectibles; T. B. Starr, of Marcus& Co. (who branched out from Tiffany); Dreicer &Co.; Black Star and Frost; and Raymond Yard, whocame from Marcus & Co. Cartier (figure 3), whichdid not become established in America until the early1920s, could be considered the artistic leader of thisera because of the firm’s European influence.

Period jewelry was also produced by several man-ufacturing firms in the first half of this century, andwas sold by fine jewelry stores in major and secondarycities. Except for the manufacturer Oscar Heyman,however, these firms have disappeared from thescene, battered by the effects of the Great Depressionand World War II. Most of this jewelry, thoughhighly desirable, does not carry a name.

The 12 years that began with the Depression andended with World War II were a bleak period for the

jewelry industry. After the war, Van Cleef & Arpelsprobably was the artistic design leader for 40 years.Harry Winston, with his emphasis on the juxtaposi-tion of large stones to create a “free-form” effect,introduced a new look in the 1950s and ‘60s thatwas extensively imitated. Other niche players withtheir own look were David Webb, Schlumberger atTiffany, and Verdura.

Conclusion

Great jewels, whether new or previously owned, flowto the markets where new wealth is being generatedand where there are wealthy patrons who encourageartistic innovation. As we approach the new millenni-um, the technological revolution is already creating—and will continue to create—great wealth in theUnited States. The opportunity is there for the enter-prising jeweler.

Figure 2. It is important that sales staff understandthe distinctiveness of period pieces, such as these ArtDeco (circa 1930) clip brooches, fashioned fromrubies and diamonds set in platinum. The clips canbe worn separately or as a single brooch. Courtesy ofJ.&S.S. DeYoung.

Figure 3. This diamond necklace has a knownprovenance—“Cartier, London”—which greatlyenhances its value. Courtesy of J.&S.S. DeYoung.

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GEMS & GEMOLOGY FALL 1999 103

HE MODERN MARKETS TODAY demandconstant change and innovation. Fashion and

advertising have trained us to have a throwawaymentality, ready to leap from one trend to the next,guiltlessly abandoning any brand loyalty. It is my con-tention that for one to remain sane in this culture ofthe microchip and its blinding speed, people need alifeline to ground themselves. This could be found inclassic design language, a thread that winds its waythroughout consciousness in all cultures. It is fromclassic, primordial forms that artists in visual mediacan breathe vitality into our modern products.

As designers are challenged to create more ultra-modern, high-tech concepts—whether in clothing,jewelry, architecture, or Web site pages—it is theirresponsibility to constantly adapt classic designs intotheir work, for designers are the ones who manipu-late our sense of well-being in the most subliminalmanner.

The artist is the liaison, the shaman between theworlds of ordinary reality and the dream state andspirit dimension. Artists are the magical beings in oursociety who can translate for the rest of us the ineffa-ble experience of the mysterious universe. To beeffective, therefore, the language of the artist must beone we all can understand, one that is composed ofcertain essential elements that I choose to call “classiccomponents.” Carl Jung would call them “symbols ofthe Collective Unconscious.”

Some examples of these elements of design arespirals (as in hurricanes, whirlpools, and seashell pat-terns), whiplash and serpentine curves (as in riverbends, snakes, and fabric folds), fractals (random pat-terns of chaos, as in piles of leaves in the forest, orthe shapes of sand dunes or of pebbles washed up onthe beach), and natural architectural forms (such asspider webs, ant and termite mounds, bee hives, or abird’s nest).

What makes one artist more popular and successfulthan another artist is often the unique and harmo-nious blend of both classic design language and thepersonal signature style of the artist. When the lattercomes deeply from the heart and reflects the true soulof the maker, then the use of the symbols of commonhuman consciousness become that much more emo-tionally moving. People in today’s urban society craveimages that connect us to our natural environment,for it is not only grounding, but soothing to ourindustrialized and anxious souls.

Adapting Classic Designs to Modern MarketsRobert Lee Morris

Robert Lee Morris Design StudioNew York

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Jewelry DesignJewelry Design

The uneven spirals of a hurricaneprovided the classic design element

for this contemporary gold and dia-mond necklace and bracelet. Photos

courtesy of Robert Lee MorrisDesign Studio.

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H E E V O L U T I O N of Yurman into adesigner luxury brand has taken 25 years,

with a transformation from artist to designer todesigner name brand to designer luxury brand. Mywife Sybil and I were originally artists— she was apainter, I was a sculptor—and together as partners wedecided to bring our art forms to the world of jewel-ry. Unfamiliar with jewelry manufacturing, weapplied unconventional techniques and often woundup using materials that nobody else wanted. Beforelong, we began using cables in our pieces, and ofcourse the cable product eventually became our sym-bol. Although some were quick to label Yurman as“the cable company” or a “one-trick pony,” ourcable product was more a matter of consistency incommunicating our message.

Brands (luxury brands in particular) are in factbuilt on continuity and consistency of message, sobecoming a brand was our next evolutionary step.Grudgingly—I was reluctant to emphasize my nameabove the beauty of the product—we developed theDY logo collection. We took our thinking “outsideof the box” once again simply by putting diamondsin silver (the “Silver Ice” collection). We chose ourretailers carefully and developed an authorized retailnetwork. We trademarked and copyrighted our prod-ucts in order to control the image and protect thebrand. Protecting the brand is essential not only forour company, but also for the retail customer whoseeks a sense of quality and authenticity. Brands col-laborate and create alliances in this way: Customerswant to join up, they want to belong.

In recent years, we have focused on establishingYurman as a luxury brand that carries the same classicstyle and classic shapes. Today we are experiencing aluxury revolution, one that began when companieslike Gucci and Armani started to globalize luxury.Technology— which enables us to understand thedemographics of our customers through databasemarketing — and an era of unprecedented wealthhave combined to transform the concept of luxury.Whereas in the past luxury was exclusionary andextremely expensive, today’s luxury is accessible andbroad-based. It involves joining, rather than standingapart. The accessibility of luxury should not be dis-missed as designer-brand pollution, because the quali-ty of today’s luxury signatures is very real.

Creating a Luxury BrandDavid YurmanYurman Design

New York

T

The cable bracelet is recognized worldwide as the Yurman

Design signature piece.

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GEMS & GEMOLOGY FALL 1999 105

E HAVE ALL BECOME ACCUSTOMED to theuse of designer “names” in our business.

They represent the sizzle in our industry, somuch so that many manufacturers now add a person’sname to their company logo whether or not that per-son actually designs jewelry or, in some cases, evenexists at all. That trend will only continue to grow inthe coming years (see, e.g., figure 1).

But designer jewelry as a business category is stillrelatively new. Up until the mid-1970s, the onlydesigner names that consumers could relate to werethose of the big retail design houses such as Cartierand Tiffany. Little was available to the middle classbeyond princess rings, bangle bracelets, and love

beads until 1969, the year of the first Bennington(Vermont) Craft Fair. Many historians use that eventto mark the birth of the contemporary designermovement. Several designers whose names we allknow well, such as David Yurman and MichaelGood, got their start there.

At about the same time, a wave of metal artists weregraduating from a diverse range of universities and artschools. Thanks in part to the efforts of Mort Abelsonand the Jewelers of America trade shows, by the late1970s these artisans slowly became businesspeople.Trade shows have since played an enormous role in thedesigner jewelry marketplace, and they will continue tobe vital to the success of most designer businesses.

Still other influences contributed to the growingpower of designers. Arts and crafts galleries beganshowcasing handmade jewelry; as the galleries flour-ished, jewelry became accepted as a contemporary artform. The fashion world played its part as well, withthe work of designers such as Robert Lee Morris (fig-ure 2) gracing the covers of Vogue, Mademoiselle, andother fashion magazines. Designer organizations suchas the American Jewelry Design Council, theContemporary Design Group, and more recently theInternational Jewelry Design Guild also have had apositive impact. Trade magazines had always writtenabout designers, but JQ magazine was the first to claimthe movement as its own. Lustre magazine, launchedtwo years ago, added the term better brands to ourvocabulary. JCK entered the fray with a mini-maga-zine called Luxury, which speaks to the high end ofthe market. Design competitions were also a majorpart of the designers’ success story. Commodity pro-moters such as the World Gold Council and PlatinumGuild International became major sponsors, and they

The American Designer Jewelry Movement: Where It Came from and Where It’s Going

Cindy EdelsteinJeweler’s Resource BureauPelham Manor, New York

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E-mail address: [email protected]

Figure 1. This collection of Lisa Jenks jewels show-cases her signature “modern primitive” motifs.

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106 SYMPOSIUM PROCEEDINGS ISSUE

benefited from the buzz generated by the unique,exciting pieces that designers created for these compe-titions.

Even the economy was a factor. As it recoveredfrom the ‘80s slump, those manufacturers still leftstanding saw that designers had done well in difficulttimes, so they adopted that approach as their own. Anew trend emerged: The mass-market manufacturerbegan taking on a designer look, sometimes line forline. Most designers are incensed by this trend, but forthe manufacturers it is a good marketing concept thathas already been tested. Today, this is a growing prac-tice, one that blurs the lines both between designer

and manufacturer and between true artistic talent andclever inspiration. We will see more of it in the yearsahead. Also ahead are the following trends:

In marketing, designers are reaching out directlyto the consumer through the retailer. First, designerscreated their own brochures and handouts, then theirown packaging, logo plaques, and even display units.Designers are not likely to relinquish this control. Inthe last five years, designers have made consumermagazine advertising a priority.

More recently, designers have embraced theInternet. They have put up Web sites as an extensionof their printed advertising materials, to control andpromote the image they want the consumer to have.The next logical step is e-commerce, and with itcomes the critical question: Will designers start to selldirectly to the consumer, and leave the retailer out ofthe chain? Only time will tell.

E-design is another digital influence to consider.Virtual-design technology that lets retailers work withtheir customers to create a custom design almostinstantaneously is already here. De Beers has just addeda program to its Web site with which consumers candesign their own engagement rings. This points to theobservation that if everyone can do it, then it is nolonger unique; since the lure of the unique is eternal,the challenge for true designers is to figure out how todifferentiate themselves and their work from the pack.

Another trend we see is a growing chasm betweenthe big guys and the not-so-big guys, as investors andlarge companies jump in either to back or swallow updesigner-owned businesses. For the really successfulmanufacturers out there, it might be easier to buysome designer talent than find it on their own.

More designers are opening their own stores,which helps strengthen the designers’ position in themarketplace for themselves and their retailers. But tobecome really big, designers will diversify into fashionaccessories, home accessories, and similar products aspart of a category called “lifestyle fulfillment.”

Will these trends bring about the demise of realjewelry designers, or will they stimulate greater inter-est in the designer jewelry movement as a whole?We’ll have to wait and see.

Figure 2. This dramatic sterling silver bracelet bydesigner Robert Lee Morris illustrates Morris’s use ofpositive and negative space and his ability to makemetal look fluid and soft. Photo by AB Studio,courtesy of Robert Lee Morris.

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GEMS & GEMOLOGY FALL 1999 107

HAT DOES IT MEAN to be a high-endjeweler? Do you simply sell more expen-

sive items than your industry cohorts? Doyou have fancier real estate? Do you have biggermarkups? Or do you act differently?

I suppose that being high-end means that your aver-age transaction is significantly higher than the norm andthat you primarily deal with the top 10% of the mon-eyed population, those who can afford to pay for yourmerchandise immediately or certainly within a year.

Note, though, that less than 1% of the U.S. popu-lation currently has a household income over$150,000 (approximately 2.2 million people). Andhouseholds with an income over $500,000 number amere 420,000. By the time these households pay theirtaxes and bills, how much is left? And how manyeven like or believe in owning jewelry? In essence,the top of the pyramid is very small. So if you’regoing to get into the chase in the new millennium,you’d better be prepared. Your competition will betough and coming from all directions. The Web-savvy customers in the new millennium will be muchmore informed than ever before. They will be able tolearn about products, grading criteria, manufacturers,designers, prices, and your competitors. They willknow the important questions to ask, and they willexpect you to be able to defend your claims.

Having said that, where does the high-end jewelergo from here—to this mind-boggling new millenni-um full of smart people?

When I visit our Neiman Marcus salons, I try tomake observations in the following four categories,which I believe will be the ingredients for success as ahigh-end jeweler: Facility, Support, Merchandise, andPeople. People are, by far, the most important.Merchandise is second.

Facility You have to have an arena in which to perform.Regardless of your salon’s size or style, it should be

inviting, relaxing, and well-lit. The environmentshould be as invisibly secure as possible. This newmillennium will bring much better security devices,detectors, showcase development, and light venues toallow us to make even better and more “user-friend-ly” presentations. After all, we are in one of the fewtruly romantic businesses. How romantic is it to bebuzzed in past the rent-a-guard, seated under thesurveillance camera with the sales associate fumblingthrough six keys to show you two items at a time,wiping your fingerprints off as they retest the firstitem they showed you with a diamond detector?

Your facility must make it easy for customers.They have limited patience, and their time is veryvaluable. A comfortable, well-appointed viewingroom is highly recommended.

SupportSupport areas include loss prevention, humanresources, advertising, marketing, public relations,credit services, information services, and inventorycontrol. Whether you have a staff for these areas orhave to wear all of these hats yourself, things aregoing to change. Again, technology is going to enableus to network more and save time so that we canfocus on our most important function: Selling jewels!

If you don’t have a bar code system, get one. Ifyou don’t surf the Net, start. It is a sea of information.There is software available to aid in almost all supportareas. Public relations, marketing, and advertising willall be especially important in either putting yourselfon the map or keeping yourself off it.

MerchandiseI think there are two great sins that get jewelers introuble: (1) Owning too much inventory, and (2) notknowing the real value of the merchandise. We are ina slow-turning, expensive-inventory business. Turn isthe biggest focus one should have. I think borrowinginventory is a great idea, if you can acquire it at the

Perspective of a High-End JewelerStephen MagnerNeiman Marcus

Dallas, Texas

RetailingRetailing

W

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108 SYMPOSIUM PROCEEDINGS ISSUE

right price. In addition, a high-end jeweler’s mer-chandise should have a look, a distinction. It is diffi-cult to make a statement if you try to be all things toall people.

Merchandise to me falls in one of five categories:designer, estate, traditional, and “precious” jewelry—and watches. All of these categories have a brightfuture for various reasons. I expect the new millenni-um to bring some wonderful new and innovativedesigners and watchmakers.

PeopleThis is the most important entity there is in this indus-try. The skills needed to be a successful high-end jew-eler are quite varied. They have not changed dramati-cally over the centuries: They have only intensified.

First—then, now, and always—you must be a sell-ing-minded communicator. You must be able toarticulate complex information to your clients, yourstaff members, your bankers, and your vendors.

You have to be aware of fashion, of businesstrends, of current events. You have to share somecommonality with your clients. Is the chairman of

your city’s largest company going to feel comfortabletaking your advice or that of a staff member? Thehigh-end jeweler in the new millennium will need tobe a socialite, a detective, an accountant, a gemolo-gist, a teacher, a marketing expert, and, of course, agreat salesperson. People buy jewels from the peoplethey like and trust. If all things are equal, you mustgive the customer a reason to shop with you.

The high-end retailer is also responsible for a stag-gering amount of product knowledge. You have toknow diamonds, colored stones, gold, platinum,treatments, trade-in values, watch making, setting,repairs, disclaimers, anti-trust laws, and so on. Thereare a lot of pitfalls, and because you are dealing withsuccessful, moneyed, demanding people, you reallyneed to know—or have access to knowledge on—everything related to the jewelry you sell.

The great reward is that you become the placewhere desires are fulfilled—the finder, the seller of rar-ities, the dealer of the precious commodity. The nextmillennium will actually be a lot of fun for those in thejewelry industry with enough dedication and patience.It is a lifelong journey, and a worthwhile one.

The merchandise carriedby a high-end jeweler

should have a special look,a distinctive quality. Such

quality is illustrated bythese pieces of high-endplatinum jewelry, from

Neiman Marcus’s Estatecollection, which are set

with diamonds and sap-phires. Courtesy of

Neiman Marcus.

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GEMS & GEMOLOGY FALL 1999 109

S RECENTLY AS THE MID-1980S, theidea of shopping from home meant flip-

ping through catalogs and other printedmedia. And while some catalogs came to representsizeable sales volumes, these were typically limited tocertain niches such as apparel and hobbies. Theynever developed into a major factor in the jewelrybusiness.

Today, electronic media are fundamentally chang-ing how people shop. With the growing appeal of tele-vision- and personal computer–based retail channels,the very definition of shopping is evolving. In the U.S.alone, three-quarters of all adults made purchases fromthe comfort of their homes in the past year. In cate-gories such as books and music, online retailers likeAmazon.com are stealing huge chunks of market shareaway from traditional bookstores and music retailers.

What does all this convergent e-commerce meanfor the jewelry industry: Does it mark the end of thetraditional jewelry retailer? Will everyone soon bebuying their jewelry from their couches? Or will thejewelry industry somehow remain uniquely immuneto all these tectonic shifts in retailing? The answer is“no” on all counts.

QVC has a unique perspective on electronicretailing. With 1998 net sales of $2.4 billion, QVC isnow larger than many well-established traditionalretailers such as Bloomingdale’s and catalog mer-chants such as L.L. Bean, and it is more than twicethe size of either The Home Shopping Network orAmazon.com. QVC’s TV- and PC-based retailingservices reach more than 70 million U.S. homes 24hours a day, and they will generate over 600 millionpage views, 100 million phone calls, and 60 million

package shipments in 1999. Within the jewelry cate-gory, QVC’s credentials are even more noteworthy:With annual U.S. shipped sales of over $1 billion injewelry alone, QVC is among the largest-volumejewelry retailers in the world’s largest consumer mar-ket. At its current growth rate, QVC will surpass $1.5billion in jewelry sales by 2002 (see figure 1).

QVC’s growth remains largely misunderstood byindustry observers, many of whom mistakenlyattribute QVC’s success to its technology and infra-structure. Yet, when the Harvard Business School did

Perspective of an Electronic RetailerJohn Calnon

QVCWest Chester, Pennsylvania

E-mail address: [email protected]

Figure 1. QVC projects jewelry sales of more than$1.5 billion in 2002, almost double the amount of10 years earlier.

A

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a case study on QVC, they found that QVC is less astory about technology, and more about a culture thatis obsessed with pleasing the customer. In their words(Rayport and Louie, 1997), QVC represents “abreakthrough service business.”

In fact, QVC represents that rarest of retail envi-ronments: one that is both consumer-friendly andbrand-friendly (figure 2). QVC provides an honest,relaxed, information-rich presentation of features andbenefits—without hype, paid audiences, or artificialstimulants. And its quality-assurance standards,money-back guarantee, and confidentiality policiesare built to ensure world-class customer satisfactionlevels. This in turn attracts an upscale, discerning, andvery loyal customer base.

Perhaps more importantly for the jewelry busi-ness, QVC is proving every day what most market-ing theorists can only talk about—that the power ofsynergy is very real. QVC’s televised shopping busi-

ness excels at creating demand that spills over to tra-ditional retail. Viewership data confirm that for everyorder QVC takes, the network reaches thousands ofviewers who ultimately choose to shop at traditionalretail. In many ways, QVC represents a true hybridof marketing and distribution, creating more overalldemand for a wide variety of categories, mostnotably jewelry. In direct contrast to the old-schoolretailing obsession with market share, retailing in thenew millennium will call for a new understanding ofhow channels of trade can actually complement oneanother. In the end analysis, a bracelet sold on QVCmeans many more sold at the jewelry counter.

RE F E R E N C E

Rayport J.F., Louie D.L. (1997) QVC, Inc. HarvardBusiness School Publishing, Boston, MA, 32 pp.

Figure 2. Two factors inQVC’s success as an electronic

retailer are its relaxed on-airpresentations and its efficiency

in handling customer orders.

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GEMS & GEMOLOGY FALL 1999 111

HERE ARE MANY WAYS for the jewelrymanufacturer to help the retailer be prof-

itable. Each is ultimately some form of cus-tomer service, a concept that extends far beyond justbeing courteous.

• Document. Be exacting, be precise with facts andfigures. Any time you can’t provide something forthe retailer, your sales representatives should bedocumenting it and finding out why not.

• Deliver on or before your promised dates.Add a little extra cushion to your estimateddate, which will allow for any unexpected prob-lems in the manufacturing process.

• Listen to the jewelers, and know exactlywhat their needs are. What are their specificproblems, what can they sell, what can’t theysell, what are the issues they must deal with on adaily basis? The manufacturer should set upfocus groups of customers throughout the coun-try to identify strengths and weaknesses.

• Help finance the retailer. Today’s manufac-turer often must serve as a bank for the retailer.Offer special terms for buying seasons, and offerspecial conditions for products they are unableto sell. Having your customer stuck with prod-uct is bad for everyone.

• Make it easy and pleasurable to do busi-ness with your company. Think about it:We spend half of our waking lives in business. Ifit’s painful to do business with you, a retailercan always switch to one of your many com-petitors, so you should make things fun, humor-ous, and personal.

• Be the retailer’s partner. Help the retailer cre-ate marketing campaigns and advertising pro-grams. Stores can’t carry everything on theircounters, so supply catalogs, CD-ROMs, andliterature that are retail-sensitive and priced cor-rectly. Never compete against them by sellingretail.

• Be flexible. It may seem difficult, but today’smanufacturer cannot set a minimum order.Every sale is crucially important to the retailer,whether it’s a $40,000 diamond or a 40-centfoil-backed stone. Even if it isn’t profitable,stock the product that the retailer needs to takecare of his or her customers. Similarly, be ableto customize and handle special orders.

• Provide “just-in-time” inventory. Theretailer should be able to rely on the manufac-turer to deliver rush orders directly to the con-sumer on time, every time. As more retailers arebecoming involved in commerce over theInternet, “just-in-time” inventory will becomeeven more important.

• Give your customer a little somethingextra, something more than what is expected.In Louisiana, we call this lagniappe. Whether it’scandies or a little bonus check, lagniappe canmake a surprising difference.

Once you’ve taken care of your customers andfinally made a little profit, the manufacturer’s nextresponsibility is to give something back to the indus-try. Support organizations, programs, and educationalseminars. Invest in our industry’s future to ensure thatit stays strong and bright.

Meeting Customer NeedsMatthew Stuller

Stuller Settings Inc.Lafayette, Louisiana

T

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S WE COMPLETE THE CENTURY, many fami-ly jewelry stores will have mastered the

basic merchandising, marketing, pricing,display, lighting, legal, and accounting functions thatenable them to compete successfully in the currentretail climate. As the millennium closes, however, thefamily jewelry store faces an uncertain future.Competitors will have access to the same techniques,technologies, and even creative energies. Continuingcommoditization and the public's demand for a bargain(or the illusion of a bargain) will put a strain on thesmall retailer, and ultimately the exhaustion of runningthe business and the squeeze on profits may force manyfamilies to seek a living elsewhere. How can the familybusiness hope to survive in the 21st century?

Importance of a Teaching RelationshipHistorically, much of the internal and external powerof a family business derives from the parent-child rela-tionship. Children require a caregiver in order to sur-vive. From the first month, the child forms emotionalattachments to the parent, and these are expanded inmyriad ways in a family business. Similar in kind,although different in structure, are the concepts ofapprenticeship and mentoring. All of these involve ateaching relationship— sometimes between old andyoung—with duty and respect as its core, and a life-long passion for work as its function. The author

believes that these types of relationships, when suc-cessful, have an integrity that propels those involvedto become the best they can be. At the same time,this philosophy represents a key business strategy:placing primary emphasis on staff development tocompete and win against large concentrations of jew-elry wealth in other merchandising formats.

The Complete RetailerSmaller retailers can take what is appropriate fromthe parent-child model, apprenticeship, and mentor-ing to develop their staff members into consummateprofessionals. That is, the employee is taught to“live” the entire retail jewelry experience, ratherthan merely being trained in certain aspects of prod-uct knowledge and salesmanship. Retailers, eventhose with established in-house training programs,generally expect too little from their staff members,and thus these employees learn only the minimumrequired. The complete retailer demands muchmore: detailed study of the history of our art, gemol-ogy, design, engineering (watch and shop technolo-gies), ethics, and law. A store that is always represent-ed by a well-trained, professional sales staff can morethan offset the apparent wizardry of technology andthe profit pinch of commoditization. Such training isan important key to longevity for the independentretail jewelry merchant.

Can a Family Business Compete in the 21st Century Jewelry Market?

Thomas TivolTivol Jewels

Kansas City, Missouri

A

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Panel DiscussionsDIAMOND PRODUCTIONIN THE 21ST CENTURYModerator: Sally E. EhmkeCoordinators: Sheryl Cashmore and Alan DeGhionno

MANUFACTURING AND MARKETING DIAMOND JEWELRY IN THE 21ST CENTURYModerator: Brook EllisCoordinators: Michael Clary and Phillip Yantzer

THE ROLE OF LABORATORY-GROWN MATERIALS IN THE 21ST CENTURY Moderator: Daniel W. CampbellCoordinators: Prashant Khatri and James R. Viall

THE LEADERSHIP ROLE OF FINE JEWELRY IN THE 21ST CENTURYModerator: Kathryn KimmelCoordinators: Vivianne Del Signore and Abba Steinfeld

MARKETING PEARL JEWELRY IN THE NEXT MILLENNIUMModerator: Seung-Hae MoonCoordinators: Diane Saito and Michael Evans

CRITICAL ISSUES IN THE 21ST CENTURYModerator: Jim LittmanCoordinators: Kim Cino and Bruce Lanzl

MARKETING OPPORTUNITIES IN THE 21ST CENTURYModerator: Fred StoccoCoordinators: Diane Flora and Doug Kennedy

THE IMPORTANCE OF ELECTRONIC NETWORKING IN THE 21ST CENTURYModerator: James MarkerCoordinators: Patrick Ball and Brian Genstel

The War RoomsCoordinators: Armando de Peralta (team leader), Laura Tanger,Shannon O’ Rourke, Nancy Podraza, Elaine Ferrari-Santhon,Donald J. Foster, Mark Johnson, and Paula Straub

BRANDING

APPRAISALS

DIAMOND CUT

DISCLOSURE

Panel Discussions & The War Rooms

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114 SYMPOSIUM PROCEEDINGS ISSUE

LOBAL DIAMOND PRODUCTION statisticsand projections for future sources and supply

were the focus of this panel. Individual expertsdiscussed production and exploration in the world’smost important mining regions: Africa, Australia,Russia, and Canada. Minor producing areas—pri-marily in South America, India, Indonesia, andChina—also were discussed.

AfricaJames Picton reported that, in 1998, Africa account-ed for 68.8 Mct—(60% by weight and 74% by value)of the approximately 114 Mct of rough diamondsmined worldwide. Botswana alone accounted for17% by weight, and 29% by value of the total.Jwaneng and Orapa should produce for another 45and 63 years, respectively, so Botswana will continueto be a major producer well into the 21st century.

South Africa, with its six major producing mines,presently contributes 9% by weight, and 17% byvalue, to world diamond production. The major pipemines—Venetia, Finsch, and Premier—will producefor at least 30 more years. South African beach andmarine producers Alexkor and Trans Hex account foronly 0.3% of current world production by weight,but the value is exceptionally high (US$275/ct and$379/ct, respectively). Angola and Namibia accountfor 11% and 6%, respectively, of world production byvalue (but only 3% and 1%, respectively, by weight).The (Democratic Republic of) Congo (formerlyZaire) accounts for about 27% of the world’s dia-

monds by weight, but only 6% by value (average$14/ct). Minor production also comes from Tanzaniaand certain West African countries, mainly Guinea,Ghana, and Sierra Leone.

Mr. Picton expects Africa to become even moreimportant in the next few years. For 2005, he fore-casts world rough diamond production at 122 Mct,with Africa accounting for 75% of this total both byweight (91.9 Mct) and value (average $81/ct). Theincrease of 23.1 Mct (above the 68.8 Mct in 1998),will come mainly from Angola, Botswana, and SouthAfrica. At present, De Beers’s (including Centenary)African production accounts for 28% of the worldtotal by weight and 50% by value; in 2005, these val-ues are projected to be 50% and 45%, respectively.

AustraliaDr. Bram Janse concentrated on the Argyle mineand its huge production during the last 15 years: over500 Mct from the pipe, and 40 Mct from nearby allu-vial sources. For each of the last seven years, Argylehas produced an average of about 40 Mct, equivalentto 35% of the world’s annual production by weight.On the basis of present ore reserves and the plannedexpansion of the pit, production is anticipated to con-tinue through 2005. Future underground explorationcould enable Argyle to stay active until 2009.

After years of exploration, Ashton Mining discov-ered the diamond-bearing Merlin kimberlite field,consisting of 12 small pipes, in the Northern Territoryabout 600 miles (960 km) east of Argyle. Now active,

Diamond Production in the 21st Century

PANELISTS

James Picton Petra Diamonds, Lanseria, South Africa

A. J. A. “Bram” Janse Archon Exploration, Perth, Australia

Uri Okoemov Alrosa, Moscow

James R. Rothwell BHP Diamonds, Vancouver, Canada

Alfred A. Levinson University of Calgary, Canada

G

PanelsPanels

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GEMS & GEMOLOGY FALL 1999 115

the mine is expected to produce for about five years.Production will be small (150,000–300,000 ct/yr), butthe diamonds are of good quality. Merlin’s mostly col-orless, well-crystallized diamonds are worth aboutUS$150/ct, whereas Argyle’s brownish and poorlyshaped stones are worth about $8/ct on average.Exploration is continuing in various parts of Australia.

RussiaUri Okoemov presented a detailed account of thediamond industry in Russia, starting with the estab-lishment of the mines and polishing factories in the1960s. Russia currently accounts for more than 20%of world diamond production by weight and is sec-ond only to Botswana in total value of rough.Russia’s polished production in 1997 exceededUS$700 million, so that it is now the world’s fifthlargest diamond manufacturing country.

Almost all (98%) of Russia’s rough diamond pro-duction comes from the Republic of Sakha (Yakutia)and is controlled by Alrosa. This government agencysells the rough diamonds on the world market and alsodistributes them to designated Russian cutting factories.About 97% of the polished production is exported.

It is estimated that Russia will eventually produce2.5 times more rough than at present, with Yakutiaaccounting for more than 40% of this amount. Theremaining 60% will come primarily from NorthernEuropean Russia (e.g., the Arkhangelsk region) andsouthern Siberia. New sources include: the Yubi-leynaya (Jubilee) pipe, opened in 1996; the Inter-nationalaya pipe, the first underground diamond minein Russia, scheduled to start production in 1999; andBotuobinskaya and Nyurbinskaya, two major pipes inYakutia that are scheduled to begin operations in2000 and 2002, respectively.

CanadaJames Rothwell discussed the world’s newest dia-mond-producing country. Particular emphasis was onthe Ekati mine in the Northwest Territories (NWT),which officially started production in October 1998. Ithas the potential to supply 4% of the world’s diamondsby weight (up to 4.5 Mct annually) and 6% by value;reserves are sufficient for at least 25 years.

The Panda pit is the first of five kimberlite pipesthat eventually will be mined at Ekati. It cost aboutUS$700 million to bring the Ekati mine to produc-

tion, including exploration. The mine is a joint ven-ture between BHP Diamonds Inc. (51%), Dia MetMinerals Ltd. (29%), C. E. Fipke (10%), and S. L.Blusson (10%). BHP Diamonds will distribute 35% ofits production through De Beers and 65% throughBHP’s own offices in Antwerp.

The outlook for additional diamond mines inCanada is promising. More than 300 kimberlites havebeen identified in the NWT alone. Diamond explo-ration activity is under way in the NWT by othercompanies at several promising kimberites, notablyDiavik, Jericho, Snap Lake, and Kennady Lake.Kimberlites have also been found in other parts ofCanada. It is estimated that Canada will supply about10% of the world’s rough diamonds by early in the21st century.

Other SourcesDr. Alfred Levinson discussed those diamond-pro-ducing countries not covered by the other panelists—each of which contributes < 2% of current world pro-duction. The six countries in this category are Brazil,Venezuela, Guyana, India, Indonesia, and China.

In the South American countries, mining is con-fined to alluvial deposits on the major rivers, forwhich the primary sources are largely unknown.Brazil is the most important of these, with up to 2Mct mined annually in recent years, mostly from thestates of Roraima (in the north) and Mato Grosso (inthe southwest). Brazil has at least 600 known kimber-lite and lamproite pipes. Although many are diamondbearing, none is economic at present. Considerableexploration activity is in progress.

Closely associated with the Brazilian alluvial dia-mond production in Roraima are deposits, also allu-vial and of unknown primary source, in adjacent partsof eastern Venezuela and Guyana. Alluvial diamondsare also mined in the Guaniamo district of westernVenezuela. The source of these diamonds has beentraced to uneconomic Precambrian kimberlites. Inrecent years, Venezuela and Guyana have producedannually up to 500,000 ct and 50,000 ct, respectively.

The remaining countries have only limited pro-duction at present: India (~25,000 ct/yr), Indonesia(~10,000 ct/yr), and China (~50,000–180,000 ct/yr).Exploration for diamonds in each of these countries iseither planned (India) or of minor significance(Indonesia, China) compared to that in other localities.

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116 SYMPOSIUM PROCEEDINGS ISSUE

HE 21ST CENTURY will mark a revolu-tion in the way diamond jewelry is manu-

factured and marketed. Banking practices, dis-tribution channels, diamond reports, niche marketing,and evolving marketing opportunities will create adiversity of challenges and opportunities for the dia-mond jewelry industry. This panel of innovative busi-nesspeople shared their views on these various aspectsof the diamond jewelry industry, with one resoundingconclusion: If the challenges presented are met with abalance of education, creativity, and business acumen,then more opportunities will be available than havebeen seen by any previous generation.

Financial PerspectiveAnna Martin described two key financial challengesfacing the diamond jewelry industry in the new centu-ry. The first challenge is the shift of inventory respon-sibility from retailer to manufacturer. In the past,retailers paid cash for inventory in a relatively shorttime. Now these same retailers are demanding thatmanufacturers provide memo, bin stocking, returns,and marketing support—without an increase in manu-facturers’ margins. Second, the industry needs to rein-vent itself. Vertical integration, with suppliers owningretail outlets and retailers owning manufacturing facili-ties, will become necessary. Retailers, faced withknowledgeable and cost-conscious consumers whohave alternate sources for their jewelry needs, oftenmust stretch credit terms to attract these consumers.

Mergers, acquisitions, and strategic alliances willstrengthen the industry so it can meet these challenges.

The financial centers are very optimistic about thefuture of the industry, according to Ms. Martin, andthey are proactively adapting their financing practicesto meet its needs.

Retailer’s PerspectiveEdward Bridge discussed the retailer’s perspective onthe five trends that will affect the gem and jewelryindustry in the next century. First is the overall econo-my. Since 1992, a great economic boom has seen dia-mond sales flourish in the U.S.; however, businessoperates in cycles, and there is no way to know whenthe current situation will change. Second, there willbe more competition and more distribution channels.Although only a small percentage of retail jewelerscurrently use the Internet, it represents a major shift inthe way diamond jewelry is bought and sold. In addi-tion, the Internet threatens to turn diamonds into acommodity. Approximately 80% of Web purchasesprovide “no smell, no feel” during the sales transac-tion. However, Mr. Bridge believes that, because ofthe nature of the product, people still will want to goto stores where they can touch, feel, and compare dia-monds.

The third trend is the application of new technolo-gy to diamonds. Color and clarity enhancements willcontinue to affect the way diamonds are sold.Branding and designers are the fourth trend. Althoughbrands cost more, this trend will differentiate dia-monds and protect their integrity. The fifth and finaltrend is demographic change. Aging baby-boomersand the transfer of wealth to new generations are cre-

Manufacturing and Marketing Diamond Jewelry in the 21st Century

PANELISTS

Anna Martin ABN AMRO Bank, New York

Edward Bridge Ben Bridge Jewelers, Seattle, Washington

Sheldon Kwiat Kwiat, Roisen and Ferman, New York

Eve Goldberg William Goldberg Diamond Corp., New York

Martin Gruber Nova Stylings, Van Nuys, California

T

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GEMS & GEMOLOGY FALL 1999 117

ating increased opportunities for selling diamond jew-elry. Retailers who recognize and address these trendswill realize success in the new century.

Role of Diamond ReportsSheldon Kwiat provided a history of the diamondgrading report and the opportunities that these reportspresent for future diamond sales. First introduced in1955, diamond reports have become a staple in the‘90s. The diamond report has changed the nature ofthe relationship between buyers and suppliers. At thesame time, consumer awareness of reports poses chal-lenges and offers opportunities. Sales associates must beeducated and trained to recognize the strengths andweaknesses of a diamond report, and they must con-vey this information to the consumer. Mr. Kwiatnoted that some retailers use reports to protect them-selves from overzealous sales associates. Althoughreports differ from one laboratory to the next, withdifferent grades, standardization is not practical ordesirable due to the demands of local markets.

Mr. Kwiat predicted that reports will have an evengreater impact in the future. In particular, there will bemore emphasis on cut. Demand by consumers andinsurers alike will increase, as will demand for addi-tional services such as laser inscription with reportnumbers and brand names. With the threats posed bydiamond substitutes, synthetics, treatments, andInternet fraud, there is a pressing need for trade associ-ations to meet on the future of diamond reports inorder to protect the consumer and the industry itself.

Marketing Fine DiamondsEve Goldberg noted that greater consumer wealthprovides opportunities to market high-quality dia-monds and designs. While acknowledging the increas-ing importance of reports and lists, she emphasizedthat marketing in the 21st century need not be limitedto these instruments. People are proud to sell a superi-or product, and they recognize that top cuts are creat-ed at a higher cost due to lower yields. The basicfoundation of diamond jewelry sales is a well-maderound-brilliant-cut diamond accentuated with a quali-ty setting; it takes more creativity to sell fancy cuts.The Internet provides a sales forum for lower-qualitydiamonds. However, those who want high-qualitydiamond jewelry with top cuts will use the Internetfor information only; then they will seek retailers inorder to see, feel, and admire the diamonds. These

consumers want to buy the best. Ms. Goldberg alsopredicted that there will be a return to romance in thefuture, which will provide new opportunities for man-ufacturers, suppliers, and retailers of diamond jewelry.

New Marketing OpportunitiesMartin Gruber questioned whether there is too muchmarketing opportunity. The Internet and advertisingin all media create a great amount of stimuli.However, with more opportunities now than everbefore, it could become difficult to recognize the onesthat will work. Mr. Gruber also noted that the devel-opment of designer brand names, a crossover from thefashion industry, is only going to increase until design-er brands become the norm. Baby-boomers withgreater discretionary funds are seeking something dif-ferent and unique. These consumers are now begin-ning to turn to artists for a less-commercialized, more-personalized new look. The limited distribution ofthese artisanal works provides the “uniqueness” soughtby this consuming group. Manufacturers are beingchallenged to develop new setting styles, using a largerrange of metals. Mr. Gruber called for balancebetween retailers, who have the ability to support lim-ited product lines, and designers, who can deliverthese products to the market.

Brand-name diamond jewelry, such as this KwiatCouture by Robin Garin, will become more prominentin the 21st century. Jewelry courtesy of Kwiat, Inc.;photo courtesy of Platinum Guild International USA.

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118 SYMPOSIUM PROCEEDINGS ISSUE

ABORATORY-GROWN MATERIALS have cer-tainly contributed to the constantly evolving

nature of the gem and jewelry industry. Newmaterials, and new processes by which lab-created gemsare made, present jewelers and gemologists with anever-growing number of opportunities and challenges.The panelists shared their unique perspectives on thisimportant topic by addressing the production and distri-bution of lab-created gems, their identification, oppor-tunities that these gem materials represent, and somespecific gems that may be created in the future.

Opportunities with Luxury SyntheticsTom Chatham was quick to point out that “change ishappening all around us,” and that we should be alertto the benefits change can bring. As examples, Mr.Chatham mentioned inventions such as the light bulband the telephone, which were not universally recog-nized as significant when they were first made public.Similarly, gems made in the laboratory have notalways been appreciated. The opportunities for suchmaterials, however, are growing tremendously. Lab-created gems provide a beautiful product with anattractive price tag. Mr. Chatham pointed out that thesupply of some natural gemstones is simply not keep-ing up with demand. In addition, natural gems aresubject to extensive manipulation, given the varioustreatments that exist today. Laboratory-grown materi-als have withstood the test of time, responded well tocompetition, and overcome the problems stemmingfrom a lack of understanding of the material.Customers who are properly educated are choosing

lab-created gems. As technology continues to advance,the options available to consumers will increase, pro-viding a wider variety of attractive alternatives to natu-ral gemstones.

Production and DistributionDr. Hisashi Machida addressed the topic of produc-tion and distribution from the perspective of KyoceraCorp., which first marketed Inamori-created emeraldin 1975. Inamori now produces 12 varieties of createdgem material: synthetic emerald, alexandrite, cat’s-eyealexandrite, blue sapphire, ruby, star ruby, pink sap-phire, yellow sapphire, “padparadscha” sapphire, greenchrysoberyl, white opal, and black opal. The syntheticemerald is produced using a flux method, the syntheticchrysoberyls and corundums by a combination of a fluxprocess and pulling, and the synthetic opal by precipi-tating tiny silica particles in water. According to Dr.Machida, all of these materials are easy to identify witha microscope. They all have characteristic internal fea-tures, such as the veil-like inclusions and phenakiteneedles found in the lab-created emeralds. Dr. Machidacalled attention to the fact that Inamori synthetic stonesare used in the creations of numerous jewelry design-ers. This jewelry is sold in traditional jewelry stores,department stores, catalogues, door-to-door, at exhibi-tion fairs, and in 20 Kyocera retail stores. LooseInamori synthetic stones are sold only by authorizeddealers who are skilled in explaining the factors that setthese gems apart from others. Various qualities areavailable, and they are graded using a system adaptedfrom the GIA colored stone grading system.

The Role of Laboratory-Grown Materials In the 21st Century

PANELISTS

Thomas Chatham Chatham Created Gems, San Francisco, California

Hisashi Machida Kyocera Corp., Tokyo

Emmanuel Fritsch University of Nantes, France

Kurt Nassau Nassau Consultants, Lebanon, New Jersey

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Identification ChallengesDr. Emmanuel Fritsch cautioned that, in the lastdecade, more attention has been paid to the detectionof treatments than to the identification of laboratory-grown materials. Dr. Fritsch stated that “the best basisfor the identification of synthetics is a keen sense ofobservation.” In those situations where observation andclassical gemology are not sufficient, however, advancedinstrumentation becomes essential. There are a numberof such sophisticated tools and practices. UV-visible-near infrared absorption spectroscopy, for example, canbe useful in detecting most synthetics, because they usu-ally are more transparent to ultraviolet radiation than arenatural gems. Other techniques that Dr. Fritsch men-tioned are infrared absorption spectroscopy, X-ray fluo-rescence, and laser Raman microspectrometry. Therealso are instruments that are gem specific, such as theDiamondSure and DiamondView (developed by DeBeers), which are used only to separate natural fromsynthetic diamonds. In the future, instruments willneed to be developed or adapted to look at details thatwe cannot study at present. One such tool would bethe ion probe, which detects impurities one or twoorders of magnitude smaller than is possible with instru-ments commonly in use today.

Future Synthetic GemstonesIn making his predictions for new synthetic gemstonesof the 21st century, Dr. Kurt Nassau referred to actualdevelopments that had come about since he had origi-nally predicted them in his book Gems Made by Man(1980). One material that he predicted 20 years agowas gem-quality synthetic moissanite. This has becomean important diamond simulant, with 14,000 caratsshipped by the manufacturer in the first three monthsof 1999 alone. Dr. Nassau pointed out that there havebeen one or two significant new laboratory-growngem materials every decade for the past 20 or 30 years.Laboratory-grown gem materials that have becomemore important in the past two decades include syn-thetic ametrine, synthetic red beryl, flux-grown syn-thetic red spinel, and synthetic diamond.

Dr. Nassau believes that we will continue to see theintroduction of new synthetic gems, despite the factthat the “easy” synthetics already have been grown.Although in years past, certain individuals and compa-nies set out to create gem materials for the jewelryindustry, recent synthetics are “spin-offs” of technologyfocused on other industries, and this trend is likely to

continue. Hydrothermal synthetic tourmaline andtopaz may become available, but they probably will notbe economically viable in the near future. Gems thatare more likely to be synthesized commercially,according to Dr. Nassau, are malachite, jadeite, andnephrite. It is even possible that a truly synthetic pearlwill be developed.

From the AudienceDuring the question-and-answer session, it becameapparent that there is real concern among jewelers andgemologists regarding the accurate and consistent iden-tification of laboratory-grown gems. Dr. Nassau wasasked if he thought synthetic tanzanite would everbecome available commercially. He replied that it wasunlikely, although Mr. Chatham said that his companyhas been considering the possibility. Another attendeewanted to know how large a synthetic emerald couldbe grown, presumably so that she could make certainassumptions about the identity of large emeralds thatshe might encounter. Mr. Chatham did not put hermind at ease when he responded that there is aChatham-created emerald in the Smithsonian thatweighs 14,000 ct. A rumor that synthetic moissanitecould be treated in such a way as to make it isotropicwas also questioned. The concerned party was assuredthat such a result is impossible.

Synthetic moissanite (here, approximately 0.4–0.7ct each) is one of the newest laboratory-grown materi-als to enter the gem and jewelry trade. Photo cour-tesy of Charles & Colvard.

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120 SYMPOSIUM PROCEEDINGS ISSUE

RADITIONALLY, THE WORLD’S finest jewelryhouses have set the standards by which lux-

ury goods are sold. They have defined mer-chandising trends, marketing and branding strategies,and customer service standards that the rest of theretail jewelry industry emulates. It is no wonder thatthe industry now looks to these houses for guidanceregarding the future. Members of this panel addresseda number of key issues that affect the way businesseswill be run in the 21st century. Among them are massretailing, e-commerce, emerging technologies, andchanging global markets.

The Gübelin GroupThomas Gübelin provided an optimistic analysis ofthe European luxury goods market. The current mar-ket is prospering as a result of the fall of the IronCurtain and the consolidation of national economies.Today, 60% of the wealth is concentrated in thehands of consumers who are 50+ years old. About70% of European households own jewelry, and themarket has yet to approach saturation. There is astrong trend in women making purchases for them-selves. Tastes tend toward the traditional and under-stated, with preferences for white metals, includingstainless steel for watches. Diamond is the most popu-lar gemstone, with aquamarine and tanzanite as popu-lar colored stones. Mr. Gübelin has observed a changein the attitude of the European consumer, who nowfeels less obligated to hold on to inherited jewelry andis more apt to update or sell it. Competition is brisk,and low-end European retailers are now using dis-

counting as a means of differentiating themselves. Mr.Gübelin’s advice to retailers is to use custom designs,quality guarantees, and customer service as the meansto gain a competitive edge.

CartierDespite somber predictions pointing to the Internet,catalog marketers, and mass merchandising as accom-plices in the demise of the traditional retailing envi-ronment, Ralph Destino remains positive about thefuture. A high-end jewelry or specialty store can offershoppers a pleasurable experience that is not duplicat-ed by any other format—an inviting setting, a uniqueproduct, social interaction, and a sense of community.Mr. Destino also discounted the discounters, citingstudies by both the Roper Group and theMendelsohn Organization that show that the youngAmerican consumer is informed, responsive to prod-ucts embodying craftsmanship and design integrity,and willing to pay a premium for top-quality, lastingmerchandise. Regarding the Internet, Mr. Destinoconceded that most luxury brands see it more as athreat than an opportunity. With the Internet comesthe possibility of a gray market of goods offered atsteep discounts, eroded brand images and prestige,ruptured distribution networks, and threats to estab-lished pricing structures.

FortunoffHelene Fortunoff argued that rather than fine jewel-ry houses influencing the industry at large, business-at-large is now the “pied piper.“ She cited the roles

The Leadership Role of Fine Jewelry in the 21st Century

PANELISTS

Thomas Gübelin The Gübelin Group, Lucerne, Switzerland

Ralph Destino Cartier Inc., New York

Helene Fortunoff Fortunoff, Uniondale, New York

Henri Barguirdjian Van Cleef & Arpels, New York

Terry Davidson Asprey & Garrard, London

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that auction houses and e-commerce are playing inshaping the industry. The elaborate and expensivemarketing techniques employed by auction houseshave resulted in $2 billion in turnover, with approxi-mately $700 million in fine-jewelry sales. Auctionhouses have successfully extended their market shareinto niches once solely occupied by retailers; and withthe acquisition of Butterfield & Butterfield by eBay,auction houses are now extending their territory intocyberspace.

Another force to be reckoned with is electronichome shopping, which currently accounts for 12% ofindustry sales. With more than one-third of its pro-gramming devoted to 14K jewelry, the home shop-ping network QVC averages 270,000 customers perday. Unlike Mr. Destino, Ms. Fortunoff is a propo-nent of the powers of cyberspace to sell product andpromote brand identity and message. Her company iscurrently rebuilding its Web site to include an onlinebridal registry, complete with catalog and onlineordering capabilities. Plans for Fortunoff include“embracing new retail modalities to expand nationallywithout real estate” and courting “the new consumer. . . to overcome the competition’s simplistic depen-dence on price alone by extending the ‘TrustFortunoff ’ franchise.”

Van Cleef & ArpelsHenri Barguirdjian recalled that the luxury goodsmarket once catered only to the super-rich, but todaythis market does more business than ever before byappealing to a broader base. That is because jewelrycontinues to function as a universal symbol of love,and this will not change in the next millennium. Theindependent jeweler will continue to be the key con-tact in the transaction, providing the customer with alevel of intimacy that is not found in other sellingenvironments. Mr. Barguirdjian offered two keyingredients for business growth: integrity and creativi-ty. Clients today are more informed about their pur-chases, but they are also more confused by the vastarray of information available regarding products,treatments, and brands. Absolute disclosure about theproduct is essential, as is impeccable customer service.With shrinking margins in loose stones, the secondingredient for business growth becomes the creativityand originality of designs. The new breed of client isyounger, and price is not an issue. These clients look

to jewelry as a status symbol, but it also must be fash-ionable, enjoyable, and adaptable to their lifestyles.

Asprey & Garrard

Terry Davidson admitted that while Asprey &Garrard may have little name recognition in the U.S.,his company represents the recent merger of two ofthe oldest purveyors of luxury products in the UnitedKingdom. With the two houses combined, Asprey &Garrard represents more than 400 years of customwork in leather, objets d’art, silver, and jewelry. Theirin-house designers and workshops allow the firm tocontinue the production of one-of-a-kind goods.Today’s customers are even more discerning thantheir predecessors were. Well-traveled and inspired bythe different cultures they encounter, they bring theirinformed tastes to bear when selecting jewelry andother luxury goods. In a video clip, Mr. Davidsondemonstrated Asprey & Garrard’s recently launchedbranded diamond, the Eternal Cut, which is beingoffered in a range of jewelry styles. As worldeconomies gain strength, the future for fine jewelry ispromising. But to stay competitive, Mr. Davidsonwarned, “We must supply innovative product that ismanufactured, merchandised, and marketed to thehighest standard, and offer our clients a service that isnext to none.”

A commontheme of thispanel was theimportance of design inmaintaining a competitive posi-tion. This diamond and sapphirepanther is representative of the distinc-tive designs that are the hallmark ofCartier Inc.

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122 SYMPOSIUM PROCEEDINGS ISSUE

HE PRESENTATIONS BY THESE PANELISTS

seemed to have one theme in common: Thepearl market is thriving. With the many varieties

and price points of pearls today, there is something forall segments of the market in the next millennium.

Strategy for the 21st CenturyKoichi Takahashi began his presentation with alook back at the beginnings of the cultured pearl

market. He retraced some of Kokichi Mikimoto’sfootsteps, from the first cultured pearl recovered byMikimoto's wife Ume in 1893, to the pearls he gaveto celebrities such as Marilyn Monroe. Mr.Takahashi explained how Mikimoto’s promotionsstill incorporate these celebrities and reported thatthe company’s plans for the future include also sell-ing gift items such as pens, scarves, vases, and watch-es. Quality, craftsmanship, design, and artistry are allimportant in the promotion of pearls today and willbe important in the future.

The Benefits of QualityAmong the first to market cultured pearls in theUnited States was Frank Mastoloni. In the 1950s,natural pearls were hard to come by, so he decidedto enter the cultured pearl market. It was a greatalternative to imitation pearls, as the cultured pearlswere actually grown in the sea. Mr. Mastolonidescribed the many products available today, includ-ing Chinese freshwater, South Sea, and Tahitian cul-tured pearls—and how these products can be pro-moted to all market segments. There are fine-qualitypearls in all varieties. He emphasized the importanceof product knowledge, noting that if different quali-ties are explained to customers, they will choose thebetter-quality goods. In closing, Mr. Mastolonioffered the maxim “Quality is long rememberedafter price is forgotten.”

Importance of DesignEve Alfillé predicted that designer pieces will playan important role in preventing cultured pearls from

Marketing Pearl JewelryIn the Next Millennium

PANELISTS

Koichi Takahashi Mikimoto, New York

Frank Mastoloni Frank Mastoloni & Sons, New York

Eve Alfillé Eve J. Alfillé Ltd., Evanston, Illinois

Gina Latendresse American Pearl Company, Nashville, Tennessee

Ralph Rossini Honora Ltd., New York

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A wide variety of cultured pearls will provide excitingopportunities for consumers in the 21st century. Thesestrands show some of the colors available for South Seacultured pearls. Photo courtesy of Mikimoto.

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GEMS & GEMOLOGY FALL 1999 123

becoming a commodity in the next millennium.Before the new varieties of cultured pearls becamemore readily available, Akoya cultured pearls domi-nated the market. Designs were very basic: roundpearls made into strands and stud earrings. Accordingto Ms. Alfillé, the retailer should entice the customerinto purchasing all of the different types of culturedpearls now available. Tying in pearl designs withclothing fashions will help increase sales. Designershowpieces enhance the prestige of cultured pearlsand attract the upscale customer.

Specialty Products

There is great versatility in cultured pearls todaybecause of the many varieties of mollusks in whichthey are cultivated. But in her presentation, GinaLatendresse went beyond the Akoya, Chinese fresh-water, South Sea, and Tahitian varieties. Other addi-tions to the mix include natural abalone pearls,

conch "pearls," melo melo "pearls," American natu-ral and cultured pearls, Domé pearls and, culturedmabé pearls from French Polynesia, Mexico, andNew Zealand. Ms. Latendresse emphasized thatoffering this expanded palette of pearl colors andshapes will keep the retailer’s business fresh.

The Chinese Products“The pearls of the future”: new shapes, new colors,and—best of all—affordable. If you were to askRalph Rossini what that statement describes, hewould not hesitate to answer, “Chinese freshwatercultured pearls.” Today, a larger audience can ownthick-nacred, good-luster pearls at a lower pricepoint. These products come in a wide variety of col-ors, shapes, and sizes, thus allowing for new, fash-ionable creations. During his presentation of a recenttrip to the pearl farms in China, Mr. Rossini showedone mollusk that was being implanted with enoughpieces of mantle tissue to yield about 40 culturedpearls. China's production for the present year isprojected to be approximately 1,500 tons. If theChinese pearl farms continue to produce at this rate,there certainly will be sufficient supply as we moveinto the new century.

“Specialty” pearls add a distinctive look to creativeJewelry designs. This brooch, “Earth’s Twilight” byNina Ward, features an American cultured Domépearl with emerald-cut tourmalines (0.25–1.88 ct)from Brazil, 3 mm Maine tourmalines, and diamonds.Photo courtesy of American Pearl Co.

Sales of fine-quality pearl jewelry, such as thisparure featuring white South Sea cultured pearls, areenhanced through product knowledge. The culturedpearls in the earring and the ring are approximately13 mm in diameter; photo courtesy of Mikimoto.

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124 SYMPOSIUM PROCEEDINGS ISSUE

HIS PANEL OF LEADERS from key seg-ments of the industry examined various

critical issues that face the retail and guildjeweler, jewelry manufacturer, and diamond or col-ored stone dealer. Although the specific challengespresented by each panelist differed, they seemed toshare a number of common themes, especially theneed to build and maintain the industry’s image, toimprove staff and customer education, and toembrace or prepare for the inevitable change that the21st century will bring.

Retail JewelersThe retail jeweler, standing directly on the front line,must demonstrate professional core elements to suc-ceed in the new century. Matthew Runci cautionedthat the ability to gather unlimited information fromthe Internet without an informed perspective, com-bined with the possibility of diluted branding, couldultimately confuse the consumer. Mr. Runci went onto outline a three-tiered “Millennial Strategy” for theretail jeweler.

1. Integrity: The retail jeweler must behave ethicallyand follow rules of professional conduct. Jewelersmust make sound judgments and ethical deci-sions when confronted with business dilemmas.

2. Knowledge: Jewelers must make a lifelong com-mitment to career development with continuing

education not only for themselves, but also fortheir staff members and their customers.

3. Skills: A jeweler’s skills are his or her livelihood,and each jeweler must enhance those skills anddevelop a qualified staff, through testing and cer-tification.

Manufacturing JewelersIn the United States, manufacturing jewelers todayface some of their most difficult times ever. JamesMarquart reported that many U.S. firms have lostnearly one-third of their workforce, which has result-ed in a reduction in domestic and global market sharefor these organizations. The key to the success andregrowth of this segment in the coming millenniumlies in several critical areas. One focus must be onhelping the industry sell its products, which in part isbeing addressed through consumer advertising cam-paigns that include consumer magazines, billboards,and co-op pieces with clothing manufacturers andretailers. Another key is to overcome United Statestrade policies that have hindered the ability of manu-facturing jewelers to distribute their products to theworld market. Mr. Marquart reported that MJSA isworking with the U.S. government to draft a newinternational trade policy that will reduce or eliminatemany current tariff-based trade barriers and level theplaying field for the U.S. manufacturing jeweler.

Critical Issues in the 21st Century

PANELISTS

Matthew Runci Jewelers of America, New York

James Marquart Manufacturing Jewelers and Suppliers of America, Providence, Rhode Island

Douglas Hucker American Gem Trade Association, Dallas, Texas

Robert Bridel American Gem Society, Las Vegas, Nevada

Eli Izhakoff J. Izhakoff & Sons, New York

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Colored Stone DealersThe technological and ethical challenges facing the col-ored stone market are certainly not news, but advancesin treatments and synthetics continue to emerge at arecord pace. Douglas Hucker stressed that ethicsregarding disclosure, and education to stay on top oftechnology, will guarantee the success of colored stonedealers and retailers in the future. Mr. Hucker alsoadded that today’s consumer, being more informedabout colored stones, is looking to make a more seriouscolored stone jewelry purchase. It is still up to the col-ored stone retailer, however, to fill in the informationgaps, and to promptly answer the variety of questionsthat consumers are sure to ask. Every salesperson musthave the education to answer technical questions, but itis equally important to promote and maintain thebeauty and romance of colored stones, which are whatattract the customer in the first place.

Guild RetailersRobert Bridel provided valuable insight into howguild retailers can elevate their businesses throughinnovative marketing, the use of available technology,and customer service. Some of the marketing strate-gies Mr. Bridel proposed include one-on-one mar-keting to individuals, the implementation of nonjew-elry events—such as concerts or book readings—tobring potential new customers into a store, andadherence to strict standards for advertising and pric-ing. The use of new technology could promote andsupport a business. For example, a Web site can showproduct samples or even sell products, profile cus-tomers on-line, or strengthen operations and manage-ment internally. Mr. Bridel suggested that the jeweler“make a friend of every potential customer,” thenpamper those customers with personalized service andclear, reasonable selling practices.

Diamond DealersA positive light was shed on the state of the diamondindustry by Eli Izhakoff, former head of the WorldFederation of Diamond Bourses. Mr. Izhakoff report-ed that supply and demand for diamonds seems to berunning hand-in-hand, with Far East markets experi-encing a resurgence. He cautioned, however, that thelarge diamond companies will become even larger in

the new millennium, and that small and medium-sizebusinesses will need to face the likelihood of shrinkingdistribution channels, or ultimately they will risk elim-ination. He further stated that although there are newcritical issues facing diamond dealers, this resilientindustry has regularly thrived in the face of seeminglyinsurmountable challenges. Laboratory grading reportsand price sheets, which were rejected in the 1970s and‘80s, have now become almost indispensable tools.The new challenges seem to be treatments and pro-cesses, as well as the trend toward diamond branding.Mr. Izhakoff believes that the industry will respondaccordingly and learn to accept—and even embrace—the changes on the horizon.

Trade organizations not only foster business integri-ty, but they are also a source of knowledge for staffmembers and their customers alike.

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126 SYMPOSIUM PROCEEDINGS ISSUE

S WE MOVE INTO THE NEW millennium,jewelers want to know where the best

prospects will be found for new products,greater market share, and—of course—increased sales.This spirited panel looked at maximizing opportuni-ties in five key categories: colored stones, gold jewel-ry, diamonds, platinum, and watches.

Colored StonesWhat tools are available to make customers moreaware of, and comfortable with, colored stones?According to Susan Jacques, a well-trained sales staffand the use of the Internet can both inform and sell.Today, attractive catalogs can serve many purposes:in-store use, direct mail, and even an electronic ver-sion on your company’s Web site. Her experience hasshown that: (1) educated customers are far more likelyto make a purchase, (2) customers will sometimesbecome fascinated about treatment processes ratherthan consider them a negative, and (3) beauty is oftenmore important than whether the gemstone beingoffered is one of the “big three” (ruby, sapphire, oremerald). Because of the greater interest in, and avail-ability of, many colored gems, they will continue tobe important in the future.

GoldReferring to an item of jewelry as a contemporarydesign simply because it is manufactured in the pre-sent is both unfortunate and inappropriate, accordingto Leopoldo Poli. He prefers to assimilate the most

profound and significant events, emotions, behavior,music, and the words of the time in which we live—and then recreate them in a stylized figure. Thus, thejewel truly reflects the period in which it was created.This is accomplished by innovation, which hedescribes as ably interpreting and expressing the high

Marketing Opportunities in the 21st Century

PANELISTS

Susan Jacques Borsheim’s, Omaha, Nebraska

Leopoldo Poli La Nouvelle Bague, Florence, Italy

Andrew Johnson The Johnson Family’s Diamond Cellar, Dublin, Ohio

Scott Kay Scott Kay, Inc., Hackensack, New Jersey

Laurence Grunstein Citizen Watch Company, Lyndhurst, New Jersey

AAttractive promotional materials make usefulmarketing tools. At Borsheim’s, the jewelrycatalog is available for in-store use, as well asthrough direct mail and on the Internet. Photocourtesy of Borsheim’s.

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GEMS & GEMOLOGY FALL 1999 127

est values of out time, not by repeating stylistic codes.Ultimately, the designer needs to be the creator ofcustomer satisfaction.

DiamondsA common theme found in Andrew Johnson’s pre-sentation was the importance of modern technologyin the future of marketing diamonds. Expanding mar-kets in Asia, India, South America, and EasternEurope can be reached by means of the Internet,telecommunications, and overnight shipping. By usingvarious combinations of traditional and modern mar-keting techniques, the retailer can reach all generationsof consumers. In addition, use of demographics makesit easier to track customer lifestyles and life events forwhich diamonds can be packaged. As diamondsbecome more of a commodity and profit margins con-tinue to shrink, massive amounts of information willbe needed to remain competitive in the future.

PlatinumFrom a fad to a trend: Scott Kay traced the recentpopularity of platinum jewelry from the 1980s, whenjewelry was primarily all yellow; to two-tone jewelry

(50/50); to white metal with little yellow accents; tothe all-white platinum jewelry that we’re seeingtoday. “Platinum is to metal what diamonds are togemstones” was repeated throughout his presentation.He credited the bridal market with “driving the fash-ion end of our business.” In Mr. Kay’s opinion, whitemetal will overtake yellow as the color of choice inthe 21st century.

WatchesAccording to statistics offered by LaurenceGrunstein, last year approximately one in fourAmericans bought a wristwatch. Narrowing the dis-cussion to watches over $50, he reported that 17.6million such watches were sold in the U.S. in 1998,with jewelry stores responsible for approximately 40%of these sales. These numbers are expected to increaseas jewelers take advantage of brand recognition, prod-uct training, customer support, point-of-sale materi-als, customizable displays, advertising, and co-opadvertising. For most jewelry stores, Mr. Grunsteinrecommended that they carry five or six watch brandsthat do not overlap one another and that best fit thecustomer profile of their store.

Consumer preference for beauty is contributing to the popularity of colored gemstones other than ruby, sapphire,and emerald. The 18K white and yellow gold rings shown here were designed by Jean-François Albert, andfeature aquamarine, yellow beryl, tanzanite, pink and green tourmaline, and amethyst—some of which areaccented with diamonds. Innovative designs, such as the “SignatureFit” self-sizing mechanism in these rings,enhance customer satisfaction. Photo courtesy of Jean-François Albert.

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128 SYMPOSIUM PROCEEDINGS ISSUE

he Internet, a New Distribution ChannelCiting recent research conducted by the

Gannett Group of newspapers, Jacques Voorheesnoted that 83% of U.S. consumers plan to buy some-thing online in the next 12 months. He added thatelectronic commerce revenue could swell to as muchas $3.2 trillion in 2002. Against this statistical backdropof extraordinary growth, Mr. Voorhees described thethree basic types of jewelry Web sites now online:

• Information-only Web sites, where no actualcommerce is conducted.

• Commerce sites directed to the consumer, withsearchable databases that list certificate specifica-tions and pricing information.

• Commerce sites restricted to the trade only.Trade passwords are required to access these sites,a measure designed to protect the retailer.

Traditionally, products were warehoused and soldlocally at the point of sale. This arrangement accom-modated the immediate transfer of money and mer-chandise, as well as any first-hand product knowledgethat was needed. Along with the advent of overnightdelivery service and payment by credit card, theInternet has transformed the traditional distributionsystem in all industries by making the ordering, pay-ment, and delivery processes almost instantaneous.

Mr. Voorhees emphasized that the physical storewill never disappear altogether. Some consumers willcontinue to shop in the traditional store as long asconcerns exist over credit card security and the relia-bility of online product information. The retailer

must keep these shoppers coming to his or her store,all the while taking steps to evolve in an Internetenvironment. Retailers, too, can use the Internet forsourcing, which will lower their own cost of goods.

The Power of a Virtual MarketplaceDespite the unprecedented growth of the digitaleconomy, Martin Rapaport believes that we haveonly witnessed the beginning of an InformationTechnology Revolution. This revolution promises tobring about a historic shift in society, economics, andvirtually every aspect of our lives. In fact, what we areseeing now is so powerful that none of us fully real-izes how big it is. The spectacular growth of high-tech stocks is only the first indication of a massiveeconomic shift in the balance of power.

According to Mr. Rapaport, having your compa-ny’s products or product information available on theWeb is no longer optional. Denying your companyan online presence, he warned, is comparable to tak-ing down your sign from a storefront, or removingyour company’s listing from the phone book. Headvised being careful with how the information isused—think about it strategically, and incorporate itinto every aspect of your business. While informationis power, he explained, well-managed information iseven more power, and information that is used toreach out and market is awesome power.

In closing, Mr. Rapaport predicted that theInternet’s single most profound impact will be toreduce the cost of retailing. He urged the audience totake advantage of “the greatest opportunity that hasever come to the diamond industry.”

The Importance of Electronic Networking in the 21st Century

PANELISTS

Jacques Voorhees Polygon Network, Dillon, Colorado

Martin Rapaport Rapaport Diamond Report, New York

Fred Mouawad Precious Link, Bangkok

Dona Dirlam Gemological Institute of America, Carlsbad, California

Richard Drucker Gemworld International Inc., Northbrook, Illinois

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GEMS & GEMOLOGY FALL 1999 129

The Benefits of Network Interaction

Fred Mouawad encouraged traditional retailers to useonline networks to compete with the new breed of vir-tual retailer, the “giants.com” who are eroding retailmargins by buying directly from manufacturers andselling directly to consumers. Mr. Mouawad defined anetwork as an information service that is accessiblethrough connected computers and provides a mediumfor trading and information exchange. By using theresources of an online network, retailers can centralizetheir entire stock and offer it to a worldwide audience“just in time.” The resources of a network include:

• Community—Members are encouraged to shareinformation. Forums are available for voicingopinions, asking questions, and making contacts.

• Trading—Inventory is readily available and canbe uploaded immediately.

• Directory—Members are able to find people,searching by product category, region, or com-pany name. The directory allows the retail storeto broaden both its customer base and its supplierbase.

• Services—Members are offered a news centerthat keeps them informed about the industry, aswell as advertising services.

Mr. Mouawad recommended that retailers checkwith their various trade associations to see how theyare participating online.

Evaluating the Message and the MessengerA more democratic flow of information exists todaythan ever before. While this is undoubtedly a positiveaspect of the Internet, Dona Dirlam cautioned thatwe face the increasing difficulty of assessing thesecountless layers of information. Accordingly, Ms.Dirlam presented the following strategy for informationevaluation:

• What is the purpose of the information that isprovided on a particular Web site? Is it intendedto inform or to sell?

• How up-to-date is it? Timeliness can be critical.Check the date of the site, and the dates on theinformation given.

• Is the Web site more useful and efficient thanother resources (e.g., a reference librarian)?

Ms. Dirlam also offered some perspective for infor-mation providers:

• Keep in mind your audience, and the purpose ofyour Web page. Remember to check grammarand spelling.

• Copyrights: In the Information Age, how do youmaintain rights to information? Copyright lawshave been strictly enforced in the past, but willthat hold true in the 21st century?

• The conservation and archiving of informationwill take on an even more important role.Where will all of this information be 50 yearsfrom now?

Integrating Traditional Media and NetworksThe ability to provide more information to customersis the best use of the Internet, according to RichardDrucker. Pure information is usually the first reason aperson goes to the Internet; purchasing is secondary.Although Web sites are capable of providing muchmore information than single-page magazine ads, forinstance, Mr. Drucker recommended using traditionalmedia to get people to your site. Magazine ads shouldalways list the Web site. Banner advertisements andlinks from other Web sites are effective ways of draw-ing people to your own. Likewise, selling advertisingspace on your own site is a good source of revenue.

Mr. Drucker pointed out that developing a cor-porate Web site can be relatively easy and inexpen-sive. A company can develop a Web site on its own,or else it should set aside some money from its bud-get. In his opinion, money spent on the Internet isthe most cost-effective investment a business canmake. The site itself does not have to be sophisticat-ed—but it does need to be up-to-date, so that visitorswill have a reason to return.

Once people reach your Web site, it is important tokeep them there. To do this, Mr. Drucker recom-mended that companies use a clear and simple screendesign. Keep in mind the 60-second rule: You only haveone minute at the most to keep people interested.

Acknowledging the widespread flow of misinfor-mation via the Internet, Mr. Drucker recommendedusing this problem to your advantage by openlyaddressing it for your customers. Doing so gives youan excellent opportunity to educate them and earntheir trust.

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130 SYMPOSIUM PROCEEDINGS ISSUE

With few exceptions, the use of productbranding as a key marketing tool has beena relative latecomer to the fine jewelry

industry. Unlike luxury watches, for example, whichappeal to consumers largely by manufacturer name,gems and precious metals have traditionally engen-dered desire through their own inherent qualities.

Product branding in fine jewelry has developedwith the emergence of "designer" jewelry. Theheightened consumer recognition of designer brands,such as those of New York's David Yurman or ses-sion panelists Stephen Lagos and Scott Kay, hasspawned a new wave of companies seeking to echotheir success.

At the heart of the issue in the jewelry industry iswhat appears to be a conflict between branded prod-uct and efforts by individual retail jewelers to establishthemselves--their own store names—as the principalbrand. This sets the stage for potential confusionwithin the minds of consumers in instances such asprint or televised advertisements. A retailer may befaced with weighing the relative importance of itsown name vis-à-vis a name product when determin-ing which angle to emphasize.

The principal bone of contention in jewelrybranding arose when Scott Kay intimated that per-ceived image, perhaps to the elimination of all otherfactors, is of utmost importance. Other panelistsquickly rallied to the concept of product quality asbeing necessary for establishing and maintaining a

name brand. Essentially, they argued, a product mustdistinguish itself from others in intrinsic value beforeconsumers will buy into it. Cartier's Ralph Destinodescribed a brand as a company's signature pledge ofquality—a solemn, mutually understood contractbetween buyer and seller.

However, finished jewelry was not the main areaof interest among the audience. Over the past twoyears, there has been virulent debate concerningefforts by De Beers to brand loose polished diamonds.Moderator Whitney Sielaff briefly outlined the histo-ry of these efforts. London-based De Beers has beenproviding and promoting “De Beers” diamonds at aseveral-unit retail chain in England under a pilot pro-gram that was announced in January 1999. The dis-tinction of these branded diamonds lies in advertisingand a microscopic inscription on their tables that canbe read only with high magnification.

Recently, De Beers launched a global initiativeinvolving similarly “branded” stones that are sold as a“limited Millennium edition.” A dozen or so careful-ly selected De Beers customers have received theprivilege of selling these stones, which appear to befetching a generous premium. Diamond dealers suchas panelist Sheldon David have reported sell-throughof their entire inventories, even before they havereceived the goods.

Many in the diamond community see theMillennium diamonds as a test of the salability of theDe Beers name in America, the world's largest con-

Branding War Room

PANEL

Elizabeth Chatelain MVI Marketing Ltd., Los Angeles

Sheldon David W.B. David & Co., New York

Esther Fortunoff Fortunoff, Uniondale, New York

Eli Haas Diamond Dealers Club, New York

Scott Kay Scott Kay, Inc., Hackensack, New Jersey

Steven Lagos Lagos Inc., Philadelphia, Pennsylvania

Al Molina Molina Fine Jewelers, Phoenix, Arizona

Glenn Rothman Hearts on Fire, Boston, Massachusetts

MODERATOR

Whitney Sielaff Publisher, National Jeweler

War RoomsWar Rooms

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GEMS & GEMOLOGY FALL 1999 131

suming market for gem diamonds. Panelist Eli Haasargued that such efforts by De Beers could eventuallydivide the trade into “haves” and “have-nots.”Essentially, a small group of selected De Beers cus-tomers could control the De Beers diamond franchise,while all other dealers wallow in a second-tier marketof nonbranded product.

The two-hour session fell far short of exhaustingthe topic of branding. In the end, however, itappeared that the gem and jewelry industry is stoical-ly embracing the belief that change of this nature isimminent. Suppliers and retailers alike will findthemselves in a position where survival demandsevolution.

“In the end, it all comes down to the customer: What the cus-

tomer wants, what the customer isdemanding. And the customer is asking

for brands—brands to give them confidence, brands to give

them consistency.”

—Glenn Rothman

“I think that branding is an excellent idea—for De Beers.

For the rest of us in the industry. .. . I think it spells a tremendous

disaster.”

—Eli Haas

“I challenge anybody in this room to tell me that they don’t makemoney on David Yurman. The prod-

uct sells, it turns out the store.”

—Scott Kay

“I certainly think that while De Beers has a brand name that is

about mining, or diamonds, or love,I’m not sure that they have a brandof diamond that anyone associates

with the product.”

—Esther Fortunoff

“Everybody’s obsessing about De Beers, but the last I heard this is

America, and it’s the land of competi-tion. What’s to stop all of us from

making one brand and another brand,and 20 or 30 brands. It doesn’t have tobe a De Beers brand. Why are we so

afraid of De Beers?”

—Sean Cohen,Rand Diamond Cutting Works

“De Beers is not saying that they’re going to brand every diamond. They are

lending their name, their integrity, to a dia-mond of a special quality and a special color,which they feel will . . . bring a value added

to their product that [retailers] will be able to sell in their stores.”

—Sheldon David

“Most of you think you

have a brand, and the reality is you don’t.

A brand is the instant ability to identify with and

about a name. For example, if I said, ‘Coca-Cola,’

almost everybody in this room could either taste

it, smell it, visualize the can it comes in,

visualize the last time they

bought it.”—Elizabeth Chatelain

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132 SYMPOSIUM PROCEEDINGS ISSUE

M oderator David Federman kicked off theWar Room by asking the panel to namethe biggest problem (from a consumer

perspective) in appraisals today. The overwhelmingconsensus was that using overvalued appraisals—par-ticularly overstating color and clarity—as a sales tool isthe most significant problem. Al Gilbertson and CosAltobelli, however, cited a lack of formal educationon the part of some appraisers. Ralph Joseph coun-tered, “Ignorance can be cured much more easilythan chicanery. What offends me and what I think isdisgraceful in this industry is when the appraiser

knows better and puts together an organized decep-tion against the public.”

After Anna Miller, Joseph Tenhagen, AnneBlumer, and Kirk Root related “horror stories” ofgrossly inflated appraisals, the role of insurance com-panies emerged as a topic of debate. From the audi-ence, Gary Wright contended that jewelry stores,appraisers, labs, and insurance companies are “co-conspirators” in the inflated appraisal. Ms. Blumerdenied the accusation, stating that agents, underwrit-ers, and claims representatives are not gemologists—rather, they must rely on jewelers and appraisers foraccurate information. Ms. Blumer mentioned an in-house training program currently in development atState Farm Insurance that would establish appraisaland appraiser criteria for company employees.

A turning point came when Cecilia Gardner ofthe Jewelers Vigilance Committee rose from theaudience to speak on the enforcement of ethical stan-dards for appraisers. Describing the disciplinary codeshe is subject to as an attorney and a member of thebar, she endorsed the establishment of a bar-like gov-erning board through which the appraisal industrywould police itself. The plan received widespreadsupport from War Room participants and audiencemembers, and the closing discussion turned to thetopic of the educational standards that should be setby such a governing body. Most agreed that the stan-dards already exist, but the more difficult matter isenforcing them throughout the appraisal industry.

Appraisals War Room

PANEL

Cos Altobelli Altobelli Jewelers, Hollywood, California

Anne Blumer State Farm Insurance Company, Bloomington, Illinois

Al Gilbertson Gem Profiles, Albany, Oregon

Ralph Joseph The Jewelry Judge of Princeton, Princeton, New Jersey

Anna Miller Master Valuer Program, Pearland, Texas

Don Palmieri Gemological Appraisal Association, Pittsburgh, Pennsylvania

Kirk Root Kirk Root Designs, Austin, Texas

Joseph Tenhagen Joseph Tenhagen Gemstones, Miami, Florida

MODERATOR

David Federman Executive Editor, Modern Jeweler

Ronald Harder outlines Jewelers Mutual InsuranceCompany’s policy on accepting appraisals.

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GEMS & GEMOLOGY FALL 1999 133

“The courts are friendly to consumers, and if they knew

what was going on in our indus-try they would not be very

friendly to us at all.”

—Don Palmieri

“The only time we’re going to clean up the situationis if you can’t practice apprais-ing unless you’re empoweredto do so by a bar society. Theword ‘appraisal’ should belongto the profession, and not to

the practitioners.”

—David Federman

“Every small Israeli jeweler knows that Princess cut will be bought

probably 40% less than the list, and then—very naively—three times this value will beput on top to try and sell it. In my opinion,

that is not fraud. . . . If you don’t giveguidelines to the industry, you will

never solve the problem.”

—Menahem Sevdermish,Menavi International, Ltd.

“I’m not in the insurance business, but insurance is a business.

They don’t want to reject a lot of appraisals.In many cases, the value is what they use to

assign premiums. So they’re normally not too concerned unless it looks

outrageous. It’s a business.”

—Joseph Tenhagen

“The minimum is appraisal theory and practical knowledge in ourfield. There’s no question that there are

people appraising today who don’t have aclue about gemology.”

—Al Gilbertson

“We have inflated credentials.

We have inflated grades, and we have

inflated appraisals. How much fraud do

we want to perpetrate on the consumer

before we lose all of their confidence?

These exposés could run

every night.”—Don Palmieri

“The final proof comes when you have a claim.

In our case, what we do is replace it with the jeweler who sold it, and that

helps create this bond between the cus-tomer and the jeweler. We really don’t

have that many problems with the appraisals that we receive, but we

do question quite a few.”

—Ronald Harder, Jewelers Mutual Insurance Company

Cecilia Gardner: “Is it ever ethical for a jeweler who sells a jewelry item to also provide

to that consumer a document called an appraisal?”

Kirk Root: “I’m a manufacturer, and I have copyrighted items. Nobody is more quali-fied than I am to appraise that piece, because I sell

it every day for a certain price. That piece isappraised for exactly what it’s sold for

at the retail price.”

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134 SYMPOSIUM PROCEEDINGS ISSUE

Moderator Chaim Even-Zohar opened theWar Room with a brief background dis-cussion of Marcel Tolkowsky’s calculations

of “ideal” proportions, and the implications of GIA’s1998 diamond cut study (Gems & Gemology, Vol. 34,No. 3, pp. 158–183). His first question was for Dr.Reinitz: “Apparently GIA has reversed itself [onTolkowsky] . . . . Why did GIA change its mind onthe Ideal Cut?”

Dr. Reinitz replied, “It’s not fair to say that wechanged our minds.” She went on to explain thatwith the evolution of computer technology, it wastime to reevaluate the complexities of cut and appear-ance with tools that Tolkowsky did not have access to80 years ago.

Following a brief skirmish over the use of the termIdeal and whether such a cut actually exists, twoopposing sides quickly emerged—what could betermed “Idealists vs. Realists.” The Idealists, led byMr. Goldberg and Mr. Speisman (and supported byseveral retailers from the audience), denounced thecut quality of many diamonds on the market today.Insisting that diamonds should be cut for maximumbeauty above all other considerations, they called oncutters to elevate their standards. Behind Mr. Austein,the Realists contended that it is economically unreal-istic to do so. Consumer tastes and spending resourcesvary—some prefer quality, some prefer value —andit is the industry’s responsibility to meet, rather thandictate, the demands of the market.

Next, Mr. Even-Zohar guided the War Roominto a discussion on cut grading. While not everyoneon the panel or in the audience supported the idea ofincluding a cut grade on diamond certificates, thosewho did generally agreed that such informationwould have to be conveyed to the public in a waythat could easily be understood.

Diamond Cut War Room

PANEL

Eric Austein Leo Schachter Diamonds, New York

Al Gilbertson Gem Profiles, Albany, Oregon

William Goldberg William Goldberg Diamond Corp., New York

Niels Ruddy Hansen Niels Ruddy Hansen Aps, Brondby, Denmark

Ilene Reinitz GIA Gem Trade Laboratory, New York

Robert Speisman Lazare Kaplan International, New York

Richard von Sternberg Eight Star Diamond Co., Santa Rosa, California

MODERATOR

Chaim Even-Zohar Publisher, Mazal U’Bracha

Retail jeweler Gary Wright of Phoenix,Arizona, argues that a cut grade should beavailable on diamond certificates.

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GEMS & GEMOLOGY FALL 1999 135

“The difference is that the salesperson in the shop has changed. . . . Now we

have an industry where the sales force moves around. Andyou have a sales force that has no knowledge. So thereforethe only way they can sell is to have numbers. What we

really ought to do is get the sales force back to loving what they sell.”

— Doug Garrod

Gemmological Association and Gem Testing Laboratory of Great Britain

“We can’t tell yet whether there’s any one set of proportions that are radically,

obviously better at making a pretty, shiny, brightdispersive diamond than other proportions.

This problem is not yet solved . . . . It’s still an open question.”

—Ilene Reinitz, ON GIA’S DIAMOND CUT STUDY

“The world has different tastes,

and [the Ideal cut] mayvery much be anAmerican thing.”

—Chaim Even-Zohar

“One of the concerns that I have is that a lot of the stones that

are on the market at the moment aren’tIdeal cut. Not only are they not Ideal cut,

they’re really Lousy cut. I suggest to you allthat if we all improve the make of diamonds

above a certain line, above a certain point, then we can actually in-crease the market size for all

diamond jewelry.”

—Garry Holloway, Precious Metals

“This has all stepped up in direct proportion to thepopularity of Ideal cut, as if

there’s a group there that says,‘This is getting too big.’ When

it was less than one percentand it was Lazare Kaplan,

it was okay.”

—Robert Speisman

“We’re in an information-overload

society. We’re into paper. We’re into numbers, we’re intodefinitive pockets . . . People are

asking for information, let them decide.”

—Gary Wright, Gary W. Wright Co.

PROPOSING THAT A CUT GRADE

BE INCLUDED ON CERTIFICATES

“I’d like to change the name of this room from War Room to Love Room,

because I think it’s important . . . that we love what we’re selling.”

— William Goldberg

“It’s rather astonishing on

the eve of the 2nd millennium that

we’re basing some of the most important deci-

sions in our industry on . . . a master’s thesis

written in 1919. If you’re going to set a

standard, do it right.”—Eli Haas,

ON THE INFLUENCE OF TOLKOWSKY

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136 SYMPOSIUM PROCEEDINGS ISSUE

M oderator Cheryl Kremkow launched thesession with a round-table discussion onthe U.S. Federal Trade Commission

(FTC) rules on disclosure of gemstone treatments andenhancements. In the FTC’s original (pre-1996)Guides for the Jewelry Industry, all information aboutcolor alteration of diamonds and colored stones hadto be passed on to the consumer. In 1996, the Guideswere revised to state that if the alteration is perma-nent, disclosure was not necessary. However, the JVCrecently initiated a petition to change the FTC’sGuides to reflect the industry’s consensus on laser

drilling, which although permanent and not requiringspecial care, the industry felt needed to be disclosed.The FTC has accepted the petition, and has proposedaltering the Guides to require disclosure of treatmentsin diamonds as well as colored stones even if they arepermanent, require no special care, and are unde-tectable—as long as they have a significant effect onthe value of the gemstone.

The War Room panel agreed that the retail jewel-er is responsible for providing treatment informationto consumers, but also admitted that full disclosure isnot yet a reality throughout the trade. Questions werethen directed to those in the industry who deal withlaboratory grading reports and appraisals: How arethey going to address the disclosure and valuation oftreated gemstones, especially diamonds? While thecolored stone industry has been dealing with disclo-sure for years, only recently has the issue come to theforefront in the diamond industry. Fueling the discus-sion was the controversy over Lazare Kaplan Inter-national’s marketing (through its Antwerp-based sub-sidiary Pegasus Overseas Ltd.—POL) of diamondstreated by an “undetectable” process. Although allseemed to agree that disclosure was essential, therewas disagreement on the approach that should betaken. As the audience became embroiled in theissues, two general positions emerged: (1) those whofelt it important to state upfront that there is a treat-ment, and (2) those who preferred to disclose on amore cautious, need-to-know basis.

Disclosure War Room

PANEL

Jeffrey Fischer Fischer Diamonds, New York

Nanette Forester American Lapidary Artists, Los Angeles

Esther Fortunoff Fortunoff, Uniondale, New York

Cecilia Gardner Jewelers Vigilance Committee (JVC), New York

Mary Johnson GIA Gem Trade Laboratory, Carlsbad, California

Roland Naftule Nafco Gems, Scottsdale, Arizona

Francesco Roberto Capellaro & Co. S.P.A., Milan, Italy

George Rossman California Institute of Technology, Pasadena, California

MODERATOR

Cheryl Kremkow Editor, Modern Jeweler

Cheryl Kremkow and the panel listen as TomChatham offers his opinion on the topic of disclosure.

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GEMS & GEMOLOGY FALL 1999 137

“I think that everything should be disclosed. And if you don’tknow that it is treated or enhanced,then you have to assume that it is.”

—Roland Naftule“This treatment is here, Lazare Kaplan is not going to

wait and GE is not going to wait for any-body. . . . The only thing you can really

do is support the hell out of GIA’s basic research.”

—Martin Rapaport

“The important issue here is to provide the information to the consumer at thepoint of sale. . . . One thing that retailer jewelers

must do is train their sales associates.”

—Cecilia Gardner

“For the longest time it was very difficult to take the ‘sin’ outof synthetics. . . . now synthetics

are looking to have much more integrity.”

—Gerald Manning,Manning International

“Reality check. There’s going to be

an article in the New York Times that says ‘Diamonds

are treated’ . . . And if you’re not going to disclose now,

when are you going to disclose? When they put your

picture in the New York Times and say

‘Look at these guys’?”—Martin Rapaport,

Rapaport Diamond Report“It just seems a little bit premature to start telling every

single consumer that every single diamondmight have been treated for color. I believe

in disclosure, but it seems like it doesn’t totally make sense.”

—Esther Fortunoff

“I need to know and I think every consumer needs to know what’s

been done to their stone . . . . It’s really okay totell somebody [that] a year or two years from nowyour stone will need to be retreated, re-enhanced.Bring it back and we’ll take care of it for you. . . .

It’s the responsibility of a retail jeweler to do that.”

—Nanette Forester

“It was not as if Lazare Kaplan tried to sneak something and got awaywith it. We put a moratorium on the

goods at our expense in order to do theright thing— to have a dialogue with the

industry. . . . Had we wanted to sneakone by, we easily could have.”

—Robert Speisman“I take the attitude that if you are withholding something—that is, if you are

not disclosing it—then perhaps you are trying to deceive me. . . .”

—George Rossman

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138 SYMPOSIUM PROCEEDINGS ISSUE

Poster SessionAbstracts

Poster SessionAbstracts

138 COLORED STONES

155 DIAMONDS

160 GENERAL GEMOLOGY

164 GEMSTONE MARKETING

168 JEWELRY

171 PEARLS

173 SYNTHETICS AND SIMULANTS

Copper Tourmaline from Paraíba,Brazil: Reopening of the Mine,Regional Exploration

Heitor D. Barbosa, Heitorita Tourmalina da ParaíbaMineração, Paraíba, Brazil; and Brian C. Cook([email protected]), Nature’s Geometry,Graton, California

Since its arrival on the market in 1989, the vivid anduniquely colored tourmaline from Paraíba has becomelegendary. The coloration is produced by traces ofcopper (Cu2+), which was previously not known to bea coloring agent in tourmaline (Fritsch et al., 1990). Asof this writing, only one location has produced excep-tional gem material: a single small hill, the backdropfor the village of São José da Batalha in Brazil’s ruggednortheast state, Paraíba. Subsequent to this first discov-ery, other pegmatites in the region have been found tocontain tourmaline that is colored by copper, althoughnot of equal gem quality. When these occurrenceswere plotted on a geologic map, they were found toalign in a narrow band with a N–NE regional trendextending some 90 km. Metallic elements found in thepegmatite minerals of the region—U, W, Ta, Sn, Nb,Mn, Be, and Li—formed zoned assemblages along thistrend. In a simplified view, this zonation forms con-

centric bands radiating outward from the center of thepegmatite field (Roy et al., 1964). Superimposing theplot of Cu-bearing tourmaline occurrences on the mapcreates a narrow band within this concentric zoningpattern. This distinctive imprint of the metals in theearth’s crust was apparently generated from the radiantheat of the mobile plutonic emplacement some 520-plus million years ago.

For eight years, from 1990 on, general strife con-sumed the mine; the haphazard and reckless excava-tions done without control of the original founder,Heitor Barbosa, proved both costly and futile. In 1998,however, the legal controversy was resolved andHeitor Barbosa reactivated the mine with SergioBarbosa. The land adjacent to the mine was alsoopened up for exploration at this time, and a more sys-tematic program of exploration and mining is nowunder way.

RE F E R E N C E S

Fritsch E., Shigley J.E., Rossman G.R., Mercer M.E.,Muhlmeister S.M., Moon M. (1990) Gem-quality cuprian-elbaite tourmalines from São José da Batalha, Paraíba, Brazil.Gems & Gemology, Vol. 26, No. 3, pp. 189–205.

Roy L.R., Dotton O., Madon H.L. (1964) Estudos dos Pegmatitosdo Rio Grande do Norte e da Paraíba, SUDENE, Departamentode Recursos Naturais Divisao Geologia, serie geologia eco-nomica No. 1.

COLORED STONESCOLORED STONES

A Marketplace of New IdeasCoordinators:

James E. Shigley and Dona Mary Dirlam

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GEMS & GEMOLOGY FALL 1999 139

Gem Vesuvianite and Grossularfrom the Vata Area, ApuseniMountains, RomaniaCorina Ionescu ([email protected]),Lucretia Ghergari, and Antonela Vadan,Babes-Bolyai University, Cluj-Napoca, Romania

In the southern part of the Apuseni Mountains, alongthe upper course of the Cerboaia Valley, there are sev-eral occurrences of vesuvianite, grossular, wollastonite,gehlenite, and Ti-andradite (melanite). These mineralsformed within Ca-skarns, through high-temperaturecontact-metasomatic processes between Upper Jurassiclimestones and Lower Cretaceous quartz–monzodiorit-ic intrusives (see figure).

Vesuvianite forms transparent, “olive” green, short-prismatic crystals that show a vitreous luster and rangeup to 5 × 2 cm. Despite its attractive color and highluster, the vesuvianite is not suitable for faceting largestones, because of the presence of tiny inclusions ofgarnet and wollastonite. The physico–chemical featuresof the vesuvianite were investigated by crystallographicstudies, microprobe analysis, infrared spectroscopy, andX-ray powder diffraction analysis.

Electron microprobe analyses of a cross-sectionfrom each of four vesuvianite crystals were performedby Dr. Sidsel Grundvig at the Geologisk Institut ofAarhus Universitet, Denmark. The chemical composi-tion varied within narrow limits, but did show subtlechemical zoning. The cell parameters of the vesuvian-ite, obtained by X-ray powder diffraction analysis, are:a=15.42(1) Å and c=11.70(2) Å.

Grossular forms translucent, “olive” green, dodeca-hedral crystals with a vitreous luster. The calculatedcell parameter is a=11.82(5) Å. The grossular crystalsare quite large (up to 1.5–2.0 cm), translucent, andhave a fine color.

RE F E R E N C E

Cioflica G. (1960) Contributions to the knowledge of the contactphenomena in the Magureaua Vata area (Drocea Mountains)[in Romanian]. Studii Cercetari Geologie Geofizica Geografie,Seria Geologie, Vol. 3, No. 1, pp. 509–518.

Jasper Occurrences in the Brad Area,Apuseni Mountains (Romania)Lucretia Ghergari ([email protected]), CorinaIonescu, and Zsolt Püspoki, Babes-Bolyai University,Cluj-Napoca, Romania

In the Apuseni Mountains of western Romania, poly-colored jasper is hosted by andesitic volcanic depositsassociated with a Neogene stratovolcano (see figure).

The jasper is genetically related to geyser activity, andforms lenses that measure 10 –30 m thick and range upto 0.01 km2 in surface area.

The genesis of the jasper deposits (i.e., geyserites)began with the accumulation of various detrital frag-ments (composed of limestone, andesite, and andesiticand rhyolitic tuff) in small lakes formed near the vol-cano. Post-volcanic, subaquatic hot springs deposited

This geologic map of the Vata area (after Cioflica, 1960)shows the occurrence of the gem-quality vesuvianite andgrossular. Key: 1 —Upper Jurassic limestones; 2—LowerCretaceous clays and sandstones; 3—Mesozoic ophiolites;4—Upper Cretaceous intrusives; 5—Vesuvianite + grossular+ wollastonite + gehlenite + Ti-andradite (melanite) occur-rences.

This geologic sketch map of the Brad area, Romania,shows (1) the Quaternary deposits, (2) the Neogeneandesitic volcanic deposits, and (3) the jasper occurrences.

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silica gels between the fragments, and these gels precip-itated as cristobalite/tridymite. Later, microcrystallinequartz (chalcedony) partially replaced the cristobalite.The various colors of the jasper are caused by traces ofFe2O3 and MnO2. Mineralogically, the varieties cristo-balite/tridymite, quartz-cristobalite/tridymite, andquartzitic geyserite were recognized. Several colorvarieties of the geyserite were also defined: black,brown, red and reddish brown, orange, yellow andyellowish white, gray, “ochre,” off-white, and white.These varieties showed systematic differences in theirmineralogy and, in some cases, texture.

Central Asia: A Prime Source ofGemstones for the 21st CenturyGary W. Bowersox ([email protected]), GeoVision, Inc., Honolulu, Hawaii

Central Asia is poised to become a major source ofgems and minerals in the 21st century. At present,Afghanistan, Kazakhstan, Kyrgyzstan, Pakistan, andTajikistan are supplying the world markets with com-mercial quantities of gem-quality emerald, spinel, ruby,sapphire, aquamarine, tourmaline, and lapis lazuli.Other gems being mined on a smaller scale are topaz,morganite, garnet, and quartz (amethyst, rock crystal,and smoky varieties).

At the 7th Symposium on the Gems and Mineralsof Afghanistan, held in Tucson, Arizona in February1998, plans were developed to expand geological andgemological studies in Central Asia. Symposium atten-dees included tribal leaders and miners, as well as rep-resentatives from GeoVision Inc., ERDAS Inc., GIA,and the U.S. Geological Survey. Detailed mappingbegan in Afghanistan during the summer of 1998 usingGPS (Ground Positioning System) in conjunction withsatellite and radar data that incorporated the latest geo-physical technology and computer imaging models.During the summer of 1999, another field excursionusing satellite and GPS systems surveyed the emeraldmines at Panjshir, Afghanistan. A ruby-bearing area inTajikistan was also visited, which recently yielded afacet-quality ruby weighing 50.08 ct. A Central AsianGem and Mineral Symposium is being planned forAugust 2000 in Pakistan.

Red BerylClint Christenson and Gordon Austin ([email protected]),Gemstone Mining Inc., Cedar City, Utah

The Ruby Violet red beryl deposit was discovered andstaked by Lamar Hodges in 1958, while prospecting foruranium. Located in the Wah Wah Mountains of

Beaver County, Utah, the deposit is accessible by dirtroads from the towns of Milford, Minersville, andCedar City. Elevations vary from 6,700 to 7,100 feet( 2,042 to 2,165 m ) above sea level. Average tempera-tures range from 100°F ( 38°C ) in the summer to 10°F(−12°C) in the winter. The ore processing plant islocated about 25 miles (40 km) east of the mine on theflats west of the Mineral Mountains.

The Hodges family worked the deposit as a hobbymine for 18 years, until 1976, when Mr. Hodges soldthe mining rights of the Ruby Violet property to theHarris family of Delta, Utah. During the next 20 years,the Harris family performed small-scale mechanizedand hand mining from the surface.

In 1994, Kennecott Exploration Corp. entered intoan “Option to Purchase with Exploration Rights” withthe claim owners. Gemstone Mining Inc. assumed theagreement in March 1997. Under this agreement,Gemstone Mining has carried out an extensive pro-gram to sample the red beryl deposit, to assay the sam-ple by traditional gemstone techniques of cutting andsorting, and to estimate the wholesale prices of thegems. The distribution of values within the deposit is,as yet, only partly understood. The decision to under-take larger-scale mining will depend on the ability todistinguish ore-grade material from waste. It is believedthat the large-scale mechanized mining and crystalrecovery (of up to 2,000 kg per year) planned byGemstone Mining Inc. will be successful.

Gemstones and Global TectonicsFrederick A. Cook ([email protected]),Jeffrey E. Patterson, and Robert M. Scarborough,University of Calgary, Alberta, Canada

As world shortages of gem materials become increasing-ly acute in the future, new deposits may be found withtechniques that incorporate modern concepts of globaltectonics. The earth’s outer 100-km-thick outer “shell”is broken into plates that shift, separate, and collide withone another. Continents, on which nearly all gems arefound, are products of these plate tectonic processes,which have been active over more than 3.5 billionyears. The main plate tectonic features or processesapplicable to gemstone exploration are the following:

1. Diamonds form beneath ancient cratons (i.e.,ancient, thick, stable regions of the earth’scrust). The source of the carbon was either thedeep earth interior or terrestrial material thatsubducted when one plate was overridden byanother.

2. Rifts where two plates separate provide heat for

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tectonic uplift, volcanism, and the formation oftectonic uplift, volcanism, and the formation ofmagma chambers (i.e., plutons). Peridot fromthe mantle is associated with basaltic volcanics inrift zones, and granitic pegmatites in continentalrifts are the source of beryl and topaz.Hydrothermal alteration associated with riftingproduces red beryl, topaz, and opal in volcanicrocks, and turquoise and opal in sedimentaryrocks.

3. As plates separate, ocean basins open until oneplate sinks into the mantle at a subductionzone. Near a depth of 100 km, melting pro-duces subduction magmatism that causes volcan-ism and plutonism. Some sapphires and rubiesare carried to the surface in the associated alkalibasalts. Subduction-related granitic pegmatitesare sources of tourmaline, beryl, and topaz, andnear-surface granite plutons provide berylliumfor emerald formation.

4. Subduction culminates when terranes are suturedalong collision zones. Metamorphism of oceanicsediments and basalts produces jadeite andnephrite, respectively, and these may be upliftednear suture zones. Granitic pegmatites mayincorporate chromium from suture-zone ocean-ic rocks to form emeralds, and the metamor-phism of continental sediments can form lapislazuli.

Using global tectonic concepts, we have proposedthat gem pegmatites often occur where a continent ispartly subducted, and that geophysical tools can delin-eate such regions. This multi-faceted approach led todiscovery of a previously unknown topaz pegmatite inthe Yukon Territory, Canada, in 1998.

Tanzanite Mining Update—A Follow-Upto the Mine Disaster of April 9, 1998 atMerelani, TanzaniaAngelique Crown ([email protected]),GIA, Carlsbad, California

How did the catastrophic floods that swept theMerelani mining area of Tanzania affect the miners,and what is being done to help prevent another suchdisaster in the future? This update on the mining con-ditions and other recent developments is a result of myvisit to the Merelani mining area in late April 1999.

Nestled between the mountains of Meru andKilimanjaro in northeast Tanzania, Merelani (alsocalled Mererani or Mirarani) is the only commercialsource of tanzanite in the world. The Merelani mining

area is divided into four government-controlledregions (Blocks A, B, C, and D). Block B was affectedmost by the flooding last year. Prior to the flooding, asmany as 50 “pits” had been allocated at Block Bthrough mining contracts to individual licensed com-panies. When the El Niño rains fell, a surge of waterand mud flooded the pits and invaded the intricatemaze of tunnels. The primitive mining conditions andtools hindered rescue of the trapped miners. Althoughthe exact number who died may never be known, theTanzanian government has confirmed 77 deaths andsome reports indicate that up to 200 miners may haveperished in the flooding.

The government of Tanzania responded to this dis-aster by mandating the construction of “collars” madeof wood or other durable materials at each pit opening.Many of the pits that I observed did, in fact, have rein-forcements. Also, wooden ladders were installed byindividual mine operators to provide safer access tosome of the shafts, replacing the single ropes that wereformerly used as the sole means of entry and exit.

In response to this tragedy, the American GemTrade Association (AGTA) organized the TanzaniteMiners Relief Fund and appointed Philip Zahm chair-man. Approximately $35,000 has been raised so far,which is designated for use to provide medical/rescuetraining and adequate shelter for the miners. In April1999, three emergency medical technician/paramedicpersonnel accompanied Mr. Zahm to Merelani to con-duct a three-day training session for 15 miners invitedby TAMIDA (Tanzanite Mineral Dealers Association).At the conclusion of the session, the miners successfullybandaged, stabilized, and properly lifted a “victim”from the depths of a 300-m-deep pit.

I observed the training activity and had an opportu-nity to speak (through a translator) with several of theminers; many commented that the training wouldtremendously improve the response to any future disas-ters. In the past, the rescuers used a large sack withholes cut for the legs to hoist injured miners to the sur-face. The training taught the rescuers how to stabilizeand move such victims to minimize the potential forneck or spine injury.

The Tanzanite Miners Relief Fund has alsofinanced the construction of a shelter (140 m2) near thetraining site on Block D, which now provides a properresting area for the miners and will serve as a refugeduring storms.

During my visit to Blocks B, C, and D, I observedlimited mining only at Blocks B and D. The relativequiescence of the mines may have been due to a localholiday. However, Block C was officially closed,

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because the license and mining contract had recentlybeen sold to a joint venture consisting of African GemMining Resources (AFGEM) and Tanzanian nationalsby Graphtan Mining, a subsidiary of SAMAX Ltd. (agold exploration company). Although graphite hasbeen the main material mined there, commercial pro-duction of tanzanite from the area is anticipated by theend of 2000.

The Short Life and Deathof a Sapphire BoomtownThomas A. Cushman ([email protected]), AllertonCushman & Co., Sun Valley, Idaho

Ambondromifehy, Madagascar, was originally hailed asone of the most interesting and richest new sapphiredeposits to be found in the last 20 years. Interesting itwas. Rich, too —but not for long. It now seems thatAmbondromifehy is the latest in a long line of bustedboomtowns.

Discovered in 1996, in the Antsiranana Province ofnorthern Madagascar, the Ambondromifehy sapphireswere found in alluvial deposits of an ancient riverbed.Early prospecting by local miners brought to light easi-ly recovered (i.e., in gravels only 1–2 m below the sur-face) blue to blue-green sapphires that resembled thematerial from northern Australia. This initial recoveryof sapphires and subsequent mechanized mining byvarious commercial groups led to a massive influx oflocal artisanal miners. The existing village of 120inhabitants soon boasted a population of 7,000, whichsoared to 14,000 by early 1998.

Civic planning and infrastructure never had achance to develop in the wild rush of the miners to putup some sort of shelter and join the diggings, whichhad spread throughout the region along the ancientriver. The village expanded along both sides of thenational highway; makeshift buildings were construct-ed of locally available materials, mostly palm leaveswoven to make walls and thatch for roofs. Water andsewage disposal were supplied by a small local river,resulting in a health crisis. The new city soon acquireda variety of social facilities, such as bars, bordellos,video parlors, and casinos. Stores, restaurants, and basichotels arose. A thriving marketplace for sapphire devel-oped up and down the main street of this new city,with dozens of small buying booths manned byMalagasy, Asian, and African buyers. These buyerspurchased rough from the artisanal miners who dugillegally on claimed, unclaimed, and protected landsalong and adjacent to the prehistoric riverbed. Crimewas initially dealt with in a vigilante fashion, but a per-

manent police presence was quickly established. Fireprotection services never did develop, leading to sever-al multiple-dwelling conflagrations.

All of this development came to an abrupt halt inApril 1998, when the government of Madagascarbanned the export of sapphires from this locality. Theban resulted from pressure by the World Wildlife Fundand other international organizations that stronglyobjected to the encroachment of illegal miners ontothe Ankarana Forest Reserve, a national park that wasintended to serve as an example of international coop-eration in Eco-tourism and local development.

Concomitant with the closure of legal gem exportscame the resounding commercial rejection ofAmbondromifehy sapphire. Only a very small percent-age of the natural material was transparent and anattractive blue. The overwhelming majority of therough was opaque, and most of the transparent materialwas either too dark or greenish blue. After more than ayear of experimentation, no treatment had been foundby which the stones could be lightened or the greendriven off. As a result, the key markets (notablyThailand and New York) would no longer acceptthese very plentiful goods. This situation led to animmediate decline in both the price of the sapphiresand the number of buyers on site. As a result, neitherof the two international mining groups are still miningin the area; at least one of these went bankrupt. Mostof the independent miners soon left the dying villageto search for opportunity in other regions and withother gem minerals.

The September 1998 revocation of the export bangave a very small boost to the fortunes of Ambon-dromifehy, but the death knell was sounded when anew source of alluvial sapphire of much higher quality(and, therefore, value) was found in the southern regionof the island. Miners immediately began a pilgrimage tothis new source. By May 1999, the population ofAmbondromifehy was less than 2,000, and the once-prosperous village had begun to resemble a ghost town.

Mining and Heat Treatment of “Geuda”Sapphire at Ratnapura, Sri LankaBranko Deljanin ([email protected]), EuropeanGemological Laboratory, New York

In the early 1970s, Thai gem dealers began heat treat-ing low-quality “geuda” sapphire from Sri Lanka,thereby supplying large quantities of attractive sap-phire to the trade. The most important deposits ofgeuda corundum, all of which are alluvial, are foundin the Ratnapura district. Gem-bearing gravel, locally

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referred to as illam, is formed by the erosion of corun-dum-bearing rocks, specifically, Precambrian char-nockite gneisses and associated pegmatites. At theMarapana mine, the mining process involves excava-tion of square shafts down to illam layers that lie about15 m below the surface. Typically approximately 40%of the recovered corundum is heat-treatable geudasapphire.

Prior to heat treatment, the geuda is sorted into sev-eral categories and subcategories, because not all geudaresponds similarly to treatment. The classification takesinto account visual appearance, transparency, intensityof color, and color distribution. As described byRupasinghe et al. (1993), the two major divisions are:

Group 1—Described as silky, milky, diesel, dhun, andottu. Geuda in this category requires heat treatment in areducing environment to develop a blue color, whichis attributed to Fe-Ti charge transfer.

Group 2—Described as bluish red, red, andkowangy pushparaga. Geuda in this category requiresheat treatment in an oxidizing environment to intensi-fy the red and yellow hues.

The most widely used heat-treatment furnace in SriLanka, the Lakmini, was developed locally. Successwith this furnace is variable. More modern equipmentand technical knowledge are needed if the Sri Lankangeuda heat-treatment industry is to remain competitivewith that in Thailand.

RE F E R E N C E

Rupasinghe M.S., Dissanayake C.B., Perera D.G.A. (1993) The SriLankan Geuda. Institute of Fundamental Studies, Kandy, Sri Lanka.

An Examination of the Stateof the Gem Trade in Sri LankaAly Farook and Thahir Farook, Sapphire Gem Co.,Beverly Hills, California; Dean Stevens andAndrew Lucas, GIA, Carlsbad, California

Sri Lanka (formerly known as Ceylon) is one of theoldest and most important colored stone producers inthe world. The Mahavamsa (Sinhalese chronicles fromthe fifth century AD) mentions — among other refer-ences to the island’s gems — a king’s throne encrustedwith gems. That reference dates the throne to 543 BC.

It is believed that Sri Lanka was the original sourceof the sapphires and rubies used in jewelry by theEtruscans and by early Greeks and Romans. TheRoman naturalist Pliny (23 –79 AD) referred to thegem wealth of Sri Lanka, which had been described bySri Lankan envoys who visited Rome in 45 AD. Theisland’s gem wealth became more legendary with refer-

ences such as those of Sinbad the Sailor’s adventures inTales of Arabian Nights, and Marco Polo’s accounts ofhis 13th century travels. The fame of Ceylon’s gemscontinued to grow during the time of colonization bythe Portuguese, the Dutch, and finally the English.

Today Sri Lanka produces more than 40 varieties ofgems, with blue sapphire the most important economical-ly. The major gem-producing areas are found in thesouthern part of the island. They extend north to Elahera,in the central part of the country. Some of the mostfamous deposits are found near the city of Ratnapura,which means “city of gems.” Virtually all of the gemmaterial comes from alluvial gravels. Often a wide varietyof gems are recovered from a particular location. Forexample, the deposits around Ratnapura produceamethyst, apatite, beryl, chrysoberyl, citrine, corundum,garnet, iolite, kornerupine, scapolite, sillimanite, sinhalite,spinel, taaffeite, topaz, tourmaline, and zircon.

Mining in Sri Lanka is typically primitive. In fact, ithas remained much the same for centuries. Pit mining iscommon, whereby the gem-bearing gravels (calledillam) are reached by holes dug 3 to 15 m deep(although depths of 40 m have been reported). Theillam is washed, and the clean gravel (called dullam) isexamined for gem material. Gems are also recoveredfrom rivers by scuba divers, who vacuum the gem-bear-ing gravel into a floating sluice. Modern, mechanizedmining has met with resistance, particularly from tradi-tional miners. Currently, such mining is only allowed inlocations that will be flooded by the creation of a newdam, when the gravels must be mined quickly beforethey are submerged.

Much of the exploration for new deposits is done byindependent miners using rudimentary methods, andthey tend to concentrate on known gem-producingareas. More scientific and methodical prospecting wouldlikely improve production in established mining regions,and might also uncover new deposits elsewhere.

Master cutters and pre-formers in Sri Lanka handleexpensive rough and are proficient at orienting astone so that it shows the finest color face-up.However, Sri Lankan cutters have been criticized forthe overall quality of their cutting. Traditionally, SriLankan cutters emphasized weight retention at theexpense of appearance, which resulted in asymmetri-cal, unattractive “native” cuts. Now, some Sri Lankancutters are adopting modern techniques and interna-tional cutting standards, as well as cutting calibratedsizes. Although their cutting quality meets thedemands of the international gem trade, they facefierce competition from other countries with inex-pensive labor, such as China.

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Over the last three decades, other areas of the tradehave grown more competitive as well. For example, inthe 1970s dealers in Thailand began heat treatingtranslucent, milky white geuda sapphire from Sri Lankato yield transparent, fine-color blue gems. To supplymaterial for this new treatment, Thai buyers beganpurchasing large amounts of geuda sapphire in SriLanka. Although the miners profited, the Sri Lankandealers suffered in the face of this new competitionfrom Thailand.

The State Gem Corporation of Sri Lanka wasfounded in 1971 to regulate, develop, and promote thecountry’s gem industry. It handles a wide range ofresponsibilities, from licensing miners to determiningthe value of gem exports. Among its various regula-tions is a controversial ban on the exportation ofrough. Also, all gem exports must be cleared throughthis agency. However, gem export figures havebecome more reliable since the inception of the StateGem Corporation, and the agency is taking measuresto help modernize the cutting industry and improveeducation in areas such as gemology. The agency alsohas relaxed some regulations, notably import duties onrough gems, which has benefited local cutting indus-tries and dealers. For example, as the production offine-quality Sri Lankan sapphire dropped, the relaxedimport duties encouraged Sri Lankan dealers to buythis material abroad, especially in Madagascar.

With the introduction of more-advanced treatmentsand synthetics, and with the increase in imports fromother locations, the need for trained gemologists hasgrown dramatically. Their services have been requestedat every level of transaction, from the mine to the deal-er’s office. Qualified gemologists and well-equippedlaboratories with sophisticated testing equipment arecrucial to the success of the Sri Lankan gem industry.

With modernized cutting, increased education,improved gemological services, and policies that attractforeign buyers, the gem trade of Sri Lanka can contin-ue to be a major international force while retaining thecultural aspects, traditions, and generations of knowl-edge held by those in the gem business.

The Smithsonian Institution'sCorundum ConundrumsRussell C. Feather II ([email protected]),Smithsonian Institution, National Museum ofNatural History, Washington, DC

There are six named corundums among the more than10,000 gems in The National Gem Collection at the

Smithsonian Institution's National Museum of NaturalHistory. Even though they are world renowned, littlehas been recorded about their history.

The Rosser Reeves ruby is a light red oval star stonefrom Sri Lanka that weighs 138.7 ct. The ruby wasdonated to the Smithsonian Institution by Mr. Reevesin 1965. The jewelry firm of Robert C. Nelson, Jr.sold the stone to Mr. Reeves on behalf of Paul Fisher,whose father had purchased the 140-ct ruby at an auc-tion in England. The stone was recut slightly toremove deep scratches.

The 329.7 ct Star of Asia is a deep blue round starsapphire from Myanmar. The stone was acquired fromMartin L. Ehrmann Co. in 1961, which acted onbehalf of Jack Masson of Los Angeles and Geneva,Switzerland. The stone reportedly once belonged tothe Maharajah of Jodhpur, India.

The Star of Bombay is a 182 ct oval star sapphirefrom Sri Lanka. It was a bequest from movie star MaryPickford in 1981. An article in the October 15, 1938issue of Vogue magazine mentioned Ms. Pickford as theowner of a brooch containing a 200 ct star sapphire,which we believe to have been this stone.

The Star of Artaban is a 287.32 ct light blue oval starsapphire of unknown geographic origin. It was donat-ed to the Smithsonian in 1943 by W. Frank Ingram ofAtlanta, Georgia, who purchased the stone fromWilliam V. Schmidt Co. of New York. In 1935, NishVartanian of New York bought the stone in Bombayfrom a Mr. Mendelsohn. An article in the August 1937issue of The Mineralogist mentioned that this sapphirewas the centerpiece of a traveling exhibit of star rubiesand sapphires that was organized by W. V. SchmidtCo.

The Logan sapphire is a 423 ct blue sapphire from SriLanka. This cushion-cut stone is surrounded by 20round diamonds in an antique silver-and-gold brooch. Itwas donated in 1960 by Rebecca Pollard Guggenheim,but it stayed in her possession until she, as Mrs. JohnLogan, formally presented it to the museum in 1971.An article in the July 1958 issue of Ladies Home Journalmentioned that the sapphire was a gift from her hus-band, circa 1952.

The Bismarck sapphire is a 98.6 ct deep blue cush-ion-cut stone from Myanmar that is set as the pendantto a striking necklace by Cartier. It was donated in1967 by Countess Mona von Bismarck, who hadacquired it some years earlier in India.

If you have further information on any of thesestones, please contact the Smithsonian at the above e-mail address.

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Classification of Gem Opals UsingRaman Spectroscopy

Emmanuel Fritsch ([email protected]) andJany Wery, Institut des Matériaux Jean Rouxel,Nantes, France; and Mikhail Ostrooumov,University of Michoacán, Mexico

The classification and nomenclature of opals has alwaysbeen a complex issue. Recently, a classification basedon visual appearance was proposed for appraisal pur-poses (Smallwood, 1997). However, the mineralogicalclassification of opals is based on X-ray diffraction anal-ysis—a destructive technique that is of no practical usefor gem opals. We propose a new approach to the geo-logic classification (and, when possible, geographicclassification) of opal based on Raman scattering,which provides a different kind of structural informa-tion than X-ray diffraction. It has the advantage ofbeing nondestructive, and it is fairly quick compared toX-ray diffraction. Also, spectra can be obtained easily,even from mounted gems.

We studied over 70 opals from Mexico, Australia,Brazil, and Honduras using both X-ray diffractionanalysis and Fourier-transform Raman spectroscopy.The samples included play-of-color as well as commonopal, in several different varieties (white, black, boul-der, fire, and crystal opal). The position and intensityof Raman scattering bands vary within a limited rangefor each locality. Preliminary results have demonstratedthat this approach can do the following:

1. Distinguish between opals of sedimentary ori-gin (Australia, Brazil) and volcanic origin(Mexico, Honduras). Opals from siliceous sedi-mentary rocks are generally more poorly crys-tallized (broader bands, different peak positions)and more hydrated than those from volcanicenvironments.

2. In a small number of cases, provide geographicorigin information. Unlike X-ray diffractionpatterns, the Raman spectra of various opalsfrom a given locality are fairly similar. Althoughthe spectra seem to correlate best with geologicorigin, some samples, especially some Australianopals, show distinctive Raman spectra.

3. Provide information about the “water” content(molecular water or hydroxyl groups) in opal.Water is an important intrinsic component ofopal. Its concentration and mode of incorpora-tion can vary widely from one deposit (andsometimes from one sample) to the next.

RE F E R E N C E

Smallwood A. (1997) A new era for opal nomenclature. AustralianGemmologist, Vol. 19, pp. 486-496.

Understanding Emerald EnhancementsCharles Garzon, Fernando Garzon, and Arthur Groom,Gematrat, New York

With its luscious green coloring, emerald has captivat-ed and mystified people throughout the centuries. Tosome, emerald has even taken on more mysticalattributes, symbolizing rebirth and fertility.

For all its mysticism, emerald has a less than glam-orous beginning. The geologic processes by which itforms are brutally wrenching, often as wounding asthey are wondrous. Hence, almost all emeralds havefissures that may mar the clarity appearance of the fash-ioned stone.

The process of “enhancing” emeralds to reduce thevisibility of these fissures has been done for centuries.Although the filler materials and equipment havechanged throughout the years, the premise underwhich an emerald is “enhanced” has not: Today, likecenturies before, an emerald is “enhanced” to diminishthe scars of its creation and bring forth its full naturalbeauty.

Given that clarity enhancement is often the finalstep in preparing an emerald for market, it is importantto understand the process used, and especially theattributes and limitations of the filling material to beemployed. Since the value of an emerald is determinedlargely by its overall appearance, it behooves us to selectand apply the most stable filling material available. Intoday’s market, a variety of resins are available thatapproximate the R.I.’s of emerald, while offering excel-lent stability. Tradition, beauty, and technology haveconverged in the practice of emerald enhancement.

Characterization of Inclusion Suites in Sapphire Using Raman SpectroscopyMary I. Garland ([email protected]),G. S. Henderson, and T. L. Haslett, University ofToronto, Ontario, Canada; and F. J. Wicks, RoyalOntario Museum, Toronto, Ontario, Canada

Establishing the original source of gem corundum fromsome alluvial deposits is difficult, and for manydeposits, this must be done by inference. In the case ofthe Montana alluvial sapphires, no source rock has

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been located yet, despite over 100 years of mining andprospecting in the region.

Gem corundum forms via metamorphic reactionsin crustal rocks, or as magmatic or metamorphic reac-tions in the earth’s mantle. Identification of inclusionsuites within placer minerals such as corundum estab-lishes a mineral assemblage that not only echoes thehost rock mineralogy, but can also establish limits onthe pressure and temperature of the gem’s formation.Energy-dispersive methods of identification (electronand proton microprobe) require exposing the inclu-sion at a polished surface, a time-consuming anddestructive procedure. Micro-Raman spectroscopy is afast, nondestructive technique that can identify miner-al inclusions within the host crystal. This technique wasused to characterize the inclusions in unheated andheat-treated sapphires from the Rock Creek area (50samples), Dry Cottonwood Creek (13 samples), andEldorado Bar (4 samples) in southwestern Montana.The investigation also included unheated sapphires ofknown geologic origin from the following deposits(number of samples in brackets): (A) Those of mag-matic affiliation (e.g., alkali basalt)—Australia [28];Yogo, Montana [8]; Cambodia [4]; Shandong, China[3]; Thailand [3]; Mull, Scotland [1]; eclogitic corun-dum from South Africa [2]; and (B) those of meta-morphic affiliation—Kashmir [1]; Myanmar [2];Tanzania [2]; Sri Lanka [3]; Madagascar [2]; Brazil [1];and West Pailin, Cambodia [4].

Rutile was ubiquitous in corundum from all thedeposits studied, and was the most prolific mineralinclusion. In the magmatic sapphires, rutile occurred astiny grains forming dense clouds, as blocky crystals thatcontained zones of ilmenite, and as needles. Needle-and rod-shaped crystals were the preferred habits forrutile inclusions in sapphires of metamorphic origin.Rutile in the Montana alluvial sapphires occurred asdense clouds and zones of tiny grains, in crystals zonedwith ilmenite, and as grains associated with unidenti-fied oval features (described below).

Magmatic sapphires were characterized by needle-shaped inclusions of rutile, ilmenite, goethite, andhematite, and by the presence of hercynite as the dom-inant spinel phase. Ilmenite was less common in themetamorphic sapphires; it formed zoned crystals withrutile, or micron-sized grains. Goethite and hematiteformed only secondary inclusions in the metamorphicsapphires, as part of the iron-stained material in frac-tures. Hercynite was rare in the metamorphic sap-phires; where present, the crystals formed irregularplates associated with magnetite. In contrast, hercynitein the magmatic sapphires formed rounded plates anddisplayed no association with magnetite.

Apart from rutile, the most common inclusion inthe Montana alluvial sapphires was labradorite feldspar,which was usually found associated with muscovite.This particular inclusion combination is distinctive forsapphires from both the Rock Creek and DryCottonwood Creek deposits. Zoisite, epidote, rhodolitegarnet, analcime, anhydrite, and apatite were also notedas inclusions in the Dry Cottonwood sapphires.Clinozoisite, diaspore, zoisite, and sapphirine werecharacteristic of the non-heat-treated Rock Creek sap-phires. An unusual oval feature, with a distinctive butyet-unidentified spectrum, was noted in several heat-treated sapphires from the Rock Creek deposit. Thesefeatures averaged 10 × 15 microns in size, and locallyappear to have recrystallized into rutile. They arethought to be an unstable TiO2 polymorph that formedduring the heating process.

Zones of micron-sized rutile and rutile-ilmenitegrains, and the presence of labradorite, muscovite,zoisite, and sapphirine (Rock Creek) were distinctiveand characteristic for the Montana alluvial sapphires.This latter inclusion suite has more affinity with meta-morphic than magmatic rocks. Coupled with the dis-tinct lack of any alkali basaltic material in either thedeposit gravels or surrounding rocks leads to the con-clusion that the Montana alluvial sapphires have ametamorphic origin. The difference in inclusion suitesin the Rock Creek and Dry Cottonwood sapphires isprobably due to local differences in the metamorphicenvironment.

Fissure Fillings in Emeralds: A Comparison of Different Identification MethodsHenry A. Hänni ([email protected]), Lore Kiefert,and Jean-Pierre Chalain, SSEF Swiss GemmologicalInstitute, Basel, Switzerland

For many centuries, fissures in emeralds have beenfilled with oils and other natural substances to enhancethe clarity of the gem. Over the past 15 years or so,various artificial resins (mainly epoxy resins) have alsobeen used as filling substances. The different substancesvary in stability and thus degree of permanence. Oilsare the most volatile of the fillers used, but they can beremoved easily from the stone and replaced. Artificialresins are much more durable than oils, but theydecompose over time and are difficult to remove.Because of these differences, the trade often requests anidentification of the substance used, which must bedone nondestructively.

The first step in filler identification is visual obser-vation with the microscope and with long-wave UV

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radiation, to estimate the presence or absence of afiller, as well as the location of the filled fissures in thestone. These observations also provide an indication ofthe quantity and extent of the filler. Next, the sub-stance is analyzed by infrared and/or Raman spec-troscopy. At SSEF, these two complementary tech-niques are used together, with infrared spectroscopy asa macro method and Raman spectroscopy as a micromethod. Once a spectrum is obtained with eitherinstrument, it is compared to an extensive databank ofreference spectra for the pure filler substances.

Accumulations of more than one filling substanceare common in emeralds, as a result of multiple treat-ments. For example, a stone may be filled both in itsrough state and again after it has been cut, and someemeralds are re-treated one or more times either toreplace a filler that has been inadvertently removed ordamaged, or to try a different filler that may betterimprove the appearance of the stone. The characteristicpeak positions of these substances will appear as a com-bined spectrum, but the different components are usu-ally identifiable. In more than 80% of the stones sub-mitted to SSEF, the substance category (e.g., oil orartificial resin) can be identified when infrared andRaman spectroscopy are combined.

Pyrope-Almandine Garnets fromVarious Mining Areas in Orissa, IndiaManuj Goyal ([email protected]), Pink City Gems,Jaipur, India; and Michael Schlamadinger,D. Swarovski & Co., Wattens, Austria

The state of Orissa, in eastern India, produces a varietyof gems, including garnets. Mining for pyrope-alman-dine garnet occurs within about 250 km of KataBanghi, in all directions; this town is also the center forthe sorting and sale of the garnets. The 12 mining areasare: (1) Nakta Munda, (2) Lora Munda, (3) Khairpada,(4) Malkhangiri, (5) Lounghi, (6) Matri Dari, (7)Chalna, (8) Maurya, (9) Mangher, (10) Budapada, (11)Ghantiguda, and (12) Dumer Guda. For this study, weanalyzed garnets from localities 1, 4, 5, 6, 7, 8, and 12.

The garnet deposits are hosted by strongly meta-morphosed Precambrian rocks of the Eastern GhatsBelt. Mining began in 1975, and is generally done byhand tools. The deepest mines are not more than about30 feet (9 m). The mineralized zones typically dip 60°east or north.

All of the garnets analyzed belong to the pyrope-almandine series. The garnets vary in composition,depending on their locality. Garnets from NaktaMunda showed the desired purplish hue, which makesthis the best-known locality for rhodolite in Orissa.These garnets revealed a lower iron content (they weremore than 80 mol.% pyrope) than the other localities,and this could be seen in their visible absorption spec-tra. All other samples had pyrope contents of 56–65mol.%. Some garnets from Matri Dari and DumerGuda also showed a purplish hue, but these were lesspurple than in the Nakta Munda material. All the othersamples appeared more orangy red.

The observed colors corresponded very well to theL∗a∗b∗ (L∗ = “darkness”; a∗ = red-green axis [a posi-tive value is toward red]; b∗ = yellow-blue axis [a pos-itive value is toward yellow]; see, e.g., Billmeyer andSaltzman, 1981) values calculated from the absorptionspectra (see table). The data in the table also show apositive correlation between specific gravity and refrac-tive index, as previously demonstrated for rhodolite byLind et al. (1998). According to the classification ofLind et al. (1998), the samples from Nakta Munda,Matri Dari, and Dumer Guda were “Type 1,” andsamples from the other localities were “Type 2.”

All of the samples contained the rutile and apatiteinclusions that are typical of pyrope-almandine, andzircon was identified in some.

RE F E R E N C E S

Billmeyer F.W. Jr., Saltzman M. (1981) Principles of ColorTechnology, 2nd ed. John Wiley & Sons, New York.

Lind T., Henn U., Milisenda C.C. (1998) VergleichendeUntersuchungen an Rhodolithen verschiedener Provenienz(Comparative investigation of rhodolite garnets from differentprovinces). Zeitschrift der Deutschen Gemmologischen Gesellschaft,Vol. 47, pp. 53–59.

Kanchanaburi Sapphires and TheirReaction to Heat TreatmentRak Hansawek ([email protected]), The Gem andJewelry Institute of Thailand, Department ofMineral Resources, Bangkok

Kanchanaburi sapphires are found in secondary depos-its derived from the weathering of alkali basalt. On thebasis of a geomorphologic study of the area, the sap-phire deposits can be classified into three types: residual

Properties of pyrope-almandine garnets from Orissa.

Locality S.G. R.I. L* a* b*

Lounghi 3.82 1.758 43.2 40.3 7.8Dumer Guda 3.84 1.759 52.4 35.5 3.0Nakta Munda 3.84 1.760 67.1 18.4 −4.6Chalna 3.83 1.761 40.2 33.5 6.2Maurya 3.87 1.763 50.9 41.1 9.8Matri Dari 3.88 1.765 60.5 31.0 −3.6Malkhangiri 3.94 1.780 24.0 40.2 11.1

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basaltic soil, colluvium and talus, and placer. The plac-ers form about 95% of the deposits. The sapphire-bear-ing secondary deposits can be traced from Ban ChongDan in the north to Khao Chon Kai in the south, cov-ering an area of about 110 km2.

Placer mining at Bo Phloi is generally confined tothe approximately 3-m-thick sapphire-bearing horizon,which is located 13–15 m below the surface. Therough sapphires generally range from 0.5 to 4 ct,although a few exceptionally large stones, up to 400-700 ct, have been found. The principal gem-miningactivities are concentrated in two areas: Ban ChongDan and Ban Bung Hua Waen. Most of the larger sap-phires are recovered from Ban Chong Dan, while thesmaller sizes—frequently showing a finer blue color—are typically found at Ban Bung Hua Waen. Among

the other minerals found with the sapphire in varyingproportions are black spinel, black pyroxene, zircon,magnetite, and sanidine.

The few kilograms of Kanchanaburi sapphireobtained for this study were separated into four groupsaccording to their natural range of colors: blue, gray-brown, yellow, and violet. Trace-element data (seetable) show that the coloration is related to Fe, Ti, Cr,and V, which are present in varying amounts. Thepresence of Fe is significant, because not only is itresponsible for the blue, gray-brown, and yellow col-ors, but it also influences tone: The stones becomedarker with increasing Fe content. Heat treatment ofgray-brown sapphires, and of sapphires that containsilky inclusions and milky white or brown color zon-ing, produces a blue color. The absorption spectra ofthe heat-treated blue sapphires indicate that their coloris caused by Fe2+–Ti4+ intervalence charge transfer.

AcknowledgmentsThe author is grateful to the following for their help and collabora-tion: Bozena Skabar of the Joze Stefan Institute, Ljubljana,Slovenia, for EDXRF analyses of Fe, Ti, and V; Garry Dutoitof the Asian Institute of Gemological Sciences, Bangkok, for Cranalyses using an EDAX energy-dispersive system; KrittiyaPattamalai and Prawat Tangphong, Gemstone Section, EconomicGeology Division, Department of Mineral Resources, Bangkok,for heating experiments and geologic field data.

RE F E R E N C E

Hansawek R., Pattamalai K. (1997) Kanchanaburi sapphiredeposits. Mineral Resources Gazette, Department of MineralResources, Bangkok, Vol. 42, No. 1, pp. 17-38 [in Thai].

Identifying Sources of Burmese RubiesHan Htun, Myanma Gems Laboratory, Yangon,Myanmar; and George E. Harlow ([email protected]),American Museum of Natural History, New York

There are two major sources of rubies in Myanmar(formerly Burma)—Mogok (Mandalay Division) andMongshu (southern Shan State, also spelled MongHsu)—and several minor sources: Nawarat/Pyinlon(near Namkhan, Shan State); Nanyaseik and Tanai(Kachin State); Katpara (Kachin State); and the Sagyinand Yatkanzin stone tracts (Madaya township) nearMandalay. At Mogok and the smaller deposits, therubies are hosted in white marble. The rubies withineach tract reveal considerable diversity, but there arealso strong similarities from one of these marble-host-ed tracts to the next. Mongshu, where the rubies areassociated with metasediments as well as marbles,yields stones that are distinctly different from those

Concentration (in wt.%) of some trace elements insapphires from the Bo Phloi area, Kanchanaburi.

Locality and color Fe Ti Cr V

Ban Bung Hua Waena

Blue seriesDark blue 0.397 0.021 <0.001 <0.001Blue 0.334 0.011 NAb <0.001Light blue 0.283 0.008 <0.001 <0.001Very light gray-blue 0.278 0.008 NA <0.001Very light blue-white 0.285 0.004 <0.001 <0.001

Gray-brown seriesDark gray-brown 0.322 0.012 <0.001 <0.001Gray-brown 0.315 0.007 <0.001 <0.001Light gray-brown 0.289 0.006 <0.001 <0.001

Violet seriesLight gray-violet 0.229 0.006 0.024 0.003

Ban Chong DanBlue series

Dark blue 0.441 0.017 NA <0.001Blue 0.357 0.010 NA <0.001Light blue 0.333 0.009 NA 0.001Very light gray-blue 0.286 0.011 NA <0.001Extremely light gray-blue 0.307 0.013 NA <0.001

Gray-brown seriesDark gray-brown 0.349 0.014 NA <0.001Gray-brown 0.312 0.031 NA 0.001

Yellow seriesExtremely light yellow 0.301 0.010 <0.001 <0.001

Violet seriesLight violet 0.277 0.038 NA 0.003

aAlso contains a yellow series (various shades of yellow, mostly lightin color) that was not analyzed.

bNA=not analyzed.

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Characteristics of rubies from five localities in Myanmar.

Variable Mogok Nawarat (Pyinlon) Nanyaseik (Kachin) Sagyin Mongshu (heat-treated)

No. gems Several hundred >60 ~30 >100 Several hundredobserved

Color Pinkish to intense Medium red with Pinkish, rarely in- Pinkish to medium Medium to intense deep red purplish overtone tense red, all with red deep red (blue may re-

purplish overtone main if heat treatment is inadequate)

Fluorescence Strong to very strong Strong Moderate to inert Strong Inertto long-wave UV

Zoning Bands and swirls Swirls Angular growth Present Pronounced bandszones; swirls

Inclusions

Calcite Common, with twin- Subhedral to Subhedral to Subhedral to Subhedral to rounded,ning or cleavage rounded rounded rounded but heat destroys them

Dolomite Often yellow Present Present Present n.r.a

Apatite Prismatic Present Present n.r. n.r.

Titanite Present n.r. n.r. n.r. n.r.

Spinel Present Probablyb n.r. n.r. n.r.

Rutile crystals Well-formed Present Very small n.r. n.r.

Rutile silk Characteristic; Thin, patchy, and Thin and patchy Rare fine particles, Comet-like wisps, finepatchy to uniform in bands clouds dust-like particles and

stringers

Mica Muscovite, biotite Biotite Present Present n.r.

Feldspar Present Present n.r. n.r. n.r.

Pyrite/pyrrhotite Present Probablyb n.r. n.r. Present

Others Many n.r. n.r. n.r. White “snowflakes” and comet-like string-ers—unknown minerals

Healed fractures Occasional “finger- n.r. Present n.r. “Fingerprints” are prints” characteristic

an.r.—not reported.b“Probably” is stated because the inclusion was identified by its appearance only.

found elsewhere in Myanmar (in both their naturaland heat-treated states). Thus, rubies from Mongshuare easily separated from those found at Mogok andthe smaller deposits. These differences can be dis-cerned using an optical microscope.

Rubies from Mogok are generally distinguished bytheir intense saturated pink-to-red color, noticeabledaylight fluorescence, and light to moderate silk.Fundamentally, treated Mongshu rubies are identifiableby their “fingerprint” inclusions and the whitish spotsand wisps produced by heat treatment to remove theblue coloring in the core, which otherwise readily dis-tinguishes unheated Mongshu crystals. The table listscharacteristics for rubies from five Myanmar localities.Mostly subtle differences exist among the other sources,although color, color saturation, and the presence orabsence of silk appear to provide the best optical indica-tors of origin. Further research is required to assess cri-

teria for distinguishing among these sources andMogok.

For more on these rubies, visit the Web site http://research.amnh.org/earthplan/research/geh_rubies.html.

Characterization of Some Emerald Filling Substances

Mary L. Johnson and Sam Muhlmeister, GIA Gem

Trade Laboratory, Carlsbad, California; and Shane Elen,GIA Research, Carlsbad, California

A wide variety of substances are used to fill the fissuresin emeralds and thus enhance their appearance.Although some filling substances have been used forseveral decades, today a variety of modern chemicalproducts are also employed. Given this variety, thegoals of this study were: (1) to characterize some of the

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150 SYMPOSIUM PROCEEDINGS ISSUE

properties of these substances, and (2) to determine towhat extent the identity of the particular filling sub-stance could be established.

Materials and Methods. We examined 39 fillingsubstances that were known or rumored to be used inthe trade, or were easily available for this purpose (seetable). We grouped these filling substances into severalsubstance categories: oils (greasy liquids, such as rapeseedoil); essential oils (liquids or solids extracted fromplants, such as cedarwood oil) and resins (liquids orsolids exuded from plants, e.g., saps such as Canadabalsam; as cedarwood oil may also be considered aresin, the essential oil and ‘natural’ resin categories aresometimes combined); waxes (greasy solids, such as

paraffin wax); epoxy prepolymers and polymers (liquidsor plastic solids with a specific chemistry); and otherprepolymers and polymers (liquids or plastic solids withother chemistries). Substances in the first four cate-gories may be natural or synthetic; those in the last twoare always synthetic, and can be designated artificialresins.

We observed the color and refractive index of eachliquid filling substance (in its loose form, not as a fillingin an emerald) using standard gemological techniques.Specific gravity was compared to that of water(sink/float test), and viscosity was assessed visually. Forinfrared analysis, we examined the liquid filling sub-stances as droplets mounted between two glass micro-scope slides (to simulate the liquid within a fissure). For

Properties of substances used to fill fissures in emeralds.

Properties Oils Essential oils Resinsa Waxes Epoxy prepolymers Other prepolymers and polymers and polymers

Simple Greasy liquids Liquids or solids Liquids or solids Greasy Liquids or plastic solids Liquids or plastic solids withdefinition extracted from exuded from solids with a specific chemistry other chemistries, especially

plants plants; saps UV-setting adhesivesExamples Mineral oil, paraffin Cedarwood oils, Canada balsam Paraffin Araldite 502, 506, 6005, and 6010; "Liquid Resin," Epo-Tek

oil, Isocut fluid, clove oils, wax Epon 828; Epo-Tek 301, 302-3M, UVO 114 (uncured andsesame oil, azeite cinnamon oil, and 314; HXTAL resin; cured and cured), Norland Opticalde dende (palm cassia oil uncured Opticon 224; uncured green Adhesives types 63 (uncured) oil), castor oil, Opticon 224; Permasafe; Super Tres and 65 (uncured and cured)green Joban oil

Used in Used historically Popular now Used historically Used Popular now Becoming popularthe trade? historicallyColor Colorless, light Very light yellow Yellow White Colorless, very light yellow to light Colorless or light yellow

yellow, yellow, or to yellow, very yellow, greengreen light green

Refractive 1.449–1.479 1.509–1.589 1.521 About 1.52 1.500–1.577 1.481–1.553index Fluorescence Inert, moderate Inert, very weak Strong yellowish Inert Inert, weak to moderate greenish Inert, weak greenish yellow,to long-wave greenish yellow, green to very weak white white, weak greenish yellow to moderate green or blue,UV moderate yellowish or weak yellowish yellowish green, strong bluish white strong blue

green green, moderate to light bluewhite, strong yellowish white

Fluorescence Inert, very weak Inert to weak Very weak Inert Inert, very weak yellowish green, Inert, weak green, moderate to short- greenish yellow, yellowish green yellowish green weak greenish yellow, strong green or bluewave UV very weak to weak yellow; weak blue to moderate

yellowish green light or grayish blueRelative Floats in water Some sink and Floats in water Floats in Sinks in water; two solid samples Sinks in waterspecific some float in water have S.G.'s of 1.11gravity waterViscosity Liquid; flows easily Liquids flow easily Liquid, flows Solid Liquids flow easily or sluggishly; Liquids flow easily or

or sluggishly; sluggishly solids sluggishly; solidssemi-solids

Raman B C, D, E C B A, B, C A, Cspectral groupInfrared B C, D C B A, B, C A, Cspectral group

aOther than cedarwood oils.

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laser Raman microspectrometry, we analyzed the sam-ples as drops on a clean piece of aluminum foil.

Results. Visual and gemological features were not suffi-cient by themselves to distinguish the filling substanceswe examined, although some substance categoriesrevealed distinctive properties (e.g., low refractive indicesfor oils). On the basis of their infrared and Raman spec-tra, we classified the substances into five spectral groups (A,B, C, D, and E). These are different from the substancecategories defined above, Within each group, it is diffi-cult to distinguish specific fillers, and some groups con-tain both natural substances and artificial resins. Forexample, spectral Group C, which contains cedarwoodoil, also includes some epoxies and other artificial resins.When we analyzed some mixtures of filling substances,we could not always detect the presence of the minorcomponent by spectroscopic means.

For more on this subject, the reader may wish toconsult “On the identification of various emerald fill-ing substances,” by M. L. Johnson et al., Summer 1999Gems & Gemology, pp. 82– 107.

Red TaaffeiteLore Kiefert ([email protected]), SSEF SwissGemmological Institute, Basel, Switzerland;Karl Schmetzer, Petershausen, Germany; and H.-J. Bernhardt, Ruhr University,Bochum, Germany

Taaffeite is an extremely rare gemstone, with the for-mula BeMg3Al8O16. A mineral with this ideal compo-sition would be expected to be colorless. Gemological,chemical, and spectroscopic properties of eightchromium- and iron-bearing taaffeites (purple to pur-plish red) and two iron-bearing, chromium-free taaf-feites (grayish violet) from Sri Lanka and Myanmarwere determined.

Chemical and spectroscopic data reveal a correla-tion between color and trace-element contents. Asdetermined by electron microprobe analyses, the taaf-feites contain up to 0.33 wt.% Cr2O3, up to 2.59 wt.%FeO, and up to 2.24 wt.% ZnO. The purple to pur-plish red color is a complex function of the relativeamounts of iron and chromium present. Optical prop-erties and specific gravities of the 10 taaffeite samplesalso correlate well with their zinc, iron, and chromiumcontents.

We compared the spectroscopic properties of thesetaaffeite samples to those of chromium- and/or iron-bearing spinels; it is evident that the UV-Vis spectra ofthe two gem minerals are closely related. In taaffeite,however, we observed some additional absorption

bands (e.g., in the blue-to-violet range).Analysis of the inclusions by Raman microspec-

trometry revealed a common assemblage of solid andmultiphase inclusions, which indicates that theseextremely rare red gemstones share a similar host rock.Apatite and zircon were frequently observed as solidinclusions, whereas healed fractures consisted of nega-tive crystals that contained magnesite crystals as a solidcomponent in addition to a fluid (liquid and/orgaseous) phase.

Methods for the distinction of taaffeite and mus-gravite (BeMg2Al6O12) were briefly discussed by Kie-fert and Schmetzer (1998).

RE F E R E N C E

Kiefert L., Schmetzer K. (1998) Distinction of taaffeite andmusgravite. Journal of Gemmology, Vol. 26, No. 3, pp.165–167.

The Techereu Gemological FieldIoan Mârza ([email protected]), Babes-BolyaiUniversity, Cluj-Napoca, Romania

The Techereu gemstone area, in the Apuseni Moun-tains, Romania, is famous for its deposits of chal-cedony, multicolored jasper, and especially agate.These gem minerals formed in a variety of geologicenvironments. Genetically and spatially associated withEarly Tertiary (Paleogene) rhyolites are veins of chal-cedony, as well as epithermal agates. Chalcedony, butonly rarely agate, is associated with Mesozoic ophioliticcomplexes. Within Cretaceous conglomerates, jaspers(yellowish, reddish, and multicolored) and agate con-cretions can be found in the Almasu Mare cobbles,particularly in those areas that have layers of volcaniccinders. Secondary deposits of Quaternary age containchalcedony and agate that were derived from weather-ing and erosion of the primary gemstone occurrences.

Demantoid Garnet from the UralMountains, RussiaGabrel Mattice ([email protected]), Nicolai Kuznetsov,and Edward Boehm, Pala International, Fallbrook,California

Discovered in the mid- to late-1800s, during the reignof Alexander II, demantoid (meaning diamond-like) isderived from the Dutch word demant, meaning dia-mond. It is mined in the Central Ural Mountains ofRussia, where it is found alluvially in gold washings ofthe Sissersk District, Nizhni-Tagil; and from theBobrovka River (in early times, it was called Bobrovkagarnet as well).

Demantoid (Ca3Fe2[SiO4]3) is a variety of andradite

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that is colored green by chromium. The stones rangefrom pale green to yellowish green (due to trace amountsof iron) to a fine “emerald” green. Its refractive index(1.89) and dispersion (0.057) are both the highest of allnatural garnets. In spot illumination, a faceted stone willtypically show a fine play of prismatic colors. When pre-sent, “horsetail” inclusions are usually preserved duringcutting; their presence adds value to the stone.

Currently, most of the Russian demantoid comesfrom the Karkodino mine, about 20 km from the still-active Bobrovka area. Due to increased mining costs,fewer miners are working the deposits and productionhas decreased. Melee-sized material is still readily avail-able, but larger sizes are uncommon; this year onlyfour stones were recovered that cut gems weighingmore than 4 ct (W. Larson, pers. comm., 1999).

Infrared Spectroscopy as aDiscriminant between Naturaland Manufactured GlassesPhilip A. Owens ([email protected]), GIA Gem TradeLaboratory, Carlsbad, California

Glass, the great gem imitator, is still popular in today’sfashion-conscious world. Natural glasses includeobsidians, impactites (e.g., tektite/moldavite, LibyanDesert glass), and other naturally fused silica glass (e.g.,fulgurite). Manufactured glasses include a wide rangeof materials with various colors, textures, and compo-sitions. As a result, the gemological properties of man-ufactured glass may overlap those of natural glass.Some glasses are of dubious origin, such as “Mount St.Helens glass” and various transparent blue or green“obsidians.” Standard gemological testing is usuallysufficient to separate most natural from manufacturedglasses, but occasionally, advanced techniques (e.g.,Fourier-transform infrared [FTIR] spectroscopy) arenecessary for identification.

Eighty-five samples of both types of glasses, whichhad been identified and characterized by standardgemological methods, were also studied by FTIRspectroscopy. Natural glasses suitable for use as gem-stones are high in silica and relatively low in alkalis.Spectra obtained from the mid-infrared range (2000 to6000 cm−1) showed that major differences in thechemistry of natural and manufactured glasses arereflected in the infrared spectra. The absorption spec-tra of most obsidians show a saturated “hump” thatrises sharply at about 3700 cm−1 and tails off to lowerwave numbers (about 3000 cm−1, but this is quitevariable). Moldavite and Libyan Desert glass show anasymmetrical absorption peak at 3700 cm−1.

Manufactured glasses show a wide variation in

chemical composition, which is reflected in a muchgreater variation in their infrared spectra, as comparedto those of natural glasses. They commonly show abroad plateau from about 3600 cm−1 to the absorptionedge at approximately 2100 cm−1, with superimposedbroad peaks at 2830 cm−1 and about 3520 cm−1. Theintensity of the superimposed peaks is variable. A num-ber of specialty glasses show unusual complex spectrathat are indicative of their manufactured origin. All ofthe brightly colored “obsidians” in this study showedspectra that were consistent with manufactured glass.There are, however, some slag glasses and fused silicaglasses that have spectra that are too similar to those ofnatural glass for a conclusive identification with FTIRspectroscopy alone.

Rudraksha—A Spiritual Organic GemJayshree Panjikar ([email protected]) and K. T.Ramchandran, Gemmological Institute of India, Mumbai

In India, the rudraksha (ruda = Lord Shiva, aksha = eye)has been used as a spiritual ornamental material fromtime immemorial. Rudraksha, the seedpods ofElaeocarpus ganitrus, are covered with protrusions andgrooves, by which they are classified into 14 differenttypes or Mookhis (i.e., mono-grooved to 14-groovedvarieties). Various other types—such as twins, triplets,and those that occur in a comma shape—also exist, aswell as different simulants and imitations. This studyrepresents the first time the gemological properties andbiological effects of this organic gem material havebeen investigated.

Most rudraksha show R.I.=1.52, S.G.=1.05-1.6,and a hardness of approximately 3.5. Chemical analysesshow 49.89 wt.% carbon, 1.04 wt.% nitrogen, 16.85wt.% hydrogen, 31.27 wt.% oxygen, and 0.58 wt.%trace elements (total = 99.63).

The biological effects of rudraksha as individualbeads as well as in a rosary are being studied. Prelim-inary investigations indicate that rudraksha has an influ-ence on the autonomic nervous system involving thesympathetic and parasympathetic nerves.

California Benitoite: A Proven MineableReserve and New Gemological DataJames E. Shigley ([email protected]), GIA, Carlsbad,California; William R. Rohtert, AZCO Mining Inc.,Vancouver, Canada; and Brendan M. Laurs, GIA,Carlsbad

Commercial quantities of gem-quality benitoite areknown from a single location in the world, theBenitoite Gem mine in San Benito County, California.

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Benitoite, a barium-titanium silicate (BaTiSi3O9), wasdiscovered there in 1907, and was named theCalifornia state gemstone in 1985. It is typically color-less to blue, and is noteworthy for its high refractiveindices, high birefringence, and strong dispersion. Atotal of about 5,000 carats of faceted benitoite havebeen produced sporadically over the life of the deposit.This very limited production has historically relegatedbenitoite to a collector’s gem, one of the rarest in theworld. (See Laurs et al., 1997, for details on the discov-ery and gemology of benitoite, and the history of theBenitoite Gem mine.)

The Benitoite Gem mine is currently under optionto AZCO Mining Inc., which has spent nearly US$1million over the past two years exploring the mineraldeposit and defining a mineable reserve. This was doneby means of an extensive bulk sampling and coredrilling program. The proven and probable reservefrom the alluvial and colluvial sources is estimated at>25,000 carats of polished goods (mostly melee-sizedmaterial). This is sufficient for commercial production,and for maintaining stability of price and supply formany years to come.

Benitoite is the subject of a collaborative characteri-zation study between AZCO and GIA. This study isinvestigating the cause of color (which is stillunknown), and will address the gemstone’s durabilityin the manufacturing environment. Standardized color

observations of 123 faceted benitoites were made at theGIA Gem Trade Laboratory in New York. The huespans a narrow range in Munsell color space, from 5.0PB (purple-blue) to 8.0 PB (see figure). About 75% ofthe population occupies half of this domain, in theregion from 5.0 to 6.5 PB. The more violetish stonestend to be deeper in tone, and are less common thanthe more bluish stones.

RE F E R E N C E

Laurs B.M., Rohtert W.R., Gray M. (1997) Benitoite from theNew Idria district, San Benito County, California. Gems &Gemology, Vol. 33, No. 3, pp. 166–187.

The First CaliforniaGem Tourmaline LocalityMatthew C. Taylor, M. C. Taylor Analytical Services,Vista, California

The first gem tourmaline recorded in California wasreportedly encountered as loose crystals on the south-eastern part of Thomas Mountain, Riverside County,in June 1872 (Kunz, 1905). Two decades later, claimswere staked at the granitic pegmatite source of thesecrystals—under the names California Gem mine andSan Jacinto Gem mine in December 1892, and theColombian Gem Mine in July 1893. The deposit sub-sequently became known as the Columbia [sic] Gemmine, and in 1957 was renamed the Belo HorizonteNo. 1 mine. According to Hamilton (1919), more thana “bushel” (>35 liters) of red and green tourmalinecrystals were mined during the first season’s operation.Many exquisite tourmaline specimens were producedduring the first years of operation, the larger crystalsnearly always showing “watermelon” coloration, withred interiors and green rims. Hamilton (1919) reportedthat $10,000 worth of gem tourmaline was producedfrom the California Gem mine in 1894, from shallowtrenches cut into the steeply dipping host pegmatite.

Gem- and specimen-grade elbaite occurs in clay-filled cavities (“pockets”) within the host pegmatite.This tourmaline forms euhedral, multicolored (rarelycolorless) crystals up to 10 cm in diameter and 20 cmlong. Color zoning when viewed parallel to the c-axischaracteristically shows a concentric pattern composedof a large core that is orange, red and/or violet, a verythin white to colorless intermediate zone, and a narrowgreen rim. Sector zoning is commonly observed,exhibited as red “Mercedes” triangles similar to liddi-coatite from Madagascar. Color zoning when viewedperpendicular to the c-axis generally progresses fromblack at the base, through violet, red, and/or orange,with or without green and/or blue terminations. The

The color space outlined on this hue-saturation diagram repre-sents color observations of 123 faceted benitoites, as judgedwith standardized lighting and viewing conditions. “Page”refers to the “purple-blue” (PB) page number in the MunsellBook of Color.

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crystals contain planes of multiphase (solid + liquid +vapor) inclusions that are often truncated at variousstages by continued growth. These inclusions signifyviolent pocket-rupturing events during and after tour-maline crystallization. Primary multiphase inclusionsare commonly found within the green rims as narrowtubes oriented parallel to the c-axis. Rare inclusions ofmicrolite were also identified, by electron microprobe.

Chemical trends measured by numerous electronmicroprobe analyses of the pocket tourmaline are cor-relative with the color zonation, and range from initialprecipitation of iron-rich compositions (blue-to-violetschorl and foitite), to iron depletion with manganeseenrichment (pink and red-to-orange elbaite), followedby slight enrichment of iron and calcium with man-ganese depletion (green-to-blue elbaite). The man-ganese content reaches a maximum of 8.45 wt.% MnOin the red zones. One pocket produced small colorlesscrystals of highly aluminous tourmaline that span thecompositional boundary between two extremely raretourmaline species, olenite and rossmanite.

A recently discovered productive area within anadjacent pegmatite from an adjoining claim exhibits aremarkable similarity to the original pegmatite.Moreover, a survey using ground penetrating radar(GPR) confirmed that both producing pegmatites con-tinue for tens of meters along strike. Past productionfrom the very limited exploitation of the pegmatitessuggests that significant quantities of gem tourmalinecould be produced from this locality in the future.

RE F E R E N C E S

Hamilton F. (1919) Report XV of the State Mineralogist. Minesand Mineral Resources of Portions of California, California StateMining Bureau, Sacramento, California, pp. 574–577.

Kunz G.F. (1905) Gems, Jewelers’ Materials, and Ornamental Stonesof California. Bulletin No. 37 of the California State MiningBureau, San Francisco, California, 171 pp.

Sapphires from Shandong, ChinaLiangguang Tian ([email protected]), WenghuiHuang, Youfa Cheng, Huafeng Liu, Shuxiang Chen,and Haibin Liu, Gemstones Supervision and TestStation of Shandong Province, Shandong, China

Gem-quality sapphires were discovered in secondarydeposits in Shandong Province in 1986 and, subsequent-ly, in 1988 as primary deposits in nearby basalts. Thesecondary deposits, situated in the vicinity of Wutu,Qiaoguan, and Cuijia, are of two types: eluvial (includ-ing concentrations in talus) and alluvial. The in situdeposits are mainly located in the vicinity of Fangshan.Total reserves are estimated at 100 million carats.

The Shandong sapphires are typically found as

large, dark blue, well-formed crystals that contain fewinclusions. The largest corundum crystal discovered sofar weighed 2,500 grams. For commercial purposes,the sapphires are divided into five groups. Four of thegroups are based on color: blue, yellow, green, andbrownish red and pink. The fifth group is composed ofspecimen-grade material.

Because the color of most Shandong sapphires is darkblue, heat treatment is commonly performed to improvethe color. When heated to about 1,900°C in an oxidiz-ing atmosphere, a more desirable blue color is obtained.Further details on the history of sapphire exploration inthis area, the geology the deposits, and the chemistry ofthe sapphires can be found in Guo et al. (1992).

RE F E R E N C E

Guo J., Wang F., Yakoumelos G. (1992) Sapphires from Changlein Shandong Province, China. Gems & Gemology, Vol. 28,No. 4, pp. 255–260.

Surface-Enhanced TopazThom Underwood ([email protected]), AccreditedGemologists Association, San Diego, California, andRichard W. Hughes ([email protected]), PalaInternational, Fallbrook, California

At the 1998 Tucson Gem Fair, a new type of en-hanced topaz made its appearance (Johnson andKoivula, 1998; Hodgkinson, 1998). This treatment hasbeen described by one producer of blue-to-greenishblue treated topaz—Richard Pollak of United RadiantApplications in Del Mar, California—as a surface-dif-fusion process that produces a thin layer of color at andjust below the surface of an otherwise colorless topaz.Charles Lawrence of CL Laboratories in Encinitas,California, is using a similar process to produce a widerrange of colors, including an “emerald” green.According to both manufacturers, the color layerresults from heating topaz in a cobalt-rich powder.

Our microscopic examination of several samplesconfirmed that the color of this material is confined toa layer at and just beneath the surface. This layer is sothin that the question has arisen as to whether it repre-sents a surface coating or a surface-diffusion process.However, according to Trogler (1998), the surfacecomposition (as determined by energy dispersive analy-sis) shows a high concentration of cobalt, which sug-gests a heavily doped surface layer. Trogler (1998) fur-ther states: “The ratios of the wt.% values of thenonoxygen element is [sic] probably most meaningful.Pure topaz has an Al:Si ratio of 1.92, whereas thegreen stones (treated topaz) have a ratio of 1.41. Thissuggests extensive substitution of Al by cobalt in thesurface layer. The weight percentage of the silicon sug-

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gests it is perturbed the least, and so the ratios relativeto silicon are most useful.”

The properties of the 14 samples of blue-to-greensurface-treated topaz that we examined are summarizedin the table. The most important identifying feature isa spotty surface coloration that was best observed byplacing a translucent white glass or plastic diffusion fil-ter over the light well of the microscope. A lack ofcolor at the facet junctions was also noted in many ofthe samples. In addition, on several stones the surfacewas chipped, thus revealing the colorless topaz beneaththe colored layer.

Perhaps the most unusual gemological characteristicof these surface-enhanced topazes were the anomalousR.I. values. When tested on a standard gemologicalrefractometer, the table facet displayed “normal” R.I.’s(i.e., a distinct shadow edge at 1.608–1.620), whereasthe pavilion facets showed a broad, diffuse band, ormeasured above the 1.81 limit of the refractometer.Thus, it appears that portions of the topaz surface mightbe transformed into mullite, glass, or other substances(Day et al., 1995). According to Phillips and Griffen(1981), mullite has a refractive index in the range of1.634–1.690, while glass can be higher or lower.However, the transformation of the surface layer intoeither mullite or glass would not explain the wide rangeof R.I. readings. It is more likely that the high concen-tration of cobalt near the surface is responsible for thehigh R.I. readings, whereas variations in the depth ofpost-enhancement polishing could account for the

other anomalous R.I. readings. Indeed, our testingshowed that a single stone can produce a variety of R.I.readings, depending on which facet is tested.

With gemstone enhancements so common intoday’s colored stone market, we can expect to seemore such novel treatments in the future. Fortunately,in the case of this cobalt-diffused topaz, the identifica-tion is rather simple.

RE F E R E N C E S

Day R.A., Vance E.R., Cassidy D.J. (1995) The topaz to mullitetransformation in heating. Journal of Materials Research, Vol. 10,No. 11, November, pp. 2963–2969.

Johnson M.L., Koivula J.I. (1998) Gem news: Surface-treatedtopaz. Gems & Gemology, Vol. 34, No. 2, pp. 143–144.

Hodgkinson A. (1998) Scottish gem lab news. AustralianGemmologist, Vol. 20, No. 4, pp. 154–158.

Phillips W.R., Griffen D.T. (1981) Optical Mineralogy: TheNonpaque Minerals. W.H. Freeman and Co., San Francisco,677 pp.

Trogler W.C. (1998) Preliminary evaluation of green versus bluetopaz. Private report prepared for Charles Lawrence, CLLaboratories, 4 pp.

DIAMONDS

Diamond Deposits of AngolaLuís Chambel ([email protected]), Technical Universityof Lisbon, Lisbon, Portugal

Angola has been an important and consistent source ofrough diamonds, a high proportion of which are good-quality gems, for much of this century (see figure).Since independence from Portugal in 1975, Angola’sdiamond production has been erratic. The diamondmining industry is currently recovering from the coun-try’s internal political turmoil, and should enhance itsrelative position in the world’s rough diamond tradewith even greater production in the next decade.

The main diamond-producing region is located inthe Lunda Norte area (northeast Angola), with most ofthe production coming from alluvial deposits in theCuango River valley. Activity by unlicensed minershas grown dramatically in recent years, in tandem withcivil strife; however, the importance of this componentof Angolan diamond production appears to havereached its peak and is expected to decline with thearrival of political stability.

There are at least 700 known kimberlite pipes inAngola, and the potential for the discovery of addition-al pipes is high. Only a few of these have been thor-oughly evaluated and, at present, production from theseprimary sources is minor compared to that from the

DIAMONDS

Properties of blue to green surface-treated topaz.

Color Blue to greenish blue to greenColor distribution Even to the naked eye, patchy surface coloration seen

with magnification, often with green spots; white facet junctions/chips visible against a white diffusion filter

Luster Resinous subadamantine luster on polished surfacesPleochroism None to faint; possibly two different shades of blueOptic character Doubly refractive; biaxial, positive to undeterminableRefractive index

Table facet nα= 1.608–1.610; nβ = 1.610–1.614; nγ = 1.618–1.620(birefringence = 0.009–0.010)

Pavilion facets Anomalous or diffuse readings; often above 1.81Specific gravity 3.50–3.63UV fluorescence

Long-wave Inert to very faint redShort-wave Inert to faint yellowish green or very faint red

Visible spectrum Cobalt spectrum: bands at approximately 560, 590, and640 nm; strongest in blue stones, weaker in green stones

Magnification Strings of parallel particles; crystals or negative crystalswith tension fractures

Chelsea filterGreen stones Pinkish purpleBlue stones Red

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alluvial deposits. Mining started on the first kimberlite,Catoca, in 1997, and others presently being evaluatedinclude Camafuca-Camazamba, Camatchia, andCamagico. Nevertheless, for the near future, the maindiamond production, and especially value, will stillcome from the alluvial deposits in the Lunda region.

At present, diamonds are the second most impor-tant mineral resource in Angola (after oil). Every effort,including favorably revised mining laws, is being madeto encourage foreign investment in this sector. Thisendeavor has been successful, as numerous foreigncompanies (from, e.g., South Africa, Russia, Brazil,Canada, and Portugal [SPE, through a 49% interest inSML—Sociedade Mineira do Lucapa]) are nowexploring for, and developing, diamond mines. To-ward this end, fundamental geologic and other scientif-ic knowledge of Angolan diamonds and their deposits(e.g., determining the most effective exploration meth-ods, cataloguing all the deposits, and determining thegrade and quality of stones in various deposits and dis-tricts) is being assembled.

Studies of the Pink and BlueColoration in Argyle DiamondsJ. G. Chapman ([email protected]), North Perth,Australia; and C. J. Noble, University of Queensland,Australia

A suite of 13 pink and three blue diamonds from theArgyle deposit were examined using electron spin res-

onance (ESR), Fourier-transform infrared spectroscopy(FTIR), luminescence, and other techniques in anattempt to identify the color centers responsible fortheir coloration. Seven of the pink samples had satura-tions ranging from low to high, whereas the other sixpink diamonds showed similar moderate saturation.The blue samples showed high saturation.

No new or unique ESR centers were observed inthe pink samples, indicating that the color centerresponsible for their pink color was not ESR active.Some correlation was apparent between the ESR P1center (single uncharged nitrogen) and the saturationlevel of the pink diamonds: The intensity of the P1center increased with the strength of the pink color.This correlation is obviously not direct, however, asthe P1 center is also present in non-pink diamonds.

A striking relationship was observed during photo-and thermo-chromic experiments, in which the colorsaturation of the pink diamonds was altered with UVradiation or heat treatment. These color changes werereflected by modifications to the concentrations of P1and other nitrogen centers in the specimens. The dark-er heat-induced colors were accompanied by a substan-tial reduction in the P1 levels.

A possible explanation for these observations is thatthe pink color center exists in more than one chargestate, only one of which gives rise to the pink color.The P1 center is a strong donor (of electrons) and willaffect the Fermi level in a diamond. This level will, inturn, determine the population of the charge state of

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the center that causes the pink coloration. UV radia-tion or heat treatments may thus induce charge trans-fers between pink color centers and nitrogen defects.

Photo-luminescence (PL) spectra of pink diamondsusing 633 nm excitation revealed several sharp lines.One set, comprising lines at 1.871, 1.817, and 1.693eV, showed a strong correlation to the depth of pinkcoloration. Specimens that did not conform to thiscorrelation exhibited atypical IR spectra for Argylepink diamonds, which mostly have low levels of nitro-gen. Some of the PL peaks were at energies very simi-lar to those that have been reported (Sittas et al., 1996)for Ni-Si catalyzed synthetic diamonds.

Electron paramagnetic resonance (EPR) and elec-tron nuclear double resonance (ENDOR) analysis ofthe blue diamonds showed the NE2 center, which hasbeen observed in synthetic diamonds for which thecenter has been proposed to be an Ni+ ion with threeneighboring nitrogen atoms (Nadolinny andYelisseyev, 1994). A previously unreported EPR cen-ter was observed, which is consistent with an Ni− ionin a substitutional site with a N+ ion on a fourth near-est neighbor site. This defect is found exclusively inArgyle blue diamonds. The presence of high concen-trations of nitrogen and hydrogen has also been report-ed in Argyle blue diamonds (Fritsch and Scarratt,1992), but it is not clear how they are related to thenickel centers observed or to the color.

The presence of nickel in Argyle blue diamondsand the PL observations for the pink diamonds suggestthat nickel may be involved in the pink coloration.

RE F E R E N C E S

Fritsch E., Scarratt K. (1992) Natural-color nonconductive gray-to-blue diamonds. Gems & Gemology, Vol. 28, No. 1, pp.35–42.

Nadolinny V., Yelisseyev A. (1994) New paramagnetic centerscontaining nickel ions in diamond. Diamond and RelatedMaterials, Vol. 3, pp. 17–21.

Sittas G., Kanda H., Kiflawi I., Spear P. (1996) Growth and char-acterization of Si-doped diamond single crystals grown by theHTHP method. Diamond and Related Materials, Vol. 5, pp.866–869.

The Revolution in Cut GradingAl Gilbertson ([email protected]), Gem Profiles,Albany, Oregon

In the 19th century and earlier, diamonds were cut in avariety of ways, with no generally accepted standards ofcomparison. In the 20th century, many cutters adoptedthe “ideal” proportions predicted by a mathematicalmodel for a round brilliant diamond. The attractivenessof this model was that it provided a set of proportions

that, if carefully executed, seemed to consistently yieldthe most pleasing final beauty—or at least so it wasassumed, because there was no way of measuring theresults.

It is probable that if cutters of the past had at theirdisposal means of measuring the beauty that resultsfrom cutting, they would not have cut diamonds tomatch a model based on external proportions. Resultsof cutting can be better comprehended with a simpleunderstanding of diamond’s most attractive feature—the reflection of light. All the bright light we see in apolished diamond originates from above the girdle andis reflected back to the viewer overhead. Advances incomputer-aided light analysis reveal the behavior oflight in a diamond in ways previously only suspected.If a diamond is to be an efficient reflector of light, thecut must minimize light leakage through the pavilion.Computer-aided mapping helps the cutter understandhow to use a combination of angles to minimize lightleakage. Although only the first step in analysis of cut,measurement of light leakage is fundamental to under-standing light return.

The efficiency with which a diamond returns lightback to the viewer is also a measure of the precision ofits cutting. Since the viewer blocks some incominglight, a diamond’s facets must work as a team to returnlight that is coming from around the viewer back tothe viewer. Reflective symmetry that is chaotic ismuch less efficient in light return to the viewer. Highcut symmetry, at traditional “ideal” or near-“ideal”angles, provides some of the best return of light asmeasured using computer-aided light analysis. Suchanalysis enables a new understanding of diamondcut—by letting light speak for itself.

Detection of Irradiated DiamondsMartin Haske ([email protected]), Adamas GemologicalLaboratory, Brookline, Massachusetts

The recent availability of low-cost spectrophotometerswith high optical resolution has led to the developmentof personal computer–based spectrophotometer sys-tems (i.e., SAS2000; see http://www.SAS2000.com).When optimal Kalman filter data-processing tech-niques are used with such systems, it is possible toautomatically check transmittance or absorbance datafor the existence of radiation damage. It has beenshown repeatedly that visible absorption spectra takenat room temperature are sufficiently accurate to enablethe detection of the radiation damage that is character-istic of irradiated diamonds, even in cases where thatdamage is not readily apparent with standard spec-trophotometric techniques.

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With these new systems, the entire analysis can beaccomplished in about one minute, in contrast to thelengthy examination procedures sometimes requiredby current gemological techniques. In addition, thesenew systems may have eliminated the need for cryo-genic freezing of the samples in the vast majority ofcases. For example, the transmission spectra (collectedat room temperature) of treated yellow diamondsreveal spectral features indicative of radiation damagewhen the data are processed using a Kalman filter—adoublet at 741–744 nm, which is not visible usingconventional spectroscopy, and peaks at 478, 497,503, and 595 nm. When standard spectrophotometrictechniques are used at room temperature, the visibilityof these latter peaks, as with the 741 nm peak,depends on the extent of annealing after irradiation.The SAS2000 system was also used to detect—for thefirst time—a diagnostic absorption band at 701 nm inred type Ib color-treated Russian synthetic diamonds(see Weldon, 1999). This optical center was probablymissed by other spectroscopists because of the com-mon use of absorbance mode displays, rather than theprimary SAS2000 transmittance mode of analysis. Apeak at 638 nm is also characteristic of these treatedsynthetic diamonds.

RE F E R E N C E

Weldon R. (1999) With a tweak and a smile. Professional Jeweler,Vol. 2, No. 3, pp. 26, 28.

Exploring Cut and DiamondAppearance with the Virtual DiamondT. Scott Hemphill, Ilene M. Reinitz ([email protected]),Mary L. Johnson, and James E. Shigley, GIA and GIAGem Trade Laboratory, Carlsbad and New York

We have combined modern computer graphics tech-niques, a mathematical description of the exact shapeof a round brilliant, and equations for the propertiesthat govern how light travels through diamond to pro-duce a “virtual” diamond—a computerized tool fordetailed and thorough exploration of how cut affectsdiamond appearance. Tracing light through a virtualdiamond of any chosen proportions yields either animage of that diamond (see figure), or a numericalresult related to its appearance, such as brilliance, fire,or scintillation. Modeling diamond appearance with acomputer allows us to control, and separately vary,each of the many proportion, lighting, and observationvariables.

The virtual diamond is three-dimensional, facetedall over (including the girdle), and (at present) color-less, flawless, and with perfect symmetry and polish.

Dispersion of light is incorporated with a wavelength-dependent refractive index. We account for partialreflection and refraction by calculating the polarizationstate of each ray as it moves through the virtual dia-mond. Millions of rays of different colors are tracedbetween the modeled light source, the virtual diamond,and the modeled observer, and each ray is followeduntil 99.99% of its energy has exited. Most rays follow acomplex three-dimensional path, with more than threereflections; and rays of different colors entering thesame spot at the same angle generally disperse, exitingthe virtual diamond along entirely different paths.

We have developed a numerical measure for bril-liance called weighted light return (WLR), which uses adiffuse hemisphere of white light and a weighted-aver-age observer (Hemphill et al., 1998). This lighting con-dition emphasizes brilliance over the other appearanceaspects, and the observing condition captures the lightreturned to a predominantly, but not strictly, face-upposition. WLR was calculated for over 20,000 propor-tion combinations, to explore primarily variations incrown angle, pavilion angle, and table size. Variation ofone parameter alone yields results in general agreementwith previous work on this question, such as that ofMarcel Tolkowsky (1919). However, variation of twoor three proportions together shows that WLR dependsmore strongly on the combination of proportions thanon the exact value of any one of them.

Various appearance aspects of the virtual diamond can beemphasized by modeling different kinds of lighting. This com-puter-generated image shows how diffuse lighting emphasizesbrilliance, while minimizing contrast, extinction, and fire.

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WLR values do not form a “bull’s-eye” aroundsome set of best proportions. Instead, rather wideranges of proportions, in the right combinations, pro-duce very similar WLR and a similarly bright appear-ance to the eye. For example, with a pavilion anglefixed at 40.5°, combinations as different as a 23° crownangle with a 65% table, and a 35° crown angle with a53% table, yield different image patterns but similarlyhigh WLR values. WLR also shows a complex depen-dence on some of the other proportions, particularlythe length of the star facets.

The development of a numerical expression for fireis the next step in this research. Despite the way thatdiffuse light reduces fire, images made with that light-ing show some dispersed light. These results suggestthat the amount of this fire, as well as its position andnature, vary with proportions in a complex way.

RE F E R E N C E S

Hemphill T.S., Reinitz I.M., Johnson M.L., Shigley J.E. (1998)Modeling the appearance of the round brilliant cut diamond:An analysis of brilliance. Gems & Gemology, Vol. 34, No. 3,pp. 158–183.

Tolkowsky M. (1919) Diamond Design: A Study of the Reflectionand Refraction of Light in a Diamond. E. & F.N. Spon Ltd.,London, 104 pp.

Describing Diamond Colorswith Common NamesStephen Hofer ([email protected]), FancyColor Consultants, Stockbridge, Massachusetts

Common names such as canary, lilac, champagne, andcognac have been used for more than two centuries inthe diamond industry as a simple and effective methodfor communicating colors (Hofer, 1998). These basiccolor terms are essentially part of the vocabulary ofeveryday life, and over the years they have graduallyestablished themselves as part of the color nomencla-ture spoken by diamond professionals.

In the modern diamond trade, the utility and sim-plicity of common names is slowly being pushed asidein favor of color-measuring instruments and numericalcolor-grading systems that aspire to describe diamondcolors with greater accuracy and precision. However,when used correctly, common color names offer theretail jeweler a subtly sophisticated method for describ-ing diamond colors that incorporates the three elementsthat all colors possess—hue, lightness or darkness (alsoknown as tone), and saturation—into a single word.

The purpose of a common color name is to com-municate the appearance of a given color, or to enablesomeone to “think in color.” Therefore, the commonname chosen must be so characteristic of the color’s

appearance that it is readily understood by others.Since our environment is the source of many colors, itis here that we must look for objects of typical colors,objects for which we already have names and whichcan be used to describe a specific diamond color.

The essence of effective color communication issimplicity: the simpler the color-naming system, theeasier it is for someone to comprehend the message.With colored diamonds, the naming of colors beginswith color by analogy. Lilac, for example, is derivedfrom the analogous color of the flowers of the heartyshrub (Syringa vulgaris), denoting a purple hue, withlight to dark tone and moderate saturation.

RE F E R E N C E

Hofer S.C. (1998) Collecting and Classifying Coloured Diamonds.Ashland Press, New York.

Is Ideal Really Ideal?How the Cut Affects theBeauty of DiamondsKurt P. Schoeckert and Randall M. Wagner, GemExSystems Inc. ([email protected]), Mequon, Wisconsin

For many years, diamond cutters have been debating andinvestigating the requirements necessary to create themost attractive diamond. Various instruments have beendeveloped to assess diamond appearance. Probably themost significant tool is an instrument (Sarin BrilliantEye)that measures the facet angles on the finished diamond.This allows cutters to refine their faceting and improvethe repeatability and quality of their cuts.

Various studies have focused on defining the“Ideal” cut that will best maximize the qualities of thediamond. These projects have resulted in much of theindustry assigning a particular arrangement of facets asbeing most desirable, although many others disagreewith this “assignment.”

An alternative approach is to actually measure astone and quantify its light performance. How welldoes the stone disperse white light into its color com-ponents? How well does it return light from within thecrown? How bright does the stone appear? Using newtechnology (BrillianceScope Analyzer by GemExSystems Inc.), all of these characteristics can now bequantified. Certain facet arrangements result in greaterdispersion, others result in brighter stones, and still oth-ers result in more scintillation.

This evaluation method can be applied to all dia-mond shapes, not just round brilliants. The results aremore easily understood than through comparison to aparticular geometric arrangement. By providing multi-ple illumination conditions and angles in the measure-

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ment process, the instrument does not unfairly rewarda single facet arrangement, and overall appearancequality can be assessed. Using this measurement tech-nique, lapidaries are able to refine their cuts for anyparticular characteristic desired: brilliance, brightness,dispersion, or scintillation.

GENERAL GEMOLOGY

Visions of Gems:The Photodocumentationof Gemological SubjectsMaha DeMaggio ([email protected]) andJohn Koivula, GIA, Carlsbad, California

In the field of gemology, it would be very difficult forlecturers and teachers to present information withoutthe aid of photography. So too, in the publication ofgemological information, does the visual presentation ofappropriate photo-images add greatly to any article orbook. This is because color and form are intrinsic togemstones and gemology, and they are not easilydescribed with words alone. For cases where color is notcritical, black-and-white reproductions are inexpensiveto publish and can be very informative (see figure).

Just imagine how “dry” a gemological speech wouldprobably be, or how lifeless an article would appear,without photographs. Photo-images break the monot-ony of a “talking heads” presentation, or page-after-pageof text. Good-quality photographs draw people into aspeech, book, or article, and help to maintain theirinterest. In gemology, a picture truly is worth a thou-sand words . . . and quite often much more.

Gemological photography involves both art and sci-

ence. The photographer must have scientific knowledgeof a subject in order to bring out significant details, buthe or she also must be able to present those details artis-tically, in a pleasing photograph. Gemological pho-tographs can be divided into two distinct categories:macrophotography and photomicrography (again, seefigure). Macrophotography deals in the “macroworld.” In this arena, the gem photographer preparesimages of objects such as jewelry pieces, suites of gem-stones, or gem rough. This is in essence a presentationof what the human eye would see without the aid ofinstrumentation. Photomicrography, on the otherhand, is concerned with the “micro world.” The pho-tomicrographer explores the surfaces and interiors ofgemstones with a gemological microscope, and pre-pares photomicrographs as illustrations useful for con-veying gemological information that is normally hid-den from view. Although these two disciplines havetheir differences in the areas of subject preparation, filmtypes, lighting, and photographic equipment, theyoften work hand-in-hand to complete a gemologicalpicture of a particular subject.

Laser Ablation–Inductively CoupledPlasma–Mass Spectrometry: A NewWay of Analyzing GemstonesDetlef Günther ([email protected]),Laboratory of Inorganic Chemistry, Zurich, Switzerland;and Robert E. Kane, San Diego, California

Energy-dispersive X-ray fluorescence (EDXRF) spec-trometry has been used for years by some gemologicallaboratories to determine nondestructively the trace-element composition of faceted rubies and sapphires.However, because of the limited sensitivity for many

GENERAL GEMOLOGY

The macrophotograph on the left dra-matically illustrates the partial oxida-tion of a discoid pyrite inclusion withina polished sample of Brazilian quartz(43.54 ×29.07 × 17.54 mm); photoby Maha DeMaggio. On the right, aclose-up of the pyrite inclusions revealsthe angular edging and structure of thepyrite inclusions; the square outline ofthe smaller satellite crystal exemplifiesits isometric nature. Photomicrographby John I. Koivula; magnified 40×.

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elements, the EDXRF technique is capable of measur-ing only a few trace elements that are useful for geo-graphic origin determination—especially for blue sap-phires, for which very few diagnostic elements aredetectable by EDXRF. Laser ablation–inductively cou-pled plasma–mass spectrometry (LA–ICP–MS) is apowerful analytical technique for chemically analyzing awide variety of solid materials. It has been used formany years at laboratories around the world, in fieldsother than gemology. However, largely because ofimprovements in equipment design, LA–ICP–MS nowhas significant potential application to gemologicalmaterials. It could provide accurate chemical data fordetermining (1) natural versus synthetic origin, (2) ori-gin of color, and (3) country-of-origin determinationfor several gemstones, including ruby, sapphire, emer-ald, alexandrite, and perhaps even diamond.

LA–ICP–MS has several advantages over EDXRF,such as improved detection limits and comparativelyfew spectral and nonspectral interferences. Therefore,all of the trace elements of interest in gem materials—including light elements—not only are detectable, butalso are measurable to parts per million or even partsper billion, by LA–ICP–MS. New generations of ICPmass spectrometers make it possible to analyze major,minor, and trace elements within a single analysis.

Although LA–ICP–MS is locally destructive, theextent of damage can be kept to a minimum (i.e., a fewnanometers of sample per laser pulse). A preliminarystudy using blue sapphire samples revealed that the veryminor damage is difficult or sometimes impossible tosee with 10× magnification. The data from this studyindicated that it should be possible to distinguish sap-phires from different geographic locations usingLA–ICP–MS. However, for this technique to be usefulin gemology, several challenges must be overcome. Anextensive database of LA–ICP–MS analyses must beobtained from a sufficiently large and credible collectionof gemstones of known geographic origin or, as appro-priate, synthesis. Gemological application will alsorequire specialized computer programs for multivariateanalysis to recognize meaningful correlations among thelarge quantities of data that this technique generates.

The Gem & Mineral CouncilDanusia Niklewicz, Former President—Gem & MineralCouncil, Los Angeles County Museum of NaturalHistory, California

The Gem & Mineral Council of the Natural HistoryMuseum of Los Angeles County, founded in 1985, isthe world’s foremost gem and mineral museum supportand public programming organization. Members have

many opportunities to advance their knowledge andenjoyment of gems and minerals through a variety ofprograms, including exciting field trips, educationallectures, and exclusive social events. Examples of someorganized trips that the Council has sponsored include(1) a trip to Russia that revolved around the theme ofRussia’s gem heritage, (2) several trips to Brazil thatincluded opportunities to visit mines and meet dealersin pursuit of gems and minerals, and (3) field trips toseveral important mineral localities in the U.S. Pro-ceeds from annual dues, field trips, and fund-raisingactivities support the museum’s Mineral ScienceSection, allowing it to maintain and expand its world-class gem and mineral collection and gallery, organizespecial exhibits, undertake mineralogical and gemolog-ical research, and generally benefit the gem and miner-al community and the public at large.

The Gem & Mineral Council and the MineralSciences Section recently initiated an intriguing fund-raising effort entitled “Adopt-a-Mineral.” This pro-gram gives members of the public a way to have adirect impact on the growth of the Museum’s gem andmineral collection, and at the same time to offer ameans of dedicating a specimen to the person of theirchoice. To further its educational outreach, theCouncil recently produced the highly useful Photo-Atlas of Minerals CD-ROM. The Council encouragesother museums and groups to emulate its methods ofpromoting education about gemstones and supportingrelated projects.

Shedding a New Light onMedieval DarknessSabine Häberli ([email protected]), HistorischesMuseum Basel, Switzerland; Henry A. Hänni andLore Kiefert, SSEF Swiss Gemmological Institute,Basel, Switzerland

The treasury of Basel Cathedral in Basel, Switzerland,is fascinating not only for the artistic quality and rich-ness of its pieces, but also for its long history. Throughdonations and occasional purchases during the 500years from the early 11th century until the advent ofthe Reformation in the early 16th century, severalhundred goldworks were collected in the cathedral ofthe Bishopric of Basel. These crosses, monstrances, andvarious other religious artifacts were used during Mass.Before the Reformation, Basel Cathedral had the rich-est church treasury in the region that is today southernGermany and Switzerland.

The treasury had, until 1996, only been describedin terms of its historical, cultural, and artistic impor-tance. Since 1996, the SSEF Swiss Gemmological

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Institute, in collaboration with the HistorischesMuseum Basel, has examined the gem materials in 14selected items using the nondestructive techniques ofoptical microscopy and laser Raman microspectrome-try (see, e.g., Hänni et al., 1998). We were surprised tofind so many gemstone imitations, such as glass anddoublets with colored layers, in historic pieces of artwith outstanding metal work. Among the natural gem-stones we encountered were several varieties of quartz(rock crystal, amethyst, citrine, carnelian, agate, andchrysoprase), dark blue and light blue sapphires, ruby,red almandine garnet, diamond, and turquoise. In twoimportant objects we identified gemstones that werepresumably unusual for that period, such as peridot,spinel, fluorite, aquamarine, and emerald.

The study demonstrated that Raman microspec-trometry is a reliable method for nondestructivelyidentifying gem materials in historical objects. Wehope that art historians will consider employing thisuseful analytical technique in the future.

RE F E R E N C E

Hänni H.A., Schubiger B., Kiefert L., Häberli S. (1998) Ramaninvestigations on two historical objects from Basel Cathedral:The Reliquary Cross and Dorothy Monstrance. Gems &Gemology, Vol. 34, No. 2, pp. 102–113.

Dynamic Earth: Inco Ltd. Galleryof Earth SciencesTerri Ottaway ([email protected]) and Fred Wicks,Royal Ontario Museum, Toronto, Ontario, Canada

Planet Earth as a System of Systems is the theme of thenew 14,000 square foot Gallery of Earth Sciences at theRoyal Ontario Museum. The main system is plate tec-tonics, which provides a simple but powerful story linethat links geologic processes across and within the globe,and blends them into a unified version of the earth.

With the emphasis on process, rather than on sim-ple observation and classification, rocks and mineralsare displayed according to their geologic environmentsin four large cases that dominate the mineral hall.Spectacular gem crystals and materials are particularlypowerful tools for highlighting stories of mineral for-mation. Large crystals of aquamarine, topaz, and tour-maline illustrate the pegmatite environment, associatedwith minerals derived from molten rock in a casecalled “Chilling Out.” Agates and amethyst, in a casecalled “In and Out of Hot Water,” are some of themore familiar minerals precipitated from aqueous solu-tions. Garnets, jade, and sapphires are among the beau-tiful products of metamorphism found in the “Under

Stress” case, and colorful minerals such as malachiteand azurite delve into the mysterious world of sec-ondary minerals and chemical alteration in the“Changing Identity” case.

The Gallery also takes a fascinating look at the rolethat life, especially microbial life, has played in trans-forming Earth into a blue planet—in contrast to itslifeless cousins Venus and Mars. Increasingly, life isbeing recognized as a geologic force, not only creatingand sustaining our atmosphere and oceans, but alsocreating rock formations (i.e., limestones) and partici-pating in the genesis of many important mineraldeposits. Among these are the diamonds found ineclogites from Russia and emeralds from the blackshales of Colombia.

It is hoped that the Gallery of Earth Sciences willinspire all visitors with the wonders of our planet, andprovide a better understanding of what transpires be-neath our feet.

A Color Communication Systemfor Gemstones

Sakda Siripant ([email protected]), The Gem andJewelry Institute of Thailand, Bangkok

A method that quantifies the color of a gemstone andis accepted by the gem trade has long been an elusivegoal. There are obvious advantages to such a colorcommunication system in the commercial side ofgemology. For example, any parameters obtained bythe system could be included on colored gem certifi-cates in much the same manner as color grade isincluded on diamond certificates. In addition, thenumerical color data could be used in inventory con-trol, buying and selling, repairs, appraisals, and forcommunication through the Internet, which hasbecome an important medium for the global gemtrade. Moreover, researchers of color treatment coulduse such a system for the description of gems beforeand after treatment.

The color communication system suggested here isbased on L∗a∗b∗ color space (see, e.g., Billmeyer andSaltzman, 1981), and the determination of severalparameters that are derived from spectrophotometricmeasurements of a gemstone. The parameters used,and their definitions, are:

L∗—Metric lightness functiona∗—Colorimetric values on the red-green axis of

L∗a∗b∗ color spaceb∗—Colorimetric values on the yellow-blue axis of

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L∗a∗b∗ color spaceU′—Metric chromaticity coordinates of CIE 1976

(CIE L∗U∗V∗)V′—Metric chromaticity coordinates of CIE 1976

(CIE L∗U∗V∗)x,y—Chromaticity coordinates of CIE 1936, where x

= X/(X+Y+Z) and y = Y/(X+Y+Z); X,Y,Z =tristimulus values

The objective of this research project was to constructa color communication system for gems that describescolor characteristics in the form of numbers for the valuesa∗b∗, as derived from spectrophotometric measurementsobtained with an Image Spec spectrophotometer. Theparameters U′ and V′ are calculated from a∗b∗, whichmay be correlated to established color systems such as theMunsell system. By means of computer programmingdeveloped by EMPA, St. Gallen, Switzerland, 56 pages oftables have been produced for converting the x,y chro-maticity coordinates of CIE 1936 into a∗b∗ and U′V′ val-ues for each color chip in the Munsell system. Munsellcolor chips of the same value were systematically locatedin the U′V′ diagram and L∗a∗b∗ color space according totheir color coordinates. The conversion tables, the adapt-ed U′V′ diagrams, and the a∗b∗ color chart serve as thecommunication tools by which a gem’s color characteris-tics are correlated to established color systems in order toprovide a visual representation.

RE F E R E N C E

Billmeyer F.W. Jr., Saltzman M. (1981) Principles of ColorTechnology, 2nd ed. John Wiley & Sons, New York.

Reflection and Scattering Spectroscopyfor Nondestructive Gem IdentificationL. I. Tretyakova, Russian Mineralogical Society,St. Petersburg, Russia; N. B. Reshetnyak, All-RussianGeological Institute, St. Petersburg; and Y. V.Tretyakova, Russian Ocean Geology Research Institute,St. Petersburg

Three spectroscopic methods can be used to analyzenondestructively the vibrational and electronic spectralproperties of gem materials. Reflectance infrared spec-troscopy and laser Raman microspectrometry are rela-tively simple methods for obtaining vibrational spec-tra, which can be used to identify the gem or mineralspecies. Electronic spectra are obtained by diffusereflectance spectroscopy in the ultraviolet/visible/near-infrared (UV/Vis/NIR) range, 200–2500 nm;the absorption lines are related to impurity or defect-impurity color centers. The spectra obtained by all

three techniques can be measured from any surfacethat is 0.01–1 mm2. The authors have established adatabase of reflectance infrared and Raman spectra for250 natural and synthetic materials; this database issupplemented by diffuse reflectance spectra in theUV/Vis/NIR range for several color varieties of theseminerals.

These methods may be used either singly or incombination to identify gem materials, differentiatenatural gems from their synthetic counterparts, anddetect gemstone treatments. For example, the tech-niques can provide a clear distinction between naturaland synthetic diamonds, and can also identify filled dia-monds. The samples do not require special preparation,or removal from jewelry or (if rough) from theirmatrix. Accordingly, these methods are particularlyuseful for the investigation of archeological specimens,antiques, historical and religious objects, museum spec-imens, and mounted jewelry where destructive tech-niques or the unmounting of the stone from its settingare unacceptable.

Gem Quality Index (GQI)T. E. Tashey Jr. ([email protected]), Gem Quality Institute,Chicago, Illinois

Evaluating a gemstone by using the 4Cs of color, clari-ty, cut, and carat weight can be carried one step furtherby considering a fifth important attribute—rarity. Thereis a complex interrelationship between the 4Cs andrarity. The Gem Quality Index (GQI) is a proposedsystem that rates the relative importance of color, clari-ty, cut, and carat weight, with respect to the rarity fac-tor, to produce a single, overall quality rating for anyparticular gemstone. Essentially it assigns different per-centages to the different attributes, by rating their rela-tive importance. Different varieties of the same gem-stone will obviously receive a different mix of percent-ages for their attributes.

Examples are illustrated in the accompanying fig-ure. Part A shows how the rarity factor is determinedfor white and off-white diamonds, in terms of weight-ed percentages for carat weight, color, clarity, and cut.Such diamonds weighing 0.01–1.19 ct (part B) areweighted at 25% for color and 15% for rarity. In con-trast, fancy-colored yellow diamonds of the same sizerange (part C) have increased factors for color (45%)and rarity (25%). Further, as the size of a gemstoneincreases, the rarity factor also increases (e.g., to 30%for white and off-white diamonds weighing 3.00–3.99ct; part D). Accordingly, the rarity component based

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on size increases to a maximum of 65% when a whiteto off-white diamond weighs over 100 ct. The GQIsystem can also be applied to colored stones, as illus-trated in part E.

The intent of the Gem Quality Index is to create ameaningful scale from 0 to 10, with 10 being the top quality and designated as Exceptional. Sub-sequent grades will be designated as Top Gem1 andTop Gem2; Gem1, Gem2, and Gem3; Commercial1 andCommercial2; and finally, Promotional1 and Promo-tional2.

Achievements from Patents, Designs,and Trademarks Relating tothe Gem TradeNicholas Delre, GIA Gem Trade Laboratory, New York

Intellectual property, a concept that began about fourcenturies ago, consists in part of industrial properties(e.g., utility patents, design patents, and trademarks).

GEMSTONE MARKETINGGEMSTONE MARKETING

These charts show how the various attributes (i.e., color, clarity, cut, and carat weight) of a gem can be rated with respect to rarityusing the Gem Quality Index.

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These safeguards offer certain rights and protection thatallow the inventor to exclude others from making,using, or selling the same invention, usually for a limit-ed period of time.

Generally speaking: (1) a utility patent protects theway an article is used and how it works; (2) a designpatent protects the way an article looks; and (3) a trade-mark is an identifying word, phrase, symbol, or designthat distinguishes the goods or services of one partyfrom those of others. As more countries have becomeinvolved in developing and producing industrial prop-erties, particularly in the latter half of this century, therehas been an explosion in the number of these proper-ties. The accumulated patent literature offers an exten-sive reservoir of probably the most up-to-date source ofinformation on technological progress for new productsand processes in every technology. In addition, indus-trial properties have become sources for new innova-tions and improvements on old concepts.

Industrial properties are primarily grouped underclasses and subclasses found within major classificationsystems (i.e., the U.S. and international patent classifi-cation systems; see table).

Persons wishing to view the classification system indepth and obtain patents or trademarks, should contactthe U.S. Patent and Trademark Office, GeneralInformation Services, at 800-786-9199 or visit theirWeb site at http://www.uspto.gov.

Gem Enhancements andTheir Effect on PricingRichard Drucker ([email protected]),Gemworld International, Inc., Northbrook, Illinois

The latter part of the 1990s was a critical time for thegem industry, due to controversies over gemstoneenhancements and disclosure. Because of consumeruncertainty over disclosure, the industry saw many set-backs in gemstone pricing.

Emeralds were hardest hit by the enhancementissues. Consumer awareness of emerald enhancements(such as Opticon) reduced confidence levels and

Diamond faceting styles have been patented for decades. Thispartial example of a patented diamond cut by M. Asscher(Joseph) was issued in 1902 and made public in 1903.

Main classifications of jewelry items within patentsand trademarks.

U.S. system International system

Utility patents Class 63 Class A44Design patents Class D11 Class 11Trademarks Class 14 Class 14

Source: Patents Assist CD ROM (U.S. Department of Commerce, Patentand Trademark Office, Washington, DC, March 1999).

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brought dramatic price decreases. On average, theprice of extra-fine-quality one-carat emeralds droppedby 23% from their high in 1995, and good- to fine-quality emeralds declined by about 50%. The abun-dance of commercial-quality, heavily treated emeraldsresulted in a price decrease of about 65% for this mate-rial during this four-year period.

Partly as a result of enhancement issues, ruby pricesdeclined over the past eight years. The initial drop inprice resulted from an abundance of supply, as newmaterial from Mong Hsu (Myanmar) flooded the mar-ket. The attractive appearance, low price, and largesupply of the (commonly heat treated) material con-tributed to an overall reduction in ruby prices.Questions regarding the acceptability of the glass fillingpresent in some of the heat-treated rubies caused pricesto drop further over the past two years. Overall, theprice of extra-fine-quality rubies has fallen approxi-mately 36% since 1991; fine quality is down about45%, good quality is down 51%, and commercial qual-ity dropped 54%. As in the case for emeralds, the lowerquality grades suffered a greater price decrease.

If the industry is to survive the aggressive techno-logical advances of gemstone enhancement, we mustpush for greater education and full disclosure. Throughthese means, confidence can be restored and profitabil-ity will return.

Better Understanding of Gems andDaylight for Enhanced Work andBusiness SuccessManfred Eickhorst ([email protected]), SystemEickhorst, Hamburg, Germany

In the wholesale gem business, buying and selling cus-tomarily take place under conditions of natural day-light, at north-facing windows. Alternatively, fluores-cent lighting is used, with the color of the light as simi-lar to natural daylight as possible. For both near-color-less and colored diamonds, bulbs with a color tempera-ture of approximately 6,500 kelvin (K) traditionally areused, whereas for colored stones, 5,500 K bulbs arepreferred. The wholesale gem business, therefore,employs different kinds of artificial light depending onthe gemstones involved.

Jewelers, however, typically sell all of their gemsusing one kind of light, a halogen lamp with a colortemperature of approximately 3,000 K. This light isappreciably more yellow than natural daylight and,accordingly, “falsifies” the color of gemstones.Although halogen light may enhance the color ofrubies, it is detrimental to the color of sapphires, emer-alds, and near-colorless diamonds. As a rule, the jewel-

er feels it is more important to promote optical effectssuch as brilliance, dispersion, and dichroism, which areenhanced by halogen lighting. Consequently, jewelersrarely use daylight-equivalent illumination to displaythe “true” color of gems.

The use of daylight-equivalent lighting is encour-aged to bring out the best color appearance of gem-stones in the retail environment. The following light-ing factors should be taken into consideration whendesigning the most effective lighting system.

• The amount of incident luminous intensity isreferred to as illuminance (measured in lux or foot-candles).

• The daylight-equivalent color of the light, orientedto international standards, is D 55 and D 65 (i.e.,5,500 K and 6,500 K, respectively).

• Color rendering in comparison to natural daylight isdesignated by the Color Rendering Index (C.R.I.).

• Accent lighting and single-point lighting may beused to enhance the appearance of light reflectedby gemstones.

• Daylight-equivalent supplementary lighting may beused in combination with halogen lamps.

• For optimal eye comfort, flicker can be eliminatedfrom fluorescent lamps with electronic ballastdevices.

• Jewelers should have the ability to dim the bright-ness of fluorescent lamps to meet requirements foreffective presentation.

A better understanding of the versatility of modernfluorescent lamps and other light sources will enablesellers to demonstrate the unique color beauty of gem-stones, and thus decisively contribute to the success oftheir business.

Software Management Systems for JewelersDon Greig ([email protected]), ARMS USA,Henderson, Nevada

The biggest problem facing retailers is poor liquidity,caused by a lack of management ability, lack of profit,excessive investment in stock, and a majority of stockthat just doesn’t sell. In other words, “No retailer everhad problems with stock that sells with the right profitmargins and the right quantities!”

If retailers are to control their business, rather thanbe controlled by their business, four critical areas needattention: stock, suppliers, staff (sales), and self (man-agement decisions). To be successful, jewelers need to:

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1. Recognize and manage fast- and slow-selling inventory.

2. Understand the factors that affect profit,and learn how to implement profit-enhancing techniques into the business.

3. Initiate a refined reordering system thatensures that the best-selling merchandiseis always in stock.

4. Create usable management plans thatwork.

5. Implement training and plans to enhancethe staff’s cohesiveness as a team.

6. Learn how to effectively manage suppli-ers and create stronger working relation-ships, and learn to develop the store inthe areas that are not performing todefined expectations.

7. Control debt.

A good software management system will helpmanage a retailer’s physical stock efficiently. It willallow access to information and reports that identifystrengths and weaknesses, and it should become theretailer’s tool for producing more profit by buyingright and marking up correctly.

Publicity and Profits vs.Advertisements and Expenses

Henry F. Kennedy (phone/fax 732-462-6043), H. F.Kennedy: The Museum Exhibit, Freehold, New Jersey

How can retail jewelers achieve bigger and faster saleswhile conserving advertising expenses? How can theystand out from the competition and find greater namerecognition, both in the jewelry industry and in thecommunity? By developing communication skills withthe media, retailers can increase their exposure withoutfinancial expenditure.

Many second- and third-generation jewelers cantrace their retail roots to a relative who was in thewatch repair business. As the economy boomed afterWorld War II, watch repairers gradually found them-selves selling more diverse jewelry products. Becausebusiness was steady, and most of the advertising was byword of mouth, they never really had to concernthemselves with paid advertising or publicity. Theyhad little time or need to develop communication skillswith the media.

The times are changing . . . and quickly! Today’s

retail jeweler has never faced more diverse, intensecompetition from so many new sources. At the sametime, advertising costs have skyrocketed and the num-ber of media outlets has multiplied, further diluting thepower of advertising dollars.

Communication—as distinct from advertising—means getting free coverage by the media: TV, radio,and print. You don’t need money, power, or a particu-lar position to take advantage of media marketing.Media coverage is media marketing—simply receivingmedia coverage creates importance. Rather than spend-ing big money to create elaborate brochures, jewelersand manufacturers should take advantage of mediamarketing. Strategies should be designed to enhancethe image of products, persons, and events. By main-taining a local focus, a company can create synergyamong the media.

Media-savvy promotions are entertaining and excit-ing. The hardest part is “hooking” or catching themedia’s attention—you can do this with creativity.

A lack of understanding of how the news mediaoperates explains why so many promotions fail. Themedia strives for more distinction, greater circulation,and higher ratings. In the jewelry trade, products andservices can be marketed with the same goals in mind.

For example, Swiss jeweler Bucherer generatedsome of its best colored gemstone sales on minimaladvertising in 1988. The results were achieved throughmedia interest in an 18.50 ct cat’s-eye alexandrite thatwas toured through a half dozen of Bucherer’s storesand promoted as the rarest, most spectacular jewel inthe world. The company’s size and money wereimportant, but not as important as their creativity andpackaging.

Advertising and editorial coverage involve differentvalues. Indeed, advertising often incites the adversarymode in each of us. However, carefully placed mediamarketing creates and packages ideas that will be inter-esting to reporters and exciting to the audience, andthat will produce measurable results.

Building a Profitable Appraisal Business Steven Knight ([email protected]),The Jewelry Judge, Hamilton, Ontario, Canada;Ralph S. Joseph, The Jewelry Judge, Princeton,New Jersey; and Barry Block, The Jewelry Judge,Garden City, New York

Appraising has developed into an important professionwithin the jewelry industry. Today qualified individu-als are finding more career opportunities in apprais-ing—either independently or through retail jewelryestablishments or franchise opportunities—provided

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they take the necessary steps to build their credentialsand develop effective marketing strategies.

Consumers are becoming more aware of profes-sional credentials, and will seek out appraisers whohave them. Building credentials can increase consumerconfidence, while adding to an appraiser’s knowledgebase. After completion of gemological coursework, anappraiser’s training should be continued in any of anumber of specialty appraisal courses available, specifi-cally in valuation science.

In order to generate business, effective marketingstrategies include print, electronic, and other mediaadvertising. Counter displays that detail your servicescan be distributed and displayed at jewelry stores thatbenefit from your association with them. Sales person-nel at these stores will gladly recommend your profes-sional services as a qualified appraiser.

A new frontier in the appraisal profession is theconcept of franchising. The advantages of franchisinginclude proven marketing strategies, financial and busi-ness planning and support, protected territories, namerecognition, and group benefits to independent busi-ness owners. The “while you watch” philosophy of theappraisal franchise appeals to a growing number ofclients who are uncomfortable leaving jewelry in thepossession of jewelers or appraisers whom they do notknow. The Jewelry Judge Appraisal Centers are currentlythe only such franchised offering. Centers are nowoperating, and are expanding into all major markets inthe U.S. and Canada.

Jewelry Appraising: Professionalismin the New MillenniumAnna M. Miller ([email protected]), Master ValuerInternational, Pearland, Texas

Education in valuation science is the foundation of pro-fessional jewelry appraising, and the number one ele-ment in an appraiser’s long-term success. Completionof a program of structured, academic valuation study isthe most important of the many qualifications necessaryto becoming a professional jewelry appraiser. The callfor full professional appraiser status comes from aninternational demand for intelligent and ethical valua-tions, logical data analysis, and skilled use of current val-uation procedures. To answer this need, comprehensivediploma courses in gem and jewelry appraising havebeen developed and are now being given worldwide inworkshops, college residence classes, and by correspon-dence. These advanced jewelry appraising courses have

introduced new systems, procedures, and ways of com-municating in valuation science.

Rapid global change requires appraisers to under-stand markets outside of their own, while thinkingbeyond the boundaries of current resources. Sincechange brings opportunity for growth, the professionalanticipates and adapts to change. A competitive edge isacquired by the appraiser who has expertise in valuemethodologies, an understanding of current appraisalstandards, and the willingness to investigate a novelapproach to establishing value in specialty markets(e.g., jadeite, antique and estate jewelry). Also, a pro-fessional appraiser must be comfortable working ininternational markets and have a sound understandingof how global economics impact valuations. Althoughsome appraisers turn to prepared price lists to estimatevalues, this approach will be inadequate in the future.Precise pricing and value justification will be best con-ducted with the aid of global networking betweeneducated professionals sharing the same goals, stan-dards, and exacting market research.

What Does That Emerald Look Like?How to Communicate Color andAppearance across ContinentsRandall M. Wagner ([email protected]),GemEx Systems Inc., Mequon, Wisconsin

Communicating the color and appearance of gem-stones across distances is a complicated problem.Although various color communication systems havebeen developed, using color samples—such as those inthe GIA GemSet, GemDialog, or World of Colorpackages—to describe a gemstone’s color neglectsmany of the aspects that are integral to the stone’sappearance (i.e., color uniformity, windowing, extinc-tion, brilliance, and scintillation). Photography canprovide useful images of gemstones, but the color ren-dered in a photo is complicated by several factors dur-ing the exposure and development process. Althoughelectronic cameras can significantly reduce the effortinvolved in capturing and transmitting images, theyface the same problems as conventional cameras. Just aseach film type records color differently, each camerarecords its own “version” of color; just as the develop-ment process affects the stone’s color, each computermonitor displays color differently. Although the cam-era and monitor can both be calibrated for acceptablecolor representation, this adjustment is lost on anotheruser’s system.

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However, if an imaging spectrophotometer is usedto measure the complete spectral response of a gem-stone, the corresponding image can be consistently dis-played on any monitor in the world, provided thechromaticity coordinates for that monitor are known.The spectrophotometer measurement is used to adjustthe color of the image on the computer screen. As aresult, the Internet can now be used to communicateboth the color and appearance of a gemstone acrosscontinents in minutes.

JEWELRY

Engraved Gems: 6000 BC– 2000 ADUte Klein Bernhardt, Wausau, Wisconsin

The art of gem carving, which is as old as civilization,had a humble, utilitarian beginning 8,000 years agowith the carving of clay stamp seals. During this time,known as the Protoliterate Period, there was no writ-ten language and the carved seals functioned as signa-tures for contractual purposes and for identifying per-sonal property. As religion evolved, the carved sealstook the form of decorative and functional amulets.Although the amulets continued to serve as readilyavailable signatures, they also were used as protectionagainst malaise.

Five thousand years ago, a major change occurredwhen carvers began to create cylindrical seals usingvery soft gems instead of clay. Later, as written lan-guage came into being, carvers began using harder,more precious gems for their seals. Gem materialscarved into a multitude of different designs (e.g.,stamps, amulets, or cylinder seals) have been covetedby the elite through the centuries.

Historically, gem carving has been a cyclical art.With each reemergence the art reached a higher level,attaining perfection (even by current standards) duringthe Greek, Etruscan, and Roman periods. After theRoman period, very little gem carving was done untilthe early Renaissance, when the art was rediscoveredand enjoyed great popularity for the next 200–300years. During this time, members of the nobility (suchas Italy’s Medici family) owned studios and were theemployers and patrons of the artisans. Very fine workwas produced by a number of masters. These royalgem collections were housed in “Treasure Rooms,”which became the forerunners of today’s museums.

At the onset of the 18th century, Russia had two

active carving centers. However, interest and apprecia-tion of carved gems soon waned, and the outputreduced to a trickle, notwithstanding contributionsfrom the Fabergé House in the late 19th and early 20thcenturies. During the 1700s and 1800s, gem carverswere scarce in most major European cities.

After the Franco-Prussian War ended in 1871, gemcarving took hold in the region of Idar-Oberstein,Germany. For the remainder of the 19th century untilthe present time, gem carving has been an importantpart of the jewelry industry in Germany, as carverstook full advantage of the Industrial Revolution.

Octavio Negri, an Italian-American trained inRome, was influential in New York during the earlypart of the 20th century. Beth Benton Sutherlandapprenticed with him from 1921 to 1926, becoming avery accomplished carver over the next 30 years; herfavorite medium was moonstone.

In Europe after World War I, August Rudolf Wildof Idar-Oberstein was considered the best carver in theworld; he received a Gold Medal in the category ofFine Art at the 1937 World’s Fair in Paris. During the1950s, Richard Hahn’s Idar-Oberstein studio beganreproducing great Greek and Roman cameos in theRenaissance style. His work was purchased primarilyby American collectors, who created a revival ofcarved gems in the U.S. This in turn brought aboutthe evolution of self-taught gem carvers in America.

Today, Bernd Munsteiner of Stipshausen, Germany,carves gems into abstract and revolutionary designs. Heis a major influence on the many young carvers whowill lead gem carving into the next millennium.

Products of Endangered andThreatened Species Used in JewelryCharles I. Carmona ([email protected]), GuildLaboratories, Inc., Los Angeles, California; andJo Ellen Cole, GIA, Carlsbad, California

The use of animal products in jewelry and decorativearts has brought about steep declines in the populationsof many species, the greatest of which occurred in the1970s and 1980s. In response to this ecological calami-ty, the United Nations drafted the Convention onInternational Trade and Endangered Species (CITES).Cross-border trade in endangered species—thosepresently in danger of extinction—was banned by 123signatory nations under the terms of CITES in 1989.By most measures, the CITES ban has been a success,as populations of some endangered species are recover-ing to the point that affected countries are calling for a

JEWELRY

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controlled loosening of the ban and a resumption oftrade in the related animal products.

Among the numerous endangered or threatenedspecies are many whose products are encountered injewelry, including ivory producers (elephant, walrus,hippopotamus, and whale), corals, and turtles. Somethreatened species—those that will become endangered atcurrent rates of exploitation—are part of the pearl indus-try (e.g., specific species of oyster, abalone, and conch).

In the environmentally aware 1990s, fashion hasalso had an effect, as demand has diminished in somecultures for those products associated with the indis-criminate and unsustainable hunting or harvesting ofanimal species. At the same time, the market is adapt-ing by finding alternatives such as vegetable ivories(tagua/corozo and doum nuts), plastics, and othermanufactured materials.

Most governments recognize the importance ofrebuilding and maintaining the natural resources andthe bio-diversity of their region. Eco-tourism, a grow-ing industry in many developing nations, has encour-aged this philosophy. Balancing the survival of thevarious species with centuries-old traditions of trade intheir products is the challenge that we face at thebeginning of the new millennium.

Jewelry with a PurposeSusan Eisen ([email protected]), Susan Eisen Inc.,El Paso, Texas

Jewelry is treasured as a symbol of love and emotion,and serves as an adornment or fashion item to conveybeauty, pride, or celebration. At the same time, jewelrymay serve a functional purpose. Besides the most com-mon example of time keeping (i.e., wristwatch orpocket watch), jewelry has been used for the followingpurposes:

• Identification of medical conditions • Passing down heirlooms in families (royal or

otherwise)• Secretly communicating love and admiration• Commemorating important sporting events• Exalting the crowning of a king• Commemorating a trade treaty agreement• Providing an extravagant representation of a

country (e.g., royal regalia)

Over the centuries, many such items have heldsymbolic or historical significance, and are thereforepreserved in museums worldwide. Such pieces are heldin high esteem not only because of their beauty andcraftsmanship, but also for the important place they

hold in the history of a country or a family. Eventoday, items such as portrait jewelry (as in cameos),“mother’s rings” (with the birthstones of the children),class rings, and sports championship rings continue thetradition of jewelry with a purpose.

Platinum—The Metal of the MillenniumJürgen J. Maerz ([email protected]), Platinum GuildInternational USA, Newport Beach, California

Worldwide demand for platinum jewelry has increasedtremendously over the last five years. In 1998, the jew-elry industry accounted for 2.4 million ounces (or40%) of the platinum consumed worldwide—up from1.6 million ounces in 1993. In the U.S., domestic netplatinum jewelry usage has soared from 20,000 ouncesin 1991 to 220,000 ounces in 1998. China is theworld’s fastest growing platinum jewelry market, with620,000 ounces consumed in 1998—representing a70% increase over 1997.

The bridal market continues to drive internationaldemand for this rare and precious metal. In Japan, plat-inum accounts for 95% of the engagement ring catego-ry and 80% of the wedding band category. In the U.S.,platinum is now a key element of the bridal market,accounting for a 25% market share.

In its purest form, platinum is soft, so it needs to bealloyed for jewelry purposes. Platinum/cobalt is a finecasting alloy. Platinum/iridium is a versatile alloy thatis suitable for fabricating, as well as casting.Platinum/ruthenium is used when machining proper-ties are desired. Many other specialty alloys, such asheat-treatable alloys, are being developed.

New technology is improving the workability ofplatinum. The laser welder has become the preferredtool for performing the most intricate welding withoutdamage to surrounding diamonds or colored stones.

Because of its natural white color, durability, andflexibility, platinum lends itself to a multitude ofdesigns, and can be used to enhance the beauty ofgemstones—especially diamonds. As a result, it hasbecome increasingly popular among the world’s topjewelry designers. The tremendous growth in the pop-ularity of platinum over the last few years has trulymade it the metal of the millennium.

Designing Colored Diamond JewelryEtienne Perret ([email protected]), EtiennePerret & Co., Camden, Maine

Natural fancy-color diamonds are the celebrities of thediamond world. Almost everyone knows of the blueHope diamond and the “canary” yellow Tiffany dia-

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mond. Only the elite of the diamond jewelry designershave had the good fortune to design jewelry set withthese exceedingly rare gems. Most often these coloreddiamonds were set in museum-like pedestal settings.

For the designer wishing to incorporate colored dia-monds into jewelry, color-treated diamonds offer a solu-tion to the rarity and expense of natural-color diamonds.

Past Color Treatment of Diamonds. Diamonds havebeen color treated for almost 100 years. The first dia-monds were color treated by Sir William Crookes in1905 by exposure to radium salts, which caused themto turn dark green. However, the diamonds were high-ly radioactive and took many years to “cool down”enough for jewelry use.

Today’s Diamond Color Treatments. Nowadaysmost diamonds are color treated in an electron accelera-tor, where exposure to a beam of electrons causes themto turn a greenish hue. Then, through annealing, thediamonds are colored yellow, orange, or brown. Thediamonds do not become radioactive and therefore canbe used in jewelry immediately after treatment. In addi-tion to green, yellow, orange, and brown, color-treateddiamonds are currently available in red, purple, blue,and black colors.

Painting with Color. Color-treated diamonds offerthe designer the versatility of color combined with thebrilliance, durability, and caché of diamonds. Designerscan now use colored diamonds in the same way thatpainters use paint on a canvas. If they want to cover anarea with blue, then blue diamonds can be pavé set orinvisibly set in whatever shape is desired. If they arelooking for a stripe of purple, then a row of channel-setpurple diamonds are in order.

Today’s Designers. A handful of innovative Germandesigners used color-treated diamonds in the early ‘90s.More recently, however, I have found only a fewdesigners who use color-treated diamonds as a majordesign element in their jewelry, despite searching thelarge tradeshows in Basel, New York, Tokyo, and LasVegas. In the new millennium, perhaps more designerswill enjoy the increased opportunities—and sales—afforded by color-treated diamonds.

Gem Artists of North America:The Renaissance of ModernLapidary ArtSherris Cottier Shank ([email protected]),Gemscapes, Southfield, Michigan; Glenn Lehrer,Lehrer Design, San Rafael, California; andJohn N. Hatleberg, Big Gems, New York

Gem Artists of North America (GANA) was formed in

1996 to increase awareness and appreciation of gem artthrough education, promotion, and marketing, and tosupport the needs of gem artists and related profession-als. The specific objectives of GANA are:

• To facilitate a closer communication between allsegments of the gem art, colored stone, and jew-elry industries

• To educate members by sharing information

• To educate the public about gem art

• To establish, promote, and maintain the highestethical standards among its members andthroughout the gem art industry

• To protect the gem art industry and ultimateconsumer from fraud, abuse, misrepresentation,and deceptive advertising

Artist members must demonstrate substantial com-mitment to the medium of “hard gemstone” (i.e., 5 orabove on the Mohs scale), and must have demonstratedthe development and execution of unique and originalconcepts, including but not limited to facet, sculptural,and carving designs. They also must have demonstratedoriginality of artistic form and excellence of techniquein the execution of the designs.

The 25 current artist members of GANA work in awide variety of styles encompassing multiple disciplines,both singly and in combination, including sculpture,carving, faceting, and intarsia. Their extraordinary cre-ations are the culmination of each artist’s working foryears in relative isolation, coupled with the recent unifi-cation of their talents through GANA. The formationof GANA signals the birth of a modern renaissance inlapidary art. In the next millennium, both those whoproduce and those who appreciate gem art will growdramatically in numbers. GANA will be at the forefrontof this growth. For more information, visit the Website http://www.gemartists.org.

PEARLS

Natural Abalone Pearls:Rare Organic GemsSarabeth Koethe, Gem Sciences International, Inc.,Deer Park, California; and K.C. Bell, San Francisco,California

Dr. T. Nishikawa noted that pearls were used in Japanfor ornamental purposes more than a thousand yearsago (Kunz and Stevenson, 1908). There is evidence

PEARLS

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that at least some of these pearls were abalone pearls:Large abalone pearls, for example, are found in imagesof Buddha made in 300 A.D.

The Haliotis abalone pearl has a long and turbulenthistory. These abalones are distributed along areas ofthe Pacific Coast from Alaska to Mexico. There areactually eight pertinent species: Haliotis fulgens, Haliotisrufescens, Haliotis cracherodii, Haliotis discus, Haliotiskamtschatkana, Haliotis corrugata, Haliotis sorenseni, andHaliotis walallensis. Gem-quality abalone pearls are quiterare, with estimations of one gem pearl per approxi-mately 500,000 commercially gathered animals.

Unlike the direct relationship between molluskcolor and resulting pearl color of both the Pinctada radi-ta and Pinctada martensii, the various species of abalonecan yield pearls of multiple distinct colors within thesame univalve mollusk. Theories relate this phe-nomenon to diet and water temperature.

RE F E R E N C E

Kunz G.F., Stevenson C.H. (1908) The Book of the Pearl. DoverPublications, Mineola, New York.

“A Pearl Circus”: Origin, Variety,and Enhancement of PearlsGina Latendresse ([email protected]), AmericanPearl Co., Nashville, Tennessee

Pearls have been known for centuries as the “Queen ofGems.” To understand this majestic yet gentle gem, onemust know her origin, her many varieties, and herenhancements. Nineteen species of fresh- and saltwatermollusks were presented in the “Pearl Circus,” includingcorresponding natural and cultured pearls from some ofthese species. Special “guest stars” included a 2 pound(about 1 kg) mollusk that was approximately 70 years old;a 21.7 mm round shell bead nucleus for pearl culture;imitation “conch pearls,” with the same chemical proper-ties as their natural counterparts; an 18.35 mm roundishnatural abalone pearl; and a 185.5 ct natural “Melo Pearl.”

Pearl dissection is one way to examine the thicknessof the nacre in bead-nucleated cultured pearls, and thedistinctive growth structure of tissue-nucleated cul-tured pearls. Some enhancements, such as dye and irra-diation, are also readily apparent with pearl dissection.Considerable advances have been made in irradiationfrom 1981 to the present.

Natural pearls form when an irritant (a shell-like ororganic protein substance) is introduced by chance intothe soft tissue of a mollusk. It is a myth that a grain ofsand (an inorganic substance) begins a pearl. Culturedpearls form when an irritant (a shell-like or organic pro-tein substance) is introduced by human intervention.

According to the U.S. Federal Trade Commission(FTC), it is deceptive to use the unqualified word pearl toidentify any type of cultured pearl. Ninety-five percentof “pearls” sold today are cultured, yet most of the lan-guage in the pearl and jewelry industries does not includethe word cultured when referring to cultured pearls.

Cultured Abalone Mabé Pearlsfrom New Zealand

Liz McKenzie ([email protected]), Empress AbaloneLtd., Christchurch, New Zealand

While abalone produce pearls naturally, these are veryrare, exceedingly costly, and irregular in shape, colordistribution, and surface. New Zealand’s indigenousabalone, Haliotis iris, produces beautiful multi-huedcultured abalone mabé pearls. These cultured blisterpearls feature symmetrical shapes, spectacular luster,saturated color, and improved surfaces.

At Empress Abalone Ltd., abalone mabé pearls aregrown at an on-shore aquaculture facility located onStewart Island, across the Fouveaux Strait from theSouth Island of New Zealand. Abalone stock forimplantation is obtained annually from three sources:the company’s natural fishing quota, other companies’annual quotas, and spat culture.

Abalones are hemophiliacs—they have no clottingmechanism in their blood. However, they do haveextremely strong muscular viscera, and are very mobileeven when confined. Thus, it was very difficult to per-fect the technical procedure of implanting these uni-valve gastropods with hemispherical beads.

After the nuclei have been implanted, the abaloneare placed in grow-out tanks of clean, circulating sea-water, where they are monitored. Once every threedays, the abalone are fed a fresh mix of seaweed, gath-ered from the Great Southern Ocean.

Two years after implantation, a mabé of 0.3–0.6mm thickness forms on the inner surface of theabalone’s shell. The abalone is harvested, and the blisteris cut from the shell with a special surgical instrument.Following removal of the nucleus, the blister is filledwith polymer and fitted with a back of polishedabalone (paua) shell. The finished cultured abalonemabés, which range from 9 to 20 mm in diameter, arenext ready for grading and marketing.

The abalone mabés are marketed in “Gem,” “A,”and “B” grades. Colors range from a most-valued“azure” through blue, green, purple, lavender, magen-ta, pink, orange, and “silver.” The luster of the multi-hued nacre ranges from a mirror-like surface to a dullsheen. Surface smoothness also varies.

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Synthesis and Enhancement of Gems inRussia in the Second Half of the 1990sVladimir S. Balitsky ([email protected]), Instituteof Experimental Mineralogy, 142432 Chernogolovka,Moscow District, Russia

In the second half of the 1990s, Russian laboratoriesproduced both traditional and new synthetic gems andsimulants, and Russian manufacturers also performedmany gemstone enhancements. In particular, Russianproducers grew commercial quantities of syntheticruby, sapphire, emerald, alexandrite, spinel, malachite,opal, and turquoise; as well as synthetic amethyst, cit-rine, and brown, blue, green, and pink quartz. Theyalso produced large amounts of the simulants yttriumaluminum garnet (YAG), gadolinium gallium garnet(GGG), cubic zirconia (CZ), and yttrium aluminumoxide. Russian scientists used treatment methods tochange the color of topaz (from colorless and brown toblue), beryl (from yellow-green heliodor to blue aqua-marine), agate (from gray and white to red, yellow,green, blue, and black), chalk-like turquoise (fromwhite to “sky” blue), lazurite (from green to darkblue), nephrite (from brownish to pale green, green,and white), and quartz (from colorless to “smoky” andgreenish yellow).

New developments in Russia during the secondhalf of the 1990s include the production of yellow (upto 4 ct) and colorless (up to 1 ct) synthetic diamonds;blue and red synthetic beryl; colorless and colored syn-thetic moissanite; pink synthetic quartz, syntheticamethyst-citrine (ametrine), synthetic amethyst–greenquartz, and polychrome synthetic quartz; as well assynthetic aventurine and bright yellow-orange synthet-ic “langaisite” (lanthanum gallium silicate). Virtually onhiatus since the 1960s, Russia is again seeing the com-mercial production of flux and hydrothermal syntheticruby and sapphire. Russian scientists also have devel-oped new technologies for the surface-coloring of bothcolorless and pale-colored sapphires to appear blue, oftopaz to appear blue and bright green, of quartz toappear blue and pink, and of CZ to appear black andopaque white. Of particular interest today is the devel-opment of technology to lighten the color of yellow-to-brown natural diamonds.

At the same time, there has been considerablechange in the structure and volume of production ofsynthetic and enhanced gems within the last five years.Although the largest enterprises for producing crystalsfor technical applications (synthetic colorless quartz,

ruby, sapphire, alexandrite, and garnets, among others)continue to be run by the government, practically allother kinds of synthetic and enhanced gems were pro-duced by private companies, including some supportedby a combination of domestic and foreign capital. Inthe second half of the 1990s, several dozen such jointventures were created. The competition between themled to overproduction and, ultimately, an abrupt dropin prices, so that many of these companies were forcedto go out of business. This was particularly the casewith synthetic amethyst, opal, emerald, and alexandrite,as well as with enhanced topaz. The next decade shouldwitness the production of larger synthetic diamonds(both colored and colorless), as well as hydrothermalsynthetic ruby, sapphire, and alexandrite. New methodsof gem enhancement will also be developed.

An Imitation of Black Diamond:Artificial Black Cubic Zirconium OxideJean-Pierre A. Chalain ([email protected]), SSEF SwissGemmological Institute, Basel, Switzerland

Black as a color has been in vogue for the past severalyears. This trend has reached the jewelry trade and, as aresult, large quantities of black diamonds have been setin various types of jewelry. In 1998, SSEF checkedmore than 3,000 carats of purported black diamondsfor color authenticity. During these examinations, sev-eral pieces of artificial black zirconium oxide (cubiczirconia—CZ) were identified.

Black diamond usually occurs as single crystals withnumerous black graphite inclusions (see, e.g., Kam-merling et al., 1990). Carbonado is a natural sinteredpolycrystalline aggregate of minute diamond crystalswith a granular-to-compact structure. It is alwaysopaque and may be black, brown, or dark gray; lesscommonly, it is “brick” red to pale purple and lightgreen. Bort is a black polycrystalline form of diamond(Haggerty, 1998). Carbonado and bort are sometimescalled “black diamond” by the trade.

Faceted black CZ can be easily separated fromblack diamond by its rounded facet junctions, absenceof inclusions, dark brown appearance when viewedwith a powerful fiber-optic light, and specific gravity(Kammerling et al., 1991). For round-brilliant-cutsamples, a comparison of the diameter to the weight issufficient to distinguish black CZ from black diamond.

X-ray fluorescence (EDXRF) analyses were per-formed on several of the suspect black specimens. Theanalyses revealed a predominance of zirconium, withlesser amounts of yttrium and hafnium, which con-firmed that these samples were CZ.

SYNTHETICS AND SIMULANTSSYNTHETICS AND SIMULANTS

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RE F E R E N C E S

Haggerty S.E. (1998) Diamond-carbonado: Geological implica-tions and research—industrial applications. Proceedings of the 5thNIRIM International Symposium on Advanced Materials (ISAM’98), Tsukuba, Japan, pp. 39–42.

Kammerling R.C., Kane R.E., Koivula J.I., McClure S.F. (1990)An investigation of a suite of black diamond jewelry. Gems &Gemology, Vol. 26, No. 4, pp. 282–287.

Kammerling R.C., Koivula J.I., Kane R.E., Fritsch E.,Muhlmeister S., McClure S.F. (1991) An examination of non-transparent “CZ” from Russia. Gems & Gemology, Vol. 27,No. 4, pp. 240–246.

Educating the Jewelry Industryabout Lab-Created MoissaniteJeff Hunter ([email protected]), Charles & Colvard(formerly C3 Inc.), Morrisville, North Carolina

C3 Inc. began worldwide distribution of laboratory-created moissanite gemstones (henceforth all referencesto moissanite or moissanite gemstones are to laborato-ry-created materials) in mid-1998. Because some of thephysical and optical properties of diamond andmoissanite are similar, especially those that are com-monly used for identification purposes in gemology(e.g., refractive index), the possibility of misidentifica-tion exists.

Charles & Colvard is positioning moissanite as aunique synthetic gemstone, with high brilliance, fire,and luster, that is very durable and exclusive throughits limited availability. Most importantly, though, thecompany expects full disclosure, so that moissanite issold and purchased as moissanite. As the volume ofmoissanite in the marketplace grows, accurate identifi-cation throughout all channels of the jewelry industrywill become even more important. Charles & Colvardis expanding its extensive education program for thejewelry trade through new initiatives by both interna-tional distributors and selected U.S. retailers.

To better understand the awareness level ofmoissanite in the jewelry industry, in May 1999 mem-bers of the C3 sales team surveyed 19 retail jewelrystores in North Carolina: 10 department stores, threefranchised jewelry chains, and six independent jewelrystores. Representatives of only eight stores were able toreach a conclusion on the identity of a near-colorlessround brilliant set in jewelry, and five of them mistak-enly identified the moissanite as diamond. Elevenstores had no testing instrumentation (including ther-mal probes) available. In addition, less than 5% of the200+ total participants at three of C3’s moissanite edu-cational seminars this spring had ever seen moissanitegems.

These observations, while a concern, are not

unusual. At the 1999 JCK Orlando Show and the AGSConclave in New Orleans, C3 personnel demonstratedthe doubly refractive nature of moissanite, one of themost fundamental and easiest means of identification. Itwas impressed upon the participants that care must betaken to ensure that the inside of the stone is viewedfrom several directions so that the one singly refractivedirection in the stone is avoided. Other identifying fea-tures demonstrated include the high dispersion, specificgravity (3.20–3.24), polished girdles, and needle-likeinclusions (see, e.g., Nassau et al., 1997; Nassau, 1999).The vast majority of participants observed moissanitefor the first time and left with greater confidence intheir ability to identify it with a loupe.

RE F E R E N C E S

Nassau K. (1999) Moissanite: A new synthetic gemstone material.Journal of Gemmology, Vol. 26, No. 7, pp. 425–438.

Nassau K., McClure, S.F., Elen, S., Shigley J.E. (1997) Syntheticmoissanite: A new diamond substitute. Gems & Gemology, Vol.33, No. 4, pp. 260–275.

Colors of High-PressureSynthetic DiamondsHisao Kanda ([email protected]), National Institutefor Research in Inorganic Materials (NIRIM), Tsukuba,Ibaraki, Japan

It is well known that yellow and blue synthetic dia-monds are synthesized in the presence of nitrogen andboron, respectively, by conventional high-pressuretechniques. Other colored synthetic diamonds also canbe produced by the introduction of certain elements,such as nickel and cobalt, into the diamond lattice.

When nickel and cobalt impurities are incorporatedinto the diamond lattice during growth, they canbecome optically active centers, giving rise to a varietyof absorption and luminescence bands. These bands arerelated to the concentrations and structure of nitrogenpresent in the synthetic diamonds. The nitrogen impu-rities are incorporated in a single substitutional form,but they are aggregated with heat treatment. Thenitrogen concentrations can be controlled by the com-position of the metal alloy in which the diamondsgrow.

A nickel impurity produces a brownish yellowcolor when high concentrations of nitrogen are presentin the crystal. With decreasing concentrations of nitro-gen, the color changes to green and then to brown.When the nitrogen-containing crystals are heated attemperatures above 1500ºC under high-pressure con-ditions, both the brownish yellow and the green colorsalso become brown. The heat-treated diamonds lumi-nesce intense green to UV radiation.

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GEMS & GEMOLOGY FALL 1999 175

A cobalt impurity does not have a strong absorptionband, so no characteristic color results from the incor-poration of this element into the diamond structure,although luminescence is produced. Diamonds thathave high concentrations of nitrogen and containcobalt are yellow due to the nitrogen impurity. Whensuch diamonds are heated, the color will fade, butstrong yellow luminescence will be observed with UVradiation. Selected references on these topics are pre-sented below.

RE F E R E N C E S

Collins A.T., Spear P.M. (1982) Optical active nickel in syntheticdiamond. Journal of Physics D. Applied Physics, Vol. 15, No. 12,pp. L183–L187.

Collins A.T., Kanda H., Burns R.C. (1990) The segregation ofnickel-related optical centers in the octahedral growth sectorsof synthetic diamond. Philosophical Magazine B, Vol. 61, No. 5,pp. 797–810.

Kanda H., Lawson S.C. (1995) Growth temperature effects ofimpurities in HP/HT diamonds. Industrial Diamond Review,Vol. 55, No. 565, pp. 56–61.

Lawson S.C., Kanda H. (1993) An annealing study of nickelpoint defects in high-pressure synthetic diamond. Journal ofApplied Physics, Vol. 73, No. 8, pp. 3967–3973.

Lawson S.C., Kanda H., Watanabe K., Kiflawi I., Sato Y.,Collins A.T. (1996) Spectroscopic study of cobalt-related opti-cal centers in synthetic diamond. Journal of Applied Physics, Vol.79, No. 8, pp. 4348–4357.

Bluish Green, Light Green, and PinkSynthetic ChrysoberylMichael S. Krzemnicki ([email protected]) andLore Kiefert, SSEF Swiss Gemmological Institute,Basel, Switzerland

Gem-quality yellow, colorless, and color-change syn-thetic chrysoberyl (synthetic alexandrite) have beenavailable for some time in the gem trade. Here we pre-sent the first gemological data on bluish green (onesample), light green (three samples) and pink (threesamples) synthetic chrysoberyl. The light green and thepink samples were donated to SSEF by Kyocera Corp.,Japan.

Microscopic investigations revealed that the bluishgreen and light green synthetic chrysoberyls were prac-tically inclusion-free. Minute bubbles or particles werefound only in the pink samples. Growth structureswere not observed. With long-wave UV, the bluishgreen and light green samples showed a weak red fluo-rescence, whereas their natural counterparts may showa strong red glow due to traces of chromium; the pinksamples did not fluoresce.

The bluish green and light green synthetic chryso-beryls closely resembled the natural chrysoberyl that

has reportedly been found near Tunduru, Tanzania;their color was attributed to traces of vanadium(Johnson and Koivula, 1996). Chemical analyses(EDXRF) revealed approximately 0.18 wt.% V2O3 inthe light green synthetic stones, which is similar to thatfound in the natural light green chrysoberyl. However,only the natural stones contain additional trace ele-ments (such as Fe, Ga, and Sn) in detectable quantities.The iron content (0.2–0.3 wt.% Fe2O3) seems to influ-ence the depth of color in the natural light greenchrysoberyl. The bluish green synthetic sample con-tained much more vanadium than its natural equivalent(approximately 1.5 wt.% V2O3 versus 0.3 wt.% V2O3).

A pink color in chrysoberyl is attributed to theincorporation of titanium (approximately 0.2 wt.%TiO2), probably into the aluminum lattice sites. As isthe case for synthetic pink sapphire (e.g., “Ti-sap-phire”; Johnson et al., 1995), we suggest that the pinkcolor of synthetic chrysoberyl is caused by trivalenttitanium (Ti3+). Since trivalent titanium is rarely foundin natural terrestrial environments, this might explainwhy natural pink chrysoberyl has not yet been found.

RE F E R E N C E S

Johnson M.L., Mercer M.E., Fritsch E., Maddison P., Shigley J.E.(1995) “Ti-sapphire”: Czochralski-pulled synthetic pink sap-phire from Union Carbide. Gems & Gemology, Vol. 31, No. 3,pp. 188–195.

Johnson M.L., Koivula J.I. (1996) Gem news: Nonphenomenalvanadium-bearing chrysoberyl. Gems & Gemology, Vol. 32,No. 3, pp. 215–216.

New Hydrothermal Synthetic Gemstonesfrom Tairus, Novosibirsk, RussiaSergey Smirnov ([email protected]) andRudolf Mashkovtsev, United Institute of Geology,Geophysics and Mineralogy SB RAS, Novosibirsk,Russia; Victor Thomas, Vadim Maltsev, Iline Alexey,and Sergey Demin, Tairus, Novosibirsk, Russia; andBlinova Anastasiya, Novosibirsk State University

Hydrothermal synthesis resembles the process of natu-ral gemstone formation more closely than any othersynthesis technique (e.g., flame-fusion, Czochralski,flux). Yet, until the early 1990s, synthetic emerald anddifferent colors of synthetic quartz were the onlyhydrothermally grown gem materials that were commer-cially available on the world market. Since 1990, how-ever, Tairus has been developing hydrothermal meth-ods of commercially producing several varieties ofcorundum and beryl (other than emerald).

Sapphires doped with Cr and Ni were the firsthydrothermal synthetic gemstones to be commerciallyproduced by Tairus. The addition of varying amounts

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176 SYMPOSIUM PROCEEDINGS ISSUE

of Cr3+, Ni2+, and Ni3+ to the corundum crystal struc-ture results in a broad spectrum of attractive colors (seeThomas et al., 1997, for details). The most importantdiagnostic features of Cr-Ni hydrothermal syntheticsapphires, as well their gemological properties, areshown in the table.

The first dark blue and violetish blue hydrothermalsynthetic sapphires with a coloration caused by Fe-Tiimpurities (the elements that cause the blue color innatural sapphires) were produced in mid-1998. Thesesynthetic sapphires (again, see table) can be readily dis-tinguished from natural sapphires through microscopicobservation of their patchy color distribution and theirdistinctive gaseous inclusions.

Synthetic hydrothermal aquamarine was also firstgrown by Tairus in the mid-1990s. Like its naturalcounterpart, synthetic aquamarine owes its light green-ish blue color to the presence of small amounts of Fe2+

and to Fe2+–Fe3+ charge transfer. Synthetic aquama-rine (again, see table) can be distinguished from its nat-ural counterpart by its characteristic growth patternsand, sometimes, by the presence of flake-like aggre-gates of Ni-pyrrhotite and Ni-pyrite. Traces of Ni3+

are consistently present in the synthetic aquamarine,from contamination by the growth environment. TheNi3+ does not affect the color significantly, but it canbe detected by a low-intensity absorption peak near400 nm.

The synthetic gemstones recently produced byTairus are significant to the trade, and foreshadow theimportance of hydrothermal synthesis in the future.

RE F E R E N C E

Thomas V.G., Mashkovtsev R.I., Smirnov S.Z., Maltsev V.S.(1997) Tairus hydrothermal synthetic sapphires doped withnickel and chromium. Gems & Gemology, Vol. 33, No. 3, pp.188–202.

Gemological properties of Tairus hydrothermal synthetic sapphires and aquamarine.

Cr-Ni hydrothermal synthetic sapphire Fe-Ti hydrothermal synthetic sapphire Hydrothermal synthetic aquamarine

Color Almost any color Very dark violetish blue Light to dark greenish blue

Coloring agent Ni2+, Ni3+, and Cr3+ in Fe2+–Ti4+ charge transfer, Fe2+ and Fe2+–Fe3+ charge different combinations possibly Ti3+ transfer

Pleochroism Weak to strong; in some Strong Weak to strongcases, none

R.I. (NΩ ) 1.765–1.769 1.767–1.768 1.578 –1.580

R.I. (Nε) 1.757–1.761 1.759–1.760 1.571–1.577

Birefringence 0.007–0.010 0.008 0.004–0.008

S.G. 3.98–4.03 4.00 2.65–2.70

Luminescence to UV Inert to moderate Very weak to short-wave UV; Inertradiation (depending on color) inert long-wave UV

Inclusions and optical Clean, or abundant dark flake-like Gaseous inclusions surrounded Cellular or linear graining; flake-inhomogeneities crystalline inclusions; “fingerprints” by fissures; patchy color like aggregates of pyrrhotite or

and swirl-like graining distribution pyrite and topaz; “fingerprints”

Visible spectra 377, 556, and 599 nm bands 386 and 589 nm bands due to 800 and 375 nm bands due todue to Ni2+ and Ni3+; 469, 475, Fe3+ absorption and Fe2+–Ti4+ to Fe2+ and Fe3+; shoulder atand 690 nm lines due to Cr3+ charge transfer 650 nm due to Fe2+–Fe3+

charge transfer; line near400 nm due to Ni3+

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GEMS & GEMOLOGY FALL 1999 177

Editor’s note: FS indicates featured speaker, P indicates panelist, WR indicates War Roompanelist, and PS indicates poster session presenter(only the senior author is indexed).

AAkamatsu, Shigeru (FS) The present and future of Akoya

cultured pearls, 73–74Alfillé, Eve (P) Marketing pearl jewelry in the next millen-

nium, 122–123Altobelli, Cos (WR) Appraisals, 132–133Austein, Eric (WR) Diamond cut, 134–135

BBalitsky, Vladimir S. (PS) Synthesis and enhancement of

gems in Russia in the second half of the 1990s, 173Barbosa, Heitor D. (PS) Copper tourmaline from Paraíba,

Brazil: Reopening of the mine, regional exploration,138

Barguirdjian, Henri (P) The leadership role of fine jewelryin the 21st century, 121

Bernhardt, Ute Klein (PS) Engraved gems: 6000 BC–2000AD, 169

Blumer, Anne (WR) Appraisals, 132–133Bowersox, Gary W. (PS) Central Asia: A prime source of

gemstones for the 21st century, 140Boyajian, William E. (Valedictory Address) Meeting the

millennium in the gem & jewelry trade, 8–13Bridel, Robert (P) Critical issues in the 21st century, 125Bridge, Edward (P) Manufacturing and marketing diamond

jewelry in the 21st century, 116–117

CCalnon, John (FS) Perspective of an electronic retailer,

109–110Carmona, Charles I. (PS) Products of endangered and

threatened species used in jewelry, 169–170Chalain, Jean-Pierre A. (PS) An imitation of black dia-

mond: Artificial black cubic zirconium oxide, 173–174Chambel, Luís (PS) Diamond deposits of Angola, 155–156Chapman, J. G. (PS) Studies of the pink and blue col-

oration in Argyle diamonds, 156–157Chatelain, Elizabeth (WR) Branding, 130–131Chatham, Thomas (P) The role of laboratory-grown mate-

rials in the 21st century, 118–119Christenson, Clint (PS) Red beryl, 140Cohen, Sean (FS) A manufacturer’s perspective, 55Cook, Frederick A. (PS) Gemstones and global tectonics,

140–141Crown, Angelique (PS) Tanzanite mining update—A fol-

low-up to the mine disaster of April 9, 1998 at Merelani,Tanzania, 141–142

Cushman, Thomas A. (PS) The short life and death of asapphire boomtown, 142

DDavid, Sheldon (WR) Branding, 130–131Davidson, Terry (P) The leadership role of fine jewelry in

the 21st century, 120–121Deljanin, Branko (PS) Mining and heat treatment of

“geuda” sapphire at Ratnapura, Sri Lanka, 142–143Delre, Nicholas (PS) Achievements from patents, designs,

and trademarks relating to the gem trade, 164–165DeMaggio, Maha (PS) Visions of gems: The photodocu-

mentation of gemological subjects, 160Destino, Ralph (P) The leadership role of fine jewelry in

the 21st century, 120Dirlam, Dona (P) The importance of electronic network-

ing in the 21st century, 128–129Drucker, Richard (P) The importance of electronic net-

working in the 21st century, 128–129; (PS) Gemenhancements and their effect on pricing, 165–166

EEdelstein, Cindy (FS) The American designer jewelry

movement: Where it came from and where it’s going,105–106

Eickhorst, Manfred (PS) Better understanding of gems anddaylight for enhanced work and business success, 166

Eisen, Susan (PS) Jewelry with a purpose, 170Emmett, John L. (FS) Fluxes and the heat treatment of

ruby and sapphire, 90–92

Index to Presenters at the Third InternationalGemological Symposium

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FFarook, Aly (PS) An examination of the state of the gem

trade in Sri Lanka, 143–144Feather, Russell C. (PS) The Smithsonian Institution’s

corundum conundrums, 144Fischer, Jeffrey (WR) Disclosure, 136–137Forester, Nanette (WR) Disclosure, 136–137Fortunoff, Esther (WR) Branding, 130–131; (WR) Dis-

closure, 136–137Fortunoff, Helene (P) The leadership role of fine jewelry

in the 21st century, 120–121Fritsch, Emmanuel (P) The role of laboratory-grown mate-

rials, 118–119; (PS) Classification of gem opals usingRaman spectroscopy, 145

GGardner, Cecilia (WR) Disclosure, 136–137Garland, Mary I. (PS) Characterization of inclusion suites

in sapphire using Raman spectroscopy, 145–146Garzon, Charles (PS) Understanding emerald enhance-

ments, 145Ghergari, Lucretia (PS) Jasper occurrences in the Brad area,

Apuseni Mountains (Romania) 139–140Gilbertson, Al (WR) Appraisals, 132–133; (WR) Diamond

cut, 134–135; (PS) The revolution in cut grading, 157Goldberg, Eve (P) Manufacturing and marketing diamond

jewelry in the 21st century, 116–117Goldberg, William (WR) Diamond cut, 134–135Goyal, Manuj (PS) Pyrope-almandine garnets from various

mining areas in Orissa, India, 147Greig, Don (PS) Software management systems for jewel-

ers, 166–167Gruber, Martin (P) Manufacturing and marketing diamond

jewelry in the 21st century, 116–117Grunstein, Laurence (P) Marketing opportunities in the

21st century, 126–127Gübelin, Thomas (P) The leadership role of fine jewelry

in the 21st century, 120Günther, Detlef (PS) Laser ablation–inductively coupled

plasma–mass spectrometry: A new way of analyzinggemstones, 160–161

Gurney, John J. (FS) Changes and new developments inAfrica, 34–36

HHaas, Eli (FS) The diamond distribution system, 52; (WR)

Branding, 130–131Häberli, Sabine (PS) Shedding a new light on medieval

darkness, 161–162Hänni, Henry A. (FS) Fissure-filled emeralds and their

detection, 93–94; (PS) Fissure fillings in emeralds: Acomparison of different identification methods, 146–147

Hansawek, Rak (PS) Kanchanaburi sapphires and theirreaction to heat treatment, 147–148

Hansen, Niels Ruddy (WR) Diamond cut, 134Hasenfeld, Hertz (FS) The New York diamond market,

44–45Haske, Martin (PS) Detection of irradiated diamonds,

157–158Hemphill, T. Scott (PS) Exploring cut and diamond

appearance with the virtual diamond, 158–159Hofer, Stephen (PS) Describing diamond colors with com-

mon names, 159Htun, Han (PS) Identifying sources of Burmese rubies,

148–149Hucker, Douglas (P) Critical issues in the 21st century,

124–125Hunter, Jeff (PS) Educating the jewelry industry about lab-

created moissanite, 174

IIonescu, Corina (PS) Gem vesuvianite and grossular from

the Vata area, Apuseni Mountains, Romania, 139Izhakoff, Eli (P) Critical issues in the 21st century, 124–125

JJacques, Susan (P) Marketing opportunities in the 21st

century, 126Janowski, Benjamin (FS) The U.S. diamond industry, 56–57Janse, A. J. A. “Bram” (FS) Diamonds from Australia,

37–39; (P) Diamond production in the 21st century,114–115

Johnson, Andrew (P) Marketing opportunities in the 21stcentury, 126–127

Johnson, Mary L. (WR) Disclosure, 136; (PS) Character-ization of some emerald filling substances, 149–151

Joseph, Ralph (WR) Appraisals, 132

KKanda, Hisao (PS) Colors of high-pressure synthetic dia-

monds, 174–175Kane, Robert E. (FS) Ruby and sapphire occurrences

around the world, 60–61Kato, Hidetaka (FS) Today and tomorrow in the Japanese

jewelry market, 58Kay, Scott (P) Marketing opportunities in the 21st century,

126–127; (WR) Branding, 130–131Kennedy, Henry F. (PS) Publicity and profits vs. advertise-

ments and expenses, 167Kiefert, Lore (PS) Red taaffeite, 151Knight, Steven (PS) Building a profitable appraisal business,

167–168Koethe, Sarabeth (PS) Natural abalone pearls: Rare organic

gems, 171–172

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GEMS & GEMOLOGY FALL 1999 179

Koivula, John I. (Special Session) see Moses, T. M.Krzemnicki, Michael S. (PS) Bluish green, light green, and

pink synthetic chrysoberyl, 175Kwiat, Sheldon (P) Manufacturing and marketing diamond

jewelry in the 21st century, 116–117

LLagos, Steven (WR) Branding, 130Larson, William (FS) Review of gem localities in North

America, Russia, and Southeast Asia, 64–65Latendresse, Gina (P) Marketing pearl jewelry in the next

millennium, 122–123; (PS) “A pearl circus”: Origin,variety, and enhancement of pearls, 172

Levinson, Alfred A. (P) Diamond production in the 21stcentury, 114–115

MMachida, Hisashi (P) The role of laboratory-grown materi-

als in the 21st century, 118Maerz, Jürgen J. (PS) Platinum—The metal of the millen-

nium, 170Magner, Stephen (FS) Perspective of a high-end jeweler,

107–108Manning, Gerald (FS) Snake oil or cedar oil: Have your

colored stones been enhanced, and are you telling thetale? 70

Marquart, James (P) Critical issues in the 21st century, 124Martin, Anna (P) Manufacturing and marketing diamond

jewelry in the 21st century, 116Mârza, Ioan (PS) The Techereu gemological field, 151Mastoloni, Frank (P) Marketing pearl jewelry in the next

millennium, 122Mattice, Gabrièl (PS) Demantoid garnet from the Ural

Mountains, Russia, 151–152McClure, Shane F. (Special Session) see Moses, T. M.; (FS)

Identification challenges of the new millennium, 86–87McKenzie, Liz (PS) Cultured abalone mabé pearls from

New Zealand, 172Miller, Anna (WR) Appraisals, 132; (PS) Jewelry appraising:

Professionalism in the new millennium, 168Misiorowski, Elise B. (FS) Early 20th century jewelry,

99–100Mitchell, M. A. (FS) The Indian perspective: Challenges

and new developments, 47–48Molina, Al (WR) Branding, 130Morris, Robert Lee (FS) Adapting classic designs to mod-

ern markets, 103Moses T. M., Shigley J. E., McClure S. F., Koivula J. I., and

Van Daele M. (Special Session) Observations on GE-pro-cessed diamonds: A photographic record, 14–22

Mouawad, Fred (P) The importance of electronic net-working in the 21st century, 128–129

Muller, Andy (FS) Cultured South Sea pearls, 77–79

NNaftule, Roland (WR) Disclosure, 136–137Nassau, Kurt (FS) An overview of gemstone treatments,

95–96; (P) The role of laboratory-grown materials inthe 21st century, 118–119

Niklewicz, Danusia (PS) The Gem & Mineral Council, 161

OOkoemov, Uri (P) Diamond production in the 21st centu-

ry, 114–115Ottaway, Terri (PS) Dynamic Earth: Inco Ltd. Gallery of

Earth Sciences, 162Owens, Philip A. (PS) Infrared spectroscopy as a discrimi-

nant between natural and manufactured glasses, 152

PPaget, Douglas (FS) Canadian diamond production: A gov-

ernment perspective, 40–42Palmieri, Don (WR) Appraisals, 132–133Panjikar, Jayshree (PS) Rudraksha—A spiritual organic

gem, 152Peach, James L. Sr. (FS) Freshwater pearls: New millenni-

um—New pearl order, 75Pearson, Carl (FS) The effect of international economic

developments on the diamond market, 50Perret, Etienne (PS) Designing colored diamond jewelry,

170–171Picton, James (P) Diamond production in the 21st century,

114Poli, Leopoldo (P) Marketing opportunities in the 21st

century, 126–127Pruwer, Marcel (FS) The Antwerp diamond sector, 46

RRapaport, Martin (FS) Diamond economics: A dynamic

analysis, 51; (P) The importance of electronic network-ing in the 21st century, 128

Reinitz, Ilene M. (FS) Identifying diamond treatments,88–89; (WR) Diamond cut, 134–135

Roberto, Francesco (WR) Disclosure, 136Root, Kirk (WR) Appraisals, 132–133Rossini, Ralph (P) Marketing pearl jewelry in the next

millennium, 122–123Rossman, George (WR) Disclosure, 136–137Rothman, Glenn (WR) Branding, 130–131Rothschild, Gerald L.S. (FS) The developing market in

China, 59Rothwell, James (P) Diamond production in the 21st cen-

tury, 114–115Runci, Matthew (P) Critical issues in the 21st century, 124

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SSamuel, Joseph H. Jr. (FS) The marketing of period jewel-

ry during the 20th century and into the next millenni-um, 101–102

Sauer, Daniel André (FS) South America: The birth of anew jewelry-consuming market, 71–72

Scarisbrick, Diana (FS) Chaumet—A very Parisian jeweler,97–98

Scarratt, Kenneth (FS) The identification of ruby and sap-phire, 82–83

Schmetzer, Karl (FS) Distinguishing natural from synthet-ic emeralds, 84–85

Schnitzer, Shmuel (FS) Diamond manufacturing and distri-bution: The Israeli perspective, 49

Schoeckert, Kurt P. (PS) Is Ideal really ideal? How the cutaffects the beauty of diamonds, 159–160

Schwarz, Dietmar (FS) Emeralds—Recent developmentsand projected changes in supply, 62–63

Shank, Sherris Cottier (PS) Gem artists of North America:The renaissance of modern lapidary art, 171

Shigley, James E. (Special Session) See Moses, T.M.; (FS)The ongoing challenge of diamond identification,80–81; (PS) California benitoite: A proven mineablereserve and new gemological data, 152–153

Siripant, Sakda (PS) A color communication system forgemstones, 162–163

Shor, Russell (FS) Retail markets and the growing globalsignificance of branding, 53–54

Smirnov, Sergey (PS) New hydrothermal synthetic gem-stones from Tairus, Novosibirsk, Russia, 175–176

Sobolev, N. V. (FS) Russian diamond sources, 43Speisman, Robert (WR) Diamond cut, 134–135Stuller, Matthew (FS) Meeting customer needs, 111Suleman, Abe K. (FS) Colored stone sources in Africa and

Madagascar, 66–67Suwa, Yasukazu (FS) Will there be another chance for busi-

ness in the Asian colored stone jewelry market? 68–69

TTakahashi, Koichi (P) Marketing pearl jewelry in the next

millennium, 122Tashey, T. E. Jr. (PS) Gem quality index (GQI), 163–164Taylor, Matthew C. (PS) The first California gem tourma-

line locality, 153–154Tempelsman, Maurice (Valedictory Address) Globalization

and technology: Dynamic forces for the 21st century,2–7

Tenhagen, Joseph (WR) Appraisals, 132–133Tian, Liangguang (PS) Sapphires from Shandong, China,

154Tivol, Thomas (FS) Can a family business compete in the

21st century jewelry market? 112Tretyakova, L.I. (PS) Reflection and scattering spec-

troscopy for nondestructive gem identification, 163

UUnderwood, Thom (PS) Surface-enhanced topaz, 154–155

VVan Daele, Mark (Special Session) see Moses, T. M.Von Sternberg, Richard (WR) Diamond cut, 134–135Voorhees, Jacques (P) The importance of electronic net-

working in the 21st century, 128

WWagner, Randall M. (PS) What does that emerald look

like? How to communicate color and appearance acrosscontinents, 168–169

Wan, Robert (FS) The Tahitian cultured pearl: Past, pre-sent, and future, 76

YYurman, David (FS) Creating a luxury brand, 104