• Industry Analysis: South Africa Delays Rough Exports
• From Gems & Gemology: Fluorite Impersonating Blue Color-Change Garnet
• New Scholarship Opportunities for 2009 -- Apply by Oct. 15
• Cuff Links Rule at the 2008 Schuetz Design Contest
• Strong Showing for GIA's West Coast Career Fair, Open House
• From GIA Education: The Rewarding Career of a Bench Jeweler
• GIA Los Angeles Student Workroom Dates
• GIA Lab Classes -- Participate. Practice. Perform.
  

Industry Analysis: South Africa Delays Rough Exports

With U.S. retailers and economists forecasting another slow holiday season -- made worse by hurricanes Gustav and Ike -- the blockage of rough diamond exports by South Africa's newly appointed diamond trading office, the State Diamond Trader, may be a blessing in disguise.

The De Beers Diamond Trading Company announced this week that its Sept. 22-26 sight in South Africa will be delayed one week, with an unstated reduction in allocations, because some rough diamonds have not been cleared for export by the trading office.

In addition, press reports say that the State Diamond Trader, which oversees all the country's rough diamond exports and is mandated to purchase rough for local cutting operations, has been locked in a dispute with a number of smaller diamond mining operations over the right to sell their production by tender (silent auction) instead of the sight system. These firms have not been allowed to export diamonds for several weeks.

South Africa's Diamond Law requires that all miners sell 10% of their in-country production to the Trader's office and an additional 40% to local diamond-manufacturing concerns. The law also levies a 5% duty on rough exports.

De Beers said it had complied with all provisions of the law, and the one-week delay in the sight would allow time for them to obtain the necessary permits. The smaller mining firms, however, which mainly produce larger, higher-quality diamonds, may not find resolution so quickly. They want the State Diamond Trader to bid for the diamonds like any other diamond buyer, not get first right of refusal at prices the Trader's office sets.

Meanwhile, the United Diamond Association of South Africa, which represents local diamond cutting firms -- the very group the country's new laws are designed to benefit -- is planning to sue the State Diamond Trader for losses because of the current paralysis in the country's rough market, since they aren't getting material either.

Adding to these difficulties is the growing murkiness of the country's political atmosphere. The Trader's office, while insisting on its right to purchase 10% of mine production, only has a budget to acquire a fraction of that amount, and the legislature has yet to increase its funding.

At a higher level, South African president Thabo Mbeki may be forced out of office by a faction allied with his rival, Jakob Zuma. Mbeki has generally enjoyed the support of the country's business and mining communities.

Zuma has faced numerous corruption charges over the past four years. This week, a South African court ruled that the charges were brought illegally and called them "a political conspiracy."

Both Mbeki and Zuma belong to the majority African National Congress (ANC) party, which is deliberating whether or not to schedule a "no confidence" vote against the president or call for an early election, which would be scheduled in February.

AUCTIONS: The financial market turmoil may test the intense demand for large, very high quality colorless diamonds whose prices topped the $180,000 per carat mark last spring.

Fancy-color and big diamonds will again dominate at the Christie's Oct. 15 "Jewels: The New York Auction." Topping the sale are two large fancy-color diamonds: a cut-cornered rectangular 7.02 ct GIA-graded Fancy Intense blue estimated to bring $3.5 million to $5 million; and a 5.6 ct GIA-graded Fancy Intense purplish pink pear shape estimated at $2.6 million to $3 million.

The auction will also feature two huge diamonds cut from a 316.15 ct piece of rough taken from De Beers' South African Venetia mine: a 102.11 ct rectangular-cut GIA-graded L-VS₂, and a 70.87 ct rectangular-cut GIA-graded L-SI₁. Christie's has not offered a presale estimate, but a portion of the proceeds from these stones will go to the Diamond Empowerment Fund, which -- among other projects -- conducts educational programs in African nations where diamonds are mined. De Beers christened the rough Ponahalo, meaning vision in the language of the Venda area of South Africa where the stone was found.

In addition, 271 lots comprising "Superb 20th Century Jewels from an American Collection" will also go on the block to benefit the Diamond Empowerment Fund, which is expected to receive some $35 million from the sales.

Other large diamonds at the Christie's auction include a 40.21 ct rectangular-cut GIA-graded D-IF, with an estimate on request, and a 16 ct GIA-graded D-VVS₂ potentially flawless rectangular cut estimated to bring $800,000 to $1 million.

MACRO: Jewelry industry analysts estimate that the holiday season may see an overall sales decline of 5% from last year, with designer pieces and the top end still holding well.

Insurance assessors and retail operators are just beginning to measure the damage caused by Hurricane Ike in the Houston-Galveston, Texas, area. Preliminary reports indicate that, while Galveston and environs were severely damaged, the far more populous Houston metropolitan area could recover fairly quickly.

The recent fall in gas prices did cause a slight decline in August's consumer price index, according to the U.S. Bureau of Labor Statistics. Year-on-year prices, however, were up an average of 5.4%, with food and fuel leading the increases. Economists noted that paychecks have lagged 2.5% behind inflation this year, removing billions of dollars from discretionary spending funds.

Russell Shor
Senior Industry Analyst

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Resembling color-change garnet from Bekily, Madagascar, this approximately 1 centimeter fluorite is violetish blue in daylight (left) and purplish pink in incandescent light (right). Photos by Robert Weldon.

From Gems & Gemology: Fluorite Impersonating Blue Color-Change Garnet

Jim Houran of the Mineralogical Association of Dallas and Gems & Gemology (G&G) editor Brendan M. Laurs prepared the following entry for the G&G Gem News International (GNI) section.

Garnet comes in almost every color, but collectors continue the quest for stones showing a blue hue. This goal seemed within reach in the late 1990s, with the discovery of "blue" color-change pyrope-spessartine from Bekily, Madagascar. These stones commonly appear blue-green in daylight and purple in incandescent light (see "Garnets from Madagascar ...," Winter 1999 Gems & Gemology, pp. 196-201). Yet only a few well-formed garnet crystals have been reported from Bekily (see Summer 2003 GNI, p. 156); most are irregularly formed fragments.

Therefore, one of us (JH) was quite excited about the prospect of documenting a relatively large (1.1 × 1.0 × 0.9 centimeter) well-formed crystal thought to be blue garnet from Madagascar. The gem-quality sample was seen at the 2008 Tucson gem show and loaned by Jasun and Mandy McAvoy of Asbury Park, New Jersey. Its crystal form was similar to the previously published specimens of pyrope-spessartine from Madagascar, and it displayed a color change from violetish blue to purplish pink (see figure).

Although the crystal's form, isotropic optic character and color-change behavior were consistent with garnet, Raman analysis by Karen Chadwick at the GIA Laboratory proved that it was actually fluorite. This was quite a surprise to all involved with this specimen, which apparently had never before been tested. In hindsight, the crystal was remarkably similar -- in its modified cubic crystal form and color -- to some of the color-change Ethiopian fluorites documented in the Summer 2007 GNI (pp. 168-169).

For more on the latest gemological developments from around the world, read the Gem News International section in each issue of G&G. To subscribe, click here or contact circulation coordinator Debbie Ortiz by calling toll-free (800) 421-7250, ext. 7142. From outside the U.S. and Canada, dial (760) 603-4000, ext. 7142.

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Ron Harder, former CEO of Jewelers Mutual Insurance Company, has been honored with a GIA scholarship in his name. Photo courtesy of Jewelers Mutual Insurance Company.

New Scholarship Opportunities for 2009 -- Apply by Oct. 15

Oct. 15 is the deadline for prospective GIA students to apply for scholarships for the 2009 school year. No applications will be accepted after the deadline, so don't miss your chance to earn a world-class gemological education in the new year.

Students have four new scholarships to choose from this year, including the Golden Circle Steve Leibman Scholarship. Members of The Golden Circle Club of New York, an organization formed by returning WWII veterans as a social network for local jewelers, created the scholarship to honor the memory of fellow member Steve Leibman. The scholarship may be used toward a Distance Education Graduate Gemologist (G.G.) program.

"As lifelong members of the jewelry industry, [we] would like to ensure that future jewelers are equipped with all the tools that will continue to elevate the professionalism that exists in the industry today and in the future," says Todd Wolleman, former president of The Golden Circle Club. "[This GIA scholarship] commemorates our friend Steve Leibman, who was one of the nicest people to serve our industry. He had a heart of gold."

The R. Harder Gallery Scholarship, also available for the first time in 2009, is for Wisconsin residents interested in earning a G.G. diploma. The scholarship is funded by the Jewelers Mutual Insurance Company and administered by the Community Foundation for the Fox River Valley Region, based in Appleton, Wisconsin. It honors Ron Harder, former CEO of Jewelers Mutual Insurance, who retired in 2007 after 34 years with the company.

"My hope is that this scholarship can give someone the opportunity to work in a jewelry store, and at some time own one," says Harder, who has lived in the Fox River Valley area nearly all his life.

Also new for next year is the Absolute Brilliance Scholarship, which covers tuition for any On Campus or Distance Education Diamonds course.

"We want to support those hard working, retail sales people who are on the front line every day, and are the true backbone of the jewelry industry," says Dov Lisker of Absolute Brilliance, a supplier of special-order loose diamonds to national chains and independent retailers.

Lucien "Bud" Fluty, vice president of marketing and education for Absolute Brilliance agrees. "Education is our life blood, and we must continue to help educate those in the field."

Prospective students can also apply for the Butterfly of Peace Scholarship, established by Alan Bronstein through the sales of his book, Forever Brilliant. The recipient may use the funds for any On Campus or Distance Education course or program.

You can view a complete list of scholarships available for 2009, including new opportunities for international applicants, or download an application online. Information is also available through e-mail or by calling (800) 421-7250, ext. 4175.

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Cuff Links Rule at the 2008 Schuetz Design Contest

Erik Stewart's "Phoenix," a palladium, "padparadscha" sapphire and gold cuff links and ring set, took first place in this year's George A. Schuetz Jewelry Design Contest. Established by GIA in 1973 in honor of men's jewelry designer George Schuetz, the international competition recognizes the best original designs in men's jewelry and accessories.

"I am so proud of this start in this industry and can't wait to see what will come next," said Stewart, a GIA Graduate Gemologist from Tucson, Arizona. He called his design "Phoenix" because the "warm hues of the 'padparadscha' sapphire and yellow gold infuse new life into the palladium shell."

"The Schuetz competition has become a special contest for new and established designers to be recognized for their innovative designs," said Phillip Weeks, GIA's manager of student financial assistance, who has coordinated the program for 18 years.

Open to all designers, the contest attracted 102 entries this year; the winners were announced this week.

"Designing men's jewelry is a wonderful challenge because it encourages me to redefine elegance from a masculine point of view," said second-place winner Joana Miranda of Milwaukee, Wisconsin. Miranda designed a pair of cuff links in a yin-and-yang pattern.

Stacey Liem's sapphire and platinum cuff links took third place in the competition. "GIA has given me the knowledge and confidence to be the first in my family to pursue a career in the jewelry industry," said Liem, of Carlsbad, California. "I am excited to explore all the facets of what this industry has to offer."

Stewart will receive $500 and a crystal trophy as his first-place prize, while Miranda and Liem each will receive a crystal trophy.

Contestants in the annual Schuetz competition can submit original renderings from April 1 to June 15 each year; judging is complete in August. Contestants may submit only one original color design, which must not have been previously exhibited or offered for sale. Entries are independently judged on overall design, wearability, manufacturability and appeal.

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Strong Showing for GIA's West Coast Career Fair, Open House

Nearly 900 participants networked, mentored or attended job interviews during GIA's 18th annual Jewelry Career Fair at the Institute's Carlsbad, California, campus on Sept. 12.

The daylong event, an opportunity to make connections and land a job in the industry, was held along with GIA's annual Open House. Campus visitors viewed Museum pieces, such as the "Balboa Park Carousel Egg" music box, which is on display at the Institute for the next year, and "Facets of GIA," an exhibit of gems and jewelry that tells the Institute's story.

"The entire day had this wonderful energy you could feel from all of those involved," said Sarah Hatfield, GIA's senior manager of global events and trade shows. "Not only could you see the enthusiasm in the faces of the job seekers, recruiters and industry leaders, but also in those of the families who came to enjoy the Open House and learn more about GIA."

Recruiters from 27 companies, including Tiffany & Co., Saks Fifth Avenue, Movado Group and Iridesse, came to find qualified applicants at Career Fair. The event also featured a powerful lineup of speakers, workshops and seminars.

Kathryn Kimmel, GIA's vice president and chief Marketing officer, welcomed the gathering, pointing out that Career Fair has become the largest recruiting event in the gem and jewelry industry. Donna Phelan, president of the Jewelers 24 Karat Club of Southern California, which co-sponsors the event, described it as a "rare opportunity to pick the brains of the leaders of the jewelry industry."

In addition to coaching and recruiting opportunities, the fair offered panels and workshops, including "Working to Win," "Moving from Dream to Reality," "Starting Your Own Business," "Survival Tactics for New Designers," and a session focused on immigration law.

Matt Runci, president and chief executive of Jewelers of America, and a participant in the "Working to Win" panel, listed the three words he considered critical for career success: people, global and dreams.

"The people you meet today you will work with throughout your careers," Runci said. "While there are brands in our industry, behind those brands are many thousands of entrepreneurs. The business cards may change, but you'll find most of the names stay the same."

The Carlsbad event followed the Institute's New York Career Fair, held July 25.

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Sam Kassar works as a bench jeweler at Petra Fine Jewelry, the store he owns with his family in Mission Viejo, California. Photos by Eric Welch.

Most of a bench jeweler's day is spent working with his or her hands to create or repair beautiful objects.

From GIA Education: The Rewarding Career of a Bench Jeweler

Ever wondered how a bench jeweler spends his or her day? Three of GIA's Jewelry Manufacturing Arts instructors -- who've clocked a combined 69 years at the bench -- say the details of their daily work add up to exciting and rewarding careers.

They recommend a bench jeweler career if you're creative and enjoy working with your hands; if you have a curious mind and a technological bent; if you love gemstones and precious metals; or if you have an interest in art, history, science, fashion, design, mechanics or any combination of these fields. All in all, it's a great career for someone with a lot of interests, they say.

Russ Hyder, manager of Jewelry Manufacturing Arts, says passion and a positive attitude are key to success: "From the moment you enter the store, that positivism propels you as you turn the various equipment on (steamer, pickle pot, ultrasonic cleaner, kiln), open the main gas valves from the tanks to the torch and prepare for what lies ahead." He believes the rewards are endless if you approach every project as a challenge to do your best.

Instructor Douglas Hall emphasizes the importance of organizing and prioritizing. "Usually you'll group similar bench jobs together -- soldering, stone setting, polishing, etc. -- to create economies of scale and production." He says the sequence might be disrupted by any hot turnaround jobs and describes each day, and each shop, as having "its own ebb and flow."

Hall says the job can keep you on your toes and suggests anticipating interruptions and planning accordingly. Schedule delicate, exacting jobs outside the busier times to allow for more concentration. The rush might bring a request for advice or direction about a proposed repair, a custom job or a customer's ideas. You'll also need to schedule time to check repair jobs and write a list of needed items, such as heads, stones, clasps and sizing stock. Place orders for supplies or materials before your vendors close, then shut everything down and get ready to do it all again the next day, he says.

Instructor Jerry Golech believes the most rewarding part of a bench jeweler's job is the sense of accomplishment at completion, especially if it's a complex custom piece or a challenging restoration project.

"You've seen the piece throughout the process in different stages -- perhaps it started as a mere design sketch. You create the various parts, and in the middle of the process, it's sometimes hard to imagine it will ever become something beautiful. It's incredibly rewarding, after the final polish and cleaning, to see this stunning piece of jewelry you've produced."

Hyder says each piece of jewelry is an opportunity to test your ability to solve a problem or create something unique. "Being a bench jeweler brings something new and different every single day."

He offers a simple equation for a career as bench jeweler: artistic talent + technical skill + design + creation = self-fulfillment.

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GIA Los Angeles Student Workroom Dates

GIA's student workrooms give you affordable access to all the equipment and gemstones you need to prepare for your 20-stone final exam. These self-study rooms are also available if you need to take a supervised exam, practice with gemological instruments or complete the practical requirements of your Gem Identification course through Distance Education. GIA alumni who want to refresh their grading and identification skills can use the student workrooms as well.

GIA Los Angeles' workroom services will only be available through Nov. 14. Written exam proctoring is available every Tuesday and Friday; complete workroom hours are available the weeks of Oct. 6-10, Nov. 3-7 and Nov. 10-14. Reserve your space today by calling (866) 702-2088.

Workrooms are also offered on campus in Carlsbad and New York and available throughout the country. For a complete list of student workroom hours and fees, visit student workrooms or call (800) 366-8519, ext. 3063 for New York or (800) 421-7250, ext. 7750 for Carlsbad and other cities.

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Students gain the practical experience needed to succeed in the jewelry industry in GIA's Lab classes. You can take a Lab class on its own, or as a part of your GIA diploma program. These classes also provide the perfect opportunity for those already established in the trade to refresh important gemological skills. Lab classes are offered at each of GIA's campus locations and in various cities throughout the world.

Please note: GIA Los Angeles classes are available only through Nov. 14. Enroll today to take advantage of taking classes there. Space is limited.

GIA Lab classes offered through the end of 2008 are:

Apply online, e-mail GIA Education or call (800) 421-7250, ext. 4001, for more information. Outside the U.S., call (760) 603-4001. For a complete Lab class schedule visit the Education section of the GIA Web site.

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