• Industry Analysis: Consumers Losing Confidence, But Still Spending
• From Gems & Gemology: Most Valuable Article Award Winners Chosen
• GIA Announces 2009 Gemological Research Conference Advisory Committee
• Donors Gift Rare Gemstones, Art in Tucson
• New, Reactivating Alumni Chapters Span the Globe
• Brush Up on Your Executive, Marketing Skills
• From GIA Education: Laser Welding Offers High-Tech Jewelry Manufacturing,
  Repair Techniques
• Reserve Your Seat in One of GIA's Lab Classes
  

Industry Analysis: Consumers Losing Confidence, But Still Spending

Tiffany & Co.'s fourth-quarter results offer an interesting perspective on the current economy. The 1% drop in same-store U.S. sales for the quarter ending Jan. 31 shows that consumer spending has slowed, but hardly dried up.

The Tiffany statement reported a higher per-transaction average, suggesting that top-end diamond and designer jewelry pieces held up well. Net sales in the U.S. grew 4% to $527.9 million. International retail sales rose 21% to $422.56 million in the quarter, boosted by a 40% rise in the Asia-Pacific region, excluding Japan, and 29% in Europe.

For the fiscal year ending Jan. 31, 2008, Tiffany's net sales grew 14.7% to $2.93 billion, while comparable-store sales increased 8% over the previous year.

The chief challenge faced by Tiffany and retail jewelers around the world is not slowing economies, but how to deal with the lofty prices of precious metals. Retailers who attempt to fully pass on the increases risk deterring consumers who might balk at the price tag or delay purchases in the expectation that prices will drop.

Some retailers have announced price increases -- one reason analysts gave for disappointing Valentine's Day sales -- but few of those increases reflected the full extent of higher metal costs.

AUCTIONS: As prices for top gems soar, the major auction houses are making sure there are plenty of items to tempt the ultra-wealthy.

Christie's is offering a 14.23-ct. rectangle-cut Fancy Intense pink diamond at its April 16 New York auction. The low estimate is $10 million, the high $15 million. The stone is owned by an unnamed jewelry collector who is also selling a diamond necklace that belonged to French Empress Eugénie in the 1850s (estimated at $4-$6 million) and many top Belle Époque, Art Nouveau and Art Deco designer pieces.

Christie's is also offering a 39.34-ct. D-IF cushion-cut type IIa diamond it compares to the similarly shaped Polar Star diamond, a Golconda stone owned by European royalty. ("Golconda" is the term applied to type IIa diamonds mined in India -- primarily the Golconda mine -- during the Mogul era.)

Christie's has several other million-dollar-plus diamonds up for bid at the New York auction, including a 29.91-ct. D-VVS1 cushion cut, and a number of fine emeralds and sapphires. There are far fewer major rubies in this sale than the previous one, with the exception of a 9.71-ct. stone identified as an unheated Burmese, carrying a top estimate of $500,000.

Christie's and Sotheby's have also packed extremely important diamonds and colored gems into their spring Hong Kong and Geneva sales, convinced the money is still there for such pieces.

TRADE: India's government and diamond industry have been waging diplomatic offensives with resource-rich nations in Africa.

India's Gem and Jewellery Export Promotion Council, accompanied by the country's minister of commerce, is visiting Namibia and Angola this week to discuss "beneficiation" and rough supplies. These diamond-producing countries have been actively pursuing an expansion of cutting operations within their own borders, which India regards as threatening to its 900,000 to 1 million member diamond workforce -- particularly because the polishing operations will likely focus on the larger, more easily worked goods that bring the most profit.

Minister of Commerce Jairam Ramesh said India must assist African nations' efforts to "move up the value chain." He emphasized that in the future India will find it difficult to source rough diamonds unless it demonstrates to African nations that it will collaborate actively in value addition within these producing countries.

Several key colored-gem producers also made a strong pitch to India's mining industry at a major Indo-African conference recently. Representatives of the Democratic Republic of the Congo, Mozambique and Zambia noted that India's mining companies were welcome to compete for "sensible" exploitation of their resources.

Mining was a key topic at the India-Africa Business Conclave, held March 19-21 in New Delhi. The conference, involving 20 African nations, was a precursor to the Indo-African summit conference to be held April 8.

MACRO: Consumer confidence took another sharp decline in March, according to the Conference Board Consumer Research Center. The Confidence Index stands at 64.5, down from 76.4 in February, and the Expectations Index declined to 47.9 from 58.0. The Present Situation Index sank to 89.2 from 104.0 in February.

"Consumers' confidence in the state of the economy continues to fade and the Index remains at a five-year low," said Lynn Franco, director of the Research Center. "The decline in the Present Situation Index implies that the pace of growth in recent months has weakened even further. Looking ahead, consumers' outlook for business conditions, the job market and their income prospects is quite pessimistic and suggests further weakening may be on the horizon. The Expectations Index, in fact, is now at a 35-year low, a level not seen since the Oil Embargo and Watergate."

Slowing retail sales are also taking a toll on U.S. shopping malls. The International Council of Shopping Centers predicts that 5,770 mall stores will close this year, the highest number in four years.

Russell Shor
Senior Industry Analyst

[return to top]

Mary Johnson's study of emerald filler durability was voted G&G's Most Valuable Article of 2007. One of the test samples was this 0.74-ct. emerald filled with Araldite 6010, which showed an obvious change after 30 minutes in the ultrasonic cleaner.

From Gems & Gemology: Most Valuable Article Award Winners Chosen

The editors of Gems & Gemology (G&G) are pleased to announce the winners of this year's Dr. Edward J. Gübelin Most Valuable Article Award, as voted by the journal's readers. The winners' photos and brief biographies will be featured in the upcoming Spring 2008 issue of G&G.

The first-place article was Dr. Mary Johnson's "Durability Testing of Filled Emeralds" (Summer 2007), which focused on a long-term study of the stability and durability of nine emerald-filling substances to several common conditions of wear and cleaning. Formerly manager of research and development at GIA, Johnson is the principal of Mary Johnson Consulting in San Diego, California.

Second place went to "Serenity Coated Colored Diamonds: Detection and Durability" (Spring 2007). In this article, Andy H. Shen and co-authors examined a new multilayer coating technique that produces evenly distributed, natural-looking fancy colors on diamonds. Dr. Shen is a research scientist at the GIA Laboratory in Carlsbad, California.

The third-place winner was "Latest-Generation CVD-Grown Synthetic Diamonds from Apollo Diamond Inc." (Winter 2007) by Wuyi Wang et. al. This article reported on Apollo's latest production, which showed significant improvements in size, color and clarity. Dr. Wang is manager of research projects at the GIA Laboratory in New York.

Congratulations to Dr. Edward Blomgren of Owls Head, New York, whose ballot was drawn from the many entries to win a three-year subscription to G&G and copies of two Gems & Gemology in Review volumes, Synthetic Diamonds and Colored Diamonds.

To order any of these issues or to subscribe to G&G, visit www.gia.edu/gemsandgemology or contact Circulation Coordinator Debbie Ortiz at dortiz@gia.edu. Call toll-free (800) 421-7250, ext. 7142. Outside the U.S. and Canada, call (760) 603-4000, ext. 7142.

[return to top]

GIA Announces 2009 Gemological Research Conference Advisory Committee

A broad, international spectrum of individuals from academia, the laboratory community and the gem and jewelry trade have agreed to serve on the Advisory Committee for GIA's second Gemological Research Conference (GRC), planned for Aug. 21-23, 2009.

GRC Advisory Committee members will help with program planning, review abstracts and disseminate information about the conference. Some may also serve as presenters.

The committee includes representatives from most of the major gemological labs in the U.S., Europe, the Middle East and Asia, as well as gem dealers who are active in gemological research.

Among the museums represented are the Smithsonian Institution, the American Museum of Natural History, the Natural History Museum of Milan and the Netherlands National Museum of Natural History.

The committee also includes researchers from the De Beers DTC Research Centre, the Russian Academy of Sciences and the U.S. Naval Research Laboratory. Researchers from major universities in the U.S., Canada, Thailand, United Kingdom and France will also participate in the committee.

"We are pleased and gratified to have secured the assistance of such a diverse and distinguished group," said Dr. James Shigley, GIA's distinguished Research fellow and co-chair of the GRC. "The evolution of gemology and the challenges of new treatments and synthetics require a broad-based, multidisciplinary approach. The input and experience of our Advisory Committee members will ensure a rich and rewarding program for GRC 2009."

The three-day event will take place at the Town & Country Resort and Convention Center in San Diego, California. The dual-track program will cover numerous technical areas relevant to modern gemology. Track 1 deals with topics such as gem treatments, synthetics and simulants, gem localities, the geology of gem-forming environments, diamond and colored stone identification, inclusions and gem characterization technology. Track 2 features subjects such as pearls and organic gems, color description/grading and appraising, jewelry manufacturing technology, market research and analysis, fair trade and environmental issues, jewelry history and gems in cultural heritage, and gem pricing.

"The sessions at the 2009 GRC will cover an even broader range of subjects than the 2006 conference, while upholding the same rigorous standards of technical information," said Brendan Laurs, co-chair of the event and editor of GIA's professional journal, Gems & Gemology.

Field trips to gem pegmatite mines in San Diego County will round out the conference.

Abstracts will be accepted beginning Sept. 1; the final deadline for submissions is
March 1, 2009.

As in 2006, travel grants will be available for presenters who demonstrate appropriate need.

Click here to see a complete list of the 2009 GRC Advisory Committee. For more information on the 2009 GRC, visit www.grc2009.gia.edu or e-mail grc2009@gia.edu.

[return to top]

"Angel," cut by gemstone artist Thomas Trozzo, won honorable mention in the "Pairs and Suites" category in the 2006 AGTA Cutting Edge Competition. Photo by Robert Weldon.

Donors Gift Rare Gemstones, Art in Tucson

If Tucson is all about show and tell, then a select few take it a step further when they donate their treasures to GIA. "Our visitors are so eager and proud to show us what they have when they stop by the booth," said Kimberly Vagner, project manager of In-Kind Gifts. "And we are thrilled when they say they want to donate pieces to our Education programs and Museum collections."

Take intrepid traveler Dudley Blauwet, who speaks several languages and treks to the tops of mountains around the world to collect rare and unusual gemstones. Many of his finds have been documented in Gems & Gemology and, in fact, Blauwet said, he's used some of those articles to help him buy the stones he donated to GIA at this year's Tucson gem and mineral shows. They include: kornerupine, which was found in the Ratnapura area of Sri Lanka; clinohumite from Tan Morogoro, Tanzania, found near a big extinct volcano, according to Blauwet; a cat's eye scapolite, tourmaline and unheated, natural tanzanite, all from Tanzania.

"Dudley has an amazing eye for gemstones," said Terri Ottaway, curator of Collections for the GIA Museum. "His gifts offer us a glimpse into little-known and hard-to-get-to areas of the world."

Gemstone artist Thomas Trozzo said he donated a duo of cut stones titled "Angel" because he is grateful for what the Institute has done for the advancement of the gemstone industry. Trozzo said his piece was inspired by the flame on a candle that he wanted to depict in a gemstone. The two faceted stones -- a triangular tourmaline and a circular citrine -- fit together like pieces of a puzzle to form the shape of an angel. Vagner calls the piece "innovative and unique."

Zultanite Gems, LLC, a company based in Fort Lauderdale, Florida, that is responsible for the exclusive promotion and marketing of zultanite, donated 90 cut and one rough specimen of zultanite for use in GIA's Education programs. "Right now, when a consumer takes a piece of zultanite to a store for evaluation or alteration, they don't even know what it is," said Jim Fiebig, global sales director for Zultanite Gems, LLC. "GIA will be instrumental in properly educating jewelers all over the world about this new gemstone that is so incredibly rare."

[return to top]

New, Reactivating Alumni Chapters Span the Globe

GIA welcomed 32 new and six reactivating alumni chapters worldwide in recent months, a trend the Alumni Association hopes will continue.

"It's wonderful to see so many new officers step up to the plate and create -- and in some cases, reactivate -- a chapter in their area," said Rose McKenna, manager of the GIA Alumni Association. "These new chapters create a place where our grads can connect with one another and connect with GIA."

Marielle de Spa said she was pleased to have so much support from the Alumni Association as she worked to form a Nashville, Tennessee, chapter. "They have been very proactive in making sure the first meeting gets organized in a timely fashion and in offering any support they may be able to bring to the process," de Spa said.

The Alumni Association provides interested members with a 12-page Quick Start Guide to help them get started. Three simple steps is all it takes and, from there, members can refer to the guide for chapter responsibilities and guidelines, information on awards and important contacts and Web site links.

New chapter officers also receive a package that contains education materials, a list of available speakers for meetings and possible auction items they can use to start funding for their chapter.

Mian Haider Saeed, a Graduate Gemologist (G.G.) residing in the United Arab Emirates, said the process he went through to establish a chapter in Dubai was "straightforward and simple."

"My humble advice to my fellow alumni is to waste no time and to start a chapter immediately," he said. "The Alumni Association has put in a lot of effort to assisting chapters to go online around the world."

Selden Morgan has been a member of the Washington, D.C., chapter for years, but was tired of making the hour-plus drive to meetings from her home in Baltimore, Maryland. She was pleased to find out that the Alumni Association would send an e-mail to all the graduates in her area to alert them of the new chapter she wanted to start closer to home.

"Education is such an important aspect to the success of our careers. I feel the regular meetings, with continuing education as one of the main goals, would help the consumers of jewelry in the area as well as the members in their personal growth," said Morgan, a G.G. and Graduate Jeweler diploma holder.

McKenna encourages anyone interested in establishing a chapter in their area to contact the Alumni Association at (760) 603-4145 or e-mail alumni@gia.edu. More information can also be found on the Alumni Association Web site.

[return to top]

Dr. David McKinney (left) will present the Executive Training Program seminars in London and Los Angeles, and Dr. Tim Malone (right) will present "21st Century Marketing." Photo credits: GIA file photo (McKinney), Melissa Jacobs (Malone).

Brush Up on Your Executive, Marketing Skills

Training for the Aspiring Executive

Stay up-to-date and competitive in today's rapidly changing global marketplace with the help of the GIA School of Business' Executive Training Program (ETP). The program is designed to teach jewelry industry professionals new skills they can use to develop and manage a jewelry business. Information and research for the ETP is gathered from the jewelry industry and the business and academic worlds. Topics covered in the program include leadership skills, effective business strategies and merchandising tactics.

"Once you stop learning, you stop knowing how to adapt to the industry's fast-changing business environment," said Dr. David McKinney, an associate professor for GIA's School of Business, who will teach two ETP programs this April.

Click here to find out more about GIA's Executive Training Program.

Plan to attend one of the following ETP seminars:

April 7-11: GIA London, Dr. David McKinney
Tel: 44 20 7813 4321
E-mail: info@gialondon.co.uk

April 14-18: GIA Los Angeles, Dr. David McKinney
Tel: (866) 702-2088 or (310) 670-2100
E-mail: laedu@gia.edu

May 5-15: GIA New York by Giovanni Valencia, G.G., M.B.A.
Tel: (800) 366-8519 E-mail: nyedu@gia.edu

Learn to Think Like a 21st-Century Marketer

It's critical for business owners to understand the value of marketing in today's society. The smart business person knows that marketing is a reflection of a culture's values, lifestyles and social environments and adapts his or her plans to mesh with them.

"It's crucial that a jewelry business gain its customers' trust and loyalty. This course will address digital tools for retailers, wholesalers and manufacturers to improve their competitive advantage and customer relations by utilizing cutting-edge marketing strategies that inspire consumer confidence, increase sales and encourage their clients to return over and over," said Dr. Tim Malone, associate professor for GIA's School of Business.

GIA's Special Topics course, "21st Century Marketing," will address the digital age and review new strategies and tools that marketers are using in today's highly competitive marketplace. Topics will include e-commerce, e-mail marketing and Internet marketing.

Students can apply online for the ETP and the Special Topics course at https://www.gia.edu/Education/ApplyOnline. Or call (800) 421-7250, ext. 4001; if calling outside the U.S. or Canada call (760) 603-4001

[return to top]

GIA instructor Mark Maxwell resizes a ring using a state-of-the-art laser welder. Photo by Valerie Power.

Very little heat is generated around the weld point when laser welding, which allows for great maneuverability and accuracy. Photo by Valerie Power.

From GIA Education: Laser Welding Offers High-Tech Jewelry Manufacturing, Repair Techniques

The speed and accuracy of laser welding has made it an increasingly popular jewelry manufacturing and repair method in recent years. Bench jewelers across the globe have taken advantage of its benefits and incorporated it into their repertoire to assemble jewelry lines, resize rings, re-tip prongs, work with heat-sensitive stones and even repair eyeglasses. The process makes it possible to produce strong joints and weld with incredible speed and accuracy; it is a convenient and cutting-edge alternative to traditional torch methods.

Laser, an acronym for "Light Amplification by the Stimulated Emission of Radiation," is a sharply focused light beam that can be used to melt a tiny area of metal and join similar or dissimilar alloys such as gold, platinum, silver and titanium. The beam provides a concentrated heat source that creates strong and precise welds.

Laser welding offers many advantages that make it a valuable tool for jewelry manufacturers, but most importantly, it's easy to do. You sit comfortably at your workstation, insert your hands into the forearm entry ports and hold the jewelry piece in the welding chamber. You view the piece through a binocular stereomicroscope and control the beam diameter, power level and laser pulse length, depending on the type of metal you are welding. Internal crosshairs help you easily align the jewelry parts with the laser beam at the correct location. Then you simply depress a foot pedal to trigger each fixed laser pulse as you move your piece as needed.

The development of this "free-moving" concept was critical in making laser welding practical for jewelry manufacturing. In traditional soldering methods, the jewelry item is stationary and the heat source is free-moving. Having the laser beam stationary gives you unlimited ability to rotate and maneuver your jewelry piece into position.

Laser welding is also very efficient. The sharp, focused laser light beam forces metals to melt and cool rapidly, which makes it possible for you to complete soldering and welding jobs in mere milliseconds. And since the laser welding process doesn't require fire coating to protect the metal's surface, there's no need for time-consuming acid baths that are typically used in traditional torch soldering.

There's very little heat generated around the weld point, so you can maneuver complicated jewelry items and access difficult-to-reach areas with pinpoint accuracy. And there's less risk of damaging heat-sensitive gemstones, hand engravings, ceramics or other complex jewelry articles -- not to mention your fingers.

The range of laser welding applications in the jewelry industry is expansive -- from assembling luxury necklace and earring suites to refilling casting porosity -- and the price of many laser-welding systems has decreased in the past few years. Lease options are also available, making them even more attractive for jewelers who want to use the latest technology to streamline their business practices.

GIA, recognizing the usefulness of this cutting-edge process for its students, provides hands-on instruction on state-of-the-art laser-welding systems in the Graduate Jeweler program. A two-day laser-welding seminar is also in development. Visit our Web site for more information on the Graduate Jeweler program.

[return to top]

Students gain the practical experience needed to succeed in the jewelry industry in GIA's Lab classes. These classes also provide the perfect opportunity for those already established in the trade to refresh important gemological skills.

GIA Lab classes through April 2008 are as follows:

So what are you waiting for? It's time to put a spring in your career! Apply online, e-mail GIA Education or call (800) 421-7250, ext. 4001, for more information. Outside the U.S., call
(760) 603-4001.

[return to top]