• Industry Analysis: Demand for Rough Diamonds Remains High
• From Gems & Gemology: Unusual Glass Imitation of Rubellite
• Check Out GIA at JCK -- Booth 12027
  
• Find a GIA Lab Class in a City Near You

Industry Analysis: Demand for Rough Diamonds Remains High

Demand for rough diamonds is still very strong, despite the softening retail market, as diamond manufacturers seek to keep their operations going at high capacity.

Reports from the De Beers Diamond Trading Company's (DTC) May sight, which totaled more than $650 million, noted that price increases were concentrated in higher-clarity goods, traditionally an Asian staple. In contrast to previous price increase announcements, the DTC did not disclose an average hike for this sight, but said rough costs overall had gone up 8.5% since January.

Diamond industry analysts -- noting the especially sharp rise of larger, better-quality goods -- commented that DTC goods were still less expensive than comparable rough from suppliers such as Alrosa, BHP and Rio Tinto. Dealers also reported that Antwerp rough traders were paying premiums of up to 25% for DTC rough, especially for goods that will polish out above 2 ct.

Analysts said the rapid growth in Chinese jewelry sales this year -- 41% in April, according to the country's National Bureau of Statistics -- was one reason for the continued strength of rough demand.

TRADE: Despite several well-publicized robberies, crime against retail jewelers fell dramatically last year, though off-premises attacks on traveling salespeople and trade shows increased.

The Jewelers Security Alliance (JSA) reported that dollar losses resulting from criminal acts totaled $97.1 million in 2007, down 11.9% from the previous year. This was despite the steep increase in the price of gold.

On-premises losses were $56.6 million, down more than $20 million from the previous year. The number of on-premises attacks declined, with 1,114 reported in 2007, against 1,267 in 2006. Most importantly, there were no industry fatalities last year.

Meanwhile, off-premises losses rose $7 million last year, with attacks increasing from 155 to 177. JSA noted that the surge in off-premises attacks was due primarily to increased activity of professional theft rings, while the number of "grab and run" incidents sharply declined.

Terrorists detonated eight bombs Tuesday in the old city of Jaipur, India, including the Johari Bazaar, the country's historic gem and jewelry trading center. Police cordoned off the entire city center within minutes after the explosions.

Indian press reports estimated some 61 people were killed and 200 injured by the blasts, which went off about 7:40 p.m. Tuesday. Most of the injuries were at the Hanuman Temple, which was crowded with evening worshippers. Preliminary reports said family members of at least one jeweler were killed in the blast and several others were injured. The city's gem trade has been operating around the Johari Bazaar for several hundred years.

A. S. Gill, police chief in the state of Rajasthan, said it was "obviously a terror attack." Police sources said the attack was meticulously planned, with all the blasts set off in quick succession. It was the first terrorist bombing in Jaipur.

RETAIL: The first quarter of 2008 saw Blue Nile, the largest Internet diamond and jewelry retailer, post its smallest sales increase since going public four years ago. The company announced that sales were up 3.8% to $70.5 million during the first quarter, ending March 31, compared to the same period of 2007. That quarter had seen a 34% increase in sales. A company statement said its second-quarter expectations ranged from a 0% to 5% increase in dollar volume.

Signet Group, parent company of Kay Jewelers and Jared the Galleria of Jewelry, saw its U.S. same-store sales decline 4.7% for the quarter ending May 3. Sales in the United Kingdom, however, rose 5.1%, partially offsetting the U.S. fall. Signet CEO Terry Burman noted that the drop in U.S. sales "reflected a difficult trading environment" and the fact that the company raised prices in February and March to offset higher gold and diamond costs.

Zale Corp. had its largest sales increase in several quarters, thanks to an aggressive inventory clearance. Same-store sales grew 5.8% for the quarter ending April 30, compared to the same period last year. Earnings totals, however, will not be available for several weeks. Analysts expect them to decline because of aggressive discounting of old merchandise. Zale's revenue is still running 2.4% behind fiscal 2007 for the first three quarters.

AUCTIONS: While retail slows, Christie's continues to bet on the top end of the market. Its May 14 Geneva sale saw a 13.39 ct Fancy Intense blue diamond sell to a private buyer for $8.87 million ($663,000 per carat) and a 21.40 ct Fancy Vivid yellow diamond change hands at $3.17 million ($148,000 per carat). A large emerald, Fancy yellow diamond and natural pearl sautoir (necklace) brought $5.76 million, while a complementary brooch sold for $4.46 million.

The Christies' May 28 Hong Kong auction will feature more than a dozen pieces expected to sell in excess of $1 million. These include a 101.27 ct F-VVS₁ kite-shaped diamond mounted in a tiara, expected to bring $6.5 to $7 million; two matching jade cabochons, expected to bring $2.3 to $3.2 million; and several colored diamonds.

The Hong Kong auction also will feature more large, high-quality emeralds than any sale in a number of years. Of particular interest is a pair of earrings set with Colombian emeralds -- 9.12 and 8.84 ct -- owned by the Romanovs, Russia's last royal family. The earrings are expected to bring $1.5 million, though some dealers believe they will fetch even more because of their provenance.

Russell Shor
Senior Industry Analyst

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Figure 1. This 30.12 ct piece of faceted glass was sold as rubellite. The elongated straight lines are gas bubbles. Photo by Blanca Mocquet.

Figure 2. This side view of the sample reveals that the glass is made up of colorless and vivid pink cylindrical layers. Photo by Blanca Mocquet.

From Gems & Gemology: Unusual Glass Imitation of Rubellite

Dr. Benjamin Rondeau of the University of Nantes, Dr. Emmanuel Fritsch of the Institut des Matériaux Jean Rouxel, and Yves Lulzac and Blanca Mocquet, both of the Centre de Recherche Gemmologique Association (CRG) Jean-Pierre Chenet, all located in Nantes, France, submitted the following report to Gems & Gemology's Gem News International section:

We recently examined a 30.12 ct gem that had been sold as rubellite in Jaipur, India. When observed face up, it convincingly resembled a color-zoned rubellite (figure 1). When observed perpendicular to its width, however, the specimen had a very uneven coloration, with alternating colorless and vivid pink cylinders (figure 2). The sample was singly refractive (1.47 RI) and had a hydrostatic SG of 2.51. It was inert to long-wave ultraviolet radiation and fluoresced strong chalky blue to short-wave UV. With the microscope, one could see elongated bubbles parallel to the colored cylinders. In some cases, the bubbles were so elongated that they reached both sides of the faceted stone, mimicking growth channels. All these gemological properties were consistent with a manufactured glass.

To determine the exact composition of this glass and look for possible variations between the pink and colorless zones, we analyzed its chemical composition with a JEOL 5800 scanning electron microscope (SEM) equipped with a high-resolution Princeton Gamma Tech IMIX-PTS germanium energy-dispersive detector. The composition was also consistent with a glass. We could not detect any systematic chemical differences between the pink and colorless zones.

To understand the origin of the pink color, we measured the UV-visible absorption spectrum of this glass with a Unicam UV4 spectrophotometer in the 350-800 nanometer range. The main spectral features were a broad band centered at ~540 nanometers and a continuum of absorption regularly increasing from the red to the UV region. A similar broad band has been observed in "ruby glass" of equivalent color, according to our colleague Jean-Pierre Razmoket. Therefore, the coloration was likely due to Mie scattering on submicroscopic metallic inclusions of either gold or copper. We could not observe these features using the SEM because they are likely smaller than the resolution of our instrument. This type of material, in particular the pink central cylinders, is not unlike Venetian glass, which has been widely used for centuries to imitate various gem materials.

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 toll-free at (800) 421-7250, ext. 7142. Outside the U.S. and Canada, call (760) 603-4000, ext. 7142.

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Check Out GIA at JCK -- Booth 12027

From expert laboratory services to world-class education and precision instruments, GIA connects you to the knowledge you need to succeed in a global marketplace. Visit GIA at the JCK show May 30 through June 3 to learn more about products, services and special offers. You can also find out about GIA's Museum Collection and sign up for education seminars.

Booth 12027

GIA Laboratory Services: More Accessible and Faster than Ever

With laboratories, service centers and LabDirect consolidators located in virtually every major gem market in the world, it's never been easier or more convenient to submit items to the GIA Laboratory for grading. And with My Laboratory, you can check job status and grading results and order additional services, around the clock, from anywhere you do business. Rest assured that we will return your items quickly, without compromising the quality and precision you expect from GIA. Stop by to open an account and to find out more about the full range of grading and identification services we offer.

GIA's Retailer Support Kit gives you the tools you need to educate your customers. GIA file photo.

New Retailer Support Program: Public Education Starts at the Counter

Begin a conversation that communicates confidence by educating your customers about the 4Cs and the GIA International Diamond Grading System^TM. GIA offers a number of handy and effective in-store displays, signage and collateral materials designed to help you tell the 4Cs story and let your customers know you carry diamonds graded by GIA. See the new Retailer Support Kit, which includes the tools you need to get ahead and find out how you can order this free kit -- plus a host of other items.

Stop by for a free Education catalog. GIA file photo.

Register for a World-Class Gemological Education

Sign up for any 2009 On Campus Gemology or Jewelry Manufacturing Arts program at the show and pay the 2008 rate. Or, shave $100 off the tuition for any 2008 Lab Class (three days or more) held at a GIA campus in the U.S. Prefer to study at home? Sign up for any Distance Education program and receive a free jeweler's loupe.

Special Savings on GIA Instruments

See gemological instruments in action and take advantage of huge savings. Staff will demonstrate the GIA FacetScan^TM optical scanner, an easy-to-use device that measures diamonds and accesses the GIA Facetware^TM Cut Estimator Database to get an estimated GIA Cut Grade for round brilliants. Save $995 on a FacetScan of your own when you purchase it at the JCK Show.

You can also save hundreds on individual microscopes or consider a package deal at a discounted rate. Purchase the GIA DLScope Trinocular and Color Video Camera Package during the show and save $835. Students will save $270 on GIA's Student Package, a five-piece set that includes GIA's PresentationScope, a Duplex II Refractometer and more. These are the tools that will take you through GIA's Graduate Gemologist Program, and beyond.

Order your set of G&G In Review diamond books.

New G&G Book, Subscription Deal

Treated Diamonds, the third book in the Gems & Gemology In Review series, is now available for $59.95. JCK attendees can order a copy, which is a collection of articles, Lab Notes, Gem News entries and conference abstracts published in G&G from 1938 through 2007. The focus is on color treatments, including coating, irradiation and high-pressure/high-temperature annealing, and clarity treatments in the form of laser drilling and glass filling .

Add the first two books in the series, Synthetic Diamonds and Colored Diamonds, to your order and pay just $150 for all three. Shipping charges are extra for each order.

Want to have GIA's quarterly professional journal delivered to your home? Sign up for a one- or three-year subscription to G&G at the show and receive the new Spring 2008 issue free.

Register with the GIA Alumni Association

Are you a GIA grad looking to stay connected to your fellow alums and the Institute? Don't waste another minute. Stop by the booth to register for the GIA Alumni Association. You'll join the growing number of GIA alumni in the online directory and receive materials that include a membership card and a GIA Alumni Association business card holder for your counter. Once you're a member, you can also sign up to take advantage of GIA's Continuing Education Program and receive GIA publications like The Loupe, GIA Insider and alum.connect.

Mark Your Calendars for Career Fair

Hear more about how you can recruit qualified jewelry professionals at the industry's largest recruiting event, GIA's annual Jewelry Career Fair. Dates are set for July 25 in New York City and Sept. 12 in Carlsbad, California. Register by June 15 and receive free advertising in GIA's annual Program & Resource Guide.

The woven gold snake bracelet, c. 1875 (left), has diamond eyes and coils around the wrist six times. It was given to GIA by Mona Lee Nesseth, G.G. The antique, hand-pierced, floral brooch, set with 173 rose cut diamonds, was given to the GIA Museum's Historical Collection by Del and Bob Noland. Photos by Tino Hammid/GIA.

Booth 34548, AGTA Gem Fair

Museum Exhibit Showcases Value of Gifts

Explore a three-case display that highlights how in-kind gifts enhance GIA's Research, Education and Museum programs May 29 through June 2. Guests will view rough and cut Namibian andradite (garnet) that was featured in the Winter 2007 issue of Gems & Gemology, as well as a variety of rough and cut pink gems similar to those used to test GIA students' gem identification knowledge. An antique Victorian snake bracelet and late-18th century diamond floral brooch stand beside three jewelry renderings by Ambaji Shinde, designer to Harry Winston, to represent GIA's growing Historical Collection.

Your free, limited-edition 2008 GIA Museum Collection Poster, featuring the Sir Ernest Oppenheimer Student Collection of rough diamonds, is also available at the GIA Museum booth.

At-Show Seminars, Presentations and Panels

Don't miss your chance to hear from GIA industry experts as they discuss the latest in gemstone treatments, gemstone photography and laboratory practices:

Labs Panel

May 28: 9-10:15 a.m.
Shane McClure, director of Identification at GIA's Carlsbad Laboratory, joins fellow panelists from leading laboratories for a discussion of practices on descriptive statements and grades for colored gemstones and pearls, including issues of origin, irradiation enhancement and more.*

"Identifying Diamond Treatments"

May 28: 9 a.m. - 12 p.m.
Learn how standard gemological instruments can help you identify the most important and latest commercial diamond treatments.**

"Identifying Ruby, Sapphire and Emerald Lab"

May 28: 1:30-4:30 p.m.
Get up-to-date on rubies, sapphires and emeralds, including their synthetics, recent treatments and the importance of disclosure, during this three-hour lab.**

Robert Weldon will share tips on using your jewelry photography online. Photo by Eric Welch.

"How to Photograph Jewelry for Your Web site: Tips and Techniques"

May 29: 10:45 a.m. - 12 p.m.
Good jewelry photography can be essential to the success of your Web site, whether you use it to share information or transact e-commerce. Affordable tools are available to help you create quality gemstone photos, but you need to use them with skill and a critical eye. Robert Weldon, manager of Photography and Visual Communications at GIA, is an accomplished gem and jewelry photographer whose shots can be found on covers and pages of several trade magazines. He will provide insights gleaned from years of practice and success in conveying both color and life in gems.*

*Admission is free and available to JCK Las Vegas attendees and exhibitors.
**Enrollment is open to JCK attendees and exhibitors for $145; maximum of 30 people in each. To enroll, call (800) 421-7250, ext. 4001. GIA will take enrollments the day of the event at the door, if space is available.

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. Enroll today - space is limited.

GIA Lab classes offered through June 2008 are:

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.

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