Title: Peridot Care and Cleaning Guide Abstract: With a little care, peridot will make a fine gemstone for jewelry. - © GIA & Tino Hammid, courtesy 23rd St. Shoppe, Santa Monica

Hardness and toughness
Gem and mineral hardness is measured on the Mohs scale. The numbers are based on the relative ease or difficulty with which one mineral can be scratched by another. But the Mohs scale is deceptive. The steps between the minerals are not evenly spaced. For example, diamond is only one number away, but it’s many times harder than gems in the corundum family.

	Peridot rates 6.5 to 7 on the Mohs hardness scale.
Peridot is 6.5 to 7 on the Mohs scale. It has fair to good toughness. Peridot is durable enough for jewelry wear but should be worn with some care so as not to scratch it or subject it to hard blows that can fracture it.

Stability
Rapid or uneven heat can cause peridot to fracture. Peridot is stable to light but is easily attacked by sulfuric acid, and less easily by hydrochloric acid. It can also be attacked over a long period of time by acid perspiration.

Cleaning
Warm, soapy water is the best method for cleaning peridot. Ultrasonic and steam cleaners are not recommended. Source: GIA @topic:1


Title: Opal Care and Cleaning Guide Abstract: Opal can range from 5 to 6.5 on the Mohs hardness scale.

Hardness and toughness
Gem and mineral hardness is measured on the Mohs scale. The numbers are based on the relative ease or difficulty with which one mineral can be scratched by another. But the Mohs scale is deceptive. The steps between the minerals are not evenly spaced. For example, diamond is only one number away, but it’s many times harder than gems in the corundum family.

Opal hardness is variable depending on its exact composition and formation conditions, and ranges from 5 to 6.5 on the Mohs scale. Its toughness is very poor to fair, making opal a gem that is suitable for jewelry but requires care when wearing so as to not scratch or break the stone.

Stability
Opal is generally stable, but heat from intense light can cause fracture lines called “crazing.” High heat or sudden temperature changes can also cause opal to fracture.  Opal is attacked by hydrofluoric acid and caustic alkaline solutions.

Treatments
Opals can be treated by impregnation with oil, wax, or plastic, and by surface modifications called sugar treatment and smoke treatment.

Cleaning
The only safe way to clean opal is with warm, soapy water.

	With proper care, opal jewelry will provide years of enjoyment. - Courtesy Cody Opal Source: GIA @topic:11


Title: Garnet Care and Cleaning Guide Abstract: Garnets have been among the most popular gemstones in jewelry throughout history. They can provide a lifetime of enjoyment with proper care. - © GIA & Tino Hammid, courtesy of 23rd St. Shoppe

Hardness and toughness
Gem and mineral hardness is measured on the Mohs scale. The numbers are based on the relative ease or difficulty with which one mineral can be scratched by another. But the Mohs scale is deceptive. The steps between the minerals are not evenly spaced. For example, diamond is only one number away, but it’s many times harder than gems in the corundum family.

Depending on type, garnet hardness ranges from 6.5 to 7.5 on the Mohs scale. For example, almandine, pyrope, spessartine, and tsavorite are on the harder side while demantoid is a bit softer.

Garnets have fair to good toughness, making them durable enough for all jewelry styles as long as they are treated with the proper care. Garnets should not be subjected to any hard blows or rough wear.

	Depending on type, garnet hardness ranges from 6.5 to 7.5 on the Mohs scale.
Stability
Garnets are stable to light and chemicals. They can be attacked by hydrofluoric acid.

Cleaning
Warm soapy water is always safe for cleaning garnets. The ultrasonic cleaner is usually safe except for stones that have fractures. Steam cleaning is not recommended.

Treatment and durability considerations:
Garnets might rarely be treated by fracture filling. Only warm soapy water should be used to clean fracture-filled stones. Source: GIA @topic:3


Title: Aquamarine Care and Cleaning Guide Abstract: Aquamarine has been treasured through the ages, and with proper care will give its owner a lifetime of pleasure. - Courtesy Jeffrey Appling

Hardness and toughness
Gem and mineral hardness is measured on the Mohs scale. The numbers are based on the relative ease or difficulty with which one mineral can be scratched by another. But the Mohs scale is deceptive. The steps between the minerals are not evenly spaced. For example, diamond is only one number away, but it’s many times harder than gems in the corundum family.

Aquamarine is 7.5 to 8 on the Mohs scale, so it is a durable gemstone for jewelry as long as it is treated with care to protect it against scratching and hard knocks.

	Aquamarine rates a 7.5 to 8 on the Mohs hardness scale.
Stability
Heat exposure is not recommended for aquamarine, but the color is stable against light exposure. Aquamarine can be attacked by hydrofluoric acid.

Cleaning
Warm soapy water is always a safe cleaning method for aquamarine. Cleaning by ultrasonic and steam cleaners is usually safe unless the stone has liquid inclusions or fractures.
Rarely, aquamarine might be fracture filled. These stones should only be cleaned with warm soapy water. Source: GIA @topic:3


Title: Amethyst Care and Cleaning Guide Abstract: With proper care, amethyst is a beautiful and versatile gemstone for jewelry use. - Courtesy Epstein

Hardness and toughness
Gem and mineral hardness is measured on the Mohs scale. The numbers are based on the relative ease or difficulty with which one mineral can be scratched by another. But the Mohs scale is deceptive. The steps between the minerals are not evenly spaced. For example, diamond is only one number away, but it’s many times harder than gems in the corundum family.

Common substances like sand and dust are composed mostly of quartz, the mineral species that includes the purple variety amethyst. So, while amethyst is a great gemstone for use in jewelry, it should be treated with the proper care to prevent scratching and other damage.

Amethyst rates a 7 on the Mohs scale and has good toughness, so it is suitable for all jewelry types. This includes rings as long as the wearer understands the limits of its hardness.

A ranking of 7 on the Mohs scale means amethyst is a durable jewelry gem as long as proper precautions are followed to prevent scratching.

	A ranking of 7 on the Mohs scale means amethyst is a durable jewelry gem as long as proper precautions are followed to prevent scratching.
Stability
Abrupt temperature changes can cause amethyst to fracture. Some amethyst color can fade with prolonged exposure to intense light. Amethyst can also be damaged by hydrofluoric acid, ammonium fluoride, and alkaline solutions.

Cleaning
Amethyst can be safely cleaned with warm soapy water. Ultrasonic cleaners are usually safe except in the rare instances where a stone is dyed or treated by fracture filling. Steam cleaning is not recommended, and amethyst should not be subjected to heat. Source: GIA @topic:1


Title: Winter 2012 G&G Book Reviews Abstract: “Symphony of Jewels: Anna Hu Opus 1”
By Janet Zapata, Carol Woolton, and David Warren, 167 pp., illus., publ. by Vendome Press, New York, 2012. US$75.00

“Celebrating Jewellery: Exceptional Jewels of the Nineteenth and Twentieth Centuries”
By David Bennett and Daniela Mascetti, 323 pp., illus., publ. by Antique Collector’s Club, Wood- bridge, UK, 2012. US$125.00

“Jewels of the Early Earth: Minerals and Fossils of the Precambrian”
By Bruce L. Stinchcomb, 160 pp., illus., publ. by Schiffer Publishing, Atglen, PA, 2012. US$29.99

“The Queen’s Diamonds”
By Hugh Roberts. 319 pp., illus., publ. by Royal Collection Publications, London, 2012. US$95.00

“Amethyst: Uncommon Vintage”
By H. Albert Gilg, Suzanne Liebetrau, Gloria A. Staebler, and Tom Wilson, Eds., 124 pp., illus., publ. by Lithographie, Ltd., Denver, 2012. US$35.00

To view the full section, download the PDF above. Source: GIA @topic:6


Title: Moonstone Care and Cleaning Guide Abstract: While requiring care to avoid damage, moonstone lends an almost magical sheen to jewelry. - Courtesy Richard Krementz Gemstones

Hardness and toughness
Gem and mineral hardness is measured on the Mohs scale. The numbers are based on the relative ease or difficulty with which one mineral can be scratched by another. But the Mohs scale is deceptive. The steps between the minerals are not evenly spaced. For example, diamond is only one number away, but it’s many times harder than gems in the corundum family.

Moonstone falls between 6 and 6.5 on the Mohs scale. It also has poor toughness.

	Moonstone ranks 6 to 6.5 on the Mohs scale.
Moonstone has two cleavage directions, a trait it shares with the other members of the feldspar family of minerals. Cleavage is a direction of atomic weakness that makes a crystal more prone to breaking. Cleavage can affect durability, so manufacturers usually set moonstone into pendants, earrings, and pins rather than rings, which are more likely to receive knocks and bumps.

	Due to a property called cleavage, a hard blow can break a moonstone.
Stability
High heat or sudden temperature change can cause breaks in moonstone. It is stable to light but is harmed by exposure to hydrofluoric acid.

Cleaning
Warm soapy water is the only recommended substance for cleaning moonstones. Ultrasonic and steam cleaners are never recommended. Source: GIA @topic:1


Title: Sapphire Care and Cleaning Guide Abstract: Corundum in all colors is a highly durable gemstone for use in jewelry. - Courtesy Pauling Blue Fire Diamonds, Carlsbad, California

Hardness and toughness
Gem and mineral hardness is measured on the Mohs scale. The numbers are based on the relative ease or difficulty with which one mineral can be scratched by another. But the Mohs scale is deceptive. The steps between the minerals are not evenly spaced. For example, diamond is only one number away, but it’s many times harder than gems in the corundum family.

Corundum (ruby and sapphire) is relatively hard—9 on the Mohs scale. It has excellent toughness and no cleavage, which is a tendency to break when struck. This makes it a great choice for rings and other mountings subject to daily wear.

	Sapphire ranks 9 on the Mohs hardness scale.

Stability
Corundum is stable under normal wearing conditions, which means it’s resistant to the effects of heat, light, and common chemicals. Boric acid powder will etch the surface of even untreated stones. Fracture-filled, cavity-filled, and dyed stones can be damaged by even mild acids like lemon juice.

Cleaning
Warm, soapy water is always safe. Ultrasonic and steam cleaners are usually safe for untreated, heat-treated, and lattice diffusion treated stones. Fracture-filled, cavity-filled, or dyed material should only be cleaned with a damp cloth.

Treatment and durability considerations
Untreated and even heat-treated sapphire is very durable.

Stones that have undergone lattice diffusion treatment have varying degrees of treated-color penetration. In some stones, the treated color penetrates the entire stone, while in others there’s very shallow penetration. Surface damage or re-cutting can remove the color from lattice diffusion treated stones with shallow color penetration.

Fracture-filled stones have surface-reaching fractures filled primarily with high-lead content glass.  The filler can be damaged through contact with a variety of chemicals. Even relatively mild substances like lemon juice can cause alteration of high-lead content glass.

The number of sapphires filled with high-lead content glass is much lower than the number of rubies. In some cases, the amount of glass filler in a sapphire can be quite extensive. Sapphires treated this way require greater care than untreated, heat-treated, or lattice diffusion treated sapphire. Source: GIA @topic:3


Title: Ruby Care and Cleaning Guide Abstract: Ruby is an incredibly durable gemstone if there are no treatment-related durability concerns. - Courtesy Jan Goodman Co.

Hardness and toughness
Gem and mineral hardness is measured on the Mohs scale. The numbers are based on the relative ease or difficulty with which one mineral can be scratched by another. But the Mohs scale is deceptive. The steps between the minerals are not evenly spaced. For example, diamond is only one number away, but it’s many times harder than gems in the corundum family.

Corundum (ruby and sapphire) is relatively hard—9 on the Mohs scale. It has excellent toughness and no cleavage, which is a tendency to break when struck. This makes it a great choice for rings and other mountings subject to daily wear.

	Ruby ranks 9 on the Mohs hardness scale, so it’s an effective jewelry stone.

Stability
Corundum is stable under normal wearing conditions, which means it’s resistant to the effects of heat, light, and common chemicals. Boric acid powder will etch the surface of even untreated stones. Fracture-filled, cavity-filled, and dyed stones can be damaged by even mild acids like lemon juice.

Cleaning
Warm soapy water is always safe. Ultrasonic and steam cleaners are usually safe for untreated, heat-treated, and lattice diffusion treated stones. Fracture-filled, cavity-filled, or dyed material should only be cleaned with a damp cloth.

Treatment and durability considerations
Untreated ruby and even heat-treated ruby are very durable. Stones that have undergone lattice diffusion treatment have varying degrees of treated-color penetration. In some stones, the treated color penetrates the entire stone, while others have very shallow treated-color penetration. For stones with shallow color penetration, surface damage or re-cutting can remove color.

Today’s fracture-filled stones have surface-reaching fractures filled primarily with a high-lead content glass. There are large numbers of these treated rubies in the market and they require greater care than untreated, heat-treated, or lattice diffusion treated ruby. The glass can be damaged through contact with a variety of chemicals. Even relatively mild substances like lemon juice can cause changes in the high-lead content glass. Source: GIA @topic:3


Title: Bench Tip: Discover the Benefits of CAD/CAM Abstract: CAD/CAM jewelry design rendering of a ring

                      CAD/CAM is a term that describes the two-part process of designing three-dimensional objects on a computer (CAD) and manufacturing them with a computerized machine (CAM). For many years this technology has been essential in making products from tennis shoes to automobiles, and it is rapidly gaining importance in the jewelry industry. In fact, many experts believe CAD/CAM will be the primary process of jewelry design and manufacturing in the near future.

CAD is an acronym for computer-aided design, but early on it stood for computer-aided drafting, since it was essentially a tool to make traditional technical drawings with a monitor and a mouse. As technology progressed, it became possible to create three-dimensional “models” within the computer environment. These “virtual solids” can be rotated and manipulated onscreen and examined from any angle, built up and cut away the same as a physical model, and even weighed before they are constructed.

For the bench jeweler, CAD modeling onscreen has more in common with wax carving than with pencil, paper and watercolors. Once the virtual model is completed to the designer’s satisfaction, the CAD file may be sent to a CAM machine for production. Rhino, Matrix, ArtCam, RhinoGold and Solidworks are some of the widely used 3-D modeling software in the jewelry industry today.

The advantages of CAD/CAM over traditional manufacturing methods are similar to the advantages of a word processor, such as Microsoft Word, over a typewriter. A typewriter produces “one-off” documents that aren’t easily changeable without starting over. But Word files can be modified easily, copied and pasted into other documents, and saved at each stage for later use.

CAD files can also be copied, changed and saved as often as the designer chooses. A model can be designed and saved, then redesigned to create literally endless variations on a theme. A file can be called up the next day or 10 years later and still be redesigned and sent to the CAM machine. Some manufacturers have stopped making master models since they only need to open the original CAD file and send it to the CAM machine to produce an exact duplicate of the master. Many smaller jewelers own just the CAD software and simply e-mail their CAD files to CAM service bureaus, which fabricate the models for them.

Besides its advantages in the manufacturing process, CAD software can work in tandem with high-tech rendering software such as V-Ray, Brazil and Maxwell to produce spectacular photorealistic images of virtual jewelry models before the actual piece is made. These images can be extremely effective marketing and sales tools. Source: GIA @topic:6


Title: CVD with “Ancient Text” Clouds Abstract: Figure 1. The pavilion of this 1.67 ct pear-shaped CVD-grown diamond displayed an interesting feature with numerous cloud features resembling lines of text. Photomicrograph by Raju Jain; field of view ~2 mm.
The Surat lab received a 1.67 ct D-color pear shape submitted for laboratory-grown diamond service. Spectroscopy and fluorescence imaging confirmed this was a diamond grown by chemical vapor deposition (CVD) that had undergone post-growth high-pressure, high-temperature (HPHT) annealing. This CVD diamond with SI1 clarity displayed an interesting cloud feature that resembled lines of text in an ancient manuscript (figure 1).

Figure 2. A DiamondView image of the pavilion shows the region containing the cloud characteristic. While this image reveals the growth interfaces and the coloration confirms HPHT annealing, it does not show features corresponding to the cloud. Image by Suvarna Gaikwad.
The “lines” of clouds—a feature never before seen by the authors—were oriented approximately 45° to the growth interface seen with DiamondView imaging (figure 2). Examination of the fluorescence images (including those collected with selective-wavelength filters) revealed that the cloud features did not coincide with dislocation bundles, and striations were not observed. Photoluminescence mapping with 532 nm excitation showed high concentrations of the silicon vacancy (SiV–) defect at 737 nm but did not indicate any spatial features corresponding to the clouds. Infrared absorption spectroscopy indicated a type IIb diamond with very low concentrations of uncompensated boron.
This diamond was noteworthy for its unusual and visually appealing clarity characteristic. Additionally, the dichotomy of a thoroughly modern diamond with a cloud feature that evoked an ancient text provided an interesting submission. Source: GIA @topic:4


Title: Fall 2023 Auction Highlights Abstract: Figure 1. The “Infinite Blue,” an 11.28 ct Fancy Vivid blue diamond, sold for $25.3 million in Hong Kong. Courtesy of Sotheby’s.
Following the controversial three-part sale of Heidi Horten’s jewels in the spring (Summer 2023 GNI, pp. 254–256), Christie’s announced the cancellation of the fourth sale ahead of the fall auction season. The late Austrian billionaire’s estate made headlines earlier in the year because of her husband’s connection to Nazi Germany, resulting in considerable backlash against Christie’s despite their pledge to donate part of commissions to Holocaust-related charities.
In early October, Sotheby’s kicked off the season with a single-lot sale of the 11.28 ct “Infinite Blue” (figure 1) in Hong Kong. Celebrating its 50th year in Asia, the auction house offered the Fancy Vivid blue type IIb diamond from the Cullinan mine in South Africa set in a ring with a pink diamond halo and colorless diamond side stones. With GIA’s highest color grade for a blue diamond, the ring sold for $25.3 million, just below the low end of its presale estimate.

Figure 2. Selling for $44 million, the 17.61 ct Internally Flawless “Bleu Royal” became the most expensive auction jewel of 2023. Courtesy of Christie’s Images Ltd. 2023.
Another blue diamond achieved better results in early November. The pear-shaped “Bleu Royal” (figure 2), a 17.61 ct Internally Flawless Fancy Vivid blue, was offered by Christie’s in Geneva as the largest diamond of its color to ever appear at auction. Set in a ring that also featured two pear-shaped colorless diamonds of approximately 3 ct each, the piece became the most expensive auction jewel of 2023. After seven minutes of bidding, the ring featuring the GIA-graded type IIb diamond sold for $44 million, near the higher end of its presale estimate.

Figure 3. A ring featuring the “Pink Supreme,” a 15.48 ct Internally Flawless Fancy Intense pink diamond, sold in Hong Kong for almost $11 million. Courtesy of Christie’s Images Ltd. 2023.
The “Pink Supreme” (figure 3), a 15.48 ct Internally Flawless Fancy Intense pink diamond and the largest of its kind ever offered at auction, sold for $10.8 million at Christie’s Magnificent Jewels sale in Hong Kong on November 27. Set in a gold ring with pear-shaped and round colorless diamonds, the GIA-graded type IIa gem belonging to a private collector sold within its presale estimate.
In a season filled with plot twists, some highly advertised and anticipated pieces did not go under the hammer on auction day. The “Blue Lagoon,” a 93.94 ct blue Paraíba tourmaline and the top lot for Sotheby’s Magnificent Jewels in Geneva, was withdrawn before the auction went live. In the final Magnificent Jewels auction of the season in New York, Christie’s promoted the “California Sunset” diamond earrings as their top lot. Featuring a stunning pair of Fancy Vivid orange-yellow diamonds weighing approximately 12 ct each, the earrings, estimated to fetch up to $12 million, were also a no-show. Source: GIA @topic:8


Title: CVD “Etch” Channel Abstract: Figure 1. The etch channel in this CVD laboratory-grown diamond extends across the table facet into the crown. Photomicrograph by Elina Myagkaya; field of view 7.19 mm.
GIA’s New York laboratory recently examined a diamond that had been grown via chemical vapor deposition (CVD) and processed using a high-pressure, high-temperature (HPHT) treatment. Standard grading procedures identified it as a 4.00 ct H-color cushion modified brilliant with SI1 clarity. The diamond was identified as HPHT processed primarily due to the green fluorescence observed in the stone (see figure 3), while distinct fluorescent growth layers across the table and pavilion confirmed its CVD origin.

Figure 2. Dark residue is visible in some parts of the channel, as seen through the pavilion. The appearance of the residue is similar to that of graphitized carbon but could also be attributed to non-diamond carbon. Photomicrograph by Elina Myagkaya; field of view 1.99 mm.

Figure 3. DiamondView imaging revealed that the channel was surrounded by blue-fluorescing dislocation bundles extending across the growth layers of the CVD diamond. Image by Elina Myagkaya.
While GIA regularly receives CVD-grown diamonds submitted for laboratory-grown diamond reports, this particular example exhibited a unique characteristic. An etch channel–like structure was plainly visible across the table of the stone, a feature not observed in CVD laboratory-grown diamonds at GIA so far. The channel broke the surface of the table and extended across the stone, ending near a pavilion facet on the other side (figure 1). When viewed under high magnification, a dark residue (figure 2) was observed around parts of the channel. This residue was not present throughout the channel and appeared to be opaque. Close to the surface-reaching channel on the table facet were multiple smaller channels contained within the diamond. The surface-reaching opening of the channel was imaged with a scanning electron microscope (SEM), which revealed a jagged, slit-shaped entrance, suggesting that the shape of the channel extending throughout the diamond structure was similar in nature (figure 4). Some fragmentary material trapped just inside the entrance of the opening appeared to extend into the channel itself. This fragmentary material could have been the same type of opaque residue observed in some areas of the channel.

Figure 4. A secondary electron SEM image showed the finer structure of the channel opening, revealing a jagged, slit-like feature. Field of view 16 μm.
Fluorescence imaging with the DiamondView instrument also revealed the presence of this channel, which could be discerned by the blue-fluorescing line of dislocation bundles following the channel’s path (figure 3). These dislocation bundles appeared almost perpendicular to the green-fluorescing growth layer boundaries, suggesting the channel was created by exploiting weaker dislocation bundles that propagated through the diamond during CVD growth.
The presence of this channel in a CVD laboratory-grown diamond and the shape of the channel opening were unlike any natural etch channel opening or laser drill hole opening previously seen. It is unclear whether this channel was created during initial CVD growth or during HPHT processing. The opaque residue visible in some parts of the channel as well as the material visible at the channel surface could point to the presence of graphitized carbon, suggesting the channel was a byproduct of HPHT treatment, or it might indicate the presence of non-diamond carbon, which is a common feature found in untreated CVD laboratory-grown diamonds. In summary, the residue may arise from either the CVD growth process or post-growth treatment. Because this feature has not previously been documented at GIA, future studies may help determine the mechanism of action that could create channels in CVD-grown diamonds. Source: GIA @topic:4


Title: Patchy Yellow Trigon Abstract: Trigons creating the impression of a thin and patchy “yellow skin” on a 0.98 ct rough diamond. Photomicrograph by Nicole Ahline; field of view 2.34 mm.
Occasionally, diamonds show irregularity in their color related to heterogeneous distribution of atomic-level defects. “Yellow-skin” diamonds are evidence of this. Seen in the figure above is the rough surface of a 0.98 ct diamond that shows a trigon with patchy yellow coloration. The yellow color is caused by isolated nitrogen that is confined to the outer surface of the rough stone, making it look like the rough diamond has a “yellow skin.”
Yellow diamonds colored by isolated nitrogen are known to have uniform to patchy or irregular color zoning (more information on naturally colored yellow and orange diamonds can be found in C.M. Breeding et al., “Naturally colored yellow and orange gem diamonds: The nitrogen factor,” Summer 2020 G&G, pp. 194–219). The color zoning (or lack of) correlates with the distribution of the nitrogen in the diamond’s crystal lattice as it grows. It is theorized that the “yellow skin” is from a subsequent growth event, making it younger than the colorless diamond it surrounds. Source: GIA @topic:4


Title: Liberian Ruby Abstract: Figure 1. A handful of gem gravel collected from the Lofa River in Weasua, Liberia, showing the high concentration of ruby material. Photo courtesy of Diamonds for Peace.
A gemological education can often prove useful in the most unusual of circumstances. On a recent trip to rural Liberia with the Japan-based NGO Diamonds for Peace (DfP), the author discovered a previously unacknowledged source of ruby. The original purpose of the visit was to deliver a rough diamond grading and valuation workshop to the miners working and living in 17 communities across Liberia. During the trip, the author stayed in the town of Weasua, one of the larger mining communities, to experience the standard of living and the general working conditions of the miners. The poverty is extreme. Most homes are without electricity, facilities, or running water, and only three functional water pumps exist for a population of 5,000, all of which place the health and the well-being of this community at risk. DfP has been working with this community since 2018 and has made significant inroads in supporting and improving the lives of these miners, but there is a long way to go, and strategies to aid their mission are continually being developed.

Figure 2. Left: One of the Liberian diamond miners displays some of the rubies she found while digging. Right: A ring mounted with a Liberian ruby. Photos by Diamonds for Peace (left) and Alex Herbert (right).
It was therefore fortuitous that during the visit, the author learned that there were other promising gem-quality minerals in the alluvial gravels the miners were collecting in their pursuit of diamond (figure 1). Upon initial inspection while on-site, the author noted material resembling corundum (primarily ruby), garnet, topaz, rock crystal quartz, and possible spinel. Samples were purchased from the miners for analysis, which came as a welcome surprise since they were unaware that these colored stones could carry any value (figure 2, left).
The author subsequently analyzed all the samples at the Gemmological Certification Services (GCS) laboratory in London. Using advanced and standard gemological testing, the identity of all the presumed gem-quality minerals of the collected specimens was confirmed. Particular focus was placed on the rubies due to their apparent abundance at the mine site, with the hope of providing another means of income for this community.
All ten samples tested were identified as corundum. Due to the nature of the rough material, standard testing was limited, beyond measuring specific gravity—which, averaging 4.0 across all samples, supported corundum. The ultraviolet/visible/infrared absorption spectrum, with its chromium-associated features, was also consistent with ruby. X-ray fluorescence analysis of the trace element chemistry revealed 1029–2377 ppm iron and 721–2915 ppm chromium, with low levels of gallium (54 ppm) and vanadium (53 ppm).
Generally, the color of the alluvial material collected ranged from pinkish gray to a deep purplish red, with sizes varying from 6 to 14 mm (1.45–15.90 ct), although the author was shown larger pieces on-site. All of the material showed a moderate to weak red fluorescence response in long-wave UV and inert to weak red in short-wave UV, consistent with high-iron ruby due to the quenching of Cr3+-associated fluorescence by iron. The majority of the samples showed lamellar twinning, surface-reaching fractures, and iron staining. The material was translucent to opaque, meaning that clear observation of any other inclusions was limited.
Although the material is not considered high-quality ruby, some of the better pieces have been polished to create attractive cabochons (figure 2, right). Diamonds for Peace is currently developing a business plan to monetize this material for the benefit of the community. The GCS laboratory will continue to support Diamonds for Peace as that organization explores this new potential avenue of income for the miners of Weasua. Source: GIA @topic:7


Title: Two Antique Mughal Spectacles with Gemstone Lenses Abstract: Figure 1. These antique spectacles contain diamond (left) and emerald (right). Photos by Jian Xin (Jae) Liao.
Lenses play a major role in the daily work of a gemologist, from magnification using a loupe or microscope to the optics used in conjunction with lasers from advanced testing instruments. Even our eyes contain organic lenses, which we use to see the world. In many cultures, seeing the world in completely new ways is often achievable by means of introspection such as contemplative moments or meditation, but sometimes all one truly requires is a pair of glasses.
Recently, GIA’s New York laboratory had the spectacular opportunity to observe and analyze two pairs of truly unique antique spectacles (figure 1). The two spectacles have a storied connection dating back to the height of the Mughal Empire. Their lenses are crafted from diamond and emerald, respectively. According to information provided by the client and independent researchers, the two pairs of spectacles were likely fashioned in mid-seventeenth century India, a period in the Mughal Empire that had an established lapidary tradition and artisans with the expertise to accomplish such creations. Information submitted by the client suggests that the lenses may have been cut from the same rough diamond and the same rough emerald, respectively. Further evidence suggests that while the fashioning of the lenses dates back to the seventeenth century, the frames date from the late nineteenth century based on design and style.

Figure 2. Left: Overlapping mid-infrared spectra of both lenses revealed them to be type Ia diamonds. Right: Two strain images, one of each lens, under cross-polarized light showing natural growth structure and internal stress during natural diamond formation. Images by Christopher Vendrell; field of view 19.27 mm.
The first of the two spectacles, called Halqeh-Ye Nur or “Halo of Light,” consists of two transparent near-colorless modified pear-shaped lenses in a yellow metal frame surrounded by numerous transparent near-colorless stones of various shapes and cuts. The client requested that only the two near-colorless transparent lenses be tested. Infrared spectra and strain images were collected as part of the testing (figure 2). Both lenses were identified as natural type Ia diamonds, sharing matching spectra when overlapped. The strain images revealed natural growth structures and internal stress during diamond formation. While GIA’s investigations were limited in scope to identifying the gem material set in each pair of spectacles, the evidence as a whole seems to suggest that the lenses were cleaved from the same large diamond rough.
The second pair of spectacles, called Astaneh-Ye Ferdaws or “Gate of Paradise,” consists of two transparent green pear-shaped lenses in a white and yellow metal frame set with two green rectangular step cuts and numerous near-colorless stones of various shapes and cuts. According to information provided by the client, the pear-shaped lenses originate from a single natural emerald that originally weighed more than 300 carats. Both spectacles are consistent with the design and style of the late nineteenth century and are believed to have been upgraded to the fashion of the time.

Figure 3. A field of jagged three-phase inclusions hosting gas bubbles, colorless cubic crystals, and aqueous liquid. Photomicrograph by Augusto Castillo; field of view 1.99 mm.
The client requested that both green transparent lenses as well as all 45 of the surrounding near-colorless stones be tested. Microscopic observation, one of the main identification methods for emeralds, revealed an inclusion scene typical for emeralds from Colombia: classic jagged three-phase inclusions hosting a gas bubble and a cubic colorless crystal suspended in fluid (figure 3). It is well established that these daughter crystals are halides, commonly rock salt, derived from the saline brine contained in the primary fluid inclusion (E.J. Gübelin and J.I. Koivula, Photoatlas of Inclusions in Gemstones, Vol. 3, 2008, Opinio-Verlag Publishers, Basel, Switzerland, p. 427).

Figure 4. Opaque black grains were also observed, consistent with inclusions observed in emeralds from Colombia. Photomicrograph by Augusto Castillo; field of view 1.26 mm.
Unidentified tiny opaque black grains were also observed (figure 4), but otherwise the lenses were relatively inclusion free. Examination of minor fissures seen near the gem’s surface using ultraviolet light and microscopic observation indicated the presence of an oil or resin, but this is not believed to have affected the overall appearance. Therefore, the emeralds were classified as having “no indications of clarity enhancement.”
Standard gemological testing revealed a refractive index of 1.577 to 1.583 with a birefringence of 0.006. Examination between crossed polarizing filters showed a uniaxial optic figure. The pleochroism was green to blue-green, and a handheld spectroscope revealed a typical emerald spectrum. These properties and observations confirmed that the green transparent lenses were natural emeralds.
All 45 of the transparent near-colorless stones surrounding the two emerald lenses were identified as diamonds using GIA’s iD100 device, microscopic observation, and additional advanced testing.
Even by today’s standards, these astonishing curiosities are objects of technical mastery by the artisans and the brilliant vision of the patrons who commissioned the spectacles. From these fine examples of Mughal craftsmanship, to more modern examples such as synthetic sapphire sunglasses made for Sir Elton John (see Winter 1997 Lab Notes, p. 296), we continue to be pleasantly surprised by gem materials passing through GIA that have been fashioned into unique items such as these lenses. We imagine Sir Elton would approve of these Mughal spectacles. Source: GIA @topic:1


Title: GIA Museum’s Tucson Exhibit Receives Two Awards Abstract: This exhibit highlighted GIA’s research into the origin of several of the most famous diamonds. Photo by McKenzie Santimer.

The GIA Museum received two awards for its exhibit at the 2020 Tucson Gem and Mineral Show. “The Science Behind World-Class Diamonds” (see above) won Best Museum Exhibit from the Tucson Gem & Mineral Society and Best Institutional Educational Award from the Friends of Mineralogy. The exhibit demonstrated how famous diamonds such as the Hope and the Cullinan originated in extreme depths of the earth’s lower mantle. The showcase featured extraordinary diamond jewelry and diamond replicas.
More than 30 cases were displayed by renowned museums including the Smithsonian Institution, LA County Museum of Natural History, and the Royal Ontario Museum. This is the second time GIA has won the award for Best Museum Exhibit, having won previously in 2016. Source: GIA @topic:10


Title: Fall 2022 Auction Highlights Abstract: Figure 1. The 11.15 ct Williamson Pink Star is set in an 18K pink and white gold ring, along with 1.41 carats of trapeze-cut diamonds and 0.14 carats of brilliant-cut pink diamonds. Courtesy of Sotheby’s.
The astounding results of colored diamond sales in the spring auction season (Summer 2022 GNI, pp. 260–263) left expectations high for fall. Pink diamonds set the scene for the beginning of the season, starting with a bang at a Sotheby’s stand-alone sale in Hong Kong in October. Selling for $57.7 million, almost three times its estimate, the 11.15 ct Williamson Pink Star (figure 1) became the second most valuable jewel ever sold at auction. After 20 minutes and 50 bids, the GIA-graded natural Fancy Vivid pink internally flawless cushion-shaped diamond broke the record price per carat for any diamond or gemstone sold at auction, at $5.2 million a carat.

Figure 2. The 18.18 ct Fortune Pink sold in Geneva for $28.9 million. Courtesy of Christie’s.
The colored diamond trend headed downward the following month with the Fortune Pink (figure 2) at Christie’s Magnificent Jewels sale in Geneva, selling below expectations at the lower end of its estimate. Fetching $28.9 million, the GIA-graded 18.18 ct stone is the largest pear-shaped Fancy Vivid pink diamond ever sold at auction.

Figure 3. Surrounded by pink diamonds, this 31.62 ct Fancy blue diamond pendant sold within its estimate at $11.8 million. Courtesy of Christie’s.
Another pink diamond, a 13.15 ct emerald cut, was slated to lead Christie’s December Magnificent Jewels sale in New York before it was withdrawn weeks before the auction and later revealed as alleged stolen property. A 31.62 ct Fancy blue diamond pendant (figure 3) was then placed as the top lot of the auction. The GIA-graded pear modified brilliant cut, noted by Christie’s as the largest of its kind to appear at auction, garnered $11.8 million, toward the lower end of the estimate. Three other blue diamonds offered by Sotheby’s from the De Beers Exceptional Blue collection drew lackluster results throughout the season. Two were left unsold, and one was withdrawn prior to auction.

Figure 4. The 303.10 ct Golden Canary, recently recut from the Incomparable, became the third most valuable diamond sold at auction. Courtesy of Sotheby’s.
In an unexpected conclusion to the season, the Golden Canary (figure 4) sold below its estimate at $12 million. Without a reserve, Sotheby’s anticipated the 303.10 ct pear-shaped Fancy Deep brownish yellow diamond to secure more than $15 million in the New York auction. Still, the diamond became the third most valuable diamond ever sold at auction, Sotheby’s noted. As the largest flawless or internally flawless and largest pear-shaped diamond graded by GIA to date, the Golden Canary can be traced back to a young girl’s discovery of an 890 ct rough near her uncle’s house in the Democratic Republic of the Congo in the early 1980s. The 407.48 ct Incomparable, the largest of the 15 finished stones from the rough diamond, was recently transformed into the Golden Canary to improve its color and shape.
The real surprise of Sotheby’s New York auction—and perhaps the season—was the sale of a ring featuring a 6.25 ct emerald recovered from the legendary 1622 shipwreck of the Nuestra Señora de Atocha. The ring sold in just five minutes for $1.2 million, more than 17 times its estimate. All proceeds were donated to humanitarian efforts in Ukraine. Source: GIA @topic:8


Title: Chow Tai Fook Expands Blockchain Initiative with GIA Abstract: Chow Tai Fook plans to expand the offering of blockchain-secured, digital diamond grading reports for its T MARK diamonds to additional stores in Hong Kong and mainland China. The addition of GIA’s secure digital reports documents the diamond journey and grading information in one place.

One year after Chow Tai Fook Jewellery Group and GIA announced a pilot program to give customers who purchase the Chow Tai Fook’s T MARK diamonds blockchain-secured, digital diamond grading reports, the company announced that it will expand the program to additional stores in Hong Kong and mainland China.
“Launching our T MARK diamond brand represented a significant breakthrough as we were the first retailer to share the life journey of a diamond,” said Kent Wong, managing director of Chow Tai Fook Jewellery Group, a Hong Kong-based jewelry retailer that has more than 3,000 outlets globally.
According to Wong, the addition of GIA’s secure digital reports makes the T MARK program truly complete because it documents the diamond journey and grading information in one place.
The pilot program was launched in September 2018 and reached 10 Chow Tai Fook stores in Hong Kong by March 2019. Customers who buy T MARK diamonds can choose to receive a digital GIA grading report through the dedicated T MARK app on their phones instead of the usual printed document. All of the GIA grading report data is secured through blockchain technology using the IBM Blockchain Platform.
“It made perfect sense to add GIA’s secure digital blockchain reports into our T MARK program to add another layer of trust for our customers,” said Chow Tai Fook executive director Bobby Liu.
Chow Tai Fook executives say the blockchain initiative has gone down well with its customers, particularly the younger generation, who are excited about blockchain technology because it aligns with their pursuit of authenticity, higher security and a paperless lifestyle. The company also said customers liked the idea of storing the digital GIA reports in the T MARK app because the diamond grading information is just a few taps away and can be retrieved anytime.
“Ensuring consumers’ trust in their diamond jewelry purchases is fundamental to GIA and Chow Tai Fook,” said Tom Moses, GIA executive vice president and chief laboratory and research officer. “This innovative collaboration enhances that all-important consumer trust and helps meet expectations around transparency, trust and sustainability.”

A GIA blockchain diamond grading report on the T MARK app. The featured icon on the top of this report and in GIA Report Check indicates a blockchain-enabled report number. The blockchain diamond grading report includes the key GIA grading data – Color, Clarity, Cut, Carat Weight, Shape and Cutting Style – and GIA’s Statement of Authenticity.
Secure, Easy-to-Access Info on Diamond’s Journey
Of course, there is also a great deal of curiosity about the T MARK app because many customers are not familiar with the concept of blockchain. According to Chow Tai Fook, a well-prepared sales staff is the key to making the T MARK program work. Their sales staff are well-trained to explain the benefits of this technology:

Greater data security – the grading report is digital and secured in the blockchain database. Importantly, this digital record of the diamond’s grading information is linked to the customer when they purchase a diamond and register on the T MARK app - a first for grading reports.
A more streamlined experience – instead of a separate printed grading report, the digital report is incorporated into the T MARK app, so all of the diamond’s information is available in one place, anytime and anywhere, easily accessible with the tap on the screen. This eliminates the risk of losing, and the inconvenience of handling physical reports.
Enhanced assurance – consumers are receiving the same independent, accurate and unbiased analysis that GIA has been providing since 1931, integrated into the T MARK app, which provides full transparency about their diamond’s journey. Customers know everything about their diamond - its source, its journey and its 4Cs grading information from two trusted sources: Chow Tai Fook and GIA.

Chow Tai Fook sales staff stress to customers that blockchain technology is already used to protect high-value assets such as in fine wines, works of art and other luxury products, and critical data in other industries. Chow Tai Fook and GIA are the first to offer this technology to diamond purchasers. Chow Tai Fook also notes that once a record is added to the blockchain database, it is permanent and cannot be changed, ensuring the security of the data.
Most importantly, though, the retailer tells all of its customers that blockchain technology is simply a tool that helps to enhance what they have already come to expect from Chow Tai Fook and GIA.
“Using blockchain technology to link a customer to their diamond’s grading report and history is an important milestone for the diamond industry,” said Pritesh Patel, GIA senior vice president and chief operating officer. “Together, Chow Tai Fook and GIA brought blockchain security to gem and jewelry consumers.”
Education is Key to Explaining the Benefits of Digital Diamond Information
Chow Tai Fook acknowledges that not every T MARK customer is ready to go without the printed reports. There is a period of transition, and as with any new product or service, its executives said, education is a key factor during this time.
Indeed, just as when companies like Apple or Nike introduced digital receipts and warranties, there were some customers who were early adopters and some who preferred paper. In the initial stages of the project, the company plans to give customers both options.
The company will make a continuous effort to adopt digital reports as the norm, especially after it expands the offering to Chinese consumers in mainland China in the coming months.
As Chow Tai Fook expands beyond its pilot blockchain program, it believes there is ample room for growth, especially as it adds more stores, trains more front-line staff and works with GIA to closely monitor the program. Source: GIA @topic:8


Title: The Grass Is Always Greener… Abstract: Figure 1. Blade-like green radiation stains. Also indicated is the boundary of the close-up view of the green stains in figure 2. Photomicrograph by Michaela Stephan; field of view 2.9 mm.
The Carlsbad laboratory recently examined a 0.97 ct Fancy grayish green diamond submitted for colored diamond grading service. Microscopic examination revealed a colorless diamond with green radiation stains scattered across the pavilion (figure 1).
These radiation stains were particularly unusual due to their linear appearance and resembled blades of grass in their morphology and color. These stains were prevalent along intentionally preserved rough natural diamond surfaces on the pavilion. Faceted surfaces along the pavilion were polished with particular effort to retain some of the green radiation stains. The resultant internal reflection of green light to the table created a uniform green bodycolor in this rare and beautiful diamond.

Figure 2. Radiation stains on the rough diamond’s surface also penetrate to a polished side (left). Viewed with reflected light, the surface shows acicular indentations coincident with green stains (right). Photomicrographs by Michaela Stephan and Roy Bassoo.
Surface photomicrographs revealed long, linear, and acicular indentations concentrated near the center of the radiation stains (figure 2). Indentations crosscut flat-bottomed trigons, suggesting they post-dated diamond dissolution in the earth’s mantle (e.g., R. Tappert and M. Tappert, Diamonds in Nature: A Guide to Rough Diamonds, Springer, Heidelberg, 2011). The green stains along the polished surface indicate that the radiation stains penetrated some depth into the diamond. These features have been observed previously at GIA (e.g., Spring 2021 G&G Micro-World, pp. 66–67; Spring 2022 G&G Micro-World, pp. 64–65) and may result from acicular to tabular radioactive minerals precipitating directly on the diamond surface in a paleoplacer to recent alluvial environment (e.g., R. Lauf, Mineralogy of Uranium and Thorium, Schiffer Publishing, Ltd., Atglen, Pennsylvania, 2016). Radiation damage created vacancies in the diamond lattice, which absorb red light and reflect green light, resulting in the green color of the radiation stains. Uncharged or neutral vacancies produce a photoluminescence response near the 741 nm zero phonon line called the GR1 defect (e.g., J.E. Shigley and C.M. Breeding, “Optical defects in diamond: A quick reference chart,” Summer 2013 G&G, pp. 107–111). The GR1 defect area from photoluminescence spectra can be measured and mapped to indicate the spatial distribution of this defect coincident with the radiation stains (figure 3).

Figure 3. Left: Map of the integrated area beneath the GR1 defect peak of the radiation stains on the diamond surface, derived from photoluminescence spectroscopy. Right: Reflected light image of the surface showing radiation stains (outlined in red) coincident with acicular indentations. The measurements were taken with a 532 nm laser at 1 mW power, 25 μm confocal spot size, 5 μm step size, and 100 Hz.
It is unusual to see green radiation stains of this shape that correspond with indentations on a diamond surface. These features could be a commonly overlooked characteristic of green diamonds. Source: GIA @topic:4


Title: Spring 2022 Auction Highlights Abstract: Figure 1. At 228.31 ct, the Rock is the largest white diamond ever sold at auction. Photo courtesy of Christie’s.
The De Beers Cullinan Blue was the early buzz of the spring 2022 auction season, with the 15.10 ct Fancy Vivid blue step-cut diamond far surpassing Sotheby’s presale estimate of $48 million. Bringing $57.5 million, the diamond was the largest of its color to ever appear at auction and also the third most valuable diamond of any color to sell at auction. (To read more about GIA’s examination of the De Beers Cullinan Blue, see Lab Notes in this issue, pp. 216–217.)
The season continued in Geneva, with Christie’s auctioning two diamonds weighing more than 200 ct each at the Magnificent Jewels sale on May 11, beginning with the largest white diamond ever sold at auction. Named the Rock (figure 1), the GIA-graded 228.31 ct, G-color, VS1 pear-shaped diamond sold for $21.9 million, or $96,000 per carat. The previous record holder for the largest white diamond sold at auction weighed 163.41 ct and was sold by Christie’s in 2017.

Figure 2. The 205.07 ct Red Cross diamond set an auction record price for a Fancy Intense yellow diamond at Christie’s Geneva Magnificent Jewels sale. Photo courtesy of Christie’s.
The second diamond, the Red Cross (figure 2), returned to Christie’s for a third time at auction. It was first sold at Christie’s in 1918 to benefit the British Red Cross during World War I. At 205.07 ct, the GIA-graded Fancy Intense yellow cushion cut fetched $14.3 million, or $70,000 per carat, after 11 minutes of competitive bidding, setting an auction record price for a Fancy Intense yellow diamond. A portion of the proceeds benefited the International Committee of the Red Cross.

Figure 3. This necklace featuring 33 jadeite beads was the top lot at Christie’s Magnificent Jewels sale in Hong Kong. Photo courtesy of Christie’s.
A jadeite necklace (figure 3) was the top lot at Christie’s May 25 Hong Kong sale, selling for $8.8 million after 11 minutes of bidding. The stunning piece features 33 perfectly round, exceptionally large jadeite beads ranging from 12.3 to 15.0 mm in diameter, with an 11 ct Burmese ruby clasp surrounded by oval brilliant diamonds.

Figure 4. The 103.49 ct Light of Africa diamond sold for an impressive $195,000 per carat at Christie’s Magnificent Jewels sale in New York. Photo courtesy of Christie’s.
In June, the focus returned to diamonds at Christie’s final Magnificent Jewels auction of the season in New York. The 103.49 ct Light of Africa (figure 4), the fifth most valuable colorless diamond ever offered at Christie’s, surpassed its presale estimate of $18 million, with the winning bid coming in at just over $20 million—an incredible $195,000 per carat. The GIA-graded emerald-cut type IIa diamond was cut and polished from a 299 ct rough stone unearthed from the Cullinan mine. Source: GIA @topic:8


Title: Zircon History and Lore Abstract: Zircon has a rich tradition as a gemstone and continues to be popular with designers. - Gift of Mary Armatis, Armatis Fine Design

                      Many people have heard of zircon but never seen it. This is mostly because of colorless zircon’s wide use as a diamond simulant in the early 1900s. It was long ago replaced in that role by more convincing look-alikes, but its name still means “imitation” to many people. That’s unfortunate because zircon is a beautiful colored stone with its own fair share of folklore and charm.

In the Middle Ages, this gem was thought to induce sound sleep, drive away evil spirits, and promote riches, honor, and wisdom.

Many scholars think the stone’s name comes from the Arabic word zarkun, meaning “cinnabar” or “vermilion.” Others believe the source is the Persian word zargun, or “gold colored.” Considering zircon’s color range, either derivation seems possible.

Blue zircon was a particular favorite in Victorian times, when fine gems were often featured in English estate jewelry dating from the 1880s. Gemologist George Kunz—Tiffany’s famed gem buyer—was a notable zircon advocate. He once proposed the name “starlite” to promote the gem’s fiery nature. The name never caught on. Source: GIA @topic:3


Title: Bullish Predictions for 2019 Holiday Sales Despite Concerns, Sotheby’s Hong Kong Auction Sales Abstract: GIA alumna Anna Hu’s necklace design features a 100.02 carat cushion-shaped Fancy Intense yellow diamond showcased in the shape of a Chinese musical instrument – Dunhuang pipa – and embellished with variously shaped and brilliant-cut diamonds mounted in 18K white and yellow gold. The pipa can be detached and worn as a pendant/brooch. It sold for $5,780,056. Photo by Michael Oldford. Courtesy of Sotheby’s

Holiday retail sales in the U.S. will increase by 3.8% to 4.2% over last year, the National Retail Federation (NRF) predicted. Online retail sales will increase about 11% to 14%, the NRF estimates.
The organization acknowledged that American consumers are concerned about political and economic uncertainties and worried that tariffs will bring higher prices – another survey found that new tariffs will cost households $862 this year on average – but noted that they are generally in good financial shape, which should cancel out most concerns.
Specific to jewelry, the Edge Retail Academy, a consulting firm for independent retail jewelers, noted that sales of colored gemstones have been strong all year and that, while unit sales of colored stone jewelry have increased only 2%, dollar volume is up 16% as consumers seek higher-priced pieces. The Edge also noted that diamond jewelry sales were running about 5% ahead of last year.
Another survey from RetailDive, a news service for retail executives, said that tariffs may add as much as 15% to popular gift products, such as smartwatches, TVs, audio gear and, coming this quarter, video game consoles and even smartphones. Like the NRF, the RetailDive survey found that, while they are increasingly anxious about the gyrating stock market, political rhetoric and trade wars, consumers still have the means to keep spending.
The Conference Board Consumer Confidence Survey found similar concerns in reporting that confidence dropped sharply in September.
Not everyone is benefitting from consumers’ spending mood. RetailDive reported that a record 7,300 retail stores have closed in the U.S. this year. Much of this number comes from the decline of large, regional shopping malls that have been losing business for years, which is accelerated by the fact that their traditional “anchor” stores have seen their own sales deteriorate.
After the holiday season, there remains a big question mark. At least one major bank’s forecast sees U.S. retail slowing down.
UBS, a major Swiss investment bank, is predicting a 2% decline in U.S. retail jewelry sales next year, in the wake of a slowing economy and bearish stock market. It believes the stock market will decline an average of 13% next year, putting a brake on consumer sentiment and dampening demand for luxury products, including jewelry.
The bank predicted, however, that Chinese demand would begin to recover because consumers there will have adjusted to the effects of the trade war. A majority of them remain optimistic for the coming year, but report says that consumers will likely opt for pieces with lower price points.
In Hong Kong, however, the ongoing protests caused August retail sales of jewelry and watches to plunge 47% from the same month last year, the government statistics agency reported. Tourism was down 39% and visitors from the mainland were down 41%.

Hu's Ellington earrings feature a conch pearl, suspended from a scroll surround designed as piano keys. They are set with rectangular sapphires and baguette diamonds in 18K white and pink gold. They sold for $278,819. Courtesy of Sotheby's
AUCTIONS
A jewel designed by GIA alumna Anna Hu, on commission from Sotheby’s, drew a winning bid of $5.8 million at the auction house’s Oct. 7 Hong Kong sale. The necklace features a GIA-graded 100 ct Fancy Intense yellow diamond set in the shape of a Dunhuang pipa, a traditional four-stringed Chinese musical instrument that is depicted in an ancient mural in Dunhuang. The piece sold for well above its pre-sale estimate and was the costliest of four items in her Silk Road collection, all of which sold at the auction.

Hu’s stylized cello brooch is set with jadeite cabochons of emerald green color and accented with brilliant-cut diamonds and diamonds of yellow tint, highlighted by a circular-cut pink sapphire, mounted in 18K white and yellow gold. It sold for $278,819. Courtesy of Sotheby's
Hu’s conch pearl, sapphire and diamond pendant earrings, titled “Ellington,” sold for $278,819; her jadeite, diamond and pink sapphire “Cello” brooch brought the same price; a conch pearl, diamond and blue enamel “Blue Magpie” brooch drew a top bid of $254,920; and a ruby and diamond “Appassionata” ring sold for $103,561. Part of the proceeds from the sale of Hu’s designs went to the Silkroad, a charity established by cellist Yo-Yo Ma.
Hu earned her GIA Graduate Gemologist® diploma and a GIA Jewelry Design Certificate in 1997.

Portrait of jewelry designer Anna Hu taken in Paris. Courtesy of Sotheby’s
In addition to sale of the Hu pieces, a buyer paid nearly $20 million for a 10.64 Fancy Vivid purplish-pink diamond. At $1.9 million per-carat, the price was below prices paid for pink diamonds auctioned several years earlier, but still strong.
The auction market remains selective with several major pieces, including an 89.88 ct D fl emerald cut diamond and a 11.88 ct Burmese ruby, failing to attract bids.
DIAMONDS
As expected, De Beers kept its September cycle sales low -- $295 million – which is slightly higher than August, but 39% below the $482 million it allocated the corresponding month last year.
De Beers is permitting clients to refuse up to 50% of their allocations and continues to offer to buy back 30% of the 2 to 10 ct rough diamonds it has sold this year. Such buy-backs are unprecedented for De Beers, but with industry banks no longer funding rough purchases that they deem unprofitable, the company has little choice. Prices of polished diamonds have to rise for the banks to resume lending and the only way that can happen is to reduce supplies in dealers’ hands.
The Financial Times reported that De Beers’ yearly sales are running 27% below last year’s levels. De Beers said its priority is to help the industry recover from this period of soft prices and oversupply that continue to sap profitability and undermine polished prices, which also continue to ebb.
Diwali, the holiday during which the Indian gem and jewelry industry takes a traditional two-week break, begins Oct. 27. Sometimes manufacturers extend the break during periods of slack demand, so the industry will be watching closely to see how many of them delay their reopening and for how long. Source: GIA @topic:8


Title: US Government to Industry: Know Your Supply Chain; De Beers, Alrosa Cut Rough Sales Abstract: Leading diamond producers have cut rough sales way back as credit tightens and inventories build. Photo courtesy of Rio Tinto

The U.S. State Department told jewelry industry representatives in April to tighten chain of custody reporting on all materials – gemstones, diamonds and metals – used in their products.
Last week, the department came back and told the industry it was not doing a very good job.
According to a JCK report, the industry is still lagging on adopting “Know Your Customer” rules that require businesses to file “Suspicious Activity Reports” on transactions using large amounts of cash or where criminal activity is suspected. State Department officials told attendees that “very few” such reports have been filed and that everyone up and down the supply chain needs to do more.
The State Department said these regulations are necessary to prevent funds from going to “malign” regimes, such as Iran, Venezuela and several African nations.
The industry voiced concerns after the April meeting about a new round of restrictions placed on its supply chain that require documentation of every step of every colored gemstone or diamond in the pipeline.
Attendees agreed last week that cooperation is beneficial for all sides and called for greater due diligence moving forward.
ROUGH DIAMOND SALES
De Beers, Alrosa and other diamond mining companies severely cut rough sales in an effort to reduce inventories in diamond manufacturing centers and to help temper the softening of rough and polished prices. Sales will likely remain low for the rest of the year because there is no sign of a quick resolution to the diamond manufacturers’ credit problems or high inventories.
De Beers and Alrosa said the banks’ cutting credit to diamond manufacturers and the prospects of an increased trade war between the U.S. and China were the main reasons for the difficult rough diamond market today.
De Beers announced its smallest allocation in three years – $250 million – and allowed clients to defer purchases of a wider range of goods. Rough revenues are down nearly 25% for the year compared to last year.
Alrosa reduced its rough sales by more than 50% to $169 million against June 2018 levels. Its sales are down more than one-third for the year. Rough prices have declined about 6% this year, while polished prices for diamonds one carat and under have declined 1.5% to 3.5%, with larger drops coming in the smaller sizes.
In addition, Rio Tinto reported a $5 million loss in its diamond division for the first half of the year, compared to a profit of $55 million for the same period of 2018. While the loss is due in part to the company shifting mining activities to lower ore grades (a means of trimming production in a soft market without disrupting operations), sales of rough diamonds were down 16% for the period. The company will close its largest diamond operation, the Argyle mine in Australia, next year.
Demand for diamonds, while not depressed, remains mired in very slow growth worldwide and is not sufficient to absorb excess inventories. Part of the reason for the slow demand growth is the unsettled political and economic climate around the world. In addition, young people seem less interested in jewelry than their parents. A study of the U.S. market, conducted by Harris Poll for TD Ameritrade, found that Gen Z and millennials place much less value on an engagement ring than their parents – two-thirds believe a ring should cost less than $2,500. Source: GIA @topic:8


Title: De Beers Ups Supply, FTC Warns About ‘Eco’ Claims Abstract: The principal diamond cut and polished from the 1,109 carat Lesedi La Rona rough diamond weighs 302.37 carats. The polished diamond, named the Graff Lesedi La Rona, is so large that cutters had to adapt equipment to work on the rough. Photo courtesy of Graff

After announcing that it would reduce rough diamond allocations for the near future, De Beers abruptly shifted course. Its April cycle sale, which totaled $575 million, was about 15% higher than the previous cycle in February. At the same time, Russia’s Alrosa announced that its sales were down by 37% during the first quarter compared to last year.
De Beers CEO Bruce Cleaver said diamond demand was “stable moving into the second quarter of 2019.”
Alrosa CEO Sergey Ivanov also acknowledged that demand “was stabilizing following soft demand,” noting that he is “cautiously optimistic” about second quarter sales.
Before De Beers’ April 1-5 sale, the company informed clients it would trim allocations because of the closure of its Victor mine in Canada and reduced production from the Venetia mine in South Africa, which is undergoing a transition from an open pit to an underground operation.
While these changes have affected production, the entire diamond industry is struggling with high inventories of both rough and polished, especially smaller, lower quality goods destined for mass market jewelry. Consumer demand has been insufficient to draw them down. Diamond manufacturers, faced with ever tightening credit, have said they would welcome lower supplies of some goods. The well-publicized bankruptcy in Antwerp of one of the world’s largest diamond companies, with about $2.5 billion yearly revenue, has not helped sentiment.
De Beers is faced with pressures to ramp up sales, however, and is beginning talks with the Botswana government, which owns 15% of De Beers, for a new five-year renewal of the contract that forms the basis of their 50-50 mining and marketing operation, Debswana. Debswana operates, among others, the Jwaneng and Orapa mines, two of De Beers’ largest diamond sources. In past contract talks, Botswana has proved to be a tough negotiator and has won considerable concessions, including the establishment of a substantial local diamond manufacturing base and the move of De Beers’ headquarters to the capital, Gaborone.
De Beers has also been under a great deal of pressure from clients and others to allow identification of diamonds produced at its mines. In the past, it was reluctant because many of its clients also buy from Alrosa, Rio Tinto and other producers and mix all of the rough in their cutting operations. It has done a 180-degree turn, however, and is allowing its clients and their customers to identify specific diamonds as Diamond Trading Co (DTC)-sourced, all the way to the consumer level. De Beers still does not disclose a specific country of origin, arguing that all of its diamonds are produced according to its best-practice principals and sustainable mining efforts. The company still will not allow clients to use the De Beers name, which is reserved for its retail operations, and imposes certain conditions on how the DTC name is to be used.
On March 28, GIA announced the GIA Diamond Origin Report service, which uses scientific evaluation to confirm diamond’s geographic origin. The reports will be available beginning April 30.

LABORATORY-GROWN DIAMONDS

The Federal Trade Commission (FTC) has issued warning letters to eight producers of for failing to conspicuously note that their diamonds were not natural. Lost in the fine print was an additional warning against claiming that such diamonds were more beneficial to the environment – a central part of the competitive strategy of laboratory-grown diamond producers, vis a vis natural stones.
The FTC statement:
“Some companies described their products as ‘eco-friendly,’ ‘eco-conscious,’ ‘sustainable,’ etc. Marketers must have a reasonable basis for any environmental claim they make. Furthermore, according to the FTC’s Green Guides, companies should steer clear of general environmental benefit claims because it’s unlikely advertisers can substantiate all reasonable interpretations of those claims.”
In the five or so years since laboratory-grown diamonds have been widely available, “eco-friendly” and “conflict free” have been major selling points of their producers. This taps in strongly to the millennial audience that these producers see as their target consumers.
JCK reported that the companies notified by the FTC have made changes in their online promotions to make it clearer that their products are man-made.

MEGA-DIAMOND

The cutting of the 1,109 ct Lesedi La Rona diamond is complete, with the signature stone being a 302.37 ct cut-corner square. The rough diamond is the second largest gem quality stone ever found, the largest being the 3106 ct Cullinan found in 1905. The 302.37 ct Graff Lesedi La Rona is the sixth largest polished diamond – and the third largest colorless – in the world behind the 545.67 ct Golden Jubilee yellow diamond; two colorless diamonds from the Cullinan (520 and 317 cts); the 407 ct Fancy Deep brownish yellow Incomparable; and the 312 ct black Spirit of de Grisogono.
London jeweler Laurence Graff, who purchased the rough diamond in 2017 for $53 million, said it took 18 months to cut. Several months ago, Graff revealed 66 smaller satellite diamonds, ranging from under one to 26 cts, made from the stone, while diamond cutters tackled the challenge of getting a signature polished diamond over 300 cts from the remainder. The diamond proved too large for conventional scanners and laser units, forcing the cutting firm to adapt its equipment to accommodate the stone.
Graff did not reveal the total weight of the diamonds polished from the rough crystal, but those who handled the rough described several inclusions and an internal fissure that potentially lowered the yield.
The Lesedi la Rona was found in November, 2015 by Lucara Diamond Co. at its Lerowe Mine in Botswana. Its name translates to “Our Light” from the Tswana language.

This 88.22-carat, D Colour, Flawless, Type IIa, oval brilliant diamond – photographed with a pigeon egg for a size comparison – recently sold for more than $13.7 million at Sotheby’s Hong Kong spring sale. Photo courtesy of Sotheby’s
AUCTIONS

Sotheby’s Hong Kong jewelry auction had mixed results with a number of big-ticket items failing to sell. Of the US $41 million total, some $13 million went for the final lot, an 88 ct D fl, Type II oval cut diamond, graded by GIA, with a final price of $156,150 per carat – a bit lower than average for a very large diamond of that grade. Similar diamonds have sold at auction for between $160,000 and $180,000 per carat in the past.
The buyer was a Japanese executive who named the diamond Manami Star, after his daughter. The auction house noted that the diamond was cut from a 242 ct rough found in De Beers’ Jwaneng Mine, Botswana.
A 13.88 cushion cut Kashmir sapphire sold for $25 million, about 10% above its initial estimate.
About one-third of the lots went unsold, including most of the fancy colored diamonds and several large colorless diamonds of VVS and VS clarity, including a Fancy Vivid blue of 3.32 cts, estimated at up to $7.6 million; a 2.56 ct Fancy Vivid blue estimated at $3.6 million; and a number of ruby pieces, including a ruby and diamond bracelet estimated at $1.2 million. Both were graded by GIA.
In New York on April 16, Christie’s sold a pair of Fancy Vivid blue diamond earrings, 3.06 cts and 2.61 cts respectively, to an undisclosed bidder for $6.7 million, about 10% above its top estimate. While the pair of diamonds achieved a higher-than-expected price, the per carat price of $1.2 million was well below what similarly graded diamonds have sold for in the recent past.
The sale was 88% sold by value, but did not feature potential record-breaking diamonds or colored stones, which reflects some caution in the ultra-high end in today’s auction market. Source: GIA @topic:8


Title: Letters: Note on CVD Synthetic Overgrowth Abstract: I read with interest the Summer 2017 G&G Lab Note titled “CVD synthetic diamond overgrowth on a natural diamond” (pp. 237–239). The concluding paragraph states, “This synthetic overgrowth on a natural diamond with a Fancy color grade is the first GIA has seen.” However, a Gem News entry published in the Summer 1991 G&G presented color photos of a synthetic bluish gray CVD diamond overgrowth over one rough and two faceted natural near-colorless type Ia diamonds (Koivula and Kammerling, 1991). This Gem News item was more recently reproduced in the G&G In Review: Synthetic Diamonds compilation book, published in 2005.

The treated gems were documented at the time by myself and other GIA researchers. A scientific article (Fritsch and Phelps, 1993) detailed the work first mentioned in the 1991 Gem News item. It already cautioned the jewelry industry about the availability of such a product and its possible misidentification. The highly doped boron film (approximately 220 ppm B, hence the dark color) was about 0.1 microns thick and deposited by the hot filament method. To everyone’s surprise, the crystallographic orientation of the natural type Ia substrate had no noticeable influence on the quality of the type IIb CVD film. The film could be detected by abrasions on facet edges, infrared spectroscopy (absence of the boron acceptor center), and UV-visible spectroscopy (presence of the N3 center). Of course, no detailed low-temperature photoluminescence was done, as this became common practice on diamonds only around 1999, with the onset on HPHT-treated diamonds. Neither is there a clear influence of the type IIb layer on the infrared spectrum, in part due to its thinness and the difference in efficiency with today’s infrared detectors.

The three samples were left with GIA Research. I would encourage the authors of the Lab Note to run a full characterization with more up-to-date methods. It is of interest that the stones were submitted to GIA as client stones and followed the normal procedure for blue diamonds at the time, yet this treatment went undetected.

This work predates by two years Yacobi et al. (1993), which the Summer 2017 Lab Note suggests was the first to report deposition of CVD synthetic diamonds on natural type Ia substrates, although not faceted, so less relevant to gemologists’ concerns. (Yacobi’s article, incidentally, was published in the same issue of Diamond and Related Materials as the Fritsch and Phelps article.) The recent Lab Note also states, “Deposition of a boron-doped CVD synthetic film of <10 microns on a natural gem-quality diamond was reported in 2005,” whereas this had already been published almost 15 years prior, in 1991. Furthermore, in contrast with the 2005 article cited, spectroscopic data was presented in the 1993 article.

Emmanuel Fritsch
University of Nantes, CNRS, Team 6502
Institut des Materiaux Jean Rouxel (IMN), Nantes, France
Reply
We thank Prof. Fritsch for reading our Summer 2017 Lab Note and writing this letter to Gems & Gemology. In it we mentioned that this synthetic overgrowth diamond was the first GIA had seen, and several factors support this statement. It showed sharp boron peaks at 2455 and 2800 cm–1, and nitrogen aggregates and platelet peaks in the 1000–1500 cm–1 region (figure 1). Therefore, we classified it as mixed type Ia and IIb. In their 1993 Diamond and Related Materials article, Fritsch and Phelps coated natural, near-colorless type Ia diamonds by depositing boron-doped CVD film. They extrapolated the boron concentration of their coated diamonds using electrical conductivity rather than calculating it from the IR spectrum, which did not show any boron peaks. According to diamond type classification (Breeding and Shigley, 2009), the IR spectrum indicates a type Ia diamond, not a mixed type. The diamond we reported on in the last issue is the first CVD-coated mixed-type diamond detected at GIA using FTIR.

Figure 1. Spectrum A is the IR spectrum of the Fancy blue CVD-coated diamond from Moe et al. (2017). It is a mixed-type diamond with boron peaks at 2455 and 2800 cm–1, along with nitrogen aggregates and a platelet peak between 1000 and 1500 cm–1. Spectrum B, modified from Fritsch and Phelps (1993), represents a CVD-coated bluish gray diamond. It does not show any boron peaks and therefore must be classified as a type Ia diamond.
CVD-coated diamonds previously reported in G&G were not client diamonds (see Fritsch and Phelps, 1993; Eaton-Magaña, 2014). The CVD layer was deposited on natural diamonds for research purposes. In contrast, our diamond was submitted by a client, suggesting CVD-coated natural diamonds have already reached the market. The color has also been improved. Previous CVD-coated diamonds were dark bluish gray (Koivula and Kammerling, 1991; see figure 2) and an initially gray color that altered to Fancy Dark brownish yellowish gray after nine years of wear (Eaton-Magaña, 2014; figure 2, center), whereas ours was graded as Fancy blue (figure 2, right). This was also the first undisclosed client-submitted CVD-coated diamond with blue color identified by GIA. The lack of disclosure and the Fancy blue color grade have significant consequences for the trade. Consequently, our note was translated to Chinese and Japanese on GIA’s website.

Figure 2. Left: GIA coated three near-colorless natural diamonds with CVD film on pavilion facets in 1991, changing their color to dark bluish gray. Center: In 2005, Dr. Eaton-Magaña coated her own diamond with CVD film, again on the pavilion facets, and achieved a Fancy Dark brownish yellowish gray color. Right: A client submitted a Fancy blue diamond, coated with CVD film on the table facet, for a Colored Diamond Grading report in April 2017. It was the first blue synthetic overgrowth on natural diamond identified by GIA.
The Lab Notes section is intended for new findings at GIA laboratories, especially among client-submitted stones. Unlike research papers, the entries are meant to be short. We try to choose only the most appropriate references. Fritsch and Phelps (1993) described the deposition method of the CVD layer and characterized the CVD-coated diamonds using spectroscopy and gemological methods. That same year, Yacobi et al. (1993) published a paper about growing CVD films on type Ia natural diamonds. They deposited the CVD film on the (001) and (111) planes at various temperatures. They discussed preferential incorporation of defects at different crystallographic planes using cathodoluminescence and Raman spectroscopy. Although Fritsch and Phelps (1993) is an important study, we felt that Yacobi et al. was a more comprehensive reference for our lab note.

Our team respects Prof. Fritsch’s invaluable contributions to gemology, and we thank him for taking time to comment.

Kyaw Soe Moe
GIA, New York Source: GIA @topic:4


Title: Chipping Away at the 1,109 ct Lesedi La Rona: 60 D Flawless Diamonds Abstract: Left top, the 1,109 ct Lesedi La Rona minus the portion to produce the first polished stones. In all, Graff expects 60-plus D fl diamonds from the rough. The largest portion of the rough is still under study and the size and shape of the signature diamond remains undetermined. Photo courtesy of Graff.

London jeweler Laurence Graff unveiled the first diamonds polished from the 1109 ct Lesedi La Rona, which is expected to yield some 60 stones ranging from under one carat to over 100 cts, according to the company.

Second only to the 3,106 ct Cullinan, the diamond was found in the Kerowe mine, Botswana, in November 2015 and put up for public auction in 2016, where it failed to achieve its reserve price of about $70 million. Graff purchased the diamond for $53 million in September 2017.

Graff’s diamond cutters carefully analyzed the diamond for several months before making the first cut. The company did not detail the exact carat weights of the finished diamonds, but the website noted that “Graff designers have envisaged a collection of striking rings, earrings and pendants that celebrate the extraordinary provenance of the Lesedi La Rona diamonds at their heart.” All will be graded and inscribed with the Lesedi La Rona provenance by GIA.

The largest portion of the rough is still being worked on, though no estimate of how large or how many more diamonds will be made from the remaining portion have been announced.
ARGYLE TENDER
The 2019 Argyle Pink Diamond Tender saw a 2.28 ct Fancy Vivid purplish red achieve the highest price for any diamond in the 34-year history of the company’s colored diamond auctions. The diamond, named the Argyle Muse, was cut from a 7.39 ct piece of rough. The buyer and the price of the diamond were not disclosed. The other highlight of the tender, a 3.14 Fancy Vivid pink, went to Glajz THG of Singapore for an undisclosed price.

All of the 63 diamonds in the tender, which weighed a total of 51 carats, were graded by GIA.
DIAMOND MARKET
The credit squeeze, high operating costs and financial problems caused a significant drop in the number of diamond manufacturing operations worldwide.

Ronnie VanderLinden, president of the International Diamond Manufacturers Association, reported at its semi-annual meeting that the decline was “changing the landscape of diamond manufacturing,” according to press reports.

VanderLinden said the decline has affected most manufacturing centers, including Africa where many operations that had begun to increase employment and skills in source countries have faltered. Many of these operations were part of large Indian firms that have experienced financial difficulties in recent years because of lagging polished prices and severe credit cutbacks. In China, he noted, diamond manufacturing employment is down to about 5,000 from a high of 40,000.

He said the health of the diamond industry depends greatly on the health of diamond manufacturing.
ALROSA
A sharp fall in the value of the Indian rupee coupled with on-going credit shortages caused Alrosa, Russia’s diamond mining and sales operation, to sharply cut its sales of small diamonds for its October allocation. Sales that month were $234 million, a 28% decline from the same period last year.

The company said its production and total yearly rough sales will be down by about 9% to 37 or 38 million carats. Last year it sold 39.6 million carats.
CONSUMERS
Consumer confidence registered a slight increase in October, despite wild fluctuations in the world stock markets, according to the Conference Board monthly survey.

“Consumer confidence increased in October, following a modest gain in September, and remains at levels last seen in the fall of 2000,” said Lynn Franco, senior director of economic indicators at the Conference Board. “Consumers’ assessment of present-day conditions remains quite positive, primarily due to strong employment growth. The Expectations Index posted another gain in October, suggesting that consumers do not foresee the economy losing steam anytime soon. Rather, they expect the strong pace of growth to carry over into early 2019.” Source: GIA @topic:8


Title: 2018 GIA Symposium: The Future Belongs to Those Who Adapt Abstract: The “Futurescape Forum” closed GIA’s sixth International Gemological Symposium with a lively discussion on the future of the gem and jewelry industry, including challenges and opportunities. From left: David Ager, managing director of executive development, Harvard Business School; Kent Wong, managing director, Chow Tai Fook; Rahul Kadakia, international head of jewelry, Christie’s; Andy Johnson, CEO, Diamond Cellar Holdings; Jason Goldberger, CEO, Blue Nile; Gina Drosos, CEO, Signet Jewelers; and Bruce Cleaver, CEO, De Beers Group. Photo by Denise Conrad/GIA

The future will be robust for businesses and individuals in the diamond and gemstone industry who can adapt quickly to change in both consumer preferences and technology. This was the message from various presenters to the nearly 800 attendees of the sixth GIA Symposium held Oct. 7-9 in Carlsbad, California.

The event featured a gemological research track that brought together scientists and experts from around the world and a business track, conducted by Harvard Business School (HBS) professors, who focused on ways business have responded to disruptive innovations and changing consumer behavior.

Tom Moses, executive vice president and chief lab and research officer at GIA, speaks to attendees at the Richard T. Liddicoat Centennial Gala, which also featured musical performances, hot air balloon rides and networking opportunities. Susan Jacques, CEO and president of GIA, standing left, presided over the event. Photo by Richard Deomampo/GIA
The Symposium’s finale – the “Futurescape Forum” – brought six industry leaders together in a panel discussion moderated by Harvard Business School Managing Director of Executive Development Dr. David Ager: Bruce Cleaver, CEO of the De Beers Group; Gina Drosos, CEO of Signet Jewelers; Jason Goldberger, CEO of Blue Nile; Andy Johnson, CEO of Diamond Cellar Holdings; Rahul Kadakia, international head of jewelry at Christie’s; and Kent Wong, managing director of Chow Tai Fook.

Both the business track and the "Futurescape Forum," which began with an industry forecast via a video from Scott Galloway of the NYU Stern School of Business, centered around several key points:

Technologically driven changes in retailing and trading, and continued consolidation across the value chain, including challenges from giants such as Amazon and an increase in manufacturers selling direct to consumers, bypassing traditional retail channels
Evolving consumer tastes and desires
The need to appeal to a rapidly changing workforce
Disruption caused by laboratory-grown diamonds, both in the marketplace and identification in the labs
Gem sources and sustainable production

Krishna Palepu, professor of business administration at the Harvard Business School, spoke about customer centricity using a case study on Amazon. Photo by Denise Conrad/GIA

Technical Challenges
There was broad agreement that retailers must adapt to technology, not just in sales channels, but in ways it can help individualize each customer.

In one discussion led by HBS Professor Dr. Krishna Palepu, attendees heard a case study detailing the benefits and risks of selling on Amazon. While the company can offer manufacturers and retailers a new sales platform, there is constant pressure to reduce prices, and in one significant instance, the risk of Amazon sourcing products from the same supplier and selling them at a lower price.

In the “Futurescape Forum,” Drosos explained that omni-channel retailing is a necessity because customers routinely cross channels in their shopping experience; starting online and ending in the store. Online channels can enhance the in-store experience by making it possible for customers to make appointments online – 90% of such appointments result in a sale, she noted.

Wong said that 15% of Chow Tai Fook’s sales by volume are done online, but mainly in small gold items and in charms, such as Hello Kitty and Disney characters. At the high end, Kadakia said that 90% of Christie’s auction business is still done by traditional bidding, but the remainder is online, mainly from younger clients buying pieces under $10,000.

“This is how we target younger customers,” he said.

David Ager, managing director of executive development at the Harvard Business School, spoke about authentic leadership using the case of Swiss watch executive Jean-Claude Biver as an example. Photo by Denise Conrad/GIA

Adapting to Consumers
Connecting with consumers in new ways with new messages is necessary today. And, trying to be all things to all people makes everything average, which consumers do not want. In addition, business must adapt to a millennial workforce comprised of people who switch careers often because they value diverse experiences and often do not want to stay for a company over the long term.

The business program, led by Dr. David Ager, managing director of executive development at HBS, analyzed the case of Swiss watch executive Jean-Claude Biver, who helped revitalize an industry beset by competitive challenges from Japanese quartz watches and a lack of new thinking.

Biver managed to communicate his vision of Swiss watches as art and craftsmanship to consumers who valued connoisseurship, and almost singlehandedly revived the industry. The risk was alienating some customers by moving upscale, but Biver, in a video, said he wanted to communicate his passion for excellence in his products to consumers.

Another Harvard session led by Palepu described how Apple’s success was driven by making consumers love technology and equate it as a luxury brand.

“It delivered a difference that the customer wanted,” Palepu said.

The changing workforce was a key discussion point in the “Futurescape Forum.” Goldberger told the audience that organizations should not become too insular and that people with diverse backgrounds bring new thinking. Also, he said, “the reality of today is that tech people move every two or three years, so we have a choice: do we lose them entirely or benefit from their talent while they are here.”

Cleaver noted that there are excellent opportunities to diversify the diamond industry because it traditionally has not been so, while Wong said his company brings in talented designers by offering them a platform to create and sell their designer pieces.

“Talented people need that freedom,” he pointed out.

Johnson added that not everyone wants to switch careers, but businesses must adapt to workers who cannot be on hand full-time.

GIA research scientist Dr. Evan M. Smith presenting his most recent discoveries on “The Formation of Natural Type IIa and IIb Diamonds” during the research track. Photo by Eric Welch/GIA

Natural and Laboratory Grown Gems
Laboratory grown consumed a great deal of discussion in the gemological research sessions and in the “Futurescape Forum,” where panelists agreed they have a place in the market, but that natural diamonds will still be the choice to mark life’s landmark occasions.

Dr. David Fisher, of De Beers’ Technologies, described the evolving technology in detecting synthetic diamond, noting “the key to any detection technique for synthetic diamonds is a fundamental understanding of the differences between them and natural diamonds.” Dr. Sally Eaton Magana, of GIA, offered a summary of CVD grown synthetics seen in the Institute’s labs.

Presenters also detailed methods and challenges of synthetics detection.

The discussion in the “Futurescape Forum” focused mainly on the market for man-made diamonds.

Kadakia said he was confident that natural diamonds will remain the consumer choice because they will always have value, while synthetics will not hold value over time.

Goldberger noted that, while engagement ring buyers invariably prefer natural diamonds now, we cannot take this for granted for the future. He cited the examples of consumers who in the 1990s said they loved browsing bookstores, and then deserted them for online channels.

Cleaver said that synthetic diamonds’ place in the market was firmly in the fun and fashion side.

Research track keynote speaker Dr. Saleem Ali, a Blue and Gold Distinguished Professor of energy and the environment at the University of Delaware, presented "Gemstones and Sustainable Livelihood: From Mines to Markets." Photo by Emily Lane/GIA

Gemstone Sourcing and Production
Dr. D. Graham Pearson, professor at the University of Alberta, Canada, described advances in understanding of how diamonds were formed through geothermal analysis, and Dr. Steven B. Shirey, of the Carnegie Institution for Science, talked about how to interpret diamond ages by studying mineral inclusions within the stones.

Sustainable gem production and trading was also an important topic at the Symposium.

Dr. Saleem Ali, of the University of Delaware, said gemstones had a good story to tell: they are passed down through generations; they are an important source of wealth transfer from rich nations to poorer ones; and gem origins often determine value, which provides a base for consumer assurance.

In the “Futurescape Forum,” Cleaver related the economic and political success of Botswana, once one of the world’s poorest nations. Diamond revenues, he said, coupled with good governance, helped transform the country into one of Africa’s most prosperous nations.

Echoing Ali, he said “it’s a story not always told – the good that diamonds can do in employing people and development.”

Drosos said customers are interested in knowing the origins of their diamonds and that Signet is working to acquaint all of its employees with its corporate social policies regarding sourcing.

Wrapping up the Symposium, GIA President and CEO Susan Jacques said, “The future of our industry is incredibly bright. Disruption is not unique to gems and jewelry, and these challenges are great opportunities.”

“Embrace innovation and embrace change, for those most able to adapt to changes survive and thrive.”

The Symposium proceedings will be published in the Fall 2018 issue of Gems & Gemology, GIA’s quarterly journal, which will be available at no cost on GIA.edu in November. Source: GIA @topic:9


Title: National Retail Federation Predicts a Cheery Holiday Abstract: This regal diamond brooch/hair ornament ripples like a lacy diamond ribbon and centers on a ruby and diamond cluster (6.89 carats). It was made by Bachruch, of Budapest, circa 1900 and was given by Archduke Frédéric of Austria to his daughter, Archduchess Marie Anne of Austria, Princess Elie de Bourbon Parme, for the birth of her son, Charles, in 1905. It will be offered at a Nov. 12 Sotheby's auction. Courtesy of Sotheby's

The National Retail Federation (NRF) says that all of the building blocks are in place for a strong 2018 holiday season in the U.S. – it is predicting an increase of 4.3% to 4.8% over last year.

The NRF said the strong economy, wage growth and rising consumer confidence should offset concerns of rising prices from escalating trade tensions to bring consumers to stores and online marketplaces. One caveat – the survey was completed before the mid-October stock market volatility.

Online sales continue to take a bigger slice of the retail market, but many traditional retailers are adapting to the cyber market to claim their share. Retail sales will be done increasingly across multiple “channels” (online, mobile and in-store), according to top retail executives who spoke at GIA’s October International Gemological Symposium.

Jason Goldberger, CEO of Blue Nile, noted that in the future “nobody will be talking about retail channels” because they will blend into an overall shopping experience. Gina Drosos, CEO of Signet, the parent company of Kay Jewelers, Zale Corp and Jared the Galleria of Jewelry, said this is already the case because many sales begin online and end in the store.

The Conference Board’s Consumer Confidence Index hit its highest point in 18 years last month with a solid majority seeing the U.S. economy continuing to improve for the remainder of the year. Consumers surveyed also noted a strong job market as the main reason for their optimism.
DIAMONDS
De Beers’ October cycle (sight) sales totaled $475 million – a sharp rise from the same period last year. De Beers’ Group CEO Bruce Cleaver said the Indian rupee/U.S. dollar exchange rate (the rupee has fallen 15% against the dollar this year) “impacted demand for lower value categories” but that the rough market remains strong from U.S. demand.

In China, the on-going trade war with the U.S. has created a lot of uncertainty among retailers there, so they are taking a very cautious approach. (See September 2018 Industry Analysis).

The declining rupee affects smaller Indian diamond manufacturers who deal on the local market more than larger, international firms. The large India-based diamond firms have U.S. dollar accounts so their costs actually have declined a bit in recent months as prices have softened. Smaller companies, who have to pay in rupees, have seen rough prices rise as their currency declines.

Increased recovery and sales of larger diamonds helped Alrosa report a 9% year-on-year increase in rough sales to $331.6 million. Russia’s diamond producer noted the decline in demand for smaller goods as well, but said increased sales of 2 carat-plus rough and “specials” over 10.8 carats have increased.

This 18.96-carat Fancy Vivid Pink diamond will be offered in the Magnificent Jewels auction Nov. 13 at Christie’s in Geneva. Courtesy of Christie’s

AUCTIONS
Sotheby’s Geneva is set to auction an array of royal jewels that belonged to Marie Antoinette and others in mid-November. The Royal Jewels from the Bourbon Parma Family sale on Nov. 12 will feature important pieces that belonged to the French queen, as well as other rulers from the Habsburg and Bourbon families. The jewels had been kept under wraps for nearly 200 years before resurfacing this year.

Christie’s is trying to capture some of the auction attention by offering the 18.96 ct Pink Legacy, a GIA-graded Fancy Vivid pink diamond that is property of the Oppenheimer family on Nov. 13. De Beers’ is hoping the diamond will shatter the world record price for a pink diamond, which stands at $46 million. Source: GIA @topic:8