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Sunday, June 10, 2007

Identifying Treated And Synthetic Gems: The Dealer’s Perspective

Robert Kane is a former staff of GIA and now a fine gemstone dealer. His views are valid today because today it's ninety five situaion: Transalation = ninety five percent of the dealers in the industry are not properly trained; only five percent is properly trained and continuously keep learning by taking refresher courses + attending seminars + workshops on new treatments, synthetics, imitations and new gem varieties. The amazing thing is most gem dealers are of the illusion that they don't need training; they are already successful by their own virtue, luck, connections, money + they think they know more about gemstones than a gemologist. The world has changed so dramatically that if you are living in the US or Europe you must always watch your back with plan B, C, or D because you don't want to get into legal problems, while in Asia, Africa and South America there are no binding consumer protection laws; at times it's like two blind walking the streeet situation. Buyer beware!

Robert Kane (President/CEO, Fine Gems International, USA) writes:

In gem treatments and synthetics, there have been more developments in the last 10 years than in the previous 50 combined. Since the 1999 Symposium, we have seen, for example, the commercial availability of (1) HPHT-treated diamonds in a variety of colors, (2) various colors of faceted synthetic gem-quality diamonds, (3) beryllium-diffused corundum, (4) poor-quality opaque corundum that has been transformed into transparent red gems by filling fractures with high-lead-content glass, and (5) diffusion ruby, which proved to be synthetic ruby overgrowth on natural corundum. It is critical that we identify and disclose these products if we are to maintain consumer confidence.

Although most of these treatments and synthetics are based on sophisticated technology, many can still be detected through precise gemological testing and observation. And when routine testing does not yield a definitive identification, major gemological laboratories can identify nearly all of them using advanced instrumentation. This presentation discusses approaches that members of the industry can take to deal with the constant influx of these new materials.
When examining a gem, the experienced gemologist systematically rules out the treatments and synthetics known for that particular stone. By running through a list of possibilities and how they are identified, one can identify the gem in question using standard observation and testing, or make an informed decision on a proper course of action, such as submitting the gemstone to an internationally respected gem laboratory for testing. The challenge is to recognize when the identification is beyond your knowledge level—to know when you don’t know.

By not facing these difficult issues, and thus buying and selling blindly, you open yourself and your company up to loss of reputation and to liability that could result in financial loss.

Gem Identify Assurance Program
One way to address these identification challenges is to develop a gem identity assurance program for your company based on gemological knowledge, trust in your suppliers, security through lab reports, and determining the level or risk that is acceptable in a given situation.

Gemological knowledge
Decades of scientific research by groups such as De Beers, GIA, and others have provided practical solutions to identification problems created by the proliferation of treated and synthetic gems. You can—and should—take advantage of this information by (1) regularly reading the gemological journals; (2) attending seminars held during trade shows such as at Tucson, Las Vegas, Basel, Bangkok, and Hong Kong; (3) taking specialized training at laboratories such as SSEF and AGTA; and (4) availing yourself of resources such as the De Beers CD-ROM Diamonds and books on specific topics—for example, GIA’s Gems & Gemology in Review: Synthetic Diamonds. There are also many educational programs available around the world to fit most needs.

There is no substitute for up-to-date gemological knowledge and solid experience. To this end, you should also consider purchasing your own gem-testing equipment, a portable lab, or-depending on your circumstances—a complete advanced gem testing laboratory.

Trust in your suppliers and financial resources
It is very important to buy gems from a trusted and knowledgeable supplier—one who will refund your money if testing reveals that the gem is not what it was represented to be. Always demand full disclosure regarding treatments and synthetics in writing on the invoice—if the seller will not comply, then find a new supplier. Buy from companies that belong to organizations such as ICA (International Colored Stone Association), AGTA (American Gem Trade Association), AGS (American Gem Society), TGJTA (Thai Gem & Jewelry Traders Association), WFDB (World Federation of Diamond Bourses), and the like. Members of such organizations must adhere to rules of ethical behavior, and the organizations can and will issue sanctions if these rules are violated.

Security through laboratory reports
Establish a company policy whereby all gems over a certain monetary value, or certain kinds of gemstones, must have a report from an internationally recognized gem lab. On expensive gems, obtain reports from at least two different labs. This is particularly important when geographic locality reports are required (because these determinations are not an exact science, the second lab may indicate a different origin, which case a third report is needed). Lab reports help protect you from future liability problems with your clients.

Risk tolerance
Determine what level of risk is acceptable. Certainly, the buying and selling of a 1ct purplish red diamond warrants an updated GIA lab report. Yet it may be reasonable to accept the word of your supplier (who knows the chain of custody and guarantees it in writing) when purchasing small amethysts, various colors of small sapphires, or parcels of emerald melee. Although you do run some risk that a mistake has been made, for most dealers the risk is manageable. Again, though, this depends on the specific situation. If a parcel of 2.0mm yellow sapphires are going into an expensive piece of jewelry featuring 200 such stones, testing (or at least spot-testing) would be required to ensure accurate representation of the entire piece.

Buying and Testing scenarios
Following are two examples of buying and testing situations.
Scenario 1
A large blue (synthetic) sapphire
A dealer is offered an 8ct superbly cut, clean, intense blue sapphire—set in an antique mounting—for $10000. However, it is not accompanied by a lab report. During very careful examination with a darkfield binocular microscope and diffused lighting, she sees subtle curved color zoning—proving that what appeared to be a magnificent natural gem was actually a flame-fusion or Verneuil synthetic sapphire. In 2005, a natural-color Sri Lankan sapphire of this size and apparent quality sold for $30000; a comparable Burmese sapphire sold for $55000. If it seems too good to be true, it probably is.

Scenario 2
A 3+ ct Unheated Mogok ruby
One gem dealer offers another a 3+ carat ruby, accompanied by a report from a gem testing stating: Burma, no indication of thermal treatment. Microscopic examination revealed inclusions characteristic of untreated Mogok rubies, such as unaltered rutile needles and small calcite crystals. It also revealed a small fracture extending from the crown facets toward the girdle. The second dealer’s prospective buyer was willing to pay in excess of $100000 for the stone, but wanted a report from a certain US laboratory. That lab reported evidence of clarity enhancement—specifically, foreign material filling the surface reaching fracture, which is typically done in an attempt to reduce the fracture’s visibility. After the stone was soaked in acetone for several days (with the first dealer’s permission), the filler was no longer present, causing the fracture to become more prominent. The client was no longer interested in the ruby, and the gem dealer lost the sale. As mentioned above, with high value gems it is good to obtain reports from two different laboratories.

Navigating the challenges ahead
To maintain vitality and confidence in our industry, it is critical that we stay up to date on technological developments in gem synthesis, treatment, and identification. Learn what is in the market, how to identify it, and when to refer a gem to a recognized laboratory for advanced analytical testing. Buy from a trusted and experienced source. With expensive gems, this can be backed up by laboratory reports. The rapid advances in technology will inevitably bring challenges to the gem and jewelry industry—some will present positive opportunities, while many others will create daunting gem identification issues. Vigilance in pursuing knowledge will insure that our industry continues to flourish.

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