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Saturday, June 16, 2007

Gemstones Of The Future

Joel Arem writes:

Jewelry store is where the public learns about stones. And the typical jeweler’s business in colored stones is only 10% +/- of his overall trade. Because of this most jewelers are not well informed about colored stones and cannot effectively promote them. A cyclical chain of events begins here at the jewelry store and ends there as well. What is not offered to the public, the public has no chance to discover, and without awareness there is no demand. Therefore obviously without demand, there will be no sales or increased sales. The break in this vicious circle will come only through education. As we all know, education in the form of advertising is expensive but this is what is needed to change the direction of the gemstone market. The best example of this is the classic success story of the diamond industry on a grand scale and the familiar story of tanzanite on an impressive smaller scale. We, the gemologist, jeweler and gem dealer, have the responsibility to educate the public about what gems are available. This can be accompanied by increasing the varieties displayed and more importantly knowing all there is to know about each and every one of them. Of the 259 mineral + species only 30-40 are durable enough for us in jewelry and of the remainder about 15 are seen with regularity and are considered commercial. The rest are either too soft or fragile and should be classified as what he terms the ‘collector’ stones or ‘exotics’.

It is necessary to consider some of the reasons why diamonds are so popular. The first consideration is supply. There is sufficient quantity available to be marketed on a large scale. The market was created and maintained brilliantly. What the public buys is what the public sees. If gems are not shown to the public through the jewelry stores and if they are not promoted at this level, they will never become popular. There is also a fine balance between supply and demand. Some gemstones have disappeared from the marketplace due to exhausted sources. Gems are like oil wells, when they are depleted that’s the end. You go to some place else.

The real excitement will come when the gemologists can convince the jewelers to learn, to promote and to teach the public. This will achieve a ground swell of interests that will result in exposure, high prices, more enthusiasm and mining + new localities. It will all start to happen. It’s our job and our challenge.

Friday, June 15, 2007

Deal Cut On Elephants And Ivory

Richard Black writes about the deal made by South African nations on the immediate future of the ivory trade @ http://news.bbc.co.uk/2/hi/science/nature/6751853.stm

Blue Nile Blues

Rob Bates writes about Blue Nile, the thriving dot-com company that has been around for only eight years with striking sales of US$300 +/- million @ http://jckonline.com/article/CA6447692.html

Blood On The Stone

The documentary "Blood on a Stone" traces the diamonds to legitimate mining companies in the Kono region of Sierra Leone and show that living conditions are primitive, with no schools for the worker's children, no electricity for their homes, and no hospitals. Like company-employed miners, illegitimate diamond miners, who may find a diamond every two or three years, have never heard of the Kimberly Process and have no idea of the eventual value of the diamonds for which they live and die --- and they do die. The Kimberly Process is a start, but the lives of Sierra Leone's poor still receive no benefit from even the legitimate diamond industry.

More info @ http://www.cnnasiapacific.com/programs/en/program/54/

When The Music Stops

Chaim Even-Zohar writes about the musical chair-like scenario, the game currently in progress in the diamond industry @ http://www.idexonline.com/portal_FullEditorial.asp?TextSearch=&KeyMatch=0&id=27534

Synthetic Stones

There are many in the industry with different views on how to describe a synthetic gemstone. I totally agree with Tom Chatham. He has been misunderstood + he has every right to air his views on his product. The world is changing and people are buying Chatham created stones.

Thomas Chatham writes:

Profit is the best test of created gems and over the years of my association with the Chatham emeralds and rubies, I have most often heard the following question: “How can I sell something not real? Or the statement: “I only sell natural gemstones in my store.”

When I hear those declarations of allegiance to natural stones, my reaction is swift, after muttering a silent prayer for the soul of the retailer who has just uttered those fateful words. “It’s not you the retailers lack of understanding,” I tell them, “It’s the marketing philosophy that has been projected to you that is directly opposed to every rule I know about retail store management.”

It can be difficult to comprehend that we actually grow emerald and ruby crystals that are the same as those nature grows. I realize not everybody is an FGA or GIA graduate. After all, to suggest to anyone that you can do exactly what nature does is a little hard to swallow. But that’s exactly what my father did learn how to do over fifty + years ago. However, it was not the equivalent of re-inventing the wheel when his results were emeralds. He only discovered the right door and the right combination to unlock that door through which emeralds would flow. Carroll Chatham discovered not a process which produces emeralds and rubies, but a set of conditions which duplicates the environment in which nature will grow an emerald or ruby crystal for him.

Chatham does not manufacture the emerald or rubies—nature does, under conditions controlled by Chatham. There is nothing artificial about the emeralds or rubies sold by Chatham.

Now back to the retailer who has just told me he sells natural stones only. AS he flicks an imaginary piece of lint from his lapel, I can’t help but see the four carat stone in his pinky ring.

‘Coke bottle,’ I think myself.

‘Aha…beautiful Peridot,’ I purposely misidentify.

‘That’s a natural emerald,’ he immediately retorts. (I look for the aura to form around him.) What has offended my ear is not his lack of chemistry background (why should he have any?) but his lack of business sense. The jewelry industry today is one of the last trades that is struggling through the process of evaluating its purpose and direction.

And it’s not good business for a jewelry store owner or buyer to say that he won’t sell something that should be right in the middle of his inventory. I don’t care what an individual like or dislikes personally. It’s not important whether he’s white or black, French or Chinese. Or if he will only wear 18K gold or insist on chrysoberyl cat’s eye for his personal jewelry. What he should care about is why we’re all in this business. We’re in it to make a profit—not convert to our own personal likes and dislikes. You and I serve the public. Some things they like, some they don’t. That’s the system and the public will decide. Up until now, the public decided it wanted everything you showed them. As a matter of fact, there were so many people out there eager to buy that you could show them only what you liked and still have a good business. But not any more.

Things have changed a little. And they’re still changing. Gold has gone crazy in price, and you can’t profit from it. Diamond prices are momentarily unstable, and the price of decent-looking emeralds not within everyone’s reach and good rubies has skyrocketed out of sight. Discount houses are moving in right and left. Department stores are upgrading their lines.

“How can they do this?” you ask yourself, “Why would anybody buy fine jewelry in a discount house? I have fine jewelry.”

The answer is that discount houses and department stores are into marketing. They’re in the business to make a profit and they have to sell merchandise. They know there is no room in their marketing philosophy for personal preference in products. They feel the public is out. If they see a winner they go all out. Sure, they have their likes and dislikes, but not to the extent of eliminating an entire section of their inventory. It’s that attitude that makes me want to climb the showcase at a trade show. They buyer that announces their store will sell only natural stones is telling me:

“We limit ourselves.”

“We actually turn away business.”

Now, just so you don’t think Chatham is just chewing on sour grapes, I’ll share a little inside information with you.

Please keep this confidential.

Our yield of cut stones, with maximum success in the lab (no goof-ups by Mother Nature—a common occurrence) would only supply three one carat stones to each jewelry store in the US. But we don’t even come close to doing this. We still have set backs in the laboratory and we are constantly short of material.

Expand? Sorry, but we have no more family members available to help in the lab. Anyway, why grow more emeralds when I hear people at trade shows making proclamations of abstaining from purchasing all but the stones found in the ground?

“If Chatham would make a big splash at the public with national advertising in all the major consumer books, a direct campaign four or five times a year, or perhaps sponsor a TV special like the Osmonds, we’d love to handle your stones,” says the retailer.

Well, I couldn’t pay for it. Nor could I justify it in view of our limited supply. It would create a market that I could not supply. Don’t get confused with the idea that selling the finest natural gemstones should mean that’s the only thing you should sell. It’s not so much what you sell that is responsible for building the reputation you seek, but how you sell and represent the products you offer.

The way we live and the consumer goods we consume reflect the highest standard of living in the world. To achieve this luxury we have all had to re-evaluate what is acceptable to give us the overall ‘Best of Life’ conditions. Our clothing is derived all from natural fibers grown in artificial environments or just plain made from scratches with nylon or rayon.

The jewelry industry today is one of the last trades that is struggling through the process of evaluating its purpose and direction. In the beginning, only royalty had the wherewithal to possess jewelry with precious stones. Over the years, spectacular economic growth has led to sales of fine jewelry the average person can afford. However, that progression is now in danger. Due to a multitude of reasons, the cost of the basic materials in jewelry has risen at an unprecedented rate, which, if it continues, will once again put fine jewelry as we know it today, in the reach of only the wealthy. Man-made gemstones may help answer that dilemma, since they do not cost as much as natural gemstones. That lower price means that the beautiful gemstones do not have to move beyond the reach of the middle class.

What will happen to natural stones? Will their value fall? How can the jeweler sell something he may not be able to separate from a stone found in the ground? As with the reaction to other advances in chemistry, those who think they will be adversely affected by these advancements have a natural inclination to mistrust or outright disbelieve the assurances of the ones who made the discoveries.

After all, these discoveries may make them obsolete. But just as there will always be the customer for a Rolls Royce, there will always be that customer for the $50000 per carat emerald or ruby. As for the separation between the stone grown in the ground and the one grown in the laboratory, reputable dealers and gemologists will solve the problem.

I hope man-made gemstones will soon arrive at the same position of prestige in the eyes of both the trade and the general public as cultured pearls enjoy today. There was once a preoccupation with the separation of natural pearls and cultured pearls. By the time the experts determined a method on separation, no one cared. Somebody finally said, “Hey, what’s the big deal?”

Sure some people were hurt in the transition. But, today there are more pearls than ever being sold. Although exclusivity has been traded for volume, natural pearls still command high prices. True synthetic gemstones are an opportunity for everyone to enjoy and possess the original beauty responsible for gemstones becoming so sought after in the first place.

Thursday, June 14, 2007

Mikimoto's South Sea Pearl Grading System

The pearl house Mikimoto has created a proprietary grading system for its South Sea cultured pearls collection similar to its Akoya grading system established in 1974.

Useful links:
www.mikimoto.com
www.mikimotoamerica.com

DTC Sights For Rough Producers

Chaim Even-Zohar writes about DTC sight application + Mining Competitive Policy + Supplier of Choice assessment process + the DTC policy implications @
http://www.idexonline.com/portal_FullEditorial.asp?TextSearch=&KeyMatch=0&id=27497

The Gilson Opal Triplet And How To Make It

Julius Lippa and Pierre Gilson writes:

The opal triplet is a three piece gemstone made by cementing together a thin piece of precious opal sandwiched between a backing piece and a layer of optical quartz or other hard clear material.

Gilson opal: Gilson 'T' Quality opal is specifically made for triplets. It was created to satisfy the wishes and desires of countless opal lovers for the ideal material.

No matrix: Gilson opal is 100% usable since it is solid opal with no matrix.

Toughness: Gilson opal is tougher, harder and can withstand more heat than most opal. However, as with any fine gem material it deserves to be handled with care.

Material list

Opal: Triplet grade precious opal.

Cap material: Optical quartz, (natural or synthetic), sapphire or hard optical glass.

Base material: Jade, opal potch, agate, jasper, basenite, obsidian, glass or plastic.

Epoxy: Two part epoxy which dries water clear.

Lampblack: Lampblack for backing if needed or desired.

Lapidary equipment: Equipment necessary to make flat surfaces and to finish a cabochon.

Steps to follow

1. Color: Wet opal with clean water to show color pattern.

2. Orient: Orient opal for best color pattern for sawing.

3. Sawing: Use thin saw blade to avoid wasting opal in saw cut. Use a saw vise or a steady rest rather than trying to do this freehand (see # 7 opal thickness)

4. Grinding: Assuming that your saw blade leaves smooth areas on the sawed materials start with # 220 abrasive, then go to # 600 abrasive. It usually is not necessary to go beyond # 600. The perfectionist who continues to finer finishes such as # 1200 or finer (a semi-polish) will then have the brightest triplets.

5. Method: The individual method of grinding flat surfaces depends upon available equipment, personal preferences or techniques such as:

a) Abrasives of various sizes used on a sheet of flat glass. (use entire surface area so low spots do not develop)

b) Wet or dry abrasive paper used on flat surface.

c) Faceting laps. (highly recommended and used by Gilson Labs)

d) Flat-faced diamond discs. (highly recommended and used by Gilson Labs)

6. Cleanliness: Wash hands and material being worked on after each step to avoid contamination.

7. Opal thickness: How thin to grind the opal depends upon personal preference in color. Usually the thinner the opal the darker the color. As a starting point begin at 0.20mm (.008 inch) slices and if you feel it is necessary work the opal thinner until color suits you. (See # 16)

8. Base thickness: Base thickness 1/16 inch (1.6mm) or as desired to fit mounting. Put a 30 to 45 degree angle on base to clear mounting.

9. Cap thickness: Cap thickness can vary from 1/16th inch to ¼ inch (1.6 to 6mm). This is an area where the size of the triplet and personal tastes dictate the answer. The thicker the cap the more the magnification effect, but also the heavier the triplet becomes.

10. Components: The base and cap materials receive similar treatment as the opal to get to a finished surface. The exception would be when caps in their finished state are cemented to the opal and are not formed from an original piece of rough material.

11. Cleanliness: Before cementing any triplet components together we come to a very important subject; Cleanliness which is the secret of a good bond. Clean all surfaces which are glued together with acetone. Let dry, then clean with alcohol.

12. Cleaners: Cleaners cementing leave residue, therefore freshly ground surfaces after step 11 above can be rinsed with clean water and allowed to dry on clean paper or rags without ever again touching the ground surfaces with your fingers or anything else prior to joining together.

13. Heat: Dry opal, cap and base materials at temperatures under 180 degrees Fahrenheit (82 degrees centigrade) in oven, or on top of oven near pilot light or under an electric light bulb. Bring up to drying temperatures gradually ( see # 20)

14. Three parts: When all three parts of the triplet (flat surfaces) have been prepared they then are joined together, two pieces at a time, with a two part epoxy which dries water clear. (see # 19 for use of lampblack)

15. Handling: For ease in handling after one surface of the opal has been finished glue finished surface to backing or cap to grind opal thin enough to get best color (see # 19 for use of lampblack)

16. Checking for color: Wet the opal cemented to cap and place on a shiny black surface such as a piece of glazed tile to judge when color is clear and bright. If color does not suit your tastes, grind thinner until it meets with your approval, alternating between grinding and checking until you are satisfied. Repeat same method of checking and grinding for opal mounted on backing.

17. Assembly: Mix epoxy gently to avoid air bubbles and apply epoxy in thin layer to both surfaces which you join together. These two components should be warm when put together. Put the two pieces together with firm finger pressure and a sliding motion to squeeze out air bubbles and surplus epoxy. Use little clamps, clothes pins, weights, etc. to hold parts together until epoxy sets properly (24 hours).

18. Surfaces: All surfaces which are joined together must be flat, clean, dry and scratch free. Any uneven area between surfaces may capture air and be visible as air bubbles or opaque spots.

19. Lampblack: The use of lampblack in the epoxy gives a bright black shiny surface to the backing material and also permits the use of base materials which are not black originally. The amount of lampblack to use in epoxy is about .5mm in diameter for a 10 x 12 mm stone. It is a trial and error method easily learned after a few trials on test materials.

Note: Using too much lampblack degrades the epoxy resulting in a weak bond and using too little lampblack results in epoxy not being dark enough. Most black materials become sufficiently reflective with use of clear epoxy and addition of lampblack is not needed.

20. Water: Use plenty of water when working with the opal to keep it cool. Do not lean the hard way that overheated opal may crack or craze.

21. Clarity: Everything possible should be done for utmost clarity and a part of this process is to use an epoxy which dries water clear. Any coloring in the epoxy between the cap and the opal will dull the color of the opal.

22. Cap: The cap used over the opal must be flawless and water clear since this domed crystal cover both magnifies and enhances the colors and patterns while at the same time protecting the opal.

23. Color change: Experimentation with various base materials revealed that the red and pink colors in an occasional piece of opal from any source would be greatly improved when backed with a bright red material. In opal which exhibits this phenomena the red and pink colors are already visible. These make up into very pleasant stones when backed with black, however, some people think the red backing produces a great improvement.

24. Base: Almost any strong material can be used which expands and contracts at approximately the same rate as opal. (avoid brittle materials)

25. Durability: Opal like glass is six on the Moh’s scale of hardness. Cementing a quartz cover on top of the opal increases the hardness to seven plus or to nine with a clear sapphire cover.

26. Free forms: Free form triplets with their unique charm are especially adaptable to modern jewelry, lending themselves to great variety of design.

27. Good food: You well may ask how <> gets into an instruction sheet on triplets. It was inserted to remind you that like good food the triplets you make can only be as good as the ingredients used and the skill and craftsmanship of the worker.

28. Black opal: The opal triplet probably was created by an unknown genius to save and use thin bands of precious opal. He little realized that his brain child often leads to confusion between genuine black opal and very good triplets even amongst those in the jewelry trade. This sort of confusion can occur when a thin cap is used and the juncture of cap to opal can not be seen when hidden in a mounting.

29. Magnifying lens: A magnifying lens is a handy item to use when assembling triplets so you can look for air bubbles and if any are objectionable to you then slide the parts apart and wash off with alcohol, dry and try again.

30. Other opal: Precious opal suitable as triplet material from any of the world’s sources may also be processed with these instructions.

31. Lapidary: It is assumed that the reader has mastered the techniques of lapidary. Finishing the triplet is simply the process of making a cabochon.

These are some mistakes people have made and things to avoid:

- Opal slices used so thick that black backing has no effect.

- Despite emphasis on using clear cap examples of window glass with all kinds of inclusions, bubbles, etc., as well as quartz with flaws and yellow discoloration have been used with poor results.

- Opal used in wedge shape so one end of triplet is dull and the other end bright.

- Epoxy mixed on a dirty surface resulting in triplet with a weak bond or visible dirt within.

- Using very old epoxy with the catalyst spoiled so the epoxy will not harden properly.

Jewelry Appraisals

Kathryn Barcham writes:

Jewelry appraisers are often asked to explain the service they offer and why this is necessary. An appraisal service is usually established for the purpose of:

1. Supplying estimates of replacement costs that will suffice for insurance purposes.

2. Estate appraising for tax purposes.

3. Advice on private sales between two or more persons.

4. Personal interest.

A jewelry appraisal may be offered by the jeweler when the item is purchased and is insured for the retail value. Appraisals may also be done by a gemologist or other person familiar with current prices. Appraisal of merchandise purchased elsewhere should not be attempted unless the appraiser has the training and equipment necessary to identify and classify according to quality all the materials and jewelry brought to this attention. Naturally any jeweler can appraise merchandise sold by his firm, since he knows its quality and retail price but appraising jewelry sold by another firm or brought in another country can cause problems since there is a rather wide variation in markup used by different types of firms for smaller merchandise. Their valuations must relay on fair market value which can best be described as the estimated cost of replacing each item through the firms own suppliers as of that date.

Estate appraisals or similar appraisals are usually considered on the basis of immediate or so called distress values i.e value of an article is determined by what it could be sold for immediately. Most appraisers determine this price by considering what they would be willing to pay for the item at that time or what they estimate it would bring at auction.

Accepting jewelry for appraisal
1. Ask the customer to state the reason for appraisal as it may influence the valuation, e.g. estate duty, personal insurance, personal interest etc.

2. Considerable caution should be exercised when accepting jewelry for appraisal particularly when it is to be retained for a considerable length of time. Most people are unfamiliar with the quality of their jewelry and are frequently under the impression that it is more valuable than it actually is. In such instances, if the jewelry is returned with an appraisal that lists the damages or imperfections that the customer was not aware of, the appraiser may be accused of substitution. The piece should also be examined closely under a lens, or preferable with a microscope, and the customer’s attention called to any serious imperfections or blemishes in the stones and any serious damage or wear to mounting. Many people assume that all antique pieces are genuine and are not aware that man-made rubies have been on the market since 1904, synthetic sapphires since 1910, synthetic spinel (primarily imitating aquamarine, sapphire and zircon) since 1920’s and synthetic emeralds have been commercially available since 1950’s. Although synthetic gem quality diamonds of cuttable size, have been manufactured, they are not something to worry about at this time since they cost more to produce synthetically than to mine the best quality natural material. On other hand, the market abounds with diamond simulants probably the best known being cubic zirconium (CZ, Gemeron, Blunco Counterfeit Diamonds, etc). A quick test with a Presidium thermal reaction tester or similar instrument will tell whether the stone is a diamond or a stimulant and prevent any embarrassment to customer and jeweler alike.

3. The customer should be issued with a receipt that lists:

a) A brief description of the piece.

b) The number and measurements of important stones and a general description of their quality. (Actual identity should not be listed unless they have been tested.)

c) A statement to the effect that ‘Acceptance of jewelry for appraisals or repair does not constitute an acknowledgment or confirmation of identity or quality of pieces claimed by the owner.” Often jewelers will photograph the piece and this allows for a more accurate reproduction of the item in the event of loss. Customers are often more satisfied with an appraisal that includes a photograph of their jewelry.

Appraisal form
If the customer, as well as the insurance company, is to be given maximum protection, an appraisal must include a complete description of the merchandise. Many jewelers do not abide by this precaution and continue to issued indefinite appraisals that are worded, e.g “One diamond ring retail value of which $ xxx. Insurance companies rarely reject such an appraisal. Should a claim be made on a lost stone, a much less expensive diamond may be substituted for such an imprecisely described ring. On the other hand, should the piece contain an imitation stone, they are liable for replacement with a genuine stone. Therefore the appraisal must include a complete description of the mounting (type of metal and style) together with exact measurements, imperfections, color grades, proportions and finish classifications of diamonds and other gems. A complete appraisal helps to assure the procurement of an exact duplicate of the item or another one of equal value. The appraisal form may be imprinted with the name of the appraising firm with space for the customers address and the date of appraisal. It should be signed by the appraiser.

Appraisal update
Sending annual reminders regarding cleaning, checking and reappraising can be helpful to the customer. Many tend to forget to check the items for damage to stones, worn prongs and shanks, which are the result of normal wear and tear, and to update their policies against inflation. Sometimes when examining jewelry that has been submitted for the purpose of bringing insurance coverage up to current market prices, incorrect grading or identification of stones have been discovered. The reappraisal should contain the correct identification, grading and valuation of the stones at the current market value; even if the value is less than the original appraisal. After checking the stones carefully, merely state what you believe the items would cost to replace in your store. You may find however that the appraisal value will not require change for several years.

Wednesday, June 13, 2007

Actinolite

Crystallography: Monoclinic, bladed crystals, usually elongated; fibrous, columnar aggregates; massive; granular; twinned.

Colors: Light to dark green, blackish green

Luster: Vitreous

Hardness: 5.5

Specific gravity: 3.05 - 3.44

Cleavage: 2 directions, good, often fibrous nature; brittle, compact variety tough.

Refractive index: 1.619 –1.644

Birefringence: 0.022 – 0.026

Pleochroism: yellow to dark green.

Spectrum: faint line at 503nm

Luminescence: none due to presence of iron.

Occurrence: Contact metamorphic limestones and dolomites.

Madagascar: small, dark green crystals.

Tanzania: transparent crystals.

USA

Stone sizes: Actinolite is rarely facetable and usually in small fragments. Material from Chester, Vermont, USA could provide large stones.

Comments: Chatoyant material is cut to exhibit cat’s eye phenomena. Actinolite is a constituent of nephrite jade; easy to cleave and difficult to cut—for this reason it may not be an ideal stone for jewelry. Quartz cat’s eye, Apatite cat’s eye, Chrysoberyl cat’s eye, Cathay stone (man-made glass) may be confused for Actinolite cat’s eye.

Minimalist Approach

"Perfection is achieved not when there is nothing more to add, but when there is nothing left to take away."

- Antoine de Saint-Exupery

The Coming Collapse Of The US Dollar

M R Venkatesh writes about global imbalance + orderly devaluation + the massive size of America's twin deficits: trade and budgetary @ http://www.rediff.com/money/2007/jun/11dollar.htm

Who Owns Most Gold?

(via Commodity Online) If we take national gold reserves, then the most gold is owned by the United States, followed by Germany and the International Monetary Fund.

But if we include jewelry ownership, then India is the largest repository of gold in terms of total gold within the national boundaries. In terms of personal ownership, it is not known who owns the most, but it is possibly a member of a ruling royal family in the East.

The End Of 350 Years Of London’s Distribution Hegemony

Chaim Even-Zohar writes about the current developments at Diamond Trading Company + the ancient diamond trade from India to Europe at various times + world's center of rough diamond: London @ http://www.idexonline.com/portal_FullEditorial.asp?TextSearch=&KeyMatch=0&id=27464

Predicting The Elusive Fourth C

Antwerp Facets (April 2007) writes:

A machine that will predict a diamond’s clarity has proven an elusive goal in the industry. Indeed, the difficulty in doing so left clarity as the only one of the 4C’s which could not be forecast by readily available technology.

An Antwerp company set up last year, however, believes it has created equipment that will give diamantaires the ultimate solution to diamond planning, since they will be able to see inclusions and their precise location.

Matrix Diamond Technology was established by Paul Van der Steen and Ziad Al-Ahmadi. Van der Steen, with 30 years of experience in the diamond manufacturing business, is responsible for the firm’s proprietary technology, while Al-Ahmadi, who has long experience in the cutting and manufacturing of stones, provides the hands-on diamond expertise.

Matrix Diamond Technology came about as the result of a relationship with a Russian company called Octanus. It involves a scanner that measures the outside geometry or topography of the diamond, and then enables the diamantaire, in Van der Steen’s words, ‘to look right into the stone and see what is inside. If you have the exact location of inclusions, this allows the full optimization of the rough stone so that the most highly efficient and high-yielding polished diamond can be produced. This is the ultimate dream, because this gives the diamantaire the map of the rough diamond. The only way currently to get a similar view is to polish little windows on the rough stone to look inside it. Our software shows you the best sawing plane, the best place to cut the diamond for optimal results. That’s why our slogan is ‘Ever dreamt of polishing the same stone twice.’

A built-in price list enables real time decisions on the best cuts and sizes by providing up-to-the minute prices. This means that the system can change the user’s original plans for how he planned to cut the stone. It shows how to cut the main stone and what type and size of satellite stones can be achieved. ‘The Matrix vision is that if you cannot get close enough commercially to the value of the diamond then you will not be able to compete in the market. We are bringing substantial added value,’ Van der Steen explained.

The system’s camera takes 800 shadow pictures as the basis for creating a 3-D model of the stone, and 200 images as the diamond is turned which allows the 3-D model to be placed on top of a picture of the rough. This allows the precise location of inclusions to be seen on the photograph of the diamond. ‘With a microscope you are not able to see as precisely where the inclusions are, but with our system you see its exact location,’ Van der Steen explained, adding that inclusions can be identified down to the level of VVS1.

Regarding the issue of increasing yields, he said there were three levels for achieving this, and thus improving margins. ‘The first one is key weights. There are certain situations where a small difference in weight equals a very large difference in price. Take two stones, one weighing 4.95 carats and the other 5.03 carats. That tiny difference in weight is very large in money terms. It is important to increase the key weights. If you have stones weighing 5.5 carats and 4.7 carats, our system finds solutions that allow for creating two stones of 5 carats each.’

Next, there is the problem associated with the classic approach to rough planning where a relatively large reserve is needed when sawing on the cutting plane for the main stone. This usually means the secondary stone is much smaller due to the need for a reserve. And then, after cutting, the reserve on the main stone is polished off which is clearly a waste of the rough. ‘Due to our precise capabilities, we reduce the reserve and save more of the diamond. Diamantaires want to raise their margins and these are classic ways to do so,’ Van den Steen said.

The third level relates to the optimizing of a stone being cut into two or more diamonds. ‘In the classic way, the main stone is cut, and only then one looks at the possibilities for the other stones. This optimization is important because in a 20 carat stone, for example, the satellite stones can be 3 carats each. Here, you can take an overview of the stone and see all the possibilities right from the beginning.’

Meanwhile, Al Ahmadi, the owner of United Cutting and Marketing, said Matrix is projecting itself to strategic partners such as serious rough suppliers. ‘All diamond companies want to add value to their stock. Miners, for example, are looking to add to their margins. I believe they are selling at a lower price than they could achieve if they knew more precisely what was in the diamond.’

He said the end game for Matrix is as a partner to a big brother and supplying them with high-tech equipment that has been unequivocally proven. ‘The system was born out of necessity since margins have become so small nowadays. A system like this would not have been developed 20 years ago because the margins then allowed all diamond firms, from sightholders to small and medium firms to manufacture and get away with healthy margins. Put simply: the business was easier then.’

Al Ahmadi said many diamantaires were barely making any profit. ‘We are offering solutions based on our knowledge of the industry. The miners supply their clients, but they do not know exactly what their clients are getting from the stones. With our system, we can tell them precisely what is in the stone. Sighholders, today more than ever, need results and our system helps them achieve that because we can eliminate mistakes. We are currently talking with two of the top 10 sightholders in the world about using our system. They are giving us diamonds to work on with them as partners.’

Tuesday, June 12, 2007

New Diamond Newsletter

(via JCK) Diamond Finance describes itself as the only newsletter dedicated to finance and accounting in the diamond and jewelry industry. It includes an interview with HSBC's Jeff Pfeffer. Check out the first issue here (PDF).

The Keshi Pearl Issue

Nick Sturman (Directorate of Precious Metals and Gemstone Testing, Ministry of Industry and Commerce, Bahrain) writes:

The word Keshi has traditionally been used to describe small natural saltwater pearls (seed pearls) as well as similarly sized pearls that resulted as a byproduct of the Japanese cultured pearl industry. Nowadays, the term is predominantly used to describe cultured pearls with sizes well above those that would be considered seed-like. Hence, Keshi is now used generically to describe any pearl byproduct without a bead nucleus that is produced by the culturing process regardless of the ocean in which the pearl farm is located.

The contentious aspect of Keshi cultured pearls revolved around the following questions: Can gemological laboratories differentiate between all Keshi cultured pearls and natural pearls? In our opinion and experience, the answer to this question is no. Some Keshi cultured pearls are instantly recognizable by their overall visual appearance, and their cultured origin can be further validated by their internal structural features, as revealed by X-radiography. In other cases, laboratories are faced with an identification issue that may either straightforward (i.e., the X-radiographic structures are quite distinct, classifying them as tissue-nucleated cultured pearls) or difficult (i.e., they exhibit natural-appearing structures).

Quantity testing of Keshi cultured pearls (i.e., in rows, necklaces, or parcels) may be thought of as less complicated because the test results are based on those samples that show the most evident structures. However, this is not always true, and we often have to issue mixture, majority/minority, or even natural reports on parcels of what appear to be Keshi cultured pearls. When individual pearls are submitted (i.e., for a full test as opposed to batch testing), the situation may be trickier since only the structure of a single sample, and not a group of pearls, is available to the gemologist. If the structure appears natural by X-radiography, then a natural report can be issued. In our experience, individual pearls with internal structures that are undoubtedly natural will pass as such in most, if not all, laboratories.

We do not have a solution to the differences in opinion that exist in the trade regarding what constitutes a Keshi pearl, and believe that a good deal of research still needs to be carried out on the subject.

Emerald Crack-Up

Gary Roskin writes about a new development in the field of emerald enhancement that could mean trouble for retail jewelers @ http://www.jckonline.com/article/CA6447698.html

Tomorrow’s Dirty Diamonds

Chaim Even-Zohar writes about Alan Bond, the flamboyant entrepreneur and his contacts in southern Lebanon @ http://www.idexonline.com/portal_FullEditorial.asp?TextSearch=&KeyMatch=0&id=27430