Clicks And Mortar

Malcolm Gladwell writes about the internet hype and the real off-line E-commerce revolution @ http://www.gladwell.com/1999/1999_12_06_a_clicks.htm

Palladium Brochure

This brochure is an excellent introduction to the metal. Free copies of the Palladium Information brochure are available by calling Guertin Brothers at 800-225-3141 or emailing sales@guertinbrothers.com

Closing The Debate

Chaim Even-Zohar shares the views by the dean of DTC brokers, Gerald Rothschild, on sightholders and supplier of choice (s) + other viewpoints @ http://www.idexonline.com/portal_FullEditorial.asp?TextSearch=&KeyMatch=0&id=26393

Iridescent Gemstones

Iridescence is an effect caused by the interference of light at thin films within the gemstone. The gem materials which display iridescence are fire agate, iris or rainbow agate and iris or rainbow quartz. There are many other gem materials which occasionally display iridescence in fractures, but the above materials are best known for this effect.

Fire agate is cut from a special type of chalcedony nodule in which deeper layers are coated with goethite. The goethite layers act as thin films, producing interference and a lovely iridescence. In judging quality of fire agate, color is of prime importance. The most desirable colors are blue, yellow and red, with violet, green and orange being less so. Bronzy or metallic colors are undesirable. Fine stones display fire 90% or more of the face. If the fire covers less than 70% of the face, the body color begins to detract from the stone’s appearance. As a general rule, the less color coverage, the lower the value of the stone. When checking the stone, be sure to rotate it so that any cracks, pits or dead spots can be seen. All of these factors will lower the value.

Iris or rainbow agate is a special type of chalcedony which shows iridescent colors when examined in transmitted light. Agate is composed of multitudes of tiny quartz crystals which build layer upon layer during growth. If enough of these layers are present, iridescent colors will be seen when a thin slice is held against a light. Any agate deposit yielding highly translucent material can produce iris agate, but its presence cannot be determined from the outside appearance alone. The only way to know for sure is to cut a very, very thin slice from the center of the agate nodule, and after wetting it with oil, hold it in front of the light. So that the slice will not have to be tilted to see the rainbow effect, it is important that it is centered properly when being cut. The saw must cut through the bands of the agate at right angles in order to orient the effect properly.

Iris or rainbow quartz is a special type of rock crystal quartz which shows iridescent colors in reflected light. These colors are caused by the interference of light at air-filled fractures throughout the stone. Sometimes the complete range of spectral colors can be seen because each crack starts as a very narrow wedge at one end and gradually gets wider and wider towards the surface. Because of the variable size of the fracture, different colors are seen. The iris effect can be artificially induced by heating quartz and then quenching it (rapidly cooling it) in cold water. If a dye is added to the water, it dries in the cracks, producing what are termed ‘firestones’.

Promoting And Merchandising Colored Stones

(via Journal of Gemmology, Vol.XVII, No.3, July 1980) Jacques Sabbagh writes:

The inventory
A carefully chosen, well-balanced stock of colored gemstones is logically the starting point. You cannot sell what you do not have, except on the rare occasions where you act as a broker and/or sell from goods consigned to you. Furthermore, sales are in the numbers: the bigger and wider the choice in your arsenal, the greater are your chances for scoring direct hits.

However, it is not necessary to have all your inventory of gemstones mounted. There is no need to tie up more capital unnecessarily. It is, on the contrary, desirable to leave a substantial part of your stock in the form of loose stones. This way, you will be leaving the door open for the option of custom made, hand tailored pieces of jewelry that would exactly fit the taste and requirements of the eventual buyer.

All right, so you have to build up an inventory of colored gems. What are these gems? What are the characteristic properties of gemstones? I do not propose to tax your patience or offend your knowledgeability with a detailed dissertation on gemology; I am sure quite a number of people present are more versed than I in the topic. I intend however, to tough very briefly on certain elements of the subject. I would like first to enumerate the characteristic properties of gemstones. These are:

1. Beauty

2. Durability

3. Rarity

and 4. A property which has been somehow persistently overlooked by gemologists and consequently its mention in gem books consistently omitted, and this is, portability.

Beauty
A gem has to be attractive enough in order to trigger the urge to acquire it, in order to stimulate the desire to possess it, in order to incite a willingness to pay for it, to buy it.

Durability
The second property is the resistance to scratching; it is what we commonly call hardness. A gem has to possess hardness enough to retain its beauty. You see, unlike similar luxurious but perishable commodities such as fur coats and precious leatherware, as for instance crocodile handbags and shoes, jewels are expected to be longlasting, eternal; they are meant to be handed down from generation to generation.

Rarity
The third characteristic of a gemstone, and an exponent of this quality according to the inexorable, all-pervasive, omnipresent law of supply and demand, is price. It must be rare enough in order to fetch a decent price.

Portability
Gemstones constitute value in compact size, they are a form of condensed wealth. One can carry literally in one’s pockets tens, or even hundreds, of thousands of pounds in the form of a few tiny parcels of gems. In the course of history, gemstones have surreptitiously or openly crossed borders between countries, they have continuously changed hands, being bought in times of affluence and sold in times of depression. They have repeatedly served to finance a king or a prince to wage war or to buy a peace settlement; they have been used along with precious metals often to appease the appetite of an aggressive imperial power or as ransom for many a crowned head. If gemstones were to disappear overnight from the face of the earth, most people would go on living as usual, practically unaffected; but on the other hand, had gemstones never existed, many a chapter of human history would have to be rewritten.

Another point I would like to expose is one that has to do with nomenclature. Traditionally, jewels are divided into precious and semi-precious. The members of the precious class are four: first is the universally acknowledged king of them all, diamond. The other three princely members of this class are emerald, ruby and sapphire. The rest of the aristocratic members of the gem world have all been lumped together under the heading semi-precious. However, over the last few decades, this elementary classification, this simplistic terminology has been increasingly eroded by the gradual realization that the line of demarcation between the precious and the semi-precious gems is indeed a very hazy one.

The dividing line is so blurred that there is in more than one area factual confluence of the two conventional categories; because, what are we to use as a yardstick in order to differentiate between precious and semi-precious stones? Is it the first characteristic of a gem, that is, beauty? But beauty is a dual property: the objective or inherent factor related to form, color, harmony and symmetry, and the subjective element of assessment and appreciation, which is largely dependant on fashion, taste, the times and geography. To give one example, Pliny tells us that in ancient Rome emeralds were much appraised than rubies, whereas if we focus on Renaissance Florence some sixteen centuries later, we hear Benvenuto Cellini informing us that rubies were considerably in higher demand than diamonds and were fetching prices eight times as much. Shall we then use as a yardstick the second property of a gem, that is durability, or hardness? But emerald, a notable member of the precious group with a hardness of 7½ on Moh’s scale, is less hard than either chrysoberyl with a hardness of 8½, or topaz with a hardness of 8; both members of the semi-precious group. Is it rarity and its exponent, price, that we shall go by to distinguish between the two categories? We find that this too, does not apply to several cases, for example, a demantoid garnet or an alexandrite chrysoberyl can fetch high prices, both being rarer finding than a rather nice sapphire.

The realization of all these facts had led the participants of an international convention of retail jewelers a few decades ago, to pass the half-measure resolution of arbitrarily shifting the demarcation line between the two groups of gems to the hardness immediately above that of quartz—that is 7 on Moh’s scale. They chose the hardness 7 because it is that of silica which is abundantly present in sand as well as in the dust suspended in the air carried by the winds, which would scratch any stone of a hardness of 7 or below, thus prematurely showing the signs of wearing. So, according to this resolution which takes into consideration only the property of hardness, all gems that possess a hardness superior to 7 are precious and all those with a hardness of 7 or below are semi-precious.

It has been quite some years now since the French members of the trade have discarded the illogical term semi-precious to replace it by pierres fines whose closest English equivalent would be gemstones. Quite recently, at the last annual conference of the International Federation of the Jewellery Trade, CIBJO, in Paris, the use of the term semi-precious was considered at length, it being reported that some Scandinavian countries and West Germany had made progress by getting official acceptance of the term precious. However, there were difficulties for some, it was said, particularly in respect of Customs authorities, in redefining the expression semi-precious. The U.K delegation considered that we should do everything possible, in the U.K, to discourage the term, which is a down-grading one. They believe it is better to use precious stones or gemstones. At long last we can see the light at the end of the tunnel and I trust the day is near when the derogatory expression semi-precious will become obsolescent and the conventional classification of gems will be past history.

Now let us focus on an important point related to the building up of an inventory of colored gemstones, namely its investment value to the jeweler. In inflationary times like these, continuous price increases of practically every marketable item of service have become a familiar aspect of the economic landscape. Over the last decade or so, colored gems have steadily figured among the commodities heading the list of price increases. Between January, 1969 through December, 1978, these gems, in the rough, at the sources—whether in Brazil or Colombia, Africa or Sri Lanka, Australia or Afghanistan—have undergone, across the board, increases in prices by leaps and bounds, so that at present they fetch in terms of pounds sterling between nine and a half to almost eleven times their prices in the beginning of 1969. Evidently the same has applied to the world gem cutting and jewel manufacturing centers, whether around the mining areas or in such traditional, or recently developed, centers as, for example, London or Birmingham here in the U.K, Idar-Oberstein in West Germany, Jaipur in India, or Bangkok in Thailand. What is perhaps even more interesting is the fact that at no point during this last decade, has the curve of price increases ever been deflected downwards, as happened in the fifties and early sixties. It is thus obvious that, even after price indexing against currency depreciation, colored gemstones have shown a true up-valuation. It follows from this that one should not think twice to invest in colored stones.

Promoting And Merchandising Colored Stones (continued)

The Price Is Right

There are similarities between buying gemstones and art. Both are subjective concepts + in order to make smart choices one should be knowledgeable + you should be lucky enough to get unbiased information.

(via Livemint) Manju Sara Rajan writes:

The term ‘affordable art’ might sound like an oxymoron, but is possible to buy work that’s reasonably priced. Here’s our guide.

For Avinash Gowariker, a buy is only a buy once the homework’s done. On a late Saturday afternoon, he’s crouched over a collection of pictures strewn across the floor inside Gallery Chemould in South Mumbai. The studio’s clearance sale, on at the Jehangir Art Gallery, is exactly the sort of event Gowariker trawls to find what he’s looking for: works of art that fit his budget and scheme.

When he locates an Akhilesh etching, he calls a friend at another gallery to check the price at which they sell similar works of the artist. Once he’s assured he’s on to a good thing, Gowariker decides it’s a buy. “They sell his works for much higher. I’ve got a great deal on this one,” he says triumphantly. By the end of the afternoon, 35-year-old Gowariker has purchased two distinct etchings by Naina Dalal and Akhilesh for under Rs15,000. “I didn’t come here with any idea of whether I’d buy, I just came with a credit card and stayed within the budget,” says Gowariker.

Gowariker’s purchases fall within that shifty realm of “affordable art” which, by broad definition, refers to works priced within the Rs1 lakh range. He is part of a growing breed of art consumers who are looking beyond the bold print about the Indian art market to invest into it, smartly, at the lower end, and still make percentage returns. Outside New Delhi, in Gurgaon, Reena and Jesper Lindorff entered the ring because they believe art is an essential aspect of their lives. “Artworks are an important part of the home, and not just considered accessories. It is the art, in fact, which defines spaces,” says Reena.

In between the big digits and big names of today’s $350 million (about Rs1,435 crore) art market, it’s easy to be overawed by the idea of buying art. Despite widespread speculation that the market is stabilizing, with 100% growth a matter of the past, very little of the high-end world of art is still affordable. To get an idea of that end of the market: At the latest Sotheby’s auction in May, the biggest sale was F.N. Souza’s Head, which went for $528,000. “Most people are intimidated by the notion of art, thinking that real art is out of their reach,” says Kalpana Shah, owner of Mumbai’s Tao Art Gallery. “Buyers have to keep their eyes open to the right thing and make smarter choices,” says Shah.

While many aspire to purchase a “real” work of art, few know what or how to buy, often opting for supermarket art rather than looking at the lower end of the genuine art market, which is made up of three broad areas: the works of new artists, photography and prints, both mass reproductions and artist-signed graphics. All of these options range in cost from a few thousand rupees for open-edition unsigned reproductions (or posters) to a few lakh rupees for the signed print of a master.

The other spectrum of art is the kind sold at Satguru’s Arts & Crafts, a Mumbai handicrafts store, where a 36”x48” oil painting of a village scene, which has zero resale value, costs Rs81,000—much, much more than Gowariker’s afternoon purchases at Chemould. So, lift the canvas slightly, and there are plenty of ways to participate in the genuine art market that are worth every paisa you spend.

The key is to begin right. Gowariker believes in the idiom, “six degrees of separation”. Over the past one year, the celebrity photographer has, through friends and connections and by sheer force of charm, amassed an enviable collection of works of art. “When I started, I was into art for the money. I didn’t have money for real estate and didn’t understand the stock market.” But he says he educated himself on the subject and talked to people who were already in the market, and now knows exactly what he’s looking for, and the resale value of his pieces. “It’s important to get unbiased information, so I picked up auction catalogues and went on the Internet, which is neutral.”

On the strength of that self-education, Gowariker has collected more than 15 high-value works—including Akhilesh, Prokash Karmakar, Yashwant Deshmukh, a paperwork of Jogen Chowdhury, and K.S. Radhakrishnan sculptures—for much less than they are worth today. “Now, I’m looking for blue chips, my dream buy is, of course, M.F. Husain. Husain is the dada,” he says.

The Lindorffs are into the emerging and lesser knowns. Through the door of their three-bedroom apartment, on the right-hand side, is an untitled piece by an artist called Sandip. The couple picked this up for Rs14,000 from Picturesque, at New Delhi’s Santushti Shopping Complex. “The purple and orange contrast of this oil on canvas is stunning, and we hope adds a touch of sophistication and warmth to the entrance area,” says Reena. The rest of their house has a melange of abstract art, photographs and lithographs by artists from Kolkata, Delhi, Sweden and the US. “We love to purchase art pieces which are unique and are not as interested in the name of the artist per se. The painting comes first, and then the artist,” says Reena, 35.

Whether it’s an upcoming artist or an established one, the art world offers plenty of choices. And keeping that in mind, we sought out folks who have found valuable, yet affordable, ways to indulge the art market. (Karishma Singh contributed to this story.)

More info @ http://www.livemint.com/2007/06/30000247/The-price-is-right.html

The Science Of Shopping

Malcolm Gladwell writes about the American shopper + stores, including the new flagship designer boutiques @ http://www.gladwell.com/1996/1996_11_04_a_shopping.htm

Justice Needs To Be Done – Without Damaging Noises Or Loss Of Perspective

Chaim Even-Zohar writes about anti-money laundering (AML) regulations for diamond merchants in Belgium + the detailed aspects of the diamond industry’s AML/CFT regime + other viewpoints @ http://www.idexonline.com/portal_FullEditorial.asp?TextSearch=&KeyMatch=0&id=26425