Polished Diamond Price Inflation Shows Dramatic Rise in April

Energy prices continue to spike; food costs are higher; clothing prices are up. Global prices of virtually all goods are on the rise, and inflation is the main topic in news headlines around the world. So it should be no surprise that polished diamond prices are also caught up in this inflation frenzy.

The economy of the U.S., which represents just less than 30 percent of the global economy and about 50 percent of global diamond consumption, appears to be mired in a recessionary mode, there is no shortage of demand for high quality polished diamonds in other world markets. Diamond buyers in Asia, the Middle East, India and China have stepped in, and they are bidding up prices, especially among the larger stones – three carats and above.

A common question today, will these diamond price increase hold at retail, or will merchants negotiate them down? – appears to have been answered. Because of strong demand for polished diamonds in other global markets, diamond suppliers have been able to maintain their price increases. If a U.S. customer bulks at paying higher prices for diamonds, the diamond supplier simply moves on to another market where demand is strong.

As long as the demand for diamonds and diamond jewelry remains strong, especially in emerging markets, prices are expected to rise. Further, since rough diamond prices have been rising faster than polished diamond prices, there is on-going pressure to pass along those price increases. So far this year, rough diamond prices are up about 8.5 percent based on results of DTC Sights; polished prices are up by just over 6 percent since the end of 2007.

While diamond prices showed a dramatic increase in April based on comparisons of the average prices for the month, the real spike in diamond prices occurred in March.In March, there was a sharp spike mid-month, and those higher prices carried over into April.However, while prices were at record levels in April, they were relatively flat throughout the month. The market was apparently digesting the price spike which occurred in March; many suppliers were waiting to see if prices would hold firm. They were rewarded for their patience: prices were steady in April.

Because rough diamond prices are rising at a pace faster than polished diamond prices, there is much pressure on cutters and polishers to raise their prices, a trend that is likely to continue. This will keep polished diamond prices from falling, and should provide support, along with baseline consumer demand, to send prices higher, but at a more moderate rate.

Andesine Aggravation

The recent saga of the gemstone andesine illustrates the complexities of gemstone enhancement and disclosure.

Andesine is a reddish-orange feldspar that's been in the market for five years. It's sometimes called sunstone because its chemical composition is similar to that gemstone's. Stuart Robertson, research director for Gemworld International, Glenview, Ill., says it was first seen at the gem shows in Tucson, Ariz., in 2003, but didn't draw attention until 2005, when quantities started to increase. Color and clarity were remarkably consistent, raising questions about origin and enhancement. Some have answers to those questions. Some of the answers raise more questions.

"It's from Tibet, natural and unenhanced," says Jackie Li, owner of the Tibetan Sunstone Mine, whose Web site, Tibetansun.com, details the story of andesine's origin. Missing from that story: any images of an actual mine or rough gems.

Congo has been identified as another source of andesine. Online gem merchant Thaigem.com says it first purchased Tibetan sunstone in East Africa, where it was identified as Congolese. And Dr. Laurent Sikirdji, of Gemfrance.com, says his andesine—which he calls natural and unenhanced—is from Congo. But no one has seen a Congolese andesine mine or any Congolese rough. Sikirdji admits that his Congolese andesine is purchased in Thailand.

Jewelry Television had been selling andesine as natural and unenhanced. "We were assured that the color was natural by all our suppliers," says JTV cofounder Jerry Sisk.

Late last year JTV found a source for andesine in Mongolia. Sisk describes what happened next: "Our man in the field saw the rough coming out of the ground (all yellow) and was given the 'recipe' for heating the material."

JTV has sent samples of treated and untreated andesine rough to Dr. James Shigley at the Gemological Institute of America, Dr. George Rossman at California Institute of Technology, and Dr. John Emmett at Crystal Chemistry in Brush Prairie, Wash., all renowned experts in gemstone enhancements. Sisk is determined to find the mechanism behind the color, and he wants to know how to identify treatments. It may take several months before any conclusions are reached.

"The only comment that I would make," says Sisk, "concerns our prior purchases, which we cannot attribute to China or Mongolia. We actually have documentation on a number of our acquisitions stating Congo as the source of the gems. Once again, we were relying on our vendors, but took the position that we will find the source(s) and inform our viewers. We released that information within a very short time frame once it was verified."

Sisk notes that JTV has not directly purchased any gemstones from the Mongolia site. "We will, of course, start negotiations with the mine owners to procure a steady supply of material for our viewers," he says. "Any gemstones from the mines in northern China and southern Mongolia will be disclosed properly and noted on our invoices."

Sisk adds, "When we first started selling red and green andesine-labradorite, we did send samples to the labs as part of our standard operating procedure. The reports came back as natural color. Our vendors also assured us that the color was natural. That is how we represented it to our customers."

Sisk says demand for fine-quality red and green andesine-labradorite is putting pressure on the supply side, boosting prices on his recent purchases, and making it difficult to get enough fine-quality gems to meet demand, particularly in larger sizes. "The prices are higher than they were a year ago, and we cannot purchase the quantities we need to supply the consumer," says Sisk. "Clean, unzoned green andesine-labradorite is nearly nonexistent.We have extremely limited supplies of the green material and do not see any improvement in availability in the near future."

GIA Museum launches historical jewelry campaign

The Gemological Institute of America Museum is launching a new campaign to build the “GIA Historical Collection,” a comprehensive assemblage of jewelry, object d’arts and gemstones from all time periods and cultures world-wide.

“We intend to create a wide-ranging, world-class collection that captures the essence of each period in gem and jewelry history," said Elise Misiorowski, GIA Museum director. "People are always fascinated by historical pieces. It’s our goal to bring together a variety of significant treasures representing different episodes in history.”

“Jewelry is like a time capsule,” adds Misiorowski. “It can tell you about the economics, social structure, and technology of the culture it came from. Jewelry preserves this information in a very concentrated way. It’s like a Rosetta stone; if you know how to read it, you can interpret the socio-economic climate of the period.

Misiorowski also noted, “Gems also have their own individual story to tell. Their sources, significant owners, and other details give them their own personality and place in history.”

The Institute hopes to not only increase the number of pieces in its collection, but acquire examples from many different eras as well. The Institute anticipates this collection will quickly become an important addition to the museum because donors, visitors and students alike will benefit from sharing the stories of these intriguing pieces.

The GIA Museum plans to use the Historical Collection for display in other venues on a regular basis, accompanied by lecturers and experts, and pieces from the collection will be showcased further via podcasts and other educational vehicles. Misiorowski said “We hope the GIA Historical Collection will grow to inspire, educate and excite viewers today and for generations to come.”

In addition, the GIA Richard T. Liddicoat Gemological Library and Information Center will archive any accompanying documents for donated pieces that detail the item’s background and provenance in its Cartier Rare Book Repository and Archives.

Fine Jewelry News Launches Website for Women

Fine Jewelry News announces the launch of its community-based website designed to give women a forum to share their love of fine jewelry, gain confidence about buying jewelry, and help others in need of advice. "Fine Jewelry News speaks to the dreams and desires behind a woman's jewelry purchases: to mark a moment in time with her children, to live more lightly on the earth, to be a little bit 'rock n' roll' even with a full-time job and a family that needs dinner," says Jodi Goldberg, editor.

Through Fine Jewelry News, women will gain confidence about buying fine jewelry by asking questions and speaking their minds in a secure, supportive environment. They'll start to think of jewelry first when it's time to celebrate special moments, honor traditions or start new ones, and give back to the people they care about most--including themselves. Not to mention taking time out to indulge in a little luxurious daydreaming!

A subscription-based e-publication offers a rich blend of style and substance, covering topics that range from fashion trends to fair trade gems. Opportunities to connect with an online community give women a valuable second opinion on potential jewelry purchases, along with space to share stories and swap ideas with an eager, interested audience. Casting a vote in the Fine Jewelry News weekly opinion poll lets women find out what they have in common with other jewelry lovers all around the world.

"Fine Jewelry News is a great resource for consumers, but it's valuable to the jewelry industry, too," according to Goldberg. "It's a place to find out what's on women's minds, and to gather insight about what's important to them."

Charles and Colvard cuts staff

Morrisville, N.C.—Charles and Colvard has slashed its workforce by 18 percent to cut costs amid slowing sales, various news services report.

The cuts amount to a loss of about 10 jobs for the Morrisville, N.C.-based moissanite maker, bringing its staff down to a total of 45.

Like so many other players in the jewelry industry, Charles and Colvard is feeling the effects of an anemic economy.

According to news reports, the company reported a net loss of $698,000 for the first three months of the year, compared with a year ago when the company reported a net income of $339,000.

Charles and Colvard Chief Executive Officer Bob Thomas was quoted in The News and Observer as saying the cuts were made across all departments, including sales, management and the administrative staff.

A consulting company hired by Charles and Colvard recommended the cuts, which will save the company about $500,000 a year.

Thomas also said further changes "will address more encompassing issues," and will be announced after the company's May 27 shareholder meeting.

While Thomas would not elaborate, one analyst told The News and Observer that Charles and Colvard is a prime target for acquisition.

According to news reports, the company's inventory of moissanite gemstones is valued at about $42 million and could retail for up to $169 million.

Cheaper Nanodiamonds Produced for Medical Functions

A group of Taiwanese scientists has discovered a cheaper way to create tiny fragments of diamonds, similar in size to microscopic viruses and known as fluorescent nanodiamonds (FNDs), making it possible for them to be used to reveal the movement of cells around the body, or even deliver genes, according to New ScientistTech.

This function of the nanodiamonds is realized when the diamond fragments are hit with a laser; due to defects in the structure of the diamonds that absorb the laser energy and emit their own light at a different wavelength, they can fluoresce for hours afterward and be tracked in cells throughout the body.

In addition, the diamond material is relatively stable and non-toxic and is therefore an attractive material for use inside the body. But, until now, the diamond fragments have been too expensive to manufacture.

As New ScientistTech explains, FNDs are usually made when a high-energy electron beam is fired into diamond powder and then heated up to 800 °C, but a Taiwanese scientist named Huan-Chen Chang and his colleagues at the Academia Sinica have discovered that they can shoot a less intense, and thus cheaper, beam of helium ions at the diamond dust to produce FNDs with the same quality.

"The beam of helium ions knocks some carbon atoms out of the nanodiamonds, leaving vacancies behind," explains Chang. Those vacancies, he says, bond with nitrogen atoms and form flaws that allow the diamonds to absorb and re-emit laser light. The cheaper FNDs work almost as well as those produced with an electron beam. In tests, Chang said his team could track the movement of a single fluorescent nanodiamond within a cell for over 3 minutes.

Other uses for the cheaper nanodiamonds have been explored by the researchers, including monitoring stem cells in developing tissues or carrying drugs into cells.

New site enables year-round buying, selling

Norwalk, Conn.—JCK Luxury and Premiere have launched a new Internet platform that will allow exhibitors and attendees of the Las Vegas-based event to leverage the Web to sell and find products all year round.

Access to Jewelsbyluxury.com will be exclusive to participants in JCK Luxury and Premier. Membership to the site provides each exhibitor with a gallery for displaying thousands of items in a format that is easily accessible to retailers. Exhibitors will be promoted throughout the year through targeted marketing efforts that boost member visibility throughout the industry.

Retailers visiting the site will have the opportunity to make appointments to meet with exhibitors during the Luxury and Premiere events, plus use the site's comprehensive search engine to find sought-after items more quickly, and get into direct contact with the proprietor of that merchandise.

"Our event takes place for three days in Las Vegas, but this new platform is a great way for the top designers and manufacturers to showcase and sell their products all year long to retailers that they meet at the show," Luxury and Premiere Industry Vice President Yancy Weinrich said in a media release.

JCK Luxury and Premiere will be held from May 27-May 29 at the Venetian Resort Hotel Casino in Las Vegas. For more information about the show, call (800) 257-3626 or visit the event's Web site, Luxurybyjck.com.

For more information about Jewelsbyluxury.com, call (877) 777-9771 or visit the Web site directly.