Where the world comes to find out about diamonds. Newsletter. January 2013 Volume 3 Number 1

Transcription

1 Where the world comes to find out about diamonds Newsletter January 2013 Volume 3 Number 1

2 Where the world comes to find out about diamonds Newsletter of the Price of Diamonds website Price of Diamonds Newsletter January 2013 Edition Editor in Chief Michael Moore Advertising Technical Author Services Pty Ltd The PRICE OF DIAMONDS NEWSLETTER Is the Newsletter of the Price of Diamonds website and is available by subscription only. This Newsletter is provided subject to the condition that it shall not be circulated in any form without the publisher s cover and acknowledgement of the material contained herein and is not to be sold, hired or otherwise disposed of for any fee or consideration other than by prior arrangement. It may be distributed online and passed along only in its current form and with the above proviso. Comments and articles published in the Price of Diamonds Newsletter are not necessarily the opinions of the Publishers or Editors and are offered solely for information purposes only. This publication is designed to provide accurate and informative information only in regard to the subject matter covered. This publication does not purport to offer any professional advice of any legal, financial or psychological service and is sold with the understanding that the publisher, editor and contributors are not engaged in rendering any legal, financial, psychological or any other professional service and is offered for information purposes only. If any legal, financial, psychological or any other professional advice or assistance is required, the services of a competent professional person should be sought. The reader is solely responsible for his/her own actions. Copyright 2013 By Technical Author Services Pty Ltd. All Rights Reserved. All copyrights and trademarks belong to their respective owners ~oo00oo~ Dear Reader, ~ Editorial ~ This month is the start of a new year. Hopefully better than the preceding Year with more exciting news about diamonds. We extend our series on other Gemstones with an article on Amethysts in this issue. I hope you enjoy it! Plus we continue our series on Diamond jewelers. This time with Hannoush Jewelers. Here s wishing you the very best for A Flourishing and Prosperous New Year! Michael Price of Diamonds Contents Editorial 2 Diamond Dealer of the Month 3 Diamond Jewelery Shows 5 Diamond Broker 6 Diamonds, The Next Gold? 8 Diamond Appraisal Abbreviations 11 Buying Amethyst Gemstones 12 Glossary 14 2

3 ~ Diamond Dealer of the Month ~ R ead this write up and find out who hannoushjewelers.com really before you buy diamonds from them. Also it is worth noting that if you want to buy and diamonds from a diamond dealer then you should do plenty of due diligence before you buy diamonds. Who are Hannoush Jewelers Hannoush Jewelers, Inc., are a family business based in Albany NY and have been operating since 1983 when the first store opened in Massachusetts. Now over 70 stores operate under the Hannoush banner with owned stores and franchise operations throughout the USA. Hannoush employ over 600 personnel from sales assistances through to design, casting, manufacturing and management. The owner and principle person is one Mr David Hannoush and the website Hannoush Jewelers Customer Service As well as the 70 or so stores around the country, you can also call for information and advice on their toll free line. This is available Monday-Friday, from 8:30 A.M.- 4:30 P.M., Eastern Standard Time. Some of the customer service facilities Hannoush offers include: Lifetime Guarantee on Diamond Jewelry Free cleaning and Inspection Same-as-Cash Payment Option Free Layaway Custom Design in 14K and 18K Gold, and Platinum Professional Jewelry and Watch Repairs on Premises Certified Appraisals. The 70 Stores can be found in: Arizona Connecticut Florida Illinois Kansas Kentucky Maine Massachusetts Missouri New Hampshire New York North Carolina Ohio Rhode Island Vermont Hannoush Jewelers Products The jewellery and diamond products listed on the website and which can be generally found in most stores include: Diamond Engagement Rings Emerald Rings Ruby Rings Sapphire Rings Tanzanite Rings Anniversary Bands Birthstone rings Wedding Bands Men s Ring Collections Mountings Right Hand Rings 3

4 Diamond Necklaces Emerald Necklaces Ruby Necklaces Sapphire Necklaces Tanzanite Necklaces Gold Necklaces Birthstone Necklaces Diamond Earrings Emerald Earrings Ruby Earrings Sapphire Earrings Tanzanite Earrings Gold Earrings Birthstone Earrings Diamond Bracelets Emerald Bracelets Ruby Bracelets Sapphire Bracelets Tanzanite Bracelets Gold Bracelets Birthstone Bracelets Men s Bracelets Hannoush Jewelers Payment Options The price if diamonds at Hannoush are reasonable and it may be possible to bargain with them on the price if a diamond setting or jewellery piece. All the Major Credit Cards Accepted as is mail in, call in and PayPal (US accounts only). Hannoush Jewelers also have their own credit card, underwritten by GE Onlineservices.com, but be warned, the interest rate is very high, a massive 21.98%! (variable which means it can go up since the Purchase Standard Rate and Cash Standard Rate APRs will equal the prime rate plus 14.73%. However if the prime rate drops the total interest rate will still be Price of Diamonds never less than 21.98%. (The prime rate for a billing period is the highest bank prime loan rate). This make the credit card one of the most expensive around. One would be better off using ones standard credit card or even better, paying cash. Hannoush Jewelers Returns and Refunds There is no mention of the conditions for any returns or refunds. There is a 30-day Money Back Guarantee but no information on what the conditions of that guarantee are. Statutory conditions will always apply of course. Hannoush Jewelers Shipping Hannoush Jewelers will only ships to the US. Mostly people buy from the shops. No information on shipping is provided on site but is obtainable if you ring their toll free number.. Last Word on Hannoush Jewelers Many people may not realise it but if you go to one of their outlets it is possible to negotiate or bargain with them on the price of a particular piece. They sometimes do specials also. Always ensure that you get a proper certificate of appraisal with any piece if diamond jewelry. If you have bought any diamonds or jewelry from please feel free to leave your feedback on the quality of service and products of complaints and special attention or service given by online. ~oo00oo~ 4

5 Up and Coming Diamond & Jewelery Shows in 2013 Gemstone and jewellery show 'Sparkle 2013' January the 4th to the 7th Sparkle 2013, an exhibition showcasing Gujarat's prowess in diamond and jewellery, will be held from January the 4th to the 7th, 2013 at Surat, a week ahead of the biennial Vibrant Gujarat Global Summit. For the first time, traders and manufacturers of diamond jewellery from as far away as Dubai and Thailand will participate in the event. The exhibition will be spread across over 100,000 square feet of pillar-less space and will display modern and traditional jewellery designs under one roof. Besides jewellery, on display will be precious, semi-precious and coloured gemstones; pearl, silver, white gold and fine finish jewellery; software, machinery and equipment; packaging products and services. ~o0o~ Istanbul Jewelry Show March CNR Expo Center Istanbul, Turkey The Istanbul Jewelry Show will be held at the CNR Expo Center in Istanbul, Turkey. It will bring together professionals related to jewellery industry from Middle & Near East, Russia, CIS Nations, Eastern Europe and the Northern Coast of Africa. The event will display various products such as silver jewelry & households, diamonds, semi precious, precious, pearls, synthetic stones machinery, equipment, fine gold jewelry and fancy gold jewelry. The show will witness a huge number of attendees which will figure up to 30,000. In this show, many exhibitors are going to participate from all over the globe to showcase their latest products. The Istanbul Jewelery Show will invite participation from more than 1,100 exhibitors. The event will be hosting top most experts related to this sector sharing ideas and skills with the attendees. ~o0o~ Precious Metals, Diamonds & Gemstones Summit 2013 April 2013 (No final dates as yet) Ironmongers Hall London, United Kingdom Objective Capital s Precious Metals, Diamonds and Gemstones Investment Summit brings together London s financial community with precious metals producers. The Precious Metals, Diamonds & Gemstones Summit is dedicated to Precious Metals, Diamonds & Gemstones issues such as: jewellery markets, investment, mining, gold and platinum and more. ~o0o~ 20th Malaysia International Jewellery Festival 5

6 Diamond Broker D iamond brokers are essentially brokers in the gem field. A broker is a person who acts for another or others and helps to buy or sell a diamond or some diamonds for another. They get a commission for brokering a deal of course. Diamond brokers have to be very expert at grading diamonds and evaluating their value. He or she usually has contacts in the diamond industry such as wholesales, diamond cutters, private sellers and buyers and of course auction houses. It requires many years of extensive training and study to become a diamond broker. Also experience counts for a great deal in this industry. For a successful diamond broker networking and diamond brokers need to be well connected as it can often be a case of who you know. If you want to use a diamond broker to either buy or sell a gemstone such as a high quality diamond (you would not be using one to buy or sell a diamond worth just a couple of thousand. We are talking the high end of the market here) you want to know that the broker is at least a Graduate Gemologist. The Gemological Institute of America has programs to train people as experts in appraising and grading diamonds and your broker should qualify on this count to start with. He or she should also be a Certified Gemologist Appraiser (CGA.). This title is, according to the American Gem Society, "the most highly regarded in the industry. Earning the CGA title requires more advanced training and experience in determining the value of gemstones and jewelry." This titleholder is so important in the trade that a title holder is required to resit the exam each year in order to retain their certificate. In addition a titleholder is required to work for an established. Only a minority of the applicants who apply are granted membership in the American Gem Society. Also the applicant must have a high degree of gemological knowledge. This includes having at least one full-time employee who has studied and completed an Accredited or Graduate Program from the GIA or Gemological Association of Great Britain. This individual must hold a title of a Registered Jeweler, Certified Gemologist, or Certified Gemologist Appraiser. Any training or education should be from these types of registered associations and organisations. A broker cannot be trained simply by reading on the internet. Ask to see the qualifications of the broker you are considering using. Experience, at least 5 years, would be an important aspect also. Does the broker know what they are talking about? Do they have a 6

7 good idea of a diamonds value on the open market? Also importantly does the diamond broker have good contacts? Most sales will be done with a phone call and chat. Known and experienced brokers in the trade will be respected and their assessment or appraisal of a diamond will tend to be accepted based on their knowledge, experience and qualifications. Diamond brokers charge a fee for their services of course. Although it can be anywhere from 10 to 20 percent of the diamonds value, that is much less that the retail mark up which can range anywhere from 300 to 600 percent of the value of the diamond. One of the best ways to buy a diamond then is by using a broker to represent one and get the best price for a stone you want provided you ensure you get a good broker. ~oo00oo~ Price of Diamonds What about other gemstones Amethysts Emeralds Garnets Jade Opals Pearls Peridot Rubies Sapphires 7

8 Another factor that affects the price of diamonds is that the majority of diamonds produced are industrial quality and only a small percentage are suitable for the jewelery business. Twenty percent of all diamonds mined are used in jewelery and the remaining eighty percent in industry such as for lasers and other cutting equipment. Diamonds In view of the fact that cultured diamonds can now be produced through chemical vapour despoliation for example, the diamond industry is no longer totally reliant on mined diamonds. All of this tends to reduce the potential of diamonds as an investment vehicle. However there are some exceptions. the Next Gold? I s it possible that diamonds are going to be the next gold? Traditionally diamonds are not an investment due to the high premium placed on the sale of diamonds and the ready availability. In fact diamonds are not as rare as one might think. De Beers, a major diamond producer, has a very large diamond production business and has been known to stock pile surplus diamonds in order to maintain the price of its sales. As De Beers now have a whole chain from mining to retail shops across the world they are able to recoup virtually all the profit normally retained by wholesalers and retailers. Diamonds generally have a mark-up of anywhere from thirty to one hundred percent. The wholesaler and the retailer each want to make their cut and this adds to the retail price naturally. So when it comes to buying diamonds the closer one can get to the source the better. The price of diamonds varies with the quality and weight of the diamonds so there is no universal weight benchmark for diamonds as there is for precious metals such as gold and silver. A diamond is valued according to its own characteristics such as its color, clarity, the cut and weight of the diamond. This is as individual as the diamond itself. The Gemological Institute of America, the American Gemological Society and the International Gemological Institute are three major institutions which are used to ratify the value and quality of individual diamonds. When it comes to diamond investment there are basically two ways to invest in diamonds. The first is to buy and keep diamonds for a very long time and the other is to buy with the intention of selling at a higher price. The first option is the one that is open to most people and the question then becomes, where do I get diamonds and what type do I get that I can keep, at the best price? Firstly one would be looking for loose stones, not diamonds that have been set into any kind of jewelery. Buying wholesale or as close to it 8

9 as possible would be the order of the day. Getting certificates to establish the quality and value of the stones, a certificate (Kimberley Certificate) to establish that they were not conflict diamonds would be required, and an insurance assessment to establish the value for insurance purposes. Then one would store or keep them in a safe place, such as a deposit box or bank vault for an extended period of time. Funds for this would be those that are not going to be used for a long time. In the long term the value of the diamonds stored would depend on two factors. The availability of diamonds worldwide and the economic climate. There is no real shortage of diamonds in the world. DeBeers and Argyle Diamonds hoarding activities ensure that the supply of diamonds are regulated to maintain a specific price level. In practice diamonds price value tends to increase at around five percent per annum. Currently not a bad interest rate in today s climate. In the short term this is not a particularly attractive investment but in the long term, provided one has acquired diamonds at a good wholesale price, then the steady increase in value will, at least, counter inflation if not improve the value of one s asset. So to either buy and keep or buy and sell diamonds, you should be looking to buy wholesale or even better, direct from source, if possible. money in property, precious metals, the bank as well as diamonds would be prudent in this day and age. When it comes to diamond investment, it is possible to at least retain your investment if not make some money, but you will certainly need to do some work and research first. It was recently found that many wealthy investors own equal amounts of gold and diamonds. The difficult with using diamonds as a security is the pricing factor. Where as gold is simply gold you have the weight the size and fineness, but with diamonds you have such a diverse range of factors, the 4 Cs for example and the variable in price per carat as the size increases, makes it difficult to use a standard price. Everyone knows what the price of a bag of coffee or a bushel of corn is as they are easily accessible in the market. Diamonds, on the other hand, are all unique, making a standard pricing very difficult. In fact, you can often take the same stone to two different dealers and receive two different price quotes because it is so difficult to nail down a standard way to value these minerals. However a company called GemShares, a Chicago-based firm is expected to secure a patent to create an index for diamond pricing which can then be applied to futures contracts and ETFs and so on. What Took So Long? Of course one should not put all ones eggs in one basket and some diversification, such as But that could all change with the new index, in which diamonds are arranged in 10 layers 9

10 of comparable quality and value from cheapest at the bottom to most expensive at the top writes Jason Zweig. GemShares even has a plan to displace conspiracy theories that often plague GLD and SLV (along with other precious metals ETFs); they are contemplating picturing each diamond on their home website for all of the world to see. GemShares hopes to create as many trade-able units as the market can handle. So who would invest In diamonds? Well the existing investors no doubt and possibly some who were not sure how to invest, with an index such as this, would possibly feel more comfortable investing in diamonds. Price of Diamonds As Wealth Wire says, at first it may seem like a rather far-fetched scenario, but the use for a diamond security has the potential to be very high. First, there are all of the producers and miners who could utilize the diamond-based products to hedge against unforeseen issues in production. But more importantly, the average investor would be able to invest in these ultraexpensive minerals with (presumably) a much lower cost, allowing even the average Joe to add diamond exposure to their portfolio. The introduction of the first futures or ETFs investing in diamonds is expected to be around mid-2013 but that might change with regulation issues, set ups etc. The return may not be a lot of course but, hey, with bonds returning a negative investment you can hardly go wrong. ~oo00oo~ This space to Let! Contact michael@priceofdiamonds.org For details. 10

11 Diamond Appraisal Abbreviations Girdle EXTN, ET, XT, EXN = Extremely Thin VTN, VT, VETN = Very Thin T, TN, TH = Thin M, ME, MD = Medium STK, ST, SLTK, SLTH = Slightly Thick T, TK, TH = Thick VTK, VTH, VETK, VET = Very Thick ET, EXTK, XT, XTK = Extremely Thick F, FA, FAC = Faceted S, SM = Smooth P, PO = Polished Fluorescence N, NO, NON, - No Fluorescence F, FB, FT, FA, - Faint or Faint Blue Fluorescence SL, SLB, SLT, - Slight Fluorescence M, MO, ME, MD - Medium or Moderate Fluorescence S, ST, STB, STG, - Strong Fluorescence E, EX, EXB, EF, - Extreme Fluorescence Culet N, NO, NON, - No Culet P, PO, PN, PNT, - Pointed VS, VSM, VRSM, - Very Small S, SM, SML, - Small M, ME, MD, MM, - Medium L, LA, LG, - Large VL, VLG, VRLG, - Very Large EL, EX, EXLG, - Extremely Large Symmetry EX or E - Excellent, Flawless at 10X power VG or VGD - Very Good, Extremely difficult to locate under 10X power GD, GO, G - Good, Very difficult to see under 10X magnification F, FR, FA - Fair, Noticable under 10X power PR, PO, P - Poor, Easy to see under 10X / Visible to unaided eye VP, VE, - Very Poor, Relatively easy to see with the unaided eye EP - Extremely Poor, Obvious to see with unaided eye Polish EX or E - Excellent, Flawless at 10 power VG or VGD - Very Good, Extremely difficult to locate under 10 power GD, GO, G - Good, Very difficult to see under 10 power F, FR, FA - Fair, Noticeable under 10 power PR, PO, P - Poor, Easy to see under 10X / Visible to unaided eye VP, VE, - Very Poor, Relatively easy to see with the unaided eye EP - Extremely Poor, Obvious to see with unaided eye ~oo00oo~ 11

12 Buying amethysts gemstones There are a number of things that you should keep in mind while buying amethysts gemstones. All of us love buying such gemstones for various occasions like an anniversary or a birthday. Most of the time, we are gifting such gemstones to someone whom we love dearly. That s why it becomes very important to shop wisely when we want to buy a gift for others. If you have the right knowledge, then there is nothing to worry about while picking up these gemstones as a gift for someone. The following points will always determine the worth of amethysts gemstones so browse through them before you shop for some. What Amethyst do you want? Firstly it is prudent to have some information about amethysts, the types qualities and sizes available. This will help you determine which are the best amethysts when you are offered a selection. Budget Also it is a good idea to have in mind what sort of budget you have and the purpose of buying an amethyst. What type of amethyst jewelery are after, such as in a ring or pendant for example. Or is it for a gift for another? What dress should it go with. Questions like this all have a bearing on the amethyst you choose. Color Always check the depth of the color before you decide to buy one. If the colors are deep and lively, then the value of the gemstone increases. In case of any doubt always feel comfortable in asking the jeweler more about the color. Cut If you find the cut to be perfect in these gemstones, then the value of them will be definitely higher than the ones that don t have such a good cut. You will come across a 12

13 wide variety while buying amethysts gemstones, although the quality might be the same, the ones with the perfect cuts will always cost more than the others. Thus cut definitely defines the cost of these gemstones. Price of Diamonds Special patterns You will find that some of these gemstones have unique patterns since collectors love to have these in their collection because of their special patterns, the cost of such gemstones will definitely be higher than the rest. Size and clarity Both these factors also need to be considered by you while you are buying amethysts gemstones. The value of these gemstones depends on the clarity that is basically the number of flaws that are present in the stone. Size is also important because that too will determine the cost of these gemstones. Once you have established exactly what sort of amethyst you would like and have a good idea of the price you want to pay, the next step is to do some browsing online to find out what is available and what sort of price you can expect to pay. Using the search engines it is a good idea to put in the search field exactly what you are looking for instead of just amethysts otherwise you will get all sorts of things not necessarily related to amethyst jewelery. If you are after an amethyst 2 carat pendant then that is what you would enter into the search field. Do not confine your search to Google, other search engines can also bring up some interesting results. Here it is a case then of ensuring that the dealer or seller you are buying from is bona fide and not a fly by night website. Check an ensure that the site has a permanent fixed address and a phone number where you can contact a person. Also that there is a privacy policy, terms and conditions. In addition if you buy online then you cannot see the actual piece you are buying on a picture which may not be accurate at all so a returns policy is important. Alternatively you could locate a local jeweler that can supply what you want. The reasons for this are so that you can actually inspect personally the amethyst jewelery and also you can negotiate a price quite often, especially in a depressed sort of climate. If you are unable to locate a suitable piece in a local jeweler then you will need to find something on the internet. Mostly it is a matter of common sense but I hope that the above pointers help you to know how to buy amethysts. ~oo00oo~ 13

14 Diamond Glossary H ere are some common words used in the Diamond Industry and in this newsletter. 4Cs Diamonds are graded and priced according to what is universally referred to as the "4C's". They are Cut, Color, Clarity and Carat Weight. Below an explanation of each of the 4Cs: Appraisal A valuation of property by the estimate of an authorized person. With diamonds the appraisal is a written estimate of the approximate retail replacement value of diamond jewelry, which may be used for insurance coverage or other purposes. It is not the same as a grading report, which evaluates a diamond's characteristics (such as cut, clarity, carat, symmetry, etc.) only. Blemish A scratch or abrasion on the surface of a diamond. Provided they do not interfere with the symmetry of the stone and do not interfere with light in the stone they are not considered important. Brilliance brilliance is the white light that is reflected through the top of a diamond. This can be increase by the diamond being cut to the correct proportions to take advantage of the reflection of light from the facets to the brilliance. Brilliant Cut A Brilliant Cut, sometimes called the American Brilliant, is a 58-facet round diamond, This shape and faceting arrangement is designed for maximum brilliance, sparkle and beauty and is perhaps the most popular shape. Carat Perhaps everyone know the term carat. The basic unit of weight for a diamond. A carat is equal to 200 milligrams, or one-fifth of a gram. It is said that the word is derived from the word carob. In early India the carob bean was used for measuring the weight of gems as every carob seed weighs exactly the same. Clarity Clarity is the term given to indicate the purity of a diamond. Most diamonds have minute imperfections and the clarity is the way of grading the purity depending on the number of imperfections the diamond has or does not have. Cloud A cluster of very small inclusions inside a diamond that give a cloud effect. Tiny clouds will not interfere with the flow of light, but large or numerous clouds can affect brilliance. Color Diamonds are traditionally thought of as white or clear. But diamonds in fact do have color and this can be graded. Crown The crown is the top section of a diamond, above its widest point, or girdle, that comprises the table, and the star-, bezel- and uppergirdle facets. Culet A facet on the very bottom of a diamond. It is best to have a small or medium culet. A large culet will make it look like there is a hole in the bottom of the stone due to leakage of light. Absence of a culet makes the point of the diamond more easily damaged or chipped. 14

15 Cut This describes the shape of the diamond. There are basically eight cuts of diamond. Round Brilliant Emerald Cut Princess Cut Heart Cut Oval Cut Marquise Cut Pear Cut Round Brilliant Some of the most popular diamond cuts include Heart, Emerald, Marquise (Oval with pointed ends), Oval, Pear, and Princess with the Round Brilliant (R/B) probably being the most popular. Depth % (percentage) The height of a diamond (measured from the culet to the table) divided by the width of the diamond. The depth % is critical to creating brilliance and fire in a diamond. A depth % that is too low or too high will cause light to leak out of the stone, causing the diamond to lose sparkle. Depth The height of a diamond (measured from the culet at the very bottom to the large table facet on the top). Diamond The simplest of all the gemstones consisting of pure crystallized carbon. A diamond crystallizes under enormous pressure deep beneath the earth's surface Diamonds can be from 1 to 3 billion years old--more than two-thirds the age of the Earth itself. Diamond is also the hardest substance known to man. In fact, it can only be cut and polished by another diamond. Despite its hardness, however, it is not indestructible. If a diamond is struck at the right angle, it can chip or break. Eye-clean A diamond that has no inclusions visible to the naked eye -- flawless to the naked eye. This is normally true of all diamonds with a grade of about SI-1 or higher on the clarity scale. Facet The polished flat surfaces on a diamond. For example, a round brilliant diamond has 58 facets including the culet. Fair Cut Diamonds cut to less than perfect proportions. They have been cut to maximize the weight of the stone instead of enhancing the brilliance and sacrifice fire and brilliance. The less expensive stones may have good and very good cuts but will not have the same brilliance and fire that people would expect from a diamond. Fire Fire is the colored light that is reflected from inside the diamond. Colored light reflected from within a diamond. As in a prism light entering a diamond is divided up into the spectrum. The better quality diamond with better proportions the better the 'fire' of the diamond. This is called "refraction" or "dispersion" in the diamond trade. Fluorescence A glow, usually of a bluish color, which emanates from certain diamonds when exposed to ultraviolet light. Two thirds of all diamonds fluoresce to some degree but how they do so depends very much on the type of ultra violet light they are under. Girdle this is the narrow band around the outer circumference of a diamond. This is where a jewelry setting holds the diamond in a ring. Good Cut Diamonds cut with acceptable, but not perfect, 15

16 proportions. They generally have very good brilliance and fire and make excellent jewelry. altered rock, undecomposed kimberlite, which miners call "blue ground. Ice A colloquial word for diamonds, much favored by Hollywood in movies about gangsters. Ideal Cut Ideal Cut diamonds are usually more expensive than all other cut grades. This is due to three major factors: 1) extra time and skill are required to cut to such precision; 2) they are in great demand, and perhaps most importantly, 3) more of the original rough diamond must be sacrificed to achieve ideal proportions. Ideal Cut diamonds are also round diamonds that are perfectly proportioned (having depth percentages and table percentages that some people feel produce a "perfect" balance of fire and brilliance). They almost always have the highest grades on polish and symmetry as well, indicating the great care taken in the overall fashioning of the stone. These diamonds have had the finest craftsmanship to maximize the beauty of the diamond. Inclusion An impurity within a diamond, such as a spot or irregularity in the crystal structure of the stone. These can include a cloud, a fracture, another diamond inside the bigger one, liquid, etc. Inclusions can either be visible with the naked eye (usually SI-3 clarity and below) or visible only under magnification. Fewer inclusions means a finer clarity grade, increased rarity, and increased value. Kimberlite Kimberlite is a mica peridotite and a source of rich deposits of diamonds. The deposits occurring at Kimberley, South Africa were the first recognized and the source of the name. The Kimberly diamonds were originally found in decomposed kimberlite which was colored yellow by limonite, and so was called "yellow ground." Deeper workings encountered less Loupe A loupe is a small magnifying glass used to view gemstones. Usually 10x, or ten-power, magnification. The FTC requires all diamond grading be done under 10-power magnification; any flaws not detected under this magnification are considered to be non-existent by some dealers. Make Make describes the quality of the finish and proportions of a diamond. A good make will have proportions that maximize brilliance and fire. A poor make will decrease sparkle and fire due to the loss of light as it travels through the stone. The cutter is responsible for the make of a diamond as he is the one that cuts it to achieve the maximum brilliance and fire. Mohs Scale The Mohs scale is a table of relative hardness that ranks a mineral's strength and durability on a scale from 1 to 10, with 1 being talc and 10 being diamond. Developed over 100 years ago by Frederic Mohs. Moissanite Moissanite is silicon carbide and is manufactured in a laboratory. It is virtually indistinguishable from diamonds and it takes a real expert with special equipment to be able to tell the difference. Pavilion This is the bottom half of a diamond, from the lower girdle to the culet tip at the bottom. The pavilion should be neither too deep or too shallow otherwise light will leak out and the diamond will lose fire and brilliance. Peridotite Any of a group of igneous rocks having a granite like texture. 16

17 Point A measure of diamond weight. One point equals 1/100th of a carat. A diamond that weighs 0.50 carat is said to weigh 50 points. Polish A grade given to the external finish of a stone. The polish grades are from poor to excellent. Good polish is crucial for maximum brilliance of a diamond, but it takes a trained eye to distinguish between polish grades. Poor Cut Poorly cut diamonds with proportions and finish that make them look relatively lifeless to the eye. Such stones are ok for industry but not for jewelry. Sparkle The 'sparkle' of a diamond is the combination of fire and brilliance. The light that reflects out of a diamond as it moves. Sometimes called "scintillation" by older dealers. Stones A word for diamonds and other precious gems. Symmetry A diamond should by symmetrical. Symmetry is the grade used to describe the uniformity of the cut of the diamond. This can range from excellent down to poor. The un-symmetrical a diamond is the poorer will be the quality of light through the stone. Table The top or large flat face of the diamond is called the table. It should be in proportion to the rest of the diamond to gain the best fire and brilliance. Tourngat Diamonds cut to fit very strict requirements for depth percentage and table percentage. These outstanding proportions maximize fire and brilliance in the diamond. Also a region of northern Quebec. Weight the weight of a diamond is measured in carats.a carat is.2 grams. A gram of diamond would be a massive 5 carats. Very large in diamond terms although the actual diamond is physically small. Wholesale Wholesale prices are listed PER CARAT to show this price difference. For instance, a 1/2- carat round brilliant diamond of G/VS2 quality may sell for $3,600 per carat ($1,800 for the stone), whereas a 1-carat stone of the same quality would likely cost $6,300 per carat ($6,300 for the stone) because it is twice the size and more rare. Zirconia Also known as Cubic Zirconia, this is a substance often used as a substitute to genuine diamonds. It is a carborundum substance and easily told from diamonds due to being heavier than diamonds. ~oo00oo~ 17