Where the world comes to find out about diamonds. Newsletter. August 2012 Volume 2 Number 8

Transcription

1 Where the world comes to find out about diamonds Newsletter August 2012 Volume 2 Number 8

2 Where the world comes to find out about diamonds Newsletter of the Price of Diamonds website Price of Diamonds Newsletter August 2012 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. Dear Reader, ~ Editorial ~ This month we feature Kay Jewelers. Also an extensive article on Buying Genuine Diamonds. Plus the usual features. I do hope you have a great month! Michael Price of Diamonds Contents Editorial 2 Diamond Dealer of the Month Kay Jewelers 3 Diamond News 6 Buying Genuine Diamonds 8 Glossary 13 Copyright 2012 By Technical Author Services Pty Ltd. All Rights Reserved. All copyrights and trademarks belong to their respective owners ~oo00oo~ 2

3 ~ Diamond Dealer of the Month ~ B efore you buy diamonds and jewelry from a Kay Jewelers Diamond Store or it is a good idea to read this write up and find out who and what Kay Jewelers actually are and how safe they are. It is always a good idea to do some due diligence before buying from any diamond dealer or jeweler online. Who are Kay Jewelers Kay Jewelers was started by Sol and Edmund Kaufmann in 1916 so have been going for over 90 years now. They started with one jewelery shop in Reading Pennsylvania and it was a in the corner of their fathers furniture shop. Since then Kay Jewelers has grown to over 900 stores in the US coast to coast. Kay Jewelers is now a division of Sterling Jewelers Inc with the headquarters in Akron Ohio. Both belong to signet jewelers (see Signet Diamond group) and any corporate information about key Jewelers comes out of Kay Jewelers Customer Service Kay Jewelers operate mainly in Malls across the US with standard opening hours,. They are also open online in the mornings except Sunday where they are open in the evenings. Kay Jewelers is the only company of the signet group where you can shop online. All the others are simply store based retail. The website is very comprehensive with lots of information about diamonds and jewelery in general. The FAQ page lists the following questions. I would like to write a letter to your corporate offices. What address can I use? If I want to mail a payment, what address should I send it to? Do you offer any warranties on your merchandise? What is Kay Jewelers return and refund policy? Do you have a trade-in policy? What determines the price of a diamond? What is the difference between white gold and platinum? What colored gemstones are considered precious? What is the difference between natural and lab -created stones? Do all rings come in the same size or are there different sizes available? Do you offer engraving? How will I know when my order is ready for pick up at my Kay Jewelers store? When will my credit card be charged for my in -store pick up? Will I have to pay shipping charges if I request in-store pick up? Can I have someone other than me pick up my order? What do I need to bring with me to the store to pick up my order? If requested, can I have my merchandise gift wrapped at the store? How long do I have to pick up my merchandise? Why do you measure jewelry in millimetres? What is your policy regarding conflict diamonds? What is your policy regarding the gold supply chain? 3

4 All the answers are online when you click the question of course but some of the more relevant information is shown below. Kay Jewelers Lifetime Diamond Trade-In Policy You can trade in your diamond for another diamond for at least double the trade-in value. The trade-in value being defined as the original purchase price, excluding charges such as tax and shipping. Kay Jewelers state that color gemstone jewelry is not eligible for trade-in. Trade-Ins of in-store and online purchases are accepted at any Kay Jewelers location. But Trade-ins are not accepted at kay.com. Free Lifetime Cleaning and Inspections Kay Jewelers offer a free lifetime cleaning and inspection. Simply bring your diamond or color gemstone jewelry into any Kay Jewelers location as often as you wish for free professional cleaning and inspection. (Cleaning and inspections are not available at kay.com however.) Kay Jewelers Return and Exchange Policy Jay Jewelers state: If for any reason you are not completely satisfied with your purchase, we will gladly accept your return or exchange for 60 days from the date of purchase. Custom designed jewelry is not returnable. Exchanges can be made at any Kay Jewelers location. (Exchanges cannot be made at kay.com). Kay Jewelers Store Products Kay Jewelers have an extensive range of jewelery products. Here is a partial list to give an idea of the products available. Engagement & Wedding Rings Leo Diamond Engagement Rings Wedding & Anniversary 3 Stone Diamond Rings Leo Diamond Rings Earrings Necklaces & Pendants 3 Stone Diamond Diamond & Gemstone Jewelry Diamond Sapphire Emerald Ruby Tanzanite Cultured Pearl Garnet Opal Amethyst Aquamarine Peridot Citrine Topaz Gold, Silver & Other Jewelry Yellow Gold White Gold Silver Titanium Platinum Stainless Steel Pink Gold Two Tone Gold Tri Color Gold More Metals 4

5 Jewelry Types Leo Diamond Rings Necklace & Pendants Chains Earrings Bracelets Watches Charms & Slides Men s Jewelry Body Jewelry Baby Jewelry Kay Jewelers Payment Options Standard payment options are accepted at Kay Jewelers. Credit cards, cash in store etc. Checks may be accepted but likely only by personal arrangement and for existing customers. Like many large jeweler chains, Kay Jewelers offer their own credit card. Partially to help retain customers and reduce churning but also to increase the profit margin. The interest for the card can be anywhere from nominal up to 21 pe4rcent so it pays to read and understand the terms and conditions and requirements online before taking up the offer of a credit card. Kay Jewelers Store Warranty & Guarantee Kay Jewelers have a return and refund policy. If for any reason you are not satisfied with your purchase, you may return it within 60 days to any Kay Jewelers or kay.com. Or you may exchange it within 90 days of purchase at any Kay Jewelers. Watches are different and may be returned within 30 days in their original condition, unworn and unaltered. They will need to be accompanied by their original packaging and paperwork, instructions,. Warranty document etc. A Lifetime Diamond and Color Gemstone Guarantee is offered by Kay Jewelers They will guarantee their diamond and color gemstone jewelry for a lifetime, provided a 6- month inspections have been performed and documented by an authorized representative. They state they will replace, free of charge, including the labor and materials necessary to set the replacement diamond or gemstone. Mounting Guarantee, any diamond, emerald, ruby or sapphire covered by this Guarantee if it chips, breaks, or is lost from its original setting during normal wear. The proviso is that in order for your Diamond and Gemstone Guarantee to remain in effect, you must have your diamond and/or gemstone inspected and have the inspection documented every 6 months by an authorized representative. In addition, all necessary repairs must be completed by our representatives. Kay Jewelers will guarantee for twelve months from the date of purchase, the mounting for your diamond, emerald, ruby or sapphire against all defects in material or workmanship. They undertake to repair or replace your mounting without charge if any defects are found during this period. More Information on Kay Jewelers Provided you read and understand the terms and conditions of sale, as with any jewelers Kay Jewelers will accommodate any reasonable request. They are interested in retaining the clients business and, it seems, will do all they can to keep it. ~oo00oo~ 5

6 Rapaport News ~ Trading centers quieter than usual ahead of summer vacations in Belgium and Israel. Buyers avoiding large purchases while suppliers adjusting to lower prices. De Beers drops prices average of 3% but sightholders continue to reject non-profitable DTC goods. July DTC sight estimated at $420M before rejections. Harry Winston estimates rough prices -8% in 2Q. Rio Tinto 2Q diamond production +3% to 2.8M Cts. BHP Billiton FY4Q production - 28% to 413K Cts. Chow Tai Fook 1Q revenue +16%, same-store sales +4% reflecting cautious Far East demand. Birks & Mayors 1Q sales -3% to $69M. India s June polished diamond exports fall 35% to $1.5B, rough imports -26% to $1.2B. DTC July Site Estimate $420M The Diamond Trading Company's (DTC) July sight estimate was $420 million, but that was before deferments or ex-plan. De Beers reduced prices approximately 3% across most categories of goods, but sightholders continued to complain that the goods offered no profitability. There was very little trading of DTC boxes as sightholders were not prepared to lose money given that they are selling at double digit discounts on the secondary market. Sightholders have started to reject DTC allocations due as De Beers kept its prices steady while the market weakened. DTC subsequently notified sightholders in June that they could defer up to 50% of their July sight target to any other sight in the current intention to offer (ITO) period that ends in March In addition, DTC has offered sightholders the opportunity to take additional goods at the sight. De Beers is scheduled to report its financial results for the first half of 2012 on July 20. Rapaport Price of Diamonds ~ ~ Diamond News ~ ~ estimates that DTC sales fell 19% to approximately $2.83 billion during the period. Michael Hill's FY Sales +5% Michael Hill International reported that sales rose 5% year on year to $408.2 million during the year that ended June 30. Same-store sales were flat at $378.6 million. Sales in Australia rose 2% to $267.1 million, New Zealand sales grew 7% to $87.4 million, Canada sales jumped 14% to $44.2 million and U.S. revenue increased 13% to $9.6 million. Diamond World A need for Balance? De Beers reduced its prices of rough diamonds by around 3 percent in its July 2012 sight. But apparently this reduction is not parallel to the market trends. Some Sightholders deferred purchases, justifying that they are in fact loosing much more on the polished diamonds they manufacture and in turn their business is being hurt. Similar sentiments were also seen in the June 2012 Sight. In the current scenario where demand is softening, buyers are being cautious about their purchases. Also, buyers today have other opportunities to buy in the market, where prices are substantially lower than De Beers. Given the leverage that Sightholders were allowed to defer 50 percent their July sight target to any other sight in the current intention to offer (ITO) period that ends in March 2013, it remains to be seen if buyers would be willing to buy or continue to defer their boxes if market situations compel them to. At present, what also clearly stands out is that De Beers is holding onto its pricing, irrespective. Being a forerunner in the industry may have earned De Beers the leverage to do so, as it may seem, but 6

7 what good will it leave for De Beers? A possible stock pile up? Rio Tinto Mining giant Rio Tinto recorded 3 percent (on y-o-y basis) increase in its diamond production the second quarter of The said production stood at million carats. The company s Argyle mine in Australia was believed to be the major contributing factor in the increased diamond production. Production at the Argyle mine rose 6 percent to million carats, as the mine achieved higher grade ore, reports say. BHP Billiton BHP Billiton s fourth fiscal quarter which closed on June 30, 2012 recorded a 28 percent drop (on y-o-y basis) in diamond production, achieving a volume of 413,000 carats. The company s only diamond asset is the Ekati mine in Canada. The company s diamond production in the full fiscal year dropped 29 percent to million carats. Information website launched for 35th World Diamond Congress The information website of the 35th World Diamond Congress is launched, offering services like registration, information and the agenda of the event. The Congress is slated in Mumbai between 14 to 17 October, The website is accessible at This is the first time that India is hosting the Congress. It will be hosted by the Bharat Diamond Bourse (BDB) and The Gem & Jewellery Export Promotion Council (GJEPC). The website also informs about a by-invitation mini conference, which will be part of the Congress and will address key topics. The World Diamond Congress is the bi-annual general assembly of the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association (IDMA). India s polished diamond exports drop 35% in June June 2012 closed with a drop in the value of polished and rough diamond exports and imports for India. There was a 35 percent (on y-o-y basis) drop in the country s polished diamond exports which touched $1.450 billion in the month. Imports of polished diamonds decreased 85 percent to $271 million. The country s net polished diamond exports stood at $1.179 billion ($462 million in June 2011). Rough diamond exports fell 26 percent $113 million. The import of rough diamonds totalled $1.182 billion after a 26 percent drop. Net rough imports decreased 26 percent, to $1.069 billion. The month culminated into net diamond account (valued as the difference between net exports and net imports) valuing $110 million (in June 2011 it reflected polished export deficit of $976 million). Faberge's launches Karenina collection Faberge launched its latest collection, whose creative inspiration is the heroine of Leo Tolstoy's masterpiece, Anna Karenina. The title of the collection Karenina befits its inspiration. This special collection is crafted incorporating the romance and aura of the era, the heroine s femininity, done in contemporary style. A highlight of the collection is an opal pendant featuring diamond clusters around a magnificent rosecut diamond. The pendant is strung on a white gold chain. There are translucent white opal earrings matching to this set. This set is also crafted in Akoya pearls or emeralds instead of opals. ~oo00oo~ 7

8 ~ Example Diamond Prices ~ What about other gemstones? Here are some sites about various other gemstones Amethysts Emeralds Garnets Jade Opals Pearls Peridot Rubies Sapphires Topaz This space to Let! Contact michael@priceofdiamonds.org For details. 8

9 Buying Genuine Diamonds Price of Diamonds Y ou don t need to know ALL about diamonds in order to ensure you are buying genuine diamonds and not fakes. However, there are some diamond scams or cheats that occur sometimes and it is best to be aware of them and the way to do this is to learn more about diamonds and the diamond industry. There is, therefore, no substitute for educating yourself about diamonds and understanding how they are graded and what the most common ways of tricking consumers into buying poor quality diamonds art a high price or even fake diamonds sold as real. Here is a list of the areas to look out for. Sometimes a jeweler will tell you that the diamond you are looking for is a, This is a bluewhite diamond. This might sound nice but it is an old term and not used much these days. The term blue-white refers to the fluorescence which results in natural light, which contains ultraviolet wavelengths. Blue fluorescence can actually make a colorless diamond look a little oily or milky in sunlight and decreases its value. With stones that have a faint yellow color, a moderate amount of fluorescence will make it look whiter as it will cancel some of the yellow. So ignore the term blue-white when used by a jeweler. It is said to impress and does not necessarily describe a good quality stone. Jewelers often list total carat weight of a ring and not the center stone separately. This can be a problem as the center stone is generally of a higher quality than the surrounding smaller stones. If the carat weight of the center stone is proportionately less than the additional smaller stones which are often of a lower quality. This can mean the value of the center stone is less than implied and this can make a difference a thousand dollars or more. In addition you cannot properly compare the carat price of a diamond in a ring with another diamond in another ring as you don t know the actual carat weight of the diamond. This can be crucial as a larger diamond of the same weight as the total weight of 6 smaller ones maybe proportionately worth much more. The value of a one carat diamond is worth much more than the total weight of 6 smaller diamond of the same quality. For instance, if you have one G/VS2 diamond weighing 1.00 carat, it might be worth about $5,500. But 10 smaller G/VS2 diamonds totalling 1.00 carats might only be worth about $1,800. In addition, smaller stones are also usually of poorer quality as it is the bigger stone people look at, and rarely do people consider the smaller stones in a ring. The way to over come this is to ask for the weight of the center stone in writing. If the jeweler will not give it, go elsewhere. Discounts and sales. In a nutshell if a jeweler can sell a diamond at half price then he has marked it up far too high in the first place. It usually means that the actual value of the diamonds for sale are 9

10 much lower than even the sale price and therefore the quality is also. Ask to see a certificate from an independent gemological laboratory and see what the jeweler says. If he says, huh? or it is not needed for this particular diamond, go elsewhere. You get what you pay for and if you pay for cheap diamonds you will get exactly that. If you go to a store to buy a specific diamond you have seen advertised and are then told when you get there that, That diamond has been sold but here is a great one. Don t buy. This is called the Bait-and-Switch and quite common in many stores. It is illegal but difficult to monitor and so many stores will get away with it. Do you notice that all jewelery stores have heaps of white light? This is to show of the diamonds in the best possible manner. This is fair enough; every jeweler wants to show off his wares in the best possible light. But some go a little further. Some light bulbs have strong ultras violet wavelengths and these tend to make most diamond fluoresce blue. Of course this is artificial and the easy answer to this is to take the diamond outside in natural light and look at it there. Then you will see the true color of the diamond. Again, always ask for a certificate from an independent laboratory and if the jeweler will not supply one, then goodbye jeweler. Another reason for getting a proper certificate is that some jewelers engage in the popular art of grade bumping. Here they will state that the diamond is of a higher grade than it actually is. This can make a difference of a thousand dollars or so to the price of a diamond. There is something called the Fraction System. Here you need to be careful to make sure you are getting what you are paying for. You look at a diamond and the tag states it is a 3/4 carat diamond. Looks fine and the price seems right. However the FTC allows jewelers to round off diamond weights and guess in what direction they round them off! A diamond labelled as a 3/4 carat weight diamond may actually weigh anywhere between.69 and.81 carats. This can be a lot of money as, apart from anything else, the price of a diamond leaps up exponentially with the increase in weight. For example you might buy a diamond that has been rounded down to.69 carats when it is advertised as.75 carats (3/4 carat). If a diamond of G/VS2 is worth about 2,100 dollars but you bought a diamond you thought was.75 carats and paid 3000 dollars you will have lost 900 dollars. Imagine your surprise when you come to get the stone valued at some date in the future! You need to get in writing the exact weight of the center diamond and if they profess being unable to do so then I suggest you leave the store and go elsewhere. Many dealers will give an in house appraisal of a diamond they are selling. You don t hire a fox to guard the hen house and you don t expect to get an appraisal in your favor from the dealer selling, you a diamond. In all cases you should get an appraisal from an independent gemologist or appraiser. Some diamonds have flaws and you should ask a jeweler to take a diamond out of a setting to show you the underside or the area when the prongs hold the diamond in place as that will be where any flaws are present. You might consider a small flaw does not matter but it does when it comes to the value and the price of the diamond. Diamonds in rings sometimes turn and that sudden black spot you notice is not new but was previously hidden by the Claws or prongs. Another thing to watch for is altering the grad- 10

11 ing of diamonds on certificates. This is most rare as certificates from gemological laboratories are usually laminated to prevent such activities. Check the edges of a laminated certificate. If the edges look like they have been tampered with then walk away and do not buy that diamond as it is quite possibly lower grade than stated on the certificate. Fake certificates are also obtainable. These come from similar sounding names to existing laboratories but are actually fake and the laboratory does not really exist. An official local gemologist certificate is most likely owned by the jewelery store you are thinking about purchasing from and so is hardly likely to give an impartial assessment of the stone. Don t accept certificates from labs with familiar-sounding names like Gemological Institutions of America (instead of Gemological Institute of America), or American Gemological Services (instead of American Gemological Society). If it is not from the true GIA, AGS or EGL gem labs as described on other pages of this site, don t believe it. Check the yellow pages in your country to find the real gemological laboratories in your country. That is not to say that the smaller jewelers are not selling the genuine article. Just that you have no way of verifying that without a proper certificate. Sometimes a dealer will ask you to leave a deposit while you take the diamond for an appraisal elsewhere. This is fine provided that you get a written guarantee that the deposit is refundable if the appraisal does not satisfy you and you return the diamond. If this is refused. Leave the shop. Also ensure that the exact measurements of the diamond are written down also including the weight, color and clarity on the agreement form. Always compare prices yourself. Do not accept the compare price charts and list prices of the dealers. These are couched in such a way as to make their diamonds look cheaper. In fact genuine diamonds are all very much the same price. The only way a dealer can offer you a cheap diamond is they are disguising the quality of the diamond and it is less than you are told. Three other points to watch for, although not very common these days. Make sure it is a genuine diamond and not a moissanite. Again a proper genuine certificate describing the diamond will help here. Some diamonds have a fracture and this is filled by melting a type of crystal into the surface fractures of a diamond. This is acceptable but should be stated at the time of sale and the price reduced accordingly. Be aware, however, that many laboratories will not give a certificate for fracture filled diamonds Lastly there is the situation where a diamond might be painted or chemically coated. This is a deceptive practice and involves just a tiny spot of purple or blue pain on the lowest tip of the diamond, also called the culet. Unless you look real close you my not detect it. It makes an inferior diamond look more like and expensive diamond so is something to watch for. A way of detecting this is to ask for the diamond to be ultrasonically washed in front of you. If the dealer refuses. Its bye bye dealer. The above are just a few points to watch for when buying genuine diamonds. There is no substitute for doing due diligence and understanding all about diamonds and the price of diamonds and their value. This way you can be sure you are buying genuine diamonds! ~oo00oo~ 11

12 Up and Coming World Diamond Events Auctions, Exhibitions in 2012 By Month in 2012 By Date By Country August Rapaport at JCK Toronto Rapaport at IIJS - India International Jewellery Show 2012 September Rapaport at International Jewellery London 2011 (IJL) Rapaport at The Smart Jewelry Show - Dallas Rapaport at Hong Kong Jewellery and Gem Fair October Rapaport at Jewellery Wonder Rapaport at Dubai International Jewellery Week Australia JAA International Jewelery Fair Sydney Sydney Exhibition Centre, Darling Harbour Sept 2-4th 2012 Hong Kong June Hong Kong Jewellery & Gem Fair Hong Kong Convention Center Sept 19-25th Malaysia MIJ Exhibition Sdn Bhd 19th Malaysia International Jewellery Festival 2012 (Autumn Edition) [Malaysia] October 5,2012 To October 8,2012 ~oo00oo~ 12

13 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 compris- 13

14 es 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. 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 ema- 14

15 nates 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, proportions. They generally have very good brilliance and fire and make excellent jewelry. 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 altered rock, undecomposed kimberlite, which miners call "blue ground. 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 15

16 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. 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 dia- 16

17 mond 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. Price of Diamonds 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. 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. ~oo00oo~ Wholesale 17