New Gem Scam Targeting Our Troops

Composite RubiesAll gem scans are bad, but some are just worse than others. And, when our troops are scammed, it’s just unconscionable.

Credit goes to Antoinette Matlins, a highly respected gem expert and writer, for uncovering this scam and issuing public warnings.

I’m posting this in the same spirit. You may have a loved one or friend serving in Afghanistan. If he or she is considering buying a gem because it’s cheap or near a mine, caution them.

Troops are coming home with rubies only to find out that the gems are not rubies at all. In fact, they’re not even gems, but a blend or composite of extremely low quality corundum infused with lead glass.

Other trade organizations are noticing the numbers of composite stones. JCK reports that a St. Louis jeweler had the unenviable task of telling a colonel in the Armed Forces that the eight “rubies” he bought – and paid $5000 for from an Army and Air Force Exchange Service approved vendor were worth less than 80 percent of what he paid. In the same report, jewelers are indicating that the scam is so widespread they are no longer buying rubies from the public.

As with other manufactured gemstones, there’s nothing wrong with these composites as long as the consumer knows what they are and how to take care of them.

These lead-glass composites are pretty. But they’re extremely fragile. An accidental blow or knock can break them and Matlins reports that even lemon juice can damage them. In addition, unless a jeweler knows they’re composites, they will crumble during an ordinary setting process.

As with any gemstone purchase, there are a number of commonsense steps to take:

  • Buy only from a reputable dealer.
  • Ask if the stone has been treated. Most rubies are heat treated and this is standard trade practice.
  • Insist the dealer specify what he is selling on your sales receipt.

If you or your loved one is looking at rubies, familiarize yourselves with a 10x jeweler’s loop. Lead-glass rubies show gas bubbles and blue flashes under magnification.

Matlins reports that members of the Accredited Gemologists Association (AGA) are willing to provide free identification for consumers who suspect they may have been sold a composite ruby. There are some limitations. The free service is for identification only, not for an appraisal or valuation. Contact: www.accreditedgemologists.org to find an AGA member in your area.

 

 

Posted in Gemstones | Tagged , , , , ,

When is a Pearl a Pearl?

When is a pearl a pearl?The CIBJO conference, coming up later this month, is anticipated to address the weighty and controversial issue of pearl nomenclature.

Who is the CIBJO?  Pearls? Controversial? And, why does it matter to pearl and bead stringers what they say about pearls?

It matters. Believe me. Standards on nomenclature affect the way we grade and value pearls and they affect the way consumers perceive them.

It’s important for anyone who has even a passing interest in making pearl jewelry to know about the CIBJO and what they decide about this issue.

The CIBJO is The World Jewellery Confederation. It is a confederation of national and international jewelry trade organizations. It describes its mission as “to encourage harmonization, promote international cooperation in the jewellery industry, and to consider issues which concern the trade worldwide. Foremost among these is to protect consumer confidence in the industry.”

To promote this harmony and cooperation, the CIPJO developed a series of “Blue Books.” The Blue Books provide a definitive set of standards for the grading and nomenclature of diamonds, colored stones, pearls, precious metals and more recently for gemological terminology. The Blue Books are compiled by committees consisting of representatives from trade and educational organizations and gem laboratories from around the world.

Blue Book standards also apply to advertising, marketing, labeling, sales and promotions. Here in the United States, the FTC which regulates advertising claims, is acutely aware of CIPJO activities and takes them into account when setting its own standards.

So why is the pearl industry watching this May 17 conference so closely?

The CIBJO will decide upon what the word “pearl” actually means.

Think you know? Think again.

The traditional CIBJO position has been that if the unqualified word “pearl” is used then the item being described can only be a natural pearl.

Advocates of change insist that the meaning of the word “pearl” has changed to have a generic meaning, that is, the term is perceived by the consuming public to include any type of pearl, including faux pearls.  They say that the CIBJO rule should be changed to reflect origin, that is, that a pearl should be clearly identified as a natural pearl, cultured pearl or imitation pearl.

The objective is to arrive at clear and unambiguous terminology when using the word pearl.

These industry debates may seem arcane, but they do have real meaning and serious implications for the way makers of jewelry describe and market their goods.

 

 

 

 

 

 

Posted in Business, Pearls, Sales | Tagged , , , ,

Cleopatra and Marc Anthony Pearl Legend Entirely Plausible

Cleopatra's Pearl Banquet, Giambattista TiepoloWhen I ran the gallery, I was often asked to give lectures and gallery talks on jewelry, including pearls. When pearls were the subject, I frequently mentioned the famous story about Cleopatra and Marc Anthony.

According to the legend, Cleopatra bet her lover Marc Anthony that she could provide him with the most expensive banquet the world had ever seen. Marc Anthony took the bet, but when the day of the banquet arrived, was disappointed that it really was a mundane sort of affair.

Cleopatra, who was wearing a pair of earring worth 10 million sesterces, told her lover not to be hasty.  (Sesterces, a unit of Roman currency are difficult to estimate in today’s dollars. As best I can determine, when gold was $300 some currency experts estimated 10 million sesterces at $500,000. At today’s price that would be on the order of $1.5 million.)

According to Pliny the Elder she then “ordered the second course to be served. In accordance with previous instructions, the servants placed in front of her only a single vessel containing vinegar…She took one earring off, and dropped the pearl in the vinegar, and when it was wasted away, swallowed it.”

Marc Anthony presumably told her to stop there since the legend refers to only one destroyed pearl.

I’ve always liked the story. It brings remote historical figures to life and suggests the age old value and romance associated with pearls.

But I’ve always considered it a story. Cleopatra’s dates were 69 B.C. – 30 B.C. while Pliny the Elder was born in 23 AD so he couldn’t have had first hand knowledge about the banquet.

More compelling is the fact that although we don’t know the exact size of Cleopatra’s pearls, they had to be enormous.  Pliny described them as “two most precious pearls, the singular and only such jewels in the world, and even Nature’s wonder.“

So, how then could one of them be dissolved in vinegar in the short amount of time Pliny implies?

Well, as it turns out, it really could have happened.

Researcher and classicist Prudence Jones of Montclair State University in New Jersey experimented with vinegar to find out whether the acetic acid concentration in vinegar is sufficient to dissolve calcium carbonate in a large pearl.

Using a solution identical to white wine vinegar sold in the supermarket today, she found it takes 24 to 36 hours to dissolve a pearl weighing one gram.

She also addressed a second issue—given the taste of vinegar, how could Cleopatra drain an entire goblet?  According to Jones, “The calcium carbonate in the pearl neutralizes some of the acid, so the resulting drink is not as acidic as vinegar.”  The dissolved pearl apparently leaves a translucent gel on the liquid’s surface.

She speculates that Cleopatra softened the pearl in advance and crushed it before dropping it into the goblet.

Her conclusion:  the legend is plausible.

It’s an interesting addendum to a compelling story.

By the way, Pliny mentions that the remaining pearl was cut in half and made into earrings for the statue of Venus in the Pantheon Temple of the gods in Rome.

Posted in Jewelry History, Pearls | Tagged , , ,

An Unexpected Costume Jewelry Aficionado

Alexis Kirk Cork NecklaceThe Duchess of Windsor’s love of jewelry is almost as legendary as her romance with the Duke of Windsor. However, we normally associate her jewelry with Cartier, including the famous flamingo and panther jewelry designed by Jeanne Toussaint with whom the Windsors collaborated on a number of pieces.

Less well known is the fact that later in life, the Duchess apparently developed a fondness for costume jewelry, especially the designs of American Alexis Kirk.

Alexis Kirk sold “statement” jewelry in the 1960s and 1970s from his studio at 55 Park Avenue. These are large, bold pieces that used cork, feathers, plastic and other materials not normally associated with jewelry, especially the jewelry belonging to Wallis Simpson. Kirk was apparently intrigued by ethic themes and his jewelry, including a feather boa and a neck to navel body ornament (both acquired by Simpson), does reflect this design interest.

Ad for Sale of Simpson Costume JewelryApparently, she became acquainted with his jewelry sometime in the 1970s when she visited his studio with friends and commissioned five pieces from him. She was 71 at the time.

According to Kirk’s widow, the Duke and Duchess spent 45 minutes discussing the designs. This isn’t surprisingly as the couple loved jewelry and collaborated on pieces with other designers.

The jewelry was delivered to their penthouse at the Waldorf Astoria and the Duke sent Kirk a check for $89.

The five pieces were bought back from the Windsor estate in 1989 by Alexis Kirk after Simpson’s death.  Last year they were auctioned by his widow.

Posted in Jewelry Design, Jewelry History | Tagged , , ,

Tests for Precious Metals can Prevent Fraud

A news item drifted into my in-box confirming what many of us already knew: the price of silver is forecast to rise in 2012 and will likely top a whopping $40 an ounce before the end of the year.

The “World Silver Survey 2012” was performed by Thomson Reuters.

The implications for the trade and for our own pearl and bead stringing niche are obvious. Many of us who routinely used 14 karat gold in our designs shifted away from the precious metal when it began its inexorable climb a few years ago. Back then, in 2009, silver at $14.67 an ounce was our fall-back. Now with costs moving up, we are seeing firms produce steel, tungsten and new metal alloys to ease price pressure on manufacturers and the end-user.

It’s a testament to the creativity in our niche that we’re seeing so many pearl and bead stringers begin to learn new techniques, such as macramé and kumihimo, as substitutes for clasps and chains. (In the Advanced Pearl and Bead Stringing DVD, I teach a macramé technique I developed years ago as a substitute for clasps.)

However, there are times that you absolutely need to know if what you have is gold or silver. And, unfortunately, there are dealers who will mislead you about the content of precious metals in their findings and other finished goods.

This means you’ll have to learn about metal assays.

Metal Assays: A Three-step Process

Here, I’m not going to describe every assay test in detail. When you buy an assay kit, you’ll be supplied with detailed instructions on how to use it.

But I do want to give you a solid overview of common assays, what to expect and how to get started.

10X Jeweler's LoupeFirst, get a jeweler’s loupe. Buy the 10X loupe, meaning you have a magnification of 10 times. This is the trade standard and used for everything from looking for hallmarks to grading gemstones.

Jewelers’ loupes are very inexpensive and well worth the price, usually under $20. Use it to look for hallmarks on the item you’re buying.

It goes without saying that you need to be familiar with the US hallmarking system. This isn’t complicated. Just read up on it.

It’s important to note that although metal is supposed to be hallmarked, it isn’t always and the omission is not always an attempt to deceive. You’ll sometimes see hallmarks missing on artisan or craft jewelry, for example, where the jeweler either forgot or didn’t own the stamp needed to mark the metal. In these circumstances, ask why there is no hallmark.

Nevertheless, if the hallmark is missing, it’s a red flag.

Rare Earth MagnetThe next step is to acquire a serious magnet. The best are called “rare earth” or Neodymium magnets and they’re available for about $10. Run the magnet over the items you’re testing. If a metal is attracted to the magnet it means it contains little or no precious metal. (If you want to sell your gold, most refiners will not accept metal that fails this preliminary test.)

The problem with the magnetic test is that gold plated and gold filled jewelry is NOT attracted to the magnet, so you will have to do further testing to determine higher karatage. And this leads to the third most commonly used assay test, the acid test.

These tests involve dropping a small amount of acid on the metal and watching to see how it reacts to the metal. Like the loupe and the magnet, the kits are also not expensive, most I’ve seen are under $20 and they will provide clear instructions on use.

The problem with acid tests, though, is that in most cases, you’ll want to test more than just the surface layer of metal. A good plated clasp might “read” as 14 karat gold, for example, if you just test the surface. So, to obtain an accurate reading on the metal, you’ll have to file it so the acid can test below the surface level. This means marring the metal. Sometimes this can be polished off, but sometimes it’s permanent.

If you work with precious metals, and as a pearl and bead stringer, you undoubtedly do, knowing how to protect yourself from fraud is critically important. Learning how to perform assay tests is an important means of preventing it.

I discontinued comments on the site because of the heavy amount of spam. To contact me, use the contact form and I’ll answer right away.  If you have a legitimate criticism or complaint, I’ll print it. However, if you like this or any articles on the site, I’d appreciate a “like” at the top of the page.

Posted in Business, Gold, Manufacturing Tips, Reference | Tagged , , , , ,

The Tiffany Diamond Gets New Setting

Today, Tiffany & Co. unveiled its new setting for its famous yellow diamond. The new setting commemorates the 175th anniversary of the Tiffany Diamond, perhaps the most famous yellow diamond in the world.

Not only is the Tiffany Diamond unique in itself, it is also closely associated with one of the towering figures in gemology.

The diamond was discovered in the Kimberly diamond mines in South Africa in 1877.

In 1878, Charles Lewis Tiffany, founder of Tiffany & Co., purchased the 287.43 carat rough and sent it to Paris for cutting.

George Frederick Kunz, at the time chief gemologist for Tiffany & Co., was placed in charge of the stone’s cutting.  In 1878, Kunz had just joined Tiffany and was only 23 years old.

Kunz studied the stone for a year and was responsible for adding 24 facets to the accepted 58-facet brilliant cut, producing a cushion-shape brilliant with a carat weight of 128.54 carats. The cut is a major reason why the stone is regarded as one of the most beautiful diamonds in the world and it was a daring and risky decision for the young self-taught gemologist to make.

In addition to his work on the Tiffany diamond, Kunz is well-known for discovering a new gem variety of the mineral spodumene which was named “Kunzite” in his honor. And for those of us who love trivia, John F. Kennedy’s last gift to Jacqueline was a 47 carat Kunzite ring.

Kunz never completed college although he was awarded numerous honorary degrees, including a PhD from the University of Marburg which was withdrawn in 1920 because of his sympathy for the French and English allies against Germany during World War I.

Kunz wrote a number of books and articles. If you ever have the opportunity, pick up a copy of The Curious Lore of Precious Stones and The Book of the Pearl, both of which I believe are still in print and which are tremendous reference resources.

The Bird on a Rock SettingThe Tiffany diamond has been set four times, twice in designs by Jean Schlumberger, Tiffany’s famous designer.  The stone was set in Schlumberger’s “Ribbon Rosette” necklace which was used to promote the 1961 movie Breakfast at Tiffany’s. Later it was mounted in Schlumberger’s “Bird on a Rock” setting.

The new platinum setting includes 120 carats of white diamonds and took a year to craft.

 

 

 

 

 

Posted in Business, Gemstones, Jewelry Design, Jewelry History | Tagged , , , , ,

Glimpse of Jeweler Who Died in Titanic Tragedy

the TitanicThis Sunday marked the 100th anniversary of the sinking of the RMS Titanic, the luxury passenger liner whose collision with an iceberg caused it to break up in the ocean about 375 miles south of Newfoundland.

Generations of people around the world are familiar with the tragedy and the poignant stories of individual passengers. However, most stories center on well known people. Here is a glimpse into the life of a lesser known person, Ervin Lewy, a young Chicago jeweler.

Ervin G. Lewy was 31 when the Titanic sank. He was a partner with his brothers, Marks, Jay and Max, in the Lewy Brothers Jewelry Company where he held the position of Treasurer.  According to the Chicago Examiner, Tuesday, April 16, 1912,  the Lewy brothers established Lewy Brothers Jewelry in Chicago in 1902 and it served the city’s “carriage trade.” Earlier, according to the Examiner, Ervin worked with his father for fifteen years. Despite the somewhat sloppy reporting, excusable a day after the tragedy, it appears that Ervin began working when he was about sixteen years old.

Jewelry, though, was the family business. The boys’ father, Bennot Lewy, founded his company, “Lewy, the Jeweler,” in 1860. The Examiner said, “The elder Lewy was one of the pioneer business men of Chicago, establishing himself here in 1860.”

Ervin LewyErvin crossed the Atlantic in 1912 for a diamond buying trip to Amsterdam. (If Ervin started working in 1897, by 1912 he would have been a seasoned jeweler and trusted to purchase diamonds on behalf of the company. These decisions would have had a critical impact on the company’s ability to survive and prosper.)

At that time, Amsterdam was the world’s center for diamond polishing and trade and it’s worth a small detour to point out the reasons. Historically, Amsterdam had welcomed the Jews who were expelled from Southern European countries and allowed them to prosper– within some limits. Not every craft guild was open to the Jews, but diamond polishing was.Their skill at diamond polishing meant that when diamonds were discovered in South Africa in 1867, Amsterdam experienced a massive influx of the gemstone, a major reason for Amsterdam’s preeminence as a diamond center.

However, apparently Ervin’s business did not go well–at least at first–and he decided to remain in Europe a few more days.  “I’ll be here about a week yet to see if I can’t do better. Can’t catch the Rotterdam as I expected but will probably sail on the Titanic from Cherborough the 10th,” Ervin wrote in a letter he sent home.

We know that during that week he spent at least some time in Paris because he bought a carved sapphire ring for his grandmother from Cartier. The stone arrived in the mail a few days after his death and, according to his descendants, Ervin’s grandfather set the stone in a ring surrounded by baguette diamonds.

This is confirmed by a statement one of the his brothers gave to the New York Times on April 17, 1912.  “My brother sailed about five weeks ago for the annual purchase of diamonds and other jewelry. He visited Paris, Naples, and Amsterdam while in Europe. We have had no word from the White Star, nor any messages from my brother. He was 31 years old. In Chicago he lived with our married sister, Mrs. M. M. Uppenheimer.”

According to the JCK, which has done some reporting on this story, Ervin’s family also believes that he may have purchased diamonds during that week and that those gemstones went down with the Titanic. They believe that they might still be recovered from the captain’s safe or the bursar’s pouch.

Ervin was among the 1,514 people who died when the Titanic sank on Monday, April 15, 1912. On Tuesday, April 16th the family had not yet received word whether Ervin was among the dead, according to a Chicago Examiner story that day. The last word the family had had from Ervin was a cablegram on April 11 letting them know he had sailed on the Titanic the day before. According to the Encyclopedia Titanica, “His two brothers, J. B. Lewy and M. D. Lewy, frequented the White Star office in Chicago attempting to learn of his fate.”

Erwin Lewy sapphire ringErvin was not married. His estate was valued at $50,000, according to a May 11, 1912 story by the Chicago Tribune. Of that, $20,000 was an insurance settlement in connection with the Titanic and that settlement, again according to that Tribune story, had the distinction of being the first Titanic-related insurance claim to be settled. Half of the estate went to the business and the other half was distributed among various family members.

The Lewy Brothers Jewelry Company lasted a little more than a decade after Ervin’s death. According to a Tuesday, November 24, 1925 New York Times story, a petition for involuntary bankruptcy was filed against the company, the timing apparently influenced by the fact that the company’s creditors wished it to operate during the Christmas rush under the supervision of a receiver.

We don’t much much about Ervin’s life apart from these few glimpses. Although young, he was a trusted and valued member of his family’s company. And, he was apparently an affectionate man, whose probable last gift was to a beloved grandmother.

He was a first-class passenger on the Titanic and his ticket number was 17612.

I discontinued comments on the site because of the heavy amount of spam. To contact me, use the contact form and I’ll answer right away. However, if you like this or any articles on the site, I’d appreciate a “like” at the top of the page.

 

 

 

Posted in Jewelry History | Tagged ,

Bead Stringing Needles, Bead Strand Lengths and Theft

Here is a copy of a note I sent out to my students. I thought it might be of general interest.

I wanted to update you on a couple of developments occurring in the trade affecting pearl and bead stringers that may be useful to know.

Number Six Pearl and Bead Stringing NeedleChanges in Bead Stringing Needle Designations

A note from a student highlighted a change occurring in the jewelry supply industry with regard to needles. The student said she was unable to purchase #7 needles, a size I recommended in the DVDs. Instead, she said her jewelry supplier was selling light, medium and heavy needles.

As you know, pearl and bead stringers use flexible, twisted wire needles to string jewelry. These needles have large eyes that collapse when the needle is drawn through the beads. And because the needle itself is flexible, it can be used efficiently when attaching beads to complex clasps. A further advantage is that should the needle be bent during manufacture, especially at a right angle, the bent or unusable portion can be clipped off, enabling the stringer to continue without adding a second needle. (The only way a needle can be added is by adding thread, a technique I teach in the Advanced Pearl and Bead Stringing DVD.)

In the DVDs, I suggested that students use #7 needles. I’ve used them for years. They’re all purpose. They can be used with the smallest and largest beads.  However, for years, I’ve just picked up needles by eyeballing them without noticing the number or size.

In the past, needles were given numbers with the lightest at the lower end of the scale. So, I was interested when this alert student notified me that she was having trouble identifying the appropriate number.

I checked with a couple of major suppliers and it does appear that a change is underway or at least partially underway. Fire Mountain Gems is selling needles it designates as “light-medium,” “medium-heavy” and “light.” When I spoke with a customer service representative, she said that they’re not selling needles with numbers any more. BUT, this isn’t quite true. I noticed that they’re also selling a light twisted #6 needle. Here is the link. https://www.firemountaingems.com/details.asp?PN=H201043BS

I also talked with Jemco, www.jemcousa.com, a very fine jewelry supply company. They, too, said they’re selling needles but only in three categories, light, medium and heavy.

My advice is not to overly complicate this which I hope I’m not doing now. The major thing to look for in buying a needle is that the eye is big enough to accommodate the thread you’re using. Since most of us don’t use heavy, heavy thread, a medium or light needle should be a good all purpose solution.  In addition, remember that all too frequently drill holes are irregular. A thinner needle has a greater chance of slipping through irregularly drilled beads than a thicker one.

Fire Mountain Gems, a very good company, suggests buying needles based on the size of the beads. However, frankly, this is irrelevant to me. The bead size isn’t important (unless of course the beads are so large you need a longer needle). What’s important is that the eye accommodates the thread and that when it collapses the needle and the thread can be pulled through the drill hole.

Dealers Shorting Bead Strand Lengths

When we buy strands of beads, we are buying from what’s called a “hank.” Hanks are ten strands of beads tied together. (Often you’ll get a discount if you buy the entire hank.) Traditionally, a strand of beads is 16” long, enough to create a 17″ choker length necklace. (Generally, 16” of beads plus an inch for knots and clasp.)

Recently, I’ve noticed that a number of dealers are shorting the strands, that is, they’re selling strands that are short by a couple of inches.

Dealers have always done this for very expensive gemstones such as diamond beads where the manufacturer may not need an entire 16”. However, now I’m seeing more and more dealers do this for less expensive gemstones, onyx, hematite, etc.

This is regrettable. There is nothing more frustrating than to assume you’ve bought a 16” strand only to discover it’s really a 14” or 15” strand. So use care when you’re buying. One tip might be to bring along a strand you know is 16” and measure the strand you’re contemplating against it. Or just eyeball it. You can usually tell if it’s short.

Increases in Theft

I wanted to take the opportunity here to caution you about the increase in thefts we’re seeing across all industry segments. I’m hearing from dealers of loose beads and manufactured jewelry that this is a serious and escalating problem.

Here is some advice: Do not mail anything that has “jewelry” on the label. It’s an invitation. Be especially careful if you’re showing your jewelry at a home or craft show. Better yet, invest in some kind of jewelry display case. (The best opportunity for thieves is when you’re distracted with another customer.) If you can’t afford a jewelry display case, bring a friend along or share a booth. In any event, do not leave your table or booth unattended. If someone wants to buy a piece of jewelry from you, do not let it go out without first processing the check or checking to ensure the money has been deposited.

I hope that the increase we’re seeing is temporary and a result of tough economic times. But whatever the reason, take commonsense precautions.

For questions and comments, please email fleury@fsommers.com

Best regards,

Fleury

 

 

 

 

 

 

Posted in Business, Manufacturing Tips | Tagged , , , , , , , , , ,

Conference to Focuses on Tourmaline

Watermelon TourmalineThe CIBJO, the World Jewellery Confederation, has announced that its third annual gemological mini-conference in May will focus on tourmaline.

Tourmaline is a mineral group that includes gemstones of many colors sourced on all five continents. It is available to the trade, including pearl and bead stringers, in a variety of forms including round beads, briolettes, nuggets, etc.

If you string pearls and beads, chances are you’ll either include tourmaline in your designs or be asked to work on jewelry which includes tourmaline.

The CIBJO will bring together some of the top gemologists in the world to discuss the various gemological properties of tourmaline in an effort to educate retailers and gemologists. In the meantime, here are a few facts that might be of interest. Please feel free to print this out for reference.

  • It’s important to understand that “tourmaline” refers to a mineral group, not to a single gemstone. There are 14 different minerals within the tourmaline family but in gemology we don’t use individual species names, instead we simply call all of them “tourmaline.”
  • Nevertheless, there are important varieties within the tourmaline family that you should be familiar with. These include “rubellite” or red tourmaline, “Indicolite” or blue tourmaline, and “watermelon” tourmaline, the pink and green that is probably tourmaline’s most familiar variety. I’ve included a list of important tourmaline varieties below.
  • Tourmaline is the most colorful of all gemstones. It occurs in all colors, including white, blue, red, green, yellow, orange, brown, pink, purple, gray, black and is also multi-colored.
  • Tourmaline has a hardness of 7.0 – 7.5 on the Mohs Scale making it suitable for a variety of jewelry.
  • Almost all red and pink tourmalines will show eye-visible inclusions. Inclusions are also common in green tourmaline. The most common inclusions in tourmaline are fractures and needle inclusions.  Fractures reduce the strength of the gemstone.
  • Tourmaline is sourced all over the world. In the United States, tourmaline is mined in California and Maine. This fact has been of great interest to my clients in the past.

Tourmaline is one of the most interesting and beautiful of gemstones. Its price can range from very expensive to very inexpensive. Use care when buying tourmaline beads, especially beads that are small, say, 6 mm and under. Examine them closely for eye visible inclusions. They’ll often be there, especially in inexpensive strands, and will be a signal that you may lose some of them during the manufacturing process.

Tourmaines

 

 

 

Posted in Gemstones, Reference | Tagged ,

A Kinder, Gentler De Beers?

De Beers LogoOn April 3, the Supreme Court declined to hear an appeal of the De Beers antitrust settlement and although there is a possibility that a second appeal might be filed, the case actually appears to be closed or close to closed.

I don’t want to re-litigate a tangled six decades of claims and counter-claims. But I do want to point out that at least to this observer, the effort by De Beers to finally settle U.S. anti-trust claims is a business decision, not an ethical one. De Beers wants to enter the U.S. market as a major diamond player and it is busy cleaning up its image with the Justice Department, the jewelry trade and consumers. Settling the class action suit is part of this strategy.

This might be obvious. But it’s worth pointing out.

The U.S. government first brought anti-trust charges against De Beers in 1945 just after World War II. (Hostility toward the company by the Justice Department was no doubt exacerbated by its refusal to provide industrial diamonds to the U.S. in the war effort.)

With the anti-trust charges looming, De Beers simply closed U.S. operations and marketed its diamonds indirectly in the U.S. through its Central Selling Organization.

It took a similar position in 1994 when the U.S. indicted De Beers and General Electric of criminal collusion to control the price of industrial diamonds.

For the company, this worked fine for many decades. De Beers executives couldn’t step foot on U.S. soil for fear of arrest, but why should they? From South Africa, London and Switzerland, the company controlled up to 90% of the world diamond supply by controlling or owning diamond mines and channeling goods through a single source. The U.S. market, like other markets, received goods  through mysterious and often criticized sightholder sales where diamond manufacturers were forced to diamond parcels provided by De Beers or go without.

In the 1990s, three events occurred which spelled the end of De Beers’ iron grip on diamond producers. The Soviet Union had been the second largest producer of diamonds in the world. When it collapsed, it became increasingly difficult to maintain single channel distribution and most Russian diamonds began selling outside the cartel.

The second major event eroding the De Beers cartel was the refusal by the Argyle Mine in Australia to renew its contract. Although the Argyle Mine is best known for its pink diamonds, it is also the largest producer of low quality diamonds in the world. Despite De Beers retaliation, cutting prices on low quality diamonds, for example, Argyle held firm.

Finally, rich new diamond deposits were discovered in the Northwest Territories of Canada. Although De Beers secured a portion of that production, most Canadian diamonds remained outside its control.

By 2000, De Beers market control had slipped to 65 percent and the handwriting was on the wall.

So, it turned hungry eyes on the U.S. diamond retail market from which it had dealt itself out so many years ago.

In 2004, it pleaded guilty to the GE collusion charge and paid the U.S. a $10 million fine. Still outstanding, however, was the class action suit which De Beers agreed to settle for $295 million. This is the suit the Supreme Court declined to review on April 3. As one industry observer pointed out, when the checks go out, there will be enough for claimants to go to lunch.

This is all a part of its new business strategy which is to focus on retail sales. Following anti-trust agreements with the EU, it opened outlets in France and Great Britain and is actively developing retail arrangements in China. It is also active in a number of other countries.

De Beers already has a presence in the U.S. retail diamond market through its Forevermark Diamonds and various franchise-type arrangements with large diamond retailers. When this class action suit is closed, we can expect a greater presence.

Is De Beers a more ethical company, a kinder, gentler company, than in the days when it reneged on an agreement with the  U.S. during World War II or later, when it colluded with General Electric to fix prices for industrial diamonds?

We’ll see.

 

 

 

 

 

 

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