Diamond Cutters Approaching Era of Disruption

Source: Rapaport
Author: Ronen Schnidman

RAPAPORT… Diamond manufacturers are entering an era of fierce competition as the looming decline in rough diamond supply is expected to place additional pressure on their already razor-thin profit margins.

“A manufacturer always operates with a benchmark margin, which is the minimum he needs to make a reasonable return on equity,” explains Vishal Doshi, the executive director of the manufacturer Shrenuj & Co. “In spite of all the efficiencies, we have reached the border between the business being either sustainable or unsustainable.”

Some manufacturers are already adapting their business models to cope with this problem, in ways that industry observers believe will alter how the entire diamond pipeline operates in the coming years.

Differentiate or Disappear

However, Dinesh Navadiya, the president of the Surat Diamond Association (SDA), notes that manufacturers have limited options to cut costs and improve margins. While they tend to expand their labor force when rough supplies grow, cutters avoid retrenchments when the profits run dry, he explains.

“Employers never lay off workers,” Navadiya says. “There is a scarcity of artisans in the industry so the question of layoffs does not arise.”

Even during the 2008 financial crisis, factory owners in Surat tried to avoid layoffs, preferring to retain their workers by instituting temporary salary cuts.

Navadiya further dismisses the likelihood that factory owners will increase profits by absorbing smaller or weaker companies to reduce competition. He states that no notable consolidations have occurred in Surat in recent years and that he does not expect significant consolidation to occur in the future.

Consequently, the only way that manufacturers will be able to contend with tightening profit margins is through product differentiation and factory closures, concludes Mike Aggett, the managing director of H. Goldie & Company, a De Beers accredited broker.

Aggett notes that the diamond manufacturing sector is undergoing some consolidation, but this is occurring at a slow pace and largely through companies exiting the industry. He attributes this to the fact that the industry is predominantly made up of family-run businesses that find consolidation more difficult than would purely corporate entities.

“Certainly in India a number of smaller operations have disappeared,” he says. “It will be a slow, ongoing process but the less sustainable businesses will disappear.”

Aggett stresses that manufacturers who wish to remain in the industry will have to focus their efforts on design and branding as a means to improve their profit margins. Consumers are becoming increasingly price conscious, and the only way to make price secondary in their buying decisions is by presenting them with a differentiated product, he explains.

Emanuel Namdar, the general manager of S.N. Asia, a diamond manufacturer, agrees with Aggett and adds that branding is essential because the jewelry marketplace is already crowded and intensely competitive even in emerging markets.

“When you head out to the Far East and pass the jewelry displays on the street, you can see that every consumer interested in buying a diamond ring has hundreds to choose from within a 10-minute walk,” Namdar says. “You must add value through branding. Otherwise, the competition at the consumer level is too fierce.”

Doshi notes that many diamond manufacturers are integrating downstream to achieve that added value and differentiate their product and services.

“The more you can sell diamonds in jewelry, the more your gross margins will go up,” he explained in an interview with Rapaport News earlier this year. “But not everyone can execute it because it’s a different business with a different mindset and a different business model.”

Declining Rough Supply

Most manufacturers who spoke with Rapaport News agreed that manufacturing rough into polished alone is not sufficient to cope with high rough prices and the further forecasted increases.

According to industry consultants at Bain & Company, diamond prices are expected to rise in the long term as supply is forecast to decline from 2018 onward, while demand continues to grow.

De Beers expects that global rough diamond supply will peak at slightly over 160 million carats in 2018 but will plummet to 120 million carats around 2025. This constitutes a 25 percent drop from peak production in less than a decade. De Beers estimates that approximately 146 million carats were recovered in 2013.

De Beers attributes this drop in production to a lack of new mining projects expected to come on stream after 2025 that have potential production volume large enough to impact the overall market. Even if new, large mines are discovered, De Beers noted in its recently published Diamond Insight Report that these would not be developed fast enough to prevent the contraction in supply. The company estimates that the latest generation of large diamond mines have taken on average 22 years to reach production from their initial discovery.

Rough Financing Impacting Pipeline

Bain expects that the demand-supply gap will further squeeze manufacturers’ profit margins at a time when it is becoming increasingly difficult to obtain financing for the working capital needed to reap efficiency gains.

Des Kilalea, a diamond mining analyst for RBC Capital Markets, suggests that it is this lack of financing for rough purchases that will be the final nail in the coffin for smaller, family-owned manufacturing operations.

Kilalea cautions that the entire diamond pipeline has entered an unhealthy situation whereby manufacturers are financing the profitability of the miners and retailers with their bank credit. He predicts that the diamond pipeline will address the problem by evolving toward simpler supply lines with fewer, larger players.

“The longer-term issue is that the miners are not really going to be able to dictate any price to the market because the banks aren’t going to continue financing it,” he says. “Manufacturers will [then] become more reticent to pay high rough prices [in cash] and they will stop extending such crazy credit terms to their own buyers. Why should the guy in the middle be the bankers for the guys on the ends?”

Kilalea expects that the larger manufacturers will address the finance issue by increasingly raising funding from the stock and bond markets to finance their working capital.

Moreover, Kilalea forecasts that as banks reduce their credit lines for rough purchases, the mining and retail segments will be forced to ensure that their profits are not affected if manufacturers go bankrupt.

“The big retailers with financial muscle want to secure the rough and ensure that there are no financial interruptions,” Kilalea says. He explains that retailers are worried that their diamond suppliers may go bankrupt and leave them in the lurch without merchandise. Moreover, the retailers have an easier time of financing their working capital, often paying lower interest rates than their own suppliers.

As a result, Kilalea expects that more large-scale retailers will pursue arrangements similar to those of Tiffany & Co. The New York-based retailer has its own polishing division that procures rough through sight contracts with De Beers and ALROSA and also holds off-take agreements with junior miners Kimberley Diamonds and DiamondCorp to fulfill some of its specific rough requirements.

Bain said in its 2013 industry report that the trend of retailers integrating upstream along the diamond value chain is likely to continue, creating additional pressure on manufacturers as retailers compete for rough with their own polished suppliers.

Survival Not Guaranteed

The consulting company therefore expects further consolidation and integration in the middle of the diamond pipeline as manufacturers seek to maximize their profit margins through efficiencies of scale and scope.

Some manufacturers already predict that there will be consolidation in the cutting and polishing industry even if polished prices rise in the coming decade.

Namdar expects that polished prices will rise significantly in the next decade but diamantaires will need to continually find ways to add value along the pipeline in order to survive and benefit from these higher prices.

“There will be an industry and people will work hard because the ones that won’t work hard won’t be around in 10 years’ time,” he says. “I can’t even guarantee that I will be there, but I know that many good companies that are here today have a roadmap to get there.”

Opal’s essence continues to delight

Source: National Jeweler

Author: Brecken Branstrator

December 19, 2014

New York — With an appearance that long inspired cultures to believe in its supernatural abilities and powers, the opal’s value comes not only from the range of colors it displays but also the increasing rarity of high-quality stones.

Opals are the product of seasonal rains that drench the dry ground in an arid place, such as Australia’s outback. The water soaks in and penetrates deep, carrying silica with it. Then, the water evaporates during a dry spell, leaving silica deposits behind to form opals.

Even though all opals are formed through this same process, the resulting stones are unique.

No two opals look the same, and the play of color for each precious opal is different, giving them wide-ranging appeal. (There are two main types of opal–while common opal has a milky, dull color, precious opal displays the range of color that is so valued.)

“In Lighting Ridge black opal, people tend to like the combination of blues and greens, which have been the most popular with us,” said Niveet Nagpal, designer and president of Omi Privé. “But with true collectors looking for special pieces, if the opal displays more red flashes, these are the most sought after and valuable.”

Opal’s recently returning popularity with consumers also can be attributed to a greater number of designers using the stones in more of their pieces, bringing high-quality opals in front of consumers again and driving demand.

“Opal is re-entering the popular market and, where they were once using a little bit lower-quality (stones) at one point, they have delved into the finer goods over the last few years,” said Matt Hopkins of Hopkins Opal.

The rush slows
Today’s supplies of opal come mostly from Australia, Mexico, and the United States, though Hopkins said that supply is constrained in Australia at the moment as companies realize that there’s more money to be made in mining other natural resources in that country, such as industrial metals.

“There’s been a lack of producing areas for more than a decade,” he said, but noted that the increased demand for opals means that miners likely will return to prospecting for the gem once they realize that there is consistent consumer demand.

Hopkins said he sees a “glimmer of hope” in a few places in Australia. (He declined giving specifics as these locations–provided they start producing–will become a source for his company.) “The one decent supply we’re seeing is boulder opals in medium to high quality, which are still being cut and coming out.”

He adds that the only type of opal that perhaps isn’t seeing a major climb in demand is the commercial opal that is sourced for mass market, lower-end jewelry that has less play of color. “People don’t really have that much interest in that anymore.”

Overall, Hopkins said he sees opal demand outstripping supply in both the U.S. and Asia, noting that there is a renewed interested in colored gems in general as consumers see high-quality large gemstones as investment pieces.

This makes sourcing high-quality opals difficult. Many dealers that Hopkins knows still are working off old stock, though replenishing that at the same price they did even a few years ago is much harder.

Jonathan Farnsworth of Parlé Designs reiterated what Hopkins is seeing in the market, noting that the hardest to source currently are high-quality black and crystal opals, as well as opal doublets, which Farnsworth attributed to labor costs that had gotten too high to validate production.

He said there is plenty of Ethiopian opal in the market, which is helping to create demand for opals as a whole as more consumers are seeing them. He also said that he feels that production will begin picking up as trends drive demand.

“It’s a little cyclical, because as demand increases, more production should increase as well, especially as oil prices drop and it becomes easier for miners to mine. Then the supply will be there to further feed and grow demand,” he said.

A price hike
Like many of the rarest gems, the price of the highest quality opals have been rising slightly over the past few years, though Hopkins notes that fine black opal always has been, and continues to be, fairly expensive.

Intense red-orange fire opal from Mexico also is extremely rare and highly valued, with its strong play of color, with price and supply following the similar patterns as the other types of high quality stones.

Though the best fire opal generally sells for less than high-quality precious opal, fire opal pieces with exceptional color will go for more than specimens of precious opal with a less-than-stellar play of color.

Even though prices are climbing steadily at the high end, it’s the mid-range-quality opals–falling between $150 and $700 per carat at wholesale–where the upswing is the greatest, Hopkins said, a trend that he expects to continue for the next couple of years.

Hopkins said that he is seeing opal prices increase along all points in the supply chain, including “field prices,” which refers to the price of the opal when sold from the miners directly to the field buyers, which have gone up some 20 percent over the last year.

Designer’s delight
Much of opal’s value, and its appeal, is the stone’s ability to show so many different colors from every angle as it diffracts light. That’s why opals normally are cut into cabochons rather than being faceted; it enhances the color play.

From a design perspective, the gem’s color show gives jewelry-makers the ability to pair opals with a variety of other gemstones, bringing out different colors depending on the gem with which the opal is set.

“Pairing opals with multiple colored gemstones and even different metals can contrast with or emphasize specific colors found within the opal,” Nagpal said.

This is also one of the reasons that designer Penny Preville told National Jeweler that she loves to work with opals.

Not only do the stones come in her favorite color, blue, but the different speckles of color that come out means that it works well with many other stones that she may want to use, as well as any metal.

She said she has noticed that her customers currently want the dark blue opals the most.

“I see opals as becoming more of a staple and, in a way, becoming their own category of sorts. It’ll be interesting to see where it goes because there’s so much more that designers can do with it. I definitely think that opal has a long life ahead of it,” Preville said.

Laurence Graff awarded an OBE for his services to jewellery

Source: The Jewellery Editor
Author: Maria Doulton

Laurence Graff, Chairman of Graff Diamonds, has been named in the Queen’s Birthday Honours List to receive an OBE for his services to jewellery as he celebrates his 60th anniversary in the jewellery industry.

Graff, who began his career at age 15 as a jeweller’s apprentice in Hatton Garden, says: “From humble beginnings and a lifetime working in the industry, I am extremely proud to receive such an honour.”

“I came from a background where diamonds meant something because so many Jewish people came out of East Europe and suffered and lived off their diamonds,” says the man behind the sparkle of some of the most fabulous diamonds of our times. From a family of Russian immigrants, he arrived in London’s East End with little more than a keen eye for business and a love of valuable things.
His first insight into business came from his childhood Sunday visits to the jewellers in Black Lion’s Yard in Whitechapel, East London. “They were small people doing small business, thinking they were big business, out there in the market, counting out the cash. That was all I knew,” recalls Graff in an earlier interview.

Following a jewellery apprenticeship, in 1962 Graff opened “La Petite Bijouterie” Ltd in London’s Lancaster Gate. Today, Graff Diamonds purchases around 60% of the world supply of yellow diamonds, which are highly visible in his Bond Street shop window. He is also known for his interest in larger diamonds, which would explain why the typical price for a Graff jewel is in the six-figure range.

Everyone knows Graff as he is one of a handful of buyers of big stones in the world. It is often said that he has handled more diamonds of notable rarity and beauty than any other jeweller, including the Wittelsbach- Graff, the Idol’s Eye, the Imperial Blue, the Blue Ice, the Magnificence, the Graff Pink, the Delaire Sunrise, the Graff Constellation, the Flame and the Graff Sweethearts.

A fully integrated operation, Graff Diamonds is involved in all the processes, from rough stone to final ring, employs 700 people around the world and owns 20 boutiques. Safdico, based in Johannesburg, is the house’s cutting and polishing company, and the first stop for rough diamonds, where 300 craftsmen sort, cut and polish 10,000 carats a year. The stones will then either be used by Graff Diamonds or sent to Antwerp, New York or Mauritius. Depending on the size and colour, they will be cut, polished and made into jewellery or simply sold on.

With 95% of all its works exported, Graff Diamonds has won the Queen’s Award for Enterprise four times, most recently in 2006. All Graff jewels are made by 70 jewellers in the workrooms below Graff’s office on Albermarle Street in Mayfair, London.

BREAKING NEWS Tanzanite: Locals take control of giant Mining Firm

The ownership of TanzaniteOne has now been taken over by tanzanians.
Mr. Hussein Gonga, an Arusha business man, together with Mr Faisal Shahbhat have acquired 50 per cent stakes previously owned by Richland Resources Limited.

Rarest Gemstones: Jeremejevite

Jeremejevite, one of the rarest gemological materials, was named after Russian mineralogist P. W. Jeremejev in 1883, but there are rarely any specimens found in Russia today. Recently Namibia has started to produce some mentionable crystals, but in such small amounts the stone is still very rare. Jeremejevite is typically found in pale blue-green, cornflower-blue to yellowish bown hues.

JEREMEJEVITE CLASSIFICATION
Common Name: Jeremejevite
Species: Jeremejevite
Colors: blue-green, cornflower blue, brown, pale yellow and colorless

Key Separations: RI, birefringence and possible optic character.

JEREMEJEVITE PROPERTIES
Chemical Name: aluminum borate fluoride hydroxide
Chemical Formula: Al6B5O15(F,OH)3
Crystal System: Hexagonal
Classification: Borate
Crystallinity: Crystalline
Transparency: Transparent
Refractive Index: 1.64-1.651 Tolerance: (+0.002/-0.001)
Birefringence: 0.009
Optic Character: uniaxial and biaxial
Optic Sign: negative
Polariscope Reaction: doubly refractive (DR)
Fluorescence: SWUV: Inert, LWUV: Inert
Hardness: 6.5-7.5
Streak: white
Specific Gravity: 3.27-3.31
Toughness: Poor
Luster: Vitreous
Fracture: Conchoidal
Cleavage: None

Jeremejevite was first described in 1883 by French mineralogist Augustin Alexis Damour, who named it in honour of the Russian mineralogist and engineer Pavel Wladimirowich Jeremejev. Only a few localities of this rare borate mineral are known worldwide. Jeremejevite was discovered in 1883 at Mt Soktuj, Eastern Siberia, Russia. Only a few isolated crystals up to 5 cm in length have been reported from the type locality. The crystals resembled a yellowish beryl in appearance. For more than 100 years, this mineral was one of the rarest of all known minerals.

In 1973 a second occurrence of jeremejevite was found at a small pegmatite mine known as “Mile 72” north of Swakopmund, Namibia. The mine was exploited by the well-known mineral dealer Sid Pieters. Only a few crystals were found, which showed a fine blue colour. In 1976 a pocket was hit that produced about 100 of the finest known crystals of blue jeremejevite measuring up to 5 cm in length and 0,5 cm in diameter. Very few crystals on matrix were found.

Since this find, jeremejevite became a highly sought-after mineral by collectors worldwide. The only other known localities are the Ameib Farm Erongo Mountains, Namibia; Eifel Mountains, Germany; Sagaing District, Burma (Myanmar); and the Pamir Mountains, Tajikistan. The latter find is not well documented. About 10 yellow to brown crystals of little transparency up to 5 cm in length are reported from this locality.

The Mile 72 Namibian occurrence is in a wind-blown flat surface of hard, ocean-weathered granite protruding from a sandy stretch of beach about 750 m back from the shoreline, where the breakers lap the Namib Desert. It is close to milepost 72; that is, 72 miles by road north of Swakopmund.

The initial discovery was made by a woman known as “Tannie Klippie”, who was the wife of John Marais. Mr Marais was employed by the state as a road-grader operator, and his wife frequently spent her days walking behind her husband’s grader collecting pretty rocks. In 1973 the road leading to the Mile 72 fishing camp road was angled at approximately 45 degrees southward to the coast road from its current location. Mr Marais’ grader turned over a few jeremejevite crystals that had weathered out into the sand, and Tannie Klippie was there to pick them up. These specimens eventually made their way to the sharp eye of Windhoek gem and mineral dealer Sid Pieters. At first glance Pieters thought them to be aquamarine but an analysis identified them as jeremejevite. This was confirmed by an analysis of a cut gem performed by Richard T. Liddicoat of the Gemological Institute of America (1973) .

Mr Pieters quickly filed three 300 x 600 m claims where Tannie Klippie stumbled over the crystals. Peter Kitler did the actual mining and the tourmaline miner, Jan Coetzee, from Usakos did the blasting. They decided to open cut the granite, beginning on the eastern end and drive a trench westward perpendicular to the vertical vein containing the jeremejevite pockets. The first pocket found was in the altered granite. It yielded a number of gemmy but colourless crystals to 7,6 cm. The trench was continued through 5-6 m of hard granite, maintaining a depth of 1,5 m. This work netted just a meagre handful of loose, colourless crystals from small pockets along the vein.

In mid-1998, Brian Lees of Collector’s Edge Minerals teamed up with C. J. Johnston, an American mining geologist and mineral dealer based in Omaruru, to form Khan River Mining (Pty) Ltd. Their intention was to excavate further along the pegmatite veins in the hope of finding more jeremejevite. The mining commenced in early January 1999 and upon cleaning out the “Kitler pit” the first truly mechanized mining effort at Mile 72 commenced. In spite of a difficult mining environment 2 700 tons of rock were removed within the first six months. With the advantage of having heavy equipment more rock was mined in the first two weeks than the entire Sid Pieters effort from 1973 to 1976. Within the first three weeks, directly below the area where the best material had been found in 1973, a coarse-grained granitic pegmatite was encountered which produced approximately 300 single, colourless to pale yellow water-clear jeremejevite crystals up to 5 cm and only one pale blue crystal. Over the next 12 months an additional 14 target areas were identified and an estimated 2 300 tons of rock mined. In addition to these targets 15 trenches were excavated. While the effort produced some interesting specimens of feldspar, apatite, quartz and schorl, no further jeremejevites were found. Namibia is one of the very few countries in the world that constitutionally guarantees the protection of the environment. Consequently it is highly unlikely that any further mining will take place at Mile 72.

In March 2001, pegmatites containing jeremejevite were discovered near the summit of an isolated inselberg on Farm Ameib near the border with the farm Davib-ost, halfway between the village of Tubussis and the town of Usakos on the south side of the Erongo Mountains. As with the Mile 72 crystals, the first intense blue crystals found were thought to be aquamarines, and caused little excitement. A few thousand crystals have since been recovered. These workings are restricted to a 100 m2 area on a steeply sloping surface near the top of the inselberg. The mining in the Erongo Mountains is a simple brute force manual labour affair. The diggers must first walk 14 kilometres from the Government gravel road to reach the base of the mountain. It is then a very hard climb of nearly 500m to reach the top. There is no water, so miners must carry their own supply together with their modest equipment. The majority of the diggers, who have numbered up to 150, have nothing more than a hammer, chisel and shovel with which to attack the granite. Some of the excavations now exceed 6 m in depth. The majority of the Erongo Mountain jeremejevite crystals are under 2,5 cm in size, but a respectable number of larger crystals, over 200, range up to 5 cm in length and 1 cm wide. There have been unverified reports of crystals in excess of 8 cm.

You might also read this article by Kenneth Scarratt, Donna Beaton and Garry Du Toit on Gems&Gemology

Diamonds are forever but here and now coloured gemstones are cutting edge

Source: The Guardian

US demand underpins record prices achieved for rubies and sapphires by Gemfields and other luxury goods specialists

Author: Angela Monaghan
The Guardian, Friday 12 December 2014

For those prepared to throw money – quite a lot of it – at the ideal Christmas present this year, the gift of choice is no longer white diamonds, but coloured gemstones.

The market for coloured stones is on fire, with record prices being achieved for rubies and sapphires. At its latest ruby auction in Singapore, Gemfields achieved an average price per carat of $689 (£438), with total sales of $43.3m from its Montepuez mine in Mozambique. Both figures were records for the London-listed miner and luxury goods specialist.

Last month, Sotheby’s set a new world record for a ruby when it sold an 8.62 carat Burmese stone for 8.2m Swiss francs (£5.4m). The auction house also set a new world record for sapphires at a recent auction in Hong Kong.

Diamonds may be forever but there is nothing new about the appeal of coloured gemstones, which were worn by Wallis Simpson and are favoured by the Duchess of Cambridge, who wears the 12-carat Ceylon sapphire engagement ring once owned by Diana, Princess of Wales. Rare and beautiful as they may be, Cailey Barker, mining analyst at Numis, identifies a number of factors pushing up gemstone prices lately, including rising demand in the world’s largest economy.

“Gemstones have been performing well mainly because of jewellery buying on the street, predominantly led by the US,” she said. Gemfields’ marketing has been very successful, according to Barker, partly helped by the fact that it also owns the luxury jeweller Fabergé. “It’s a chicken and egg situation. There is demand, but Gemfields is also creating the demand.”

The company has introduced a grading system, allowing jewellers to match colours and reassure consumers about the quality of the stones. Another key to success has been providing a consistent supply of something that is inherently rare and difficult to source.

Gemfields specialises in emeralds, owning the world’s largest emerald mine in Zambia, but it also produces amethysts from Zambia and rubies from Mozambique.

New sources are being found for coloured stones. Burma was traditionally considered the main source of high-quality rubies; Mozambique is a relatively new supplier.

The company, whose chief executive is Ian Harebottle, can take the stones all the way from the ground to the jeweller – known in the male-dominated trade as the “mine to mistress” approach. “What De Beers does for diamonds, we do for colour,” he said.

Where stones are auctioned, the sale is a very select affair, according to Harebottle. A typical emerald auction would attract 100 potential buyers hoping to get in, but admissions are limited to about a third of that. A ruby auction might attract about 200 would-be buyers but only about 50 will be selected to attend.

Harebottle said it was important to sell to the right buyer. “These gems are extremely rare, much rarer than a diamond. I’d hate to sell to someone who is going to cut it badly. This is not just a fly-by-night world.

“It’s not a dictatorship. It’s not as if we’re the only supplier, but we try and choose people we think will help grow the industry.”

Demand is rising as the world’s middle classes swell and information is more readily available, according to Joanna Hardy, an independent jewellery specialist.

“People now understand that there are other stones that are also getting good prices. There are more people with money and there aren’t enough [stones] to go around. Knowledge is becoming more accessible. There is more information around and more appreciation.”

Recent trends can be seen at the world’s most exclusive jewellers. Earlier this year, the luxury jeweller Cartier showcased its royal collection at the Biennale des Antiquaires in Paris, featuring a necklace with a 15.29 carat oval-shaped ruby from Mozambique. The collection also included pearls, emeralds and sapphires.

Hardy, however, says it is not all about trends and fashion. “It’s about what the earth produces and the rarity of the stones. People are really fascinated about how a stone arrived.”

At Gemfields, emeralds account for around 75% of revenues, but it is building its ruby business. The company – which boasts Hollywood actress Mila Kunis as ambassador – has about a year’s supply of both emeralds and rubies.

Can the run of rising prices last? “We’re working hard on exploration,” Harebottle said.

Hardy cautioned that the availability of coloured gemstones on the high street might give the misleading impression that precious stones were in large supply. “We’re being spoilt by thinking it’s all readily available but it’s not. On the high street a lot is heat-treated to enhance the colour. The rare stones are the ones that are untouched apart from being enhanced through the art of cutting.”

Ultimately, she concedes, beauty is in the eye of the beholder. “At the end of the day it’s about people’s personal perception of beauty in a colour.”

Christie’s Incredibly Magnificent Jewels Of 2014

We publish courtesy of Leibish & Co.
Images are reproduced courtesy of Leibish & Co.

Christie’s has been able to give us quite a year for fancy color diamond news. In May 2014, it sold the largest Flawless Blue diamond, the 13.22 carat diamond now renamed the Winston Blue. They also broke the jewelry world auction record when they made over $150 million in sales, they broke the world record price for a red diamond in HK in November, and now last but not least they are giving us the last Magnificent Jewels show in NY. Will they break any more records? Nothing in the auction lists stands out as phenomenal, but as we all know, anything is possible!

We have quite a few items to focus on, including two stones that are from past Argyle tender events – one recent (from 2013), and one from the not too far past, 2003.

This time I will also be presenting the stones in the order of estimation of price by Christie’s.

The star of the evening for us is a rare 21.30 carat Fancy Light Pink diamond of exceptional quality and color as it is a Golconda Type IIa diamond with VS1 clarity. It is estimated to sell at a price between $4 million and $6 million. Since the price spread is quite significant, I am sure we will see quite the bidding war here.

21.30 carat Fancy Light Pink Golconda diamond

My next choice is pure art in jewelry form. Various color diamonds are combined to create a masterpiece, while allowing quite the display of value creation. This collection is valued at between $3.5 million – $5 million.

A total of over 100 carats in these earrings, this pair features a 52.88 carats VS1 diamond and a 51.46 carats VS2 diamond, both pear shaped and both Fancy Light Yellow. Large enough to get attention yet a subtle color, they are valued between $2.5 million and $3.5 million.

52.88 carat Fancy Light Yellow VS1 diamond and 51.46 carat Fancy Light Yellow.VS2 diamond earrings

This item may or may not break a record, but will surely grab attention. This 1.42 carat Fancy Red is a previous Argyle tender stone. Lot #11 from the 2013 tender, it used to be a 1.66 carat Fancy Deep Pink, but it was re-polished to realize the potential of the stone. This practice is common when there is recognizable potential there, but only a handful of experts globally can do it properly. This stone is valued between $1.5 million and $2.5 million. In order to break the world record, this stone would have to sell for $3.47 million total or more. We shall see!

1.42 carat Fancy Red diamond (Argyle tender stone Lot #11 from 2013)

Up to now I have concentrated on both Fancy Intense and Fancy Vivid Blue diamonds. It seems that I may need to add Fancy Blue to my research as we see great importance given to this depth of color as it is also quite rare. This stone, a rarely seen weight of 5.70 carats and VS1 quality, is valued between $1.5 million and $2.5 million.

5.70 carat Fancy Blue VS1 diamond

I like this diamond. Other than the certificate, where else do we see a brown tint here? A great looking Fancy Brownish Pink diamond weighing in at 14.28 carats, this diamond is special also due to its IF clarity. A real value can be shared here. Estimated between $1 million and $2 million, it may actually surprise us.

14.28 carat Fancy Brownish Pink diamond ring

Every auction must have some special Fancy Intense or Fancy Vivid Yellow diamond, and this one is no exception. Coming in at 25.16 carat Fancy Intense Yellow with a VS1 clarity, this one is expected to be sold for anywhere between $500k and $700k.

25.16 carat Fancy Intense Yellow VS1 diamond ring

Lots 198, 199, 200, and 201 had to be displayed as a group – it was just stunning the way they are displayed together. Lot 198 is a 0.73 carats Fancy Blue diamond valued at $90k – $120k. Lot 199 is a 0.51 carat Fancy Vivid Pink with 2 flattering Fancy Blue diamonds coming in at 0.28 and 0.27 carats on the shoulders and valued at a total of $140k – $200k. Lot 200 is a 4.06 carat Fancy Grey Green valued at $100k – $150k. Finally, Lot 201 is a special one – a 0.76 carat Fancy Deep Pink, Argyle tender stone #18 from the 2003 tender and valued at $100k – $150k.

Christie’s Magnificent Jewels Lots 198-201

by Yaniv Marcus

Please visit Leibish & Co. Site

Qingsongite: New Mineral from Tibet Hard as Diamond

Source: Sci-News

The International Mineralogical Association has officially approved qingsongite as the name for a new mineral, cubic boron nitride.

Qingsongite was named after Prof Qingsong Fang (1939–2010) from the Institute of Geology, the Chinese Academy of Geological Sciences, who found the first diamond in the Tibetan chromium-rich rocks in the late 1970s, and contributed to the discovery of four new minerals.

“The uniqueness of qingsongite is that it is the first boron mineral that was found to be formed at extreme conditions in deep Earth. All other known boron minerals are found at Earth’s surface,” explained Dr Larissa Dobrzhinetskaya of the University of California, Riverside, who with colleagues described the new mineral in 2010 in the journal Geochimica et Cosmochimica Acta.

Qingsongite was found in the southern Tibetan mountains of China within chromium-rich rocks of the paleooceanic crust that was subducted to a depth of 190 miles and recrystallized there at a temperature of about 2,372 degrees Fahrenheit and pressure of about 118 thousand atmospheres.

“About 180 million years ago the rocks were returned back to shallow levels of the Earth by plate tectonic processes leading to the closure of the huge Paleo-Thethys ocean and the collision of India with the Asian lithospheric plate,” Dr Dobrzhinetskaya said.

Until now, cubic boron nitride, created first in the laboratory in 1957, was known as an important technological material. Because its atomic structure bears resemblance to carbon bonds in diamond, it has high density and could be as hard as diamond.

To date, more than 4,700 species of minerals have been recognized, with at least 100 proposals for new minerals and their names submitted each year to the International Mineralogical Association for approval.

New mineral, Qingsongite, only inferior to diamonds in hardness

Source: Mineweb

Qingsongite, the first boron mineral to be formed in extreme conditions deep in the Earth, has U.S. geologists, as well as their Chinese and German counterparts, interested.

Author: Dorothy Kosich
Posted: Monday , 05 Aug 2013
RENO (MINEWEB)

Up until this month, Qingsong Fang, a professor at the Institute of Geology, the Chinese Academy of Geological Sciences, was probably best known for his discoveries of four new mineral species, along with his discovery of the first diamond in Tibetan chromium-rich rocks in the late 1970s.

Now, he is the namesake for a new mineral, cubic boron nitride or “qingsongite”. Formerly only created through a chemical compound in laboratories, cubic boron nitride (CBN) is only inferior to a diamond in hardness. Under certain conditions, the chemical compound can be harder than a diamond.

The laboratory version of CBN is considered one of the greatest technological advancements for grinding hardened ferrous and superalloy materials, and is classified as a “super abrasive.” It is usually found in grinding wheels and coatings.

The mineral cubic boron nitride was discovered in the southern Tibetan mountains of China within the chromium-rich rocks of the paleooceanic crust that was subducted to a depth of 190 miles and recrystallized there at a temperature of about 2372 degrees Fahrenheit.

“About 180 million years ago, the rocks were returned back to shallow levels of the Earth by plate tectonic processes leading to the closure of the huge Paleo-Thethys ocean—an ancient Paleozoic ocean—and the collision of India with the Asian lithospheric plate,” University of California Riverside geological Larissa Dobrzhinetskaya told UCR Today.

Although the discovery was made in 2009 and involved UC Riverside, the Lawrence Livermore National Laboratory in Berkley, California, the University of Main and institutions from China and Germany, it was officially approved as a new mineral early this month by the International Mineralogical Association. Grants from the University of California Laboratory Fees Research Program and the National Science Foundation also helped support the discovery.

The Growth Of The Colored Stone Market

Source: Forbes

Author: Katherine Palmiter

It’s not everyday that the unofficial “king of diamonds” buys the same ruby at auction for the second time in a row. That was the case last month when jeweler Laurence Graff paid $8.6 million at auction in Geneva for a Burmese ruby he had originally purchased for $3.6 million in 2006. The recent record sale is indicative of a shift in the jewelry market over the past few years. With large diamonds’ increasing popularity in investment portfolios, rubies and sapphires offer a colorful alternative.

For one, the colored stone market is much more nuanced when it comes to pricing than the customary set of rules that dictate diamond grading. The standard “four C’s” diamond pricing guide tends to be a rigid assessment of cut, clarity, color, and carat weight. However, colored stones pose an exciting opportunity for new buyers and experienced collectors alike. Compared to the narrow margins of the diamond trade, the colored stone market is like the Wild West, a less trafficked terrain where buyers can discover rare treasures that are sure to appreciate. Elizabeth Taylor was an early colored stone connoisseur; starting with the cabochon sapphire engagement ring she received from Michael Wilding, she developed a storied predilection for emeralds and sapphires.
Although the process of assessing colored stones requires an aesthetically-driven kind of expertise, it doesn’t mean all gemstones are equal. Rubies, sapphires, and emeralds sourced from historically significant regions are still more desirable and continue to fetch higher prices. For centuries esteemed mines in Kashmir, Sri Lanka, and Burma have produced highly sought after corundum, the extremely durable mineral that forms rubies and sapphires. These mines are known for producing stones with deep color saturation, like prized “pigeon blood” rubies and “velvet” blue sapphires. Even though they are found on every continent, a vanishingly small percentage of colored stones on the market stand apart. Over 98% of the stones available today have been heated in an attempt to improve their natural color. Connoisseurs should look for telltale signs that the mined material remains authentic and untouched by human meddling. At first glance a high quality stone should have three things: a deep color tone, few visible inclusions, and a symmetrical faceted cut.
While it’s important to trust your eye, especially in respect to coloration and cut, due to the proliferation of synthetic stones and the frequency in which mined stones have been altered, sometimes a loupe may not be enough. When trusting your eye is not an option, accompanying paperwork including receipts, appraisals, and certificates may be your best bet. Luckily, laboratory evaluations by organizations like GIA and Gubelin are another option for buyers seeking additional assurance.
Despite the explosive growth at the high end of the market, vintage pieces provide an accessible and trustworthy entrance to the world of colored stones. Timeless Edwardian rings from the early 20th century often feature deep blue sapphires set on rectangular plates surrounded by intricate diamond millegraining. Framing colored stones in a halo of pearls or diamonds first became popular during the Art Deco period, but the halo setting remains the style of choice for those looking to showcase a dazzling colored stone. Back in 2010 the Edwardian halo made headlines after Prince William proposed to Kate Middleton with the 18-carat sapphire ring Prince Charles had originally bestowed Princess Diana.
As the market grows pink sapphires have proven more and more popular, recognized for their brilliance and color intensity. With pink sapphires as with blue sapphires and rubies, the fact remains that unaltered colored stones are increasingly hard to find. Mary-Kate Olsen’s Cartier ring is perhaps the most noteworthy vintage piece of late, boasting a halo of 16 sapphires. Olsen’s beau Olivier Sarkozy hit the nail on the head with the purchase. As it goes to show, vintage jewelry is a surefire way to invest in quality without compromising elegance.