Where the world comes to find out about diamonds. Newsletter. September 2012 Volume 2 Number 9

Transcription

1 Where the world comes to find out about diamonds Newsletter September 2012 Volume 2 Number 9

2 Where the world comes to find out about diamonds Newsletter of the Price of Diamonds website Price of Diamonds Newsletter September 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 Diamonds on the Web. Plus a number of short articles on diamonds and the diamond industry. Plus the usual features. I do hope you have a great month! Michael Price of Diamonds Contents Editorial 2 Diamond Dealer of the Month Diamonds on the Web 3 Diamond Guide Price 6 Diamond Market Price 7 Example Diamond Prices 8 Diamond News 9 Diamond Mines & Miners 11 Diamond World Events 13 Glossary 14 Copyright 2012 By Technical Author Services Pty Ltd. All Rights Reserved. All copyrights and trademarks belong to their respective owners 2

3 ~ Diamond Dealer of the Month ~ ground shipping on all US orders. Diamonds on Web Products Diamonds on Web have an extensive range of diamonds and diamond jewelry. All of the certified diamonds are R ead this write up and find out who Diamonds on Web really before you buy diamonds from them. Also it is worth noting that if you want to buy and diamonds from a diamond dealer then you should do plenty of due diligence before you buy diamonds. Who are Diamonds on Web The Diamonds on Web website was first recorded online in Oct 1999 and began serving clients around 2000 but has been operating as a wholesale diamond supplier to jewelers and other diamond dealers since The principal is Mr Edan Freidman. It is a relatively small business with under 20 employees. They are currently based in San Francisco, California but also maintain an office in Tel Aviv, Israel. Diamonds on Web Customer Service give them a good rating in terms of customer service with an overall rating of almost 100 percent over a period of months. Diamonds on Web are available on phone contacts in the US, Ireland and the UK. They also have a live chat facility on the website for any queries or questions. Diamonds on Web also offers free UPS All of the diamonds, are graded by recognized laboratories (GIA, AGS). They are, when sold, accompanied by a GIA or AGS grading report and you can inspect, and should, compare the diamond you received against the grading report. Signature Diamonds Hearts & Arrows Diamonds Fancy Yellow Diamond Featured Diamonds Engagement Rings Classic Solitaire Settings Setting with Side Stones Three Stone Rings Settings with Matching Bands Settings for Fancy Yellows Pre-Set Engagement Rings Wedding & Anniversary Women s Wedding Bands Women s Diamond Bands Men s Wedding Bands Men s Diamond Bands Diamond Eternity Bands Hearts & Arrows Studs Pre-set Diamond Studs Stylish Diamond Earrings Luxury Pendants Solitaire Pendant 3 Stone Pendant Diamond Pendants 5 Stone Journey Pendants Pre-set Solitaire Pendants Pre-set 3 Stone Pendants Princess Diamond Bracelets 3

4 Round Diamond Bracelets Stylish Diamond Bracelets Matching Jewelry Sets Great Gifts Clearance Jewelry and wire transfers. All Credit card orders are placed over a secured connection. Only authorized personnel will have access to your billing information stored on our secure server. Buying from Diamonds on Web Diamonds on Web offer a 100% satisfaction guarantee on all Diamonds On Web diamonds and diamond jewelry. You have 30 days from the invoice date, to inspect the stone and make a final decision. If for any reason you decide not to keep the stone, they will accept it back in its original condition, no questions asked, free of charge. This guarantee applies to all diamonds and jewelry sold on our website. It does not, however, apply to custom designed jewelry or special orders since they cannot be resold. Buying from Diamonds on Web is simple enough. You pick the diamond or diamonds or jewelry you would like and follow the process through to the shopping cart and make your purchase. You will have a 30 day money back guarantee which starts from the time you are invoiced. Once your 30 -Day Money Back Guarantee has expired, you will have the opportunity to upgrade your diamond at any time and you will only be charged the difference in price with no other fees. According to Diamonds on Web, There is no limit on the number of times you can upgrade and there is no restocking fee. Diamonds on Web state that all diamonds are genuine and they do not carry any treated or enhanced diamonds. Diamonds on Web Payment Options Diamonds on Web accept Visa, Master Card, American Express, Discover Card, check/debit Diamonds on Web also offer a 1.5% discount when you pay via a bank wire and if you purchase a DiamondsOnWeb Special Offers diamond, you receive a 2% discount for using bank wires. To pay by bank wire transfer. Just give Diamonds on Web a call and they will provide you with the bank information for the transfer. As soon as the wire transfer clears, they will ship the diamond/jewelry directly to you. Bill Me Later is another option provided for payment. Bill Me Later allows users to pay without using a credit card. At checkout, provide your birthday and the last four digits of your social security number and your purchase is complete. It s that easy! There are no codes to find or account numbers to remember. It is a finance arrangement however so be aware that if the funds are not fully paid out within the 90 days then you incur a fiancé charge plus interest at 19.99%! Diamonds on Web Returns and Refunds Diamond on Web state on their site: If, for any reason, you decide not to keep the loose diamond/jewelry, we will accept it back in its original condition, no questions asked, no restocking fee, for a refund or an exchange within 30 days of purchase (date on receipt). Refunds will be in the original form of payment except for wire transfers. Please note that this only applies to diamonds and jewelry found on our website and not to custom jewelry or special orders. 4

5 If you are returning goods you will need to follow this procedure: 1. Prior to returning, please call us at to obtain the return address and return authorization code. 2. Secure all merchandise, original invoice, and accompanying materials (diamond certificates) in a cardboard box that can be purchased at your local post office or mailing center. 3. The following 3 tasks are required for returns: a. The package must be shipped via US Postal Service Registered Mail. b. The package must be insured for the full value of the diamond/ jewelry. c. You must request a return receipt. 4. Once the package has been received and the contents inspected, a refund will be issued by the means of original payment (except for wire transfer). Last Word on Diamonds on Web Diamonds on Web also state they are a socially responsible company that guarantees all diamonds to be conflict free in accordance with the Kimberly Process If you have bought any diamonds or jewelry from Diamonds on Web, please feel free to leave your feedback on the quality of service and products of Diamonds on Web with regard to complaints and special attention or service given by Diamonds on Web online. What about other gemstones? Amethysts Emeralds Garnets Jade Opals Pearls Peridot Rubies Sapphires Topaz This space to Let! Contact michael@priceofdiamonds.org For details. 5

6 Diamond Guide Price brilliant the diamond will be (not including fancy diamonds which are specifically of a color such as rose pink for example) and the heavier the diamond weights the more it will cost. And this cost actually increases exponentially. This means that the price paid per carat of diamond weight will be higher for a large diamond than for a smaller one. This is why a 1 carat diamond may only cost 1000 to 2000 dollars per carat but a 30 carat diamond may cost 300,000 dollars. Larger diamonds are indeed much more rare than smaller one. A diamond guide price would be a good thing to get an idea of how much to pay for a diamond when you go shopping. The price of a diamond depends on a number of factors. Apart from the industry setting of the price of diamonds for the purchases purposes the points to look for are the Cut, Clarity, Color and Carat weight of the diamond. There is also the rarity and size of the diamond. The more rare a diamond the higher its value and also the more carats, the higher the value of the carat. Depending on the quality of the diamond a half carat diamond might be valued at 2 to 3 thousands dollars. A 2 carat diamond would fetch anywhere from 12 to 25 thousand dollars per carat and so forth. (See chart above for further examples) It is very important that one really understands how this works and how you can be sure that the diamond you buy is being sold for the right price, hence this diamond guide price. Here is a general guide to the diamond price. This can vary depending on the quality of the diamond. The higher the quality the more expensive it is. This means the clearer the diamond, the less imperfections or inclusions it has which lets more light through and makes for a better sparkle. The less color the more 6 Most diamonds produced are of inferior quality and are used in industry for cutting and in such things as watches. These sorts of diamonds are close to worthless compared to the jewelery quality diamonds. It is vitally important however that when you buy a diamond, that you get a proper certificate of authentic ity from an independent laboratory showing the quality of that diamond. A simple statement by a dealer or jeweler would be insufficient as later on in years of you come to have the diamond valued for insurance o resale purposes you do not want the shock of find out that you have bought an industrial grade diamond instead of a high quality one. It is also important to ensure you get a correct valuation of a diamond. Having it checked at a Gemological laboratory is a must. Also having it independently valued is highly important to ensure you get the correct value and not that which the seller places upon it. This is important, not just for the cost of the diamond, but also for insurance reasons. In the event the diamond is stolen or goes missing you want the insuranc to pay out the value of the diamond. A diamond guide price therefore is a vitally important factor in determining that you have indeed bought a quality diamond and not just a pig in a poke.

7 Diamond Market Price M any people think there is a diamond market price but this is not so. There is no such thing as a diamond market price in the same way there is with say, gold or silver or any of the precious metals. Diamonds are not bought and sold on an open market but only between diamond producers such as De Beers, diamond dealers and the manufacturers who create diamond jewelery or who sell to industry. It is not a public listing so one cannot buy diamonds to later sell on an open market. The Rapaport Diamond price list, known as the Rapaport Report, which many people know of is a private list between traders. The Rapaport Report is considered the jewelry industry standard for the pricing of diamonds. This report is published on a weekly basis and weekly used by jewelers and diamond dealers or diamond merchants to set the diamond price for prices for retail sales. The report is issued in the form of a table and the price of the diamonds listed are based on the 5 C's of diamonds - carat, color, clarity, cut and cost. The Rapaport List is copyrighted and available only to subscribers to its magazine. The diamond price is dependent primarily n the mining industry and this is largely dependent upon the Russian diamond industry, who produce around 25% of the worlds production, De Beers, the South African mining company who stock pile diamonds and control their price thereby as well as having affiliations with the Russian diamond industry and lastly the quality of the diamonds issued. A diamond market price is really that diamond price which is set by the industry as that diamond price which the market will bear. In other words, if the price of diamonds is too expensive, purchases will fall, so the price would then be adjusted down until the sales improved. The perceived value of diamonds is held high due to the intensive marketing some years ago by De Beers and their outlets. Such phases as, A diamond is a girls best friend and the introduction of diamonds as part of an engagement ring have all contributed to increasing how valuable a diamond is. Diamonds are not as expensive as people imagine. The economics of mining for diamonds, although costly are not much more expensive than mining for many other minerals or gemstones. One still has to go through tones of ore to get a few grams of diamonds but the same applies to other gemstones and minerals. Most of the price of diamonds is artificially created. Nevertheless good quality diamonds are very beautiful and even if one cannot make money from a diamond market price, one can always appreciate the beauty and splendour of a good quality diamond. ~oo00~ 7

8 ~ Example Diamond Prices ~ Here are some examples of diamond prices around traps. The price of diamonds varies considerably depending on the type and quality and size of the stone. It s not like gold say for example where the price is per ounce or gram of gold. The price for a diamond carat can depend on so many factors. The lists below, then, are simply an indicator of the likely prices one might may for a particular Spotlight on India According to Diamond World, The spotlight is on India Two leading platforms of the Indian gem and jewellery industry will unfold beginning August 19 until August 27. IIJW- promoting India as the innovation and design destination is slated between August The 29th edition of IIJS a leading B2B platform for sourcing gem and jewellery is slated between August Both trade shows have been inviting foreign buyers and this year too, they are expected to host a large audience and participation despite the global economic instability. India as a G&J destination holds its place as a key centre in the world, today and the two trade shows add anticipation about industry sentiments. After a tough six months of dullness with rising prices and economic crisis and India s domestic market and manufacturing being affected with the rupee instability, and jeweller s strike, the follow ing six months are much awaited -packed with India s festive Diwali season, wedding season, leading up to Christmas. WGC's managing director for investment research, Marcus Grubb, called India a wild card mentioning that dull gold demand could see some rise prompted by a growth in India s demand. Also with the rising appreciation of diamond jewellery, there is hope that the festive season would stimulate demand. Hope is pinned on India s demand revival. 8

9 ~ ~ Diamond News ~ ~ JUNE HONG KONG JEWELLERY & GEM FAIR One of the top three trade events of its kind in Asia, the JUNE HONG KONG JEWELLERY & GEM FAIR (June Fair) attracts thousands of exhibitors and buyers from around the world. In 2013, the June Fair will run from 20 to 23 June at the Hong Kong Convention & Exhibition Centre (HKCEC). It will offer international jewellers what UBM Asia s events are known for: unmatched opportunities to tap into the world s most robust jewellery markets, sell products to thousands of serious buyers from around the world, and cost-effectively market their brands on a global stage. Superior location Hong Kong -- Asia s world city -- is the perfect springboard to the booming economies of mainland China and the rest of Asia. The city s proximity to two of the world s most robust jewellery markets: China and India, has made the city the preferred launch pad for companies looking to break into these markets. Ideal schedule June is just the perfect time for jewellers to restock in the middle of the year and update themselves on market trends for the coming seasons. The June Fair s ideal schedule and a host of exciting offerings have propelled it to become the most important midyear jewellery event in Asia. Clear product sectorisation enhances business matching The Fair s large scale and the wide variety of products offered are easy to navigate. Exhibitors are grouped under specialty pavilions according to the products they offer. With such buyer-friendly setup, buyers can easily locate the products they are interested in, while exhibitors can easily meet their targeted buyers. An esteemed venue for the world s finest jewellery 9

10 ~ ~ Diamond News ~ ~ ~ In Brief ~ With the date of the fourth edition of the Antwerp Diamond Trade Fair set for January 27-29, 2013, the fair's organizing committee has announced that the number of exhibitors will grow to 70 from 60 last year, with more Antwerp diamond firms on the waiting list. The expansion of the fair will be facilitated by the Diamond Club of Antwerp which will open up a wing of its trading hall that had not been used at previous editions of the annual fair. One of the top three trade events of its kind in Asia, the JUNE HONG KONG JEWELLERY & GEM FAIR (June Fair) attracts thousands of exhibitors and buyers from around the world. In 2013, the June Fair will run from 20 to 23 June at the Hong Kong Convention & Exhibition Centre (HKCEC). It will offer international jewellers what UBM Asia s events are known for: unmatched opportunities to tap into the world s most robust jewellery markets, sell products to thousands of serious buyers from around the world, and costeffectively market their brands on a global stage. New platinum jewellery collection launched The collection is targeted at contemporary, casual and semi-formal wearability. TBZ opens showroom in Vadodara. This move is part of the jeweller s expansion activity in India Kuwayama Corporation to showcase at IIJS It has tied up with Intergold Gems as its exclusive distributor in India Kiron Kher unveils collection by Dwarkadas Chandumal Jewellers. The unveiling took place at Glamour 2012 James Allen provides flexible payment option for online customers. The intent is to enhance the consumer confidence and shopping experience Petra lowers production target for fiscal 2013 The production estimate has been reduced by a quarter of a million carats De Beers begins worldwide diamond aggregation in Botswana. It is relocating its Sights and sales operations from London to Gaborone over the next year Rajesh Exports' net profits up 3% in Q1' FY'13 Net sales up 5%. Master Jewellers and CIBJO join hands for CSR project. CIBJO President believes the two bodies share the same ethics and principles HK's polished diamond imports drop marginally in H1'2012. Rough diamond exports up 22% Damiani express interest in India's single brand retail sector. Has approached the government for approvals Shrenuj & Co. net profits drop 34% in fiscal Q1 Diamond sales up 6% GIA's New York Jewelry Career Fair attracts high participation. Recruiters show that there is a demand for talent. 10

11 Diamond Mines & Miners of the World I t can be surprised to learn just how many diamond mines there are in the world. There are just fewer than 40 diamond mines in the world currently. Around 11, such as the Argyle Diamond mine in Western Australia (The larges) are big mines but the majority are small as mines go. Some are alluvial mines, which is to say where diamonds can be found on the surface having been exposed by erosion due to weather or water. The rest are either open pit or cut with some underground. Most of the diamonds produced are industrial grade. That is to say, they are unsuitable for jewelry as the quality of the diamond is too inferior. But they are excellent as diamond cutters in industry to cut hard substances such as steel. However laser is now replacing many diamond cutters even when it comes to cutting diamonds themselves. Here is a list by country. Angola Catoca Diamond Mine. This the fourth largest diamond mine in world. Fucauma Diamond Mine. Newly constructed and open just a few years. 40 percent owned by Endiama and 35 percent by Trans Hex. The Luarica Diamond Mine is also 70 percent owned by Endiama and Trans Hex collectively The Luzamba Diamond Mine is Angola s largest alluvial mine and Endiama own a 50 percent slive of that too with Odebrecht owning Price of Diamonds the other 50 percent. Damtshaa Diamond Mine is a open pit mine owned by De Beers. The Jwaneng Diamond Mine is the richest mine in world and also owned byde Beers. The Letlhakane Diamond Mine is another De Beers mine. And the Orapa Diamond Mine is the largest and oldest of four owned by, you guessed in, DeBeers/Botswana. Congo (DROC or RDC) Bakwanga Mine: (aka Bushimaïe, Lubilash) An alluvial river mine. Forminière Diamond Mine. Also an alluvial mine located on the River Tshikapa, in Kasaï Lesotho The Letseng Diamond Mine is an open-cast mine in the Maluti Mountains 70 km from Mokhotlong. Namibia Elizabeth Bay Mine. An open-cast mine in the Namib desert, just south of Lüderitz. Namdeb. Orange River (Daberas) Mines. A collection of small Orange River alluvium mines in. Namdeb Namib Gov. Marine Mining. Diamond mining on the sea bed. Namco Mining operates a dredging fleet off the west coast of Namibia. Sierra Leone Magna Egoli Mine. This is the largest mechanized mine in Sierra Leone. The Koidu-Sefadu Mines are ssubsistence digging in alluvium pits west of Koidu. And the Koidu Open Pit Mines takes advantage of a Kimberlite pipe just south of Koidu. map South Africa The Baken Diamond Mine is located along the Orange River in North Cape. Owned by Trans Hex. 11

12 The Cullinan Diamond Mine. Probably one of the more famous diamond mines. This is an open Pit/Hard Rock diamond mine once owned by De Beers but now owned by Petra Diamonds. Finsch Diamond Mine, also owned by De Beers is an open-pit mine not far from Lime Acres. One of the oldest diamond mines is the Kimberley Diamond Mine. Mining operations started in but the Kimberley Open Pits were closed in The Koffiefontein Diamond Mine opened in 1870 and closed in The Oaks Diamond Mine. Located in the Limpopo province this is an open-pit mine also operated by De Beers. The Venetia Diamond Mine is a high producing mine with over 40 percent of the worlds diamonds produced there. Tanzania Williamson Diamond Mine. Another open cut owned mostly by De Beers. Canada Diavik Diamond Mine. The Diavik diamond mine is located in the NWT. The Ekati Diamond Mine, also located in NWT was Canada s first diamond mining operation. India Panna Diamond Mine. An alluvial mine in the state of Madhya Pradesh. Russia Aikhal GOK Mine is a collection of three open-pit kimberlite pipe mines: Aikhal, Jubilee, and Sytykan all based in Siberia Another Siberian mine is Anabar GOK Mine. This is in the northern most location of Russia s diamond mines. Jubilee (Yubileinaya) Mine. A newer open-pit kimberlite mine close to Udachny. Alrosa. The Mirna Mine is the largest diamond deposit in Russia. Udachnaya (Udachny) Pipe Mine is one of the deepest diamond mines in the world. Zimbabwe Murowa Diamond Mine. Open Pit and Underground. 75% owned by De Beers. River Ranch Diamond Mine is another Open Pit and Underground mine. Also mostly owned by De Beers. Australia Argyle Diamond Mine based in the Kimberley is owned by Rio Tinto Ltd is the largest producer of diamonds in world today. They produce mostly industrial grade diamonds but also produce the majority of the much sought after pink diamonds. Borneo Cempaka Diamond Mines and based in Cempaka/Riam Kanan, South Kalimantan and the alluvial diamonds are mined by indigenous artisanal Kalimantan miners. USA Crater of Diamonds State Park, Arkansas. Mostly for tourists although some larger jewelry quality stones have been found there Kelsey Lake Diamond Mine, Colorado Principle Diamond Mining Companies Some of the principle diamond mining companies include: ALROSA, operates mainly in Russia. BHP Billiton, 80% owner of the Ekati mine as well as many other mineral mines, iron ore and other metals. Camphor, 4.9% owner of Gahcho Kue Diamond Mine Project. De Beers, probably the most famous diamond miner and owner of 20 mines in Africa, 70% owner of the Northwest Territories Snap Lake Diamond Mine Project, 100% owner of Ontario s Victor Diamond Mine Project, 60% 12

13 owner of the Northwest Territories Gahcho Kue Diamond Mine Project and participant in numerous joint ventures worldwide. A finger in many diamond pies. Also now have their own retail stores around the world. Debswana, a partnership between De Beers and the government of Botswana. Endiama, the national diamond-mining company in Angola and exclusive concessionaire Harry Winston Diamond Corporation, a 40% owner of the Diavik mine. Petra Diamonds, operates in five African countries, mines include the Cullinan, Koffiefontein and Williamson mines, also the sole operator of the Alto Cuilo project in Angola. Rio Tinto Group, partial owner of Argyle, Diavik (60%), and Murowa diamond mines. Tahera Diamond, owner of the Jericho mine in Canada. Up and Coming World Diamond Events Auctions, Exhibitions in 2012 By Month in 2012 By Date 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 By Country 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,

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

15 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- 15

16 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 16

17 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- 17

18 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. 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 Price of Diamonds physically small. Wholesale Wholesale prices are listed PER CARAT to show this price difference. For instance, a 1/2- carat round brilliant diamond of G/VS2 quality may sell for $3,600 per carat ($1,800 for the stone), whereas a 1-carat stone of the same quality would likely cost $6,300 per carat ($6,300 for the stone) because it is twice the size and more rare. Zirconia Also known as Cubic Zirconia, this is a substance often used as a substitute to genuine diamonds. It is a carborundum substance and easily told from diamonds due to being heavier than diamonds. 18