Diamonds Update

Gemesis Working on Other Colors of Synthetic Diamonds

Gemesis, the Florida-based synthetic diamond company, currently only produces the laboratory grown diamonds in yellow and orange colors.  The company is working on production techniques to produced pink and blue synthetic diamonds.  It hopes to have that process developed by the end of this year.  Gemesis is also working on process that would eventually allow it to grow white diamond crystals in the 5 to 10 carat range that are in greater demand worldwide.  These larger sized synthetic diamonds are probably at least three years away from commercial production.

Gemesis has recently updated their web site to provide educational information about their company and synthetic diamonds, including the jewelry brands carrying Gemesis Cultured Diamonds.

Check out my previous post entitled "Synthetic Diamonds or Diamond Simulants: Why the Confusion?"

Competitive Argyle Pink Diamond Tender

The 2007 Rio Tinto Diamonds Argyle Pink Diamond Tender has concluded with great success.  Some of the rarest and most beautiful diamonds in the world were for sale and examined by a select group of invited buyers in Perth (September 11-14), Hong Kong (September 18-28) and New York (October 1-12).  About 100 prospective buyers were invited to examine the diamonds in secret locations, and then submitted bids for one or more of the 65 specially selected pink diamonds.

The rules of the tender prohibit announcement of the 17 successful bidders, the winning bids, or even the sales total for the tender.  The special Rio Tinto tender pink diamonds have been know to get prices of as much as $400,000 per carat, forty times that of white diamonds.  Recent projections that pink diamonds from the Argyle mine are expected to run out by 2018 have increased the public and industry’s awareness of their rarity and perceived value.

This year’s tender was exceptional due to the range of vivid and deep colors with deep pinks, purplish reds, and a rare gray-violet colored diamond.

Rio Tinto Diamonds Argyle mine started production in 1985 and the open pit mine operates 24 hours a day, 265 days a year.  The open pit’s normal life ends in 2008 but Rio Tinto has extended its life to 2018 with low-grade production expansion in the pit and new underground operations.  Historically, 60 to 80 million tons of material are extracted from the open pit operations, resulting in about 9 million tons of diamond-bearing ore and between 25 and 30 million carats of diamonds.  Moving beyond 2008, production is projected fall to about half of current operations.

Only about 5% Argyle’s production is gem quality diamonds and only an extremely small portion of those are pink diamonds.  It is certainly no exaggeration to say that the annual Rio Tinto Diamonds Pink Tenders contain exceptionally rare diamonds.

Blue Diamond Sells for $7.98 Million

Sotheby’s recent Hong Kong auction was the site of a record-breaking diamond sale.  The 6.04-carat fancy vivid blue diamond, cut in the emerald shape, sold for $7.98 million.  The internally flawless sold for $1.32 million per carat, which is a new price per carat record for any gemstone ever sold.  The combination of the rare blue color, the internally flawless color, and the large carat weight for a blue diamond make this an exceptional stone among world-class diamonds.

The previous owner of the diamond was a private Asian collector and the new buyer is Moussaieff Jewellers, a London based jeweler with a reputation for acquiring some of the world’s most valuable gemstones.

Blue diamonds have always captured attention because of their rarity and beauty.  There are entire books written about the most famous blue diamond, the 45.52-carat Hope Diamond, displayed in the Smithsonian Institute in Washington, DC.  The Hope Diamond started out as the 112.25-carat French Blue discovered in India, which was a source of blue diamonds from 1500-1700.

In recent history, South Africa has been the location of blue diamond discoveries, almost exclusively at the Premier Mine.  Some other famous blue diamond sales include a 1994 Sotheby’s sale of a $9 million for a 20.17-carat blue diamond ($460,000 per carat).  In 1995, a 6.70-carat blue diamond sold for $3.52 million ($525,000 per carat).

Hong Kong was an appropriate location for the record-breaking sale because diamond shoppers there are notorious for their thirst for luxury diamonds.  Hong Kong is the king of glitz in Asia, especially for colored diamonds.  Colored diamond sources are diminishing so the rare pinks and blues are becoming increasing popular with serious collectors in Europe, the United States, and Asia.

Rare Pink Diamond Sale

Pink diamonds have become one of the most sought after of nature’s treasures so it is no wonder that the annual sale of rarest of the rare pink diamonds is a diamond lovers dream.  Unfortunately, this sale is so exclusive that only about 100 select bidders are invited to participate and few diamond lovers will ever even see a photo of one of these diamonds, let alone see one in person.

The 23rd Argyle Pink Diamond tender, conducted by Rio Tinto owner of the Argyle Diamond Mine, consists of three separate showings.  The 2007 Perth presentation was recently concluded, the display in Hong Kong is September 18-28, and the final event is in New York is October 1-12.  At each event, the invited bidders get to examine 65 of the world’s rarest pink diamonds.  They make bids on the diamonds they want and Rio Tinto notifies the winners in October.  Rio Tinto never publicly announces the winners or the prices and is not obligated to accept the bids.  They are selling rare items so they reserve the right to determine what the value should be.

This year’s tender of 65 items are reported to be of exceptional quality.  The 65 Argyle Signature Stones collection diamonds were picked from the 8,000 to 10,000 polished pink diamonds produced annually and are deeper in color and more vivid than previous year’s collections.  In addition to the classic pink diamonds, this year’s collection contains some purplish reds, deeper pinks, and an unusual rare grey-violet diamond cut in a unique shield shape.

While pink diamonds have always been rare, they are becoming even more so because the surface mining operations at the Argyle Mine are nearing their productive life.  Rio Tinto recently announced they would invest in deeper underground mining operations that will continue production of pink diamonds until 2018.  Since the Argyle Mine supplies 90 percent of the world’s pink diamonds and there are no new pink diamond sources on the horizon, pink diamond lovers are investing now in beautiful stone that they know will continue to increase in value.

Check out other pink diamond articles:

Pink Diamonds Sold (2006 Tender)

Red Diamond For Sale

Rare Green Diamonds Found in Australia

Blina Diamonds, a diamond exploration company, announced today that three rare green diamonds were recovered from the Ellendale field located 2,000 km north of Perth in Western Australia.  These were the first green diamonds found in the Ellendale area.  The largest of the three diamonds weighed 2.72 carats.

Natural fancy colored green diamonds are very rare and expensive.  Most green diamonds seen on the market are heat treated and irradiated to produce the green color.

One of the challenges with green diamonds is that the green color tends to occur in patches in the diamond, not even throughout the stone.  As a result, when a green diamond is cut and facetted, it has the potential of losing its green color if the patches of green color are not left intact or in the right location.  The risk with green diamonds is that the cutter can easily destroy the high value of the diamond.

Are Black Diamonds Space Diamonds?

Black diamonds have always been a puzzle for geologists. Also known as carbonado, black diamonds are treated as something a little different from conventional diamonds.

First, black diamonds have unusual physical characteristics such as being composed of millions of diamond crystals stuck together and being porous as if formed in a gaseous froth.  Traditional diamonds form as large crystals with classic crystal structure.  Black diamonds look more like the obsidian (glassy black) or pumice (gray and full of holes) that result from volcanoes.  The porous material is full of bubbles that appear to result from gases present when the diamonds formed.  Conventional diamonds, formed deep within the earth, where the high pressure does not allow gases to exist. 

Second, black diamonds are not found in conventional diamond mining locations.  Black diamonds are found in Brazil and the Central African Republic but not one has been discovered in Russia, Australia, Canada, or other African countries that are the primary sources of the 600 tons of conventional diamonds that have been mined over the last century.  Since conventional diamonds are formed deep in the earth’s crust, geologists have been challenged to explain why black diamond sources are so isolated and separate from conventional diamond locations.  Black diamonds are found in alluvial deposits where rivers have washed the stones until they collect in low-lying pockets where they are mined today.  Unlike conventional diamonds, the black variety is not found in kimberlite pipes that would indicate they were formed beneath the earth’s crust.

In recent months, a team of geologists led by Stephen Haggerty of Florida International University in Miami presented the results of a study that theorizes that black diamonds came from outer space.  The team proposes that an asteroid about half mile in diameter impacted earth billions of years ago where South America and Africa were once connected land masses.  Today the deposits of black diamonds are thousands of miles apart because the landmasses drifted apart.

Black diamonds are seldom used as gemstones because they are extremely hard to cut and polish.  They seem to have a hardness that exceeds conventional diamonds due to the fact they do not cleave along crystal planes.  As a result, regular diamond powder only cuts carbonado with extreme difficulty.  This trait makes it ideal for grinding, drilling and other industrial uses but not popular for uses in the jewelry industry.

As the public learns about the possible outer space source of black diamonds, its stellar origin might increase its popularity as a gemstone.  Owning a diamond from outer space might be just the marketing theme that changes how diamond shoppers perceive this unique form of diamond.

Tiffany Yellow Diamond on Display at Smithsonian

Opened in 1910, the National Museum of Natural History is part of the Smithsonian Institution and houses 125 million natural science specimens and cultural artifacts.  The Department of Mineral Sciences focuses on the study of the origin and evolution of minerals, gems, rocks, volcanoes, and meteorites.  What captures the media attention and are the biggest public draw are the gemstone exhibits, which feature such famous pieces as the 112-carat deep-blue Hope Diamond and 220 carat Star of Asia sapphire that are on permanent display.

In 2003, the Smithsonian was the location of a dazzling exhibit featuring the world’s seven rarest diamonds including the 59.6 carat Steimetz Pink, the 203 carat white Millennium Star, the 5.11 carat Moussaieff Red, the 1.01.29 carat vivid yellow Allnatt Diamond, the 5.51 carat blue-green Ocean Dream, the 27.64 carat deep-blue Heart of Eternity, and the 5.54 carat Pumpkin Diamond.

From April 11, 2007 through September 23, 2007, another one of the world’s rarest and most valuable diamonds is on exhibit at the National Museum of Natural History.  The 128.54 carat Tiffany Diamond is a golden-yellow cushion-cut diamond named after is owner, Tiffany & Company.  Also known as, the Tiffany Yellow, the stone is part of the “Bird on a Rock” jewel created by Tiffany designer Jean Schlumberger in the 1960s.  The platinum and gold bird, covered with white and yellow diamonds with a ruby eye, is perched atop the Tiffany Diamond.

Founded by Charles Lewis Tiffany in 1837, Tiffany & Co. gained global recognition in the second half of the 1800s when the firm took advantage of the political turmoil in France.  Tiffany purchased 24 of the 69 French Crown Jewels in 1887 and numerous other famous colored diamonds.  However, a 287.42-carat rough diamond mined in South Africa in 1877 was to become the true attention getter for the firm.  Tiffany purchased the golden-yellow cushion-cut diamond for $18,000, shipped it to the United States, and put it on display in their store for viewing by millions of visitors over the next seventy years.

In June of 2006, the Tiffany & Co. Foundation donated $1.1 million to the Smithsonian as an endowment for the acquisition of gemstones for the Smithsonian’s gemstone collection.  The National Gem Collection, initiated in 1884, attracts more than five million visitors a year and its Hope Diamond, is the most popular museum object in the world.

Laboratory-Grown Diamonds: EGL USA Update

The terms “synthetic” and “cultured” have been so widely used in the marketing of man-made diamonds that the many consumers do understand the difference between these laboratory-grown diamonds and natural diamonds.  In an effort to be clear about the proper disclosure and communication of the synthetic origin of these diamonds, the EGL USA group has revised their diamond grading reports. 

• The EGL now uses the term “laboratory-grown” to disclose the synthetic origin of the diamond.
• EGL USA gemological reports for synthetic diamonds have a new gray color theme to distinguish them from the dark blue scheme for natural diamonds.
• Synthetic diamonds have a mandatory laser inscription that includes the term “lab-grown” (or its equivalent), the manufacturer (if known) and the EGL USA report number.
• The back cover of the new synthetic report features information about the different synthetic manufacturing processes, detection techniques, and grading methods.
• The report identifies the type of synthetic origin: High Pressure High Temperature (HPHT) or Chemical Vapor Deposition (CVD).
• The report identifies the color origin: As Grown or Enhanced (HPHT or irradiation)
• The report contains an identification section that indicates long-wave and short-wave fluorescence, microscopic features, and diamond type.

From the time that HPHT treated diamonds entered the gemstone marketplace in 1999, the EGL USA has continued research efforts to develop reliable detection and identification procedures for HPHT diamonds.

Flood of Fluorescence

Fluorescence in diamonds is a form of illumination created when a diamond is exposed to Ultraviolet (UV) light.  Exposure to UL light can occur from the "backlights" often found in nightclubs, the drying lights used in nail salons, fluorescent lights or direct sunlight. Diamonds emit light due to fluorescence when small amounts of the elements nitrogen or boron are present in the stone. Blue is the most common color of fluorescence, but other colors (yellow, greenish blue, green, white and pink) are also possible.

About 35% of gem quality diamonds have fluorescence visible under an ultraviolet light. About 10% of gem quality diamonds have enough fluorescence to make a noticeable difference in the diamond's color when viewed under incandescent light (low in UL) and in sunlight or fluorescent light (high in UL). In less than 2% (some estimates are as low as 0.2%) of diamonds, the level of fluorescence is high enough to cause the diamond to appear foggy or milky in appearance.

After years of debate and controversy, the diamond industry is still not clear on the visual and financial impact of fluorescence in diamonds.  In the early days of the diamond industry, diamond merchants and consumers valued diamonds with fluorescence because they felt fluorescence improved the color appearance (whiter looking) under lighting with UL components.

In the early 1970’s inflation was soaring and speculators purchased high-color, high-clarity diamonds as investments.  The perceptions of fluorescence took a dramatic turn in the late 1970s when diamond prices were at crazed levels and the speculators attempted to sell their diamonds.  Suddenly they discovered that many of the diamonds they had purchased had very high levels of fluorescence and that when they went to sell their diamonds, stones with higher fluorescence sold for lower dollars.  This shocking revelation spread through the media and the public got its first education about fluorescence in diamonds.

The diamond industry had another fluorescence shock in the 1980s was Russian diamonds were pouring on the market.  These diamonds seemed to have a higher percentage of Medium to Strong fluorescence than had been seen from traditional African sources.  This influx of fluorescence diamonds fueled the debate over fluorescence and created increasingly negative perceptions within the diamond industry.

In 1993, a television “expose” in South Korea (We Want to Know That) aired the negative image of fluorescence in diamonds and brought it to the attention of consumers.

The consumers negative view of fluorescence was quantified in 1997 when the Rapaport Diamond Report (diamond industry’s pricing Bible), indicated that higher-color (D-H) diamonds with Very Strong Fluorescence were selling for 15% less than comparable diamonds without fluorescence.  The perceptions became reality.

The GIA conducted a scientific study in 1997 to better understand the effect of blue fluorescence on the appearance of diamonds.  The study concluded:

1) Observers who were not in the diamond trade could not see any meaningful difference in diamond color or transparency between diamonds with fluorescence and those without.
2) Observers in the diamond industry found not visible difference due to the strength of fluorescence when the diamonds were viewed table-down, as is typical for color grading.
3) Observers in the diamond industry found that diamonds with higher levels of fluorescence had better color appearance (whiter) than diamonds with lower fluorescence levels when view in the table-up position, which is how diamonds are viewed by consumers.

Even though the scientific study indicated that consumer could not see the difference, the introduction of online diamond information at the end of the 1990s meant that consumers were now looking at certifications for information about a diamond rather than relying on the work of the jeweler and their eyes.  The fact that Fluorescence was an easy to understand specification on the grading report, made it easier for consumers to select diamonds based on fluorescence levels.  Even novice diamond shoppers quickly determined that if they wanted their diamond “pure” and free from imperfections, no fluorescence was better than Faint and it was best to avoid the Strong and Very Strong levels.

Over the years, it has become more difficult for retailers to sell diamonds with higher levels of fluorescence.  Even with prices significantly discounted, supplies were greater than consumption.  De Beers’ sightholders are required to accept all the rough diamond in their allotment and a certain proportion of those have stronger fluorescence.  The diamond cutters can choose what shape to cut out of the rough crystal, the size of finished gem and the quality of the proportions for the gem and to some extent the clarity by cutting away from inclusions.  However, they cannot change the color of the stone or its fluorescence.  The cutters must pass on the fluorescent diamonds to the wholesalers and retailers who then must attempt to get the consumer to buy them. 

The diamond industry now has a glut of fluorescent diamond on the wholesale market and on the retail shelves.  Consumers are becoming increasingly wary of purchasing diamonds with high levels of fluorescence so the pipeline is getting full of them.

Because the sourcing of fluorescence diamonds continues, the diamond industry has two recourses: 1) they can reduce prices to entice consumers, but this strengthens the perception that fluorescence is a negative and could result in a bigger glut, or 2) change the consumer’s perception of fluorescence. 

There seems little organized effort by the diamond industry to change the direction of the consumer’s negative perception of fluorescence.  With increasing knowledge, the consumer seems to be more discerning in their diamond shopping with respect to cut parameters, color, clarity, finish grades, and certainly fluorescence.  Time will only tell how the diamond industry will react to the glut of fluorescence that bloats inventories, raises inventory costs, and increases the financial strain of an industry already reeling from high interest rates and squeezed profit margins.

Red Diamond For Sale

The Argyle Diamond Mine in Australia is famous for being the world’s premier source of pink colored diamonds but it is also the premier source of the few red colored diamonds known to exist.  To say that there is only a small number of true natural red colored diamonds is no exaggeration.  The number diamonds certified as red is estimated to be less than twenty so it is rare that a red diamond is seen in public, let alone available for sale.

Bruce Robinson Jewellers in Brisbane, Australia recently purchased a red diamond at the 2006 Argyle Pink Diamond Tender, which featured 65 exceptional colored diamonds.  While the purchase prices for the diamonds at the tender are confidential, the red diamond is now for sale and expected to demand a very high price.

The 0.54-carat brilliant-cut red diamond, named “The Lady in Red” measures only 5.13 mm and is I1 in clarity meaning it has inclusions visible to the unaided eye.  The diamond was a 1.46-carat rough diamond crystal and was cut and polished to its current 0.54-carat weight.  In spite of its small size, this diamond will probably be price well over $2 million.

Red diamonds are extremely rare.  The last red diamond sold for almost $1 million twenty years ago.  Because of their rarity and beauty, several red diamonds are among the most famous diamonds.

Perhaps the most famous of the red colored diamonds is the Moussaieff Red, a 5.11-carat ruby-red diamond making it the largest red colored diamond in the world.  Discovered by a farmer in Brazil in the 1990s, the internally flawless 13.90-carat rough crystal was cut by William Goldberg Diamond Corporation. The rare red stone was later sold to the Moussaieff Jewelers for a rumored $8 million.

The second largest red diamond is simply known as Red Diamond and is an emerald cut weighing 5.05 carats.  Its current location is unknown.

Another famous diamond is the De Young Red, a 5.03-carat round brilliant that is the third largest red diamond in the world.  The De Young Red is on display at the Smithsonian Museum in Washington, DC.  At one time it was mistakenly sold as a red garnet because the stone’s subtle brown hue give it an appearance more like a garnet than a rare red colored diamond.

The Hancock (Halphen) Red is an extraordinary deep ruby red making it exceptional among the reds even though it is smaller in carat weight at 0.95-carats.  In the 19th century, Edwin Streeter, a diamond dealer in Paris bought the extraordinary red known as the Halphen Red.  The stone disappeared from public view and was never seen again.  Almost a century later, a collector in England purchased a 0.95-carat red diamond, The Hancock Red, named after its owner Warren Hancock.  While there is no proof the two diamonds are in fact the same, the rarity of red diamonds makes it likely they are the same.  The purplish-red diamond sold for $880,000 ($926,000 per carat) at Christie’s in 1987.

Time will only tell what will happen to “The Lady in Red” that is currently for sale in Brisbane.