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Jewelry Education by Cos Altobelli Cos Altobelli is a third generation jeweler and president of Altobelli Jewelers in North Hollywood, where his store has been located for 57 years. His specialty is creating one-of-a-kind custom handmade jewelry in platinum and gold. He holds a graduate degree from the Gemological Institute of America and the title of Certified Gemologist Appraiser, is the author of three appraisal books, and has appeared on “PrimeTime Live” several times. Mr. Altobelli can be reached at (818) 763-5151. Click on any item to learn more from Mr. Altobelli about these topics. |
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ALEXANDRITE-
Alternate birthstone for June April 29, 1830: According to legend, alexandrite was discovered in the Ural Mountains of Russia on the 12th birthday of Crown Prince Alexander, for whom it was named (later Czar Alexander II). A color-change variety of chrysoberyl, it is prized for its change of shades of green in daylight, to shades of red in incandescent light. The stone’s rarity, combined with its auspicious discovery date, made alexandrite a favorite among the Russian aristocracy. The Ural Mountains are no longer a major source; the most important sources today are Brazil, Sri Lanka, Tanzania, Madagascar, and India. The stones from India are many times oriented in the wrong direction. To preserve weight from the original crystal, they cut them perpendicularly, so the intensity of color and the change of color is more beautiful looking through the girdle (side of the stone) rather than through table (top of the stone). These stones will cost far less than their counterparts. Very fine quality stones can cost from $5,000 to $10,000 or more per carat, depending upon size and the degree of color change.
“FOREVER AMBER”- THE GOLDEN GEM OF THE AGES This fossilized resin of prehistoric trees was formed 30 to 50 million years ago. It is recovered from the stratified layers of marine sediments turned to sedimentary rocks. Trees wounded by fires would produce healing resin to bandage the wounds. The resin would spill down to the ground picking up everything in its path from botanical flora to tiny animals. Then after burial by sediments and the passage of millions of years, the resin slowly fossilized. When studied today by paleozologists and paleobotanists, amber with inclusions yields a great deal about the evolution of some plants and small animals, such as ants. Also trapped were bubbles which contained gases that gave strong clues as to the earth’s atmosphere at the time the amber was formed. Most of it was found in the Baltic region. Amber goes as far back as 5000 B.C. It regained its popularity between 1895 and 1920, only second to diamond in U.S. imports at that time. It experienced a resurgence recently with the advent of “Jurassic Park.”
Amethyst- Birthstone of February According to biblical lore, the deep, violet-hued Amethyst means perfection; and where beauty is concerned, this jewel may truly be called ideal for many reasons. It offers the qualities of transparency, lovely coloring and soft brilliance which brought it into popularity centuries before the Christian era. It was the third stone in the third row in the jeweled breastplate worn by Aaron, the high priest of the Hebrews, which contained twelve precious stones. In the New Testament, these stones became the foundation stones of the New Jerusalem described in Revelation. Each stone was identified with a prophet. From Egypt, where it had been known for centuries, the Amethyst was brought to Greece in the period just following the death of Alexander the Great. Amethyst, taken from the Greek word "amethustos" (meaning unaffected by drink), had a soaring reputation up until the 1800s. When the Roman Empire came into being, the Greeks, while no longer the masters, went on making beautiful jewelry. Roman women in particular prized Amethyst jewelry for they believed the Amethyst could insure their husbands' love. South American neighbors, Argentina, Bolivia, Brazil and Uruguay, are producing at least 85% of the world's most popular affordably priced gem. Nevertheless, it is Russia and Africa that supply the finest quality stones. These stones have a regal appearance, containing a reddish overtone, which gives the appearance of a king's velvet cape. Amethyst is a precious variety of crystalline quartz. It is quite durable and can be worn without worry of easy damage or abrasion.
WHY DO I NEED AN APPRAISAL? 1. Insurance - Provides information which will assure a replacement of equal utility, quality and value. 2. Estate - For tax liability purposes, when the fair market value of the jewelry exceeds $3,000.00. 3. Comparison - Used to verify the identity and quality claimed by a third party or to verify the value. 4. Divorce Settlement - An appraisal for division of property in which fair market value is used. 5. Estimate to Replace (Hypothetical) – To determine values of items that were lost or stolen. 6. Damage - Indicates the weight loss resulting from re-cutting a damaged stone and its loss of value. 7. Collateral - Performed for a party wishing to use the jewelry or gemstones for obtaining a loan, etc. 8. Donation and Gift - for tax deduction purposes based on IRS regulations. 9. Barter - Two or more parties exchanging one commodity for another. 10. Customs - For proof that an item was not purchased in a foreign country upon return. 11. Casualty Loss – For an income tax deduction for lost and damaged items NOT covered by insurance. 12. Conservatorship – To determine the value of the estate when an individual becomes incapacitated. 13. Distribution of Property - Used with a will. Precludes heirs from squabbling over the estate. 14. Proof of Ownership - Provides positive identification when items have been recovered. 15. Investment – Provides a prospective appreciation analysis. Any of these should be performed by a certified appraisal professional, not just a gemologist. Someone who knows federal and state laws and their requirements.
Appraise Double NO FREE LUNCHES! Not limited to diamonds, but you have probably seen TV commercials and newspaper ads that claim that the diamond you buy from them will be appraised for at least twice the price! Do you really believe this? Many of these establishments base their selling philosophy on the premise that most people that buy these diamonds, will not have them appraised thereafter. Some may do so, to find out to their dismay, they are not worth twice the price and consequently, will do nothing about it, but never return for additional purchases.. The remaining few that have them appraised, experiencing the same results, will take them back. The vendor will gladly give them a refund if they wish. That small percentage will have little effect on the overall scheme of things. In many of these scenarios, the purchaser will have received a value commensurate with the purchase price. But, hardly the bargain it was purported to be. More times than not, the merchandise is also of inferior quality and misrepresented there as well.
AQUAMARINE- MARCH BIRTHSTONE Aquamarine derived its name from the rich greenish-blue color of seawater, which seems to capture in its transparent depths something of the vitality and surging spirit of the ocean. It is a talisman long believed to impart courage to the wearer, to cure laziness and to quicken the intellect. Greek goldsmiths of the period, before the conquest of Rome, used Aquamarines in their jewelry. The gemstones came to them from the Far East, traveling from across the Arabian sands and then to Hellenic ports on the Mediterranean Sea. Aquamarine is a variety of Beryl, belonging to the same family of gems as the Emerald. It is found in such widely separated parts of the world as Brazil, Madagascar, Russia and the United States. With the advent of blue Topaz, Aquamarine lost its importance due to the vast difference in price. However, blue Topaz cannot equal the fine greenish-blue color in Aquamarine. Blue Topaz also is readily damaged and abraded, whereas Aquamarine is a very durable and practical stone. Men, most often, will prefer the alternate birthstone for March, Bloodstone, a variety of Quartz, and a gem which offers a sharp contrast in appearance. Medieval folk believed that the Bloodstone received its coloring from Christ's own blood falling upon a green stone at the foot of the Cross. Legend ascribes the Bloodstone with the power to impart wisdom to the wearer. Nineteenth century lapidaries used Bloodstone for carved objects, including family crests, signet rings and seals.
Auctions can be exciting and rewarding. However, there are a few basic rules that need to be adhered to or the experience can turn out to be very disappointing and costly. To begin with, unless you have a reputable contact at the auction house that is knowledgeable and can give you the critical information that makes it a winner or a loser, it would be imperative to physically see the item. Looking at a photo in the auction catalog does not divulge if there is damage that has been expertly concealed, or a marriage of two or more pieces, i.e., tassels or chains that have been added that were never a part of the original piece, etc. And, more importantly, is it authentic or a clever reproduction? Is there authentication with documentation, expert opinion or is it a guess? Presale estimates of what the item can be expected to bring, can be very high or very low. This can be the result of an inexperienced appraiser employed by the auction house or they have used an appraisal from an independent. This scenario has occurred with items in estates of some notable celebrities in which the pieces sold for prices unbelievably lower than anticipated. So, rather than chancing a phone bid, it would be extremely important for you to be there in person. Notable diamonds should have gemological reports from either the Gemological Institute of America or the American Gem Society. Other laboratories have been known to be somewhat liberal in their grading results and not reliable. Gemstones and gem materials may have been enhanced to improve their appearance by different treatments. There should be authentication as to whether they are natural and untreated.
HAVE BIG KNUCKLES? Unfortunately, many of you are plagued with arthritic knuckles and have a hard time getting rings on and off. And once we get them on, they swing around freely and the top of the ring usually winds up underneath the finger! There are devices that can be installed in the ring that will reduce the problem considerably, not 100%, but will take care of most of it. First of all, there is a temporary guard that is simply clamped on. Not very pretty, but inexpensive and does the trick. For something more attractive and permanent in which the knuckle isn’t huge, beads or cleats can be soldered on the inside bottom of the ring that will prevent the ring from swaying. For a more serious problem, a butterfly spring can be soldered on the inside bottom that will move outward going over the knuckle and then press back against the finger after it slides on. This works quite well. For a serious problem, hinged shanks can be installed. A bit more expensive, but they can really do the job. For those of you that struggle with the ring sliding on and off with ease, use Windex to lubricate the knuckle. The liquid will dry and not leave a film like it does when using hand lotion, which will accumulate and all the sparkle is gone!
GEMSTSONE CARVINGS There is so much more in determining value of a carving than just the material itself. To begin with, there is the artistry that may have been employed in the use of the material, perhaps swirls of color integrated into the design and its overall attractiveness. There is added value if more than one material has been used, maybe the eyes in an animal or beak of a bird or something like watermelon tourmaline in an eagle in which the red has been used as the head, the white as the collar and the green as the body. A very important element would be the amount of detail and quality of the polish in the piece. Although not as important, the base may be the matrix of the gem material and consideration to its beauty and the size ratio of it to the carving itself. Age may not be of significance, particularly in ivory unless there is provenance, i.e., documented authentication of it being of the Ming Dynasty. Most of the finest gem carvings in the world have been created in Idar-Oberstein, Germany. In recent times, the Brazilians have improved their quality to compete with the Germans and are far less expensive. Hong Kong is a strong contributor to the carving arena as well. The Italians in Naples have a renowned stature in the carving of coral and cameos. The more important cameos are those made from hard gemstones, which are considerably more valuable.
CORAL- RED HOT! Organic in nature, the finest material comes from the Italian Mediterranean. Some of the finest craftsman in the world fashion and carve coral in Torre del Greco, a seaport in Naples. The most valuable is the “blood” red variety. Mythologists in Greece and Rome theorized that the coral was first formed from the dripping blood of Medusa’s decapitated head! A very fine quality 18” strand of 8 to 9mm beads can be as much as $6,000. The next most sought after is the “Angel Skin” variety which possesses a beautiful pastel hue. Highly prized in ancient India, Persia and Rome, it has been used in jewelry for over 8,000 years. Beware, however, like many other gems and gem materials, white coral is being dyed in Hong Kong and Taiwan to imitate the ox-blood variety. Also, because coral is pure calcium carbonate, it is sensitive to detergents and cosmetics, even body acid can have a negative effect on it. You should clean them periodically in a mild soapy solution.
DIAMOND- THE APRIL BIRTHSTONE Diamond is the most popular of all gemstones because of its great hardness and unique brilliance and fire. They usually occur in nature as eight-sided crystals known as octahedrons (eight faces). To best use their natural form and unique optical properties, they are most commonly fashioned into the 58-facet cut known as the modern round brilliant. It is thought that diamond mining as an industry originated in India, sometime between 800 and 600 B.C. The oldest definite evidence of the use of diamond as an ornament is a Greek statue (now in the British Museum) which has two small diamonds for eyes, and is dated by experts at the 5th Century B.C. Some scholars think that the campaigns of Alexander the Great in the 4th Century B.C. may have quickened commerce with the Orient, and a few diamonds found their way to Europe in the next 400 years. But at the time of Christ, the diamond was still a rarity. Pliny the elder, the great Roman philosopher of the 1st Century A.D., describes six kinds of diamonds, commenting on their unspeakable hardness, and saying that they were so rare as to be owned "only by kings." He goes on to say that the diamond would withstand the test of being pounded with a hammer on an anvil, without breaking; and that the only way to soften one was to soak it in goat's blood. These two quaint, incorrect ideas persisted for many years afterward. The custom of wearing a diamond as a personal adornment, was introduced in Europe about the year 1430. A lady of the French court, one Agnes Sorel, is usually given credit for the idea. Following her leadership, fashionable women throughout the continent created a demand for diamonds, and the 15th century marked the beginning of a "boom" in the Indian mines which lasted over 300 years.
SWITCH YOUR DIAMOND? The fear that most women face is having an important diamond switched by some unscrupulous jeweler, and most of time it has to do with sentiment. Possibly, the original engagement ring or a family heirloom. Most jewelers are honest and ethical merchants. Some may charge more money than others (sometimes a lot more!), but morally speaking, switching doesn’t happen with great frequency- but it can happen. To safeguard you from having this experience, find a reputable appraiser who can give you a very definitive description of your diamonds. This should include the shape, millimeter dimensions, carat weight, color, clarity and cutting grades. The critical element is to have a plotted diagram- a blueprint of the diamond. This will show the internal and external characteristics of the stone- inclusions (size, configuration and location), blemishes, damage and any peculiarities. Having all of this will preclude anyone from possibly substituting your diamond with another. In addition, should the diamond ever be stolen and recovered by an enforcement agency, you’ll be able to claim your diamond with having this absolute identification, otherwise, it will be auctioned off at their next sale. If you choose not to obtain an appraisal, at least take a close-up photo of all of your valuables. An American Gem Society Certified Gemologist or Certified Gemologist Appraiser is prepared and capable of handling this for you.
The 4C's is the method used for rating diamonds and the more you know about them, the better off you'll be when you make your next diamond purchase. Cut The brilliance of your diamond comes from the way it reflects light from its many faceted surfaces and refraction of light from within, a result of symmetry. The better the proportions, the greater the dispersion and fire. Its value and beauty comes from reflecting and refracting the maximum amount of light possible. This feature is not addressed by most diamond merchants, yet it can be as much of the third of the value. Color A diamond's value increases dramatically with each level of color quality. Although many diamonds are or appear to be colorless, most contain tints of yellow or brown in varying degrees.. Clarity With powerful magnification, you can find microscopic crystals or minerals (called "inclusions") inside almost every diamond, giving each diamond its own unique personality. The size and number of inclusions affect the value of the diamond, especially if they are eye-visible. Even though minute inclusions can reduce the cost of a diamond, they do not mar its beauty. Carat Weight Size is the most visible factor that determines the value of a diamond, simply because larger stones are rarer than smaller ones. A diamond's size is established by measuring its weight in "carats". Each carat contains 100 "points" so a diamond weighing 150 points would be described as 1.50 carats.
Buying diamonds is probably one of the blinder purchases a person can make, because a consumer cannot really discern what he or she is getting just by looking at it. That's why the credentials, expertise and integrity of your jeweler are so important. Most retail establishments, commonly in the business of buying and selling diamonds will give you the weight, color and clarity of a diamond, but do not offer any information concerning the symmetry and polish. This last element is critically important, since a diamond will appear "lifeless" and have little brilliance and dispersion without proper proportions and finish. A diamond's importance should be placed more on its ability to show "fire" than most of its' colorless counterparts. It actually has as much influence on the price and value of a diamond as do the color and clarity. In purchasing a diamond from anyone, it would be wise to ask for a document which explains what the grades are, including color, clarity, cut and the weight. It should also have a statement which allows for a FULL refund in the event a recognized appraiser or laboratory determines that the diamond is not what it is purported to be. Many retail establishments will "exchange" a diamond if there is a controversy, but will not make a refund. This creates a problem in that you may never get a diamond that is what it's supposed to be!
EMERALD- BIRTHSTONE FOR MAY Symbol of fertility, rebirth and youth. Believed by the ancients to empower the owner with foresight into the future, Emerald is regarded as an amulet for good fortune. The Emerald was among the dearest treasures of the gem markets of Babylon, and today- nearly 6,000 years later- this lovely stone remains one of the most valuable objects in the world. South America's rich bounty of Emeralds was discovered by 16th Century Spanish explorers who found large Emeralds in the possession of the Aztecs and Incas. Cleopatra, Queen of Egypt, wore wonderful Emeralds that came from her own Emerald mine in Upper Egypt. Nero, too, had a famous Emerald through which he was said to have watched the gladiators. In the days of the Russian Czars, Emeralds were the most prized possession of the Russian Crown Jewels. Emerald is a variety of the mineral Beryl and is distinguished from other Beryls by its color. Unlike many other precious stones, it appears the same color in artificial light as in sunlight. Value is determined by color, by the lack of natural inclusions and by size. Flawless emeralds (to the unaided eye) are so rare and valuable as to be seldom seen even in a jewelry store. However, those of moderate size with slight inclusions, still possess all the beauty of color that is the Emerald's principal lure. A knowledgeable jeweler/gemologist should always be used when any attention is needed for cleaning and repairs.
THE LEGEND OF THE ENGAGEMENT RING Long ago, in ancient Egypt, a Pharaoh fell in love with a beautiful young princess. Because of her youth, the princess's father refused consent to their marriage. The Pharaoh, being a wise man, desired to have the father's blessing, and so agreed to wait until the princess was of age. His love for her grew daily and he longed for some way to show his devotion to her while he was waiting for their marriage. So he called in the royal jewelers and told them to search the land for the most precious stone in existence. This, the Pharaoh had mounted on a ring of gold and took it to his loved one. As he slipped the ring on her finger, he told her, "Until I can place a wedding band on your finger and claim you for my bride, wear this ring as a reminder of my devotion. Just as the gem is priceless, so is my love for you.” And down through the ages, the engagement ring has served as a pledge of true love and as a symbol to the rest of the world that two people have chosen to spend their lives together. From the writings of Amenophis 11: Circa 3300 B.C.
EQUITABLE DISTRIBUTION- DON’T FIGHT! It is not uncommon to see many families fight bitterly over the estate, even to the point where they will never speak to one another again! This can be prevented if you plan ahead and prepare a will that specifically designates who will get what. This will require the services of a professional appraiser who can provide you with the Fair Market Value of the items, not a retail replacement document used for obtaining insurance. FMV takes into consideration economic and functional obsolescence. Are the pieces no longer the “mode of the day”, or are they in need of major repair? With this information, you will be able to make fair and intelligent decisions and eliminate the bloody aftermath! One of the problems can be having only one large diamond and two daughters. In some instances, you may want to direct the executor/trustee to dispose of all or some of the items on a consignment basis and divide the money to the heirs. Or, you may want to donate the estate to a worthy charity.
Usually refers to pre-owned jewelry and not necessarily antique and period pieces. Since they are not new, it should alert you to the fact that they may not be in good condition. Inspect them with a keen eye, under magnification if available, to detect any damage or peculiarities. Just because they are used, it shouldn’t preclude the vendor from giving some sort of guarantee, particularly with timepieces. Ask the seller if you should be aware of anything, particularly with the security of the stones that are set in the piece, or does it require any special handling or cleaning technique. Sometimes the piece may be sold “as is”, due to its condition. It would be wise to question why this is the case. Because they are used, the items would generally be less costly than their new counterparts. A rule of thumb would be at least 20% less, depending upon condition and rarity. However, it could be that they are antiques and consequently be worth more than a similar new piece of jewelry. Provenance plays a major role in added value should the item be of historical importance, i.e., a brooch worn by Martha Washington and shows it being worn in a portrait of her. As would be the case with buying new jewelry, be sure the merchant is knowledgeable and trustworthy. Check with the Better Business Bureau or Consumer Protection Agency in your area to see if they have a track record of complaints. American Gem Society Jewelers would be an excellent choice. They are an elite group of gemologically trained professional jewelers who subscribe to a strict code of ethics and standards. They are located in cities throughout the United States and Canada.
ESTATE SETTLEMENT An appraisal for tax purposes must be done using fair market value by IRS regulations. In most cases, this is substantially lower than it would be for insurance replacement. It is very important to choose an appraiser with professional qualifications to perform this task since it can save tax and avoid any penalties. For value purposes, the estate has the option to choose the date of death or the alternate date (six months later) to determine the tax liability. In the event there is a sizable difference between the two dates, the date in which lowest values occur can be used. This was critical during the late 70s and early 80s when the diamond and metal markets exploded and then came crashing back down. Whichever date is chosen, it would apply to all of the property in the estate. The executor should determine that if, for example, the value of the jewelry has gone up and the stocks and bonds have gone down, which of the two dates would be beneficial to use as the valuation date. In the event some of the items have to be sold from the estate to settle court costs, attorney’s fees or taxes, there can be some tax relief. For example, if a diamond ring had a fair market value of $20,000 and was sold by the estate for $10,000, the value of the estate can be reduced by the difference and consequently lower the taxes. This can be done within three years of settling the estate with the IRS. The proviso is that the item must be sold to someone commonly in the business of buying and selling similar items. It can’t be sold to a relative, friend, neighbor, etc. The fair market value for all of the jewelry in the estate must exceed $5,000 before IRS regulations come into affect.
THE EVIL EYE! Have you have ever wondered what the significance is of the “Corno” (twisted tapering horn) or the “Malocchio” (clenched hand with index and little fingers pointing outward) or “La Fica” (clenched fist with thumb protruding through the index and middle fingers)? Well, to begin with, they originated in medieval Italy. Typically made in gold, they are usually worn as pendants or charms. La Fica, is frequently made out of opaque colored gemstones, usually black onyx or ivory. They vary in length, from ¾” to 1 ½” as a rule. The story goes that they are given to someone for the purpose of protecting them against evil spirits, or to bring them good luck. Traditionally, they are not to be purchased for one’s self , but must be given to you by someone else to have the desired effect. So, if you see anyone wearing one, you’ll know that it was given by a caring and loving person. Most of the time, they are exchanged between close male friends. Although not inappropriate, it is uncommon to see one being worn by a member of the female species!
FOREIGN PURCHASES- SHOULD I BUY? Buying gems and jewelry in your own backyard is difficult enough without knowing a reputable jeweler. Going abroad and buying compounds your problem three-fold. To begin with, what if after returning home you find out what you purchased is not worth anywhere near what you paid for it? Can you return it for credit or exchange? In most cases, that’s not possible or practical. The customs problem enters into the picture. Is there going to be duty on it going each way? What if the gem has been treated or enhanced in some manner to improve its appearance and they haven’t disclosed that it is not natural? You still have the same problem about returning it. They may give you a certificate authenticating origin, being natural and untreated, etc., but will they honor the certificate? Good luck! Is there a Better Business Bureau or Consumers Affairs Agency there? I doubt it. One possible safeguard is paying with a check or credit card, provided you get home in time to challenge it. Unless a very reliable source has recommended someone beyond reproach, I would advise your purchases to be monetarily insignificant. An inexpensive curio, perhaps, to give you fond memories of the trip is what I would advise. Bon Voyage!
GARNET - BIRTHSTONE OF JANUARY
This stone is not just one gem, but an entire family of gems
found in almost every part of the world
and available in every color except
blue. As a birthstone, the Garnet
stands for constancy, true friendship
and fidelity, a fact which makes the
Garnet an especially appropriate gift
for one's family or friends.
The Hessonite, known as "the cinnamon
stone of Ceylon" (Sri Lanka), is a
handsome stone found in shades of golden
orange and cinnamon brown. A cameo of
this stone depicting the head of Christ
is in the gem collection of the American
Museum of Natural History. There are other Garnets, call Malaya and Spessartite, but remain as stones mostly sought by collectors.
A gemstone’s quality has three basic factors- beauty, durability and rarity. Beauty is first, color being 50% of its value, clarity 30% and cut 20%. Not often considered, good proportions, symmetry and polish, can result in a stone’s beauty being enhanced with brilliance and dispersion. A large percentage of colored gemstones are cut in India, notorious for retaining weight by leaving thick bottoms, consequently a dull looking stone. Those that are of fine quality are generally re-cut after exportation. Durability is second. Not that a stone need be indestructible, but that it will withstand ordinary wear. Rarity, although third, frequently determines price. Demand is based on rarity and fashion. Amber was once very fashionable- second most important import to USA. It lay dormant for decades until Gurasic Park! Tradition also affects a stone’s value- making it precious. It is taught to us through historic example. The book of exodus tells us that around 5000 BC, the Lord told the Israelites to make a breast plate for Aaron the High Priest. 12 stones with the names of the 12 tribes were inscribed on it, so that Aaron would bear their names before the Lord as a memorial. The original birthstone list is taken from this example. it was changed in 1937 with stones of greater popularity. In recent times, a couple of alternates have been added, Moonstone to join Pearl and Alexandrite in June and Tanzanite with Turquoise and Zircon in December.
GEMSTONES A gemstone’s quality has three basic factors- beauty, durability and rarity. Beauty is first, color being 50% of its value, clarity 30% and cut 20%. Not often considered, good proportions, symmetry and polish, can result in a stone’s beauty being enhanced with brilliance and dispersion. A large percentage of colored gemstones are cut in India, notorious for retaining weight by leaving thick bottoms, consequently a dull looking stone. Those that are of fine quality are generally re-cut after exportation. Durability is second. Not that a stone need be indestructible, but that it will withstand ordinary wear. Rarity, although third, frequently determines price. Demand is based on rarity and fashion. Amber was once very fashionable- second most important import to USA. It lay dormant for decades until Gurasic Park! Tradition also affects a stone’s value- making it precious. It is taught to us through historic example. The book of exodus tells us that around 5000 BC, the Lord told the Israelites to make a breast plate for Aaron the High Priest. 12 stones with the names of the 12 tribes were inscribed on it, so that Aaron would bear their names before the Lord as a memorial. The original birthstone list is taken from this example. it was changed in 1937 with stones of greater popularity. In recent times, a couple of alternates have been added, Moonstone to join Pearl and Alexandrite in June and Tanzanite with Turquoise and Zircon in December.
GOLD- the quintessential anticyclical asset. In comparison to other commodities, there is no significant correlation between returns on gold and changes in macroeconomic variables such as Gross Domestic Product, inflation and interest rates. Therefore, gold returns are less correlated with the returns on equity and bond indices than other commodities. As a result, gold as an investment asset fulfills two related fundamental functions, a safe haven in times of financial volatility and a risk minimization tool. A historical analysis of gold prices compared to the world’s equity markets reveals a clear inverse relationship between returns on equity markets and the gold price. Generally, as equity markets fall, gold prices rise. There is also a solid correlation between geopolitical and financial market instability and rising gold prices, as demonstrated in the lead-up to the Iraq war. The current market is strong and there are some indicators that predict even a higher market. But like the stock and bond markets, there will be an adjustment. I wish I was a clairvoyant and had “coraggio” to jump in and out at the appropriate time! GOLD. Really Gold? At Wholesale? How many times have you heard “I can get the same gold chain in the L.A. Jewelry Mart for 40% less!” Or, “I can get it for you wholesale!” For starters, many of the gold articles stated or stamped as being 18k or 14k are not! It is not uncommon to find these items at 20% to 40% less in gold content than they are purported to be. The Federal Trade Commission Guides require that the content must be within .003 of what it is supposed to be. For example, 14k gold is .583 per cent of 24k. The tolerance is not allowed to be less than .580. The result of under-karating can result in a dramatic change in price. A gold chain that is truly 14k and priced at $100, could be $60 if the gold content is 10K. If a merchant is caught doing so on just one or two occasions, they will merely get their “hand slapped” by the FTC and advised to discontinue this practice. This may happen for a short period of time before they’re back doing the same thing again. So much for “bargains!” With regard to “wholesale”, the word means a sale for resale in which there is no sales tax, and has nothing to do with what the typical cost of being sold from a distributor to a retail establishment. You may be getting a discount, but it is unlikely that you are getting the price paid by a retailer, particularly if the tax has been added to the sale. If you don’t have a resale license and you haven’t paid the tax, there is something fishy going on!
GUARANTEES- IN WRITING! When you buy an automobile, tires or a battery, it is customary and expected that you receive a document that spells out what your guarantee is. This will include a factory defect, length of time and/or how many miles Why would you not be given or ask for a guarantee when buying a diamond? Do you even get a bill of sale? If so, does it just say diamond ring and the price? It should say much more! Included should be the shape, color, clarity, cut and weight, defined in the terms of the Gemological Institute of America or the American Gem Society. It should also have a statement that if a credentialed appraiser, who is also a Graduate Gemologist, finds that the grading is less than purported to be, the merchant must make it right or you have the option of obtaining a full refund (not just a store credit). Most merchants may give you the weight, color and clarity of the diamond, but fail to tell you about the polish and symmetry and whether or not there is any notable fluorescence. These elements can significantly change the value to as much as one-third. If two merchants both offer a 1.00ct. round diamond, of H color and VS1 clarity (stated accurately), and the price disparity is substantially different between the them, guess what? They haven’t told you everything. As long as a diamond looks near colorless and you can’t see any inclusions with the unaided eye, that’s acceptable. But not a diamond that lacks life! If a diamond doesn’t possess the proper proportions to give maximum brilliance, scintillation and dispersion, you missed the purpose in having a diamond. You won’t get comments on color or clarity, but you will hear “Wow, does that sparkle!”
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THE HOPE DIAMOND This 45.52 carat dark blue diamond is undoubtedly one of the world’s most famous diamonds, with a history heavily veiled with superstition. The legend unfolds in 1642 in India, where Jean-Babtiste Tavernier, gem merchant, was shown a rough blue diamond that is believed to have weighed 112.50 carats. At that time, any diamond over 10 carats, by law, became the property of the local prince. Smuggled out of India, it was sold to Louis XIV by Tavernier in 1668. Louis XIV, cut it into a 67.50 pear shape. In 1792 the French jewels were stolen and the Hope showed up in London in 1830, having been recut to 45.52 carats, where it was sold to Henry Phillip Hope for $90,000. After being disposed of for financial hardships, it surfaced at a sheriff’s auction in England, where Sir Caspar Purdon-Clarke recognized it and returned it to the Hope estate. To satisfy lingering debts, it was sold to a New York jeweler who went bankrupt a few years later. The next owner was a French broker, Jacques Colot, who sold it to Prince Ivan Kanitovski, a Russian Prince. The next owner was an Egyptian merchant, Habib Bey, who died by drowning, but the Hope showed up next with a Greek broker, Simon Montharides, who sold it to Sultan Abdul Hamid II of the Ottoman Empire. In 1910, is was purchased by Pierre Cartier, who then sold it to Mrs. Evalyn McLean of the Washington Post. After her death, the Hope was purchased by Harry Winston, prominent international jeweler. In 1958, he donated it to the Smithsonian Institution.
INSURANCE PREMIUMS Most insurance policies charge for coverage based on a dollar amount per hundred dollars of coverage. Actuaries employ reference files that provide average costs of replacement for different levels of coverage on different kinds of items. Therefore, the premium is usually based upon the insurance company’s cost of replacement, and not on the appraised value. There are different types of insurance policies and coverage. A Full Value Replacement Policy will give you 100% of the appraised value if you decide to cash out, Under an Actual Cash Value policy, you will receive only the insurance company’s cost of replacement, as determined by the actuary at the time of loss. The FVR policy premium will be more than an ACV policy. Chubb, Traveler’s and Safeco are a few that offer the FVR policy. You should check into it. This may hold true with other personal property as well as jewelry.
Jade, “stone of heaven”, is not just one gemstone but two. One, called Nephrite, has been found throughout the world, but was especially prized by the ancient Chinese who called it Yu, meaning "precious stone of great beauty." The other Jade, a relative newcomer when compared to Nephrite, is called Jadeite. It has been mined in Myanmar (Burma) since the late 18th Century and is highly sought after for its intense green color although it, like Nephrite, comes in a range of colors. Much of the material is permanently dyed, and consequently, much less costly. More jadeite is available in China than anywhere else in the world, however, none is mined there. There are 15 Jade substitutes. The one most frequently encountered in carvings is Serpentine, quite soft in comparison and quite inexpensive. Unlike Jadeite & Nephrite, which are very tough, Serpentine is fragile and can almost be scratched with a fingernail. The most valuable of all Jadeite is lavender in color. True “Imperial” Jadeite, must be at least translucent, have an even body color (no mottling), no visible inclusions and green in color like “Prell” shampoo!
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