Archive for 2007

Clarity is an important aspect of a diamond, and it is important to know how to grade the clarity of a diamond before you buy one. It is actually quite easy to learn how to grade the clarity of a diamond. There are basically two things that you must understand: Diamonds with visual inclusions and blemishes, and those that are ‘eye clean’ meaning that there are no inclusions or blemishes that can be seen with the naked eye. From there, the clarity of a diamond is further broken down
into subcategories. Many people mistakenly think that diamond
clarity refers to how clear it is. This isn’t so. Clarity actually refers to the internal and external imperfections of the diamond. The best diamonds, of course get a grade of FL or IF – Flawless or Internally Flawless – meaning that it is perfect. A grade of I-1, I-2 or I-3 means that the diamond is imperfect, with a grade of I-3 being the worst.Other grades are VVS1 and VVS2, which means that the diamond isvery, very slightly imperfect; VS1 and VS2, meaning the diamond is very slightly imperfect; SI-1 and SI-2, which means that the diamond is slightly imperfect.

Diamonds have been treasured as gemstones since their use as religious icons in India at least 2,500 years ago. Their industrial usage in drill bits and engraving tools also dates to early human history. Popularity of diamonds has risen since the 19th century because of increased supply, improved cutting, polishing techniques, and growth in the world economy. Diamonds are not normally used as a mainline store of value during times of crisis, due to their lack of fungibility and low liquidity. However, they may still be useful during times of hyperinflation.

Approximately 20% of mined diamonds are used in jewelry and 80% for industrial uses (such as lasers, drill bits and surgical equipment).

Chemical vapor deposition is now used to produce cultured diamonds which, unlike diamond simulants, require very close inspection to distinguish them from natural diamonds.

Methods of investing in diamonds

• Polished diamonds

• Cut and polished diamonds.

• Cut and polished diamonds.

Polished and rough diamonds lack some of the desirable attributes of investment vehicles, including liquidity, homogeneity and fungibility. Grading and certification by recognised laboratories goes some way to redressing this. Weight and cutting proportions are parameters which can be precisely measured. Colour and clarity grades are parameters which need to be determined by gemologists.

The increasing quality and size, and decreasing price, of synthetic diamonds also presents a threat to the value of polished diamonds as a long-term investment. The possibility of low-cost ultra-high-quality diamonds becoming available in industrial quantities at some time in the future is not an encouraging prospect for long-term investors in diamonds.
A cautionary example of such a price fall caused by introduction of a new simulant strongly undermining the prices of a natural gem was the permanent fall in natural pearl prices with the introduction of cultured pearls. The mechanism by which prices were affected is complex. In part because of the social acceptability of wearing cultured pearls to much of the market, customers migrated from the natural to the lower priced cultured product. This altered the supply and demand situation for natural pearls and perhaps the overall prestige of pearls in general was lowered. Where synthetic stones are less socially acceptable to the market for the natural version, arguably as with synthetic corundums where the two markets, natural and synthetic are mostly separate, the prestige of the natural stones has been, with effort, retained. Thus increased availability and lowered prices of synthetics may or may not have major implications for the future price of natural diamonds.

There are several factors contributing to low liquidity of diamonds. One of the main is the lack of terminal market. Most commodities have terminal markets, and some form of commodities exchange, clearing house, and central storage facilities. This does not exist for diamonds. Diamonds are also subject to value added tax in the UK, EU, and sales tax in most developed countries, therefore reducing their effectiveness as an investment medium. Most diamonds are sold through retail stores at very high profit margins. This is due to high overhead costs of operating a jewelry retail store.

A mining company has found new diamond resources in Brazil.

Sao Luis Mining reported the findings from its latest project in the Brazilian Joint Venture test mining scheme, Property 117.

Jack Lake, president and board chairman of Sao Luis Mining, said that the company expected similar results for Property 117 to a previous project the company undertook in the same area, Property 231.

“A geological report submitted to the department of national mineral production in 2005 defined a surface resource of 12,695,000 carats,” he said.

Do you know who is Saddam Hussein? He is a well-known personality and was dictator of Iraq from 1979 until 2003, when his regime was overthrown by a United States-led invasion. As we know, he likes jewelry accessories specially expensive watch , pen and sunglasses. It is Saddam Hussein, bling accessories. As told by Haitham Wihaib’s. The belongings of Saddam Hussein are now set for auction.

Wihaib disclosed that Saddam’s items put on sale viz. a custom-made gold and diamond Rolex (£100,000), Dior sunglasses (£6,000) and also a Cartier pen (£2,500) that was used to sign death warrants by Saddam were once owned by the renowned Iraqi tyrant. Wihaib is hopeful to generate sales of £350,000 ($7, 14,675) from this auction and contribute the same towards Iraqi schools.