The Kimberly process and its effect on ‘Blood’ diamonds

Conflict diamonds, also known as ‘blood’ diamonds, are rough diamonds used by rebel movements or their allies to finance armed conflicts aimed at undermining legitimate governments (http://www.kimberleyprocess.com).

The 2006 movie ‘blood diamonds’ talks about the use of diamonds by rebel movements in underdeveloped African countries to fund violence and crime. The Kimberly Process was initiated in 2002 to reduce these ‘blood’ diamonds back when in the 1990’s ‘blood’ diamonds accounted for about 15% of the global diamond production. Currently through the enforcement of 49 members throughout 75 countries, 99.8% of the global diamond production is regarded as ‘conflict-free’.

The united countries under the Kimberly process have been able to control ‘blood’ diamonds by imposing extensive requirements on their members to ensure the origin of diamonds to be ‘conflict-free’. With this certification it has become increasingly difficult to export diamonds out of Africa to move them out of the ‘black’ market. Earlier without this requirement diamonds could have been easily exported out. Diamonds therefore drove a large financial incentive for people and groups to exchange interests with diamonds.

A small piece of diamond weight a few grams could be worth thousands of dollars. Small rebel groups could gain power by enslaving people, mining diamonds, selling these diamonds, purchasing more arms and in turn gaining more power. In a way, diamonds and drugs could be used to spread cruelty amongst countries that didn’t have the financial strength to fight such rebel groups.

Currently, diamond mining companies and local government are working together. Both parties are have mutual interest to stop ‘conflict-diamonds’. ‘Conflict-diamonds’ create unstable pricing and theft at diamond mining sites. Local governments need to stop the use of diamonds as a means for rebel groups to quickly gain power.

Rest assure that everyone is trying to prevent the use of diamonds in war and crime. You don’t have to worry that the engagement ring that you got had caused the death of innocent people. If that were the case, everyone should stop drinking water as well.

Actually the diamond business has created a lot of jobs and financial stability for many people that would be without. Tomorrow I would like to talk about beneficiation and the good the diamond business has brought to these impoverished African countries.

Additional information about the Kimberly Process is available at their website: http://www.kimberleyprocess.com/.

Smuggling of diamonds

After the movie “Blood Diamonds” the social, media, and moral awareness of “conflict” diamonds has become a topic of casual conversation. Now when I meet new people, I try to avoid the question of “what do you?”. I usually lie when I know I’ll never see that person again. I’ve told people I’m an accountant, a school teacher, a student, unemployed, and even a belly dancer once. I’m afraid that if I tell them I’m in the jewelry industry, they will follow up with a quirky question like: “Do you sell Blood diamonds?” Obviously, I get annoyed. And “No, I don’t sell blood diamonds” and no it’s not funny.

There’s much more to the smuggling of diamonds that wasn’t covered in this mainstream Hollywood movie. In the next few days I want to scratch the surface of this elusive topic. I will talk about beneficiation, the Kimberly process, human carriers, politics, ethics, drugs, “black” money, tax evasion and how all this relates to the smuggling of diamonds.

I hope I will help to clear some of the misconceptions associated with diamond dealers being of morally questionable standards.

The high cost of trade shows during economic recessions

The GJX trade show just ended on February 7th in Tuscan, Arizona. My friends just emailed me today that there was a good amount of traffic of people this year. This was the first time in 13 years that I did not participate in the show. Last year there was a petition passed around amongst the show exhibitors to request for a temporary reduction in the booth expense due to the economic recession. After gathering a large number of exhibitors, we had a meeting with the show organizers. I was the only female present at the meeting. I voiced my opinion that other shows like the Bangkok Gems and Jewelry show had also offered a temporary 20% reduced in the booth price due to the current economic condition. We all had a very bad year at the show.

To make the long story short, we did not get a price reduction. I wasn’t feeling the necessity of attending the show the following year since the number of people looking to purchase rough stones in Tuscan has reduced over the years. The business has shifted predominately to Asia: Thailand, China and India. We did the show mostly to advertise and meet new potential clients. I just wasn’t feeling the need to lug kilos of the inventory around the world to advertise in an upcoming frail year.

When I did participate in the show I use to joke around with the other exhibitors that only 2 people make money at trade shows: 1) the food/coffee stalls and 2) the show organizers. Every year it’s getting more and more expensive to participate in these shows. Our two booths at GJX would end up costing us $15,000 with a very minimal set up. You also have to dedicate 2 weeks of your time for the 6 day show and about 1-2 weeks of preparation before the show. People don’t realize how much time and effort goes into each of these trade shows. A weak economic year ruins all the hard work you put into preparing for the show, but we live for the good years.

Cell phone, the social crutch

This past weekend I had dinner with a friend. While we were sitting there I noticed that he had a tendency to check his blackberry every few minutes to respond to emails and texts. I didn’t mind, but every time he reached for his blackberry, I felt I should reach for my Iphone. What was I suppose to do in that awkward silence? Has checking our emails over our phones become the equivalent of smoking? Are our smart phones our social crutch? If it was 1950, maybe I would have lit a cigarette as my dinner mate read a note handed to him by a waiter in a black suit. Instead now, I just slid open my Iphone and responded to a text I had gotten earlier.

I guess I’m old fashioned in a way that when I’m spending time with someone I don’t try to do other things. As a jeweler, we come to see the world in a materialistic way. Stone, designs, jewelry all have a price and the more you want them, the more they are worth. As a jeweler, you’re surrounded with all the beautiful things you can buy. But if you take a step back you realize that there are things you can’t ever buy. There is one thing that is the rarest and most priceless-more priceless than the largest blue diamond or the longest yacht. It’s your time.

Funny thing is, none of us know how much of it we have. We work for years, build houses, and plan for a future that might never happen. There’s no way around it either. Still, we shouldn’t try to go through the motions. Take time to enjoy a simple meal with a friend without worrying about what email you just received. I can just hear people clamoring to say “But, It’s for work!”. I know, I understand. Relax.

-Misha Gupta

The Vicious cycle of Expectations

After reading yesterday’s blog, my friend pointed out that we’ve become more “calculated” with love because we expect more from our relationships than people before us did. He says this is because the world expects more of us than it did from the people before us. This is the vicious cycle of expectations.

Globalization and the rapid transfer of information have made this world a very small place. The more we drive ourselves to be better educated, earn higher salaries, and multi-task additional things in our limited 24 hours, the further we come to expect the same from the people around us.

In this way, has jewelry become a reflection of who we are striving to become? Do we demand more perfect looking jewelry because we are reflecting our need to be more perfect? Market research would tend to show this trend.

What is your expectation from your jewelry? Did you ever think that you desire more “perfect” stone/jewelry because of the high expectations the world has from you?


www.caratexchange.com

Calculated Love

Has our love become too “calculated”? Like the 4 “C” used to grade diamonds (color, clarity, cut and carat) do we also grade our mates? Whatever happened to falling in love at first sight? Taking a risk, working hard, and making things work? Now we fill out long profiles on dating sites where we describe our height, eye color, occupation, income, educational degree, religion and everything else that would make us a graded report for an interested party. Like a GIA report mapping out the exact locations of our flaws we have managed to do the same for people.

A few years ago people still bought diamonds and jewelry based on the emotional attachment they felt for it. If they liked a design, they didn’t ask about the 4 “C’s” of the diamond, they figured out how much they liked it and if they could afford it. Now guys come shopping for engagement rings with excel spread sheets calculating the best combination of color, clarity, cut, and carat that they can afford. These men compare GIA reports instead of designs, prices instead of years of jeweler experience, free shipping instead of lit showrooms. Where is the “Love” in jewelry now?

Jewelry like finding a mate has become too calculated. Flawed stones, like people are also beautiful. Take the time to look at a jewelry piece and give different people a try. Maybe the inclusion on the stone makes the stone more unusual. Maybe perfection is unnatural. Is it too much to love something for the way it is and how it makes you feel? Reports might tell you how to price something, but don’t let them tell you have to value pieces. Good luck on your search for perfection in this beautifully imperfect world!

www.caratexchange.com

Valentines Day and Jewelry, (part 2)

Dear Men,

Do you get nervous walking by the jewelry counters at a department store? Is it easier to buy online without the intimidation of not knowing what you’re buying and wondering if you can afford it? Jewelry can be a stressful article to purchase, but it’s something many men will grow into getting better at. Take the time to educate yourself; a man who knows about jewelry is a turn on for many women.

So what is the appropriate jewelry gift for the special woman in your life? There are 3 main things to consider: 1) your budget 2) your relationship status and 3) your girl’s age. Firstly, have a clear idea of how much you’re willing to spend for St. Valentines’ Day. It’s a fact that like most luxury products, there is no limit to how much you can spend, so set your limits first. It doesn’t have to be an exact price like $199, but something like $100-150. This will make it easier to search and finalize an item. Your income also comes into play here. Obviously, the more you make the more you can spend. If you got a large bonus this December, try to shower your girl with a special gift. It shows that you’re willing to share your life’s success with her. However, if you’re tight on your cash, don’t be afraid to get a smaller gift.

Secondly, it’s important how long you’ve known your girl: if you’re dating, engaged, married, or just friends. If you’re expecting or planning for a baby, it might be wise to spend less. If you’ve just met this girl, you might want to spend less to avoid an awkward silence of- “No, you shouldn’t have” as she hands you a gift card. Men generally spend more on a girl when they realize that they want to marry them or after years of being married. The worst thing you can do is get a diamond ring for a girlfriend who either wants an engagement ring or thinks it too soon for you to give such a gift. My suggestion to avoid all diamond rings until you are engaged. Pendants, earrings, bracelets are better gifts.

Finally, the gift you get depends on the age of the female. Generally, the younger the girl the less jewelry savvy she will be. At a ripe age of 21 she might enjoy a simple silver pendant; at the age of 32 she might want diamond studs; and at the age of 48 she might expect a rare Alexandrite stone ring.

A quick trick to save some money is not to celebrate Valentines’ day on February 14. Fix a date with your girl after the 14, maybe the 15 or 16. This will make it easier to get a table at a restaurant, candies will be at 50% off at the local drug stores, and all the heart jewelry will be out of the showcases. Fight back and outsmart the corporate moguls. If you’re short on time or intimidated by the jewelry sales persons, shop on-line. Caratexchange.com has some great jewelry at wholesale prices. Shopping on Carat Exchange will allow you to quickly refine your search for your budget. Plus you’ll get to compare jewelry from various verified vendors all under one roof. The best part is if your girl doesn’t like the jewelry piece you picked out, you can always return back in 30 days for store credit! Attached are some pictures of jewelry you can purchase from $85- $3,650 (available on www.caratexchange.com).

Remember at the end of the day, it’s all about the thought be it big or small. Jewelry is all about the packaging and delivery. No matter what you spend on the item, find a beautiful box for it, write a nice card, look into her eyes….give it to her….wait for her to open it….and then help her put it on. Priceless.

-Misha Gupta.
www.caratexchange.com