- Joined
- May 3, 2001
- Messages
- 7,516
Re: Would you pay more for a med or strong blue fluoro diamo
Garry,
I have very strong memories of fluorescence becoming a negative during the last year or two of the seventies, during the investment craze that ended suddenly in February of 1980 with the crash of silver, gold and diamond prices after the Feds increased the margin on silver contracts to 100% in order to stop the Hunt brothers from cornering the silver market.
In 1975 when I was studying at GIA I paid a premium for diamonds with fluorescence. by 1978 that was no longer true. I have no memory of when RAP started pricing fluorescence, but if it was not until 1993, then it was well after the price had changed.
That is what my foggy old memory banks are telling me and I will remember it always this way. Which is not to say I am not wrong, it is just how I remember what was a tumultuous time in the diamond markets.
Wink
Garry H (Cut Nut)|1395122088|3636249 said:Thanks for the great comments thus far.
The first main event that changed pricing was the FTC:
After the discovery of diamonds in South Africa in 1867 some mines were renowned for producing a percentage of high color diamonds that exhibited a bluish appearance in daylight as a result of their fluorescence. It came to be that these diamonds, especially those that were otherwise colorless, were termed ‘blue white’ and sold at a premium price. However, human nature being what it is, some marketers of diamonds indulged in “bracket creep” and began to call diamonds of lower colors “blue white” in order to achieve a higher selling price and more profit. This led the United States of America Federal Trade Commission (FTC) to ban the use of the term ‘blue white’ on March 18, 1938 with the following resolution 23.14, (Trade Practice Rules for the Wholesale Jewelry Industry, Rule No. 6, p4:
23.14 Misuse of the term “blue white.” ,
It is unfair or deceptive to use the term "blue white" or any representation of similar meaning to describe any diamond that under normal, north daylight or its equivalent shows any color or any trace of any color other than blue or bluish.
Interestingly under this definition there are diamonds that could still be legally described as blue white, however it seems that the intention of the legislation has been observed, and, if anything, there has been an over-reaction. The FTC also made an attempt to define the type of lighting that might cause a diamond to fluoresce and appear ‘blue or bluish’. The detail however did not include terms such as ‘shaded’ or ‘indirect sunlight’ or make any reference to the time of day or atmospheric conditions. The quality of published industry and gemological opinion about the type of natural light that diamond color ought to be judged or graded in, is poor and often contradictory, as can be noted in the following quotes.
THE NEXT BIG EVENT in my opinion, was in 1993 - and that seems to be when Rapaport began pricing fluoro:
‘KoreaGate’ In an interesting case study, prior to 1993, Korean retailers and consumers exhibited a preference and paid a premium for blue fluorescent diamonds. However a Korean current affairs TV program in 1993 accused local Korean grading laboratories of over-grading the color of fluorescent diamonds, suggesting for instance that “your G is really H”. Korean traders replaced many of the fluorescent diamonds they had sold earlier, becoming net sellers of fluorescent goods and buyers of non-fluorescent diamonds. This simultaneous dumping and demand of the different grades of goods seemingly contributed to an adjustment in the Rapaport Diamond Report price guide. A month or two later a chart appeared with price guides for blue fluorescent diamonds of different colors and clarities. This guide is still in place today, having had only some minor adjustments from time to time which presumably only reflect fluctuations in supply and demand.
So the pricing changed to be favorable for us fluoro lovers.
Of course I am not advocating that we lovers of it should pay more - its our little secret and we are, in my view, very lucky!
Garry,
I have very strong memories of fluorescence becoming a negative during the last year or two of the seventies, during the investment craze that ended suddenly in February of 1980 with the crash of silver, gold and diamond prices after the Feds increased the margin on silver contracts to 100% in order to stop the Hunt brothers from cornering the silver market.
In 1975 when I was studying at GIA I paid a premium for diamonds with fluorescence. by 1978 that was no longer true. I have no memory of when RAP started pricing fluorescence, but if it was not until 1993, then it was well after the price had changed.
That is what my foggy old memory banks are telling me and I will remember it always this way. Which is not to say I am not wrong, it is just how I remember what was a tumultuous time in the diamond markets.
Wink