World Of Gems Conference 2017 Proceedings Book

WORLD OF GEMS CONFERENCE V - 43 - SEPTEMBER 2017 HISTORY I n the early 1900s, “Blue-white” fluorescent diamonds were in demand. But in 1938, the Federal Trade Commis- sion ruled out the use of the term “blue-white,” but fluo- rescent diamonds remained a positive attribute for about 40 years more. In 1980 the investment craze hit and fluores- cence was unacceptable with some fearing inflated color grading, and so, for the first time, it became a negative. Today, almost all fluorescence in all grades get discounted. The chart below shows a summary of the changes in the market for high quality diamonds. Both the GemGuide and the Rapaport list have shown changes over these years and both reports list the categories slightly different and have both changed the categories for reporting over the years. These charts combine and average the two reports. A definite trend can be seen of increasing discounts. Historical Change in Fluorescence Effects on Market Very Strong only, D-F/IF-VVS 1990 -5% to -10% 2000 -7% to -15% 2017 -20% to -30% CONCLUSIONS AND PRICE GUIDES Price guides will list a range of expected discounts that might result from fluorescence and these discounts have increased a lot in the past two decades. While an occa- sional premium for a low color diamond might appear, the prices for even the lower colors and clarity grades even today are more often still a discount, not a premium. Most buyers seem to avoid these diamonds but considering that about a third of all diamonds fluoresce, they cannot be ig- nored and discarded. There is a market for all diamonds and this feature may create an opportunity for some buyers if they take the chance on fluorescence. After all, it can en- hance the overall beauty. u REFERENCES 1. Shigley, James, “Fluorescence, What’s Changed,” World of Gems Conference (Rosemont, IL, September, 2014). 2. Thomas M. Moses, Ilene M. Reinitz, Mary L. Johnson, John M. King, and James E. Shigley. “A Contribution to un- derstanding the Effect of Blue Fluorescence on the Appear- ance of Diamonds.” Gems & Gemology, Volume 33, Issue 4, Winter 1997. 3. Drucker, Richard, “Effects of Fluorescence—New Re- search on Pricing,” World of Gems Conference (Rosemont, IL, September, 2014). A HISTORY OF THE EFFECTS OF BLUE FLUORESCENCE ON THE DIAMOND MARKET Richard B. Drucker, GIA GG, Honorary FGA BLUE FLUORESCENCE POSTER ABSTRACT FIGURE 1. Medium, strong, very strong fluorescence. Photo: Gary Roskin. FIGURE 2. The “Maximillian Diamond,” named after the original owner, Mexico emperor Maximillian, sold by Graff in 1983 to Imelda Marcos, sub- sequently sold in the 1990s and recut to current weight of 39.95 ct. Resold Christie’s 2010 for nearly $1.8 million. And fluoresces strong blue! Appar- ently, if the diamond is famous, fluorescence does not diminish demand. Photo: Gary Roskin.