Precious metals and stones dealers and their FIC obligations
The glory of green gems
Keep your business safe when using AI tools
JPPE is a Cape Town-based family business servicing the jewellery industry since 1966. Our passion for gemstones and jewellery inspires us to create stunning designs for locals and tourists.
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Representative
Design to deliver high quality trade services
Price List 2024 | All prices excluding 15% VAT CAD DESIGNS R 450.00 | R 575.00 | R 700.00 Design Changes - R 100.00
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Sprue-up Fee R 50.00
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8. NEWS
• Updated FAQs on Domestic Reverse Charge (DRC) regulations
• Former De Beers CEO joins Gemfields board
• Buyer incentive programme for SA buyers at Jewellery & Gem World Hong Kong
• Vicenzaoro September 2024 sold out
• Christie’s Magnificent Jewels totals US$44,4 million
• Africa’s biggest jewellery trade fair not to be missed
• Swiss watch exports bounce back
• Save the date for CIBJO educational seminar
• Entries open for PlatAfrica 2024
13. JOSEF RITTER PASSES AWAY
The industry mourns the passing of Josef Ritter, founder of Ritter’s Jewellers
14. FINANCIAL INTELLIGENCE
Precious metals and stones dealers and their FIC obligations
16. WINELANDS NETWORKING EVENT
The Winelands Networking Event was hosted by Cape Precious Metals in collaboration with a number of industry players
18. DIAMONDS
The Natural Diamond Council has unveiled its new “Real. Rare. Responsible” campaign
20. BUSINESS MANAGEMENT
Keeping your business safe when using AI tools
26. JEWELLERY DESIGN
Local jewellery brand Nungu Diamonds has announced that it will be collaborating with esteemed US jewellery retailer Zales
31. EDUCATIONAL INSERT
40. RADIANT GEMSTONES
The glory of green gems
42. DE BEERS TO STOP PRODUCING LAB-GROWN DIAMONDS FOR JEWELLERY
De Beers will cease creating synthetic diamonds for its Lightbox consumer brand in a strategic revamp
44. BORN IN AFRICA
A comprehensive directory featuring information and contact details of all members of the Jewellery Manufacturing Association of South Africa
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Editor: Adri Viviers
Tel: +27 (0)11 883-4627
Cell: 084-261-1805
E-mail: adri@isikhova.co.za
Managing Director: Imraan Mahomed
E-mail: imraanm@isikhova.co.za
Operations Director: Thuli Majola
Tel: +27 (0)11 883-4627
E-mail: thuli@isikhova.co.za
Advertising Sales:
Tel: +27 (0)11 883-4627
Cell: 083-450-6052
Copy Editor: Anne Phillips
Design and layout: Joanne Brook
E-mail: joanne@isikhova.co.za
Distribution: Ruth Dlamini
SA Jewellery News is published by: Isikhova Media (Pty) Ltd
Website: www.isikhova.co.za
Editor's note
I HAVE BEEN WRITING FOR SA JEWELLERY News for almost 20 years now. I still remember my first day as if it were yesterday. Many things have changed over the past two decades, but one thing that has remained constant is the helpfulness I have experienced. Putting a magazine together every month, together with a weekly industry newsletter, requires speaking to a lot of people. Besides doing interviews, I also e-mail, call or visit industry players for information or visuals, or often simply to bounce article ideas off them.
I deeply appreciate an industry that makes my job so easy, with people eager to assist and share knowledge and their life experiences because these might help someone else. Being part of our industry gives one a sense of “unity” and “family”, where we share each other’s successes and pain. We recently learnt of the passing of two veteran members of our jewellery family: Josef Ritter, founder of Ritter’s Jewellers and Tony Daymond, founder of Unioro Findings. Both men were deeply respected and will be sorely missed. We received Ritter’s eulogy and it is a privilege for us to share it in this issue with our readers in remembrance of his life.
The Winelands Networking Event, hosted by Cape Precious Metals in collaboration with a number of industry players, was
held in May and saw jewellers, hobbyists, students, jewellery designers and suppliers in attendance. We share some of the photos taken there in this issue as well.
We also share the announcement of local jewellery brand Nungu Diamonds, which has collaborated with American retailer Zales.
We remind JCSA members that the council has negotiated free hotel accommodation at a four-star hotel in Hong Kong, hosted buyer badges, use of the buyer lounge and access to the fair reception for potential SA jewellery buyers who are members of the Jewellery Council at the Jewellery and Gem World HK Show in September. We also remind jewellery designers that there are only a week or two left to enter this year’s PlatAfrica Jewellery Design Competition, with the deadline on 26 July.
Finally, the countdown to Jewellex Africa has officially begun, with Africa’s leading and biggest jewellery trade fair only two months away!
We hope you enjoy this issue.
Happy reading!
Adri Viviers
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Africa’s biggest jewellery trade fair not to be missed
Jewellex Africa, the continent’s leading jewellery trade show, is set to return to the Wanderers Club in Illovo, Johannesburg from 8-9 September. Organised by the Jewellery Council of South Africa (JCSA), Jewellex Africa boasts a rich history of connecting industry professionals, buyers and jewellery enthusiasts.
“This year’s edition promises to be exceptional, with two venues already fully booked and the third almost full,” says Lorna Lloyd, JCSA CEO. “Due to demand, we’ve expanded the show to accommodate a larger
selection of exhibitors.
“We’re also excited to share that we’re planning a special pavilion in collaboration with the Department of Trade, Industry and Competition and will be submitting an application to it to fund 10-20 SMMEs to exhibit at the show.”
The two-day event will start with a business breakfast on Sunday, 8 September, sponsored by Rand Refinery. This year’s exciting speaker will be announced in due course.
“We’re also excited to share that Brinks SA
will again be sponsoring the lanyards, MetCon the carrier bags and Cape Precious Metals the registration,” says Lloyd. “Our sponsors have always been loyal supporters of the Jewellery Council and Jewellex Africa and have always had the industry’s interest and growth at heart, for which we thank them sincerely.”
Stand sales for Jewellex Africa 2024 are open and prospective exhibitors are invited to contact Elsa da Silva for further information on tel: (011) 484-5528 or 082-214-0028 or e-mail: elsad@jewellery.org.za.
Updated FAQs on Domestic Reverse Charge (DRC) regulations
The Jewellery Council of SA (JCSA) has circulated a notice to its members informing them that SARS has published an updated version of its frequently asked questions (FAQs) on the Domestic Reverse Charge (DRC) regulations. The council also attached a copy for members’ perusal.
“As you may recall, the recent amendments to the DRC regulations came into effect retrospectively from 1 January 2024, even though the amendments themselves were only published as final on 10 May 2024,” the notice read. “This presented various practical questions and challenges regarding supplies of valuable metal made between 1 January 2024 and 10 May 2024. While certain additional supplies now fell within the ambit of the DRC regulations (eg
due to additional forms added into scope), others fell outside the ambit (eg due to the new 1% de minimus threshold).
“This meant that supplies made during this period may not have been treated correctly from a DRC perspective and the remedial action, if any, required of DRC vendors was unclear. We raised this concern with SARS during a recent VAT interactive workshop held on 4 June 2024.”
While the DRC regulations do not contain any transitional rules, SARS has now provided practical transitional rules in its FAQs as a means of providing clarity to vendors of what is required of them in this regard. Question 3 of the FAQs confirms that:
• transactions which have a time of supply before 10 May 2024 must be treated in
Swiss watch exports bounce back
Swiss watch exports began to rebound in April as demand in Hong Kong returned and China’s decline eased.
Shipments of timepieces rose 4,5% to US$2,37 billion for the month, the Federation of the Swiss Watch Industry reported. The lift followed a 16% drop in March and a decrease of 3,8% in February as appetite in Asia began to falter.
“Swiss watch exports revived in April following the marked decline seen in the previous month,” the federation noted. “Of the 10 main markets, only China lost ground compared with April 2023, while Hong Kong remained stable. Other Asian markets achieved double-digit growth. The USA, which is always well ahead, also proved highly dynamic.”
accordance with the “old” DRC regulations (ie as they read before the recent amendments); and
• supplies made on or after 1 July 2024 must comply with the “new” DRC regulations (ie as they currently read, following the amendments).
Therefore, vendors are not required to amend their historical VAT returns or DRC documentation for supplies made during the period from 1 January 2024 to 10 May 2024.
Affected vendors are allowed time until 30 June 2024 to amend their systems to enable them to issue the correct documentation regarding supplies from 1 July 2024 onwards.
“Members who have any questions regarding the above can contact the Jewellery Council,” says Lorna Lloyd, JCSA CEO.
Supply to the USA climbed 12% to US$373,5 million. In China, the federation’s second-largest market, shipments slid 8% to US$206,5 million, but stabilised in Hong Kong at US$187,2 million. In Japan, which replaced Hong Kong as the third-largest market in April, exports rose 14% to US$189,9 million. Singapore saw a rise of 13%, as did the United Arab Emirates. Shipments to South Korea grew 27% and those to Europe were up 6%.
Timepieces over US$3 311 were the only cate gory that saw an increase, climbing 8%. In the first four months of the year, exports de clined 2,6% to $9,18 billion.
Buyer incentive programme for SA buyers at Jewellery & Gem World Hong Kong
The Jewellery Council of SA has negotiated free hotel accommodation at a four-star hotel in Hong Kong, hosted buyer badges, use of the buyer lounge and access to the fair reception for potential SA jewellery buyers who are members of the Jewellery Council at the Jewellery and Gem World HK Show in September.
Interested JCSA members can click on the link below for e-application for the hosted buyer programme.
Please note that the organisers of the show will only collect identity/passport
documents via the registration link: https:// imjhk.imasia-passport.com
Hosted buyer application procedure:
1. Complete the visitor registration.
2. Complete the hosted buyer application form.
3. Successful applicants will receive an e-mail notification attached with a hotel deposit form (for guaranteeing arrival purposes).
4. Return the hotel deposit form to the appointed travel agent/designated hotel before the required date. NB: The
16-20/9/2024 18-22/9/2024
AsiaWorld-Expo • Hong Kong (AWE) Hong Kong Convention & Exhibition Centre (HKCEC)
application will be cancelled without notice in the event of failure to settle the hotel deposit.
5. The appointed travel agent/designated hotel will send the hotel confirmation after guaranteeing the arrival.
6. Informa Markets will send an e-mail confirming pick-up arrangements of hosted buyer badges and related programme details one week prior to the show.
Read more about the show by visiting: https://jgw.exhibitions.jewellerynet.com/
One room (single/double/twin) and four nights' hotel accommodation for each company at designated four-star hotels in Hong Kong
Hosted buyer badge
Use of buyer lounge at the fairground Fair reception/Networking event (if any)
“Members who have any questions regarding the above can contact the Jewellery Council,” says Lorna Lloyd, JCSA CEO.
Former De Beers CEO joins Gemfields board
Gemfields has appointed former De Beers CEO and co-chairperson Bruce Cleaver as head of its board of directors.
Cleaver, who will assume his new duties on 1 July, will also become chairperson of the Nomination Committee. The former De Beers CEO left the diamond-mining giant in 2022 and stepped down as its co-chair in January.
“[Cleaver’s] reputation as a pre-eminent leader is well documented and he brings considerable experience of mining gemstones in Africa and marketing them internationally,” says the company, which owns the Montepuez
ruby mine in Mozambique and the Kagem emerald deposit in Zambia.
Cleaver succeeds Martin Tolcher, who will be resigning from his position at Gemfields after being on its board for 15 years and its chairperson for five.
“Gemfields is a unique and extraordinary business, one that’s taken a fragmented and fairly informal industry to considerable sophistication as the first consistent supplier of significant quantities of coloured gemstones in a responsible and transparent manner,” says Cleaver. “The parallels with De Beers’
Christie’s Magnificent Jewels totals US$44,4 million
Christie’s Magnificent Jewels live sale took place at Christie’s Rockefeller Centre with bidding on the phones, in the room and online. The sale achieved a total of US$44,4 million, with 90% of the 144 lots sold. The auction featured a dazzling array of rare diamonds, notable coloured stones and a stunning assemblage of jewellery from the most important houses such as Bulgari, Cartier, Tiffany & Co and Van Cleef & Arpels.
The sale’s top lot was The Eden Rose, a 10,20ct round brilliant fancy intense pink diamond which sold for US$13,3 million, exceeding its high estimate. The auction saw strong participation, with bids coming from around the globe, including 51% from the Americas, 24% from Europe and 26% from Asia Pacific and the Middle East.
“The 10,20ct gem surpassed all
origins and how consistent and reliable supply can deliver remarkable industry growth and positive contributions to communities are clear to all. I look forward to working with the Gemfields team as we prepare the company for its next stage of growth.”
That development includes the construction of a new processing plant at Montepuez, which will triple its current capacity. The project is set to be completed in the first half of 2025.
Besides Cleaver, Gemfields has appointed Kieran Daly and Simon Scott to the board. –Rapaport
expectations,” says Rahul Kadakia, Christie’s International Head of Jewellery.
Strong results were achieved throughout the sales of coloured diamonds and coloured stones, including an important coloured diamond and diamond pendant necklace which sold for US$2 167 500 and a fancy vivid blue heart modified brilliant-cut diamond of 2,28ct which fetched US$2 107 000.
Vicenzaoro
September 2024 sold out
The countdown has begun for Vicenzaoro, Europe’s leading business hub for the gold, jewellery and watchmaking supply chain, a global showcase of market news and trends, organised by the Italian Exhibition Group (IEG).
At the fully booked Vicenza exhibition centre, approximately 1 200 exhibiting brands will present new jewellery creations and innovations spanning the entire goldsmithing supply chain, from high jewellery collections to gold manufacturing, wristwatches, semifinished products, components, gems and precious stones, packaging, services and accessories. The offerings will be further complemented with ready-to-sell products, hosted at Palakiss.
Talks, seminars and market insights will be presented by authoritative opinion leaders and major national and international trade associations, including CIBJO, Confartigianato Orafi, Confcommercio Federpreziosi, CNA
Orafi, Confimi Industria Categoria Orafa ed Argentiera, Assogemme, Assocoral and AFEMO.
The event will also feature the world première of the new edition of Trendbook 2026+ by Trendvision Jewelry + Forecasting, IEG’s independent observatory on contemporary jewellery.
VO’Clock Privé will return to the foyer on the first floor of the Vicenza exhibition centre, running from 6-8 September. This contemporary watch lounge is open to the public, offering timepiece enthusiasts and collectors an unmissable opportunity to engage with sought-after brands and partake in immersive watch culture experiences.
Continuing the celebration of 70 years of goldsmithing tradeshows in Vicenza, the city centre will be the scene of VIOFF, the off-show of Vicenzaoro, featuring events and cultural initiatives in collaboration with the municipality of Vicenza.
Entries for PlatAfrica 2024 open
Entries are open for PlatAfrica, South Africa’s premièr platinum jewellery design and manufacturing competition.
This year, thanks to the talent of all our professional and student/apprentice designers, the competition celebrates 25 years of platinum design excellence.
2024 marks a momentous milestone for the global platinum industry: it is the centenary of the discovery of the Merensky Reef, the world’s most prolific source of platinum group metals, right here in SA.
The discovery was made by geologist Dr Hans Merensky and the reef has since played a pivotal role in the country’s economy and the global market.
PlatAfrica 2024 celebrates this significant centennial event under the theme “Legacy and Beyond”, casting forward to the industry’s boundless possibilities. How will you make your mark on the world of design? How will your PlatAfrica 2024 design leave a legacy worth aspiring to?
Metal requests should be submitted as soon as possible. Please e-mail your request, together with a copy of your metal licence, to:
juno@junocorp.co.za. Final requests must be received on or before 3 June 2024.
Participants must submit their design pieces by 26 July 2024. Adjudication will take place in August 2024.
2024 CIBJO congress registration open
Four months remain before the start of the 2024 congress of the World Jewellery Confederation (CIBJO). Delegates and other participants may register via the dedicated congress website located at: www.cibjo.org/ congress-2024/.
CIBJO’s 2024 annual congress will take place in Shanghai, China’s financial centre and the gateway to what is today the world’s largest jewellery market, from 2-4 November. Precongress meetings will be held on 31 October and 1 November.
The hosts of the congress are the Donghao Lansheng Group and the China Gems and Jade Exchange.
The congress venue and the official hotel will be the Shangri-La Qiantan, in the heart of Shanghai’s New Bund International Business District in Pudong.
The dedicated website includes the congress programme, important travel information, background information about Shanghai and the congress venue, news and media.
An online registration form for the congress is available and delegates will also be able to book hotel rooms at special congress rates using a link provided on the dedicated website.
GIA pilots Jewellery Report service
The Gemological Institute of America (GIA) is piloting an innovative Jewellery Report service that offers insights into the components of submitted items, including metal details, gemstone characteristics and existing engravings. Anyone interested in the pilot programme can sign up here for the waiting list.
The GIA Jewellery Report offers a comprehensive description of the submitted jewellery piece(s), including metal verification and ranges for the clarity, colour and carat weight of D-Z diamonds that do not have previous GIA reports for unmounted stones. If the diamonds have existing GIA report numbers, the
CIBJO congresses serve as the gathering place for the World Jewellery Confederation’s Assembly of Delegates and are also the venue for the annual meetings of CIBJO’s sectoral commissions, where amendments can be introduced to the organisation’s definitive directories of international industry standards for diamonds, coloured stones, pearls, gem labs, precious metals, coral and responsible sourcing, known as the Blue Books.
The CIBJO congress is also where the programmes of World Jewellery Confederation Education Foundation (WJCEF), as well as activities related to CIBJO’s ongoing cooperation with the United Nations and its development programme, are reported on.
specific grades will be detailed on the report with a link to GIA's Report Check for added verification. The GIA Jewellery Report also includes details of any current markings.
Add-on services will be available for new engravings, a 360º video of the jewellery and more for an additional fee.
JOSEF RITTER WAS BORN ON 23 MARCH
1933 to Martin and Rosa Ritter in Budaörs, a German-speaking town on the outskirts of Budapest with a population of 10 000 people.
As a little background history, in 1684 the Turks were defeated in Vienna, Austria, and driven out of Hungary, which they had occupied for 200 years. The Hapsburg Empire encouraged immigrants to resettle in Hungary. In 1710, Ritter’s ancestors arrived from southern Germany to settle in that country as well.
Before the Second World War, about 8% of the population was German-speaking.
In 1945, the communists come to power in Hungary and decided to deport the German population, starting in February 1946.
Transportation consisted of 50 train cattle cars, each of which could fit 20 people. It took about two weeks to transport them the 1 000 km from Budapest to Germany. The Ritter family ended up in the small town of Ingelfingen, 100 km north of Stuttgart.
Before the war, Ingelfingen had a population of 2 000 people. In a matter of two years, this increased to 3 000. These Hungarian refugees were billeted to the houses of locals, who resented having to share their homes with strangers.
Ritter Jnr started out living with and working for a local farmer, until they realised that he was of an age to begin school. After completing his schooling, he decided he did not want to become a farmer and hoped to study mechanics, as automobiles were becoming more widely available. However, the mechanics classes were fully subscribed, so he enrolled for goldsmithing and did an apprenticeship at a jewellery factory.
Once he qualified, he moved to Pforzheim, about 50 km west of Stuttgart. It had a population of about 70 000 people and was the centre of the jewellery industry. He took evening classes to improve his goldsmithing techniques, diamond-setting and designing.
In 1955 a jeweller from Cape Town, Kurt Baldinger, came to Pforzheim looking for a goldsmith for his business in South Africa. Josef signed a contract and relocated to Cape
Josef Ritter passes away
It was with great sadness that the industry learnt of the passing of Josef Ritter, founder of Ritter’s Jewellers
Town in February 1956. The voyage to SA took two weeks, during which he met his future wife, Anneliese (Putti) Traupe. After finishing his two-year contract, Ritter identified the need for a goldsmith in (then) Port Elizabeth, from which local jewellers had to send their repairs to either Cape Town or Johannesburg, and duly relocated there to open a workshop.
In 1961 he opened a retail jewellery store, Ritter’s Jewellers, in the Old Mutual building in Main Street. Besides his activities as a retailer, Ritter was very active in the German club, Rotary and Toastmasters, serving as president for all these clubs at different times, as well as assuming other leadership roles.
In 1965 he imported a casting machine and started manufacturing jewellery for the entire country, with a business called Ritco Manufacturing Jewellers which is still operational today.
In 1997 he moved his store to the Walmer
Park Shopping Centre and, in due course, it became one of the leading jewellery stores in Gqeberha and, indeed, the country. In 2009 he sold the Walmer Park outlet and, at the age of 78, retired.
In November 2021, he relocated to Raleigh, North Carolina, USA to be closer to his three children, who all lived in that country. He passed away on 14 May 2024, after a short illness.
Ritter is survived by his three children, Tony, Connie Tomlinson and Caren Morris and their spouses Tish, Rob and Brent; grandchildren Matthew, Grace, Lauren, Jenna and Hannah; nephews Hans, Mathias, Herbert and Martin; nieces Marion, Linde and Anita; and extended family in SA, Germany, Austria, Hungary, the UK and Spain.
SAJN extends its condolences to the entire Ritter family on their sad loss and salutes the memory of a stalwart and pioneer of the South African jewellery industry.
Ritter identified the need for a goldsmith in (then) Port Elizabeth, from which local jewellers had to send their repairs to either Cape Town or Johannesburg, and duly relocated there to open a workshop.
LOW BARRIERS TO ENTRY FOR DEALERS in precious metals and stones, in addition to the use of cash and online platforms to trade in these products, raise the sector’s risk profile. The added potential for dealers and manufacturers in these sectors to source raw materials from conflict areas and/or where there are threats of terrorism, also impacts on their vulnerability to terrorist financing.
Precious metals and stones dealers who trade in single items to the value of R100 000 or more, are considered accountable institutions under the definition of high-value goods dealers, listed as item 20 of Schedule 1 to the Financial Intelligence Centre Act (FIC Act).
Measures the sector can adopt to mitigate the risk of criminal exploitation include meeting their obligation to register with the FIC and to file regulatory reports. An important step in contributing to the fight against money laundering and terrorist financing (ML and TF) is for individual businesses to assess their vulnerabilities and risk to criminal abuse. To that end, the FIC designed a questionnaire (called a risk and compliance return) which enables the regulator to measure individual precious metals and stones dealer’s understanding of the ML and TF risks they face. In addition, the FIC can use the information to assess the inherent ML and TF risks in the sector and supervise them using a risk-based approach.
Dealers in precious metals and stones are required to complete and submit a risk and compliance return to the FIC without delay in respect of Directive 7 of 2023 – which was issued on 31 March 2023. Not doing so places individual companies in this sector at risk of facing administrative sanctions.
The high-value goods dealers sector has been slow in submitting their risk and compliance returns to the FIC. The forms for completing the returns can be accessed here or visit www.fic.gov.za. On the home page scroll down and click on the link: “Accountable Institutions: File your 2023 risk and compliance return today”.
Registering with and reporting to the FIC
Before an accountable institution can submit regulatory reports or complete their risk and compliance return, they must first register with the FIC. Registration is free of charge and must be completed electronically using the FIC’s online registration system called goAML, which is accessible on www.fic.gov.za.
Precious metals and stones dealers and their FIC obligations
In its 2023 assessment report on the sector, the Financial Intelligence Centre (FIC) has found that criminals involved in money laundering and terrorist financing target the precious metals and stones sectors.
Refer to the goAML accountable institutions registration guide as well as PCC 5D for guidance on how to register.
As part of their FIC Act obligations, accountable institutions must monitor client transactions to identify suspicious and unusual transactions as well as other reportable activity. For dealers in precious metals and stones, there are three primary regulatory reporting streams, which include cash threshold reporting (see FIC guidance note 5C), terrorist property reporting (see
guidance note 6A) and suspicious and unusual transaction reporting (see guidance note 4B).
Suspicious and unusual transaction reports
A suspicion may involve several factors that could seem insignificant but, taken together, may arouse suspicion concerning that situation. The reporter should evaluate the transactions and the client’s history, background and behaviour when determining whether a transaction or activity is suspicious or unusual. Suspicious and unusual transaction
reports (STRs) must be filed regardless of the amount of money involved.
An STR must be reported as soon as possible without delay, and no later than 15 days of the institution becoming aware of a concerning a transaction or a suspicion. An accountable institution can continue with the transaction when an STR has been submitted to the FIC. However, they may not disclose that a report was submitted, nor the content of the report. Doing so would amount to “tipping off.”. Refer to guidance note 4B for further information on STRs.
See the DPMS sector risk assessment for some indicators of potential ML, TF and PF, which could raise a suspicion:
• Significant cash withdrawals from bank accounts by participants within the gold trading sector
• The transaction involves the use of front or shell companies where the client is an entity
• Original source of funds to buy precious metals and precious stones cannot be established
• Transactions between domestic buyers and sellers with proceeds sent to unknown third parties in foreign jurisdictions
• Unusual pattern of precious metals and precious stones transactions and the nature of the transactions are inconsistent with the customer profile
• Established customer (including bullion dealers) dramatically increasing the purchase of precious metals and precious stones for no apparent reason
artificially inflate or deflate price
• Precious metals or stones sourced from regions known for armed conflicts or human rights abuses
• A lack of transparency in the supply chain, such as lack of clarity on origins of precious metals or stones can raise concerns about illegal mining, smuggling, or unethical practices
identity particulars of persons and entities contained in resolutions of the United Nations Security Council. The FIC website carries this list and notices are published by the Director of the FIC in terms of section 26A of the FIC Act.
No one may provide financial or other services to persons or entities designated on a TFS list, in terms of section 26B of the FIC Act. All persons are prohibited from establishing a business relationship or conducting a single transaction with designated persons or entities. This may include not releasing any property to the designated person or entity. This is referred to as an “asset freeze”. The accountable institution must have processes in place to ensure that ‘freezing’ occurs immediately where it is in the possession or control of a designated person’s property.
Section 28A of the FIC Act requires accountable institutions to file a terrorist property report (TPR) with the FIC if the business knows that it possesses, or controls property linked to terrorism or designated persons and entities. An accountable institution must not continue with the transaction when a TPR has been submitted to the FIC. TPRs must be reported without delay and no later than five days from becoming aware.
• Fraudulent grading reports or counterfeit certificates for diamonds and other gemstones may be due to illegal activities
• Foreign nationals purchasing gold bullion through multiple transactions over a short period of time
• Purchases for no apparent commercial or investment purpose, including a change in purchase behaviour of an existing client
• Precious metals and precious stones are moved from or to a jurisdiction designated as high risk for money laundering activities or sensitive or non-cooperative jurisdictions
• Illegal price-fixing schemes or attempts to
• Frequent turnover of employees in certain roles or positions may indicate potential internal theft or fraudulent activities within the company
• Use shell companies to disguise the origins or destinations of precious metals and stones, making it difficult to trace illegal activities.
Targeted financial sanctions
Accountable institutions must scrutinise client information against the targeted financial sanctions (TFS) list available on the FIC website. The TFS list reflects the current
An important step in contributing to the fight against money laundering and terrorist financing (ML and TF) is for individual businesses to assess their vulnerabilities and risk to criminal abuse.
Where a dealer in precious metals and stones suspects a transaction or activity may be linked to a designated person or entity, it must file an STR or SAR, whichever is applicable in terms of section 29 of the FIC Act. PCC 44A provides guidance on TFS obligations and the risk-based approach to combating terrorist financing and proliferation financing.
Other FIC Act obligations include adopting a risk-based approach, record keeping, appointing a person responsible for compliance, developing and implementing a risk management and compliance programme (RMCP), and training employees on FIC Act compliance and the institution’s RMCP.
Dealers in precious metals and stones can consult the reference guide for accountable institutions and visit the FIC website for more information on the compliance obligations for accountable institutions. For more sector specific guidance for high-value goods dealers refer to PCC 58.
Also, visit the FIC website for various guidance notes and public compliance communications. Alternatively, contact the FIC’s compliance contact centre on +27 12 641 6000 or log an online compliance query on the FIC website.
The Winelands Networking Event, which was held on 16 May 2024 at Jordan Wine Estate in Stellenbosch, was hosted by Cape Precious Metals, in collaboration with a number of industry players
Winelands Networking Event
IN ATTENDANCE AT THIS YEAR’S WINELANDS Networking Event were jewellers, hobbyists, students, jewellery designers and suppliers, with special guests from the South African Diamonds and Precious Metal Regulator and The Platinum Incubator.
Exciting happenings included a lucky draw, which was won by Zania Vermaak, a second-year Stellenbosch student, who won
a 1 oz silver medallion sponsored by Moon Investments.
During the event, Cape Tools and Jewellery Supplies, supplier of precision tools and jewellery supplies, had stations demonstrating abrasive and polishing accessories, sand-casting clay and engraving with Carl and Lindsey Koekemoer from the Jewellers Blend and Michelle Liao doing the demonstrations. Carl demonstrated on the ArtGraver, a machine specifically used for setting stones and engraving, while Lindsey demonstrated abrasive and polishing accessories on various pieces of jewellery and Michelle demonstrated sand-casting clay, a process in which melted metal is poured into a mould made from sand-casting clay, creating a unique piece. A variety of products were also on display, as well as specials on all items for registered visitors.
The next networking event is scheduled
for 18 July at the Castello Guest House in Bloemfontein from 10am-4pm.
“We encourage potential visitors to contact Cape Tools should they wish to see anything specific at the Bloemfontein event,” says Tennille Hoge of Cape Tools.
“It’s really a wonderful industry networking event, with all trades and crafts coming to chat, learn and swap business ideas and cards,” she adds. “It’s also a great opportunity for students to get involved and learn more about the industry.”
“Real. Rare. Responsible” campaign launched
The Natural Diamond Council (NDC) has unveiled its new “Real. Rare. Responsible” campaign with global ambassador and Emmy-nominated actress Lily James
THE NEW CAMPAIGN COMPRISING HEROIC films and an array of video and image assets took consumers on the remarkable journey of a natural diamond through a discovery trip with James in the Northwest Territories (NWT) of Canada, the world’s third-largest diamondproducing region.
“Formed deep within the earth billions of years ago, it was important that we capture natural diamonds in their natural element for our new campaign,” said David Kellie, the NDC’s CEO.
“Canada plays an integral role within the natural diamond industry. While people tend to more commonly associate countries in southern Africa as leading natural diamond-producers, Canada’s also vital and it’s paramount that we share the incredible conservation efforts taking place in the NWT with consumers. The Canadian natural diamond industry is one of the most highly regulated and responsible mining industries in the world and you can trust that wherever your natural diamond is from, land, wildlife and local and indigenous communities are a top priority,” added Kellie.
The trip included a visit to diamond destinations such as the remote De Beers Canada/Gahcho Kué Diamond Mine site, Rio Tinto’s Yellowknife splitting facility and
Diamonds de Canada, the sole producer of the Polar Bear Diamond, to discover how they keep the entire supply chain local to benefit their own communities, from mining to cutting and polishing of natural diamonds.
“Visiting the stunning Northwest Territories of Canada with the NDC was an experience I’ll never forget,” said James. “While exploring the area, I witnessed first-hand how responsible practices aren’t just a choice, but a deep and
heartfelt commitment across the natural diamond industry. We were lucky enough to attend a cultural experience with the Yellowknives Dene First Nation. It was amazing to learn how, through employment and other benefits provided by the natural diamond industry, their traditional way of life directly benefits. We met some of the incredible women at the helm of the mining operations and educators working to shape the future
generations. Everywhere I looked while in the territories, I was reminded that natural diamonds are truly real, rare and responsible.”
The campaign will be amplified by the NDC’s global retail partners, including luxury independent retailers in the USA and leading diamond jewellery retailers in Asia. To take a closer look at the natural diamonds featured throughout the campaign, visit: NaturalDiamonds.com.
The NDC is a not-for-profit organisation committed to inspiring and educating consumers on the real, rare and responsible values of natural diamonds and the positive global impact of the industry. Our Only Natural Diamonds platform is the authoritative publisher of all things relating to natural diamonds, including myth-busting facts, celebrities and pop culture, epic diamonds and jewellery trends, engagements, weddings and diamond-buying guides. In addition, we provide marketing, promotional and educational services to brands, designers and retailers, encouraging them to amplify the values and integrity of natural diamonds.
The NDC is a global organisation whose members’ operations span four continents and 10 countries including Canada, South Africa and Botswana. These operations support the livelihood of 10 million people worldwide.
DATES: Sunday, 8th September & Monday, 9th September 2024
VENUE: The Wanderers Club, 21 North Street, Illovo, Johannesburg
BOOKINGS: elsad@jewellery.org.za or lornal@jewellery.org.za
Keeping your business safe when using AI tools
Using artificial intelligence (AI) to boost one’s business is like opening a box of magic tricks: it can do wonders, but – as with any powerful tool – it can also do harm. It is crucial to understand how this new technology could expose your business to risks
IMAGINE AN APP THAT USES AI TO SIFT through heaps of data to spot trends and give you insights. Sounds great, right? But if it is not well-guarded, it is like leaving the back door open for cybercriminals.
These technologies offer opportunities for innovation and improvement in your business; however, they also introduce security vulnerabilities, especially when it comes to protecting sensitive business data or private information.
“AI loves data. It needs lots of it to work well, which means it can access tons of sensitive info – and one needs to make sure that this
data is locked up tight,” cautions Warren Bonheim, MD of Zinia, a leading IT technology group and managed services provider.
Many AI tools use third-party platforms to store or analyse your data and they may not always have stringent security protocols, leaving sensitive information vulnerable.
“Sometimes, the biggest slip-ups come from one’s own team. Simple mistakes, like setting up privacy settings incorrectly, losing devices or unwittingly granting permissions to malicious apps, can invite trouble,” adds Bonheim.
He offers seven steps to keeping your business safe and sound when using AI tools:
Using AI is exciting and is all about learning as you go. Staying informed about security and putting these simple steps into action will help you enjoy its benefits, without the worry. It is not about fearing the new, but being smart about it.
1. Make clear rules about how to use AI safely. By establishing these “house rules” for your technology, you will help protect your business from risks and ensure that everyone knows how to use AI tools responsibly and effectively. Remember, it is perfectly alright if you are unsure of how to set all this up on your own. If necessary, bring in an IT professional to ensure that everything is set up correctly and securely.
2. It is important to make sure everyone on your team knows about the risks and the right ways to use AI technologies. Having regular training sessions is not just about following rules – it is also about teaching everyone to spot security risks before they turn into real problems. Having everyone
clued up on the best ways to handle these tools is one of the best shields to have against data breaches.
3. Block all unwanted AI tools on your firewall and disallow non-approved users from making these decisions without the proper due process or knowledge. Some AI tools also take notes of meetings, where teams often discuss strategic activities related to the business. These, too, need to be controlled through policies and using approved vendors.
4. Steer clear of free AI tools – most of them can share your sensitive data, making it pretty much public. It is like leaving your diary open on a park bench; anyone can peek at it. If privacy is an important consideration for you, it might be worth
investing in a paid service that promises better security.
5. When you bring in third-party AI tech, you need to be really careful about who you team up with. Make sure they are good with security. Choosing partners who have a solid reputation for protecting data can really cut down the risks that come with handling and storing your information on their platforms.
6. It is smart to do regular check-ups on your AI tech. These security assessments help you spot any weaknesses, whether in the devices themselves, the way data is sent back and forth, or how it is stored. Catching these issues early means you can fix them before they become bigger problems, helping you steer clear of security headaches.
7. Use tools like encryption, which is like a secret code for your data. When you send or store information through your AI tools, encryption scrambles it up so that only the right people can read it. And do not forget about beefing up your access controls, too – things like multifactor authentication and strict permissions ensure that only the individuals who genuinely need to access your sensitive data can do so.
Using AI is exciting and is all about learning as you go. Staying informed about security and putting these simple steps into action will help you enjoy its benefits, without the worry. It is not about fearing the new, but being smart about it.
Interesting facts
The first synthetic rubies were put on the market in the late 19th century. Auguste Verneuil was the chemist who perfected the method of making them and he presented them at the Paris World Fair in 1900.
During a gold facial treatment, gold-based products – cleansing gel, scrub, face cream and mask – are used on the face and neck. Usually, the ingredients have 24ct gold dust mixed with other beauty ingredients like honey, saffron, sandalwood, rose water and aloe vera gel, among others.
There is an old wives' tale that in order to use a yellow gold wedding band to determine an unborn baby's gender, tie thread to it and dangle it over your baby bump. If it swings backwards and forwards, it is a boy. However, if it swings around in a circle, it is a girl!
There are roughly 45 792 jewellery stores scattered across the USA.
"Lume" is shorthand for the luminous phosphorescent glowing solution that is applied to watches to achieve that glowin-the-dark effect.
Cranberry glass or "Gold Ruby" glass is a red glass made by adding gold salts or colloidal gold to molten glass. Cranberry glass is made in craft production rather than in large quantities, due to the high cost of the gold.
DID YOU KNOW?
Modern Korean couples often exchange jewellery early on in relationships, with promise rings and couple rings given prior to any engagement. These tend to be fairly simple rings without expensive stones or too much embellishment. The 100-day mark is when many couples decide to get a ring. It is thought that when one has weathered 100 days together, one is ready to commit and this is celebrated with special rings which are often engraved.
A watch with 17 jewels is often called a fully jewelled watch. This means that it uses jewel (usually ruby) bearings in the mechanical movement, from the balance wheel all the way to the centre wheel pivot.
In 1984, Prof Steve Richardson of the University of Cape Town published a landmark paper in Nature, proving that diamonds are significantly older than their volcanic host rock (kimberlite). By chemically analysing garnet and clinopyroxene inclusions found in diamonds, Richardson illustrated that some of the diamonds from Kimberley are over 3 billion years old. Subsequent studies have shown that the average age of South African diamonds is between 1-2 billion years.
It was the jewellery of Cleopatra, in Rome more than 2 000 years ago that inspired Bulgari to create its first Serpenti watch in 1948.
Around the 13th century, shirt cuffs were held together by ribbons, ties and strings. As men’s shirts and fashions changed, so did their cuffs and in the 17th century, early forms of the cufflinks we know today emerged. The stitched buttonhole was developed and tailors fastened these cuffs with two ornamental buttons attached by a chain. Named by French tailors as boutons de manchettes, “sleeve buttons” became popular among the upper classes. Jewellers began to create these sleeve buttons in silver and gold, adding semiprecious gemstones or stamped designs and thus the cufflink was born.
Amber may be transparent or cloudy, depending on the presence and number of air bubbles. It frequently contains large numbers of microscopic air bubbles, allowing it to float and be easily carried by rivers or the sea.
Botswana’s diamond industry has made education a top priority in conjunction with the government. The diamond industry accounts for 40% of the country’s GDP and 90% of its exports. Every child in Botswana is guaranteed a free primary and secondary school education, subsidised by the government.
Once the diamond reserve at a mine has been exhausted, the owner must close and rehabilitate the site. Underground tunnels are stabilised and entrances are sealed off. Rehabilitation means the process of returning mined land to its pre-existing condition or to another agreed use.
Nungu Diamonds collaborates with US jewellery retailer
Local jewellery brand Nungu Diamonds has announced that it will be collaborating with esteemed American jewellery retailer, Zales
LEADING US BRAND NAME IN FINE JEWELLERY retailing Zales is collaborating with renowned local jewellery brand Nungu Diamonds. Zales is operated by Signet Jewelers Ltd, the world's largest retailer of diamond jewellery with brands in the USA, the UK and Canada and operating approximately 2 800 stores. This partnership will feature unique designs crafted by Nungu Diamonds in the Zales Designer Edit collection, which will be available in the USA.
Kealeboga Pule, co-founder of Nungu
Diamonds, expressed his enthusiasm regarding the collaboration, highlighting its significance as a major achievement for the brand. He emphasised that Nungu Diamonds has always been passionate about sharing the beauty and significance of natural diamonds with the world. Its collaboration with Zales aligns with its vision and represents a strategic step forward in its growth journey. Pule further emphasised the brand’s commitment to creating exceptional, high-
quality jewellery, while making an impact on local African communities.
In response to the collaboration, Kecia Caffie, President of Zales, explained the significance of the Designer Edit in supporting both emerging and established designers. She expressed Zales’ excitement in partnering with Nungu Diamonds, emphasising the unique perspective and style that the brand brings to its product offerings. The collaboration is aimed at enhancing the shopping experience for consumers and catering to their evolving preferences in jewellery styles.
The latest assortment from this collaboration promises to offer customers an array of unique and innovative designs, providing a diverse range of styles and price points. Zales x Nungu encompasses an assortment of necklaces, earrings and rings, meticulously crafted from 14ct yellow and white gold and adorned with natural diamonds. Notably, the inspiration for the collection stems from the founders’ love story and their move to Johannesburg. The delicate and unique designs of the jewellery are a reflection of the deep symbolism and inherent beauty of natural diamonds.
Since its inception, Nungu Diamonds has remained dedicated to creating opportunities for local African communities, a commitment showcased through this exclusive collaboration with Zales. The collection, available solely at Zales in the USA, offers pieces ranging from US$1 499-US$4 799.
South African jewellery brand Nungu Diamonds was founded by Kealeboga Pule in 2013 and is led by Creative Director Ursula Pule. It has captivated the global market with its craftsmanship and innovative designs, taking pride in bespoke creations which are as unique as Africa, the continent from which it draws inspiration. With a commitment to showcasing the beauty of African diamonds and empowering local communities, Nungu Diamonds has been making significant strides in the luxury jewellery landscape.
Monthly educational insert
Gems on canvas: Pigments historically sourced from gem materials
Britni LeCroy
Pigments have been sourced from gemstones and gem materials for centuries. These colors have been applied to ancient cave drawings, classical canvas paintings, and modern artworks, revealing the evolution of the human creative experience as well as the history and progression of studies such as anthropology and chemistry. Red ochre, sourced from hematite, is one of the oldest pigments, used by early humans and even Neanderthals. Azurite was the backbone of blue pigments during the medieval and Renaissance periods. Malachite’s use as a colorant can be traced back to 6000 BCE in Egyptian cosmetics and as late as the nineteenth century in Impressionist paintings. Certain colors, such as the red of cinnabar, diminished in popularity with the invention of more affordable synthetics. Other pigments, such as bone black, continue to be manufactured and used today. The most noble of all pigments, ultramarine sourced from lapis lazuli, was so costly and valuable that only the wealthiest members of society could afford it, and its use in paintings was reserved for these patrons. Lastly, an inference can be drawn that pigment evolution correlates with the rise of significant art movements, each causing a fundamental shift in the history of art.
The wearing and collecting of gems mark their bearers with powerful symbols of status and allure. Because of their high value, gems are researched with nondestructive methods to feed growing public interest in areas such as geographic origin, synthesis, and treatment. For a gemologist, causing damage to a stone is a cardinal sin. For a painter in the past, gem materials were coveted for their pigment potential. For centuries, perfectly viable gemstones met their fate between a mortar and pestle before becoming immortalized as paint on a canvas, mural, or cave wall. These pigments commemorated color as a means of communication beyond the limits of written or spoken language. Gem materials such as hematite, azurite, malachite, lapis lazuli, bone, ivory, and cinnabar have all played roles as pigments throughout history – for some, a role assumed long before their use as gem materials (figure 1). Pigment research is an important field encompassing geologists, artists, anthropologists, historians, and even gemologists who contribute their knowledge and expertise to a subject where these disciplines converge.
Pigment can be defined as the component of paint that contributes color (Siddall, 2018). Natural inorganic pigments are derived from rocks or minerals that have been processed to extract and concentrate the material’s coloring agent (figure 2). Synthetic pigments are often chemically identical to their natural counterparts but have been produced artificially. This distinction in a pigment’s origin might seem negligible, but that is hardly the case. Synthetics strive to be chemically pure, and their crystal sizes are highly uniform. Natural pigments are never compositionally homogeneous, as rocks and minerals do not
In Brief
• Gem materials have been used as pigments by artists for thousands of years. These colors can be seen in ancient cave paintings and modern canvas works alike.
• Historically, many of these pigments were very expensive and therefore only available to wealthy consumers such as churches and royal families.
• A correlation can be seen between pigment technology and historical art movements.
form in sterile environments. These slight imperfections in a natural pigment’s particle size and structure after processing give the color a unique fingerprint, an individualized hue that reflects light in a more complex manner than its corresponding synthetic. This property means that no two malachite greens or cinnabar reds, for example, are exactly alike – a quality that is cherished among artists. When applied to a canvas, the subtle gritty texture of natural color paint can be seen and felt after drying, lending a more natural appearance. This quality of naturalness is similarly appreciated in gemology. Chemical impurities and physical changes that occur during a natural mineral’s formation create visual interest within the stone by means of inclusions, bodycolors, or color zoning, all of which are commonly researched and cataloged as modalities of science and art.
Binders are the second component of paint, holding the pigment particles in a concentrated suspension and then keeping the color in place after the paint has dried. Historically, binders have included natural substances such as egg yolk (tempera), linseed and poppy seed oil, tree resins, animal glues, saliva, milk, gelatin,
Figure 1. Historical pigments pictured with their source companions. Left to right: bone, cinnabar, hematite, malachite (with coarse pigment powder), lapis lazuli (ultramarine), and azurite (with fine pigment powder). Bottom center: cinnabar and azurite pigment. Gem materials gifted to GIA by Richard Marcus (mammoth ivory slice), Francisco Bank (hematite rough), the Hauser family in memory of Joel and Barbara Hauser (polished malachite), Zohreh Armini (polished lapis lazuli), and Josephine Scripps (azurite rough). Photo by Robert Weldon.
Figure 2. (below) Gem materials and their corresponding pigments. The faceted cinnabar is courtesy of the Dr. Edward J. Gübelin Collection, and the polished hematite is courtesy of the GIA Collection. The other gem materials were gifted to GIA by Vincent Manson (polished malachite slice), Bill Pinch (polished azurite rough), Ebert & Company (lapis lazuli carving), and Richard Marcus (mammoth ivory slice). The malachite and azurite pigments are of coarse variety. Gem photos by Diego Sanchez and Dylan Hand. Pigment photos by Nathan Renfro.
and even blood (Carr, 2002). Even with the advent of manmade complex chemical binders, which are commonplace in acrylic paints, linseed oil and gum arabic (a hardened tree sap) are still widely used.
The study of pigment spans centuries and contributes to the greater understanding of science and art. Identifying the provenance of minerals present within pigments of a specific work relays anthropological information about the trade routes and movement of people during the period in which the piece was created. An evolution in color technology, including advances in chemical and industrial processes, can also be inferred by comparing the first cave drawings with the acrylic paintings seen in art museums today. The former consists of natural pigments such as ochres (derived from iron oxides), charcoal, and simple organic colors, while today’s
paintings very often contain 100% lab-created coloring agents. The advent of affordable, mass-produced synthetic pigments is the culmination of hundreds of years of research. Prior to this revolutionary development, creating paint was expensive and highly laborious: each hue had to be mixed by hand, either by the artist or an assistant. Minerals needed for color often traveled great distances from the original source before reaching the artist, increasing the cost. The act of painting itself was reserved for those who could afford this luxury or those fortunate enough to be employed by royal families, the wealthy class, or the church. This is why most historical paintings are religious depictions or portraits of royalty and aristocrats.
The overlap of the scientific and historically artistic realms of gemstones (see box A) is a conversation not often encountered. The monetary worth and cultural significance of gems can be far inferior compared to the value of the artworks they contribute to as pigments. Hematite, azurite, malachite, lapis lazuli, bone, ivory, and cinnabar have all been significant contributors to fine art throughout history (figure 2). While most of these pigments have been replaced by synthetic equivalents, some are still used to this day.
Hematite
One of the earliest gemstones known to have been used as pigment is hematite. The dark, metallic color associated with gem-quality hematite is a result of densely stacked deep red microscopic crystals that ultimately absorb most visible-color wavelengths. Hematite’s red color can be seen when the mineral exists as either pulverized powder or thin crystals that allow light to pass through (figure 3). As one of the few gemstones with metallic luster, the iron oxide hematite crystallizes in the trigonal crystal system with the simple chemical formula of Fe2O3. Its height of popularity as a gem was likely in the Victorian era, when it was used extensively in mourning jewelry.
Within the realm of art, the powdered pigment form is referred to as red ochre and has been used from the dawn of artistic expression. Red ochre can also be produced by heating the mineral goethite (FeOOH, yellow ochre), most commonly sourced from limonite rock (Siddall, 2018). The use of red ochre as a pigment has been recorded in works of art from all periods and traditions around the world, from the Pleistocene to the present day (Siddall, 2018). The first use of red ochre was likely in cave paintings and as body paint. It was later used to represent blood in burial and fertility rites (Leonida, 2014), in addition to applications in sun protection, medicine, adhesives, and ceramic paint (Siddall, 2018).
The influence of red ochre on pigments is unparalleled. From the prehistoric art era (before 500 BCE) to the contemporary era,
Malachite
Lapis Lazuli Blue colored by member(s) of the sodalite group.
Bone and ivory Carbon after charring
Cinnabar HgS
red ochre is pervasive. The earliest cave paintings from every habitable continent on Earth, revealing humans at their most primitive artistic abilities, feature red ochre. One well-known and researched example featuring this color is the cave art of Lascaux in France, dated to roughly 19,000 years ago (Musée d’Archéologie Nationale, n.d.), depicting wildlife such as bison and horses (figure 4). A younger example is the eerie Cueva de las Manos in Argentina, created 13,000 to 9,500 years ago (UNESCO World Heritage Convention, n.d.), which shows painted hand silhouettes (figure 5). It has become widely accepted by scholars that the adoption of red ochre is synonymous with the beginnings of art and therefore human intellectual evolution. In fact, the use of ochre and tool-making are two significant advances in human evolution, with the latter universally acknowledged as an indicator of humankind’s intellectual, social, and cultural development (Wreschner et al., 1980). It can be theorized that the uniting of art and science began to take form with the use of red ochre. The Blombos Cave archaeological site along the southern Cape coastline of South Africa has proved to be a major anthropological discovery related to red ochre. The pigment uncovered exists not as an application, but as raw red ochre contained in abalone shells that slowly became
buried by sands as they lay abandoned on the cave floor over thousands of years. Other materials found with the shells and ochre include cobbles, bones from seals and antelope, and stone tools. Together, these objects are believed to constitute prehistoric artistic “tool kits” dated to roughly 100,000 years old. Henshilwood and Van Niekerk (2012) documented these materials and interpreted their significance: “What these findings tell us, is that the artisans who lived in Blombos Cave 100,000 years ago had the capacity for abstract thought, multi-tasking, long-term planning and an elementary knowledge of chemistry.”
Until recently it was believed that cave painting was an exclusive trait of Homo sapiens . In 2018, a team of paleoanthropologists published data on uraniumthorium dating of a series of simple drawings found inside three Spanish caves. The works examined in that study consisted of dots, lines, discs, and hand stencils, all created by red ochre (Netburn, 2018). All three were found to be at least 64,800 years old, which predates the arrival of humans in Europe by at least 20,000 years (Hoffmann et al., 2018). Neanderthals exclusively populated this region of modern-day Europe at the time, implying that the artists were indeed Neanderthals. Proof of their ability to create art helps dispel the popular misconception that Neanderthals were mentally inferior to Homo sapiens
Nearly every canonized artist has used red ochre at some point. The color was also a traditional ingredient in sanguine, a type of chalk colored by red ochre. Leonardo da Vinci grew fond of the material, featuring it in numerous drawings during the Renaissance period. Da Vinci is credited with being the first major artist to use this ochre variety (Millidge, 2003), and Michelangelo continued its reach. This period also popularized the use of red ochre in fresco murals. Paul Gauguin, one of the most famous painters of the Post-Impressionist movement, made it a staple of his palette. Red ochre’s importance to modern artworks is incalculable. Twentieth-century masters such as Pablo Picasso, Mark Rothko, and Andy Warhol created
Figure 4. The famous Hall of the Bulls in the Lascaux Caves contains early cave paintings rendered in red ochre. Photo by JoJan/CC BY 4.0.
Figure 5. The entrance of Cueva de las Manos reveals red ochre hand stencils created by ancient Argentinian tribe members. Photo by Pablo A. Gimenez/ CC BY SA 2.0.
Figure 3. Red hematite crystals in quartz. Photomicrograph by Nathan Renfro; field of view 7.22 mm.
works featuring the color, bringing it full circle. While most natural pigments have been far surpassed by synthetic pigments, red ochre is the exception. Red ochre paints continue to be predominantly made with natural hematite or heated goethite due to the abundance and low cost of these materials.
Azurite and malachite
Malachite, Cu2(CO3)(OH)2, is perhaps the first vivid green pigment (Bergslien, 2012). A basic carbonate of copper, it is the weathered form of the blue parent mineral azurite, (Cu23+(CO3)2(OH)2), and possesses a similar chemical formula. Azurite and malachite are rarely found exclusive from one another and form in exposed areas of copper ore. Both minerals have a monoclinic crystal structure and a low Mohs hardness of 3.5–4.0. Malachite has been used extensively as a decorative material since antiquity. Azurite’s decorative use has been far more limited by its low durability and high likelihood of breaking along cleavage planes. It has mainly been reserved for pigments.
Possibly the earliest application of azurite and malachite came in the form of cosmetics. Malachite pigment can be traced to ancient Egypt, where it was used as an eye paint during the predynastic period, spanning from 6000 BCE to 3100 BCE (Gettens and FitzHugh, 1993b). Likewise, high-purity, coarsely ground azurite particles have been traced to Neolithic female and infant burial sites at the Central Anatolian site of Çatalhöyük (modern-day Turkey) and dated to 6700 BCE (Siddall, 2018), where the mineral was also likely used as a cosmetic material. The same era saw both minerals used in the Middle East to color soapstone ornaments, beginning around 4500 BCE (Ball, 2002).
Although azurite is far less abundant than malachite, azurite pigment has been utilized more widely. It was the most important blue pigment in Europe throughout the medieval period and enjoyed peak use during the Renaissance (Gettens and FitzHugh, 1993a). This is because of its dual role as not only a royal color but also as an underpaint for the lavish ultramarine (a pigment from lapis lazuli). Both pigments were used for centuries in Japan, in Ukiyoe style paintings (sixteenth through nineteenth centuries; Gettens and FitzHugh, 1993a,b) and malachite in screen and scroll paintings to the present day (figure 8). Historical Chinese artworks also feature the two extensively, spanning hundreds of years.
Copper and copper-containing metals are most commonly associated with bright green patina, a color and pigment material known as verdigris. Chinese history reveals one cunning application of malachite in imitation of verdigris. Beginning around 1000 CE, patina—the surface discoloration
of certain metals from long periods of oxidation—became associated with ancient bronzes unearthed in China (Craddock, 2003). This feature became a sought-after trait among antique bronze collectors, offering a sense of authenticity. Bronze statues excavated and collected during the Song (960–1279 CE), Ming (1368–1644 CE), and Qing (1644–1911 CE) dynasties were often imitated by carefully painting replicas with malachite pigment to achieve a faux patina effect. Blue azurite patina is less prevalent but still possible in specific conditions.
In European easel painting, malachite was vitally important from the fourteenth to seventeenth centuries, until the rise of copper greens such as verdigris and copper resinate (Eastaugh et al., 2004). Synthetic green pigments replaced malachite around 1800 (Bergslien, 2012). Malachite experienced a brief resurgence later in the nineteenth century, and it was during this period that Pierre-Auguste Renoir painted Chrysanthemums (figure 9). Renoir helped solidify the Impressionist movement along with contemporaries such as Monet, Cézanne, Degas, and Manet. Impressionism is distinguished by short, coarse brushstrokes creating a spontaneous unfinished appearance, vibrant color palettes, and themes of nature. The movement was bolstered by readily available premade oil paints in tubes (Newman et al., 2019). This brought unprecedented mobility, allowing pioneering artists to take their work outdoors. The movement thrived from the mid- to late nineteenth century and is considered the most important influence on modern art, since it did not follow established conventions.
One inconvenience drove malachite and azurite into obscurity as pigments: the fact that their color is dependent on particle size (figure 6). Finely ground material offers a preferable texture for canvases but reduces the color to an undesirable milky pastel. Coarse particles offer a radiant hue but are difficult to paint in layers. Azurite became obsolete in the nineteenth century with the invention of the artificial pigment Prussian blue (Gettens and FitzHugh, 1993a).
Lapis lazuli
Lapis lazuli is a complex metamorphic rock consisting of a variety of minerals, often including calcite, pyrite, diopside, amphibole, and feldspathoid silicates, among others. The blue color source within lapis remains an open question. Lazurite is commonly believed to be the blue constituent, but several publications have credited the mineral haüyne. The two minerals, along with sodalite and nosean, are members of the sodalite group. Several studies have shown that haüyne (sulfate member) rather than lazurite (sulfide member) is consistently the dominant species in lapis from Sare-Sang in Afghanistan and Baffin Island in Canada (Hassan et al., 1985; Fleet et al., 2005;
Moore and Woodside, 2014). Meanwhile, specimens from the Coquimbo region of Chile have been characterized as lazuritedominant (Coenraads et al., 2000).
Of all the natural pigments created throughout history, ultramarine, a blue derived from lapis lazuli, reigned supreme. Cennino Cennini was a fifteenth-century Italian painter and author of The Craftsman’s Handbook (1437), an artist’s manual on methods and techniques that remains remarkably relevant today. Cennini held the pigment in the highest regard: “Ultramarine blue is a color illustrious, beautiful, and most perfect, beyond all colors; one could not say anything about it, or do anything with it, that its quality would not still surpass.” During its prime, the blue was deemed so sacred that it was reserved for the most important works and only the holiest of religious figures. Ultramarine was said to be as expensive as an equal weight of gold. Its high cost was due to the inconvenience of only one source location supported by the arduous procedure required to process the rock into pure pigment. Lapis lazuli’s life as a pigment can be traced to the origins of human civilization itself. While blue seems abundant in nature given the color of the sky and sea and other smaller examples, none of these actually contain a blue pigment. Instead, the blue color of the sky is a result of light scattering off the molecules in the atmosphere, called Rayleigh scattering. Sea water is blue due to the preferential absorption of long-wavelength (red) light. The cause of blue in both cases is a result of light physics rather than chemical properties. Only a handful of plants and animals possess a genuine blue pigment. This left few options for artists of the past. Azurite was predominant from the medieval period to the Renaissance (Plesters, 1993). Its limitation is a typically green undertone that cannot be removed. In contrast, ultra-marine often contains a violet to purplish undertone (figure 2), creating an unequivocal color that came to be associated with divinity.
Due to its geological rarity, lapis lazuli sourced in antiquity originated from a single location—the Sare-Sang mines in the Badakhshan Mountains of north-eastern Afghanistan (Siddall, 2018) (figure 11). Lapis mining at Sare-Sang began in the Stone Age, with lapis jewelry found in graves of the Mehrgarh people
Figure 6. Malachite (left) and azurite (right) display contrasting saturations resulting from different particle sizes. The soft pastel saturation shown at the top of each photo is a result of very fine pigment grains measuring an average of 30 μm (malachite) and 20 μm (azurite). The vibrant, strongly saturated variety shown at the bottom of each photo is due to larger, coarser particles averaging 100 μm and 220 μm, respectively. Photomicrographs by Nathan Renfro; field of view 14.10 mm.
(a Neolithic settlement located in present-day south-west Pakistan) dated to 7000 BCE.
Lapis was exported to the ancient Sumer civilization of Mesopotamia around 3000 BCE before arriving in Egypt during predynastic times and becoming prevalent by the First Dynasty (ca. 3100–2900 BCE) (Moore and Woodside, 2014). Egyptians utilized lapis in jewelry and decorative inlays, medicinal preparations, and cosmetic pigments. Perhaps the most famous artifact of ancient Egypt, the funerary mask of the pharaoh Tutankhamun, features a variety of inlaid gems: obsidian, white quartz, lapis lazuli, turquoise, amazonite, carnelian, and other stones (Reeves, 2015). A portion of the lapis inlay serves as Tutankhamun’s eyeliner, a representation of the cosmetic pigment worn by the elite.
The earliest discovery of ultramarine was in oil paintings on cave walls in Bamiyan, Afghanistan, likely created in the late sixth century and consisting of Buddhist subjects drawn in semi-Indian, semi-Persian style (Gettens, 1938). Significantly, this finding also revealed the oldest known use of oil as a binder (Cotte et al., 2008). Ultramarine emerged in Europe during the early medieval period (Siddall, 2018) and rose in popularity into the fourteenth to mid-fifteenth centuries, when it was used heavily in panel paintings and illuminated manuscripts (Plesters, 1993). In paintings from the fourteenth to sixteenth centuries, the highest-quality ultramarine was reserved for the cloaks of Christ and the Virgin Mary (Plesters, 1993). Ultramarine was the most expensive pigment during its prime, meaning it could only be used sparingly (Plesters, 1993). Ultramarine’s popularity was bolstered by the mass publication of the process required to extract pigment from lapis lazuli. Because lapis lazuli is a rock containing various accessory minerals such as calcite and pyrite, the measures used in the preparation of azurite such as simple milling, washing, and sieving were not sufficient (Plesters, 1993). The accessory minerals, especially pyrite, would darken and discolor ultramarine’s brilliant blue if not extracted. Cennini documented the extraction process in The Craftsman’s Handbook , and his method is still used today. It involves repeatedly crushing and sieving the highest-quality lapis. The
powder is then worked into a dough with various waxes and kneaded under a liquid solution of lye. The fine blue particles slowly precipitate out of the dough and into the solution, while heavier materials such as pyrite are retained. Once the liquid has evaporated, one is left with ultramarine. The process can take up to several months –another factor influencing its high cost. The ensuing centuries saw ultramarine blue ascend to unequaled prestige in Europe, and works featuring the color went on to achieve everlasting fame.
While ultramarine most often appeared in Christian art, it was sometimes used to create a picturesque sky on canvas. The sky’s features mimicked those of lapis lazuli, whose scintillating pyrite and globules of calcite in a sea of deep blue resemble stars and clouds. This hallmark is seen in Bacchus and Ariadne, one of Titian’s most famous works, which also incorporates azurite, malachite, and cinnabar.
For a color as fabled as ultramarine, it is only fitting that its decline would also be chronicled. In 1824, France’s Society for the Encouragement of National Industry announced a contest for synthesizing artificial ultramarine, with a prize of 6,000 francs (Plesters, 1993). Four years later, a process was discovered and Jean Baptiste Guimet was named the winner. This synthetic, often referred to as “French ultramarine,” sold for approximately one-tenth the cost of the natural material. In the mid-nineteenth century, it was manufactured throughout Europe and quickly outsold the natural variant, as it still does today.
Bone and ivory
For centuries, bone and ivory have been used to create black pigments. These materials are complex, consisting of both organic and inorganic compounds. Most recent studies have identified the composition as carbonate hydroxylapatite (Eastaugh et al., 2004). When bone or ivory is heated in the absence of oxygen via a closed crucible, black pigment is produced. The carbon source is primarily the protein collagen (Winter and FitzHugh, 2007), which is incorporated in the matrix of the material.
Bone is one of the oldest known gem materials. Recently, archaeologists discovered a more than 46,000-year-old aboriginal nose ring made of bone at a site in Western Australia, the oldest bone implement found on the continent (Langley et al., 2016). A variety of animal bones have been used as pigment source material throughout history, including cattle and lamb and possibly even human remains in earlier centuries (Finlay, 2002). Documents from the current largest producer of bone black pigment in the United States, Ebonex Corporation, specify charcoaled cow bone as their source material (Ebonex Corporation Activity Report, 2018).
The Roman naturalist Pliny the Elder credited the development of ivory black to Apelles, the most notable painter of ancient Greece, though none of his works have survived (Pliny, 77 CE). As the name implies, genuine ivory black was created from ivory wastes. These wastes were in relative abundance from the fifteenth to nineteenth centuries, as ivory was widely traded throughout many parts of the world. It was fashioned into jewelry, tools, weapons, containers, musical instruments, billiard balls, and other novelties (Smithsonian National Museum of African Art, 2019). Ivory black pigment was manufactured until the end of World War II (Kremer Pigmente, 1985). Due to species protection measures, all ivory black sold on the market today must be sourced solely from old stock (Kremer Pigmente, 1985) or be composed of high-grade bone black (Winter and FitzHugh, 2007). Ivory black is reportedly more intensely black than bone black, but this is arguably due to the pigment simply being more carefully made, since ivory has always been more scarce than bone (Winter and FitzHugh, 2007). Ivory was also used for paint palettes in previous centuries.
Bone black has been found in prehistoric, Egyptian, Greek, Roman, medieval, and Renaissance art (Coles, 2018). Optical microscopy revealed its use on gravestones in ancient Greece from the third to second century (Winter and FitzHugh, 2007). Ivory and bone black have been scientifically identified in western European art dating from at least the fifteenth century into the twentieth century, including works by Tintoretto, Rubens, Rembrandt, Manet, and Renoir (Winter and FitzHugh, 2007). An extensive analysis of works in the Museum of Pablo Picasso in Paris concluded that 62 of his paintings contained either ivory or bone black (Winter and FitzHugh, 2007). Modern artist Kazimir Malevich, who founded the Suprematism movement and (along with Picasso) helped propel and popularize abstract art, featured ivory black in his signature geometric style.
The process for creating white pigment from bone can be duplicated in the presence of oxygen. Essentially the ash that remains after all organic material has been destroyed, bone white was first used in the Neolithic period (Coles, 2018), primarily as a paper preparation in metalpoint drawing. In this technique, a soft metal writing utensil (silver, gold, or copper) grazes across a paper that has been primed, usually with bone white pigment mixed with rabbit skin glue. Bone ash possesses a slightly abrasive quality, allowing the metal to exfoliate and adhere to the primed surface, similar to a modern graphite pencil against paper. Graphite eventually became more popular because it was easier to use, causing metalpoint to fade into obscurity. While bone ash has little use as a modern-day pigment, bone black is still sold at art stores.
Cinnabar
Cinnabar (HgS) is an intensely colored mercury sulfide mineral and the principal ore of mercury. It is not abundant in the earth’s crust, and only a handful of important deposits occur in Europe, the Middle East, and Asia. It is usually found with a massive habit, though well-formed, gem-quality single crystals are occasionally discovered (figure 2). Its hue is a strikingly vivid red with a strong orange component, unlike the comparatively dark and common red ochre. In its simplest form, cinnabar’s color is derived from simply crushing and grinding the mineral in a stone mortar. A synthetic form, commonly referred to as vermilion, has existed for several centuries and is obtained from synthesizing mercury and sulfur. After ultramarine, cinnabar was historically the most valuable and prestigious pigment in the trade, with Spanish and Chinese sources being the most significant (Siddall, 2018).
One of the earliest uses of cinnabar as pigment was in the Middle East in Çatalhöyük, an early human settlement from 7100 BCE to 5700 BCE, where it has been found in paintings and burial contexts (Çamurcuoğlu, 2015). Of the more than 800 Dead Sea Scrolls discovered in Israel and considered the world’s earliest copies of biblical books, four fragments have been shown to contain red ink composed of cinnabar (NirEl and Broshi, 1996). Ancient Romans indulged in the use of the pigment in wall paintings, assigning it great importance and sacred associations (Spindler, 2018) (figure 18). Pure cinnabar pigment could turn black when exposed to light, prompting the Roman scholars Vitruvius and Pliny the Elder to use a coating of oil or wax in their work (Eastaugh et al., 2004). Recent studies have shown that this discoloration is actually associated with cinnabar that has either been exposed to halogen or contains traces of chlorine (Eastaugh et al., 2004).
Cinnabar also experienced a widespread cultural diffusion in China. During the Shang and Zhou dynasties (1600–256 BCE), it was used for strewing of remains in grave burials, presumably to preserve the dead (Gettens et al., 1993). Treasured in Chinese alchemy, cinnabar was an important ingredient in recipes for preparing the philosopher’s stone (a mythical substance believed to turn common metals into gold) and medieval pharmaceutical elixirs (Gettens et al., 1993). Traditional Chinese medicine prescribed powdered cinnabar to treat a variety of medical conditions including skin infections and intestinal disorders (Liu et al., 2008). Many of these cinnabar remedies are still used in Chinese medicine. Cinnabar pigment was used considerably in Chinese lacquerware—a material that dates to 7000 BCE and is still produced today (Siddall, 2018). Lacquer is a resin primarily sourced from the tree species Toxico-dendron vernicifluum. When exposed to oxygen and dried, it transforms into a natural plastic that is resistant to heat and water. Lacquerware is created from a base of turned wood with 30 to 200 layers of lacquer applied (Metropolitan Museum of Art, 2009). Once hardened, lacquer can be elaborately carved into geometric motifs or extraordinary representations of earth, water, or sky (figure 19). These items were most often colored
red and became known as “cinnabar lacquer.” Vermilion is an artificially created cinnabar that can be produced through either a wet or dry process. The dry process may have been invented in China before spreading west through Arab traders, with the first documentation of this process originating in the eighth century (Gettens et al., 1993). Medieval recipes for dry-process vermilion involve combining mercury with molten sulfur and heating until the compound sublimes and condenses. The final product is a red crystalline modification of mercury sulfide. It is then treated with an alkali solution to remove free sulfur, washed, and ground under water in preparation as pigment. The wet process, discovered in the seventeenth century, calls for the combination of mercury sulfide and a heated solution of ammonium or potassium sulfide. This process was more cost efficient and became the favored method of vermilion production in the West. Obscure in the eighth century, vermilion had become mainstream by the fourteenth century (Gettens et al., 1993). Unlike malachite and azurite, cinnabar and vermilion are strong light absorbers whose colors are preserved at all particle sizes.
Vermilion was an important color in illuminated manuscripts as it was used to paint the rubricae (text written/printed in red ink for emphasis) and imagery. It became a staple from the fourteenth century onward (Gettens et al., 1993), appearing in the works of Vermeer (figure 14), Titian (figure 15), and Degas (figure 20). In the early nineteenth century, cadmium red was introduced and began to take the place of vermilion (Melo and Miguel, 2010), which had already surpassed cinnabar in production and usage. Cadmium pigments have since become the standard for brilliant, lightfast, and weather-resistant yellow, red, and orange paints.
Conclusions
Many historical pigments led double lives as gem materials, and both commodities have retained value over time. While the beauty of gems is appreciated by society, art viewers are often unaware that acclaimed paintings from the prehistoric to postmodern eras feature colors obtained from ornamental materials. Pigments and gems are further intertwined by their ability to reveal anthropological information about humankind’s comprehension of the natural world. With a better understanding of chemistry, the synthesis of both pigments and gemstones inevitably followed. The availability of a variety of gem materials shaped the development of pigments, which in turn shaped the history of art. As art is merely a psychological reflection of and reaction to our environment, the conversation of art has contributed to the shaping of humankind itself.
GEMS & GEMOLOGY, Vol. 58, No. 3, pp. 318–337, Visit http://dx.doi.org/10.5741/GEMS.58.3.318 for the full article, about the author, acknowledgments and references.
Green gemstones are cherished for their vibrant hues and symbolic meanings. These stones, ranging from precious green coloured gemstones to green semi-precious stones, have fascinated people for centuries. The allure of green gemstones lies in its rich, verdant colour, often associated with nature and renewal.
Emerald Emerald, the May birthstone, is probably the first green gemstone that comes to mind – and with good reason: emerald was cherished by Egyptian pharaohs, Inca kings, Spanish conquistadors and the Mogul rulers of India. It still casts its spell on gem aficionados and the fashion-conscious.
Jade
Jade has been cherished for thousands of years, but did you know that what we term “jade” today actually covers two different gem materials? Jadeite and nephrite are both metaphoric rocks made up of tiny interlocking mineral crystals. (Metaphoric rock is rock that has been subjected to very high heat and pressure.) This structure of interlocking crystals makes both varieties of jade exceptionally tough – one of the factors that accounts for the gem’s durability.
RADIANT GEMSTONES
Peridot
Found as nodules in volcanic rock, occasionally as crystals lining veins in the mountains and sometimes even in meteorites, peridot is sometimes called the “extreme” gem. The presence of iron causes its colour. Fine-quality peridot ranges from saturated green to slightly yellowish-green which is free of brown tints, often seen in specimens weighing 10ct or more. Smaller stones sometimes show yellow-green to greenishyellow hues and brown undertones.
Demantoid garnet
Garnets come in a wide range of colours, with demantoid, a variety of andradite garnet, being one of the most stunning green gemstones around. “Demantoid” means “diamondlike” and, with its vivid green colour and spellbinding dispersion (flashes of spectral colours refracted back from the stone),
it has qualities bound to charm. The gem ranges in colour from yellowish- or brownish-green to a very rare, intense green hue that rivals the beauty of emerald.
Tsavorite
Tsavorite, a variety of grossular garnet, was discovered in the 1960s and in a few short decades, it has become a popular choice for green gemstones because it is durable and usually free of inclusions. The presence of the element vanadium produces tsavorite’s range of colour – a spectrum ranging from bluishgreen to yellowish-green. Vivid, strongly saturated bluish-green to green tsavorites are prized over yellowish-green ones. Tsavorite gets its name from the Tsavo National Game Park in Kenya. Tanzania is another important source of the gem.
Green
diamonds
Natural green diamonds are doubly alluring: they are breathtakingly beautiful and a little complicated. These exceedingly rare beauties get their colour from exposure to radiation. Since the diamond’s exposure to natural radiation can be replicated in a laboratory setting, gemmological detective work is required to determine whether the colour is
Green diamonds are among the rarest diamonds in the world Normally, colour in gemstones is caused by the introduction of additional elements. For example, the substitution of boron or nitrogen atoms for carbon in the diamond crystal lattice can cause blue or yellow colours, respectively. However, when it comes to green diamonds, the colour is often the result of something peculiar: exposure to radioactive minerals or fluids in nature, or artificial irradiation in a laboratory. Such radiation knocks carbon atoms out of place in the crystal structure. This generates vacancies, which are essentially vacant sites where the carbon atoms are absent. The cause of colour for many green diamonds is caused by the vacancy defect, also known as the GR1 centre in diamond. Other defects involving nitrogen, hydrogen or nickel impurities can also cause green colours, but these are less common. Green diamonds can be sourced from all major diamond-producing countries, though only in smaller quantities, and are found in kimberlite and secondary alluvial sediments. The notable green diamond sources are Brazil, Guyana, the Central African Republic and to a lesser extent, India.
natural or treated. Green or brown surface stains may be an indication that the diamond is a natural colour. It is not always possible to determine the cause of colour in green diamonds.
De Beers to stop producing labgrown diamonds for jewellery
De Beers will cease creating synthetic diamonds for its Lightbox consumer brand in a strategic revamp that will also see it manufacture and sell natural polished stones
“WE BELIEVE THAT THE VALUE OF LABgrown diamonds lies in technology, rather than in jewellery,” said De Beers CEO Al Cook at the company’s recent JCK Las Vegas breakfast event.
The miner’s Element Six business will streamline its three chemical vapour deposition (CVD) plants, merging them all into its US$94 million facility in Portland, Oregon, USA. That plant will pivot into a technology hub which produces diamonds for industrial applications, executives explained.
De Beers aims to turn Element Six into “the leader in synthetic-diamond technology solutions”, said Cook. “This starts with concentrating all our resources in a single world-class CVD hub.”
The announcement calls time on De Beers’ six-year experiment of producing its own lab-grown diamonds
for the Lightbox jewellery line, which launched in 2018. Prior to that, Element Six had been synthesising diamonds for industrial and research purposes.
During those six years, prices for labgrown diamonds collapsed, leading to thinner retail margins in dollar terms and making the category less appealing to jewellers. De Beers also received backlash from the industry at various points, notably when it briefly tested lab-grown diamond engagement rings.
In May, Lightbox reduced retail prices by up to 40%, reflecting developments in the sector.
Pivoting, not dropping
Lightbox will continue to operate as a consumer brand after the transition, which will take place in the next few months, said Cook in a recent separate interview with Rapaport News
The brand has enough inventory to keep sales going for the “foreseeable future”, after which it will make a decision on how to proceed, he explained. Discarding the line is not among De Beers’ considerations.
“Core to the Lightbox proposition has been [that it’s] carbon-neutral,” added Cook. “We’re very proud that it’s made in the USA. We intend to stick with that element of the brand.”
The choice to refocus on natural diamonds – part of the company’s new “Origins” strategy – will see De Beers reinvigorating category marketing, including through retailer partnerships.
This follows its recent team-up with Signet Jewelers, which includes training sales associates to sell consumers the natural diamond story. De Beers will also roll out Diamond Proof, a new in-store instrument for detecting labgrown stones.
The announcement calls time on De Beers’ six-year experiment of producing its own lab-grown diamonds for the Lightbox jewellery line, which launched in 2018.
DIAMONDS
Contract model
Nestled within the extensive strategic plans De Beers outlined was a plan to manufacture some of its own natural rough diamonds via contractors and then sell the polished ones, capitalising on the traceability of its goods.
Its Tracr provenance platform “will allow us to venture into the sale of premium polished diamonds with an unrivalled storyline starting at the source”, explained Cook.
De Beers will sell these under its traceable Code of Origin brand and develop its Origin Story programme, a digital product providing detailed provenance information and a “rarity score” for each stone.
The company has not determined whether it will sell these diamonds primarily to retailers or directly to consumers. It will use a minority of its rough production for the programme and the contractors will include sightholders, Cook reported. At present, De Beers sells around 90% of its supply through the sight system.
“This is about an ‘and’, rather than an ‘or’,” said Cook. “It’s about a minority. It’s about an opportunity. As a business, we sit on US$1,7 billion of rough inventory as of our last financial results, so we’re very confident that
we can meet every need [for] every one of our sightholders and do this on top.”
Clarity upgrade
The announcement came under the shadow of De Beers’ impending separation from Anglo American, which owns 85% of the company. Recently, miner BHP abandoned talks with Anglo American regarding a takeover of the group. That decision “provides clarity that we’ll advance the plan that Anglo American announced several weeks ago”, said Cook, referring to the 14 May announcement that it would divest or de-merge De Beers.
Anglo American assumed control of De Beers in 2011, meaning that “for 124 of the 136-year history of De Beers, we haven’t had Anglo American as a majority owner”, the CEO pointed out. “So [parting from it] literally doesn’t affect a single aspect of our operations or a single aspect of our strategy.
“The future of diamonds lies as much in marketing and retail as it does in mining. So separating from Anglo American, which is a mining company, enables us to really have strategic flexibility to deliver our full value.”
De Beers also announced the following developments:
• The company will pause all operations in Canada, except for its Gahcho Kué mine, prioritising investments in highreturn projects such as the ramp-up of the Venetia underground mine in South Africa and the progression of the Jwaneng underground mine in Botswana. Exploration will focus on Angola.
• It will dispose of non-diamond assets and non-strategic equity holdings and defer non-core projects. These will help it progress toward $100 million in annual cost-savings.
• It will negotiate a new set of supply contracts with sightholders during 2025.
• As of 2024’s second half, the miner will stop publishing sight-by-sight sales results, shifting to more detailed quarterly reporting. Industry members and investors had requested “more transparency and less frequency”, said Cook.
• Forevermark will refocus on the Indian market.
• The company will scale up and “evolve” De Beers Jewellers, its higher-end consumer brand. “The brand’s a bit cold today –I’d say a little engineered,” said Sandrine Conseiller, CEO of De Beers’ brands, at the JCK event, “so we need to make it much more emotional and really unleash the true personality of De Beers Jewellers.” It will launch its first flagship store in Paris on the prestigious Rue de la Paix. –Rapaport
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