The government of Greenland has given Canada's True Northe Gems Inc. an exclusive 30-year mining license for the Aappaluttoq ruby deposit in Greenland. The license will become effective on March. Under It, True North has agreed to pay a gross revenue royalty to the government of the country of nearly 6 percent on all sales of rubies and pink sapphires mined from Aappaluttoq. The mine will be An open pit, and over its initial 9- year life will create up to 80 jobs in Greenland ranging from mining operations at the Adppaluttoq site to gemstone grading in the Nuuk Processing Facility.

     An exceptional vivid blue 29.6 carat diamond purchased by New York luxury diamond brand Cora International LLC is being displayed at the International Rough Diamond Week at the Israel Diamond Exchange. The diamond was recovered by Petra Diamonds Limited at the Cullinan mine in South Africa and purchased by Cora International for approximately $25.6 million.

    Including a direct sale of the two lowest grades of beryl, total revenues in the financial year-to-date from rough emerald and beryl sales are at $96.4 million, a record revenue year for Gemfields. There are two more auctions scheduled to take place before the year is over, including the inaugural auction for rough rubies and corundum from the Montepuez ruby deposit in Mozambique.

    How we came to be here, 100 years after incorporating, is truly an American success story. The founder of our company, Paul H. Gesswein, came To America with his parents when he was in his early teens. His arrival in the USA typified the sfruggle that many immigranfs faced in becoming self-sufficient.

    As a teenager, Paul took a job working in a hardware store and soon found that he had many requests from nearby craftsmen for high quality small size precision tools. Recognizing a unique opportunity, in 1914 he decided to start his own business. He began by imporiing European tools and initially concentrated on local customers, who visited the store to make purchases. The original focus of the business was to supply tools and equipment to the thriving jewellery and silversmith industries in New York and BosTon. Afier more people heard about his precision tools, requests from other parts of the country came in. That's when Paul decided to produce a book of tools and supplies that he could mail to those who couldn't visit the store — and our first catalogue was born.

    By the 1930s, the Paul H. Gesswein Company, inc. occupied one room in a building on Maiden Lane in lower Manhattan. Paul made The sales calls while one employee manned the phones. Some of the larger factories had a tool room and needed many other specialized products. Our 1943 tool and Die Makers Catalog illustrated mounted stones, India stones, files, saws, burs, brushes, eTc. ltems sold then were predecessors to the ones we offer in today's catalogue.

    The Paul H. Gesswein Company, lnc. began to grow, expanding as quickly as space became available in The Maiden Lane building. By 1950, the Paul H. Gesswein Company carried over 1,000 items. In our General Catalog of 1952 we first see our mouldmakers finishing stones (silicon carbide), which were used by the fledgling Bakelite mouldmaking industry. During the 1950's plastic injection moulding came about and grew very quickly. It became apparent that different types of finishing stone needed — harder, soffer, aluminum oxide, etc. Today ceramic on Traditional stones are used with mechanic ulfrasonic finishers. These measurably inc productivity and overall mould finish qualify.

    In 1963, the company finally outgrew its available space. We moved uptown a couple of miles to Park Avenue, beginning with 5,000 square feet space. As the decade progressed, so did we. Three years, another generation of Gesswein members had entered the business. We were Park Avenue, but we were renting another floor and part of a third to store eauipment. Even with the space, we had at least two employees short same desk, alternating their workdays in the another move was clearly in the offing. Ultimately decided on Connecticut, designing and constructing our own home office here, later acquiring first adjacent building and then another.

    Until roughly 50 years ago, we focused primarity an domestic sales. Paul's son, Roger H. Gesswein then Europe to call on suppliers and recognized a market. He soon established numerous which continue to this day with European who realized, like Their American the advantages of using our unique, products beginning a new era of sales. The Paul H. Gesswein Company, come a long way from that one-room walk- on Maiden Lane.

Today, we offer over 16,000 items to a large of jewellery manufacturers and mould polishers around the globe. Even with this however, we are still loyal to The vision Paul century ago. We are consTanly adding new products to help the metal (precious tool steel) and woodworking indusTries, and instantly be seen on our interactive website

    New technology is a blessing and so are synthetic diamonds. New ways of doing things and new products are opportunities. They force change and growth, which is a good thing. The real story isn’t just about the direct impact of new products such as synthetic diamonds, but the consequences of how new affects old. If new or technologies are more profitable or efficient, Markets are Darwinian. They are about of the fittest and by the fittest we mean the most of adapting to a new environment. the impact of a forest fire. It burns down trees whose shade has blocked sunlight and the growth of small, new trees. The heat from pops the acorns from the big trees and scatters The ashes from the large burnt trees fertilize the growth of new seedlings. So are forest or bad‘? Whatever your perspective, they are and they are nature’s method for achieving development.

    Consider the impact of a forest fire. It burns down trees whose shade has blocked sunlight and the growth of small, new trees. The heat from pops the acorns from the big trees and scatters The ashes from the large burnt trees fertilize the growth of new seedlings. So are forest or bad‘? Whatever your perspective, they are and they are nature’s method for achieving development.

    In the case of synthetics, new technology our values. lt’s not just about how ?exible, and forward thinking we are. It’s about how are. Synthetics are a way of testing our individuals and as a community. And it’s Consider the internet and the direct provides us to tens of thousands of B2B and millions of new consumers. The internet at the cost of significantly greater price transparency, which can reduce profit what do we do‘? Do we use technology to m find new ways to add value to our products ant ourselves? Or do we use the internet to sell diamond: with grading reports that overstate the quality of ou diamonds and enable us to mislead consumers Technology brings out the best and worst in us. It ca be used for good or evil. There is no free lunch.

Synthetics
    Our ability to create synthetic diamonds is drive by a world of technological innovation that is we beyond the scope of the jewellery industry. Growir diamond crystals enables new, sophisticated lasers th can be used for everything from surgical tools to “St Wars” warfare. There is also the opportunity for sup cyber computers that store information at the aton level, as well as a cornucopia of other technologi advancements based on the unique properties diamond. Synthetic diamonds and the rapidly developi technology to create and perfect them are here to stay.

    But what about the jewellery industry? Will availability of synthetic diamonds destroy the mar for natural diamonds? Will diamond supplies- misrepresent synthetic diamonds as natural diamonds and thereby destroy the added value created by the authenticity and scarcity of natural diamonds?

    There are persistent and credible reports that synthetic diamonds are being sold as natural diamonds. The misrepresentation and fraud of synthetics takes many disguises. In India, synthetic diamonds are mixed into parcels of natural diamonds and sold by diamond manufacturers, brokers and dealers as natural diamonds to unsuspecting buyers who then export the mixed parcels overseas. In China, there are reports that jewellery manufacturers are selling jewellery set with synthetic diamonds as 100 percent natural. An even more insidious approach is being taken by companies that are reportedly buying original Gemological Institute of America (GIA) grading reports and then creating synthetic diamonds to match the reports.

    In some instances, they are even laser-inscribing synthetic diamonds with the GIA logo and grading report number. So how can the diamond industry protect itself against fraud and misrepresentation? How must we change the way we trade diamonds? And what about our customers’ customers — the consumers? Who is protecting them?

The 4DS
    Differentiation, Detection, Disclosure and Documentation. The key to resolving the challenges presented by synthetic diamonds is our ability to differentiate natural diamonds from synthetic diamonds. While treated diamonds present similar issues, they are beyond the scope of this article due to their extreme complexity. As first presented in our article “Trust” published on May 6, 2002 (online at Diamonds.Net/Synthetics), differentiation is reliant on disclosure and documentation. The synergistically reliant on each other. If we synthetic diamonds, then the price of natural will fall to the price of synthetics. Furthermore, cannot help us without disclosure. If consumers and sells ex ex ‘sakes: Qmeg without testing and can’t be certain that natural. Simply put, 4Cs.

Detection
    A prerequisite for ensuring the added value of natural diamonds is our ability to authenticate them. Fortunately, the De Beers DiamondSure® and DiamondView® instruments can currently identify individual diamonds over 0.01 carat as natural with a 100 percent confidence level. Members of trade are encouraged to read the November 8 letter from Philippe Mellier, chief executive officer (CEO) of the De Beers Group and the highly informative booklet from De Beers entitled "Undisclosed Synthetics - What you Need to Know," available online at Diamonds.net/Synthetics.

    While the technology of detecting synthetic Diamonds has so far kept up with their creation. It is prohibitively expensive to test every diamond in a parcel of small melee diamonds or in set jewellery. The obvious solution is statistical sampling of melee parcels and jewellery with a zero tolerance level for any synthetics synthetics in a parcel sold as natural. The De Beers planned introduction of an Automated Melee Screening (AMS) instrument by the second qurter of 2014 is an important positive development.

    The AMS instrument Wlll test diamonds from to 0.01 to 0.20 carat at the rate of 360 stones per hour and will be available to sightholders on a three-year $25 000 per year. We commend De Beers for the initiative on synthetic testing and strongly to make the AMS instrument available to particularly laboratories, as soon as posible.

    The GIA has also announced that it wlll be members of the World Federation of Diamond (WFDB) with instruments that are able to test diamonds at high speed. Expected delivery GIA instruments is February 2014. When it to synthetics, detection is not the problem In s a solution, because our ability to detect is a deterrent It lets us catch the bad guys diamantaires and their companies are less pepper their parcels with synthetic diamonds if a reasonable chance they will get caught.

Disclosure
The need for full disclosure regarding the sale of diamonds is an obvious and legal requirement recent reports about the illegal sale of mixed of synthetic and natural diamonds without the WFDB has taken the position that synthetics is not enough There is a new that all natural diamond sales now require statement that the diamonds are natural words, when buying diamonds, you can no assume they are natural The WFDB Required Statement The diamonds being invoiced are diamonds and not synthetic unless otherwise wnting This statement is based on personal and/or written assurances provided to us by the suppliers of the diamonds and does not exclude any required disclosure regarding treated diamonds.”

    The problem with the WFDB’s natural diamond disclosure statement is that it is “based on personal knowledge and/or written assurances provided to us by the suppliers of the diamonds.” This language, partially lifted from the Kimberley Process statement, allows diamond suppliers to make claims that diamonds are natural based on statements by other suppliers who in turn base their statements on statements by yet other suppliers. In the case of mixed parcels, these statements are misleading since no one knows who sold what to whom. Such chicanery might work in the case of the Kimberley Process, where you can get away with selling blood diamonds because there are no instruments for testing them. But that is not the case with synthetics. You can test synthetics. So what happens when the WFDB statement is duly rubber-stamped on the invoice, a retailer relies on the invoice statement and then a consumer sends the diamond to an appraiser and finds out it is synthetic?

    Consider an order for 300 tennis bracelets, each containing 20 round, 5-point (2.4 mm) J, VS1 diamonds. That’s 6,000 individual diamonds of a very specific size/quality. Very few suppliers have that many specific diamonds. The way the current market works is that the company handling the order has its broker locate stones from other suppliers. A chain reaction of transactions then takes place as the market tries to fill the order. Some of the goods may come from other dealers who have collected such stones over time from numerous small cutters. Diamonds change hands rapidly, with the same stones being transacted many times. Furthermore, the stones are moved from parcel to parcel, mixed and remixed as inventories are adjusted.

    With over 350,000 cutters and 2,500 factories in Surat, India, where about 90 percent of the world’s diamonds are cut, does anyone think that every 5-pointer will be tested every time it changes hands? There is no Way a dealer can track the source of every melee stone in his parcels. If we Want legitimacy in our diamond markets, we have to stop faking it with statements on invoices that indicate everything is okay, even when things are not okay. We must realistically accept the limitations of our open markets and the needs of our smaller diamond traders. We must accept the fact that in the open markets for diamond parcels, dealers often have no idea where their diamonds come from, who sold them each stone and if the diamonds are natural or synthetic. Requiring everyone to rubber- stamp their invoices that diamonds are natural based on statements made by untraceable people for untraceable goods is not the way to go.

Just tell the truth
    To honestly solve the problem, we must accept and recognize that different situations require different types of disclosure. Statements on the invoice should be straightforward, informative and example: 1) “Synthetic Diamonds”; 2) “Parcel mixture of synthetic and natural diamonds”, AS-IS” or “Diamonds of unknown origin, May contain synthetic (or treated) “Natural Diamonds. Tested and sealed by Company that did the test), (list of equipment test).” And if it has only been sampled, state Tested” and indicate percent tolerance and level. The solution is really very simple. should just tell the truth. If you don’t know if diamonds are in your parcel, then write on your _ “Sold AS-IS. Not tested.” The market will adjustf for tested and untested parcels and traders will 1 when they should test to add the most value.

    Testing procedures can take place at any point in the supply chain. However, if diamonds are ~35 as natural to consumers, proactive disclosure testing should be made before such sales, with the? of custody documented from the testing to the counter. It should be clear that while B2B dealers try and play the “I didn’t know” game, there is Hi a retailer can tell a consumer that he didn’t diamonds being sold as natural were in fact syn‘ We must recognize the fact that the buck stops is retailer. No excuses. No stories. In order to main credibility of our industry, our trade, our diamonds? ourselves, we must ensure that retailers and 100 customers are 100 percent protected. We must 'I that jewellers can honestly sell natural diamonds.

Differentiation
     There is a lot of talk about disclosure requirements for synthetic diamonds, as If the synthetic diamonds is to be blamed for being dishonest. In fact, it’s not just the diamonds that need to be tested and disclosed, it’s us — the diamond trade. If we want to separate natural diamonds from people. A culture of “It’s okay to lie, cheat and not play by the rules has been allowed to develop. While I am a great liever and supporter of free markets, I strongly condemn laissez-faire ethics.

     The diamond trade has been greatly damaged by ased destruction of our level playing field. Companies that buy diamonds significantly below market prices because they bribe a foreign government official, deal if? blood diamonds, ignore money-laundering and tax regulations or even pepper their parcels with synthetics allowed to prosper. How can an honest company with companies that don’t play by the rules?

     In a freely competitive market, if one company do we all have to bribe to stay competitive? If mixes synthetics with natural, don’t we all have to ynthetics‘? Can normal companies afford to be By now it should be clear that evil is not just Evil forces other people to be evil. Evil is It’s unfortunate that the diamond trade has used to “getting away with it” when it comes tc rights abuses and the Kimberley Process. Now think they can “get away with it” when it comes as well. Since we did not establish a secure ethical industry wide supply chain when we should have, the leadership is now being forced to deal with supply chain issues in crisis mode. l is also unfortunate that after all th?sl years, in spite of the fact tha thousands of innocent people havi suffered due to human rights abuse linked to diamonds, not one perso was expelled from the trade. Thi raises serious questions abou whether the diamond industry i capable of policing itself. Are w capable of expelling companies and trade member who sell undisclosed synthetic diamonds?

     While naming, shaming and blaming frauduler flinzmio misvpcme. think we can clean up our entire industry. I also don think it is efficient and cost-effective for the goo people in our trade to spend their time and energ chasing all the bad people all over the world. What w can, should and must do is take the high road. We mu: create a new, higher level playing field that promote and supports those that have honest ethical values. W must create markets that empower the good people.

Documentation
     Given the fact that we can no longer assume th. a diamond is natural, you must have a properl documented basis for affirmatively stating “Natural. Diamond” on an invoice. Documentation need not l difficult or burdensome. Proof that a diamond is natur can be established by a document from the manufacturi or tester. If the seller is doing the manufacturing or testing, an internal document will suffice. In any cas the document should sufficiently identify the specific diamond or parcel of diamonds, as well as who tested it and when it was tested.

     In the event that the diamonds were manufactured, or tested by a third party, reasonable chain-of-custody standards should be applied to ensure that the diamonds have not been switched. Direct delivery or tamper- proof sealing is recommended. While gemmological descriptions are helpful, beware of absolute reliance on grading reports. In some instances, synthetic diamonds have been cut to exactly match original GIA reports. Unsuspecting buyers were tricked into thinking the diamonds were natural due to the grading reports.

Market Impact
     The sale of synthetic diamonds as natural diamonds creates significant disclosure problems for retailers. Retailers are held to a higher standard of responsibility because their customers are consumers who have less knowledge of diamonds than B2B buyers and sellers. Furthermore, misrepresentation of diamond authenticity by retailers incurs significant liabilities and will destroy their brand credibility if allowed to persist.

     While the extent of synthetic diamond infiltration into the natural diamond supply chain is not yet known, retailers are advised to investigate their sources and confirm the authenticity of the diamonds they buy sell. Sample testing of diamond parcels and jewe Q particularly if they originated from China or India, " good idea. In the event that specific jewellerys have been found to contain synthetic diamo. consumers who purchased such jewellery in the »~ need to be informed and new disclosure statem should be implemented. A key point is that retailers no longer assume that diamonds are natural. Resp0n'= retailers should confirm the authenticity of th diamonds through sample testing and writ authentication from their diamond or jewelli manufacturer. Retailers with questions about the integril of their supply chain should ask questions andg reliable answers.

     The challenge created by the undisclosed S3164 synthetic diamonds has the potential to upendtl market for smaller natural diamonds. Should the lev of undisclosed synthetic sales reach a critical mass an or the cost of testing every stone become too hig many retailers will not be able to ensure that the diamonds are natural. This will require public disclosu by retailers that the diamond they are selling may be natural or synthetic.

     When it comes to inexpensive diamond jewella the marketing of synthetic diamonds in combinati with or instead of natural diamonds may becox acceptable if trade is to be more honest. They Willf01 us to control our supply chain and finally ta responsibility for the products we buy and sell. Th are good because they are a new product categorytl will increase industry profits.

     Synthetic diamonds are also good for the natu diamond mining sector. Diamond miners will now forced to aggressively differentiate natural diamonds through innovative marketing, and advertising campaigns. They are going » explain to consumers why they should pay iatural diamonds. Instead of telling everyone l value, miners who want to obtain a premium synthetics will now be forced to add value to amonds. Lhetic diamonds will give new meaning to the ipplier of Choice.” The issue before us is not ynthetics are “Up To Diamonds,” it’s whether ttion is difficult and synthetic diamonds are s expensive. Retailers will question why they at avoid reputational risk and increase profits g synthetics. The infiltration of synthetic into the natural diamond pipeline is creating ities and new opportunities for synthetic s. Legitimately or illegitimately, synthetic . are sneaking their way into retailer showcases. diamonds are on their way to the slippery legitimacy. nsidering the long—term implications, the sale :tic diamonds does not represent an economic retailers, diamond dealers or even diamond rho can switch to cutting synthetics. These :an make profits by selling synthetics. In fact, I make more profits since synthetic diamonds more merchandising and product category ities at much more affordable price points.

Synthetics or Naturals
    Synthetic diamonds are a good thing. They are * the diamond industry because they will force marketing and value differentiation of natural 4 diamonds Will be “Up To Diamonds.” And now for the really good news. Natural diamonds are hot. While synthetic diamonds can try to get a free ride on the real thing, they will never be the real thing. Make no mistake about it, natural diamonds are better than synthetic diamonds and easier to sell. All we have to do is stop taking our natural diamonds for granted and start setting them against synthetics. The idea that natural diamonds are special, unique and naturally scarce is fundamental to their value and the values they communicate. That flies in the face of the idea that diamonds are a manufactured product with unlimited supply.

    Consumers subconsciously empower diamonds with symbolic values that they then project onto themselves and each other. “You are special, unique and rare,” communicates the diamond to the woman. The gift of commitment is the expensive diamond, because she is worth more than money.

Real Love = Real Diamonds TM says it all.