"Cutting as a factor in stone evaluation"

SLIDE 1 - TITLE

Cut as a factor in gemstone valuation in tomorrow's market

Dear ladies and gentlemen!

СЛАЙД 2 — GEMQUEST

I previously discussed the topic of this presentation at the AGA conference in Tucson in February of this year and at Gemquest in Mallorca in April. The latter event featured online access. 760 subscribers from 22 countries were able to listen to the presentations live. Feedback from conference attendees and guests indicates that the topic is relevant and engaging.

There aren't many well-cut gemstones on the market today. Striving to extract as many carats as possible from a rough piece, using various permitted and prohibited techniques to incorporate one of several "classic" designs into it, and by avoiding (at the expense of symmetry!) visible inclusions, the cutter gives the stone a more or less finished look.

SLIDE 4 – INCORRECT PROPORTIONS

A proportionally cut gemstone weighs less than a barrel-shaped stone with a convex pavilion. Since every carat of weight represents real money, cutters and sellers tend to overlook optical imperfections.

SLIDE 5 – CONVEX PAVILION

As a result, most stones produced by such cutters have a "window" through which objects behind the stone are visible. The area around the "window" appears dark, reflecting the surrounding environment—consequently, the angle of the side facets near the girdle is excessively steep. This approach to cutting, as we have seen, has become the norm.

A curious trend is emerging. The cutter's primary goal is not to make a stone more beautiful while maintaining its weight, but to make it heavier while maintaining its beauty. However, the high price of precious stones is determined not only by their rarity, but above all by their beauty and the durability of that beauty. The primary reason for the stones' high price is sacrificed to its own consequence—the price itself—and commercial considerations prevail over aesthetics.

We will now leave the gemstone market for a moment and turn to the related jewelry market.

SLIDE 6 - ABORIGINE

Yes, there was a time when a person's status was determined by the weight of gold hanging from their neck. Yes, even today, simple jewelry made on automated lines is sometimes sold by weight. But today, wealthy people are attracted to the sophistication and originality of design, the harmony and beauty of jewelry, and the perfection and precision of its execution.

Let's go a little further and see the same trend in the market for any image-shaping product: shoes, clothing, accessories, watches, and even hairstyles. Here are a few examples. A haircut at an inexpensive barbershop costs around $3-4. The same haircut at a beauty salon will cost $10-15. A hairdresser trained in France by a world-renowned brand will cut your hair for $100. A world-class hairdresser will charge at least $1,000.

Here's another example. As above, I'll give average prices.

You can buy a casual dress for as little as $30 at underground kiosks. In department stores, good-quality dresses cost around $100, while in boutiques and famous brand houses, the price is significantly higher – $500. If you prefer a custom-made dress from a famous designer, be prepared to spend at least $1,000.

SLIDE 7 – PRICE CATEGORIES

The list goes on. Whether we look at cars, watches, hats, or jewelry, the trends are the same. Thus, four main price categories spontaneously emerge in the market:

• Low quality products;
• High quality products;
• Products from famous brands;
• Exclusive masterpieces.

The price increases 5-10 times with each category.

Let's return to the gemstone market.

We live in exciting times, when advances in cutting equipment are enabling a quantum leap in gemstone processing, moving from craft to art. It's no secret that each step is challenging. One of the biggest obstacles is the barrier in public perception. More specifically, the shift from the dismissive "jewelry setting," which merely adorns a brooch or ring, to the elevated concept of a "gemstone," for which the same ring serves as a setting, emphasizing its beauty and magic. In other words, a decisive moment lies ahead, when the primary goal of cutting will be to showcase the beauty of the gemstone while preserving its weight, rather than increasing its weight at the expense of its beauty.

This is facilitated by objective factors—the development of equipment and the obvious contradiction between the quality of jewelry and the cutting of precious stones—as well as subjective factors—the transition of gemstone cutting enthusiasts to a professional level and, as a result, the emergence of brands specializing in cutting. They are beginning to cut stones with increasing quality, using this as a competitive advantage.

SLIDE 8 — NOMAD

Here in Asia, we hear names like Nomad, Yavorsky, Vitalit, Leopard Gems, and so on. In Europe, the masters from Idar-Oberstein traditionally set the tone, followed by those from New York.

The world is adorned by a bright galaxy of masters, among whom we find John Dyer,

СЛАЙД 9 — ДАЙЕР

Jeff White, Dalan Hargrave, Tomohiro Carino, Steven Kotlowski.

Jeff White, Dalan Hargrave, Tomohiro Carino, Steven Kotlowski.

In other words, we can talk about brands that value the quality of the cut more than the weight of the stone.

Brands don't appear out of nowhere, especially when they happen simultaneously in different parts of the world. Their emergence reflects certain market trends. In this case, we can speak of a faster growth rate in prices for well-cut stones than for commercially cut stones. In other words, a widening price differential between the two. When this price differential exceeds the cost of rough loss associated with high-quality cutting, such cutting becomes profitable. This price differential is due to differences in liquidity. All of you, my dear colleagues, are participants in the precious stone market. You all understand that selling commercially cut stones (or rather, poorly cut ones) is becoming increasingly difficult, and the need for recutting "barrel" stones with a convex pavilion is becoming more and more common.

You've probably heard the following opinion: If a stone is precise, symmetrical, and perfect, it becomes faceless. They say that small imperfections are necessary to give the stone a charming, individual quality, highlighting the advantages of handcrafted workmanship. I believe that a stone's originality is achieved by a combination of material, color, clarity, size, cut design, and optical properties. But imperfections are a no-no. It's hard to consider a face with a slanted eye or a drooping nose charming. These are excuses used by those who don't want (or can't) create high-quality stones, or by those who are comfortable with what the market offers.

As convenient as it may be for dealers and jewelers to use outdated standards and justify poor cut quality by emphasizing the individuality of the stone, there are people who are not shy about asking a higher price for a better cut, and, more importantly, there are buyers who are willing to pay more.

So what is a high-quality cut, beyond the abstract overall beauty of a gemstone? First, a high-quality cut ensures perfectly flat facets, which increases the stone's dispersion due to the virtual prisms formed by the facets. I have often observed high dispersion even in quartz specimens if they were cut well. Dispersion creates a unique sparkle—light spots of different colors, distinct from the base color of the stone—one of the most significant advantages of a cut stone. The second advantage, directly related to the first, is the clear edges between the facets. When facets, like a knife blade, do not reflect light, the stone appears "wet"—each facet reflects light in its own way, and the sparkling mesh of facets does not attract attention. Third, strict symmetry (if intended by the cut design) makes the stone more harmonious and pleasing to the eye. One gemstone lover put it this way: "I buy beautiful gemstones to admire and enjoy them." But every time I notice an imperfection, instead of joyfully contemplating the stone, I'm constantly haunted by the thought: how could a careless cutter ruin such beauty? Fourth, the stone's primary color is better visible when there is no "window" in it; the background doesn't interfere with perception. And finally, fifth (which, together with point four, can affect gemological characteristics), there is the absence of a grayish tint that occurs when light diffracts on surface defects. This factor can increase the apparent color saturation by one grade on the GIA scale.

This last statement requires clarification, as it is crucial. Polishing leaves scratches on the surface of the edge that are comparable to the size of the abrasive used.

SLIDE 11 – COMPREHENSIVE POLISHING

The density of such scratches is usually high, and the surface becomes glossy when the light spot moves away from it.

SLIDE 12 – COMPREHENSIVE POLISHING

The explanation lies in the partial scattering of light reflected by an uneven surface at different angles.

SLIDE 13 – REFLECTION OF A LIGHT BEAM

The more uneven the surface, the more scattering it creates. The surface is illuminated unevenly with this deflection of light waves, because in some microscopic areas, dark surrounding objects are visible against the light background of the reflection.

SLIDE 14 – HIGH-QUALITY POLISHING

I often hear this question: "Who needs a perfect polish and precise facets? No one will notice it anyway!" But that's not true. Our eyes are perfect optical instruments. They perceive countless details that our brains don't recognize, but they influence our subconscious and create an impression. It may happen that one of two similar stones doesn't attract attention, while the other one attracts your attention and you'll want to pick it up and never let go. This is precisely how our body reacts to harmony. Harmony and its consequence—impression—are sufficient reason to increase the price.

.

Let's consider what percentage of a stone's price can be attributed to cutting. Here at the exhibition, you can find beautiful specimens of citrine or amethyst for $2-3 per carat. Stones of the same size, color, and clarity, cut by, say, John Dyer, will cost $20-30 per carat. If the price of the former is close to the cost of the rough, we can subtract it from the cost of the latter—and arrive at a difference that reflects the work of a renowned master, a winner of numerous competitions. Even if half of this amount is the brand's share, the other half is the cost of the labor. And this is no less than three times the price of the rough! Of course, for very expensive stones, the ratio will be different, but even then, the cost of cutting will depend on the price of the stone—it's the price of the responsibility and risk of working with expensive rough.

Currently, cut quality is not included in gemstone certificates. Although the GIA and other gemological laboratories have developed systems for grading cut quality, they prefer not to emphasize it, as they don't want to diminish the stones' appeal to buyers. Of the organizations I know, only the IGE dares to include cut quality in its certificates.

We all understand that the majority of the most expensive stones that are usually certified are cut, and that their cut quality is significantly below the level of masterpieces of real master cutters.

We've now established that high-quality cuts will continue to strengthen their position in the market. Therefore, it's important to understand the criteria for assessing cut quality. I won't go into detail about the existing cut quality assessment systems—you probably know them even better than I do. I'd like to highlight the key principle common to all of them: they are based on comparing the examined samples with certain characteristics, considered standard, and identifying deviations from them. These characteristics include the stone's shape, proportions, symmetry, and polish. The potential variation in cut designs, due to the crystal's shape or the cutter's creativity, is not taken into account.

When it comes to unique cutting designs that bear no resemblance to standard shapes, a different approach is required to evaluate their cut quality. Let's look at an example to make it clearer.

Some of you are already familiar with the gemstone cutting movement I first explored—the "Philosopher's Stone." Its essence lies in the development of unique, unusual cutting designs, accompanied by explanations, that convey a philosophical idea, evoking a series of associations in the mind. The stone contains one or more symbols in its pattern—either graphically or numerologically. These symbols act as a "key" that unlocks a series of associations.

SLIDE 15 - PATTERN

Before you is the "Drop of Compassion" stone. It is shaped like a wide teardrop, bordered on both sides by golden ratio spirals. At the bottom of the stone is a triangle, representing the Path leading to infinity—the point where human egoism disappears, dissolving in Great Compassion for all beings. Rays extending from all sides toward this point maintain the optical perspective. Three arches descend from above, symbolizing the three stages a person who chooses this path must undergo. These stages are common to all followers of the spirit: Knowledge, Renunciation, and Transfiguration. This is the path of Christ, the path of Buddha, the path of all the Teachers of humanity. We'll return to philosophy when I show you a photograph of this stone, but for now, let's move on to the GIA cut quality assessment.

SLIDE 16 – GIA WORKSHEET

As a qualified GG, I tried to do it myself. Here's what I came up with. There are three criteria—brilliance, proportion, and finish—two of which are straightforward. We'll look at the most complex, consisting of numerous subcriteria—proportions. The stone's shape most closely resembles a pear, but there are so many deviations from the "standard" shape! The length-to-width ratio, the absence of a top facet, the position of the culet, the wings, and the convexities... In short, strictly following the GIA approach, I had to grade this stone's proportions as "Fair." The overall rating was: Excellent – ​​Fair – Excellent. What do you think? SLIDE 17 – VT WORKSHEET

When issuing my author's certificate, I use a different cut grading system, developed personally. It doesn't claim to be the global standard of tomorrow, but represents an attempt to eliminate the limitations of a stone's shape by focusing on the quality of the cut itself. This system is based on the grading criteria for cutting competitions and considers the gemstone not as a single entity, but rather as a complex of individual design elements, including facets, edges, and intersection points (of four or more facets).

(facets).

SLIDE 18 – A DROP OF COMPASSION

It certainly takes into account undesirable optical effects created by the cut—such as "windows" and "absorption"—as well as the facet symmetry determined by the design. The result is expressed as a score on a 100-point scale, accurate to four decimal places.

SLIDE 19 – QUALITY CLASSES

In addition to the numerical rating, I divided the cut into quality grades: 0-60 Commercial, 60-95 Fine, 95-100 Elite. Each grade is further divided into three subclasses. The highest quality cut—Elite Ideal—should score 99 out of a possible 100.

SLIDE 20 - CERTIFICATE

Elite gemstone cuts are virtually nonexistent in today's market. It's not because no one buys them due to the high price. Most markets, including jewelry, have niches for products at different price points that can look almost identical. There's a niche for "commercial" quality, low-quality, factory-made goods, another for high-quality, factory-made goods, another for renowned brands, and then there's a niche for unique, high-quality masterpieces. Prices vary dramatically. The jewelry market is no exception.

SLIDE 21 – GIA MARKING

A gemstone's quality grade can be confirmed by both traditional methods (various reports and certificates) and non-traditional methods, such as surface marking. This technology was recently developed by our specialists. Unlike other methods (such as Forever Mark), which graphite a portion of the surface with an ion beam and then etches it, leaving a relief image, our technology uses plasma particles to penetrate the surface layer of the stone without damaging the surface, merely locally altering its optical density. This alters the refractive index, making the image visible when the facet reflects light from an external source. The brightness of the mark depends on the intensity of the irradiation – it can vary from visible to almost invisible, visible only when vapor condenses on the surface (the "breath test," as Dr. Shigley of the GIA humorously notes). SLIDE 22 – GEMSTONE MARKING

A weakness of certification is the impossibility of proving the certificate's authenticity to a specific stone, especially for standard cuts. Photographs in certificates are unsuitable for unambiguous identification, as are dimensions and carat weight. Therefore, such a nearly invisible mark, which does not harm the stone in any way and does not affect its gemological characteristics, may be the most convenient means of identifying a certified stone.

What remains to be said in conclusion? Evolution is inexorable. We can ignore its laws or even try to go against them – we are unlikely to survive for long in the fiercely competitive conditions of an emerging market. However, a forward-thinking player takes these laws into account and predicts future market trends. We live in a unique time when objective and subjective conditions are ripe for a qualitative leap in cutting. Today, the market is short on well-cut stones. But tomorrow, stones of the highest quality will find their niche. And the brave souls who are the first to master cutting and quality assessment will, I dare say, make history.

SLIDE 23 - CONCLUSION