RAPAPORT... This year’s Hong Kong International Jewellery Show, which was held March 6 to 10, got off under a cloud of uncertainty as the world stock markets underwent a major correction.
This was triggered by Mainland China’s sharp market drop in response to rumors that the central government would impose a 20 percent capital gains tax and by comments from Zhou Xiao-chuan, governor of the People’s Bank of China, that the market was too overheated and had to be reined in to more sustainable levels.
However, the pall of uncertainty was quickly dissipated the next day with announcements that the tax rumors were unfounded. But the roller-coaster ride continued for the next few days in stock markets throughout the world.
There was a marked absence of Mainland Chinese customers at the show. However, it was compensated for by the arrival of buyers from other countries in the region, especially for diamonds.
The major players in this year’s show were again buyers from India, who came in full force and ready to buy. They did not banter as in previous shows, but quickly got into the groove of prices, with deals being struck even from the first day of the show. The rush to close deals could be attributed to the fact that import duties on diamonds would be reduced as of April 1.
Indian buyers were mostly in the market for large stones, but also bought 1-carat sizes, as well as 1.50 carats. Oddly enough, they were also looking for dossiers from 50 pointers and larger. The clarity desired was mostly VVS goods, with some good VS stones also being accepted.
Fancies In FavorWhile rounds are always favored, some of the buyers did specialize in buying fancy cuts.
Pear, heart and marquise shapes were moving well, but, by and large, the fancy shape of choice was the emerald cut.
Emerald cuts have been neglected for some time now. In recent months, however, there has been a growing demand for them, although the supply has been quite short, especially in large sizes. Buyers were also looking for stones with better makes, and not those with heavy bottoms. The stones must possess a good “spready” make to show off the size of the stone.
The clarity grading for emerald cuts also has to be better than other cuts, as the stones tend to show imperfections more obviously than the other diamond cuts, where the prism-like crown facets tend to add more dazzle to the stone, thereby masking imperfections to a large degree.
Fancy ProportionsMore importance should be given to the proportion and the model of a fancy cut. Not every stone can be cut to exact textbook proportions, but it should not vary too far from the ideal. A good measuring tool is to calculate the length-to-width ratio — which is the length divided by the width.
Emerald cuts should not be too narrow or too stubby; they must be elegant and conform very close to the golden rectangle or divine proportions. The Greeks certainly had the gift for what is innately pleasing to the eye — the famous Parthenon is a classic example of the golden ratio, which has endured the test of time. Leonardo Pisano, better know as Fibonacci, gave more mathematical data on the shape of the golden rectangle. However, slight variations, with a length-to-width ratio of between 1.30 and 1.50, still look good.
Heart shapes should not be too long or, at the other extreme, too wide; they should look more like butterflies than a heart. A good term used in the trade is a “Happy Heart,” which describes the feelings this particular cut emotes. The length-to-width ratio should be between 0.80 and 0.90 — any deviation from this will tend to detract from the desired shape.
Pear shapes should also not be too long and should have a certain amount of roundness in the base, with the point having a length-to-width ratio of between 1.50 and 1.75.
Marquise cuts should conform to a length-to-width ratio of around 2.0 — not too wide and not too narrow. It is also important that the proportions of the stone do not create the bow-tie effect in the middle of the stone. Ovals are a variation of the marquise cut without the pointed ends and, as such, the length-to-width ratio can be between 1.35 and 1.50. Marquise and oval shapes tend to look bigger than a diamond of the same weight in other cuts, and therefore, the stones’ depth proportion should remain light, or the desired effect will be lost.
Princess cuts should be as square as possible. While it is a cut that renders the best yield from rough, many times it is taken to extremes, so that some stones have hardly any crown height and the table is so wide that the crown facets are hardly visible to the naked eye.
While there are some clients who look for the cheapest price, buyers who appreciate fancy cuts tend to put more emphasis on the look, which is very closely related to the proportions and the beauty of the stone.
The Marketplace• Stones larger than 5 carats are still the hottest item and are popular in a wide range of colors and clarities.
• 30- to 40-pointers in dossiers are sought after, but most of the heavy demand is for 50-pointers and larger. Stones with Gemological Institute of America (GIA) dossiers are what customers want.
• Small Indian goods in 2-pointers and smaller still sell well, while other sizes are more sluggish.
• For smaller-sized fancies, Indian makes are moving fairly well.
Article from the Rapaport Magazine - April 2007. To subscribe click here.