September 2010

JEWELRY INSURANCE ISSUES (formerly IM News), provides monthly insight and information for jewelry insurance agents, underwriters and claims adjusters.

Subscribe to
Jewelry Insurance Issues

Table of Contents

Click on article titles in red

2017

Moral Hazard, Documents and the Bottom Line - January

Ruby and Jade - February

How to mail a diamond - March

Jewelry Insurance Appraisal Standards: JISO - April

Describing a gem's color - May

Why not just put jewelry on the Homeowner policy? - June

GIA Diamond Reports - July

Not just a pretty face - August

Moral hazards on the rise - September

Hurricanes, fires, floods—and jewelry insurance - October

2016

Inflated appraisals—alive & well! Shady lab reports—alive & well! MORAL HAZARD—ALIVE & WELL! - January

Clarity Enhancements v. Inherent Vice - February

How green is my emerald? - March

Cruise Jewelry - What's the problem? - April

Crown of Light ® - how special is it? - May

Diamonds at Auction — Big gems, big prices, and the trickle-down effect - June

Are you sure her wedding jewelry is covered? - July

What Affects Jewelry Valuation? - August

What to look for – on the jewelry appraisal, on the cert, and on other documents - September

Growing Bigger & Bigger Diamonds - October

Scam season is always NOW - November

Ocean Diamonds - December

2015

Pair & Set Jewelry Claims and the Accidental Tourist - January

Is that brand-name diamond a cut above the others? - February

Vacation Jewelry – Insurer beware! - March

Apple's Smartwatch – The risk of a wrist computer - April

Why you should read that appraisal - May

Smoking Gun! - June

Color-Grading Diamond: the Master Stones - July

Padparadscha—a special term for a special stone - August

Jewelry Appraisal Fees - September

Insuring a Rolex - steps to take, things to consider - October

Diamond camouflage and how to see through it - November

GIA Hacked! - December

2014

Who Grades? - January

Sales, discounts, price reductions, bargains, specials, mark-downs . . . . and valuation - February

Credential Conundrum - March

Frankenwatches - April

Fakes, fakes, and more fakes - May

Marketing Confusion — What is this gem anyway? - June

12 Reasons Not to Insure a Rolex! - July

Why NOT to insure a Rolex: Reasons 5-7 - August

Why NOT to insure a Rolex: Reasons 8-10 - September

Why NOT to insure a Rolex: Reasons 11-12 - October

The Doublet Masquerade - November

Is the gem suitable for the jewelry? Is this a good insurance risk? - December

2013

Wedding Rings on HO? NO! - January

Silver: the new gold - February

Point Protection - March

Tiffany v. Costco - April

What counts in valuing a diamond? - May

Appraising Jewelry - What’s a credential worth? - June

A Cutting Question concerning vintage diamonds - July

Synthesized Diamonds - Scam update - August

Pretty in Pink - Kunzite on parade... - September

Preventing jewelry losses - October

Scratch a diamond and you’ll find . . .??? - November

Synthetics in the Mix - December

2012

Advanced Gem Lab - A deeper look at colored gems - January

Whose Diamond? - February

Appraisal Inflation - It Keeps On Keeping On - March

Big Emerald - April

Changing colors and making gems: Are we seeing "beautiful lies"? - May

Diamonds - Out of Africa. . . or out of a lab? - June

Appraiser's Dream Contest - July

GIA & the Magic of Certificates - August

Pricey when it’s hot: What happens when it’s not? - September

Fooling With Gold - October

Tanzanite – December's stone - November

Branding Diamonds - What do those names mean? - December

2011

Unappraisable Jewelry - January

Replicas - Are they the real thing? - February

Composite Rubies- From bad to worse - March

Jewelry Hallmark - A Well-Kept Secret - April

Non-Disclosure: Following a Trail of Deception - May

Preserving the Diamond Dream - June

Spinel in the Spotlight - July

Jewelry 24/7 - Electronic Shopping - August

Diamond Bubble? - September

Disclosure: HPHT - October

"Hearts & Arrows" Diamonds - November

How a Gem Lab Looks at Diamonds - December

2010

Emeralds - And What They Include - January

Pink Diamonds: From Astronomical to Affordable - February

Palladium-the Other Precious White Metal - March

Bridal Jewelry - April

The Corundum Spectrum - May

How Photos Cut Fraud - and help the insured - June

The Price of Fad - July

Old Cut, New Cut-It's All about Diamonds - August

EightStar Diamonds-Beyond Ideal - September

The Hazard of Fakes - October

Jewelry with a Story - November

Counterfeit Watches - December

2009

Blue Diamond-cool, rare and expensive-sometimes - January

Turning Jewelry into Cash—
Strategy in a Bad Economy
- February

Enhancing the Stone - March

Being Certain about the Cert - April

Every Picture Tells a Story - May

Color-Grading Diamonds - June

The Newest Diamond Substitute - July

What Happens to Stolen Jewelry - August

Jewelry As an Investment - September

Black Diamond: Paradox of a Gem - October

Protect Your Homeowners Market—Keep Jewelry OFF HO Policies! - November

What’s So Great about JISO Appraisal Forms & Standards? - December

2008

Garnet - and Its Many Incarnations - January

Organic Gems - February

Do Your Jewelry Insurance Settlements Make You Look Bad? - March

Don't Be Duped by Fake JISO Appraisal - April

Diamonds in the Rough - May

The Cultured Club - June

Sapphire-Gem Superstar - July

It's a Certified Diamond! 
- But who's saying so?
- August

FTC Decides: Culture Is In! - September

Paraiba Tourmaline – What's in a Name? - October

How Fancy is Brown? - November

CZ – The Great Pretender - December

2007

Moissanite's New Spin - January

Online Jewelry - Buying and Insuring - February

Blood Diamonds - March

Damaged Jewelry, Don't Assume!- April

Chocolate Pearls - May

Appraisal Puff-Up vs Useful Appraisal - June

It's Art, but is it Jewelry?
- July

Diamonds Wear Coats of Many Colors - August

DANGER! eBay Jewelry "Bargains" - September

TV Shopping for Jewelry - October

Enhanced Emerald: clever coverup - November

How do you like your rubies -
leaded or unleaded?
- December

2006

The New Platinum: A Story of Alloys - January

Ruby Ruse - February

How Big are Diamonds Anyway? - March

GIA Diamond Scandal
Has Silver Lining for Insurers
- April

Watch Out for Big-Box Retailers Insurance Appraisals - May

Mixing It Up: Natural and Synthetic Diamonds Together - June

Tanzanite - Warning: Fragile - July

Red Diamonds - August

Inflated Valuations & Questionable Certificates - September

Emeralds - October

Where Do Real Diamonds Come From? - November

Counterfeit Watches - The Mushroom War - December

2005

The Lure of Colored Diamonds - January

Synthetic Colored Diamonds - February

Watches: What to Watch for - March

When is a Pear not a Pair? - April

The Truth About Topaz - May

White Gold: How White is White? - June

One of a Kind - or Not - July

Jewelry in Disguise - August

Valued Contract for Jewelry? Proceed with Caution! - September

Antiques, Replicas and All Their Cousins
October

Grading the Color of Colored Diamonds
November

New GIA Cut Grade for Diamonds - December

2004

Synthetic Diamonds - and Insuring Tips - January

Bogus Appraisals and Fraud - February

A Picture is Worth Thousands of Dollars - March

Don't be Duped by Fracture Filling - April

Gem Scams Point to Need for Change - May

What is a Good Appraisal - June

4Cs of Color Gemstones - July

Gem Laser Drilling: The Next Generation - August

Why Update an Appraisal? - September

When to Recommend an Appraisal Update or a Second Appraisal - October

Secrets of Sapphire - November

Will the Real Ruby Please Stand Up - December

2003

Mysterious Orient:
A Tale of Loss
- January

Bogus Diamond Certificates and Appraisals - February

Can Valuations be Trusted? - March

Spotting a Bogus Appraisal or Certificate - April

Counterfeit Diamond Certificates - May

Case of the Mysterious "Rare" Sapphires - June

Politically Correct Diamonds - July

Name Brand Diamonds - September

Princess Cut: Black Sheep of Diamonds - October

Reincarnate as a Diamond - November

Synthetic Diamonds - December

2002

Irradiated Mail/Irradiated Gems - January

Fake Diamonds (Moissonite) - February

GIA Diamond Report - March

AGS and Other Diamond Certificates - April

Colored Stone Certificates - May

Damaged Jewelry: Don't Pay for Nature's Mistakes - June

The Case of the "Self-Healing" Emerald - July

Mysterious Disappearance: Case of the Missing Opals - August

The Discount Mirage - September

What Can You Learn from Salvage? - October

Gaining from Partial Loss - November

Year in Review - December

2001

Colored Diamonds - January

Good as Gold - February

Disclose Gem Treatments - March

FTC Jewelry Guidelines - April

Myths Part I: Each Piece is Unique - May

Myths Part II: Myths, Lies, & Half-Truths - June

New Trend: Old Cut Stones - October

The Appraisal Process - November

Year in Review - December

2000

Deceptive Pricing - January

Gems - Natural or Manmade - February

Jeweler/Appraisal Credentials - March

Fracture Filling - April

Salvage Jewelery - May

Gem Treatments - June

Don't Ask/Don't Tell - A Buying Nightmare - July

Laser Drilling of Diamonds - August

Jeweler Ethics or the Lack Thereof - September

Gem Scam - October

The Truth about Clarity Grading - November

Year in Review - December

 

We'll be glad to notify you when the Jewelry Insurance Issues is available each month. Sign up for your FREE SUBSCRIPTION to Jewelry Insurance Issues.

Visit the rest of the JCRS site:  www.jcrs.com


EightStar Diamonds—
Beyond Ideal

Before: The best cut grade of round brilliant diamond was “Ideal.”
Now: The best is “EightStar.”

It's a difference in beauty–and valuation.

Geometry + technology = flash

In the development of diamond cutting, it turns out that a round shape, cut to specific proportions, shows off the stone to best advantage.

Last month's issue outlined how technological advances led to more beautiful gems. Early cutters shaped gemstones with hand tools. Over the centuries mechanized equipment made the job easier and allowed finer faceting. Advances in the science of optics enabled cutters to determine the best geometry for diamonds, and electric equipment made this precise geometry possible.


The ideal proportions for a round diamond were established. Valuation of round brilliant diamonds depends on how nearly the diamond's geometry approaches this standard.

The American Gem Society (AGS) cut grading system called stones that met this standard “Ideal.” Premier diamond cutters and retail jewelers have promoted this standard, and you may see “Ideal” given as a cut grade on appraisals and documents from the retailer. But a word of caution: what one jeweler calls “ideal” may be entirely different from the AGS “Ideal” cut standard.

More recently, the Gemological Institute of America (GIA) established its own cut grading, where the best cut is called “Excellent.” However, GIA's “Excellent” is actually a looser standard that the AGS “Ideal” cut standard.

This discrepancy between the two major grading organizations had the effect of watering down the original Ideal grade, meaning that less well-cut stones are now being labeled “Ideal”.


JISO 78

For the insurer (and the consumer) it is far better for the appraisal to give exact cut proportions, not just a word-grade for cut. The JISO 78/79 appraisal form specifically prompts the appraiser for table percentage, crown angle, girdle thickness, pavilion depth, and culet size.

EightStar-more light!


SymmetriScope™ Images

Beyond Excellent, beyond Ideal, is EightStar.

The brilliance of diamond is all about light, light retuning to the eye of the viewer. As technology continues to improve, instruments are better able to measure light return.

For EightStar diamonds, cutters concentrate not just on overall geometry but on the precise arrangement of the facets.

During the EightStar cutting process, cutters use an instrument called a SymmetriScope™ to insure that the reflection of each facet aligns perfectly with its opposite facet. They check each diamond about 200 times during the cutting. This exact arrangement of the facets, like mirrors mirroring each other's light, dramatically increases the diamond's fire.

In the pictures at right, the EightStar diamond shows perfect symmetry and reflects all light. The Ideal cut diamond has good symmetry but the white notches along the edges show where light “leaks out” of the diamond because it is not reflected back to the eye. The bottom image shows a diamond of very low cut grade because of its terrible cut symmetry; to the naked eye this diamond looks (as one jeweler described it) like “a sparkly blob.”

Precision comes at a cost. For comparison, it takes about 5 hours to cut an Ideal diamond, and about 30 hours to cut an EightStar. As you might expect, EightStars have a much higher valuation.

EightStar is the name of the diamond-cutting company, but EightStar is also the name of this cut. Some jewelers sell EightStar diamonds under other names. HOWEVER—it is by no means the case that all brand name diamonds are EightStar cut.


Laser inscription on diamond's girdle

EightStar diamonds are laser-inscribed with the name EightStar and a unique number. This identifying inscription, and any inscriptions on the stone, should be mentioned in the appraisal.

FOR AGENTS & UNDERWRITERS

When insuring quality diamond jewelry, require a detailed descriptive appraisal, preferably on JISO 78/79 prepared by Certified Insurance Appraiser™ (CIA).

FOR ADJUSTERS

When pricing replacements, look for cut information on all appraisals and diamond reports. Ignore words like excellent or very good, as these are too vague to be of any use. Look for the numbers describing table, crown angle and pavilion depth.

Brand names for diamonds can tell much about the quality of a stone, such as whether it is EightStar, color-enhanced, synthetic, etc. If the appraisal or other documents mention a brand name you don't understand, it might be worthwhile to consult a jewelry insurance expert before settling the claim.

Any inscription on the diamond's girdle, such as a brand name, i.d. number, or GIA certificate number, is important information and should be taken into account when pricing a replacement.

For a damage claim, have the diamond inspected in a gem lab to determine cut proportions (as well as to verify other qualities) before settling the claim. Remember that cut accounts for as much as 50% of a diamond's value.

©2000-2017, JCRS Inland Marine Solutions, Inc. All Rights Reserved. www.jcrs.com

Subscribe to Jewelry Insurance Issues

 

Manual JIBNA