Assignment 7 - The Colored Stone Market Flashcards
A commitment to reserve a portion of the resources derived from any country for the
economic development of that country.
Beneficiation
What is the basic structure of the colored stone market?
The colored stone market is divided into three major market sectors: the high-end market, the middle market, and the commercial market.
What are the market’s current supply challenges?
Africa’s biggest mining challenges are to balance the needs of foreign investors and artisanal miners while also protecting the environment.
Sri Lanka limits mechanized colored stone mining in favor of smaller operations and sustainability.
High altitudes, rugged terrain, harsh winters, and security concerns all add to the challenges of mining gemstones in Central Asia.
As Brazil becomes more developed, the costs of labor, licensing, and environmental reclamation are rising along with the mining bureaucracy.
Where are the world’s major colored stone sources?
Africa, Southeast Asia (Thailand, Myanmar, Sri Lanka, Vietnam), Australia, Central Asia (Afghanistan, Pakistan, and Tajikistan), South America (Colombia, Brazil)
How are colored stones marketed and sold?
The way miners sell their rough is often influenced by the sophistication of the mining operation and the needs of the buyer, who might be working independently or for a larger wholesaler.
Market sector where fine-quality, expensive
gemstones are used in unique, handcrafted jewelry pieces.
High-end market
Market sector where better-quality gemstones are used in well-finished, moderately priced
jewelry pieces.
Middle market
Market sector where average-quality gemstones are used in mass-market jewelry.
Commercial market
A unique piece designed and created for a
particular customer, often around specially chosen stones.
Custom-made jewelry
Non-standard cutting usually applied to large, important stones for use in expensive jewelry
where standard size is not a consideration.
Free-size
Gemstone sizes cut to fit standard mountings.
Calibrated sizes
The geographical location where a gem was mined.
Origin
In mining terms, theft of a mine’s production by its workers.
High grading
Involvement of a business or industry in all aspects of its product’s market.
Vertical integration
A manufacturer who produces faceted stones, cabochons, or carvings.
Cutter
A rare pinkish orange sapphire.
Padparadscha
A company or individual that supplies gems to jewelry manufacturers and retailers.
Wholesaler
A quantity of stones of similar or mixed qualities and from a single mine or various sources, that’s offered for sale together.
Parcel
A gem dealer’s term for a random sample from a parcel of gemstones, often used to assess the
parcel’s overall quality.
Cut
A mixture of gem qualities that represents unsorted production from a particular mine.
Mine lot (mine run)
A discounted price for buying an entire parcel or a substantial part of it.
Lot price
A specific rough gemstone quality range, usually determined by color, size, clarity, and price.
Grade
Gemstone rough that’s transparent enough and of high enough quality to produce faceted
gems.
Facet grade
A premium price for selecting stones from a parcel.
Pick price
What factors led to the growth of the gemstone cutting industry?
There has been increasing global demand for higher-quality stones, more precise cutting, and better matching.
Industry consolidation has led to increasing dominance by larger companies.
Where are the major cutting and treatment centers?
China (Shenzhen, Panyu, and Guangzhou), Thailand (Bangkok), India (Jaipur), Sri Lanka.
A city, region, or country with a large number of
gemstone manufacturers.
Cutting center
How have changes in the colored stone market attracted consumer attention?
TV and internet are increasing consumer awareness of colored stones, especially at the commercial and middle-market levels. Thanks to TV home-shopping networks, more colored stone varieties are offered to consumers on a larger scale than in the past.
The vast majority of Sri Lankan deposits are in
A. pegmatites.
B. alluvial gravels.
C. kimberlite pipes.
D. metamorphic belts.
B. alluvial gravels.
Today, the chosen sales outlets for premium-quality colored stones are
A. retail chain stores.
B. TV-shopping networks.
C. international auction houses.
D. direct purchases from gem cutters.
C. international auction houses.
By some estimates, Thailand controlled what percentage of the global ruby and sapphire trade in the 1970s and 1980s?
A. 15 percent
B. 50 percent
C. 75 percent
D. 80 percent
D. 80 percent
