Gemmology (or How to Get Rich Quick)
Hey there budding entrepreneurs! Have you just found a potentially valuable deposit of rare minerals and have plans to exploit it? Well good news! Gemmology is here to make your wildest dreams come true...
This seminar was presented by Annuh Anchandah from the GIA (Gemmological Institute of America), with a somewhat pro-industry attitude. Rather than discuss the quite frankly grey murky area of ethics in mining and especially precious gemstone extraction, I would like to focus mainly on the controls of gemstone pricing. I mean if we are to avoid moral dilemma via creating capital, we may as well take it the whole way.
First, a little background on the GIA and gemologists as a species of geologist.
The GIA have been around since the early 20th century providing education on gemstone formation, chemistry and crucially business and sales studies. As a non-profit organisation they claim to only strive for quality in gemstone research and sales. They are now the world's leading organisation for Gemmology, offering one of the most widely accepted gemstone grading standards.
Gemmology is perhaps one of the most confused offshoots of geology. It simultaneously lies within the realm of science but also the social sciences such as business, politics, economics and even art.The users of the GIA and gemmology are roughly what you would expect. Careers range from retail sales professionals, wholesalers and gemstone appraisers to lab work and even journalism.
When boiled down, Gemmology has three separate fields of study;
1)Diamond Product Research
2)Coloured Gemstone Product Research
3)How to sell them
The entire subject of Gemmology depends upon the market conditions, so it is within the subject's nature to try and turn a profit. This may seem not only morally questionable but the implications are a little worrying. Don't worry, that's because it is! So lets make a profit!
This seminar was presented by Annuh Anchandah from the GIA (Gemmological Institute of America), with a somewhat pro-industry attitude. Rather than discuss the quite frankly grey murky area of ethics in mining and especially precious gemstone extraction, I would like to focus mainly on the controls of gemstone pricing. I mean if we are to avoid moral dilemma via creating capital, we may as well take it the whole way.
Gemologists
First, a little background on the GIA and gemologists as a species of geologist.
The GIA have been around since the early 20th century providing education on gemstone formation, chemistry and crucially business and sales studies. As a non-profit organisation they claim to only strive for quality in gemstone research and sales. They are now the world's leading organisation for Gemmology, offering one of the most widely accepted gemstone grading standards.
Gemmology is perhaps one of the most confused offshoots of geology. It simultaneously lies within the realm of science but also the social sciences such as business, politics, economics and even art.The users of the GIA and gemmology are roughly what you would expect. Careers range from retail sales professionals, wholesalers and gemstone appraisers to lab work and even journalism.
When boiled down, Gemmology has three separate fields of study;
1)Diamond Product Research
2)Coloured Gemstone Product Research
3)How to sell them
The entire subject of Gemmology depends upon the market conditions, so it is within the subject's nature to try and turn a profit. This may seem not only morally questionable but the implications are a little worrying. Don't worry, that's because it is! So lets make a profit!
The Method
For the two separate fields of Gemmology, they share almost the same method for identification and evaluation; grading. Grading a gemstone simply means taking multiple physical factors into account in order to produce a rough pricing estimate for the mineral.General Method
1) General Observations
This is simply a gemologist's first impression of a mineral, usually based on in-person or field observations. It considers the basic colour and size of the gem but also the cut (i.e. The manner in which the crystal has been shaped by man) and the phenomena (simply how sparkly/ unique the crystal is).
2)Gem Identification
This step is where we find out what mineral you have actually found. This is usually done in a GIA lab as it consists of multiple tests with specialist equipment. One test is for the refractive index, where each crystal will reflect light in a unique way so therefore can be correlated. Magnification is also an important aspect as it is used to discover whether the gem has been artificially treated or even if the gem is completely man-made.
After identification, we can begin to grade and price these gemstones based on...
3) Chemistry
The chemistry of a gemstone will dictate it's appearance and therefore grade. Chemistry dictates the transparency or phenomena of a crystal depending on how pure it is. A pure crystal will most likely be transparent but lack any kind of visible phenomena inside the gem. This may work to increase the price of some gems but decrease the price of others.
Chemistry is also obviously important for the gemstone colour. Different proportions of major and trace elements can give a gemstone vibrant, expensive colours or tint it as to reduce it's price.
4) Location
The most important aspect of gemstone prospecting and pricing is the location of the deposits. The location has a strong control on not only the types and styles of deposits found but also the regulation and sustainability of these practices. A simple example of this would be the Kashmiri Sapphires. These gems are known for their remarkable deep blue hue, so will be more highly sought after for a better price. Another point to consider is that if cheap local labour can be employed in a country with relatively weak legislation or infrastructure (e.g. Madagascar), your overall expenses will reduce but the mining style and the questionable ethics of this technique will drive the price of the gemstones down also.
Diamond Grading
Gemologists treat diamonds like their own subject. Unlike coloured gems, all diamonds follow the same codes for grading.
1)Colour - The less colour the better (generally)
2)Clarity - Purer diamonds massively ramp up price points
3)Cut - Man-made alteration that controls brightness, colour balancing and scintillation (the sparkles)
4)Carat Weight - How big the diamond is [1 Carat = 0.2g]. Naturally bigger diamonds are more expensive, but a small diamond with excellent clarity and cut can easily sell for more than a typical large diamond.
So there we are folks. That is how we value valueless (mostly) minerals. I hope you use your powers for good, although historical evidence would suggest otherwise.
TLDR; Gemstones are priced based on their size, species, purity, hue and location. Each species of gemstone will increase in price depending on these 4 aspects.
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