GEM PRICING UPDATE from THE GUIDE;

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Jewelers Circular Keystone

September 1, 2000

GEM PRICING UPDATE from THE GUIDE; Brief Article


     Market in brief: August 1, 2000 ... The colored stone market remains 
steady. Sources in
Myanmar continue to report that gem mining activities are at a near 
standstill. For the first time since
this latest crisis in Myanmar began, Thai dealers are reporting a shortage 
of Burmese goods in the
Thai market. Burmese sapphire is reported to be in scarce supply, and other 
reports indicate that
demand for Burmese ruby has softened slightly. Dealers in Madagascar report 
that production of fine
pink sapphire has slowed significantly. They also report that other fancy 
colors, such as yellow, are
slowing. American retailers are reporting a dramatic increase in demand for 
fancy sapphire, especially
pink and yellow, over last year's demand. Color-change gems also are 
experiencing increased
demand.

Diamond dealers continue to report that prices are strong for 1.5-ct. to 
2.5-ct. well-made round
brilliants in the [VS.sub.1]1 to [SI.sub.1] range in D to H colors. Sources 
indicate that prices are at a
premium for these goods, with little room to negotiate. The recent 
announcements from the World
Federation of Diamond Bourses recognizing the [SI.sub.3] clarity grade has 
spurred speculation
among dealers about what impact the grade will have on the market. Several 
dealers who were
interviewed expressed doubt that the Gemological Institute of America can 
continue its resistance to
the use of the [SI.sub.3] grade.