Diamond is the birthstone for April. However, as we all know, many people who buy diamonds are not born in April. Diamonds have become the gemstone of choice for engagement rings, anniversary rings, pendants, earrings, bracelets, etc. It has, quite justifiably, become the king of gemstones.
Diamonds are the hardest substance known to humankind, and can only be cut and polished by other diamond material. Industrial-grade diamonds are used in drill-bits for drilling through hard materials. However, hardness does not equate to toughness. The former equates to resistance to scratching, whereas the latter equates to cohesion. In practical terms, this means that you cannot scratch a diamond except with another diamond, but if you hit it with a hammer, it will likely shatter.
Diamonds are sourced from many countries. Numerous African countries, Australia, Russia, and Canada are all major producers. In fact, Canada has become the number three producer of diamonds based upon value, behind only Botswana and Russia. The source of diamonds has become an issue in the past decade, as some diamonds being produced in Sierra Leone, Angola, and a few other African countries, were being used to fund illicit military activities. These diamonds became known as “conflict” or “blood” diamonds. And although they represented less than 2% of global production, it did become a serious issue to the trade. In response, producers, governments, manufacturers, ngo’s, and others came together to form what has become known as the “Kimberley” process. This proccess effectively curtailed the movement of conflict diamonds to the extent that, today, they are almost completely eliminated from global distribution.
Diamonds are valued based upon the four gemological characteristics known in the trade as the “four C’s”. Carat weight, colour, clarity, and cut quality, are the primary determining factors in establishing a diamond’s value. It is important therefore, when purchasing a diamond, that it have a certificate from a reputable lab, like the Gemological Institute of America or the American Gem Society. Alternatively, a description by an accredited gemologist will also help in making a “buy” decision.
Diamond prices in Canada today are actually somewhat lower than 5-10 years ago. Three reasons account for this. First, diamonds are globally priced in US dollars. Today, our dollar is flirting with parity, thereby giving us more buying power than when we had a 62 cent dollar. Secondly, since 1914, our industry was subject to an excise tax. It was archaic, but the only government to follow through on its promise to abolish the tax was the Harper government. This was accomplished in their first budget, thereby eliminating 10% from the cost of all jewellery. Thirdly, we cannot ignore the effects of the most recent recession. The jewellery industry was especially hard-hit. This resulted in an over-supply of diamonds to the trade, and the severe competition saw diamond prices drop as a result. Therefore, consumers today can effectively buy diamonds at a reduced price as compared to some years ago.
Diamond purchases represent significant events in the lives of the purchaser. Be it for that special birthday, the symbolism of an engagement, the marking of a milestone between two individuals, or the sheer joy of making a self-purchase, they remain one of the finest and long-lasting purchases one can make. As a company, we are privileged to be partakers in the brokering of these special events, and thank-you for allowing us into your lives in such an intimate manner.
Engagement Rings, Jewellery, Our Customers | Jonathan May 15, 2012 | 
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