Subject: Re: Ruby and Sapphire

From: [email-masked]
Date: 5 Apr 1995 16:56:24 GMT

In article <[email-masked]>, Cameron
<[email-masked]> wrote:

> What tips can you pass along so I can be assured I obtain a high
> quality natural ruby, instead of a doublet, a artificial, or 
> manufactured synthetic stone. Looking for a nice natural stone
> of 1 to 1.5 ct, oval blood red, with outstanding brillance and other-
> wise very striking. I am willing to pay the price, but am having
> trouble finding what I would consider to be this quality of stone.
> Yes I have tried GIA gemologists and a number of sophisticated and
> reputable jewelers. Also willing to do my homework.
> 
> [email-masked]

 Dear Cameron and Others:

The following is from an article I have written for the Collector
Network.  It is a general guide for ruby and sapphire.  I am also
including an article re Burma Ruby from my most recent newsletter, The
Gemstone Forecaster, Volume 13, #1.

 If you are a novice, and even if you are not, the safest way buy and
sell  a colored gem is with an American Gemological Labatory  (AGL)
certificate.  This lab pioneered colored stone grading.  As important as
the GIA  is for diamonds, AGL is for colored stones.    If you  go to
Sotheby's or Christie's you will see most major stones with this paper.   
 
The main attributes of buying a stone with this paper are: 1) The lab
identifies the stone as natural,  2) the lab gives the country of origin, 
3) the lab lets you know if the stone is treated or not ( In ruby and
sapphire heat treatment is an issue-stones not heated sell for a premium,
but are very difficult to find), and 4) the stone is graded for
color/tone, clarity, proportions, finish, and brilliancy. 

I am currently working on my web page which will have a scanned AGL
certificate, along with a GIA cert.  In the meantime, if anyone is
interested, call or E-mail me and I will snail mail or fax (not fax modem)
the document, along with how to read the cert.  Good Luck

Bob

RUBY

Without a doubt, the best and most sought after ruby in the world is mined
in Burma (now Myanmar).  The ultimate color is what is referred to is
³pigeon blood², or ³stoplight red², or ³cherry lifesaver red².  The reason
these gems are so sought over is that they  glow.  This glow is the direct
result of fluorescence.  When fluorescent gems are struck with ultraviolet
light, the gem adds an extra punch.  Burma stones tend to be light  and
bright.  The finest one carat Burmas cost between $3500-$15,000 per
carat.  Two carat Burmas are available from $6500-$30,000.  Three carats
between $10,000-40,000 per carat.  Four carat Burmas can easily exceed
$50,000 per carat.  If the gem is American Gemological Laboratory
certified as uncooked, add 40% to these figures.

Ever since Burma¹s Communist leaders shut off the country in 1962, Burma
ruby has been an endangered species.  Even before 1962, the famous Mogok
tract production was in sharp decline.  Moguk is 4,000 feet above sea
level and frequently has over 100 inches of rain a year.  It was been
worked since 1200 A.D.  Today, miners rework the old tailings.  There
still is some production but it is done in a clandestine manner, and the
gems are smuggled to Thailand.

Today, 50,000 gem miners have left Mogok and are now working a new find in
Mong Hsu (pronounced sue).  This mine was discovered in 1991 and the gems
hit the US market in 1993.  This mine is located 60 miles south of Mogok
and sits in rebel territory.  The Shans, an ethnic tribe at war with the
Burmese Central government, control this area.  Nevertheless, the Burmese
government has auctioned off the land for mining and is even involved in a
few joint ventures.  Gem poachers work this area by night.  Although the
vast majority of the ruby production is rejection grade, it has been
estimated that enough ruby has been mined to produce sales between
$100-$200 million.  Some of the very best Mong Hsu rivals the best Mogok. 
One problem is that it hardly ever occurs over 1.50 carats.   Most of the
goods are smuggled across the Thailand border at Mai-Sai or Mae-Sat.  Then
they are sent to Chantaburi, Thailand for heat treatment.  Rough Mong Hsu
tend to have a color-darkening blue hexagonal zone that runs through the
center of the stone.  After cooking, the stones turn into bright, lively
gems.  The largest Mong Hsu known is an eight carat gem, that was being
offered for $50,000 per carat.  As a general rule, they sell in price
between Mogok Burma and Thai ruby.  Many collectors, who never thought
they could afford to own Burma ruby are loading up on these stones. 
Recent mining history indicates this find may be small and short-lived. 
If true, these stones should rapidly appreciate in value.

Besides the Shans, there are 13 paramilitary groups roaming this area.  In
early 1995, The rebel Karen National Union (KNU) suffered a severe setback
in its decades-old struggle for autonomy when Burmese troops entered and
sacked their capital at Manerplaw.  The leadership of the KNU is
Christian, but 80% of their followers are Buddhist.  The Burmese junta
drove a wedge between the Christian and Buddhist Karens by sending
infiltrators to stir up resentment.  More than 3,000 soldiers, including
KNU guerrillas fled into Thailand as heavily-armed Burmese troops closed
in on the jungle base with the aid of an artillery barrage. It was the
first time Manerplaw had been captured since the KNU guerrilla army began
fighting for autonomy from the Burmese central government more than 40
years ago.   The All Burma Students' Democratic Front said in a statement
that, according to their intelligence sources, the ruling State Law and
Order Restoration Council (SLORC) had "been commanded to use chemical
shells fired by heavy artillery."  Burma's junta rulers, who crushed a
pro-democracy uprising in 1988, have been condemned by human rights groups
for widespread abuses, including arbitrary execution, torture and rape of
villagers in ethnic minority areas.  It is believed  hundreds have been
killed on both sides. The KNU, believed to command about 8,000 armed men,
was regarded as the strongest ethnic group still fighting the SLORC
besides the Shans.  The U.S. State Department condemned Rangoon's assault
on Manerplaw and called on Burma's SLORC to abide by its pledges to
resolve differences with the country's ethnic minorities peacefully. Over
20,000 Karen refugees are now situated in Thailand.  In essence, this is a
civil war.  Speculation is that SLORC has entered into a clandestine deal
with Thailand.  The Thais are banking on two massive energy projects with
Burma: the Martaban pipeline and, a little further down the road, damming
the Salween. Both of these projects will provide long-term energy
resources to Thailand; both of these projects will provide large amounts
of long-term foreign exchange for Rangoon; both of these projects are
threatened in all stages by continued armed resistance in Karen and Mon
states.  Both are also threatened by continued insurgences. 

If the Shans and the Karens were not trouble enough for purchasing Burma
ruby, the notorious  Khun Sa also operates from the Burmese corner of the
so-called "Golden Triangle," which includes parts of Thailand and Laos.
Much of the world's heroin comes from Burma, and Thailand is a major
transit route to the west.  Recently, Thailand's anti-drug agency has
asked the government to revoke the Thai citizenship of 10 suspected aides
of heroin warlord Khun Sa, a move that would make it easier to extradite
the men to the United States.  Thai police arrested the 10 in
November,1994 in three northern cities along the border with Burma. The
raids were coordinated with authorities in Hong Kong and the United
States. US officials have asked Thailand to extradite the 10 men to
America to stand trial on charges they had operated in Thailand and
elsewhere as field administrators for Khun Sa. 

Due to the severe shortages in Burma production, the majority of rubies
bought and sold today are from Thailand.  If you are looking to collect a
ruby on a relatively moderate budget, many experts predict this stone,
long term, will eventually gain the acceptance Burma ruby now holds. 
Almost all of these stones are cooked.  The reason is the Thai¹s firmly
controls every aspect of marketing; from mining to cutting and heating.  A
few Thai families control this market like a mini-DeBeers diamond cartel.
The majority of these stones tend to have purple secondary colors when
compared to Burmas.  Occasionally, you can find an intense red/orange that
is highly desirable.  Also, you sometimes find a Thai ruby with a lighter
tone similar to Burma, like the now defunct Bo Rai mine, that is highly
desirable.  Some Thai rubies approach Burma in appearance and are highly
sought after.  As a general rule, one carat Thai stones will sell between
$1000-$7500 per carat.  Two carat stones can range  between
$3500-$15,000.  Three carat Thai ruby can cost between $4500-$20,000 per
carat.  Four carat or larger Thai stones can exceed $20,000 per carat.

One interesting ruby worth noting is the star ruby.  Rather than being
faceted like most ruby, these stones are cut cabochon.  Until recently,
these stones always sold for more than the faceted ruby.  In the late 19th
century, three carat star ruby went for $3000 per carat.  Stones that are
found today that could be cut into stars are routinely heated to dissolve
the rutile, and then faceted.  Therefore, fine stones are rarer than
rare.  Also, US buyers must compete with the Japanese and the Europeans
who will pay any price for these gems.  These stones were the rage until
the 1960¹s, but have since fell out of favor.  If you want to see an
outstanding collection of stars, go to the American Museum of Natural
History in New York, and view the J.P.Morgan collection.  In searching for
these gems follow these guidelines.  The six legs of the star should be
sharp, not wide and blurry.  The star should be centered.  The main ray
should run lengthwise.  The star should be silvery or milky white.  The
color should be the color of a Marlboro cigarette box.  From a clarity
standpoint, the stones should be semi-transparent.  Like cate-eyes, the
stone should not be too flat on the top or too heavy on the bottom.

SAPPHIRE
Today, Kashmir sapphires remain at the top of the gemstone hierarchy.  The
blue they posses is rich, velvety, and serenely soft. Originally
discovered in 1882, the stones were so plentiful the locals would use them
as flint stones.  By 1925, the mines were nearly depleted.  Kashmir is a
mountainous region in northern India.  It is about 86,000 square miles and
has a population of over 6 million.  Due to its beauty and towering
mountain ranges, it is often called the ²Switzerland of India². Much of
the production today is smuggled out.  The region is so inaccessible, that
it can only be reached by foot or mule.  Mining is sporadic and only
attempted for a few weeks in the summer.  In the winter, temperatures can
fall below -45 degrees F, and blizzards can last for weeks.  During the
Depression, fine Kashmir blues sapphires never sold for more than $500 per
carat.  These stones are so rare, only a few may be available at any one
time.  Today, you can easily spend $5000-$10,000 for a carat size gem,
$10,000-$15,000 for a two carater.  Larger stones can go up to
$50,000-$60,000 per carat. 

Burma sapphire is almost as rare as Kashmir sapphire.  The production of
Burma is exactly the same situation as Burma ruby (See Ruby Section).  As
a general rule, you are looking for a milk-of-magnesia electric blue. 
Deduct 25% off the Kashmir prices to arrive at the price Burmas are
trading for.  Add 40% for an ultra-rare uncooked gem.  Many collectors
contend that Burmas will eventually reach price parity with the Kashmir
gems, and are buying whatever is available.  Despite the lower per carat
price, these stones are actually rarer than Burma ruby.

The major source for blue sapphire today are Sri Lanka.  In the
mid-1970¹s, the Thais experimented in heating these gems to permanently
improve these gems color.  Instead of using low temperature, charcoal-fire
heat, they bought high-temperature kilns and sophisticated furnaces.  This
caused the milky yellow rough (called Geuda) to turn blue and it also
caused cloudy stones to turn clear.  This new technology actually more
dramatically assisted commercial-quality blue sapphires than collector
sapphires.  Today, with the exception of a few fine stones, 99% of all
blue sapphire is cooked.   This market has actually turned into a two
tiered; market-cooked vs. uncooked.  Expect to pay about a 40% premium for
a non-cooked blue sapphire. As a general guideline, Sri Lanka blue
sapphire sells for 1/2 the price of Kashmir stones.  The finest one carat
Sri Lankan stones can range from $1000-$3000 per carat.  Two to five cart
sized stones sell between $3000-$7000.  Over five carats, stones can reach
$10,000 per carat.  For moderate budget collectors, stick with the finest
blue colors.

Thailand and Australia also produces blue sapphire, but they are overly
dark, and should not be collected.  They are simply too abundant.

Finally, like ruby, when some rutile filled stones are cut cabochon they
produce a six sided star.  Regretfully, because the Thai cookers have
discovered how to remove the rutile by heating these gems, they are
becoming very rare.  Also, in the 1940¹s, Linde, a division of Union
Carbide began manufacturing synthetic star sapphires.  Of course the
synthetic stars legs were perfect, and consumers began demanding the same
from the natural gems.  This is really too much to ask from a natural gem.
Nevertheless, if you are interested in collecting natural star sapphires,
here are some tips.  The quality of the star is everything.  The star is
more important than the color.  Grayish  sapphires tend to have a better
star than the top blues.  Gray stones tend to be better cut than the
blues.  The blues tend to have sagging bellies, while the grays are
flatter.  This is because the blues are more translucent, and cutters must
keep more of the original rough to retain a star.  Therefore to collect
fine blues, expect to pay for extra weight.  However, on the positive
side, the consolation is that blues with fine stars are rare, and sough
after by collectors worldwide.  If one or two of the legs of a star are
missing in a 10 carat blue, expect to pay $3000 per carat.  If the star is
perfect, double this price-if you can find one.  Prices ease a little at 5
carats or less.  For collectors on a budget, you can buy light blue or
gray stars for 1/10 of these prices.
__________________________________________________________________________________________
The E-MAIL EDITION, VOLUME 13,#1
THE GEMSTONE FORECASTER NEWSLETTER
$29.00 Per Year
Edited by Robert Genis,President
National Gemstone Corporation
P.O. Box 42468
Tucson, AZ 85718
1-800-458-6453
(602)299-5009

RUBY: KING OF GEMS

History
In November of 1885, the British conquered Burma. The British were
occupying the palace at Mandalay, home of the Burma king, Thibaw. The
palace was rumored to be filled with Burma ruby. Burmese women servants
spent the day bowing and scurrying everywhere throughout the palace. The
British soldiers moved quickly, surrounding the palace, the rooms, the
halls, the court, and the King¹s baggage. But, in a typically British
fashion, it was not in their nature to search women. By dawn, the women
servants had spirited away the vast majority of the King¹s fortune beneath
their sarongs. Who knows how many millions of dollars were lost due to
this act of chivalry? It is rumored that night the servants spirited away
two 98 and 74 carat gems, a 400 carat rough ruby that was later recut to a
70-carat stone, and a 20 carat stone. However, it should also be noted,
the British supervised and profited from the mining of Burma ruby from
1885 until World War Two. 

According to gem history, diamonds were first found around 800 B.C. in
India. Most likely, ruby was discovered earlier in India, and later at
³Gem Island², now called Sri Lanka. Most early writers called every red
stone they found ruber, from the Latin, red. Theophrastus, the Greek
scholar, grouped all gems according to color in 315 B.C. The problem we
now know is that he included spinel and garnets with ruby. In 79 A.D.,
Pliny, in the world¹s first encyclopedia, Natural History, wrote a great
deal about gems. He pointed out how gems were heated and how, ³goldsmiths
would use foil beneath the gems to make them glitter like fire². 

Ruby is a gem steeped in lore. It is said ruby brings its owners wisdom,
happiness, health, and good luck to gamblers and lovers. In 1415, King
Henry the Fifth led his small British army against the French at
Agincourt. For protection, he wore the famous Black Prince Ruby in his
helmet. After winning the battle, he credited the stone for taking a blow
meant for his head. Although The Black Prince Ruby sits in the Imperial
State Crown in London, it is actually a 170 carat spinel. 

Medieval Europeans believed if a ruby turned dull or dark, it meant
misfortune was coming. Legend has it that this is what happened to
Catherine of Aragon, the first wife of Henry the Eighth, before he
divorced her. The wife of Franz Joseph of Austria, Elizabeth, always wore
her ruby as a talisman. One fateful August morning she forgot to put it
on, and was assassinated that day. 

Geology
Ruby belongs to the corundum family, which is a crystal form of aluminum
oxide. However, it takes the perfect combination of chemicals and
conditions to produce corundum crystals. A combination of heat, pressure,
aluminum, and oxygen must occur in exactly the right mix, well below the
earth¹s surface. If the corundum crystal is red, it is a ruby, if it is
any other color, it is a sapphire. The other colors can be blue, pink,
orange, yellow, green, gray, or multi-colored. A tiny amount of chromium
causes the crystal to grow into a pink sapphire. If the chromium comprises
about 1/2 to 3% of a growing crystal, the crystal grows into a red gem. 

Pigeon Blood Question
The reason Burma rubies glow is the high amounts of chromium which causes
the gem to fluoresce. Buyers want the reddest stones available while
paying pink prices, and sellers want to call every shade of red or pink a
ruby. 

There are thousands of different shades of red and pink, but for the sake
of argument, let¹s categorize the stones into three major groups. The
first major group is the ³hot electric pink². These are the stones that
were readily available in jewelry stores during our parents¹ and
grandparents¹ times. Today, most of these stones would be classified as
pink sapphires. These stones are lively, bright, and light-toned. However,
there is a color point where the hottest of these stones (with red
undertones, although predominately pink) are bought and sold as Burma
ruby. The second major color group is best described as ³electric
magenta². The predominant color is red, and the secondary color is pink.
Again, these stones are light-toned, extremely bright, and vibrate with
color. Finally, the last, and considered the best by the majority of
dealers and collectors worldwide, is the pigeon blood. Perhaps a better
description would be ³stoplight red or cherry lifesaver red². The
secondary color with this group is usually orange, rather than pink. 

There is the story of a gem dealer who became so obsessed with the term
³pigeon blood² he decided to find out exactly what pigeon blood looked
like. He went to Rangoon, hired a Buddhist priest, and bought 12 Burmese
pigeons. On a certain day, at high noon, he went to the beach with the
priest and the pigeons. The priest beheaded the birds one by one with a
sword. After waiting three minutes, he dripped the blood of the birds into
his palm, then held them up for examination. The conclusion? Everybody who
used this term was wrong. Instead of being red, the blood of pigeons is
shockingly pink. 

Sources
As mentioned earlier the two main sources for ruby for thousands of years
(most likely the stones that were described in the Bible) were from India
and Sri Lanka. These rubies supplied Europe during the Roman-Greco period.
However, the major source of great ruby has always been the Moguk Stone
Tract of Burma. The majority of great stones ended up with the Indian
maharajas 128 miles north of the gem area. We are talking about Burma ruby
up to 100 carats, some as big as a golf ball that were used on turbans.
These museum quality rubies eventually left India for England when the
English occupied India. In the middle 1600¹s Tavernier returned with many
great gems from India to tempt English royalty. The King of Bijapur showed
Tavernier a 50.75 ³clean, top-quality cabochon². After the British annexed
Burma, a deep, rich red 32.3 cushion cut ruby was sold in London for
$20,000, and a 38.5 pear was sold for $40,000. 

Mining
Today, Burma is producing more Burma ruby than ever before. After decades
of moonlight mining and pilfering, the current government has become
independent partners with a few mining interests. There are now seven
government operated mining operations and dozens of joint venture leases
with locals. After a few years of these operations, it appears that about
half of what is found passes through official channels. The balance of
gems are smuggled through the leaky border into Thailand. 

In 1990-91, the Thai gem dealers moved in to buy up what they thought was
a new Burma ruby find. It turned out that the limited production of
electric pink gems were actually from North Vietnam. Since Vietnam does
not possess the pedigree of Burma, many Thai speculators went bankrupt
when they discovered their ³Burmas² were actually from Vietnam. Then, in
1992-93, a new flood of Burma ruby hit the international gem market. Of
course, it turns out that the new source was from Mong Hsu. The Thai
dealers, still reeling from being burned by the Vietnamese, were
skeptical. Months later the real story came out. There really was a new
find in Burma. These stones are small and bright red. Gem collectors who
have become shell shocked by the high prices of Burma ruby over the years
were suddenly ecstatic. People who never thought they would ever again see
a bargain in Burma ruby are actually loading up on Mong Hsu, sure prices
will rise as the market acclimates to them or the mine plays out. Most
experts believe Mong Hsu are no real threat to the traditional Moguk
material, which still sets the standard of color and quality. 

The Mong Hsu phenomenon has further solidified the Thai dominance of the
ruby and sapphire market. Irrespective of country of origin, all ruby ends
up in Bangkok. The buying power of a few wealthy Chinese/Thais is
relentless and few miners can escape their wrath. They purchase everything
to heat and then mount in jewelry. Of course, the highest-quality stones
are sold one at a time to overseas dealers and collectors. 

The Thai¹s have become experts at understanding crystal chemistry and the
process of heating gems. They heat virtually all rubies and sapphires. The
only gems that are not cooked are stones too bad or too good to improve.
The goal of heating gems is to improve the gem¹s clarity, not to improve
color. Most Burma rubies contain ³silk², or microscopic rutile needles.
This silk clouds the overall appearance of the stone. When heated to a
temperature between the melting point of rutile and ruby, the ³silk²
dissolves without damaging the stone, and the stones appearance becomes
³poppy². 

Conclusion
Gems used to be strictly owned and traded by kings, queens, and their
courts. The fact you can invest or collect rubies today is a relatively
recent phenomenon. Never forget, even if your stone is heated, it will not
fade. Rubies are already tens to hundreds of million of years old. It took
mountain-building and erosion over eons to lift it close enough for
someone to find. Your gem is hardy enough to last for another 100 million
years. With just a little care, you can safeguard your investment so that
your children, and their children, and their children, can enjoy the
cleverness of your choice and the wisdom of your decision. Kings and
queens knew what they were doing. Gems truly do last forever. 

IMPORTANT NOTE:  The prices given in this article are indications only. 
Exceptional stones may sell for above these general price guidelines. 
Forced liquidation gems may trade at a substantial discount to the prices
given in this article.  The only true price is what a knowledgeable buyer
and knowledgeable seller agree to as a transaction price.

============================================================
National Gemstone Corp.
Robert Genis,President
PO 42458
Tucson, AZ   85733
1-800-458-6453
1-602-577-6222
Author of The Privacy Report
Editor of The Gemstone Forecaster Newsletter
" You can carry enough gems on your body to set you up for life" Ian Flemning
 Recommended by the Dow Jones-Irwin Guide to Fine Gems and Jewelry. 
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Dealers in fine diamonds & colored gems