TUCSON, AZ- February 4, 2007—A panel of CEO’s interacted
with a passionate audience on the topic of “Colored Stone Grading: Friend
or Foe?” The panel discussion held on Saturday, February 3, 2007 at the
Hotel Arizona during the Tucson’s International Gem & Mineral Show addressed
a standing-room-only crowd and was sponsored by C.R. “Cap” Beesley,
President of American Gemological Laboratories (AGL).
Among Beesley’s opening remarks welcoming everyone, he declared that “Our
goal at AGL is to quell consumer and trade anxieties with relevant information.
For that reason we have entered into value added partnerships, such as our official
North American grading laboratory status with ICA, to promote colored gemstones
and to develop services to satisfy all levels of the trading pipeline.”
Panelists included Alfredo Molina CEO, The Molina Group, Douglas Hucker CEO, The
American Gem Trade Association (AGTA), Arthur Groom, CEO, Arthur Groom & Co.
and Michael Haynes, CEO, Collectors Universe, parent company of AGL and GCAL.
The panel was moderated by Diane Warga-Arias, President, DWA Communications, who
challenged all to consider the use of Diamond Grading Reports and Certificates
in the diamond industry, Diane charged each panelists to present their point of
view of expanding the use of Colored Gemstone Reports and the predicted impact.
The first to address the issue was Alfredo Molina who commented that while grading
reports have been used extensively at the luxury high-end of the market, he added
that “Both the middle market and mass market should promote and sell colored
gemstones with reports because it would stimulate consumer confidence, desire
and demand for all market segments.”
Douglas Hucker followed and offered his observations saying, “Just as third
party documentation is important to consumers for diamonds, introducing clear
and concise reports will enhance colored gemstone sales.”
Panelist Arthur Groom stated his views by saying, “The retailer does not
have time to create an educational program for colored stone reports and certificates.
Certificates are the best alternative because they make the difference across
the final 18 inches of the retail counter.”
The last panelist was Michael Haynes, who displayed several graphs showing that
grading had assisted in increasing the values of goods in other markets into which
Collectors Universe had entered and provided grading services. “We help
markets grow,” Haynes said. “Part of our mission statement as a company
is to increase the trading volume of the market as well as the enjoyment and interest
in owning high value assets.”
One of the questions posed to the panelists and audience was, if reports are so
valued, why are dealers and retailers not using more colored stone grading reports.
Hucker explained, “There are several reasons why people don’t use
reports. First, reports are new to the industry and they do not have enough exposure.
There is some confusion about the reports and their efficacy and there is a low
confidence level in the industry regarding color reports. Also, there is a level
of complexity of colored stones in general that make colored gemstone reports
more difficult to understand, and the reports require a more sophisticated level
of technology for production.”
Haynes stated that he agreed with Hucker on these grassroots issues and added
that these reasons result from a marketing challenge. “Up until now,”
Haynes explained, “there has not been an economically viable report on colored
gemstones. AGL has bridged this gap by producing a $25 and a $75 report for use
on smaller gemstones and now we must prove the value of the service to the commercial
market.”
Abe Nassi, a dealer in colored gemstones and a member of the audience at the panel
discussion commented, “The truth is I have been in this business for many
years and Cap Beesley has been providing colored grading stone reports for 30
years and I have advocated and used them in my selling process. But now Collectors
is involved and I think it is a brilliant idea to give us a wider range of colored
stone reports.”
Noted author and commentator Antoinette Matlins was also in attendance at the
panel discussion and provided her view by asking, “Who in the marketing
chain is going to provide these reports? They are not available on most stones
when retailers buy them from dealers. Once the retailer owns the stone, it is
too late and too much of a hassle for the retailer to have to get the reports.”
Matlins offered advice by stating, “I’d like to see Collectors Universe
get reports done for dealers so that retailers get what they need at the counter
to sell color to consumers.”
Jean Claude Michelou, Vice President of the International Colored Gemstone Association
was also in attendance at the panel discussion and offered his perspective by
commenting, “We [at ICA] partnered with Collectors Universe because we are
pledged to bringing the message of confidence to the consumer.” Matlins
added, “I was thrilled to see the ICA and Collectors Universe partnership
for this reason.”
After the panel discussion concluded, Beesley and his gemological staff, including
Vice President and Chief Gemologist Christopher Smith and Senior Staff Gemologist
Wendi Mayerson, presented an educational seminar on new developments in detection,
the use of colored gemstone reports in selling and the opportunities in broadening
the colored gemstone offerings at retail.
About American Gemological Laboratories
Founded in 1977 by C.R. “Cap” Beesley, American Gemological Laboratories
(AGL) has been a pioneer as the first gemological laboratory to offer colored
stone grading reports and comprehensive gemological origin reports. AGL is also
the Official Colored Gemstone Laboratory of the Fine Jewelry CEO Summit and the
JCK Las Vegas and JCK Invitational shows, as well as the official North American
Laboratory of ICA and the 2007 Platinum Sponsor of the ICA (International Colored
Gemstone Association) World Congress in Dubai.
About Collectors Universe
Collectors Universe, Inc. is a leading provider of value added services to the
high-value collectibles, diamond and colored gemstone markets, with the Company’s
common stock traded on the NASDAQ Global Market under the symbol CLCT. For the
most recent fiscal year, CLCT authenticated and graded over 3 million items valued
at just less than $2 billion.
Contacts:
Vanessa Lee
LUXURY BRAND GROUP
vanessa@luxbrandgroup.com
TEL: 949-724-9245
C.R. “Cap” Beesley, President
AGL
agl@aglgemlab.com
TEL: 212-704-0727