ZALE CORPORATION and

JEWELLERS VIGILANCE CANADA

Jewelry & Gem Training for Law Enforcement©

Zale Corporation developed this presentation to help clarify the often confusing and sometimes specialized language used in the jewelry industry.

The primary goal of this document is to provide law enforcement an understandable working reference guide to help them in investigating jewelry crime. It is intended to provide investigators/officers knowledge on various types and styles of jewelry and gems and the characteristics that make them unique.

If any of this information is beneficial in resolving one criminal case, it has served its purpose. If Zale Corporation can be of assistance, please contact us anytime.

Thank you for your support,

Zale Corporation Loss Prevention(800) 999-3564Jewellers Vigilance Canada(800) 636-9536

Presentation Purpose

Table of Contents

INTRODUCTION2: Presentation Purpose3: Table of Contents4: Jewelry Crime Language

DIAMONDS5: Distinguishing a Diamond6: Cut & Color 7: Clarity8: Diamond Imperfections9: Carat Weight 10: Diamond Report11: Appraisal Summary Cards 12: Certification13: Certifying Companies14: Diamond Switch Crime

CUBIC ZIRCONIA & MOISSANITE15: Cubic Zirconia: Fake Diamonds16: Comparing Diamonds and Cubic Zirconia 17: Moissanite: Fake Diamonds18: Comparing Diamonds and Moissanite19: Moissanite Characteristics20: Diamond, CZ and Moissanite Testers21: Questions for a Diamond Investigation

PRECIOUS METALS22: Precious Metals, Gold, Silver, Platinum23: Gold24: Identifying Gold25: Sterling Silver26: Platinum and Palladium27: Facts about Rhodium

CHAIN & BRACELET STYLES28- 30: Chain Styles31: Chain and clasps styles32: Bracelets

GEMSTONES & BIRTHSTONES33: Gemstones, Birthstones and Pearls34 - 35: Stone setting terms

WATCHES36-37: Watch Terms38: Watch Categories39: Serial Numbers

GUIDANCE WITH STOLEN ITEMS40: Where Stolen Items end up? 41: Online resources 42: Zale Loss Prevention Contact Information

Jewelry Crime Language

Grab and Run: A sales associate shows subject an item. During the presentation the subject grabs the item and flees the store.

Distraction / Sneak Theft: A subject or multiple subjects keep a sales associate occupied while another subject reaches into an unlocked showcase or enters a back office area to steal money/merchandise.

Diamond Switch: A subject is presented a real diamond. During the presentation, the subject uses slight-of-hand to substitute the loose or mounted diamond with a Cubic Zirconia or a Moissanite (fake diamond) and returns the item to the sales associate.

Glass/Case Cutting: Subjects cut the silicon sealant holding the display glass together and lift the glass to more rapidly gain access to merchandise inside the display showcase.

Smash And Grab: Subjects use an object to break the re-enforced display glass and steal items.

Traveling Salesperson: A person who travels to jewelry stores in order to sell/promote a jewelry merchandise line. These people are targeted by jewelry gangs who make and/or take an opportunity to steal jewelry/gems while the salesperson is in transit (car / hotel / airports / restaurants).

Distinguishing a Diamond

Diamond: a native crystalline carbon that is the hardest known mineral, that is usually nearly colorless, that when transparent and free from flaws is highly valued as a precious stone1

Since the 1970’s, the Rapaport Diamond Report has been considered the primary source of diamond price information and is used in markets worldwide as the basis for establishing inter-dealer prices. The report provides a starting point for negotiations and a base for establishing a diamond’s value.

Keep in mind, sources higher in the diamond pipeline (i.e. dealers/brokers) will pay less than the final customer who is paying retail prices.

The 4C’s: A diamond’s price will be established after the 4C’s of the crystal are determined:

1. Cut 2. Color 3. Clarity 4. Carat Weight

1. Source: Merriam-Webster Dictionary Online

Diamond Cuts

Diamond Cut & Color

Diamond Anatomy

Color Scale: closer to colorless, the better quality

Diamond Clarity

Used to describe natural inclusions or imperfections in a diamond crystal structure. These have varying degrees of influence upon the value of the crystal.

More expensive Less expensive

Most common diamond blemishes and inclusions can be found by a trained eye using a jewelers loupe.

Types of Diamond Imperfections

Bubbles: Transparent bubbles the size of a pinpoint or pinhead

Feathers: Semi-transparent vein-like feather shaped imperfections

Clouds: Semi-transparent, similar to smoked glass

Cracks

Ice: Part of the stone which appears frozen and dead

Carbon spots: Black imperfections

Imperfections are illustrated in red, but visually they will be dark/black in color.

Carat: standard measure of diamonds and gemstone

Karat: standard measure of precious metals (gold, silver, etc.)

Carat Facts

Carat Weight

1. Carat weight is a measure of weight, not sizeThe weight will not change unless the stone is re-cut or polished.

2. Pawn shops often list diamonds with a “point” value versus a carat weightOne carat is divided into 100 points, so a diamond weighing 1/4 carat may also bedescribed as .25 points. Ex: 1 Carat = 1/5 of a gram = 1/142 ounce

3. Diamonds are not priced in a linear fashionPrices are determined by supply and demand. Although a one carat stone is double the weight of a half carat stone, one carat stones are more than twice as difficult to find. As the weight of diamonds increase they become more and more difficult to find. That is why they are not priced in a linear fashion.

Source: http://www.sunjewelry.com/faq.html#2

Full-page report contains all the specific details: 4C’s, proportion information and a certified number listed on the diamond.

♦ Inclusions/blemishes will be illustrated in red on the diamond diagram.

♦ List the certified number (like a serial number)

♦ These reports come in different sizes,depending on issuing company and country.

1. Certificates are not appraisals, they do not contain any information regarding the value or price of a diamond.source: http://www.dsourceva.com/diamonds-certification.htm

Document containing the characteristics about a diamond that

is valuable in demonstrating authenticity in case of a theft/loss.1

Diamond Report

Appraisal Summary Cards

Some diamond items will be accompanied by Appraisal Summary Cards instead of a full certification as shown on the previous slide.

These cards provide the certification number (“S.O.A. #” or Summary #) which allows you to request the full certification from the issuing company.

A certified number is like a serial number which identifies the piece.

A micro-laser beam etches a microscopic inscription on the girdle of diamonds weighing 0.18 carat or more. Laser inscriptions usually contain the certification laboratory initials and the certifications number.

The certified number can be found on either of two places:

Sample Laser Girdle Inscription Sample Etched Band Inscription

Diamond Certification

American Gem Society (AGS)8881 W. Sahara Avenue, Las Vegas, NV 89117 Telephone: 866-805-6500

European Gemological Laboratory, Inc. (EGL)6 West 48th Street, New York, NY 10036Telephone: 212-730-7380

Gemological Institute of America (GIA) 5345 Armada Drive, Carlsbad, California 92008Telephone: 760-603-4031

Gemological Science International, (GSI)581 Fifth Avenue, 4th Floor, New York, NY 10017 Telephone: 212-207-4140

International Gemological Institution (IGI) 589 Fifth Avenue, New York, NY 10017Telephone: 212-753-7100

GS Laboratories of America, Inc. (GSL)5525 N. MacArthur Blvd., Suite 620, Irving, Texas 75038 Telephone: 888-580-7771

Major Gem Certification Companies

What is a diamond switch?The subject will steal a real diamond ring from a retailer by committing a grab & run or distraction/sneak theft. They replace the real diamond with a fake stone in the mounting. Once again they go to a diamond retailer and while being shown a similar real diamond ring they use slight-of-hand to keep the real ring and switch it with the fake diamond ring. This often happens to unsuspecting sales associates.

Diamond Switch Crimes

What are fake stones? There are two types:

1. Cubic Zirconia: like a piece of glass 2. Moissanite: a man-made crystal

Cubic Zirconia (CZ), the cubic crystalline form of zirconium dioxide (ZrO2), is a mineral that is synthesized with small additions of other minerals, normally Yttrium or Calcium to create a diamond or gemstone simulant. The synthesized material is hard, optically flawless and usually colorless, but may be made in a variety of different colors.

Cubic Zirconia: Fake Diamonds

Appeal: low cost, durable, and has close visual likeness to diamond/gemstonesCompetition: diamonds, moissaniteCut: similar to a genuine diamond/gemstone, CZ can be chiseled into avariety of shapes/cutsColor: in addition to classic clear, CZ are available in lavender, blue, amethyst, canary yellow, pink, emerald green, ruby red, etc.Clarity: has slightly less brilliance (liveliness and sparkle) than diamonds, but has more fire (flashes of rainbow colors). Carat weight: about 75 percent heavier than a diamond/gemstoneDetecting a fake: a CZ is so similar to a diamond that a trained gemologist may be fooled. A CZ is more brittle than a diamond.

Diamonds almost always have impurities(small imperfections). To check, get a 10x magnifier and look at the stone to see if there are any small specks, usually showing as tiny black bits (inclusions). If you can see these, then it is likely you have a diamond. However, the highest quality of diamonds (very rare to find) will have no specks, so this is not a foolproof check.

Comparing CZs to Diamonds

Check color. Over 90% of diamonds sold for rings are not clear, but a CZ is very clear. Check your stone against a known CZ stone and see if it is slightly dull or has a very slight hint of yellow. It is most likely a diamond if in clear light, the stone has a slight yellow coloring. 1

TIPIf you cannot easily find inclusions under a 10x magnification you should be suspicious. Be aware that some gas bubbles in cubic zirconium may appear like diamond inclusions.2

1. This is not a foolproof check, but yet another method to check diamond authenticity. Source: http://www.ukqna.com/garden/1466-2-home-ukqna.html 2. Source: http://www.bestdiamonds.co.uk/faqdetail.asp?faqid=11

Moissanite (moys-uh-nite) may initially look like diamond or CZ. All are near-colorless, but their similarities are limited to color. Moissanite is a unique jewel with different physical, optical and chemical properties than Diamond or CZ.

Moissanite: Fake Diamonds

Moissanite does occur in nature however, the crystals are tiny and rare. They are so scarce that enough gem-quality natural moissanite does not exist to create a pair of solitaire earrings.

Today, moissanite jewels are lab-created through a proprietary and patented thermal growth process using silicon carbide.1

1-carat (200 mg) moissanite gem sells for about $500 (2007 USD), while a diamond of similar size and color typically sells for $4500 or more.

Moissanite jewelry is sold widely at online websites and at a variety of retail shops.

1. Source: http://www.moissanite.com/learn_more.cfm#a1

Melting point: Diamonds burn at 1475°F while moissanite remains undamaged by temperatures up to 3275°F

Resistance: Moissanite is tougher than CZs and extremely resistant to breaking and chipping; however keep in mind, diamonds are thetoughest

Comparing Moissanite to Diamonds

Distinguishing Characteristics:1. Moissanite has a double refractive break light that creates a very slight green, yellow, or gray fluorescence under UV light. 2. Cuts with higher brilliance tend to have a much “clearer appearance" (i.e., round brilliant, square brilliant, and cushion cut) versus cuts that have a lower refractive index such as the marquise, radiant and especially the pear-shaped cut. 3. The color is often defined as "near colorless" which on the diamond color scale ranges from G through J.

Distinguishing Characteristics

Polished girdles are often found on Moissanites versus diamonds. When used in conjunction with other methods, this can helps separate them from diamonds.

Doubling (think: parallel train tracks) is visible when using a 10x jewelers loupe on a moissanite crown or pavilion (underside) facets. Conversely since a diamond is singly refractive you will not see any doubling. 1

Moissanites have rainbows. With a slightly higher index of refraction (brilliance) and greater dispersion (fire) than diamond – moissanites show many more "flashes" of color than a diamond.

1. Source: http://www.moissanite.com/learn_more.cfm#a1

Diamond, Moissanite, & CZ Testers

TIPA stone that tests as a diamond on a conventional diamond tester, can also be found to be moissanite. Be sure when testing a stone that your tester can distinguish between diamond and moissanite.

Diamond Testers: Conventional diamond testers differentiate between diamonds and most simulations (CZ’s) based on thermal conductivity. Diamonds conduct heat very well because of their chemical nature. Most diamond imitations simply lack this ability.

Moissanites and diamonds are both excellent conductors of heat and will draw the heat from the probe faster than simulations (CZ’s). Moissanite testers: The tester works by measuring the loss of heat from a metallic probe to determine if it is a moissanite or diamond.

Questions to Ask in an Investigation

Theft/Loss Report (diamond rings/pendants/earrings)1. Where was the piece purchased? 2. Is/are the diamond(s) certified?3. Who is the certifying company? 4. Do you have a full certified report or summary card? 5. Where is the certified number located on the piece?6. What is the value of the item? 7. Do you have an appraisal for the diamonds?

Enter the certified number into either CPIC (Canada) or NCIC (US) and visit the Jewellers Vigilance Canada website: http://www.jewellersvigilance.ca/ or Jewelers Security Alliance website: www.jewelerssecurity.org to register the lost/stolen piece.

Precious Metals

GoldSilver

Platinum

♦While there are eight precious metals of jewelry, the most prominent fall into one of three families: gold, silver and platinum.

♦To strengthen silver and gold jewelry, pure precious metals are hardened and strengthened by alloying these base metals usually with copper.

♦Platinum and palladium are alloyed with the rare metals of iridium and ruthenium.

♦Trademarks are used on jewelry to identify them as the product of a particular manufacturer. They are made up of letters, numbers or other symbols, but most of the jewelry industry use letters.

GoldEight Gold Facts

1. Most prominent metal used in jewelry making2. Almost ½ all gold production is mined in

S. Africa3. Melting point: 1950 degrees Fahrenheit4. It is almost twice as heavy as pure silver in

natural state5. Pure 24 karat is considered too soft for use in

making jewelry…but, alloying it with other metals increases its hardness

6. Gold is available in several colors described as yellow, red, pink, green and white. Color variations are obtained by changing the proportions of copper, nickel, zinc or silver in the alloy

7. Does not rust, tarnish or corrode – it virtually lasts forever

8. White gold is an alloy gold mixed with at least one white metal (silver or palladium)

♦ Every piece of gold jewelry is stamped with an American karatage marking (ex. 14K) or the European fineness marking (ex. 585).

♦ Millesimal fineness : Denoting the purity of platinum, gold and silver alloys by parts per thousand of pure metal in the alloy.

♦ Jewelry normally includes a manufacturer's trademark.

♦ These stamps may be located anywhere, including a clasp or an earringpost.

Identifying Gold

24 karat gold = 100% gold18 karat gold = 18 parts gold / 6 parts other metals14 karat gold = 14 parts gold / 10 parts other metals 10 karat gold = 10 parts gold / 14 parts other metals

The European marking system is expressed on a scale of fineness of 1000.

♦ Pure silver is too soft to use to make jewelry and is often alloyed with copper to make it durable enough for jewelry ♦ Unlike gold, karats are not used to mark silver. Legally a mark is not required since there is one fineness: 92.5% silver becomes .925

♦ Quality jewelry uses a firm’s trademark that is next to the quality mark ♦ Pure silver is white & has a melting point that exceeds 1700 degrees F♦ Silver is used less than any other metal in jewelry because of its tendency to tarnish.

Sterling Silver

Marking: .925 (or 92.5% silver), sterling, sterling silver, and silver Nickel Silver: contains no silver and uses an alloy of nickel, copper and zincSilver-filled: must have a coating of at least 1/20 the total weight of the pieceSilver plate: a coating of silver of at least 7/1,000,000 of an inch Sterling Silver: pure silver alloyed with 7.5% copper Vermeil: gold plated over sterling silver

Silver Terms

Platinum Basics1. When pure, the metal appears grayish-white and firm. 2. The metal is corrosion-resistant. 3. Platinum is more precious than gold. 4. The price of platinum changes along with its availability, but its price

is normally slightly less than twice that of gold. 5. Platinum does not oxidize in air at any temperature, but can be

corroded by cyanides, halogens, sulfur, and caustic alkalis. 6. This metal is insoluble in hydrochloric and nitric acid.

Platinum / Palladium

Palladium Basics1. Palladium is used as replacement for platinum or white gold. 2. Palladium is one of three most used metals alloyed with gold.3. Palladium, white gold, nickel and silver will discolor at soldering

temperatures.

Facts about Rhodium

1. Rhodium is a hard silvery white and durable metal that has a high reflectance (like chrome).

2. Rhodium Flashing/Plating: Rhodium is electroplated on white gold and platinum to give it a reflective white surface.

3. Rhodium may be used in coating for Sterling Silver in order to strengthen it and reduce tarnish.

4. The primary use of this element is as an alloying agent for hardening platinum and palladium.

15 inches 16 inches17 inches 18 inches20 inches 22 inches24 inches 30 inches

Choker…………14 - 16 inchesPrincess……….18 inchesMatinee………..20 - 24 inchesOpera………….28 - 30 inchesRope…………..40 inches +

Introduction to Chain Styles

Birdseye Chain: very strong link style

Bismark Chain: flat chain shaped into woven pattern

Byzantine Chain: intricate link style

Box Chain: square boxes affixed together

Cobra Chain: triangles faceted together

Traditional Chain Names

Common Necklace Lengths

Common Chain Styles

Figanchor Chain: Figaro and Anchor chain comboAnchor Chain: durable, open link w/bar

Figaro Chain: flat chain w/3 round links then a long linkConcave Figaro: Figaro w/concave surface

Cuban Anchor Chain: modified Anchor linkFigarope Chain: Rope and Figaro chain combo

Greca Chain: durable, distinctive chainCurb Chain: diamond finish w/curb links

Herringbone Chain: brilliant flat chainFeather Rope Chain: very light weight

Figagreca Chain: Figaro and Greca chain combo Hugs & Kisses Chain: X and O chain

Common Chain StylesOmega Chain: polished flat or domed chainLink Chain: flexible with a series of interlocked links

Marine Link Chain: unique style Plaque Chain: curb links soldered to plaques

Quintuple Rope Chain: 35% lighter than classic ropeMarquis Chain: filigreed open diamond cut rope

Rolex Chain: chain patterned after Rolex watch bandMilano Chain: rope with an open link

Mirrorflex Herringbone Chain: flexible Herringbone Rope Chain: comes in various styles

Nugget Chain: flat chain, resembling gold nugget Royal Quad Chain: wide, flat polished Herringbone

Common Chain & Clasp Styles

San Marco Chain: large macaroni shaped links

Serpentine Chain: machine-made with “S” links

Singapore Link Chain: twisted, light-weight links Tornado Chain: twisted herringbone chain

Supreme Rope Chain: light weight solid rope

Tinsel Chain: twisted chain w/tinsel-like appearance

Clasp Styles

Spring Ring Lobster Claw Barrel

7 inch bracelet8 inch bracelet

9 inch bracelet or anklet10 inch bracelet or anklet11 inch bracelet or anklet

Gold or Silver Bracelets and Anklets

Bangle: usually a non-flexible bracelet that slips on; some have clasps that open.

Common Lengths

Cuff: non-flexible bracelet that resembles a cylindrical band; most have openings at the back so they slip on easily and others sometimes have hinges

Link: flexible bracelet w/series of interlocked links

Charm: link bracelet that has charms attached

Gemstones, Birthstones & Pearls

♦ Nearly 300 types of gems

♦ Lab created stones are chemically, physically and optically identical with natural gemstones. A professional gemologist would be able to determine natural vs. created.

♦ Real pearls have a grainy feel when rubbed on your tooth; synthetics are smooth

Pearls colors

Stone Setting TermsProng Setting: Great classic setting that shows the beauty of stones. ♦ Allows the maximum amount of light to enter from all angles. ♦ The stone is held securely in place by evenly spaced prongs of metal. ♦ The number of prongs varies according to the stone's shape (3, 4 and 6

are common)

Bezel Setting: Modern setting that is becoming more and more prevalent.♦ A band of metal is pressed around the edge of a stone; top of the stone

is flush with the top of the metal. ♦ Bezels can have straight edges, scalloped edges, or can be molded into

any shape.

Channel Setting: Setting that's both modern and unique.♦ Stones are aligned side by side and are between two rails of metal at an

even height. ♦ Used predominately for rings and bracelets.

Bar Setting: Variation of channel setting combines contemporary & classic. ♦ Thin bar of metal holds the stones in place on either side, so that each

bar has a stone on either side of it. ♦ Used predominately for rings.

Stone Setting Terms

Invisible Setting: The effect of this setting is of a brilliance unfettered by metal.

♦ An invisible setting, the stones are placed such that the metal is not visible from in-between stones, giving an appearance of a continuous, uninterrupted surface.

Pave Setting: A setting in which small stones are set in rows as close as possible with no metal between them, so that the piece literally looks paved with stones.

♦ Most commonly seen with diamonds, but may be used with any stone.

Cluster Setting: A cluster of small stones mounted together around a larger central stone.

Watches

Rolex Watch USA, Inc(800) ROLEX-90 Main number(212)688-5151 Counterfeiting

Movado Group, Inc(201) 518-7202 Main number

Richemont North Am. IncCartier & Van Cleef & Arpels(203) 925-6596 Main number

Watch Components

Resources

Watch Movement Terms

CHRONOGRAPHS:Analog - shows both time and stopwatch functions with hands; the center hand can be used for stopwatch functions, while sub-dials may indicate seconds, minutes and hours, and occasionally tenths or hundredths of a second.Digital - uses a digital display for both timekeeping and stopwatch functions, either with separate displays or by switching modes on a single display. Analog-digital - a standard analog watch with permanent center seconds and a separate digital display that usually operates independently of the analog section.

ECO-DRIVE:Sunlight or any artificial light are absorbed through the crystal and dial. A solar cell beneath the dial converts the light into electrical energy to power the watch. With regular exposure to light, ECO-Drive continuously recharges itself.

KINETIC MOVEMENTS:Movement of the wrist rotate an oscillating weight which powers the tiny rotor and converts the body’s motion into a magnetic charge.

Sample Watch Identification Categories

1. Identify Brand 3. Identify Brand Style Name

2. Identify Type

6. Identify Dial Shape

5. Identify Band Type

4. Estimate Retail Value

(ex. Movado, RolexTag Heuer, Citizen

Cartier, etc.)

(ex. Men’s, Women’s, Sport, Dress, etc.) (ex. Formula 1, Eco-

drive, etc.)

(Establish retail cost of watch)

(ex. Metal, Leather, Rubber, Velcro, etc.)

(ex. Round, Square, Oval, Rectangle, etc.)

Watches

Higher-priced watches often have serial numbers that allow the watch manufacturer or distributor to identify the retailer to whom the watch was originally supplied.

Fence Operations

Where Our Stolen Items End Up?

Independent Jewelers

PawnshopsSecond Hand Stores

Online Auctions

NewspaperAdsOrganized

Crime (gangs, mob)

Sold/Tradedfor Drugs

Pay Gambling

Debts

Sold on Street

Flea Markets

Personal Use

Use FedEx/UPS to send out

of area

Diamond Districts

(NYC, Phila, Miami)

Federal Bureau of Investigationwww.fbi.gov/hq/cid/jag/jagpage.htmThe Jeweler’s Security Alliancewww.jewelerssecurity.orgInternational Association of Property Crime Investigatorshttp://www.iapci.orgJewelers Mutual Insurance Companywww.jewelersmutual.com

Jewellers Vigilance Canada (JVC)www.jewellerycrimecanada.ca/mainFrame.html

www.jewellerycrimecanada.ca/resource.html

Alberta Jewellery Industry Crime Watchwww.ajicw.ca

Online Resources

UNITED STATES WEB SITES

CANADIAN WEB SITES

Loss Prevention Contacts

Zale Corporation901 West Walnut Hill Lane M/S 5BO

Irving, Texas 75038(800) 999-3564

Jewellers Vigilance Canada 27 Queen Street, Unit 600

Toronto, Ontario, Canada M5C 2M6(800) 636-9536

Credits

The information in this presentation was compiled, developed and produced by:

Clifford BennettRegional Loss Prevention Manager & Certified Field Trainer

Loss Prevention, Mid-Atlantic Region Zale Corporation