Trading Gemmology for Professionals
Tutorial Day 01
Ceylon Academy of Gemmological Science
What is Trading Gemmology?
Trading Gemmology is the study of how gemstones move through their journey —
from being hidden deep in the earth to shining in a piece of jewellery.
It helps us understand:
Where gemstones come from
How they are mined and prepared
How traders buy and sell them
How treatments and cutting add value
How they finally reach the customer
The Gemstone Pipeline
A pipeline is simply the “path” a gemstone takes before it reaches the final buyer.
Stages of the Gemstone Pipeline:
Mining – Extraction from deposits (e.g., Ratnapura in Sri Lanka).
Rough Dealers – Sell raw stones in local markets (pola).
Cutting & Polishing – Shape and polish to bring out beauty.
Treatment – Heat or other processes to improve colour/clarity.
Jewellery Manufacturing – Setting gems into jewellery.
Trading & Retail – Gems sold to tourists, investors, and collectors.
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Sri Lanka’s Gem Wealth
Sri Lanka is called the “Gem Island” or “Rathnadeepa” because it has been
famous for producing gemstones for over 2,000 years. The country’s unique geology
creates perfect conditions for sapphires, rubies, spinels, and many other gems.
Map of Major Gem Fields
Some of the best-known gem mining areas are:
Ratnapura – “City of Gems,” world-
famous for blue sapphires.
Elahera – Known for fine-quality
sapphires and cat’s-eye chrysoberyl.
Balangoda – Produces sapphires,
garnets, and zircons.
Rakwana – Rich in sapphires and
other corundum varieties.
These regions lie mostly within the Sri
Lankan Highland Complex, one of the richest gem-bearing terrains in the world.
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Rock Types Producing Gems
The gemstones in Sri Lanka are found in ancient Precambrian rocks (over 500
million years old).
The main host rocks are:
Gneiss – High-grade metamorphic rock, hosts many gems.
Marble – Associated with corundum (sapphire & ruby) and spinel.
Pegmatite – Contains rare gems such as tourmaline and topaz.
Gemstone Pipeline – Step by Step
Every gemstone passes through several stages before reaching the final customer. In
Sri Lanka, each step has its own people, places, and practices.
1. Mining – The Source
Gems are dug out from alluvial deposits in riverbeds or pits.
Examples: Ratnapura, Elahera, Rakwana.
Workers: Miners and village-level diggers.
2. Dealers – First Traders
Rough stones are sold at local pola (gem markets).
Examples: Nivithigala pola, Eheliyagoda pola.
Workers: Village traders, rough dealers.
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3. Cutting & Polishing
Gems are shaped to enhance their beauty.
Examples: Cutters in Galle, Beruwala, Ratnapura.
Workers: Skilled lapidarists using modern or traditional equipment.
4. Treatment
Improves colour and clarity, especially for Geuda.
Examples: Heat treatment in Lakmini or Electric furnaces.
Workers: Gem treaters (specialized in heating).
2: Lakmini Furance
1: Electric Furnace
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5. Jewellery Manufacturing
Cut stones are set into rings, necklaces, and other jewellery.
Examples: Colombo & Kandy workshops.
Workers: Goldsmiths, jewellers.
6. Retail & Export
Gems and jewellery sold locally and internationally.
Examples: Shops in Galle Fort, Colombo; exports to Bangkok, New York,
Dubai.
Customers: Tourists, investors, collectors.
Gemstone Deposits
Gemstones in Sri Lanka are found in two main types of deposits:
Primary Deposits
Gems are found in their original host rock.
Hard rock mining is required.
Example rocks: gneiss, marble, pegmatite.
Less common in Sri Lanka compared to secondary deposits.
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Secondary Deposits
Formed when gems are eroded from their original source and transported by natural
forces (water, gravity, weathering).
These are the most common deposits in Sri Lanka.
Types of Secondary Deposits:
1. Alluvial Deposits
Found in riverbeds and floodplains.
Water carries and concentrates gems.
Example: River mining in Ratnapura.
2. Colluvial Deposits
At the base of hills.
Gems move downhill with gravity and landslides.
3. Eluvial Deposits
Found close to the original rock.
Formed mainly by weathering (not much transport).
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Types of Stones in Trade
In gem trading, not all stones are natural. Traders must learn to identify four
categories:
Type What It Is Example Key Features
Natural Formed in nature Blue Sapphire, Unique inclusions,
without human Spinel, Ruby natural growth features.
interference.
Synthetic Man-made in labs, but Synthetic Same hardness &
same chemical Sapphire, properties as natural, but
composition as natural. Synthetic often cleaner.
Emerald
Simulant Different material that Cubic Zirconia Different
looks like a gem. (CZ), Glass chemistry/optics, usually
cheaper.
Imitation Fake stone designed to Dyed quartz Often low value, colour
copy a gem’s sold as ruby coatings or composites.
appearance.
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Gemstone Value Factors – The Three Pillars
The value of a gemstone depends on three key pillars:
1. Rarity
Rare gems are harder to find → more valuable.
Example: Paraiba tourmaline is rare and highly priced.
Contrast: Quartz is common and cheaper.
“The rarer the gem, the higher the demand and value.”
2. Durability
A gem must survive everyday wear. Durability has three parts:
Hardness – Resistance to scratching (Diamond = 10, Quartz = 7 on
Mohs scale).
Toughness – Resistance to breaking (Jade = excellent, Diamond =
weak cleavage).
Stability – Resistance to light, heat, chemicals (Sapphire = stable,
Kunzite = fades in sunlight).
3. Beauty
The visual appeal that makes a gem desirable.
Colour – Hue, tone, saturation (most important).
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Brilliance – Sparkle from light return.
Fire – Rainbow flashes of colour.
Scintillation – Sparkle when moved.
Transparency & Cut – Determines how light interacts with the gem.
Rarity + Durability + Beauty = Gem Value
Geuda Identification & Heat Treatment
What is Geuda?
Geuda is a low-quality type of corundum (Al₂O₃) found in Sri Lanka.
Appears milky, whitish, or pale blue in its raw form.
Looks dull because of tiny rutile (TiO₂) inclusions.
Normally not gem-quality, but after heating → transforms into beautiful blue
sapphire
How to Identify Geuda?
Before Heating:
Cloudy, milky, or silky appearance.
May show pale blue or whitish tones.
After Heating:
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Blue colour becomes vivid due to Fe + Ti interaction.
Clarity improves (stone looks transparent).
Can resemble high-quality sapphire.
Heat Treatment Methods
Lakmini Furnace (Traditional)
Used in Ratnapura & gem villages.
Shorter duration (3–7 days).
Oxi-reducing method:
o Reduces oxygen → enhances blue colour.
Oxidizing method:
o Adds oxygen → enhances yellow/red tones.
Electric Furnace (Modern)
More precise, used for higher-value stones.
Long duration: 7–180 days.
Temperature: Room temp → up to 1800°C.
Gases (N, H, Ar) and vacuum chambers may be used.
Produces more controlled, stable results.
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Synthetic Gemstones – How They Are Made
Synthetic gemstones are man-made in laboratories, but they have the same
chemical composition as natural stones. For
example, synthetic sapphire is still Al₂O₃
(corundum), just grown artificially.
Main Methods of Making Synthetic Gems
1. Verneuil Method (Flame Fusion)
Powder is melted in a flame and forms a
crystal.
Fast and cheap.
Often shows curved growth lines.
Common for Synthetic Sapphire & Ruby.
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2. Flux Growth Method
Uses a molten solution (“flux”) to slowly grow crystals.
Takes months but produces clearer, better-quality stones.
More expensive
3. Hydrothermal Method
Crystals are grown in water solution under high pressure (like in nature).
Produces very natural-looking gems.
Most expensive and slowest method.
Gem Cutting Types
Cutting transforms rough stones into beautiful gems. The type of cut affects how
light reflects and how much value the stone gains.
1. Faceted Cuts (for transparent gems)
Facets = small flat surfaces cut on the stone to reflect light.
Brilliant Cut – Round shape, many triangular facets → lots of sparkle.
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Step Cut (Emerald Cut) – Rectangular, long parallel facets → shows
clarity.
Rose Cut – Domed top with triangular facets, flat base → vintage style.
Figure 3: Step Cut
Figure 4: Brilliant Cuts
2. Cabochon Cut (for translucent/opaque gems)
Smooth, rounded surface, no facets.
Best for gems with special effects (e.g.,
star sapphires, moonstone, opal, jade).
Figure 5: Cabochon Cut
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3. Mixed Cuts
Combination of brilliant + step cuts.
Keeps more weight while adding brilliance.
Common in sapphires & rubies.
Figure 6: Mixed Cut
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Figure 7: Overview of faceted, cabochon and mixed cut
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Inclusions in Gemstones
Inclusions are features found inside a gemstone.
They may be minerals, liquids, or fractures trapped during the gem’s history.
They are important because they help us:
Identify if a gem is natural or synthetic.
Understand if a gem has been treated.
Judge the quality and value of a gem.
Types of Inclusions
1. Progenetic Inclusions (Older than the gem)
Existed before the host crystal started forming.
Example: Zircon crystals inside sapphire, spinel inside ruby.
Show the gem’s geological history.
Figure 8: Zircon crystals inside sapphire
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2. Syngenetic Inclusions (Same time as the gem)
Formed together with the host gem.
Example: Rutile silk (fine needles) in sapphire, liquid cavities in emerald.
Often prove that the gem is natural.
Figure 9: Pyrite Crystals inside Emerald
3. Epigenetic Inclusions (Formed after the gem)
Entered the gem after it fully crystallized.
Example: Fractures filled with minerals, iron stains in Topaz, healed cracks
in Emerald.
May indicate later treatments like fracture filling.
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Figure 10: Flash effect observed in fracture-filled diamond
Closing Note:
Trading Gemmology starts with observation and curiosity. The more you train your
eye with tools and knowledge, the better you will become at identifying, valuing,
and trading gemstones.
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