Nothing conjures up Valentine’s Day like a little velvet box.
It might seem sappy, but jewelry is still one of the most popular gifts on Feb. 14. Flowers are nice, chocolate is lovely, but as every boyfriend and husband knows, a sparkling bauble steals the show.
But with hundreds or many thousands of dollars on the table, it’s also a big-deal purchase that could make any guy nervous.
RedEye turned an eye on Chicago’s own Jewelers Row and asked experts what the gem business is all about and how to make a good buy.
THE JEWELRY DISTRICT
Savvy jewelry shoppers know some of the best deals are in Chicago’s downtown Jewelers Row. Consumers won’t find the retail service and luxe surroundings of a Cartier or Tiffany’s, but competitive prices, knowledgeable vendors and custom design make the trip worthwhile.
The district, stretching along Wabash Avenue between Washington and Monroe Streets, houses an interdependent community of jewelry manufacturers and traders.
With everyone side-by-side, the fight for customers is fierce. Also, business efficiencies keep costs low–no need to spend for Michigan Avenue rent or send a ring across town to be polished. The result? Well-priced merchandise with little markup.
“For a stone of the same weight, shape, color, cut and clarity–and with independent reports verifying that–it might be a difference in price of $100 here or a $100 there” says Ellie Thompson, a local industry expert and jewelry designer.
“After the 4 C’s are determined, the rest of the price is about markup, service and overhead. There’s considerably lower overhead down here.”
Especially compared to the suburbs, says Kevin Flaherty of Windy City Diamonds at 1 S. Wabash Ave.
“Overall, it gets more expensive as you move farther from the city. Down here, it might be a 20 to 30 percent markup versus 50 percent and above in the suburban malls.”
In Jewelers Row, specialized entrepreneurs work together, handling each manufacturing stage, steps from one another. The district’s Art Deco- and Chicago School-style buildings are filled with designers, casters, polishers, gemstone setters and purveyors, as well as retail businesses open to the public.
For example, Jewelers Center at the Mallers Building, 5 S. Wabash Ave., houses 195 different jewelry businesses.
“There are checks and balances within the building itself,” says Jay Richman of Spectrum Properties, which manages the Jewelers Center.
“They start with the raw material and end with the finished product, without ever having to leave the building, so customers get a better product and a better price.”
More than engagement rings
If you’re expecting that diamond solitaire Saturday, don’t hold your breath.
While diamond jewelry remains a fashionable gift on Valentine’s Day, engagement rings aren’t the biggest seller, according to local industry experts.
“A lot of guys think it’s too romantic or too common,” says Shari Johnson of Windy City Diamonds.
More often, men will purchase a pendant or earrings, Johnson says, “and that’s from the nice guys.”
Sales are brisk for Chicago jewelry designer Tammy Kohl, but not necessarily just engagement rings.
Her patented Treasure Ring hinges open to reveal an inscription or hidden gems.
It’s a way to be sentimental without popping the question, she says.
“Jewelry is a splurge, but it reinforces a solid connection with people,” she says. “Romance is alive and well in the world.”
Feel free to give yourself a gift
Chicago women who want jewelry aren’t waiting for schmoopy gestures from boyfriends and husbands.
The so-called “right-hand ring” is catching on locally, following a heavy national ad campaign from diamond producer DeBeers, which promotes them as symbols of independence and personal success.
“More women are saying, ‘I’m going to buy it for myself. Here’s my credit card. I want a pretty piece of jewelry,’ ” says designer Tammy Kohl, owner of Gallery Takohl, 110 N. Pearson St.
The right-hand ring is not a new concept, says local industry expert and jewelry designer Ellie Thompson, but through all the promotion, “It becomes part of the collective consciousness.”
Also, it doesn’t hurt that the roster of stars wearing right-hand rings keeps growing. Look for rocks on the hands of Sarah Jessica Parker, Halle Berry and Julia Roberts, among others.
What you should look for
Diamond buyers should at the very least know the four basic characteristics of stones. The higher the ratings in each category, the more valuable the stone.
A look at the 4 C’s:
Carat weight: The standard measurement for diamonds is a metric carat, or 200 milligrams–roughly the weight of a small paper clip.
Clarity: The diamond’s clarity is based on internal flaws such as carbon spots, and whether it has any surface blemishes. The highest rating is F1, flawless.
Color: Diamonds are graded on a scale where no color, a D grade, is optimal. As you move down the alphabet, the more color a stone has.
Natural colors, such as pink or blue, are exceptions to the rule.
Cut: This can refer to either the shape of the stone–round, emerald or marquise–or its polish and facet proportions. There is no grading scale for cut.
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Going beyond the 4 C’s
Buying a diamond can leave some shoppers spellbound.
“Do your research and get some background,” said Renee Newman, a former gemologist who has authored a series of jewelry buying guides.
Here are a few more things consumers should know:
Pricing. Don’t get swayed by sales. If the price seems too good to be true, it probably is. Retailers base their pricing on what they paid for the stone and then add on expenses and margins to the final cost.
Diamonds as an investment. Shoppers should think twice if they think their diamond is going to increase in value over the years unless they are among the wealthy who can bankroll a nearly flawless, substantial rock.
“If you do sell it, you’ll likely sell it for something below wholesale,” said Bill Boyajian, president of the Gemological Institute of America.
Getting what you paid for. Diamond-buying advisers recommend that consumers buy stones certified by an independent grading agency such as the Gemological Institute of America or the International Gemological Institute. However, unscrupulous sellers might switch a certification to go with a lessor quality stone.
Newman suggests taking the piece to an independent appraiser for additional verification.
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By the numbers
Valentine’s Day is the second-largest day for diamond sales. The most sales occur between Dec. 1 and 25.
Each year, roughly 50 million carats of diamonds are mined worldwide.
Fewer than 20 percent of mined diamonds are gem-quality.
Each diamond will on average lose 50 percent of its weight during cutting and polishing.
One polished diamond out of 1,000 weighs more than a carat.
Sources: Gemological Institute of America, Diamond.com, Walsh Brothers, Diamondex Resources Ltd.
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Edited by Lara Weber (lweber@tribune.com) and Drew Sottardi (dsottardi@tribune.com)
