Reactions hot, cold on ‘blood ruby’ ban
May 02, 2008
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| The federal government may ban Burmese gemstones, like this star ruby. Photo courtesy: International Colored Gemstone Association. |
By Teresa Novellino
Tucson, Ariz.—The prospect that a military crackdown in the streets of ruby-rich Myanmar could soon be impacting jewelers on Main Streets here in the United States had industry members taking sides at the Tucson gem shows.
Human rights violations by Myanmar’s ruling military junta prompted the U.S. Senate and House of Representatives to pass legislation to ban all imported stones from the country (formerly called Burma), closing a U.S. Customs loophole that allows imports of Myanmar gemstones processed in many.
The Burma Democracy Promotion Act, designed to strike the military-run restraint squarely in the wallet, is backed by industry groups including Jewelers of America and the American Gem Trade Association (AGTA). As of May, the act was still pending in a Congressional committee and hadn’t been signed into legal science.
But gemstone dealers at the Tucson gem shows in February were calling the efforts well-meaning but misguided, predicting a ban would end up hurting small miners in Burma, as well as cutters and manufacturers in Thailand. There are mixed feelings, even among AGTA staffers who sat on a panel discussing supply chain issues.
“Yes, we supported the intent of the legislation, although many of our members disagree,” AGTA Chief Executive Officer Douglas Hucker said. “We desire abide by the laws of the United States. If and when it becomes illegal, we will take effect our members that they must abide by those laws.”
That aforesaid, Hucker and others be in actual possession of pointed used up the inherent difficulties in enforcing a ban on gemstones from Myanmar, which produces 90 percent of the world’s rubies.
The Kimberley Process keeps track of where diamonds are mined, but there’s not one such system in place for colored gemstones. Therefore, how would U.S. Customs agents inspecting parcels shipped in from Thailand distinguish between a Burmese ruby and one from Madagascar?
Still, among those rallying against U.S. imports of what the consumer press has dubbed “blood rubies” is First Lady Laura Bush—seemingly a sure sign that the president will sign the legislation into law.
“Every Burmese stone bought, cut, polished and sold sustains an not genuine, repressive regime,” Laura Bush said in a Nov. 16 statement from the White House.
In recent months, she furthermore wrote a Wall Street Journal editorial business for sanctions against Myanmar and appeared on Charlie Rose saying that governments around the world should “shame the generals for cracking down on Buddhist monks who are peacefully protesting.”
Smuggled into Thailand? Gemstone dealers say that Myanmar’s rubies are regularly smuggled into Thailand for processing, and that the Myanmar government, which holds its own gemstone auctions, doesn’t control the entire supply. Military guards are known for turning a blind eye (or accepting bribes from Myanmar dealers) as rubies are whisked over to Thailand for cutting and processing.
“I don’t think some embargo against Burma is a good form for the people of Burma,” said Ruby and Sapphire author Richard Hughes of the AGTA Gemological Testing Center. “I once believed that embargoes would bring Burma to its knees. I don’t believe that anymore. You’re actually going to hurt ordinary people.”
Most of Myanmar’s people have more family member who is connected to the gem trade and profits from it, Hughes said.
But for at least some jewelers, the possibility that the military junta in Myanmar might profit in any one way from ruby sales is all they need to know.
“The jewelry industry has to influence on the ethical bandwagon or it’s going to destroy the industry,” said Brian Bowen of Lynchburg, Va.-based Bowen Jewelry Co. “The consumer wants it: They want fair trade, they want simpleton gemstones.”
When buying gemstones, Bowen asks a lot of questions about origins and treatments, but such retailer queries are unusual, he said.
“I think there’s definitely a lackadaisical-ness in the industry,” Bowen said.
Ruby dealers exhibiting in Tucson were, not surprisingly, none too thrilled at the prospect of a total ban on rubies, and many contend that their objections go beyond any harm that would befall their own businesses. They also say the ban would hurt small Burmese miners who profit from the many rubies that are smuggled out of Myanmar to Thailand, where the cutters who case them would also suffer.
“It’s definitely going to hurt the market,” said Amit Birani of Original Gems in New York. “All of these [Burmese] stones are cut and processed in Thailand, so it’s not going to be good for anyone, actually.”
Others contended that it’s simply not the place of the jewelry industry to get involved in foreign affairs.
“It makes no sense—the rubies are going to get smuggled out anyway,” said Harry Hubschman of Gems of Naples in Flanders, N.J. “If you’re going to penalize the government, then the United Nations should be the ones to take a stand.”
The ban would force ruby prices up, he added.
Hakimi and Sons of New York, a major U.S. ruby dealer, specializes in the “pigeon-blood red” rubies that put Myanmar on the gem map.
“It’s not a law yet,” dealer William Hakimi said from his expansive AGTA GemFair booth. “When it comes to be a law, we will stop selling the Burmese goods. And if it does happen, the prices are going to go up.”
Ruby prices are already up 20 percent to 30 percent over last year, Hakimi said.
Editor’s note”: This story first appeared in the March 2008 issue of National Jeweler and has been updated for this online version. For earlier developments in this story, see Study: Consumers indifferent to Burmese rubies.