My father is a very successful man. I’ve learned a great deal from him over the years, and even spent five years working with him. I learned a lot of things from him about running a business, dealing with people, and just about making my own way in life. He has a dry, provocative sense of humor that I think I comes to me both from my DNA and my environment. A statement that is meant to provoke someone was often seen as humor in my household, and to this day some of the comedy that I enjoy most is sarcastic, good-natured ribbing.
Once a very good friend of mine, while the target of such provocation, said “Dave, when you were a child you got beat up a lot.” I paused first, and then I laughed.
“Every day” I replied. Indeed, every day. At the bus stop in the morning before any adult supervision was available I was a punching bag. Surely, these were provoked attacks. I was always tossing sarcastic comments about, and there is value in learning what can and what can not be said. It’s part of growing up. There is another valuable lesson in here though. I never stopped getting beaten up by the neighbor kids because I was never willing to relent. I was never willing to admit that I was afraid. The best way that I could show this was to toss another barb their way for every punch that came my way. It was a bit like Randall “Tex” Cobb’s fight with Larry Holmes. Larry, you can hit me direct in the face until your arms are tired and I’m not gonna give up and I’m not gonna stop coming at you. You can’t make me afraid.
The best way to stop from being punched is to show fear. That is what the attacker is really looking for in the first place- fear. Fear is control, and fear means that you have been subjugated. When Hank Paulson wanted 700 billion tax dollars, he made you afraid. When politicians want to be elected, they make you afraid. When people want something from you- especially your cooperation- they like to make you afraid.
The most valuable thing (and painful thing) that I learned from my father was that I should not be afraid. I don’t need to be afraid of people threatening me because I can take care of myself. I don’t need to be afraid of the future because I can prepare. And I don’t need to be afraid of a new path because every new path has ups and downs, and fear has no value in success. Many people argue this point, and tell me that fear has kept them safe. Try not being afraid, and see if the world really does collapse on you like people tell you it will.
Some people told me that I should be afraid of publishing an interview with Robert James of the International School of Gemology. He is, after all, a very controversial figure. I’ve been told that my business will be ruined, that I will lose respect in the industry, that customers will flee in droves. But I am not afraid. I learned that from my father.
Maybe if you are afraid of what Robert has to say, you needn’t be. And if Robert is afraid of what others have to say about him, I think likewise there is no need. If you want to fear something, let it be inertia. You will always do far more, and be far more, if you are only afraid of doing nothing. My dad has always told me to “do something, even if it’s wrong.” Don’t fear information or conversation or ideas. Don’t fear something just because another gem dealer or another gemology student or gemologist tells you to. Fear inertia. That, as well, I learned from my father.

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Today we have Robert James with us, the founder of the International School of Gemology and consumer advocate.
Dave: Welcome Robert and thank you for joining us in The Gem Vault here at Tiptopgem.com.
Robert: Thank you, Dave. It is a pleasure to be invited to come here and share with you all.
Dave: There is plenty of controversy surrounding ISG, and I would like to ask some general questions about that but first I want to know a little bit about you. What credentials do you hold, and what motivated you to get involved in gemology?
Robert: I hold the GIA Graduate Gemologist, I am a Fellow of the Gemmological Association of Great Britain, I was once active in the American Gem Society and held the AGS Certified Gemologist title, I hold a Property and Casualty Insurance Adjusters License with the Texas Department of Insurance, and am a certified instructor and Continuing Education Provider for the Texas Department of Insurance as well as other states both past and current. I got into gemology based on working for jewelry stores since 1971. I found the study interesting, and it is one of the few fields of study that allows you to work anywhere in the world. So I started working on my GG by distance education in 1977, and have been in school by one method or the other ever since.
Dave: I have noticed that ISG is a certified education provider for many state departments of insurance. Can you tell me why this is significant, and what it means for your graduates?
Robert: We were actually education providers for the insurance industry before we formally went into the gemology education business, even though I served as a Gem Tutorial Centre for the Gem-A. I worked for a number of years with USAA handling jewelry related claims. The significance of our status now is that we are the only gemology school that provides appraisal training from licensed insurance adjusters with experience in the jewelry claims field. We have several other insurance professionals who have helped us design the course programs, these include insurance litigation managers and designated underwriters. This allows us to provide a combination of gemology and appraisal training that is unlike anything else on the market.
Dave: What do you see as the biggest challenges for the colored stone industry over the next decade?
Robert: First…disclosure of treatments. The industry needs to realize one thing: consumers are not afraid of treatments….consumers are afraid of being lied to about treatments. Unless the colored gemstone industry starts enforcing some king of disclosure rule, we are going to continue to lose consumer confidence. Second….education. In this day and age of the internet, consumers are very often more highly educated about gemology than the dealers. Unless the colored gemstone industry starts actively improving the level of gemological education by the trade, consumers are going to lose confidence since they will know more about gemstones than the dealers.
Dave: There seems to be a great deal of resistance in the established trade to new mediums of communication, commerce, and education. Do you think that in time concepts like the internet classroom, virtual trading platforms, and the general internet community will be better integrated with bricks-and-mortar stores? Or will these new mediums entirely dispose of our traditional means in the gemstone and jewelry trade?
Robert: The internet has already greatly impacted the diamond business. Diamonds can easily be sold on the internet with BlueNile.com®and others as examples. But colored stones are a different issue. Colored gemstones require romance, knowledge, and hands-on experience to be appreciated. With the significant decline in diamond profits, and the increasing potential profits of colored gemstones, the smart jeweler will understand the need to have a strong internet presence but continue to work from a traditional bricks-and-mortar location. All aspects of our industry are impacted by the internet and e-commerce, but the traditional home town, independent retail jeweler will always be at the forefront of the industry if they just stay up with the technology and education.
Dave: In the diamond business we have seen Bluenile.com take a big bite out of industry market share. Do you foresee similar forces in store for the colored stone industry, or are you among those that believe the commodotization of diamonds with a universal grading system is not possible with color?
Robert: The damage to the diamond industry was done by two things: the Rap Sheet, and the internet. When Martin Rapaport made supposed wholesale pricing available to everyone, he ruined the profit margins for the industry. And when the internet allowed diamond databases to be imbedded into anyone’s website, that allowed anyone with a website to become a diamond dealer. That caused the long standing structure of the industry to crash, and with it diamond margins. This will not happen to the colored gemstone industry because of the lack of unity in the markets. Diamonds are one category of gemstone. Colored gemstones encompass hundreds. So the requirements to establish a standardized market pricing list, and the ability to mass market colored gemstones is simply not there. And I hope it never is. If that were to happen you would see the same thing happen to colored gemstone markets and margins that you have seen happen to diamonds.
Dave: Here in Chanthaburi I see a lot of stones that are of interest to my customers who are collectors and gemologists, but that are not available in jewelry stores. The television gemstone and jewelry channels seem to have capitalized on this niche. Do you think that there is more room in the market for bricks-and-mortar retailers who carry beautiful, lesser-known stones like Mali and Malaia garnet, sphene, tsavorite, or zircon?
Robert: Absolutely. The jewelry channels are absolutely brilliant for having identified this category of colored gemstone market and making it a success. There are just so many wonderful colored gemstones available that are being missed by retail jewelers simply due to lack of knowledge of the stone, and a lack of training in how to sell them. This is one of the largest areas of untapped potential business available to bricks-and-mortar jewelers today.
Dave: The financial crisis in Asia in 1997 had some interesting repercussions in the South Korean colored stone market. While people who were strapped for cash quickly converted diamonds and gold, they found that when they attempted to convert their colored-stone assets there were few takers. Many treatments were exposed at that time, and as a result the market for laboratories and gemological education exploded. Today the Korean market is a very different place as customers become more savvy. Is it possible that a global economic downturn could have similar consequences for the world gemstone market?
Robert: Yes. And it is due to some of the claims of the sellers about “investment” buying of jewelry and gemstones. That is a good sales technique until things turn bad and people need to liquidate those items. Then they realize that the concept of gemstone investments is a very difficult issue when times go bad. While colored gemstones can be good investments if purchased correctly and held until the proper time, buying them as a hedge against hard times is never a good idea, as the South Koreans found out.
Dave: Some folks who are new to the trade, like myself, find a fairly widespread practice of half-truths and some outright deceptions in colored stones. Do you think the cost of ISG’s gemological coursework means that more people will have the background and the “eye” to spot such practices, and this will lead to changes in the industry? Is this what you had in mind when you founded the school?
Robert: Exactly. We purposefully keep our tuition rate low so more people can afford the education. And the reason we are the only school outside of the AIGS to offer a course in the Identification of Synthetic Gemstones is because we believe that a proper gemological education for dealers and retailers must include that information. The more people understand treatments and synthetics and are able to identify them, the less deception will be perpetrated on the market. And more knowledge and awareness of the treatments will eventually bring about a greater understanding as to how to sell them openly and with proper disclosure.
Dave: I’m troubled by the lack of disclosure of flux-healed ruby. In the trade we have known about this treatment for a very long time, yet the ruby market suffers from confusion between flux-healed and glass-filled stones. Consumers buy stones that are flux-healed and are told they are only heated, and they buy glass-filled stones and are told the same. The glass-filled stones are notorious for durability issues yet retailers and wholesalers still don’t want to talk about it. Isn’t the trade shooting itself in the foot by failing to educate customers about the difference?
Robert: Absolutely. The colored gemstone trade has making a HUGE mistake by underestimating consumer awareness and acceptance of all sorts of treatments. Consumers are not afraid of treatments, jewelers are. If the ruby treatments were openly disclosed and presented to consumers the market for these stones would increase exponentially. It is the secrecy and hiding of facts that creates the cloud of mistrust for everyone in the industry.
Dave: The Tom Lantos Block JADE Act of 2008 represents a major challenge for retailers who want to deal with ruby from African sources as a replacement for the relatively plentiful Burmese stones. Do you think the documentation requirements are enforceable, or will this just mean that we continue to buy Burmese ruby with fraudulent documentation?
Robert: This JADE Act is actually sort of a joke. I have graduates on the Burmese border who buy from “smugglers” on a daily basis. Except that there they are legitimate dealers and not smugglers. And those stones flow through India and other locations freely. Just as conflict diamonds did for years (and most likely continue to this day). There is no way to enforce this act. It makes good politics. And allows the politicians and the jewelry folks sitting in New York to congratulate each other for the great job they are doing being politically correct. But the folks on the ground with these issues are doing business as usual. If it was possible to control the movement of products by legislation, the Colombian drug trade would not exist.
Dave: I have interacted with your students a great deal. Some are my friends, customers, and business associates. I am sometimes surprised that they are so quick to criticize established schools like GIA and seem to believe that your program is superior in the actual content of gemological curriculum. Would you say that this comes from the top, or are there other forces at work here?
Robert: I think this is based on many of our students and graduates who started with the GIA and then study with us, and realized that our program is indeed superior at a fraction of the cost. And no doubt that it is. We have combined the best of both the GG and FGA programs to create a unique education opportunity that is the top in the field. And at a price that far more people can afford. But as far as anyone criticizing the GIA, that does not come from my desk. I am a GIA Alumni and continue to support the school in a number of ways.
Dave: When you look over the very long history of GIA and the sheer volume and quality of research that they have published, is it fair for you to expect that ISG should have similar standing in the industry?
Robert: I don’t think I have ever said that I expect this. If we have a similar standing in the industry it is because of the respect that is given to the quality of our graduates. A gemology school is not made by the volume of their research, but by the quality of their graduates. And there is no doubt that our graduates are better prepared for the market than the GIA graduates. With our requirement of annual recertification, additional courses provided, and continued support for our graduates after they complete their program, the GIA offers none of this. So we have actually put something together here that is well beyond the scope of the GIA program.
Dave: There are some in the trade who would like you to open a laboratory and who believe that a certificate from ISG would be truly impartial. There are some who scoff at such a notion. If you were to draw a line between those two groups of people, what would you see on both sides of the line? Can you make some generalizations that might help us understand who is “for” ISG and who is “against” the school?
Robert: I do not foresee the ISG establishing a trade laboratory in the foreseeable future. We are a training facility and that is our purpose. As far as anyone “for” or “against” us, I honestly don’t concern myself with that. Again, the quality of our graduates speak for the quality of the school. I really don’t think in terms of people being “for” or “against” us.
Dave: I’ve repeatedly seen you criticized for failing to work within the system, and for failing to complete your research before you release your findings. Knowing what you know right now, would you have done anything differently in light of these criticisms?
Robert: On the andesine issue? No. That was too volatile of a situation that the establishment had ignored for far too long. It needed immediate assistance. On the releasing of our findings, the industry has totally misunderstood who we are and what we do. I believe that our students need to understand the research process. They need to see how it’s done, how mistakes are made and corrected, how good results are achieved. In other words, total transparency in the system so that students and graduates can learn from and about the process. The industry believes that you hide all of this because, God forbid, someone should actually make an error. Well, errors are made all the time. And people need to be able to see the processes, understand what goes into research, and how final determinations are made. That is why I don’t mind sharing with our people as we go. The more they get to experience the research process, the better off everyone is in the industry.
Dave: Why do you think the public has the misconception that profit margins are exorbitantly high in the jewelry industry, and what can we do in the trade to combat this?
Robert: You will need to ask Martin Rapaport about that one. He is the one that started that snow ball rolling. I have no answer because when the Rap Sheet started talking about inside wholesale prices and giving that information to the public, it created that problem and I do not think there is any way to heal that situation up.
Dave: There seems to be a lot of conflict between people who are long-established members of the trade or the science of gemology and people who are new. Are those of us who are new to gemology acting disrespectfully, or are we failing to give credit where credit is due? Is there a good way to bridge this gap so that we can work together with people whose experience would be a great asset for us?
Robert: The new folks NEED to get outside of the box and bring in new ideas, new concepts, and new ways of thinking. That the andesine issue lasted for 6 years was due to a total failure of the establishment to do the needful thing to make sure issues were handled correctly. We need the new people in the industry to question the establishment, dare to make changes, and don’t take no for an answer when you work on new concepts.
Dave: What advice would you give someone who just completed their RG, or GG, or other gemological credentials today? How would you steer them in the right direction, and what would you tell them about growing their business, their reputation, and their understanding of the science?
Robert: Wow. This one would take a book. My main recommendation is to do something you love doing. This business is a difficult one to make a living in right now, too many people needing to buy petrol and food, making gemstones just that much more difficult to sell. So you need to do something you enjoy so you will be able to stay with it during the bad as well as good times. And above all else, remember that your gemological education never stops. Never! There are always new developments, new treatments, new gemstones on the market, always something new to learn. You must always keep your education going in order to stay ahead of your competition.
Dave: I was really surprised when my friendship with an Iranian stone broker here in Chanthaburi created so much of a stir online. Can you offer advice to people in the trade about dealing with countries who are under embargo, whether it be Iran, Burma, or any other country that is subject to economic sanctions?
Robert: If you live in the US , there is a list of countries that you cannot do business with. Check with the US Treasury Department for that list. And know that they are serious. Been there, done that.
Dave: Thanks very much for spending this time with me Robert. I wish you luck with the school and with all of your pursuits.
Robert: It has been my pleasure Dave. I wish you all the very best with your endeavors and want you to know that if we can ever be of assistance the ISG is always at your service.