1517GEM STONES
By SYDNEY H. BALL



SUMMARY OUTLINE
 Page  Page
Jewelry industry in 1941 1517 Diamond—Continued.
Fashions in jewejs 1518  Imports 1524
Domestic production 1518  Cutting 1524
Imports 1521  World production 1525
Government regulations 1522  Industrial diamonds 1526
Effect of war on sources of gems 1522 Ruby, sapphire, and emerald 1527
Diamond 1523 Lesser gems 1527
 Share dealings 1523 Bibliography 1528
 Market 1523




JEWELRY INDUSTRY IN 1941

 Retail sales by jewelry stores in the United States totaled about $526,000,000
in 1941, a 30-percent increase over 1940 (when sales totaled about $405,000,000)
and within 2 percent of those in 1929. An additional 18 to 24 percent was
sold by department stores.
 Arkansas, Connecticut, and Indiana showed notable advances over 1940 in
retail sales. Again, as in 1940, gains were due mainly to larger turn-over
of relatively inexpensive items, and sales of high-priced articles were the
exception. This can be explained, in New York at least, by the colorless
stock market.
 The jewelry trade had two "Christmases"—the first late in September,
when taxwise buyers bought heavily to avoid the 10-percent excise tax, and
the real Christmas. During both periods the buying rate was higher than at
any corresponding time since 1929. Some expensive articles were sold during
both buying seasons, and certain of these, strangely enough, were purchased
by European refugees. In 1941 the gain in sales may have been in part a hedge
against inflation, that is, investment buying; but furthermore, compared
with 1940 the Nation's income had risen from about $72,000,000,000 to about
$92,000,000,000. Sales were also increased by an all-time record number of
marriages (1,565,000), over 16 percent above those in 1940, which had been
the banner year.
 From year to year in the larger cities, a few of the better department stores
are cutting into sales of retail jewelers, and it maybe added that, on the
average, they are handling stock of finer grade year after year.
 Wholesale jewelry sales in 1941 were somewhat greater even than those of
the retailers, and stocks in retail jewelry shops increased 14 percent. Manufacturers'
personnel was employed full time. During the year, exports to South America,
which normally obtains its jewelry supplies from Germany, were large.
 The national income of Canada is also rising ($5,180,000,000 m 1940—$6,200,000,000
in 1941), and retail jewelry sales in 1941 topped those of 1940. Canadian
prices have as their ceiling those of the basic