1 00:00:00,000 --> 00:00:11,360 Welcome to the Gilt Trips podcast. I'm your host, Kendra Lockhart. As a goldsmith and 2 00:00:11,360 --> 00:00:17,560 gemologist, I'll be speaking 24 carat on all things jewelry, metals, and gems. Join 3 00:00:17,560 --> 00:00:24,080 me plus a few friends to demystify both materials and designs as your private jeweler. Let's 4 00:00:24,080 --> 00:00:35,160 tune in on these topics and get golden. There are many motivations to pretend versus be 5 00:00:35,160 --> 00:00:43,440 genuine. It saves the resources of money, handles scarcity or rarity, and an effort 6 00:00:43,440 --> 00:00:50,280 to attain or achieve elite markers of status or accomplishment. In the world of gold, forgery 7 00:00:50,280 --> 00:00:57,800 bars are becoming a crisis. In recent years, bars worth at least $50 million, stamped with 8 00:00:57,800 --> 00:01:04,080 Swiss refinery logos, but not actually produced by those facilities, have been identified by 9 00:01:04,080 --> 00:01:09,640 all four of Switzerland's leading gold refiners, as well as found in the vaults of JPMorgan 10 00:01:09,640 --> 00:01:17,000 Chase. The lab-grown diamond industry was $24 billion in 2022. While this is a real 11 00:01:17,000 --> 00:01:23,880 creation presenting itself as man-made, the complication of being passed off as natural 12 00:01:23,880 --> 00:01:30,960 is causing problems. In January of this year, the International Gemological Institute, or 13 00:01:30,960 --> 00:01:38,040 IGI, reported that a six carat lab-grown pear shape had been submitted with a fake GIA 14 00:01:38,040 --> 00:01:45,240 inscription, identifying itself as a natural diamond. Counterfeit timepieces are a multi-billion 15 00:01:45,240 --> 00:01:51,320 dollar industry as well, with shaky estimates indicating between 30 and 50 million fake 16 00:01:51,320 --> 00:01:57,360 watches entering the market every year. Rolex alone makes only 1 million. Imagine that ratio 17 00:01:57,360 --> 00:02:04,720 of authentic to inauthentic units. Materials, watches, and jewelry brands are facing their 18 00:02:04,720 --> 00:02:11,720 own dark markets, so education and recognition is becoming more important, as mistakes mean 19 00:02:11,720 --> 00:02:19,000 high costs. Is the desire for luxury expressed or engineered? How does it affect the real 20 00:02:19,000 --> 00:02:20,200 deal? 21 00:02:20,200 --> 00:02:29,080 Chapter time stamps are in the show notes. 22 00:02:29,080 --> 00:02:35,200 Sabri Subhi, an investor on Shark Tank and the creator of King Kong Marketing, made a 23 00:02:35,200 --> 00:02:42,280 list of how we have made the luxury craving. One, unlike self-purchases, the prospective 24 00:02:42,280 --> 00:02:50,280 client is assigned an advisor, as well as a buyer's tier. Two, the maker deliberately 25 00:02:50,280 --> 00:02:59,400 creates low stock or underproduces. That stimulates the supply-demand access. Urgency and desirability 26 00:02:59,400 --> 00:03:08,560 enter the consumer journey. Deny or delay availability? Even in some Apple stores, you can't just 27 00:03:08,560 --> 00:03:14,600 walk in and get the latest device. The company is playing to the top, not the bottom, of 28 00:03:14,600 --> 00:03:16,600 its users. 29 00:03:16,600 --> 00:03:23,800 Four, premium aesthetics and materials are used so that it objectively indicates high 30 00:03:23,800 --> 00:03:24,800 standards. 31 00:03:24,800 --> 00:03:35,000 Five, status signaling. Now we enter the element of precision skills and impeccable craftsmanship. 32 00:03:35,000 --> 00:03:40,280 This is not your ordinary item by metals or by talents. 33 00:03:40,280 --> 00:03:49,280 Six, building a lifestyle brand. The item is the result and the reason is your identity, 34 00:03:49,280 --> 00:03:57,560 community, and associations. And last, number seven, the waitlist effect. Value is perceived 35 00:03:57,560 --> 00:04:04,240 through a process of acquisition versus instant gratification. We see this in sales when we 36 00:04:04,240 --> 00:04:11,520 talk about being clerked versus sold in any goods or services. Luxury wants you to rise 37 00:04:11,520 --> 00:04:17,920 up through the ranks and see yourself as better than. There is a dopamine to new levels of 38 00:04:17,920 --> 00:04:25,080 achievement and unspoken community and a bit of pain for the outcome of pleasure around 39 00:04:25,080 --> 00:04:27,240 wanting something. 40 00:04:27,240 --> 00:04:34,760 This is the opposite of utilitarian. Utilitarian is a toothbrush. You curate your choice. You 41 00:04:34,760 --> 00:04:41,960 select your idea of the best tool for the job. It is self talk. This one is the cheapest. 42 00:04:41,960 --> 00:04:50,960 I like this color. I use the toothpaste of these guys or other forms of reasoning. It 43 00:04:50,960 --> 00:04:58,080 would be pretty funny if we advertise toothbrushes as are you someone with a 1% smile? Is your 44 00:04:58,080 --> 00:05:03,840 orthodontic alignment better than your neighbors and coworkers? Here's a 24 karat toothbrush. 45 00:05:03,840 --> 00:05:13,720 Only 100 are made every year. 46 00:05:13,720 --> 00:05:19,320 One of my career roles in the jewelry and watch industry was being a specialist, which 47 00:05:19,320 --> 00:05:25,760 is fancy for calling me an authenticator. Even as far back as when I first became a goldsmith, 48 00:05:25,760 --> 00:05:32,340 being able to identify genuine and valuable materials from those that were obviously not 49 00:05:32,340 --> 00:05:40,080 or were designed to deceive was a compulsory part of the job. Misidentifying a metal or 50 00:05:40,080 --> 00:05:48,160 a gem, not recognizing aftermarket watch components or falling for the roosts of imposter goods 51 00:05:48,160 --> 00:05:57,120 could hurt the money, the elements, the reputation and more often than not, the relationship. 52 00:05:57,120 --> 00:06:03,960 Today I am going to break this topic down into three areas. Materials, timepieces and 53 00:06:03,960 --> 00:06:10,800 branded jewelry. I will discuss the methodology for identification and share my best or worst 54 00:06:10,800 --> 00:06:18,120 stories in each category. Let's start with metals and gems. Regarding metals, all that 55 00:06:18,120 --> 00:06:26,440 glitters is not gold. It matters to have a low grade skepticism over enthusiastic naivete 56 00:06:26,440 --> 00:06:33,840 when you are first given an item to repair or buy or consign. There is a hustle of spotting 57 00:06:33,840 --> 00:06:40,920 the least attentive employee or be aligning to a new hire and weaponizing their unfamiliarity 58 00:06:40,920 --> 00:06:47,040 or lack of commitment to details. Back in the day, we would write up intake slips for 59 00:06:47,040 --> 00:06:57,040 repairs as gold tone chain. Why? Because if the claim check said 14 carat necklace and 60 00:06:57,040 --> 00:07:02,680 later it was found out to be fake or fashion or costume jewelry, it's a little too late 61 00:07:02,680 --> 00:07:10,840 according to what you said they gave you. So regarding methodology on gold, silver and 62 00:07:10,840 --> 00:07:16,600 platinum items, you're looking for markings such as a stamping of the caratage or metal 63 00:07:16,600 --> 00:07:23,600 purity. Checking for signs of plating, where a metal is just a superficial coating or finish 64 00:07:23,600 --> 00:07:32,080 on top. Do the visual colors match your usual and customary golds or sterling items? Is 65 00:07:32,080 --> 00:07:39,820 the finish luster or patina on the platinum what you've encountered or is it different? 66 00:07:39,820 --> 00:07:46,600 It takes some instincts as much as knowledge and exposure. Gram for gram, do the weights 67 00:07:46,600 --> 00:07:54,920 match? Is the item in question seeming lighter or heavier than you imagined for this piece? 68 00:07:54,920 --> 00:07:59,040 Once you're done using your eyes as your main instrument, it's normal to move on to 69 00:07:59,040 --> 00:08:05,080 external tools. Are you using a jeweler's loop to magnify any markings you could not 70 00:08:05,080 --> 00:08:11,440 see with your normal unenhanced vision? Now is the chance to find miniscule wear and 71 00:08:11,440 --> 00:08:18,040 tear that could reveal gold or silver plating instead of a solid casting. Many buyers who 72 00:08:18,040 --> 00:08:27,080 pass through flea markets or state sales prefer the magnet test. Iron, steel and nickel alloys 73 00:08:27,080 --> 00:08:34,480 will stick to a magnet even if gold plated. Nobody wants to quote take your word for 74 00:08:34,480 --> 00:08:42,040 it on a solid gold item because often a fool and his money could soon be parted over word 75 00:08:42,040 --> 00:08:49,040 of mouth deals. If you aren't walking around someone's yard or outside of your place of 76 00:08:49,040 --> 00:08:55,720 business, you may see an expert use the acid kit. There are a range of tinctures of acid 77 00:08:55,720 --> 00:09:02,040 plus what is called a testing stone. The item in question is rubbed on the stone much like 78 00:09:02,040 --> 00:09:08,640 sweeping a file across your fingernail to leave a trace of the material. The purity ratio 79 00:09:08,640 --> 00:09:14,880 of the acid needs to match the purity ratio of the metal. While this is quick and somewhat 80 00:09:14,880 --> 00:09:24,360 easy, it is not 100% accurate. Are you gauging the match accurately? Did you clean the stone 81 00:09:24,360 --> 00:09:31,160 or is old residue skewing your results? If you have the money and wish to invest in an 82 00:09:31,160 --> 00:09:40,480 analyzer, the XRF which stands for X-ray fluorescence as a tester is a more accurate way to go. 83 00:09:40,480 --> 00:09:46,720 It instantly gives the alloy composition even through plating, comparing the items metals 84 00:09:46,720 --> 00:09:52,960 to what gold and sterling are made out of and to what proportions is incredibly useful. 85 00:09:52,960 --> 00:10:01,120 A sterling item is not supposed to be mostly copper. Lastly, inspect the craftsmanship. 86 00:10:01,120 --> 00:10:08,240 Work done in fine metals versus fashion metals usually has superior execution. Sawing through 87 00:10:08,240 --> 00:10:15,280 gold is like a scalpel through paper. Sawing through nickel or copper feels like a box 88 00:10:15,280 --> 00:10:21,600 cutter through cardboard. Those lines will not be as clean. If you want to know more 89 00:10:21,600 --> 00:10:29,480 on metals, refer to the episode on those or alternative alloys. When it comes to gems, 90 00:10:29,480 --> 00:10:37,960 it is a similar approach. What do your eyes see? The color is off? Is it too sparkly? 91 00:10:37,960 --> 00:10:42,800 In terms of brilliance, fire or scintillation with light? Or does it seem unusually dull 92 00:10:42,800 --> 00:10:50,560 for a jewel? Regarding the wear and tear, is any damage symptomatic of certain gem varieties 93 00:10:50,560 --> 00:10:56,680 or types of synthetics and stimulants? You can probably imagine the consequences of 94 00:10:56,680 --> 00:11:04,080 imitations. Unlike metal, a small jewel can seem to be worth tens of thousands of dollars. 95 00:11:04,080 --> 00:11:10,000 So here are the devices that assist beyond our visual senses. For gems, I have a jeweler's 96 00:11:10,000 --> 00:11:17,160 loop. That is a mandatory standard. Next, a gem duo tester. This is a thermal wand that 97 00:11:17,160 --> 00:11:22,480 touches the surface facets and shows a range of materials it could be. For me, this is 98 00:11:22,480 --> 00:11:30,120 semi-diagnostic, not completely conclusive. So, I could get a suggestion of a stone as 99 00:11:30,120 --> 00:11:37,680 garnet or tourmaline since they both respond similarly. It cannot show me genuine vs. synthetic 100 00:11:37,680 --> 00:11:46,160 ruby, but it can show me ruby vs. glass. There are devices that assist with a gem's response 101 00:11:46,160 --> 00:11:52,320 to light refraction, polarity of light and spectrum of absorbed light. Those three require 102 00:11:52,320 --> 00:11:59,920 gemological training and mastery, where the above tools do not. Lastly, a top grade microscope 103 00:11:59,920 --> 00:12:05,240 with several magnifications and different light color options as well as overhead or back 104 00:12:05,240 --> 00:12:11,960 lit is most useful. I'll go further into this in an episode later this month. So let 105 00:12:11,960 --> 00:12:17,040 me share some of my best and worst moments on knockoff metals and gems. One client when 106 00:12:17,040 --> 00:12:22,360 I was a private jeweler asked me to repair a beautiful lighter case that seemed to be 107 00:12:22,360 --> 00:12:28,080 sterling with turquoise cabochons bezled onto the front of it. It was stamped with three 108 00:12:28,080 --> 00:12:36,160 words on the bottom. Mexico, silver, alpaca. Fortunately, I asked around if that meant 109 00:12:36,160 --> 00:12:43,400 a certain region or was referring to an alloy. Alpaca silver is made of copper, nickel and 110 00:12:43,400 --> 00:12:48,960 zinc. My solder would not have worked. I had never put this alloy under my torch and I 111 00:12:48,960 --> 00:12:53,760 would have been liable for replacing anything destroyed. Plus, contaminating parts of my 112 00:12:53,760 --> 00:12:59,840 studio. So I passed. I've had a fake stamping where the weight of the item was accurate to 113 00:12:59,840 --> 00:13:07,320 the designer's product line and the plating was very heavy. The marking of 925 for sterling 114 00:13:07,320 --> 00:13:11,760 passed my visual test and the weight check since copper and silver aren't terribly 115 00:13:11,760 --> 00:13:17,280 far apart regarding specific gravity. But it got busted with the XRF test when it came 116 00:13:17,280 --> 00:13:22,880 back over 68% copper. I went on vacation as a bench jeweler and gave my mentor a ring 117 00:13:22,880 --> 00:13:30,000 to size. I forgot to tell him it was a dark blue cubic zirconium, a demi stone, holding 118 00:13:30,000 --> 00:13:35,040 a place until we could have the real sapphire for the project. It exploded under the torch 119 00:13:35,040 --> 00:13:41,480 and he was terrified he would be out $1000 out of pocket. When I got back I said I don't 120 00:13:41,480 --> 00:13:47,440 need your two bucks. It was a fake stone. Lastly, a client was attempting to consign 121 00:13:47,440 --> 00:13:53,880 a designer emerald ring and we flagged the jewel as a hydrothermal emerald or lab grown. 122 00:13:53,880 --> 00:13:59,960 Her response to a request for paperwork was met with indignation. If she had purchased 123 00:13:59,960 --> 00:14:06,320 it recently at Neimanorcus, they would need to refund a non genuine gem. We did not hear 124 00:14:06,320 --> 00:14:19,560 back from her regarding proceeding. Finding replica or lookalike watches is a nuanced 125 00:14:19,560 --> 00:14:25,640 game. There are many brands who each have their identifiers. Fortunately, my industry 126 00:14:25,640 --> 00:14:32,480 has three levels of a fraudulent timepiece. The cheap fake, the deep fake and the franken 127 00:14:32,480 --> 00:14:39,200 watch. It should be noticed that passing off a dummy watch can be accidental. A poor choice 128 00:14:39,200 --> 00:14:45,760 of purchase on a trip, a gift from the grey market where items are not authenticated, 129 00:14:45,760 --> 00:14:52,560 or a potential individual scam all the way into a full fledged organized ring such as 130 00:14:52,560 --> 00:14:59,320 those found around the world. The basic methodology is straightforward. Start by identifying the 131 00:14:59,320 --> 00:15:06,560 materials. If this isn't gold when the brand only works in that, just stop. Are you finding 132 00:15:06,560 --> 00:15:12,000 a glass crystal versus sapphire crystal when that is not part of the watch houses product 133 00:15:12,000 --> 00:15:17,680 line? That can be determined with the duo tester for the nature of the material if you're 134 00:15:17,680 --> 00:15:23,760 uncomfortable with a water test or feeling for relative temperatures. 135 00:15:23,760 --> 00:15:31,120 Next, inspecting craftsmanship. Again, you can execute more precisely in better alloys 136 00:15:31,120 --> 00:15:38,680 than garbage ones. Compare the make and model to its original standards. Be sure to check 137 00:15:38,680 --> 00:15:47,720 functionality. Are the components operational or cosmetic? Does the bezel work? Is the spelling 138 00:15:47,720 --> 00:15:57,000 of words correct? Does the font match the true design? Let's assume it is legitimate. 139 00:15:57,000 --> 00:16:03,120 In the industry, you would be expected to find a current manufacturer's sales retail pricing 140 00:16:03,120 --> 00:16:11,240 MSRP, calculate it with factors like how quickly people decide to buy or comparable realized 141 00:16:11,240 --> 00:16:18,680 sales of either the item or the brand in your area and be knowledgeable or aware of overall 142 00:16:18,680 --> 00:16:26,560 watch values, demand for styles, and the ability to grade the condition of the item. As for 143 00:16:26,560 --> 00:16:33,160 stories, many companies are asked to confiscate or destroy fake watches. This happens more 144 00:16:33,160 --> 00:16:40,840 often when you send your watch to the original watch house for servicing or repair or reconditioning. 145 00:16:40,840 --> 00:16:46,040 Watchmakers may kindly say it's not real and return it to you. A few of my stories include 146 00:16:46,040 --> 00:16:52,800 a son who brought in his Rolex Submariner because it stopped running. This was his college graduation 147 00:16:52,800 --> 00:17:00,600 present. Unfortunately, it was a Franken watch. The outside was real, but the inside was gutted 148 00:17:00,600 --> 00:17:07,920 and replaced with gray market movement according to our watchmaker. The client was kind about 149 00:17:07,920 --> 00:17:12,920 it, admitting his dad wanted it at a poker game. That is where the real hustle seemed to happen. 150 00:17:12,920 --> 00:17:22,080 As for a deep fake, a gorgeous 18 carat gold men's Cartier came through and priced out at over 151 00:17:22,080 --> 00:17:30,480 $11,000 at a secondary market potential. However, none of the screws were the right size and the 152 00:17:30,480 --> 00:17:36,920 threads were not stripped. There were strange glue lines around the crystal, so this was a subtle 153 00:17:36,920 --> 00:17:44,960 hiccup in what seemed authentic. Lastly, a couple Breitlings came in from a consumer who had never 154 00:17:44,960 --> 00:17:52,920 taken a trip to the tropical islands. He offered up two models for sale. Unfortunately, they weighed 155 00:17:52,920 --> 00:18:09,600 as aluminum and not steel. And the dial said, Breitling, not Breitling. This is a cheap fake. Now, 156 00:18:09,600 --> 00:18:16,440 we arrive at the place of the big three in branded jewelry, Tiffany, Cartier, and Van 157 00:18:16,440 --> 00:18:24,000 Cleef. Fortunately, each design house has a consistent way of making its pieces. When you're a 158 00:18:24,000 --> 00:18:30,200 detective around the legitimacy, look to the company's methodology more than your own approaches. 159 00:18:30,200 --> 00:18:37,280 There is a certain pattern on these items that are reliable arrangements, especially in the order 160 00:18:37,280 --> 00:18:46,040 of company signature, its font, where you can find the placement, trademark detailing, and even 161 00:18:46,040 --> 00:18:52,960 intellectual property design elements. Let's use Cartier as an example, such as the love bracelet. 162 00:18:52,960 --> 00:19:00,760 I find the Cartier brand signature, its purity mark in European standards, the serial number, 163 00:19:00,760 --> 00:19:10,800 a size number, maker's marks or assay marks, and possibly a registered trademark. As far as 164 00:19:10,800 --> 00:19:20,800 mechanisms, the closures and azures or windows behind the gems are set to match a certain shape, 165 00:19:20,800 --> 00:19:28,000 caliber of worksmanship, and exclusive design element. These are guidelines to catch the fakes 166 00:19:28,000 --> 00:19:34,520 from the reel. As for my stories, I've made employees laugh at our fake versions, calling them 167 00:19:34,520 --> 00:19:41,400 Fardier, Fiffenie, and Van Cleef. I was given a Cartier rolling ring with the wrong font, 168 00:19:41,400 --> 00:19:47,600 and the metal was in American heritage versus European. It also seemed hand engraved instead of 169 00:19:47,600 --> 00:19:55,800 stamped. My Fiffenie piece could not spell the last name of the designer properly, and as for the 170 00:19:55,800 --> 00:20:03,240 Van Cleef Alhambra on expendent, the black material was plastic instead of an actual agate gem. 171 00:20:03,240 --> 00:20:11,440 In closing, I'd love to quote our former head of security at a timepiece showroom. He has a love 172 00:20:11,440 --> 00:20:18,000 for the storylines in our most well-known comic books. He said, quote, a hero has to win every 173 00:20:18,000 --> 00:20:24,960 time, a villain only wants, unquote. While I can't say that I've battered a thousand on busting the 174 00:20:24,960 --> 00:20:32,720 copycat items, but I will say I've helped out my own brand, my clients, and the companies I've worked 175 00:20:32,720 --> 00:20:44,200 for dodge a few bullets regarding this game. Thank you for listening and learning with me. I would 176 00:20:44,200 --> 00:20:48,640 love you to share this project with people finding rare beauty in today's world and throughout our 177 00:20:48,640 --> 00:21:03,120 times. Until the next episode, keep your own story sparkling.