PRESIDENT'S CORNER

Allow me this time to introduce you to my new friend Ramu. He is an Indian tribesman who lives with his wife and his son in the middle of a South Indian natural forest reserve. They are located approximately a two hour drive from the city of Trivandrum, in a 12 square-meter house made from bamboo. Calling him or sending over an email is completely out of the question since he has no blackberry, cell phone, or electrical items of any kind. All of his possessions amount to six chickens, two pigs, and a dog. Leibish Polnauer and Ramu   If you search for 'Tribesman in India' in Google, Ramu definitely won't be on the first page of results. In fact, he isn’t even listed anywhere, but it makes no difference to him. I was recently told that if you don’t appear on the first page of Google, you simply don’t exist. Not only that, but the conversion rate for sites on the first and ninth placed is vastly different. If you're on the top of the first page, the conversion rate of the traffic is a miraculous eight times higher compared to the last position on that same very first page of results. How is that you ask? Our SEO expert explained it to me. If you're first, then each click you receive is worth eight times as much as on the bottom of the first page. Sounds nearly as bad as the Olympic Games, where the cameras are on the winner only - the guy who finished in eighth place is not even mentioned. I was trying to communicate all of that to Ramu, but he just shrugged his shoulder and gave me a big smile. Ramu has no interest in his Google placement or his international reputation. His concerns are quite basic - mostly related to water, light, and food. He is not concerned about losing his job, because he has no job. He's self employed, so to speak. He doesn't want to sell anything and he doesn't buy anything. The jungle where he lives has no internet connection and no reception for cell phones either. I have a really bad habit of pulling out my blackberry every two minutes to check for my new emails, although needless to say – there wasn’t much of any point of that where we were. After hanging around with Ramu for a few hours, I realized that you don’t have to be online all the time. It will not reduce my digital multi-presence if I miss one hour, though I still wouldn't dare to miss a whole day…. So upon our return to civilization, I finally noticed a concerned mail from my sales team. They experienced some trauma since Tiffany temporarily took our customary first place on Google, for the search phrase 'yellow diamonds'. I thought about it for a while, and then tried telling them about my encounter with Ramu. They tried to figure out, who is this Ramu? What does he have to do with us losing the first place on Google? There's no record of him in any place. Maybe he's a secret Guru who Leibish went to see in the Indian Jungle?? How did we get to the top of the first page in Google? I once thought Google rates sites from the diamond industry by employing young ladies who search through the various websites and select through for the best one. To my great disappointment, I was told that Google doesn’t use young ladies to patrol the web. Rather, they have powerful bots that find their way through the World Wide Web and rate the sites according to incoming links, keywords, tags, visitors, and more. Each site is given a specific ranking according to a very complicated algorithm. According to the ranking, Google places your companies listing in their search engine results. Either you appear on top or you are not a player yet… So many shroud operators are feeding these Google bots with incorrect information while trying to create the impression that they are the company with most visitors and conversation. These Google bots, which I imagine to be like Arnold Schwarzenegger in the terminator, might get confused with all their false information and pull out their guns in order to wipe that site out. The big question in my mind is this: Why is the first place on the first page eight times more valuable, than the seventh or eighth place? At the end of the day, only quality and price should prevail?!? Customer satisfaction creates a happy customer, and happy customers generate further traffic. Do achievements and winning make one fulfilled or successful? Judging by our regular terms, my tribesman friend in the jungle is not a great achiever. He is definitely not making a second comeback like Steve Jobs did. Although, Ramu showed me that you don’t need to achieve in order to be fulfilled, or satisfied. Achievements arrive when you excel at what you do and make your customers happy. Their happiness will bring you further achievements, such as ranking first among the many results in Google.

We have been selling diamonds for over 30 years now. When we started, it was a rather simple procedure. We bought or manufactured a parcel. I would travel to London or Hong Kong, add a few percent profit to our cost, and make a customer happy. Over the years, some stones remained in our possession and were kept secure in one of our safes. The bigger the business grew, the more the stock grew. The industry is moving at an unbelievable pace. People seek immediate results and look for instant gratification. In the past, I had to reserve a ticket, hotel room, and board a plane just to show a stone and perhaps sell it to one of our customers. It was a logistic undertaking of at least 4-5 days. Today, I can upload an Argyle pink diamond at 4:00 p.m., and one hour later it is sold to a customer in Perth who lives just a diamond throw from the Argyle headquarters. About ten years ago, we began to sell layout designs in combinations of different fancy colored diamonds. The stones were placed in glass boxes ready to be set according to our customer's request. In 2006 we expanded, and began to make fine jewelry. In fact, one of the first pieces our company made, designed by Chavi Itzhakov, was created for Liz Taylor's company. She was a real lover of jewelry and diamonds. Liz took one look at those earrings and said, "That one’s for me!" Samples of Layout Designs Crafted by Chavi Itzhakov at LEIBISH   About two years ago we launched the Create Your Own Ring section on our website. This enabled our customers to choose from a large inventory to make their own designs. They added the stones they fell in love with and chose the ring they most preferred. Then we came into the picture and put together their custom made work of art. The diamonds we sell did not change over the years. The cut, the clarity, and the fancy colors are all the same. However, marketing our business changed dramatically. Our business is spread over a number of different continents and we now have customers all over the world. We post a stone on our website and ten minutes later have the first e-mail from Prague, our first customer asking, “Is that diamond for me?” In the same hour we get a short note from Los Angeles, “Amazing! I must have this stone!”A few months ago I wrote about the 'Tutti Frutti' bracelet, from Cartier. This elegant piece of work was sold in the Sotheby's auction on September 20, 2011 for a whopping USD842,500 after only having been given an estimated value of USD200,000 - 300,000. LEIBISH Tutti Frutti Bracelet   Our designer, Chavi Itzhakov, created her own version of the 'Tutti Frutti' styled bracelet with 54ct Rose-cut Fancy Color Diamonds. When I recently took it out of the safe to show off to one of our customers, it brought a smile to my face to see the same wild sparkle it had when it was first made. In fact, all the diamonds in that safe that we collected over the years look as if I had placed them in the safe last night before leaving home from the office. As time rolls on, business will evolve. Lately we are experiencing a totally new phenomenon with colored diamonds. Both private individuals and larger investment firms are buying fancy color diamonds, just to put them away. They don’t even take possession of the stones; they buy, pay, and the stones disappear into bank vaults, not to be seen for years. The market for fancy colored diamonds is steadily increasing at a phenomenal pace. For example, a magnificent pair of fancy intense blue and fancy vivid yellow diamond ear pendants, with the carat weight of 4.40 and 4.82 was sold in 2004 for only USD190,000 per carat (a total of USD2,517,612). Today, such an item would have been easily sold for USD650,000 - 700,000 per carat. On September 20, 2011, a stunning Platinum, Fancy Intense Blue Pear-Shaped diamond weighing 2.59 carats and near colorless pendant necklace was sold at Sotheby’s New York Important Jewels Auction for approximately USD300,000 per carat (a total of USD782,500). The fancy intense blue pear-shaped stone was almost half the size of the fancy intense blue stones in the earrings sold in 2004. That is a mere six years later, and the price received, which was an absolute steal for such a work of art, was almost twice as much.  It goes to show that the value of fancy colored diamonds in moving in the right direction.A friend of mine from New York had got his hands on an amazing piece. My Indian broker saw the stone and wanted to introduce me and the American, not knowing that we were actually friends. He dragged my friend aside and told him, using the only English phrase he knows, “Leibish – Pink diamond”, “Leibish – Pink Diamond.” I opened the parcel paper and to my complete surprise an amazing 3.00 carat fancy pink marquise smiled at me. It was asking me, “Do you recognize me?” I turned to my son and said “Isn't this the pink we sold a few years ago?” “No,” he answered. “I never saw that stone in my life. I’d remember that one!” I just couldn’t get it off my mind, since the stone looked so familiar. I was sure I once owned that stone before. At the dinner table, the following night, it hit me like an anvil that fell from the ceiling. It was the lovely pink diamond I had sold about 15 years ago. My son, who was just fifteen years old at the time, couldn’t have remembered that one. I can see it like it was yesterday. That 3.00 carat fancy pink was set in a blue sapphire ring. We had advertised the ring on the back cover of a magazine. A private, who saw the advertisement, called from Florida and bought the ring after a one minute conversation with our New York office. The 3.00 ct Fancy Pink Marquise Set in a Blue Sapphire Ring   I walked over to my New York client who was sitting at the very next table and asked him if that stone happened to have been set in a blue sapphire ring. “Yes” he said surprisingly. “You can have the ring as well if you would like.” “I bought it from a Florida private.”The stone was sold 15 years ago. Now, it’s back like new, with a new GIA certificate. The stone, which I had last seen so long ago, was sparkling just as bright as it was back then. Only now, the asking price was 3 times as high. Original Magazine Advertisement with the 3.00ct Fancy Pink Marquis Set in a Blue Sapphire Ring from the Late 90's History proves itself time and time again, as I have been saying all along, diamonds are forever! Let me just take this opportunity to wish all my friends "Shana Tova Umetuka! A Happy, Healthy and Sweet new year!  

History has pages for nations, especially those that excelled. The same applies to brands and products. There is no need to go back too far in history to see this trend.In the 19th century, Great Britain was the dominant force in the world– Britannia ruled the waves. The U.S. took this mantle from the British in the mid-20th century. And it seems as though the Chinese are in the process of taking the mantle from the declining American Empire. I was sitting on the porch of our favourite spot at Taj Exotica in Goa, India, observing a gaggle of geese in the pond acting in what was clearly an organized manner - whatever direction the leader took, the remaining geese followed. I assume that none of the geese ever attended  a business school or had been trained, however they acted in quite a purposeful manner  as part of a group. India, which was the crown jewel of the British Empire from the second half of the 14th century, was the predominant source for diamonds entering Europe. Portuguese navigator, Vasco da Gama, discovered the sea route to India in 1498, by sailing around the Cape of Good Hope. This new and easier route soon led to European dominance of the Indian diamond trade. Consequently, the Indians have been in the diamond trade for over 600 years. Taking another sip of my gin and tonic it suddenly dawned on me that Vasco da Gama not only discovered the route to India but also opened the gate to the Portuguese diamond trade in Goa. And I am now sitting at a luxury hotel in Goa watching a gaggle of geese and trying to understand how the history of the world developed hand in hand with the diamond business. I was thinking about the warning my son mentioned that the U.S. may default on its trillions of national debt. I calmed myself with the thought that the senators who are opposing to extend debt ceiling will eventually come to a compromise. The U.S. Treasury has printed trillions of dollars, predominantly held by the Chinese- so what are they worried about? No such thing can ever happen in India. I tried to figure out how this chaotic continent became a leading economic player? What makes the Indians so successful? Upon arrival at the Taj Exotica, the hotel presented us with a welcome back brown cake. It was a very touching gesture; however, following a stern warning about maintaining a low calorie intake, we did not dare to touch it. On the second day, the cake started to attract the attention of the ants and flies. They became really excited and filled the room, disrupting my afternoon nap. I contacted housekeeping to remove the cake with the flies. Two serious looking guys promptly arrived; one holding a tennis racket. I was a bit taken aback; was this guy going to chase the flies away one by one? What a novel service! I was a bit skeptical but knowing the problem-solving ability of the Indians, I thought I would just wait and see. The guy surprised me - he just passed the racket around the flies and I realized it contained an electric trap. In less than two minutes all the flies had been taken care of, swiftly and efficiently. Once again, I learned a great lesson - executive  power has to be simple, clean, and electrifying. Approximately 30 years ago, India was the biggest consumer of sugar in the world.Last year India was recorded as the biggest gold consumer. India accounted for 24% of total world gold consumption in 2010, with the fastest growth rate. That is more than the US. What a dramatic transition - from sugar to gold. The diamond industry in India employs 1 million polishers; the number of software engineers may be even greater. However half of the products exported from India are consumed by the U.S. So how can it be, that even with its economic troubles, the U.S. is still the biggest consumer market of the world? If China and India became so rich and successful serving America and selling their diamonds and software to the USA – with almost all sales on credit and borrowing – how can it be that America is in dire financial straits? My G & T was finished and I understood - the world is round, what is down today, may be up tomorrow; only values and principals will prevail. The U.S. has values and they are willing to make sacrifices. The sun rises in the East but sets in West. Diamonds don’t lose their sparkle, they are forever.        

We named our company LEIBISH, Leibish is my name, my first name. It means a lion, and you have to be a lion to survive in this jungle. We could have selected a fancy name, but we prefer not to hide from our customers. It is important to us that our clients know there are real live breathing people behind the brand. I want my customers to know me, my wife and five children are behind every piece of jewelry we sell. Leibish Polnauer, Founder and President of LEIBISH We don’t use software to help us select the goods that are seemingly, the best value for our money. Rather, we examine each of the diamonds and gemstones before adding them to our collection, just as all jewelers did 50 years ago. In fact, I would say that the vast majority of goods we look at are immediately rejected. To assess the finest diamonds and be able to differentiate between two stones with a similar certificate, you need to be an expert gemologist. I am comfortable enough to say, we are experts. LEIBISH's GIA Certificates A colored diamond or a fine emerald is similar to a painting. When you want to buy an important piece of art, you consult with an expert, and it’s the same when it comes to buying our goods. You consult a real expert for value, for quality, and for craftsmanship. None of that information is included in the GIA certificate. The first criteria looked at is the color saturation of the face (or table) of the stone. We study the stone and give it an in-house grade, anywhere from 1-10, before we even look at the GIA diamond report to see what they said. For example, the color face up is much more important than small details of clarity. A fine intense yellow diamond with a VS2 clarity grade is much more valuable than a weak intense yellow with a VVS1. You would be surprised just how many educated people in the industry are unaware of this basic information. I see it day after day. Especially when it comes to these products, people do their research. They read all the information they can get their hands on and then come to me asking for the specs. They get obsessed with what they learned about colorless diamonds and under the assumption that a diamond is a diamond, apply the same values to colored goods. Fancy Intense Yellow Diamonds Fancy Vivid Yellow Diamonds On paper, a VVS1 is more valuable than a VS2. Both groups in each of the images shown above are similar stones with very similar clarity grades. Believe it or not, the certificates are nearly identical. Although in the focused image you can see a difference, how can a layman really know which are the best group of stones when looking at it with a naked eye? The skill is knowing what to look for and where to look for it. Shmulik Polnauer my son is a GIA GG - a real expert. At age 25, he bought a 3ct vivid blue on his own, and I wasn’t looking over his shoulder. He has proved his himself a many times over, and anyone in the trade would happily vouch for him, hands down. He puts his signature on the appraisals. Shmulik Polnauer Louping a Yellow Diamond When buying an important diamond, knowledge is crucial. The certificate gives you a great guideline, but you need someone you can trust to find the most appropriate stones. The LEIBISH New York Showroom Look at the images of the yellows above and just try to identify which stone is of the best value. When you are facing a big decision for a fine stone, contact us. I promise that good advice from a reliable firm with 40 years of experience never hurts.

LEIBISH Mogok Vivid Pink Sapphire and Green Tsavorite Bombe Ring The Splendor of Mogok The world’s legendary jewels have all hailed from mysterious and exotic lands in far flung regions. The Star of India, that mammoth 6-rayed star stone was recovered from Sri Lanka. The Cullinan Diamond, the largest diamond ever found, was mined in South Africa. And the enormous Jewel of Kashmir sapphire required heroic efforts to uncover it high in the Himalayas over a century back. Mogok city (Photo Credit to Naw Htike) The Road to Burma The Mogok Stone Tract in upper Burma has also been synonymous with the world’s most cherished jewels dating back some 2,000 years. Remote and inhospitable, this southeastern Asian country has famously produced remarkable jewels throughout time. This special tract is famed for ruby, sapphire, spinel, peridot, and moonstone. “For centuries, the Mogok Stone Tract’s hills were legendary for such amazing abundance that locals were said to come upon gems just glinting in the grass in their gardens,” reports the American Museum of Natural History in their published work, Ruby Land: The Gems and Geology of Myanmar’s Mogok Stone Tract. Miners in the Kadoke-tat mine (Photo Credit to Federico Barlocher) Ruby Land Ahead While it may be difficult to acquire these sumptuous stones today, it is still possible to those persistent enough to endure the rigors of Burma (Myanmar). The region’s highway boasts a “Welcome to Ruby Land” sign foretelling the approximately 1,000 working mines still found there. LEIBISH Burmese Marquise Ruby and Heart Diamond Three-Stone Halo Ring The exceptional 4.60 ct vivid red Mogok Splendor was mined in the monsoon-ridden subtropical valley of Kadoke Tat (or Kadote-dat). It was recovered from the natural marble fissure in Mogok Township a decade back. In Asia these stones are traditionally called Burma Ruby. The mine is acknowledged for its fine rubies and other gemstones.After being polished by a local craftsman, the crystal revealed its superb quality. The no-heat Mogok Splendor rivals the most incomparable of Burmese sapphires. Mogok Gems  The Trophy for Mining Hardship Mining gemstones, especially in this rugged terrain, is both grueling and fraught with danger. The miner has to move tons of marble and carefully scan the results for quality corundum. The miners must inspect hundreds of tons of marble just to find a worthy crystal. Miners in the Kadoke-tat mine during hard and dangerous labor Inside the Kadoke-tat mine The Valley is blessed with coveted gems including rubies and sapphires embedded in its creamy white marble that must be brought to the surface.   The stone embedded in motherock crystal of marble Vivid red rubies have increased in prominence following the closure of the Argyle mine in 2020.  While they are not cheap, they have a winning price point when contrasted to the stellar prices of pink diamonds. The Mogok Splendor Burmese ruby and sapphire are currently the darling of auction houses and reaching exceptional prices for fine goods. Collectors are quick to identify a superb stone when they see one and they understand they represent exceptional value while bringing a lifetime of enjoyment. LEIBISH Mogok Vivid Pink Sapphire and Green Tsavorite Bombe Ring LEIBISH Extraordinary Burma Unheated Red Ruby and Diamond Halo Ring

Luxury is part of magic. I often hear that luxury is about selling dreams. But I actually think luxury is not about dreams but rather it’s about magic. Luxury is a form of magic, which transforms and uplifts the nature of things, just as magicians and fairies do. Cartier the Alchemist Luxury maisons do not create that ethereal dream world, rather they embellish it by adding something completely enchanting to it. Jean Cocteau wrote about the legendary House of Cartier, describing its founder as a ‘subtle magician’. Cartier helps us see beauty wherever it may appear, including in the mundane like nails or screws. They become transformed into precious artifacts, objects of desire---just like that. They make the ordinary extraordinary, like an alchemist. LEIBISH Extraordinary No Heat Oval Sapphire and Diamond Side Stone Ring Transformation of Luxury The magic of luxury also has an effect on the one who wears these treasured creations. Precious stones carry energy and mystery, having been mysteriously forged below the Earth millions of years ago. Colorful stones have been collected, horded and fought over since time immemorial. From that they naturally evolved into potent symbols of royal or religious power. They hold a fragment of eternity. They render confidence. They enhance life and elevate the soul.   LEIBISH 1.73 carat, Fancy Intense Pink Diamond, Emerald Shape, SI1, GIA & ARGYLE Modern Times In the realm of luxury especially, jewelry takes on a mystical quality. Even so, modern times call for transparency all the way around-- on materials, processes, origins, and supply chains. The whole thing. One can wonder if this new era of transparency is compatible with magic. Will it not kill the mystery? I can’t see that it will kill the mystery because magic is not an illusion---luxury remains. The more one sees a true artisan’s craftsmanship, the more awe it brings. The more one understands the sum of technology and the know-how necessary to magnify beauty, the more amazing it becomes. The more one wears carefully curated jewelry. the more confident one feels. That luxury piece of jewelry is alluring—and so is the woman wearing it. LEIBISH Rosie's Bloom Collection Power of Love in Action When Luxury maisons create beautiful settings, it unleashes an ephemeral magical transformation, revealing its true charm and allure. Like Cinderella´s fairy godmother whose touch temporarily revealed Cinderella’s true self--- let’s experience the magic of love in operation.  LEIBISH Exceptional Fancy Vivid Yellow Green Radiant 3 Stone stone Diamond Ring