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VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY<br />
NOVEMBER <strong>2021</strong><br />
New world watches<br />
LOOKING TO THE POST-PANDEMIC<br />
FUTURE OF WATCH FAIRS<br />
Diamond pipeline<br />
IMPACT AND CHANGES COVID<br />
CAUSED ON THE DIAMOND INDUSTRY<br />
Flashes & flames<br />
A DIVE INTO THE ALLURE OF<br />
ORANGE AND YELLOW GEMSTONES
AUSTRALIA'S PREMIER DIAMOND SUPPLIER<br />
SINCE 1986<br />
Reliability<br />
Honesty<br />
Integrity<br />
RENOWNED FOR THE LARGEST RANGE OF PREMIUM WHITE AND COLOURED DIAMONDS IN AUSTRALIA<br />
IN BOTH ROUND BRILLIANTS & FANCY CUT DIAMONDS.<br />
ACCESS TENDER STONES, SINGLE STONES & MELEE ARGYLE PINK DIAMONDS AND<br />
THE WORLD'S LARGEST INVENTORY OF CERTIFIED ARGYLE CHAMPAGNE DIAMONDS<br />
Specialist in all fancy-shapes<br />
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P +61 3 9650 2243<br />
E SALES@ADTC.COM.AU<br />
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MELBOURNE VIC 3000<br />
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Helping you shine<br />
yesterday, today<br />
& tomorrow.<br />
worldshiner.com
Info@LJWestDiamonds.com | www.LJWestDiamonds.com | www.ScottWestDiamonds.com
To schedule an appointment, please contact us:<br />
L. J. WEST DIAMONDS INC. | 589 5th Ave, Suite 1102 | New York, NY 10017, U.S.A. | T +1 212 997 0940<br />
L. J. WEST AU PTY LTD | Level 9, 225 St Georges Terrace | Perth, WA 6000, Australia | T +61 40 997 6981
C<br />
Australia is enriched with amazing treasures. Sapphire Dreams pays tribute to the beauty of<br />
natural Australian sapphires, ethically sourced from the sapphire fields of inland Eastern Australia.<br />
Our Australian sapphire jewellery collection is crafted in 9ct or diamond set 18ct gold.<br />
To achieve this level of uncompromised excellence, all sapphires pass through the hands of our<br />
skilled gem cutters to become one-of-a-kind, timeless masterpieces.
all SGA today to become an Authorised Stockist<br />
SapphireDreams.com.au 02 9290 2199
The Natural Color Diamond Association is a not-for-profit organization<br />
with a mission to promote fair and informed trading by providing up-todate<br />
resources and advocating transparency, all while celebrating the beauty<br />
and ethos of colored diamonds.<br />
www.ncdia.com<br />
Email: office@ncdia.com
NOVEMBER <strong>2021</strong><br />
Contents<br />
This Month<br />
Industry Facets<br />
11 Editor’s Desk<br />
26<br />
10 YEARS AGO<br />
Time Machine: <strong>November</strong> 2011<br />
12 Upfront<br />
28<br />
NOW & THEN<br />
Hammerton's <strong>Jeweller</strong>s<br />
14 News<br />
30<br />
MY STORE<br />
FinerRings<br />
34 DIAMOND INDUSTRY UPDATE<br />
Diamond Pipeline Review<br />
24 Product Spotlight<br />
52 <strong>Jeweller</strong>s Showcase<br />
33<br />
80<br />
LEARN ABOUT GEMS<br />
Ethiopian opals<br />
MY BENCH<br />
Troy O'Brien<br />
4Diamond industry analysts PRANAY<br />
NARVEKAR and CHAIM EVEN ZOHAR<br />
share their insights into the‘pipeline’ from<br />
mine to market over 2020 and <strong>2021</strong>.<br />
Features<br />
82<br />
SOAPBOX<br />
Virginia Moody<br />
34<br />
48<br />
54<br />
61<br />
DIAMOND INDUSTRY UPDATE<br />
Mine to market: pipeline review<br />
SCIENTIFIC REPORT<br />
Secrets of the super-deep diamonds<br />
WATCH FEATURE<br />
New world emerging from isolation<br />
GEM QUARTER: ORANGE & YELLOW GEMSTONES<br />
Flashes of sunset magic<br />
Better Your Business<br />
54 WATCH FEATURE<br />
A brave new world<br />
4MARTIN FOSTER explores the return<br />
to face-to-face fairs amid a distorted postpandemic<br />
watch-buying environment.<br />
74<br />
76<br />
77<br />
78<br />
79<br />
BUSINESS STRATEGY<br />
DOUGH STEPHENS answers existential questions to help revive your business.<br />
SELLING<br />
BRI WILLIAMS uncovers selling strategies for different personality types.<br />
MANAGEMENT<br />
There are three keys to successfully recover from COVID, writes DAVID WAKEMAN.<br />
MARKETING & PR<br />
BRIDGET BROWN reveals the blueprint for building the ark before the next flood.<br />
LOGGED ON<br />
DONNA ST JEAN CONTI provides steps on how to harness your website's FAQ page.<br />
61 GEM QUARTER<br />
Sunset Magic<br />
4From sunshine lemons<br />
to vibrant tangerine hues,<br />
explore the beauty of yellow<br />
and orange gemstones.<br />
FRONT COVER This iconic 2.83-carat fancy deep<br />
grayish-bluish violet Argyle diamond is the largest<br />
to have been recovered from the Argyle mine, and<br />
was acquired by LJ West in the 2016 Argyle tender.<br />
Set into platinum and accented by a halo of 12 vivid<br />
pink diamonds, this Scott West design has toured the<br />
world and was on display at the Los Angeles' Natural<br />
History Museum as part of an outstanding diamonds<br />
exhibition. LJ West Diamonds is a three-generation<br />
specialist in rare fancy colour diamonds, and one of<br />
the earliest Arygle Pink Diamond authorised partners.<br />
<strong>November</strong> <strong>2021</strong> | 9
FOR THE JEWELLERY INDUSTRY IN 2022<br />
AUGUST 27 – 29, 2022<br />
ICC Sydney, Darling Harbour<br />
jewelleryfair.com.au<br />
Est. 1990
Editor’s Desk<br />
DeBeers, it was always going to happen<br />
De Beers recently announced that it will now sell loose lab-created diamonds direct to consumers.<br />
ANGELA HAN explores further challenges that lie ahead for both retailers and suppliers.<br />
It was more than two years ago, on<br />
29 May 2018, when De Beers Group<br />
stunned the jewellery industry with its<br />
announcement that it was entering the<br />
lab-created diamond market with a range<br />
they described as “high-quality, fashion<br />
jewellery designs at lower prices than<br />
existing lab-grown diamond offerings."<br />
The jewellery was to be manufactured and<br />
marketed by a new, stand-alone company<br />
called Lightbox Jewelry, with sales of earrings<br />
and necklaces beginning on 27 September<br />
that year. Naturally, all diamonds for the<br />
Lightbox collection would be sourced from De<br />
Beers’ own Element Six manufacturing facility.<br />
As if the unexpected move wasn’t enough,<br />
the announcement was made just prior to<br />
the opening of the JCK Las Vegas Show, in<br />
what many said was a well-timed attack on<br />
its competitors.<br />
The pricing model of the Lightbox diamonds<br />
flew in the face of all accepted pricing<br />
‘standards’ and ‘models’ for both natural<br />
and other lab-created diamonds.<br />
De Beers used Lightbox to create a<br />
‘transparent’ and ‘affordable’ linear pricing<br />
model at US$800 (AU$1,350) per carat<br />
regardless of whether the piece of jewellery<br />
consisted of a one-carat diamond or two half<br />
carats, or even four-quarter carat stones.<br />
Recently, it introduced loose diamonds<br />
under the same linear model, but now with<br />
a 2-carat stone being priced at US$1,600<br />
(AU$2,650).<br />
While De Beers’ unorthodox pricing was said<br />
to be another attack on competitors as a<br />
way to create upheaval in diamond pricing,<br />
its logic was more rational – all stones<br />
are manufactured under state-of-the art<br />
conditions so they are all identical, therefore<br />
the pricing is identical.<br />
Sally Morrison, chief marketing officer,<br />
Lightbox Jewelry told <strong>Jeweller</strong> in December<br />
2018: “Our reasoning is simple: this is a<br />
manufactured product and we firmly believe<br />
lab-grown stones should be priced based on<br />
cost of manufacture, not as a discount from<br />
natural diamond pricing, which is defined by<br />
relative rarity.”<br />
Following the Lightbox announcement, a<br />
2018 Bain & Co report commissioned by the<br />
Antwerp World Diamond Centre, revealed<br />
that a the manufacturing cost for a onecarat<br />
CVD-created diamond was US$300 to<br />
US$500 per carat, compared with US$4,000<br />
per carat in 2008.<br />
Unlike other lab-created diamond suppliers<br />
offering loose stones, the Lightbox branded<br />
diamonds were only available in set jewellery.<br />
But even blind Freddy could see what was<br />
coming!<br />
And so it was last month, almost two years<br />
later, the announcement was made for “the<br />
launch of Lightbox Loose Stones, a new<br />
purchase format that gives consumers the<br />
ability to buy individual high-quality Lightbox<br />
lab-grown diamonds at its industry-leading<br />
price of $800 per carat.”<br />
Surprise? Not really!<br />
You see, De Beers entering the lab-created<br />
market was no surprise to <strong>Jeweller</strong>. In fact, in<br />
2018 when Lightbox was launched, we asked:<br />
“Why did it take so long?”<br />
Indeed, 13 years earlier in 2005, <strong>Jeweller</strong>'s<br />
editorial stated: “De Beers should begin<br />
manufacturing synthetic diamonds… Rather<br />
than fighting the inevitable, perhaps the<br />
company would be best to embrace it.”<br />
After all, the diamond behemoth had an<br />
enormous income stream to protect, so it<br />
wasn’t a matter of if but when it would begin<br />
selling lab-created diamonds. The reasoning<br />
was simple: you can’t win a game you’re not<br />
playing – have you ever seen a game won by<br />
a spectator?<br />
De Beers’ latest announcement to offer<br />
lab-created diamonds directly to consumers<br />
simply follows an inevitable path towards an<br />
evolving business model.<br />
If we accept this logic, then we are left with<br />
another question: was all this a strategic<br />
move to ensure that other lab-created<br />
diamond innovators didn’t become a blanket<br />
disruption to the natural diamond market,<br />
or was it because De Beers finally realised<br />
that lab-created diamonds are not a serious<br />
threat after all?<br />
<strong>Jeweller</strong> first raised this question in 2018<br />
in our Great Diamond Debate – Natural Vs<br />
Synthetic where we concluded that it might<br />
be both, or perhaps it didn't matter at all!<br />
The debate then quickly moved on; cool<br />
heads prevailed and the lab-created diamond<br />
manufacturers learned to live with competition<br />
De Beers’ latest<br />
announcement<br />
to offer<br />
lab-created<br />
diamonds<br />
directly to<br />
consumers<br />
simply follows<br />
an inevitable<br />
path towards<br />
an evolving<br />
business model.<br />
from the De Beers-backed Lightbox just as<br />
De Beers had come to realise lab-created<br />
diamonds were here to stay.<br />
The next debate became Fact vs Fiction<br />
as both sides fought a marketing<br />
jargon battle. Sure, the winners were<br />
the consumers who now had more<br />
choice. However, could they really make<br />
an informed decision in the midst of<br />
a marketing barrage about the pros<br />
and cons of natural versus lab-created<br />
diamonds?<br />
Away from the battlefields of marketing<br />
and jargon, both retailers and suppliers<br />
are now faced with other dilemmas.<br />
Mass-manufacturing facilities can’t stop<br />
manufacturing. In order to keep the<br />
business operating and doors open, it must<br />
keep producing, at which point supply will<br />
outstrip demand; thus prices drop.<br />
With such a volatile model, retailers may<br />
be less likely to keep stock of lab-created<br />
diamonds in the same way they do with<br />
their natural counterparts.<br />
Increasingly, with the price of lab-created<br />
diamonds falling and suppliers selling loose<br />
stones direct to the public becoming the<br />
preferred model, this could further impact<br />
retailer diamond sales. When prices are<br />
driven so low to a point where no one in<br />
the supply chain makes a profit, something<br />
somewhere along the way has got to give.<br />
De Beers executive vice president Stephen<br />
Lussier told JCK in March that the<br />
wholesale price of lab-created diamonds<br />
was still declining and, “They are probably<br />
down some 20 per cent in the fourth quarter<br />
of 2020 alone.”<br />
A diminishing margin could further propel<br />
lab-created manufacturers to stray from<br />
traditional supply channels and go direct to<br />
the consumer. For retailers, whose natural<br />
diamond sales have been challenged by<br />
online platforms, lab-created diamonds<br />
could also prove to further undercut their<br />
overall diamond sales.<br />
The dust has yet to settle in this battle, but<br />
one thing is for sure: the market for gemquality<br />
lab-created diamonds is there and<br />
continues to grow – but the supply channel<br />
still has a way to go.<br />
Angela Han<br />
Publisher<br />
<strong>November</strong> <strong>2021</strong> | 11
Upfront<br />
#Instagram hashtags to follow<br />
The ERP program<br />
is an extension<br />
of the existing<br />
Shopify Plus<br />
Certified App<br />
Partner Program.<br />
#argylepinkdiamonds<br />
15,954+ POSTS<br />
#blackdiamondring<br />
42,267+ POSTS<br />
#chainearrings<br />
44,174+ POSTS<br />
#goldring<br />
885,996+ POSTS<br />
#greentourmaline<br />
176,387+ POSTS<br />
HISTORIC GEMSTONE<br />
The Hooker<br />
Emerald<br />
4Mined in Colombia in the 16th or<br />
17th Centuries, the rough that would<br />
become the Hooker Emerald was sent<br />
to Europe by Spanish Conquistadors,<br />
where it was cut and polished before<br />
being sold to the ruling family of the<br />
Ottoman Empire.<br />
Digital Brainwave<br />
#handengraved<br />
161,643+ POSTS<br />
#jewelrydesign<br />
9.1 MILLION POSTS<br />
#jewelryhistory<br />
19,727+ POSTS<br />
#topazjewelry<br />
26,960+ POSTS<br />
#uniquegems<br />
13,538+ POSTS<br />
Alpha Order<br />
Sultan Abdul Hamid II wore it as a belt buckle before it was smuggled to<br />
Paris in 1908 with other Ottoman crown jewels. Tiffany & Co. purchased<br />
the emerald via auction in 1911, initially set in a tiara before being crafted<br />
into its current form, a diamond and platinum brooch. Heiress Janet<br />
Annenberg Hooker purchased the brooch from Tiffany & Co. in 1955, and<br />
gifted it to the Smithsonian museum in 1977, where it remains on display<br />
to this day.<br />
4E-commerce platform Shopify has<br />
launched a new global enterprise resource<br />
planning (ERP) program, which will give<br />
retailers access to a suite of new apps.<br />
Shaun Broughton, managing director<br />
of Shopify Asia-Pacific, said, “Shopify’s<br />
integration with leading ERP providers<br />
gives merchants – especially those running<br />
multiple stores across different geographies,<br />
sub-brands and audiences – the power to<br />
manage their business operations directly in<br />
their Shopify stores.”<br />
Trend Spotting<br />
4One of the trends to emerge from the<br />
catwalks of 'Fashion Month' – the New<br />
York, London, Milan, and Paris Fashion<br />
Weeks – was armbands. A revival of the<br />
'90s-2000s trend, the modern version<br />
sits on the bicep. Whether embellished,<br />
oversized, or sleek (as seen at the Tory<br />
Burch show, above), armbands are the<br />
perfect jewellery accessory for summer's<br />
sleeveless clothes and swimwear.<br />
Campaign Watch<br />
Image credit: GoRunway<br />
Image credit: Charles Melling/David Yurman<br />
4US jewellery brand David Yurman<br />
has unveiled its latest campaign for the<br />
Northern Hemisphere autumn. Named<br />
'The Power of Cable', the campaign<br />
features Yurman's signature rope-like<br />
jewellery from the Sculpted Cable, Stax,<br />
Lexington, Elements, and Pyramid<br />
collections, photographed in the streets<br />
of New York City.<br />
Stranger Things<br />
Weird, wacky and wonderful<br />
jewellery news from around the world<br />
Duly noted<br />
4A burglar in the city of<br />
Dewas, India has left a cheeky<br />
note for a homeowner after<br />
breaking into their property. The<br />
note questioned why the resident<br />
had left their house unlocked if<br />
there was no money or valuables<br />
inside! The thief did not leave<br />
empty-handed, however; Indian<br />
media report that they took some<br />
cash and silver jewellery, which<br />
was discovered by the homeowner –<br />
a public official – when he visited the<br />
property two weeks later.<br />
Cold as ice<br />
4Scientists at the Gemological<br />
Institute of America (GIA)<br />
have discovered a diamond that<br />
changes colour when chilled<br />
to hundreds of degrees below<br />
zero. The stone is grey at room<br />
temperature but shifts to yellow<br />
when cooled to -320 o C – the same<br />
temperature as liquid nitrogen.<br />
It has been dubbed the 'cryogenic<br />
diamond', though the mechanism<br />
of the colour change is unknown.<br />
Royal flush<br />
4Sydney Water has launched<br />
a new advertising campaign<br />
to prevent the city's residents<br />
from blocking their toilets with<br />
'unflushable' objects. Over the<br />
past three months, Sydney Water<br />
crews have had to fix more than<br />
7,000 pipe blockages caused by<br />
– among other things – flushed<br />
watches and jewellery! The<br />
organisation estimates it spends<br />
$8 million every year removing<br />
500 tonnes of refuse from the<br />
wastewater system.<br />
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY<br />
Published by Befindan Media Pty Ltd<br />
Locked Bag 26, South Melbourne, VIC 3205 AUSTRALIA | ABN 66 638 077 648 | Phone: +61 3 9696 7200 | Subscriptions & Enquiries: info@jewellermagazine.com<br />
Publisher Angela Han angela.han@jewellermagazine.com • Editor Arabella Roden arabella.roden@jewellermagazine.com • Production Coordinator Lauren McKinnon art@befindanmedia.com<br />
Advertising Toli Podolak toli.podolak@jewellermagazine.com • Accounts Paul Blewitt finance@befindanmedia.com<br />
Copyright All material appearing in <strong>Jeweller</strong> is subject to copyright. Reproduction in whole or in part is strictly forbidden without prior written consent of the publisher. Befindan Media Pty Ltd<br />
strives to report accurately and fairly and it is our policy to correct significant errors of fact and misleading statements in the next available issue. All statements made, although based on information<br />
believed to be reliable and accurate at the time, cannot be guaranteed and no fault or liability can be accepted for error or omission. Any comment relating to subjective opinions should be addressed to<br />
the editor. Advertising The publisher reserves the right to omit or alter any advertisement to comply with Australian law and the advertiser agrees to indemnify the publisher for all damages or liabilities<br />
arising from the published material.
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News<br />
In Brief<br />
Chow Tai Fook embraces<br />
lab-grown diamonds<br />
4The world's largest jewellery retailer<br />
by store count, Chow Tai Fook (CTF), has<br />
quietly launched a lab-created diamond<br />
brand named Cama on e-commerce platform<br />
Tmall. Kent Wong, managing director CTF,<br />
previously said the company "fully supports<br />
the natural diamond industry" and in May<br />
<strong>2021</strong>, CTF signed an agreement with the<br />
Natural Diamond Council to promote mined<br />
diamonds in the Chinese market.<br />
Fight continues over pandemic Insurance<br />
De Beers searches for<br />
diamonds in Greenland<br />
4 Diamond mining giant De Beers has<br />
conducted an eight-day survey of the<br />
ocean floor off Greenland's west coast to<br />
determine whether it could hold deposits<br />
of marine diamonds. The survey spanned<br />
approximately 800km of the seabed near<br />
the town of Maniitsoq, according to a<br />
spokesperson for the Geological Survey<br />
of Denmark and Greenland. The results<br />
will take several months to analyse.<br />
Fabergé creates bag<br />
with Gemfields<br />
4Historic jewellery and accessories<br />
manufacturer Fabergé has unveiled a<br />
gemstone-encrusted bag, the Majesty<br />
clutch, made in conjunction with coloured<br />
gemstone supplier Gemfields. Priced<br />
at $US400,000, it features Gemfields'<br />
Mozambican rubies and Zambian<br />
emeralds, diamonds, pearls, yellow and<br />
pink sapphires, and tsavorites, and is<br />
Fabergé's first bag since 1917.<br />
Al Capone's jewellery and<br />
watches auctioned<br />
4A collection of property belonging to<br />
infamous gangster Al Capone have gone<br />
under the hammer in California, fetching<br />
$US3 million. His platinum-anddiamond<br />
Patek Philippe pocket watch<br />
far exceeded its $US25,000–50,000<br />
estimate, selling for $US229,900, while<br />
a 14-carat white gold and diamond 'AC'<br />
pendant sold for $US82,280, well above<br />
its $US2,500 –5,000 estimate. Capone's<br />
granddaughters sold the pieces.<br />
Business interruption insurance has emerged as a controversial topic during the pandemic, with<br />
insurance giants claiming policies were never intended to cover pandemics.<br />
The Federal Court of Australia has dealt<br />
a blow to a number of small businesses,<br />
including retailers, who have made been<br />
denied insurance payouts for losses<br />
sustained during the COVID-19 pandemic.<br />
The Court decision on a crucial test<br />
case overwhelmingly found in favour of<br />
insurance companies meaning that they<br />
may potentially avoid paying out billions,<br />
ABC has reported.<br />
Business interruption insurance has<br />
emerged as a controversial topic during<br />
the pandemic, with insurance giants<br />
claiming policies were never intended to<br />
cover pandemics.<br />
Justice Jayne Jagot found that the majority<br />
of nine business interruption policies put<br />
before the Federal Court for assessment<br />
would avoid payouts to the insured<br />
businesses.<br />
According to the ABC report, “the test case<br />
looked at under what terms a business<br />
could claim for downturn in trade during<br />
the pandemic, including if a government<br />
lockdown order was sufficient or whether<br />
a business needed an actual case of the<br />
virus in its proximity to claim.”<br />
A number of class-action lawsuits have<br />
been launched including one that involves<br />
Damien Cody, director Cody Gemtec<br />
Retail, which trades as The National Opal<br />
Collection. He has publicly challenged the<br />
insurance companies for refusing to offer<br />
compensation to small businesses with<br />
interruption policies.<br />
Cody told <strong>Jeweller</strong>: “These test cases were<br />
hand-selected by the Insurers to be tested<br />
in court. They do not necessarily reflect<br />
the broad range of wordings and claims<br />
that have been denied. Our claim on the<br />
Lloyds policy was put forward by AFCA as<br />
a potential test case however Lloyds did<br />
not want it to be tested.<br />
“Some of the findings might have<br />
implications for some of the arguments<br />
in our matter but not the most important<br />
issue.”<br />
John Berrill, the Lawyer representing<br />
Cody, confirmed that the Court’s ruling<br />
might not affect his client.<br />
“The way a policy works is that there are<br />
things called deeming clauses. Their<br />
policy states that they have to prove<br />
there was an outbreak but if there was<br />
an outbreak, it is deemed to have caused<br />
damage to the business.<br />
They [the insured] still need to prove they<br />
suffered a loss because of the outbreak,<br />
but their [Cody’s] policy does not have all<br />
the problems or potential problems that<br />
Justice Jagot identified in her decision,”<br />
Berrill explained.<br />
14 | <strong>November</strong> <strong>2021</strong>
News<br />
New jewellery insurance regulations in wake of Royal Commission<br />
Reforms to add-on insurance are impacting the<br />
jewellery industry, with consumers bearing the<br />
risk of having uninsured pieces.<br />
<strong>Jeweller</strong>y insurance providers are adapting to<br />
fresh regulations, introduced following Kenneth<br />
Hayne QC's Royal Commission into Misconduct<br />
in the Banking, Superannuation and Financial<br />
Services Industry.<br />
The restrictions form part of the Financial Sector<br />
Reform (Hayne Royal Commission Response) Bill,<br />
passed by Federal Parliament in December 2020,<br />
and which came into effect on 5 October <strong>2021</strong>.<br />
They are designed to prevent the ‘hawking’ of<br />
financial products, such as insurance, to retail<br />
clients for whom they were not designed.<br />
The reforms include the introduction of a<br />
‘deferred sales model’ for add-on insurance –<br />
defined as insurance products offered or sold in<br />
connection with the purchase of a principal good<br />
or service – in order to strengthen consumer<br />
confidence and prevent ‘pressure selling’.<br />
In practice, this means that when jewellers refer<br />
a customer to an insurer, the customer “must<br />
wait four days before being able to take out the<br />
insurance,” Lachlan Renshaw, managing director<br />
of Centrestone <strong>Jeweller</strong>y Insurance, told <strong>Jeweller</strong>.<br />
“The intention by regulators was to protect<br />
consumers from being forced into insurance<br />
policies they didn’t need.<br />
"Specifically, they named wheel-rim insurance<br />
and mobile phone insurance as products which<br />
provided little to no value to the consumer."<br />
Renshaw added, “In reality, for the jewellery<br />
industry, what this means is that if a customer<br />
comes into a jewellery store to pick up their new<br />
jewellery, they cannot insure it for four days and<br />
the risk falls onto the customer.”<br />
In order to address this risk, Centrestone<br />
<strong>Jeweller</strong>y Insurance has introduced a<br />
complementary four-day policy for customers<br />
referred by jewellers “so there is no break in cover<br />
and the customer is insured from the moment<br />
they activate their cover with us,” Renshaw said.<br />
The comprehensive four day policy offers all the<br />
same policy features as Centrestone <strong>Jeweller</strong>y<br />
Insurance standard policy for jewellery items<br />
up to $50,000, with like-for-like replacement<br />
provided by the referring jeweller.<br />
This offer is fully compliant with the new<br />
regulations and means that customer do not<br />
need to wait four days until obtaining cover.<br />
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News<br />
Michael Hill to stock Seiko watches,<br />
De Beers diamonds<br />
Seiko watches are now available through Michael Hill Australia and New Zealand. The<br />
retailer has also unveiled premium rings set with De Beers Code of Origin diamonds.<br />
<strong>Jeweller</strong>y chain Michael Hill International has introduced Seiko watches<br />
across selected Australian and New Zealand stores and on its e-commerce<br />
website. The range includes 53 “premium level” models for men and<br />
women from Seiko’s Prospex, Presage, Armstrong, Coutura, and Le Grand<br />
Sport Collections, and will retail from $650–$3,750.<br />
It is the only watch brand stocked by Michael Hill, apart from its in-house<br />
Michael Hill range; Michael Hill previously stocked Seiko watches some<br />
years ago.<br />
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Yukiaki Suganuma, managing director of Seiko Australia, said “Seiko is<br />
excited to be partnering with Michael Hill. Daniel Bracken, CEO Michael<br />
Hill International, added, “We are delighted to reignite our relationship<br />
with Seiko and introduce a range of Seiko watches to our Michael Hill<br />
customers in Australia and New Zealand.<br />
Customers purchasing Seiko watches through Michael Hill will receive an<br />
'e-guarantee', and repairs and services follow the usual Michael Hill terms<br />
and will be carried out by Seiko.<br />
Excluding Michael Hill, Seiko has 286 stockists in Australia and New Zealand<br />
according to its website, including large chains Wallace Bishop, Bevilles, and<br />
Shiels, and smaller chains Salera's, Regency <strong>Jeweller</strong>s, and Hoskings.<br />
Meanwhile, Michael Hill has also announced it will stock a range of<br />
engagement rings set with diamonds from the De Beers Code of Origin<br />
Trusted Source Program. The range will be part of the premium The<br />
Solitaire By Michael Hill Collection and manufactured in Australia, set in<br />
platinum and 18-carat gold.<br />
A statement from Michael Hill International said, "Diamonds from the<br />
De Beers Code of Origin Trusted Source Program reflect De Beers’ deep<br />
commitment to social and environmental responsibility, giving the wearer<br />
additional peace of mind and a diamond that they can be especially proud<br />
to own and wear."<br />
Code of Origin diamonds are guaranteed to be natural and unearthed by<br />
De Beers in Canada, Botswana, Namibia or South Africa, conflict-free and<br />
meeting De Beers' ethical standards, which the company describes as<br />
"industry-leading".<br />
De Beers claims Code of Origin diamonds also "helped protect the planet<br />
through wildlife conservation and De Beers’ commitment to be carbon<br />
neutral by 2030".<br />
The collection is available online and in selected stores across Michael Hill<br />
International's store network in Australia, New Zealand, and Canada.<br />
apdx.com.au 1800 344 008
News<br />
De Beers-owned Lightbox Jewelry now offers loose pink, blue, and white lab-created<br />
diamonds to its US customers.<br />
Lightbox launches loose lab-created<br />
fancy colour diamonds for consumers<br />
Lightbox Jewelry, the De Beers-owned lab-created diamond jewellery<br />
business, has launched new product category Lightbox Loose Stones,<br />
which enables consumers to purchase individual Lightbox white, pink, or<br />
blue lab-grown diamonds at its standardised price of $US800 per carat.<br />
Lightbox introduced loose stone sales following an increase in<br />
consumer demand for custom design – particularly from the female<br />
self-purchase demographic.<br />
The loose lab-grown diamonds are showcased on the website<br />
alongside one-of-a-kind finished pieces – which are designed to act<br />
as an 'inspiration board' – and a list of jewellers specialising in custom<br />
design work.<br />
Steve Coe, CEO Lightbox Jewelry, said, “From the beginning, we have<br />
had enquiries from consumers who see our lab-grown diamonds –<br />
with their unbeatable price, great quality, and range of colour – as an<br />
opportunity to explore their creativity, making something that is<br />
unique to them."<br />
He added, “We are thrilled to launch this exciting new concept that<br />
offers a simple and accessible way to create fun and affordable,<br />
custom-designed lab-grown diamond fashion jewellery using our<br />
colorful array of stones.<br />
Lightbox Loose will open up a world of possibilities for a broad range<br />
of consumers to experiment with customisation, personalisation and<br />
creative design.”<br />
The stones are available in sizes up to 2 carats, round brilliant or<br />
princess cut, via the Lightbox website. However, they are currently<br />
only available to US customers – unlike the broader Lightbox range,<br />
which ships internationally, including to Australia.<br />
The announcement explained that the “concept evolved as the<br />
company saw a growing demand from customers, particularly<br />
women self-purchasers, looking for bespoke design options.<br />
"To make the process simple and approachable, Lightbox developed<br />
a seamless online purchase and referral experience. Shoppers can<br />
easily select and buy individual Lightbox lab-grown diamonds, peruse<br />
original custom designs, and browse a vetted list of established<br />
jewelers known for their custom design work.”
News<br />
Diamond organisation expands<br />
lab-grown testing program<br />
The Natural Diamond Council has announced a second laboratory and updated samples will be added to its<br />
diamond detection initiative, the Assure Program.<br />
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The Natural Diamond Council (NDC) –<br />
formerly the Diamond Producers Association<br />
– has expanded its diamond detection<br />
initiative, the Assure Program, which<br />
was first launched in 2019.<br />
The Assure Program is designed to “protect<br />
consumers and safeguard the integrity of the<br />
natural diamond supply chain” by providing<br />
third-party testing of what the NDC terms<br />
“diamond verification instruments” – that<br />
is, detectors of lab-grown diamonds and<br />
diamond simulants such as cubic zirconia.<br />
Detectors are evaluated against stringent<br />
criteria by an independent testing laboratory<br />
– UL, a “global safety certification” business<br />
headquartered in the US – allowing jewellery<br />
retailers to accurately compare devices with<br />
different manufacturers and price ranges.<br />
The NDC claimed that in just over a year, the<br />
program had tested approximately 80 per<br />
cent of the “commercially available and viable<br />
diamond verification instruments”, with a<br />
“positive welcome by the industry”.<br />
In order to broaden the scope of the program<br />
and double testing capacity, the NDC has<br />
engaged a second laboratory, located at the<br />
University of Antwerp in Belgium.<br />
Both testing facilities will use identical<br />
samples and procedures, and “work<br />
simultaneously to enhance the long-term<br />
sustainability of the Assure Program”.<br />
Notably, diamond-set jewellery will also now<br />
be included in testing. The testing samples<br />
have also been updated to “reflect goods<br />
currently circulating in the market, as well as<br />
individual stones that anticipate future trends<br />
and pose some of the greatest challenges to<br />
diamond verification instruments.”<br />
Raluca Anghel, head of external affairs<br />
and industry relations at the NDC, said,<br />
“By enhancing and improving the Assure<br />
Program we are taking even greater strides in<br />
protecting consumer confidence.<br />
“Everyone is responsible for correctly<br />
disclosing the nature of the product they are<br />
selling, but to facilitate this we need robust<br />
diamond verification instruments that are<br />
rigorously tested.<br />
"With this latest iteration of the Assure<br />
Program, manufacturers will be presented<br />
with vital information to continue improving<br />
their devices and consumers can be assured<br />
of the vigorous steps taken to ensure their<br />
confidence.”<br />
Yoram Dvash, president of the World<br />
Federation of Diamond Bourses, praised the<br />
Assure Program for “its important role in<br />
protecting consumers and enabling them to<br />
feel confident in their diamond purchases."<br />
The testing program is particularly relevant to<br />
the Indian market, where new customs export<br />
codes for lab-created and natural diamonds<br />
will come into effect on 1 January 2022.<br />
Manufacturers of detectors can now<br />
submit both new instruments and existing<br />
instruments that have already been tested<br />
– but whose AssureTested Certification is<br />
approaching the two-year expiry date – to be<br />
re-tested with the updated sample.<br />
WWW.SDKGEMSTONES.COM.AU
News<br />
Modi family member named in controversial ‘Pandora Papers’<br />
Purvi Modi, the sister of disgraced diamond and jewellery<br />
mogul Nirav Modi, has been named in the 'Pandora<br />
Papers' financial leak.<br />
The sister of disgraced former diamond and<br />
jewellery mogul Nirav Modi has been implicated<br />
in the recent ‘Pandora Papers’ document leak,<br />
which has brought to light the international<br />
financial dealings of wealthy individuals.<br />
Called the “largest investigation in journalism<br />
history”, the Pandora Papers comprise of<br />
approximately 12 million documents detailing<br />
complex company structures and off-shore<br />
banking. The documents were analysed by 150<br />
media organisations worldwide.<br />
Among them was The Indian Express, which<br />
subsequently published a report into the actions<br />
of Purvi Modi, also known as Purvi Mehta.<br />
Nirav Modi has spent more than two years in<br />
custody in the UK, facing extradition to India in<br />
relation to the $US1.8 billion ($AU2.3 billion)<br />
Punjab National Bank (PNB) fraud.<br />
The Indian Express reports that in December 2017<br />
– one month before Modi fled India – his sister set<br />
up Brookton Management Ltd, a firm registered<br />
in the British Virgin Islands, which would act as a<br />
protector for The Deposit Trust, which she formed<br />
through a company in Singapore.<br />
The British Virgin Islands has long been<br />
considered a 'tax haven'. According to The<br />
Indian Express, Purvi Modi declared the monies<br />
contained in the trust were earned from her role<br />
as creative director of her brother’s company<br />
Firestar Diamonds, which was implicated in the<br />
PNB fraud.<br />
Records analysed by The Indian Express also<br />
reportedly show Purvi Modi and another brother<br />
owned three other businesses registered in the<br />
British Virgin Islands, which India’s economic<br />
intelligence and law enforcement agency, the<br />
Enforcement Directorate (ED), claims were used<br />
by Nirav Modi to launder money, with Dubai-based<br />
subsidiaries alleged to have been used to divert<br />
$US265 million to Purvi Modi.<br />
In a statement to The Indian Express, Manavendra<br />
Mishra, a legal representative for Purvi Modi,<br />
denied wrongdoing in relation to the Pandora<br />
Papers report.<br />
Earlier this year, Purvi Modi and her husband<br />
Maiank Mehta – who are Belgian and British<br />
citizens, respectively – agreed to cooperate with<br />
the PNB fraud investigation against her brother in<br />
exchange for pardons.<br />
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News<br />
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Luxury jewellery brands join new<br />
sustainability initiative, set targets for 2030<br />
<strong>Jeweller</strong>y brand Cartier – part of the<br />
Richemont group – and luxury conglomerate<br />
Kering, the parent company of Boucheron,<br />
Pomellato, Qeelin, Ulysse Nardin and<br />
Girard-Perregaux, have launched a new<br />
sustainability project in conjunction with the<br />
Responsible <strong>Jeweller</strong>y Council (RJC).<br />
The Watch and <strong>Jeweller</strong>y Initiative 2030<br />
invites watch and jewellery businesses "with<br />
a national and international footprint" to<br />
"begin a collective journey towards a lowcarbon<br />
future" by committing to a range of<br />
objectives.<br />
Iris Van der Veken, executive director of the<br />
RJC, explained, "Business can be a force for<br />
positive change and impact by supporting<br />
a global economy that protects people, the<br />
planet and the natural systems that sustain<br />
us. Business as usual is no longer an option."<br />
Based on the United Nations Sustainable<br />
Development Goals, the initiative will focus<br />
on achieving "science-based climate targets,<br />
biodiversity protection and materials and<br />
business model innovation" to protect<br />
employees across the supply chain.<br />
Cyrille Vigneron, president and CEO of<br />
Cartier, said, “As the watch and jewellery<br />
sector relies on the Earth’s precious<br />
resources and people’s know-how around<br />
the world within its value chains, the<br />
imperative to act together in creating a more<br />
positive impact has become ever clearer.<br />
"We are thrilled to join efforts towards a more<br />
sustainable industry... and to invite other<br />
industry actors to join this initiative."<br />
Jean-François Palus, group managing<br />
director of Kering , added, “We believe<br />
that luxury is inseparable from the highest<br />
environmental and social standards, and<br />
that it is our responsibility, as leading luxury<br />
players, to initiate the changes that are<br />
needed to protect our planet... Only collective<br />
action can make the difference to transform<br />
our industry for the better."<br />
The initiative will produce regular reports and<br />
comply with government regulations.<br />
IIJS announces dates and venue for 2022 show<br />
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One of the world’s leading jewellery fairs,<br />
the India International <strong>Jeweller</strong>y Show<br />
(IIJS), is moving location. The first event to<br />
take place at the new JIO World Convention<br />
Centre in Mumbai will be IIJS Signature.<br />
Organised by the Gem & <strong>Jeweller</strong>y Export<br />
Promotion Council (GJEPC), IIJS has<br />
two the editions each year; Signature is<br />
traditionally held at the beginning of the<br />
year while the larger event, Premier, is<br />
usually held around August–September.<br />
With state-of-the-art facilities and located<br />
in the heart of the city, across the street<br />
from the Bharat Diamond Bourse, the<br />
JWCC will offer a new experience for<br />
exhibitors and visitors.<br />
JIO World Convention Centre (JWCC) is a<br />
new world-class centre situated adjacent to<br />
Mumbai’s famous 20-acre Bharat Diamond<br />
Bourse complex which houses 26 towers of<br />
nine floors each.<br />
Apart from hosting international exhibitions<br />
and conventions JWCC will also feature a<br />
shopping centre, office space, hotels, and<br />
a theatre. Among the convention centre’s<br />
amenities are a 5,000 car parking facility,<br />
in-house food and beverage facility, and<br />
fibre-enabled data services.<br />
IIJS Signature will run from 6–9 January<br />
2022 and according to the GJEPC will<br />
feature 1400 stalls, across two pillarless<br />
halls over two floors - Jasmine Hall and the<br />
Pavilion Hall spanning 10,000 and 15,000<br />
square metres respectively.<br />
The GJEPC’s national exhibition convener,<br />
Shailesh Sangani, said, “We are happy to<br />
announce the 14th edition of IIJS Signature<br />
to be held at JIO World Convention Centre.<br />
This is the best exhibition space in the<br />
entire country, and we’re thrilled that IIJS<br />
Signature will go down in history as a debut<br />
event of JWCC, a future landmark of the<br />
financial capital of India, Mumbai”.<br />
“GJEPC will follow all governmentmandated<br />
Covid-19 protocols to ensure the<br />
safety of all concerned. All attendees will<br />
be mandated to comply with covid safety<br />
protocols as per the State government<br />
norms,” the media release explained.<br />
“Entry is open only for visitors with at least<br />
one vaccine dose along with a negative<br />
RT-PCR report done at least 48 hours prior<br />
to their first entry at the show. Double<br />
vaccinated attendees are not required to<br />
submit an RT-PCR report.”
News<br />
Recovery in diamond market as Alrosa, De Beers record positive results<br />
Alrosa’s annual diamond investment market report<br />
states that the diamond market has "fully recovered<br />
from the pandemic".<br />
Two of the world’s leading miners have<br />
reported increased demand for rough<br />
diamonds.<br />
De Beers has reported its rough diamond<br />
production increased by 28 per cent to 9.2<br />
million carats. The company issued its latest<br />
results saying: “Demand for rough diamonds<br />
continued to be robust, with positive midstream<br />
sentiment reflecting strong demand for<br />
polished diamond jewellery, particularly in the<br />
key markets of the US and China.”<br />
Meanwhile, Alrosa’s annual diamond<br />
investment market report states that the<br />
diamond market has "fully recovered from the<br />
pandemic", with jewellery sales increasing<br />
sharply. The report stated that jewellery sales<br />
are forecast to exceed $US90 billion in <strong>2021</strong> –<br />
a 23 per cent year-on-year increase.<br />
Demand from Alrosa’s two largest jewellery<br />
markets, US and China, increased by 50 per<br />
cent and 10 per cent respectively, compared<br />
with the 2019 pre-covid pandemic levels.<br />
Proceeds from De Beer’s eighth sale of the<br />
year — including the September sight — rose<br />
5 per cent year-on-year to $US490 million,<br />
up from $US467 million in the equivalent<br />
period of 2020.<br />
De Beers CEO Bruce Cleaver said: “As the<br />
diamond sector prepares for the key holiday<br />
season and US consumer demand for diamond<br />
jewellery continues to perform strongly, we saw<br />
further robust demand for rough diamonds in<br />
the eighth sales cycle of the year.”<br />
Production from most De Beers mines was<br />
positive with Botswana’s production increasing<br />
by 33 per cent to 6.4 million carats while<br />
Namibia result was a 65 per cent increase to<br />
0.4 million carats. South Africa production<br />
increased by 34 per cent to 1.6 million carats<br />
however, Canada’s results was a decrease by<br />
13 per cent to 0.8 million carats, due to lower<br />
grade ore being processed.<br />
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News<br />
Tissot launches new hybrid watch; new era for Swatch Group?<br />
Swiss watch manufacturer Tissot – part of the<br />
Swatch Group – has launched a new hybrid sports<br />
watch, the T-Touch Connect Solar, which is an<br />
upgraded version of the original T-Touch Solar<br />
released in 2014.<br />
Scott Jungwirth, general manager of Tissot<br />
Australia and New Zealand, said, "The T-Touch<br />
Connect Solar comes at a time where interest in<br />
fitness-related functions is growing, while still<br />
paying homage to Tissot’s roots in luxury fashion.<br />
"With a contemporary and sporty design the<br />
watch has impressive presence on the wrist and<br />
provides the perfect accessory for lovers of sport,<br />
leisure and style," he added.<br />
Hybrid watches combine many of the functions<br />
of smartwatches – including step counters,<br />
navigation, and weather – with the design of a<br />
traditional mechanical watch.<br />
According to data from Mordor Intelligence, the<br />
hybrid watch market is predicted to increase by<br />
14.5 per cent between 2020 and 2025, equal<br />
to smartwatches.<br />
Swatch Group's history with the smartwatch/<br />
hybrid category is somewhat chequered; CEO<br />
Nicolas Hayek once described the Apple Watch as<br />
"an interesting toy, but not a revolution".<br />
The group announced it was working on a<br />
proprietary operating system – then known as<br />
'Swiss OS' – in 2017 and the first hybrids bearing<br />
this system were expected to launch in 2018.<br />
However, the project was delayed indefinitely.<br />
According to a Tissot statement, Swatch Group<br />
invested CHF30 million to develop the operating<br />
system, now named swALPS, which is present in<br />
the T-Touch Connect Solar. Notably, swALPS does<br />
not rely on software from Google or Apple, though<br />
it is compatible with both iPhone and Android.<br />
A Tissot statement emphasised the privacy<br />
advantage: "Its exclusive, proprietary operating<br />
system means that your data is securely stored<br />
on servers that ensure your privacy. The watch, its<br />
applications, and any paired smartphones cannot<br />
send data to third parties."<br />
Tissot is stocked at Angus & Coote stores and<br />
independent chains Salera's, Mazzucchelli's, and<br />
Gregory <strong>Jeweller</strong>s, among others.<br />
AFL player Marcus Bontempelli is one of three athletes<br />
in Tissot's campaign for the T-Touch Connect Solar,<br />
alongside rugby league's Ryan Papenhuyzen and<br />
basketball star-turned-commentator Corey Williams.<br />
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A selection of stock available in Australia for purchase / consignment | Oct <strong>2021</strong><br />
Shape CT Col Cla Cut Pol Sym Fl Cert T.Price<br />
Round 0.71 E SI1 ID EX EX N IGI $ 767<br />
Round 1.01 D VS2 ID EX EX N IGI $ 2,063<br />
Round 1.54 D VS2 EX EX EX N GIA $ 4,609<br />
Round 2.02 F SI1 ID EX EX N IGI $ 5,618<br />
Round 3.63 F VS1 ID EX EX N IGI $ 18,335<br />
Oval 1.63 F VS2 - EX EX N GIA $ 4,390<br />
Oval 5.01 F VS1 - VG VG N IGI $ 36,951<br />
Marquise 1.04 G SI2 - VG VG N GCAL $ 1,531<br />
Pear 1.31 G VS2 - VG VG N IGI $ 2,070<br />
Emerald 1.89 E VVS2 - EX EX N IGI $ 5,826<br />
Princess 1.93 H VS2 - EX EX N IGI $ 3,999<br />
Radiant 2.20 F VS2 - EX EX N IGI $ 7,036<br />
* Price in Australian dollars exclusive of GST | *Price may vary depending on AUD /USD exchange rate<br />
GROWNDIAMONDS.COM.AU<br />
contact@growndiamonds.com.au | Level 11, Suite 1102, 227 Collins Street, Melbourne VIC 3000 | 1800 849 291
News<br />
LVMH watches and jewellery division<br />
profits buoyed by Tiffany & Co.<br />
€2.14 billion ($A3.3 billion), according to the<br />
company's most recent financial report.<br />
Sales rose 90 per cent when compared with<br />
the same period in 2019; pre-pandemic;<br />
however, this figure does not include sales<br />
from Tiffany, & Co. which was acquired in<br />
January this year.<br />
Excluding Tiffany’ & Co., sales increased by 1<br />
per cent when compared with 2019.<br />
Tiffany & Co.'s "remarkable performance" has<br />
lifted the LVMH watch and jewellery division. Image<br />
credit: Mason Poole/Tiffany & Co.<br />
The watches and jewellery division of French<br />
luxury conglomerate Louis Vuitton Moët<br />
Hennessy (LVMH) saw sales surge in the third<br />
quarter of <strong>2021</strong>, driven by strong results from<br />
newly-acquired Tiffany & Co.<br />
In the three months to 30 September <strong>2021</strong>,<br />
revenues for the division – which includes<br />
jewellery brands Bulgari, Chaumet, and<br />
Fred, and watch manufacturers TAG Heuer,<br />
Zenith, and Hublot, in addition to Tiffany &<br />
Co. – increased by 125 per cent, reaching<br />
For the first nine months of the year, jewellery<br />
and watch revenue rose 172 per cent and<br />
sales increased 89 per cent compared with<br />
2019. Excluding Tiffany & Co., that figure was<br />
4 per cent.<br />
While LVMH does not reveal individual<br />
financial results for its businesses, the<br />
company did note in a statement, "Driven by<br />
the growing success of its iconic products,<br />
Tiffany enjoyed a remarkable performance,<br />
particularly in its major market, the US."<br />
Since taking control of Tiffany & Co., LVMH<br />
has pursued several high-profile marketing<br />
initiatives, including launching an international<br />
campaign with A-list performers Beyoncé and<br />
Jay-Z in September.<br />
FV <strong>Jeweller</strong>y<br />
The most unique offering of<br />
pearls across Australasia.<br />
Swiss watch exports exceed expectations<br />
Recent statistics released by the<br />
Federation of the Swiss Watch Industry<br />
(FH) shows that watch exports continued<br />
to increase in September reaching CHF1.9<br />
billion ($AU2.7 billion). According to FH,<br />
this result followed “a steady month in<br />
August” and “exceeded the result achieved<br />
in September 2019 by 3.1 per cent.”<br />
The US and China were the major markets<br />
contributing to the rise with the former<br />
achieving a 28.5 per cent increase over the<br />
2019 figure while China accounted for an<br />
increase of 45 per cent.<br />
A number of markets experienced large<br />
declines such as Hong Kong (-20 per cent)<br />
Japan (-21 per cent).<br />
The Swiss trade association, which is<br />
headquartered in Bienne, emphasised that<br />
the industry was still suffering from the<br />
global COVID-19 pandemic.<br />
“The third quarter was again marked<br />
by an unusual base effect, insofar as<br />
the corresponding period in 2020 was<br />
still affected by the consequences of the<br />
pandemic, against which exports fell by<br />
13.1 per cent. A comparison with prepandemic<br />
levels is therefore still justified,”<br />
the report stated.<br />
Interestingly, exports for cheaper watch<br />
models – less than CHF 500 export price –<br />
saw a dramatic decline, both in value and<br />
by number of items, falling 24 per cent.<br />
However, timepieces ranging between<br />
CHF500–3,000 ($AU725–$AU4,400)<br />
increased by more than seven per cent<br />
and models above CHF3,000 rose by six<br />
per cent.<br />
The reports stated: “Growth was driven<br />
by precious metal and steel watches,<br />
and by the ‘other metals’ category, while<br />
bimetallic (two-tone) watches declined.<br />
The number of items fell by almost<br />
300,000 units compared with September<br />
2019, influenced mainly by the steel and<br />
‘other metals’ categories.<br />
Overall, total exports for the first nine<br />
months of the year tracked to those for<br />
the same period of 2019, up 1 per cent to<br />
CHF16.08 billion ($AU233 billion).<br />
NEW SEASON<br />
www.fvjewellery.com
On The Market<br />
1 2 3<br />
4<br />
5<br />
NOVEMBER<br />
Product<br />
Spotlight<br />
<strong>Jeweller</strong>’s monthly compiled<br />
snapshot of the latest and greatest<br />
products to hit the market.<br />
6 7<br />
8<br />
1 NAVNEET GEMS & MINERALS Beautiful sapphires are in the spotlight. With a fascinating combination of serene blues and mysterious greens, they make for perfect gemstones for the creative jeweller.<br />
2 THOMAS SABO | Duraflex Group Australia From padlocks and keys to slender column tags and hearts, Thomas Sabo's sterling silver personalisable range showcases symbols of affinity to industrial<br />
style. 3 CHIARA FERRAGNI | West End Collection Chiara Ferragni's rose crystal gold watch, from its Everyday collection, features a pink rose crystal bezel with a 34mm champagne dial with an all gold PVD<br />
metal bracelet. 4 PATERSON FINE JEWELLERY Available in all letters of the alphabet, these 9-carat gold Initial diamond-set pendants are 10mm in diameter. 5 EFVA ATTLING STOCKHOLM | Nordic Fusion<br />
Available at Nordic Fusion in solid 18-carat yellow or white gold, these Bend Over Rings are set with emerald cut gemstones with diamonds ‘bent over’ the top facet. 6 ROSEFIELD | Designa Accessories<br />
This iconic Rosefield watch is the latest evolution of The Octagon collection, and features Swarovski crystals, paired back with a polished gold bracelet for an elevated look. 7 STONES & SILVER This new<br />
collection of stackable sterling silver rings showcase the beautiful pink and green hues of the chameleon-like gemstone tourmaline. 8 IKECHO Ikecho's Edison ring features a 9mm freshwater pearl set<br />
into 9-carat yellow gold.
Available at Pandora Concept Stores, Participating Stockists and Pandora.net
10 Years Ago<br />
Time Machine: <strong>November</strong> 2011<br />
A snapshot of the industry events making headlines this time 10 years ago in <strong>Jeweller</strong>.<br />
Historic Headlines<br />
4 New security system for Angus & Coote<br />
4 Record-breaking blue diamond sold<br />
4 Sydney jeweller wins international award<br />
4 New website for the Young <strong>Jeweller</strong>s Group<br />
4 Leading Edge gives members online presence<br />
New laws to affect jewellers<br />
The proposed commencement date for the new<br />
Personal Property Security (PPS) legislation –<br />
which replace the existing Retention of Title (ROT)<br />
laws – has been delayed until 1 February 2012.<br />
As previously reported by <strong>Jeweller</strong>, existing ROT<br />
laws concern the protection of unpaid-for stock<br />
sent to stores on consignment. Many suppliers<br />
have ROT clauses built into credit agreements and<br />
invoices, allowing them to retain the title on goods<br />
not yet paid for.<br />
Once implemented, the new laws will force<br />
jewellery suppliers to register security interest on<br />
the PPS website if they wish to preserve title over<br />
stock supplied on consignment.<br />
This is the second time the revised legislation has<br />
been postponed, with its start date slated for 1 May<br />
and then 31 October this year.<br />
New suppliers enter market<br />
The difficult economic climate has not stopped<br />
suppliers entering the Australian and New<br />
Zealand watch and jewellery markets.<br />
Two new entrants include Amakris <strong>Jeweller</strong>y<br />
and Lion Brands. New Zealand-based Amakris<br />
<strong>Jeweller</strong>y recently launched its first range of Holly<br />
Yashi jewellery at this year's Sydney fair and the<br />
company believes the niobium-crafted pieces will<br />
perform well in Australia.<br />
Meanwhile, Luminox Watches, previously<br />
distributed by the now-defunct Swiss Patience,<br />
is to be relaunched in Australia by newly-formed<br />
Lion Brands.<br />
Managing director Graeme Goldman was formerly<br />
the managing director of The Swatch Group. He<br />
and business partner Anthony Hoffman will also<br />
distribute Glycine and Edox watches.<br />
<strong>November</strong> 2011<br />
ON THE COVER Guess Watches<br />
Editor’s Desk<br />
4Make A (<strong>Jeweller</strong>y )Pilgrimage:“Just as<br />
the international jewellery industry has<br />
evolved, so too have the international<br />
trade fairs, adapting to the shifting<br />
needs of jewellery buyers.<br />
"While the Italian fairs are clearly in the<br />
doldrums, the same cannot be said of<br />
the Swiss' Baselworld, which continues<br />
to go from strength to strength. Indeed,<br />
the organiser is undertaking a massive<br />
renovation of the venue to ensure<br />
Baselworld remains #1."<br />
Soapbox<br />
4The Future of a Traditional<br />
Apprenticeship: “As apprentice<br />
numbers drop, there isn't much<br />
motivation for young people to<br />
undertake a jewellery apprenticeship.<br />
The low award rate is not incentive<br />
enough, which means that young<br />
people can be deterred from pursuing<br />
a career in jewellery.<br />
"Any apprentice-based training<br />
program needs to keep up with<br />
technological advances and the<br />
demands of the modern jeweller."<br />
– Ewen Ryley, jeweller,<br />
Stephen Dibb <strong>Jeweller</strong>y<br />
STILL RELEVANT 10 YEARS ON<br />
It's All White Now:<br />
For a long time now, Australian jewellers<br />
have noticed a growing demand for<br />
white metals – stainless steel, silver,<br />
white gold, platinum and increasingly,<br />
titanium and palladium. White metals are<br />
seen as modern, clean, easy to work and<br />
more avant-garde than traditional yellow<br />
gold, especially among younger buyers.<br />
Economics are also shifting in favour of<br />
white metals.<br />
Retailers pressure landlords<br />
over rent<br />
A number of large retailers are urging shopping<br />
centre landlords to reduce rent.<br />
Following the announcement in September of a<br />
fall in profits, Premier Investments – the retail<br />
powerhouse behind fashion clothing brands<br />
including Just Jeans and Jay Jays – threatened<br />
to close as many as 50 stores if shopping<br />
centre landlords don't come to the party on<br />
rent reviews.<br />
Some mid-sizes jewellery chains have already<br />
acted and Wallace Bishop chief financial officer<br />
Ian Winterburn believes that the tables have<br />
already turned for some jewellers.<br />
Innovative new promotion<br />
for engagement rings<br />
<strong>Jeweller</strong>y retailers and their engagement ring<br />
customers can participate in an innovative<br />
new promotion, which calls for customers to<br />
describe their most romantic proposal via the<br />
website mostromanticproposal.com.au.<br />
Graham Chapman, director of Eighth Avenue<br />
Marketing, has secured the assistance of<br />
the JAA and Tahiti Tourism, with the couple<br />
crowned as having the most romantic proposal<br />
winning a holiday to Tahiti valued at $20,000.<br />
To enter, JAA member jewellers must apply on<br />
the website and agree to certain payments and<br />
conditions. Participating jewellers can then<br />
select a winner from their store's customer<br />
submissions, with the overall winner selected<br />
from this pool.<br />
READ ALL HEADLINES IN FULL ON<br />
JEWELLERMAGAZINE.COM<br />
26 | <strong>November</strong> <strong>2021</strong>
INSIDE<br />
Now & Then<br />
Hammerton’s <strong>Jeweller</strong>s<br />
Celebrating 142 Years • MILDURA, VIC • A moment with Ryan Hammerton, director<br />
MILESTONES<br />
L to R: The Hammerton's <strong>Jeweller</strong>s store on Eight Street, Mildura, circa 1925; an historic photo of founder<br />
John Hammerton, taken in 1884, which won a photography prize in London in 1885.<br />
Our retail business first commenced in<br />
1879 at 173 Little Ryrie Street, Geelong,<br />
opened by my great-great grandfather,<br />
John Hammerton.<br />
John and his son Horace were highlyregarded<br />
silversmiths, jewellers, and<br />
engravers, with many of their pieces now<br />
housed in museum collections in Melbourne.<br />
The two most prominent items are the<br />
Geelong Mayoral Chain and a solid 15-carat<br />
gold paperweight that was presented to<br />
Dame Nellie Melba in 1922.<br />
The piece was considered to have enormous<br />
significance and was purchased by<br />
Museums Victoria, with the assistance of<br />
the Sunshine Foundation and the Australian<br />
Government’s National Cultural Heritage<br />
Account, for a staggering $130,000.<br />
The relocation from Geelong to Mildura in<br />
1916 is the most substantial change our<br />
business has undertaken in its history.<br />
Horace’s son, Horace Geoffrey ‘Geoff’<br />
Hammerton, took the helm in 1933, and<br />
trained in bench jewellery, engraving,<br />
watchmaking and also as an optician.<br />
Geoff was deployed during World War II<br />
and spent six years away from the store,<br />
helping to develop anti-aircraft equipment.<br />
His wife Florence took over management<br />
during the war and continued working in the<br />
business for decades to come.<br />
Ian, Geoff’s second-eldest son, joined<br />
the business in 1968 as an apprentice<br />
watchmaker. The tiny Eighth Street store<br />
was a beehive of activity, with up to 10 staff!<br />
I joined the business after a few years<br />
pursuing a career with Hewlett Packard, but<br />
ultimately chose to return to our regional<br />
town. My wife Clare and I purchased the<br />
business from my parents in 2007 and set<br />
about refurbishing the store.<br />
Despite our successes, we haven’t pursued<br />
much in the way of expansion outside of<br />
the region. The township is geographically<br />
isolated – 400km from the next-largest<br />
town/city – which doesn’t allow for easy<br />
expansion into other areas.<br />
We purchased one of our competitors’<br />
stores, Etheringtons The <strong>Jeweller</strong>s – which<br />
was established in 1932 – as an opportunity<br />
to differentiate our retail offer in the region.<br />
The depth of range in jewellery in the<br />
modern era was too much for our original<br />
50sqm store and rather than increase the<br />
store size, the ability to present two store<br />
options proved to be a better outcome.<br />
Five years ago, we were also fortunate<br />
enough to acquire a substantial 500sqm<br />
double-storey building next to our Langtree<br />
Mall business, which was built by the former<br />
retailer Thomas <strong>Jeweller</strong>s.<br />
The building design was intended for a<br />
‘cash-and-carry’ approach with over 200sqm<br />
of storage; we have slowly modified it to<br />
better suit our requirements and these areas<br />
will be repurposed as we look to expand our<br />
range of services.<br />
Although I’ve only been involved in the<br />
business for around 20 years, we’ve already<br />
seen a ridiculous number of financial crises,<br />
huge spikes in material costs, aggressive<br />
alternate sales channels, and competitors<br />
entering the market.<br />
In an era where the global pandemic has<br />
1879<br />
John Hammerton<br />
opens jewellery store<br />
Hammerton & Son<br />
on Little Ryrie Street,<br />
Geelong<br />
1916<br />
John’s son, Horace<br />
Hammerton, opens a<br />
second store named<br />
Hammerton’s <strong>Jeweller</strong>s<br />
on Eighth Street, Mildura,<br />
which incorporates<br />
optical services<br />
1933<br />
Horace’s son, Horace<br />
Geoffrey ‘Geoff’<br />
Hammerton, joins the<br />
business and trains in<br />
each discipline.<br />
1939<br />
Geoff is deployed to fight<br />
in World War II; Florence,<br />
Geoff’s wife, runs the<br />
business for six years<br />
1968<br />
Geoff’s son Ian joins the<br />
business as an apprentice<br />
watchmaker<br />
1986<br />
Ian opens a second<br />
location on Lime Avenue,<br />
Mildura<br />
1992<br />
The second Mildura<br />
store is migrated to the<br />
Langtree Mall<br />
2003<br />
Ian’s son Ryan joins<br />
the business<br />
2007<br />
Ryan and his wife Clare<br />
purchase the business<br />
from Ian<br />
2008<br />
Ryan closes the original<br />
1916 site and extensively<br />
renovates the Langtree<br />
Mall location<br />
2010<br />
Hammerton’s <strong>Jeweller</strong>s<br />
acquires competitor<br />
Etheringtons The<br />
<strong>Jeweller</strong>s, located on<br />
Deakin Avenue, Mildura<br />
2016<br />
The Hammerton’s<br />
<strong>Jeweller</strong>s store is<br />
migrated into the newlyacquired<br />
former Thomas<br />
<strong>Jeweller</strong>s site on Langtree<br />
Mall<br />
Above: Horace and Lillian Hammerton, the<br />
second generation to take over the business.<br />
rocked everyone’s businesses, being<br />
custodian to a 142-year-old business<br />
gives you some clarity over the challenges<br />
that predecessors endured in the past.<br />
Remaining somewhat conservative in your<br />
approach to growth, adhering to better<br />
quality, and maintaining your relationships<br />
with customers and suppliers are critical<br />
aspects to ensure consistency.<br />
It’s an interesting thing to manage a<br />
business that has operated through<br />
five generations.<br />
Each generation has been very different<br />
to the next; we’ve slowly moved from very<br />
traditional bench jewellery through to<br />
focusing on more modern manufacturing<br />
techniques with global capabilities.<br />
It does have the feeling of a family legacy<br />
that’s inescapable – for me, earning<br />
degrees in computer science and<br />
business, and a fledgling career in the<br />
world of IT, wasn’t enough to escape the<br />
pull of something very familiar!<br />
With a rapidly changing landscape I don’t<br />
have an expectation that my children will<br />
follow me into the business.<br />
Like many family business owners, I think<br />
I’ll be averse to relinquishing control,<br />
which will provide them with the freedom<br />
to look into other career paths!<br />
Whether they can secure something as<br />
enjoyable as our industry – or return with<br />
a view to taking over the stores – will<br />
determine the longevity of our business.<br />
Read the full length interview<br />
on <strong>Jeweller</strong>magazine.com<br />
28 | <strong>November</strong> <strong>2021</strong>
Supplying Australia Since 1974
INSIDE<br />
My Store<br />
FinerRings<br />
MELBOURNE, VIC with Taiba Ash, owner • SPACE COMPLETED 2018<br />
4Who is the target market and how did they<br />
influence the store design?<br />
FinerRings' target market extends to a wide range<br />
of women aged in their early teens all the way to<br />
the older crowd. Our mantra is creating quality,<br />
affordable jewellery for women of any age.<br />
While our store originally started as a temporary<br />
lease, we are still here three years later! It is<br />
a place for people to come shopping, get to<br />
know our brand and understand what FinerRings<br />
is all about.<br />
Our fresh and fun store space is inspired by<br />
the on-trend and timeless, stylish jewellery we<br />
create. This enticing space is appealing to all our<br />
customers – they are greeted with a smile and a<br />
world of design possibilities.<br />
4With the relationship between store<br />
ambience and consumer purchasing in mind,<br />
which features in the store encourage sales?<br />
The warm and bright interior is a relaxing and fun<br />
space for our customers to shop.<br />
The open store design allows customers to peruse<br />
our pieces or get involved in our design process.<br />
Our pieces are customisable, allowing customers<br />
to select exactly what they want in their jewellery.<br />
We pride ourselves on creating quality jewellery<br />
and our customers can enjoy the interactive<br />
experience right before their eyes. Our staff<br />
handmake beautiful pieces, tailored to the<br />
requests of our customers, and this aspect of<br />
FinerRings sets our brand apart from others.<br />
4What is the store design’s ‘wow factor’?<br />
Our store is a bright and welcoming space; the<br />
jewellery is displayed on crisp pieces of marble<br />
that hang on our floor-to-ceiling shelves.<br />
The gorgeous arch windows let in an abundance<br />
of afternoon sunlight, creating a warm and<br />
inviting space for customers.<br />
Our friendly staff will assist our customers on<br />
style tips and adding that special touch in every<br />
piece of jewellery, made with love and care.<br />
30 | <strong>November</strong> <strong>2021</strong>
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Completing my Diploma in<br />
Gemmology has benefited<br />
me as a jeweller in more<br />
ways than I ever expected.<br />
I have always had an interest<br />
in gemstones and found<br />
the course was not only<br />
informative and challenging<br />
but immensely rewarding.<br />
Studying with the GAA has also<br />
allowed me to meet like-minded<br />
people from many facets of the<br />
jewellery industry and grants me access<br />
to resources that I will continue to use<br />
throughout my professional career.<br />
Emma Meakes FGAA<br />
<strong>Jeweller</strong>, John Miller Design - WA<br />
Diploma in<br />
Gemmology<br />
Enrolments now open<br />
For more information<br />
1300 436 338<br />
learn@gem.org.au<br />
www.gem.org.au<br />
Be<br />
Brilliant<br />
Gem-Ed Australia<br />
ADELAIDE BRISBANE HOBART MELBOURNE PERTH SYDNEY<br />
Passionately educating the industry, gem enthusiasts<br />
and consumers about gemstones
REVIEW<br />
Gems<br />
Unusual Opals Part III: Ethiopian Opal<br />
L to R: Kimberly McDonald earrings;<br />
Boucheron necklace; Chaumet<br />
bracelet Below: Cartier necklace;<br />
Ornella Ianuzzi ring<br />
While Australia remains the world's<br />
premier supplier of opal – accounting for<br />
approximately 90 per cent of the opal on<br />
the market – significant opal deposits were<br />
discovered in Ethiopia in 1994, 2008 and 2013.<br />
The first discovery was in the Menz Gishe<br />
District of Shewa Province.<br />
Opal from this area occurs in a wide range<br />
of body colours, including brown, red,<br />
orange, yellow, and white. Often marketed<br />
as 'Shewa opal' or 'Mezezo opal', these<br />
opals form in stratified igneous rocks such<br />
as rhyolite, tuff, and ignimbrite.<br />
However, perhaps the most important<br />
Ethiopian opal discovery occurred in 2008,<br />
with a deposit of hydrophane material<br />
located near the town of Wegel Tena in<br />
Wollo Province.<br />
The find consisted of a single seam of<br />
opal, less than 1m thick, sitting within<br />
a rocky cliff overlooking a canyon – an<br />
example of the terrain miners must<br />
navigate to retrieve these gemstones. To<br />
make things even trickier, mining is often<br />
carried out with simple hand tools and<br />
limited safety considerations.<br />
This opal is often known as 'Welo opal'<br />
or simply 'Ethiopian opal'. This region<br />
produces hydrophane opal that is usually<br />
opaque to translucent in white, brown,<br />
orange, and colourless body-colours.<br />
Specimens are also known to display strong<br />
play-of-colour in some specimens and be<br />
similar looking to non-hydrophane material<br />
from Brazil and Australia.<br />
A notable feature of these Ethiopian opals<br />
is the digit pattern – a captivating pattern<br />
across the gem of rounded columns said to<br />
resemble fingers.<br />
The pattern is so well known, it is thought<br />
of as an identifying, though inconclusive,<br />
feature of Ethiopian material. Other<br />
hydrophane producing areas include<br />
Indonesia and the Virgin Valley opal<br />
field in the US.<br />
Like all opal, hydrophane opal is hydrated<br />
silica – but with a unique characteristic, a<br />
level of porosity allowing water and other<br />
liquids to seep in and change the colour and<br />
even the weight of the gemstone.<br />
The absorption by hydrophane opal is<br />
considerable and must be accounted for<br />
when handling and storing.<br />
Common sense would tell us that<br />
material capable of absorbing liquid and<br />
changing so easily should be treated with<br />
caution. The issue here is the fact that<br />
hydrophane is often not disclosed at the<br />
time of transaction.<br />
Given the tendency to change appearance<br />
when immersed, avoid ultrasonic and<br />
steam cleaning of this opal variety – wipe<br />
over with a soft cloth instead.<br />
Other precautions include avoiding<br />
perfumes, hairspray, oils, cleaning agents,<br />
and any other liquids. Much like pearls, the<br />
best rule of thumb is to put hydrophane opal<br />
jewellery on last and take it off first.<br />
To test the presence of this feature in an<br />
opal, bring the opal in contact with a single<br />
Ethiopian Opal<br />
From the country in<br />
which it is found<br />
Colour: Multiple<br />
Found in: Ethiopia<br />
Mohs Hardness: 5–6.5<br />
Class: Silicate<br />
Lustre: Subvitreous<br />
Formula: SiO 2<br />
.nH 2<br />
O<br />
drop of water while observing it with a hand<br />
lens. Watch how the water interacts with<br />
the gemstone, before testing the refractive<br />
index of the area.<br />
Be patient with the test; you may need<br />
to wait four to five minutes or so to see<br />
the result. This characteristic absorption<br />
property makes them susceptible to being<br />
treated with dyes to change the body colour.<br />
Gemmologists and buyers should be<br />
cautious of treatment in hydrophane opal,<br />
particularly in gemstones with naturallooking<br />
body-colours other than white.<br />
Treated gemstones have been documented<br />
in all kinds of colours, including purple.<br />
A primitive and effective form of treatment<br />
documented is smoke treatment,<br />
commonly applied to hydrophane<br />
specimens in more recent times.<br />
By wrapping gemstones in material such as<br />
newspaper or bark, followed by aluminium<br />
foil, and placing them into a burning fire,<br />
the material is carbonised and produces<br />
a dark body-colour throughout the stone,<br />
resembling valuable black opal.<br />
Mikaelah Egan FGAA Dip DT<br />
began her career in the industry at<br />
Diamonds of Distinction in 2015. She now<br />
balances her role as a gemmologist at<br />
Vault Valuations in Brisbane with studying<br />
geology at the University of Queensland.<br />
Visit instagram.com/mikaelah.egan<br />
For more information on gems and<br />
gemmology ,go to www.gem.org.au<br />
<strong>November</strong> <strong>2021</strong> | 33
FEATURE<br />
Diamond Industry Update<br />
PIPELINE REVIEW<br />
PANDEMIC:<br />
Blessing in disguise<br />
for the industry?<br />
Diamond industry analysts PRANAY NARVEKAR and<br />
CHAIM EVEN ZOHAR share their insights into the ‘pipeline’<br />
from mine to market over 2020 and <strong>2021</strong>.
FEATURE | Diamond Industry Update<br />
Twenty-twenty always had a nice ring to it,<br />
and in the runup to it, many entities, both<br />
companies and international bodies drew up<br />
their vision statements. However, 2020 turned out to<br />
be quite the contrary and will be remembered for a<br />
long time for all the wrong reasons.<br />
by PRANAY NARVEKAR &<br />
CHAIM EVEN ZOHAR<br />
The COVID-19 pandemic and the resulting actions taken to<br />
tackle the same had an indelible impact on the way we live<br />
and work, while proving to be a shock to the entire global<br />
financial and economic system.<br />
The world economy as well as the diamond pipeline faced a<br />
sudden stop around March 2020, as the COVID-19 infections<br />
spread, and governments-imposed lockdowns of various<br />
types. However, the recovery seemed to be equally quick<br />
at least for the industry, though not simultaneously in all<br />
geographies.<br />
In most retail markets, sales seemed to match those of the<br />
previous year within about four to six months, and in some<br />
cases continued to grow from strength to strength. In the<br />
mining areas, COVID challenges impacted production and<br />
distribution, causing additional pipeline incongruities.<br />
It is instructive to take a quick look at how the US retail sales<br />
for the industry rebounded. The US accounts for half of the<br />
industry sales and the retail market bounced back quickly<br />
and continued its stellar performance even into <strong>2021</strong>.<br />
The one thing that didn’t bounce in the US were the 169<br />
million stimulus checks, totalling $US395 billion, which<br />
the Internal Revenue Service has sent out to US taxpayers<br />
whether they needed it or not.<br />
The new Biden Administration passed already the American<br />
Rescue Plan Act of <strong>2021</strong>, providing $US1.9 trillion in funding,<br />
program changes and tax policies to help mitigate the<br />
effects of the pandemic, which means that the bonanza in<br />
the US retail markets will solidly continue throughout the<br />
current year, irrespective of any COVID-variant.<br />
While most analysis looks at this from a year-on-year<br />
percentage perspective, it is instructive to view these sales<br />
from a longer-term view, as given the low base in 2020, some<br />
of the year-on-year percentages might look extremely high.<br />
K E Y STATS<br />
Pandemic and<br />
the Pipeline<br />
$20–21bn<br />
polished diamond<br />
sales, in US Dollars,<br />
for <strong>2021</strong><br />
$150bn<br />
personal<br />
consumption of<br />
jewellery and<br />
watches, US<br />
consumers, <strong>2021</strong><br />
41%<br />
increase in midstream<br />
(polished)<br />
sales, in dollar terms,<br />
for <strong>2021</strong> compared to<br />
2020<br />
59%<br />
proportion of<br />
overall rough<br />
diamond sales,<br />
in dollar terms,<br />
attributable to<br />
De Beers and Alrosa<br />
The US Bureau of Economic Affairs provides seasonally<br />
adjusted consumption expenditures for jewellery and<br />
indexing the same to December 2017 illustrates just how<br />
massive this jump in consumption is for the industry (see<br />
Chart A over page).<br />
This kind of jump in retail demand is quite frankly<br />
unprecedented! It pains to admit that COVID-19 turned<br />
out to be a blessing in disguise for the diamond business<br />
because nothing is worth the human suffering that the<br />
pandemic has brought.<br />
We are also careful not to talk, as is very popular at the<br />
moment, about the ‘new normal’. Nothing is normal at the<br />
moment – and analysts are making fortunes conjecturing<br />
how the world’s economy and businesses will evolve.<br />
We are also careful not to talk, as is<br />
very popular at the moment, about<br />
the ‘new normal’. Nothing is normal<br />
at the moment – and analysts are<br />
making fortunes conjecturing<br />
how the world’s economy and<br />
businesses will evolve. ”<br />
We are not joining these prophets. We know that in a<br />
normal year an increase in high single digits is sufficient<br />
to energise the entire industry.<br />
To put this in perspective, the last time we saw a rapid<br />
increase in percentage terms was in early 2011. During<br />
that period, this same US index would have shown an<br />
increase of 12 per cent over a four-to-six-month period, a<br />
far cry from the 40-50 per cent increases.<br />
It should be noted that the 2011 surge was also driven by<br />
a serious rise in jewellery consumption in the rest of the<br />
world and especially China.<br />
Over the last many years, the authors have repeatedly<br />
highlighted the fact that the industry was losing its share<br />
of wallet. Consumers seemed to have lost interest in the<br />
category as the pace of innovation seemed to be slow,<br />
<strong>November</strong> <strong>2021</strong> | 35
Diamond Industry Update | FEATURE<br />
CHART A: SEASONALLY ADJUSTED CONSUMPTION EXPENDITURE – JEWELLERY ($US BILLION)<br />
Source: Bureau of Economic<br />
Analysis, US Department of<br />
Commerce<br />
compared to other areas like electronics<br />
and gadgets.<br />
The meagre marketing efforts of the industry<br />
through various bodies looked like trying to<br />
slow the decline, rather than aggressively<br />
increase the market.<br />
The last six months have suddenly dispelled<br />
the gloom and the future for the entire industry<br />
suddenly looks much brighter!<br />
This has an immediate impact on the entire<br />
pipeline. As the retail pull-through increases and<br />
more jewellery gets sold, jewellers start to place<br />
replacement orders, which ripple through the<br />
entire pipeline, leading to better prices in polished,<br />
a financially healthier mid-stream, as well as<br />
finally showing up in the rough demand.<br />
The current scenario for the industry seems like<br />
a blessing to everyone, something which was<br />
unimaginable 12 months ago, when we were in<br />
the depths of the pandemic, with widespread<br />
lockdowns across the globe.<br />
The question on everyone’s mind is whether this<br />
is just another flash in the pan or whether the<br />
industry has found its ‘mojo’ again. What we know<br />
for sure is that COVID-19 has not lost its mojo – it’s<br />
fighting the vaccines and developing more lethal<br />
variants continuously.<br />
On a governmental level the stimulus injections<br />
have triggered global governmental debts to some<br />
$US281 trillion by the end of 2020 – and climbing.<br />
Out of fear of a loss of faith in currencies, the<br />
International Monetary Fund and other global<br />
financial institutions consider this debt to be<br />
‘sustainable’ and there is room for continued growth.<br />
But how long can one live in a land of fools?<br />
Diamonds may again, and maybe with more<br />
conviction than ever, become not just an inflation<br />
hedge but rather a sure (and rare) source of<br />
sustainable wealth. The pandemic can lead the<br />
world still into very unexplored paths.<br />
Retail in 2020<br />
Let’s stick to the known facts; 2020 was projected<br />
to be a year of revival for the industry, which<br />
went through a tough period in 2018-2019, when<br />
demand reduced and retail destocking added to the<br />
industry woes.<br />
Good sales during the 2019 season provided the<br />
tailwinds to the industry and 2020 began at a brisk<br />
pace, until the uncertainty of the COVID-19 crisis<br />
started creeping in.<br />
As the main markets across the world started<br />
introducing lockdowns to curb the health crisis,<br />
retail sales started dropping, with the Chinese<br />
market facing the first wave followed by all the<br />
major markets.<br />
The US, which had a relatively mild lockdown,<br />
saw retail sales dropping to half in April, while<br />
markets like China, India and the EU probably had<br />
greater drops.<br />
Surprisingly, retail markets rebounded quickly as the<br />
lockdowns were removed. The US, which accounts<br />
for half of the retail diamond sales, saw year-on-year<br />
sales crossing that of the previous year by June. This<br />
meant that the impact on sales were mainly felt in<br />
the first and second quarters only.<br />
The Chinese market also showed a sparkling<br />
recovery especially in the Mainland China region,<br />
although it is still dealing with the loss of business<br />
in the Hong Kong market, due to travel restrictions<br />
as well as the political climate. The Indian market<br />
too rebounded, but a little more slowly, as the<br />
lockdowns were longer with gold jewellery getting<br />
a bigger boost.<br />
As stores shut down, there were serious liquidity<br />
concerns faced by the retail stores. This was<br />
especially true of stores which had leased their<br />
premises, as this contributed to a significant<br />
cost element.<br />
In the US, the prompt government aid package did<br />
help businesses to keep afloat by getting access to<br />
loans to finance their operations as well as other<br />
subsidies. Other countries also rolled out business<br />
rescue packages.<br />
Businesses were also able to renegotiate some<br />
of their lease payments with the landlords while<br />
also reducing some of their other operating costs,<br />
which helped them get through the crisis. This was<br />
evident in the fact that there was no undue spike in<br />
bankruptcies and store closures.<br />
During the peak of the lockdowns, there were<br />
delays in payments to suppliers, but the quick<br />
rebound in sales meant that the businesses were<br />
able to generate liquidity fairly quickly by running<br />
down some of their inventories and catching up on<br />
their payments.<br />
The surge in retail sales during the latter<br />
part of the year, coupled with the operational<br />
improvements, also means that retail businesses<br />
are seeing some of their best operational<br />
performance in years.<br />
This trend has been further reinforced in the<br />
current year and most retail businesses currently<br />
are enjoying healthy balance sheets, as compared<br />
to previous years.<br />
Overall the global retail sales were down about<br />
14.5 per cent and clocked in at about $US65 billion,<br />
close to the most optimistic estimates for the year!<br />
Midstream crisis and renewal<br />
At the beginning of 2020, the mid-stream was on<br />
course to meet the higher demand predicted for<br />
that year.<br />
The mid-stream had tightened their businesses<br />
and had de-stocked by October of 2019 and from<br />
then on, the restocking cycle had started. The<br />
first two-to-three months of 2020 reinforced this<br />
restocking cycle, until the pandemic hit the midstream<br />
in late March.<br />
The mid-stream suffered on multiple fronts from<br />
the pandemic. The near sudden stop to retail sales<br />
meant that the polished diamond orders and sales<br />
dried up almost immediately.<br />
36 | <strong>November</strong> <strong>2021</strong>
FEATURE | Diamond Industry Update<br />
CHART B: NET AND CUMULATIVE MONTHLY MOVEMENT OF STOCK<br />
NET POLISHED STOCK ADDITION IN $US MILLION<br />
CUMULATIVE EXCESS STOCK IN $US MILLION<br />
Source: Bureau of Economic<br />
Analysis, US Department of<br />
Commerce<br />
With retail stores under lockdown and<br />
delayed payments, cash flows also<br />
started to become major issues.<br />
The situation was compounded by<br />
the strict lockdowns imposed in India<br />
to fight COVID-19.<br />
Mid-stream sales were also dependent<br />
on buyers travelling to trading centres<br />
to inspect and buy the required polished<br />
material.<br />
With global travel bans, this meant that<br />
a large part of the buying activity came to<br />
a standstill, at least until buyers worked<br />
out arrangements with the sellers.<br />
The Indian polishers have always come<br />
together in difficult times, and 2020 was<br />
no different. They decided to go in for<br />
a voluntary moratorium on buying of<br />
rough, which was largely in effect from<br />
April to July.<br />
During this period India as a whole<br />
imported only about 15 per cent of rough<br />
which it would have otherwise imported.<br />
The Indian industry’s hand was, in a<br />
manner of speaking, forced because<br />
factories were either shut down, or were<br />
operating at low levels due to distancing<br />
norms as well a large chunk of the<br />
labour force having moved back to the<br />
villages during the lockdowns.<br />
Hence, even if companies wanted to<br />
produce diamonds, their capacities<br />
were severely limited. Coupled with the<br />
liquidity pressures from the banks, it<br />
made prudent sense to go easy on the<br />
rough purchases.<br />
This move was opposed by the large<br />
rough producers, who called for the<br />
industry to “work together” through<br />
the crisis, as this step meant that<br />
they registered almost no sales in the<br />
second quarter.<br />
Incidentally, in later sponsored industry<br />
reports this was glossed over.<br />
Producers were praised as to how their<br />
“response at the start of the COVID-19<br />
crisis helped mid-stream players<br />
weather the worst of the storm”w by<br />
cancelling sales and allowing clients<br />
to postpone rough purchases.<br />
Talk about making a virtue out of a<br />
necessity!<br />
However, in retrospect, it does look like<br />
it helped the industry get on its feet<br />
much faster.<br />
It is illuminating to see how the<br />
estimated rough stocks in India as a<br />
whole moved over the past two years.<br />
As mentioned, October 2019 was the<br />
end of the destocking cycle, and we can<br />
consider that to be the ‘zero line’ and<br />
look at the stocks (see Chart B).<br />
As can be seen, by March 2020, stocks<br />
had nearly risen to their 2019 peak, in<br />
anticipation of the 2020 sales, before<br />
dropping during the moratorium period.<br />
These again started climbing, and seem<br />
to have reached the peak levels again.<br />
The health of the mid-stream is<br />
determined by the polishing profitability<br />
and, more critically, diamond prices.<br />
Typical polishing margins in the<br />
businesses are in the low single digits<br />
and hence a 10 per cent drop in stock<br />
price can wipe out years of business<br />
gains.<br />
The rough moratorium helped the<br />
mid-stream ensure that the liquidity<br />
pressures were limited, as there was<br />
no rough, and no stock, to be financed.<br />
This, in turn, reduced the pressure on<br />
companies to have to sell at any cost<br />
– ensuring that the price of polished<br />
QUICK NUMBERS<br />
Mined Over<br />
Matter<br />
25<br />
million<br />
carats of diamond<br />
produced by De<br />
Beers in 2020<br />
30<br />
million<br />
carats of diamond<br />
produced by<br />
Alrosa in 2020<br />
4<br />
number of months<br />
Indian industry<br />
implemented a<br />
rough moratorium<br />
in 2020<br />
$17bn<br />
rough diamond<br />
sales, in US<br />
dollars,<br />
for <strong>2021</strong><br />
[goods] did not crash when the market<br />
was illiquid, preventing a serious balance<br />
sheet crisis for the mid-stream.<br />
As the retail sales grew from strength to<br />
strength, replenishment orders started<br />
filtering through.<br />
The Indian mid-stream had destocked<br />
sufficiently by August and started buying<br />
rough to ramp up their production to meet<br />
the ongoing sales demand.<br />
With large rough producers following a<br />
price-versus-volume strategy, the offtake<br />
started a little slower, before picking up<br />
steam.<br />
The mid-stream managed to sell about<br />
$US14.2 billion of polished, or about<br />
20.7 per cent below 2019 sales, despite<br />
2019 itself being considered a lousy year<br />
for retail.<br />
Mid-stream deleveraging<br />
As mentioned, stock prices can make<br />
or break the balance sheet of the midstream,<br />
and the actions by the mid-stream<br />
ensured that the price drop remained<br />
within an acceptable level.<br />
The retail surge also meant that by the<br />
end of the year, overall diamond prices<br />
were almost at par with those at the end<br />
of 2019, if not higher – a remarkable<br />
achievement, considering the chaos of the<br />
second quarter!<br />
As with retail, the mid-stream too<br />
brought in additional efficiencies into<br />
their operations, including pruning of the<br />
workforce as well as reducing travel and<br />
marketing expenses.<br />
This was certainly helped by the fact<br />
that industry shows and events could<br />
simply not be held due to the COVID-19<br />
restrictions in place.<br />
<strong>November</strong> <strong>2021</strong> | 37
Diamond Industry Update | FEATURE<br />
CHART C: SEASONALLY ADJUSTED CONSUMPTION EXPENDITURE BY CATEGORY ($US BILLION)<br />
Source: Bureau of Economic<br />
Analysis, US Department of<br />
Commerce<br />
<strong>Jeweller</strong>y and watches<br />
Durable goods<br />
Nondurable goods<br />
Financial Services, Insurance & Non-profits<br />
Personal consumption expenditures<br />
Housing, Utilities, Healthcare & Other Services<br />
Food, Accommodation & Personal Care Services<br />
Transportation, Recreation & Personal Care Services<br />
The pickup of polished demand also allowed the<br />
mid-stream to destock. During the destocking<br />
process, as inventories are liquidated, bank<br />
lines are repaid, leading companies to reduce<br />
their borrowing.<br />
Our estimates show that the industry was able<br />
to reduce its borrowing by nearly 20 per cent<br />
during the course of the year, driven by a neverbefore-seen<br />
combination of destocking and better<br />
profitability – in the second half – with almost no<br />
stock loss being booked!<br />
We believe that the industry leverage is probably at<br />
the lowest level – even better than what it was at<br />
the end of 2011, which was the standout year for<br />
the industry in recent memory.<br />
As a result of the destocking, rough sales by<br />
miners dropped by about 36.7 per cent and<br />
clocked in at about $US9.37 billion for the year.<br />
Rough producers – saved by the bell?<br />
Producers had weathered a rough 2019, as the<br />
mid-stream deleveraged and rough purchases<br />
dropped to the lowest level in a decade.<br />
With good sales recorded in the 2019 season, rough<br />
diamond sales were looking up and rough producers<br />
were looking to make up lost ground, until the<br />
pandemic struck them hard by mid-March.<br />
As mid-stream ground to a standstill, and the Indian<br />
moratorium kicked in, almost no rough was sold<br />
for about two to three months. For a few producers<br />
who were already facing serious headwinds and<br />
profitability issues in 2019, as well as those with a<br />
high leverage, this proved to be the final straw.<br />
They had to go in for temporary mine closures as<br />
well and also rework their financing agreements.<br />
This forced these mines to stop production for an<br />
extended time during the year, at least until they<br />
were able to do the necessary restructuring.<br />
In a way, this forced reduction of supply eased the<br />
pressure on the two leading players to<br />
cut production.<br />
Among the larger producers, generally most of<br />
the mines were able to operate, except for short<br />
periods if COVID-19 cases were detected in a<br />
specific mine.<br />
While they continued to operate at slightly lower<br />
production levels, the impact of lower production<br />
was mainly limited to Q2.<br />
The mid-stream actions in Q2, lifting of lockdowns<br />
and the sustained consumer demand in the second<br />
half of the year significantly revived the diamond<br />
markets, and secondary market box premiums by<br />
end of 2020 – and continuing into <strong>2021</strong> – provided<br />
testament to the enhanced rough demand.<br />
Interestingly, the two leading producers seem to<br />
have taken a contrasting view on their production<br />
strategies during the year.<br />
De Beers produced about 25 million carats, while<br />
selling about 20 million carats during the year,<br />
and stockpiling the remaining production. A major<br />
chunk of this stockpile has been sold down during<br />
the first quarter of <strong>2021</strong>.<br />
Alrosa, on the other hand, came into 2020 with<br />
a sizeable stockpile from 2019 and for 2020<br />
produced only about 30 million carats while<br />
selling about 32 million carats, meaning that<br />
they actually were able to reduce their stockpile<br />
during a year of rough sales!<br />
It shows that Alrosa was quicker on the gun,<br />
and decided to prioritise sales in the latter half<br />
of 2020. Alrosa was able to get within breathing<br />
distance of De Beers’ rough sales for 2020, with<br />
the last four months of 2020 accounting for about<br />
55 per cent of the sales for the year!<br />
A look at projected production shows that Alrosa<br />
is forecasting production to be lower than De<br />
Beers, which seems inexplicable, especially given<br />
that Alrosa rough sells at a lower price and that<br />
they generally produce about 30 per cent more<br />
than De Beers.<br />
The lower projected production has the potential<br />
to destabilise rough prices in certain categories<br />
of rough in <strong>2021</strong>, but we believe that Alrosa will<br />
significantly increase their production target for<br />
the year, as they do have the spare capacity for<br />
the same.<br />
Lab-grown story – growing into its own market<br />
Lab-grown diamonds are an integral element of<br />
the diamond pipeline, at least at the retail level.<br />
While there might be some overlap between<br />
the polishing as well as polished and jewellery<br />
wholesale areas, these are still distinguishable.<br />
At the retail side, while there might be a few<br />
exclusive outlets or websites, generally lab-grown<br />
diamonds are starting to find a foothold in a larger<br />
chunk of the jewellery stores, at least in the US,<br />
where the category is the most mature.<br />
The lab-grown retail market is still very much in<br />
its teenage growth years, with many brands trying<br />
to establish themselves. Competition is still about<br />
market penetration and spreading the distribution<br />
across the markets, along with filling the pipeline.<br />
It is to be seen how many survive over the next five<br />
years. While the retail growth shows promise, it still<br />
is very much a stocking demand.<br />
Overall, lab-grown diamonds grew in market share<br />
during the year, simply because their demand is<br />
primarily dependent on the US and did not drop as<br />
much as that for natural diamonds.<br />
The technology is showing signs of maturing,<br />
with quality differences in the products<br />
narrowing. At the current stage, the ‘patent wars’<br />
in the lab-grown industry are being fought, with<br />
all parties trying to get a competitive advantage<br />
over their competitors.<br />
De Beers had a mixed victory over IIA<br />
Technologies in Singapore early last year, while<br />
recently WD Lab-Grown Diamonds lost a lawsuit<br />
against Fenix in the US.<br />
The bulk of the rough lab-grown diamond<br />
production continues to come from the<br />
HPHT [high-pressure, high-temperature]<br />
38 | <strong>November</strong> <strong>2021</strong>
FEATURE | Diamond Industry Update<br />
TACY’S 2020 - <strong>2021</strong><br />
DIAMOND PIPELINE | IN $US BILLION<br />
FEATURE FIRST PUBLISHED<br />
BY IDEX ONLINE<br />
IDEXONLINE.COM<br />
CHART D: PREPARED BY PHAROS BEAM CONSULTING<br />
© 2020 COPYRIGHTS BY TACY LTD. AND<br />
PHAROS BEAM CONSULTING LLP STRICTLY RESERVED.<br />
REPUBLISHED WITH PERMISSION FROM IDEX<br />
<strong>November</strong> <strong>2021</strong> | 39
Diamond Industry Update | FEATURE<br />
process, dominated by the Chinese<br />
industrial producers.<br />
The bulk of the value comes in from<br />
the CVD [chemical vapour deposition]<br />
production, which gives better and larger<br />
stones, and that production is more<br />
widespread, with capacities being set up<br />
in India at a fast clip.<br />
Industry performance sustainable?<br />
There is no doubt that the industry has<br />
performed spectacularly at a retail<br />
level over the past six months and is<br />
witnessing one of the best periods for<br />
the industry. In June, many traders were<br />
reporting that they had never been as<br />
busy as they currently were.<br />
Our current favourite indicator for midstream<br />
activity and health is undoubtedly<br />
the backlog at the grading laboratories.<br />
A longer delay signifies increased activity<br />
levels in the mid-stream, and even on<br />
that count, the industry seems to be<br />
doing swimmingly!<br />
However, there is a difference of opinion<br />
in the industry. On one hand there is<br />
unbridled optimism with claims of the<br />
industry outperforming others and that it<br />
has been able to better engage with the<br />
customers and even attract Millennials<br />
during the crisis.<br />
On the other side, we have other industry<br />
leaders and media saying that this is a<br />
flash in the pan and the market will slow<br />
down going forward.<br />
Even the leading retailers in the US have<br />
struck a cautious tone about future sales,<br />
despite record-setting numbers in the<br />
first half of <strong>2021</strong>.<br />
To understand whether we, as an<br />
industry, have truly outperformed, we can<br />
once again look at the US market data<br />
from the US Bureau of Economic Affairs<br />
(see Chart C).<br />
In analysing any data, the inherent<br />
seasonality of any demand proves to be a<br />
challenge, as the annual pattern of each<br />
industry varies. However, the seasonallyadjusted<br />
consumption expenditures data<br />
does this for us and is a useful gauge<br />
of how the personal consumption has<br />
changed over the period.<br />
What we would specifically like to do<br />
is to compare the jewellery industry<br />
performance with that of other goods<br />
and services. We have grouped together<br />
some services for it to better reflect the<br />
comparison and impact of the pandemic.<br />
The data has been presented at a<br />
quarterly level so as to damp out any<br />
monthly fluctuations, and focus on the<br />
overall trends.<br />
There are some interesting observations<br />
which can be made on the trends:<br />
• The pandemic and the resultant<br />
lockdowns to contain it affected<br />
overall movement and activity in the<br />
economy, which is visible in the dip<br />
in the second quarter.<br />
Currently the personal consumption<br />
index is about 10 per cent above<br />
that of the 2019 Q1 baseline.<br />
• As we all know, the service<br />
industries were most affected by the<br />
lockdowns and travel restrictions,<br />
and these include transportation,<br />
recreation, personal care, food, and<br />
accommodation services.<br />
• Housing, utilities, healthcare and<br />
other services have held steady<br />
during this period. These are the<br />
basic requirements and would be<br />
expected to do so.<br />
IN SUMM ARY<br />
Key Points<br />
Rough<br />
production<br />
constrained<br />
Major producers<br />
are focusing on<br />
sales, with lower<br />
production<br />
targets<br />
Healthier<br />
midstream<br />
A moratorium<br />
in 2020<br />
allowed stock<br />
clearing and<br />
deleveraging,<br />
with activity<br />
picking up once<br />
more<br />
Unexpected<br />
retail boom<br />
<strong>Jeweller</strong>y has<br />
performed<br />
strongly at the<br />
retail level,<br />
boosted by<br />
government<br />
stimulus<br />
and lack of<br />
competition<br />
Slow return<br />
to normality<br />
Luxury<br />
spending<br />
patterns are<br />
likely to return<br />
to a baseline<br />
in two to three<br />
years<br />
This block accounts for 40 per cent<br />
of the overall personal consumption<br />
expenditure in the economy.<br />
• While non-durable goods have shown<br />
a good increase, durable goods have by<br />
far outperformed other categories of<br />
consumption.<br />
US consumers seem to have a newfound<br />
love for acquiring physically<br />
durable products.<br />
While the jewellery category does stand out<br />
as the best performer in this chart, it is to be<br />
noted that the industry’s performance is in line<br />
with that of other durable goods.<br />
If you dig down deeper into the data, you will<br />
find categories like motor vehicles – a much<br />
larger industry – have outperformed jewellery.<br />
Even other industries of comparable size – be<br />
it sporting equipment, guns and ammunition<br />
or sports and recreational vehicles – have<br />
performed better than our industry.<br />
Clearly, while the industry is among the better<br />
performers, it is simply part of the ‘gold rush’<br />
of consumers as they spend on acquiring<br />
durable goods.<br />
It can be argued that consumers, who had<br />
saved from not spending on the services<br />
mentioned above – as well as buoyed by<br />
the handouts provided by the government –<br />
channelled a large chunk of their excess funds<br />
into buying the physical durable which they<br />
had longed for but had not been able to buy.<br />
Additionally, the wealth effect of the stock<br />
market boom, fuelled by government stimulus<br />
and ultra-loose monetary policy, also helped<br />
loosen the consumer purse strings.<br />
This also makes sense because durable goods<br />
are generally more expensive, last much longer,<br />
and have a utility value over their lifetime.<br />
There is no doubt that diamonds and<br />
40 | <strong>November</strong> <strong>2021</strong>
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Recent history has taught<br />
us that the best prediction<br />
for the end of a boom cycle<br />
is clearly a sharp increase in<br />
prices and euphoria in the<br />
rough market – though we are<br />
not there yet! In our industry,<br />
a good year always sets the<br />
stage for the next year’s<br />
underperformance”<br />
07 3003 1788<br />
info@adoradiamonds.com.au<br />
jewellery have more of an emotional element in<br />
their purchase decision. During a crisis, and the<br />
pandemic is no different, humans do look for<br />
emotional connection and jewellery is simply a<br />
beautiful way to express it.<br />
It is natural that couples who have been stuck at<br />
home during the last year have bought jewellery to<br />
express their love!<br />
The return to normalcy is not going to be a<br />
sudden one, unlike the onset of the pandemic.<br />
As vaccinations across the globe are slowly rolled<br />
out, businesses will gradually revert back to the<br />
previous behaviour over the course of the next<br />
two to three years.<br />
As disposable income reduces with travel and<br />
other areas becoming prominent again, and the<br />
experiential luxury market gradually increases,<br />
the share of the wallet will again shift out of the<br />
jewellery category – something which the industry<br />
should not give up without a fight.<br />
A similar trajectory is playing out in other major<br />
markets like China and India as well as other<br />
luxury categories.<br />
Consumers are spending their excess disposable<br />
income on these categories and it would take two to<br />
three years for the market to reach the ‘new normal’.<br />
Looking forward<br />
The authors had, in the 2019 pipeline article,<br />
mentioned that <strong>2021</strong> would be a very good year<br />
for the industry, with rough and polished sales<br />
expected to between the 2018 and 2019 levels.<br />
The sustained retail boom in the first half<br />
has meant that the performance is likely to<br />
be even better, barring any sudden crash of<br />
world economies.<br />
We expect that the polished sales for the industry<br />
would clock in at about $US20–21 billion, while the<br />
rough sales should come in around $US17 billion,<br />
with De Beers and Alrosa accounting for about<br />
$US10–11 billion.<br />
It is likely that the current market euphoria will<br />
continue into Q4, before quieting down by the end<br />
of the year.<br />
While this much is clear, prices on the other<br />
hand, are a representation of the demand-supply<br />
mismatch. With a healthy demand and an absence<br />
of supply, prices would, per force, rise.<br />
In the initial phase of every upcycle, prices remain<br />
stable, as producers run down their stockpiles to<br />
meet demand.<br />
We are currently in the latter phase of the cycle,<br />
wherein most producers would have exhausted<br />
their built-up supplies, and the increased demand<br />
would directly reflect in the prices.<br />
Recent history has taught us that the best<br />
prediction for the end of a boom cycle is clearly a<br />
sharp increase in prices and euphoria in the rough<br />
market – though we are not there yet!<br />
In our industry, a good year always sets the stage<br />
for the next year’s underperformance.<br />
Traditional wisdom has it that when the going is<br />
good, strap in and get ready to ride the rollercoaster,<br />
because 2022 will be a different story!<br />
In a market where producers still can manipulate<br />
the supply and demand fundamentals, the<br />
pandemic remains fully out of control – in spite of<br />
governmental assurances stating otherwise.<br />
This is an edited version of an article that was first<br />
published by IDEX Online in August <strong>2021</strong>, and is reproduced<br />
with permission. Visit idexonline.com.<br />
CHAIM EVEN-ZOHAR is a retired consultant<br />
to the diamond industry and the former editor<br />
of the Israel Diamond Exchange’s Diamond<br />
Intelligence Briefs. PRANAY NARVEKAR is<br />
director of Pharos Beam Consulting, a firm<br />
providing analysis and insights into the supply,<br />
financing, and structure of the diamond industry.<br />
ADORADIAMONDS.COM.AU
SCIENTIFIC REPORT<br />
Super-Deep Diamonds<br />
Uncovering secrets of the<br />
SUPER-DEEP DIAMONDS<br />
per-Deep Diamonds<br />
CIENTIFIC REPORT<br />
New research from Curtin University has revealed clues about Earth’s ancient<br />
history – all locked within ultra-rare diamonds, writes DR LUC DOUCET.<br />
Diamonds are said to be forever, and it seems<br />
the secrets they contain about the history of<br />
the Earth are also endless.<br />
However, not all diamonds are alike; there are three main<br />
types – lithospheric, oceanic, and super-deep continental.<br />
Most diamonds formed in the most ancient continental<br />
lithosphere – the outermost, rigid layer of Earth – between<br />
150–300km from the surface.<br />
These are known as lithospheric diamonds, and they form in<br />
relatively stable environments, harvesting ambient carbon.<br />
But not all diamonds form in this way. A relatively tiny portion<br />
of all mined diamonds – approximately 1 per cent – originate<br />
from the deep mantle of the Earth, located down to 1,000km<br />
below the surface.<br />
Recent research conducted by the Earth Dynamics Research<br />
Group at Curtin University in Western Australia, published<br />
by the journal Nature, discovered that diamonds found in<br />
oceanic rocks and super-deep continental diamonds share<br />
a common origin.<br />
They are made of organic carbon – that is, former living<br />
organisms that have effectively been ‘recycled’ – deep within<br />
the Earth’s mantle.<br />
Bringing new meaning to the old ‘trash-to-treasure’ adage,<br />
this research discovered that the Earth’s ‘engine’ turns<br />
organic carbon into diamonds many hundreds of kilometres<br />
below the surface.<br />
The Cullinan<br />
The Great Star of Africa<br />
530.20-carats<br />
DI A MOND FIGURES<br />
Going Deep<br />
1,000km<br />
depth at which<br />
super-deep<br />
diamonds form<br />
3,106<br />
carat weight of<br />
the super-deep<br />
Cullinan diamond<br />
0.9%<br />
proportion<br />
of Earth's<br />
diamonds that<br />
are super-deep<br />
Super-deep diamond formation is linked to the plate tectonic<br />
processes that make our planet unique in the Solar System.<br />
Carbon capture<br />
The term ‘plate tectonics’ may be familiar to some from high<br />
school science classes; essentially, the lithosphere is made<br />
up of moving plates that shift and collide against each other.<br />
Because of the tremendous force of mantle convection,<br />
oceanic tectonic plates sink back into Earth’s mantle<br />
underneath another plate in what we call the ‘subduction<br />
zone’. When a plate is subducted, it carries with it all the<br />
material needed to form diamonds.<br />
This includes carbon from the rocks and from formerly living<br />
things – the organic matter. At around 400km below the<br />
surface, the subducted tectonic plate will enter the Earth’s<br />
mantle’s ‘transition zone’.<br />
In this place, pressure and temperature conditions allow<br />
the formation of metallic melt, from which the super-deep<br />
diamonds will form.<br />
It is also a mystery as to why diamonds formed in the<br />
transition zone utilise only recycled organic carbon – this<br />
may be linked to the physical and chemical environment.<br />
So, how do we discover them?<br />
Both super-deep diamonds and lithospheric diamonds<br />
are brought up to the surface during small but very<br />
powerful eruptions.<br />
Ballooning hot rocks, known as mantle plumes, rise from<br />
deep in the mantle, transporting the diamonds to the surface<br />
48 | <strong>November</strong> <strong>2021</strong>
S<br />
CHART A: DIAMOND<br />
ORIGIN RATIO<br />
Approximately 99 per cent<br />
of the world's diamonds are<br />
lithospheric, while less than<br />
1 per cent are super-deep<br />
and 0.1 per cent are oceanic.<br />
Lithospheric – 99%<br />
Super-Deep – 0.90%<br />
Su<br />
Oceanic – 0.10%<br />
Oceanic – 0.10%<br />
Super-Deep – 0.90%<br />
Lithospheric – 99%<br />
GLOSSARY OF TERMS<br />
DEFINING DIAMONDS<br />
SCIENTIFIC REPORT<br />
Super-Deep Diamonds<br />
Scientific terminology in diamond formation<br />
CARBON CYCLE – The shifting of the element carbon<br />
between different ‘reservoirs’ on Earth – rocks, soil, ocean,<br />
and atmosphere, plants – through chemical reactions and<br />
tectonic activity<br />
KIMBERLITIC ERUPTION – Catastrophic explosions<br />
in the Earth's mantle which transport super-deep and<br />
lithospheric diamonds to the surface<br />
LITHOSPHERIC DIAMONDS – Diamonds that form in the<br />
continental lithosphere – the outermost, rigid layer of Earth<br />
– between 150–300km from the surface, from ambient<br />
carbon; they are by far the most abundant diamonds<br />
MANTLE PLUME – The ballooning heated rocks in the<br />
mantle that create kimberlitic eruptions<br />
METALLIC MELT – Pockets of molten metallic liquid –<br />
comprised of iron and nickel, among other elements – that<br />
occur deep in the Earth’s mantle, in which large, Cullinanlike<br />
diamonds form<br />
OCEANIC DIAMONDS – Diamonds that form as a result of<br />
plate tectonics, subducting the ocean floor and its carbon<br />
and other minerals into the mantle<br />
SUBDUCTION – The process whereby Earth’s tectonic<br />
plates collide and sink back into the mantle underneath<br />
another plate<br />
SUPER-DEEP DIAMONDS – Diamonds that form<br />
very deep in the Earth’s mantle, around 400km below<br />
the surface; less than 1 per cent of diamonds are superdeep<br />
diamonds<br />
TRANSITION ZONE – The area deep within Earth’s<br />
mantle in which pressure and temperature conditions allow<br />
the formation of metallic melt, from which the super-deep<br />
diamonds form
in catastrophic explosions known as kimberlitic eruptions.<br />
Those familiar with diamond formation will recognise the term<br />
‘kimberlite’, which refers to the diamond-rich channels made by<br />
these eruptions.<br />
Dazzling diamonds<br />
Intriguingly, the rarest and largest diamonds are believed to be<br />
of super-deep origin.<br />
These diamonds are often described as ‘Cullinan-like’, named<br />
after the largest diamond ever discovered – the Cullinan diamond,<br />
which weighed 3,106 carats. It was discovered by Thomas Evan<br />
Powell on 26 January 1905 at the Premier Mine in South Africa.<br />
Cullinan-like diamonds have metallic inclusions with<br />
compositions that support the processes involved in the<br />
formation of super-deep diamonds.<br />
So far, mines containing super-deep diamonds have been<br />
identified as the most productive globally, with South Africa<br />
and Brazil the main producers of super-deep diamonds.<br />
Other locations might bear super-deep diamonds, but they<br />
have not been discovered yet.<br />
Unlocking Earth’s secrets<br />
An even rarer type of diamonds is the oceanic type. These<br />
diamonds share similarities with super-deep diamonds and<br />
formed when the oceanic crust crashed into the continental<br />
lithosphere.<br />
The comparative study of both super-deep and oceanic diamonds<br />
indicates that carbon from dead organisms seems to be the<br />
primary source of carbon, suggesting that the deep carbon<br />
cycles are closely linked to the surface carbon cycles.<br />
The super-deep and oceanic diamonds are the sole samples we<br />
have from deep within the Earth and give us invaluable information<br />
on what is happening hundreds to thousands of kilometres below<br />
our feet. So far, studies on these diamonds demonstrate that<br />
Earth’s interior is wetter than expected and that surface material,<br />
including organic matter, has been recycled deep in the mantle.<br />
The fundamental question that remains to be answered is, when<br />
does it start? This question will keep scientists busy for the years<br />
to come.<br />
While recycling is becoming a modern-day necessity for our<br />
sustainable survival, we were particularly surprised to learn,<br />
through this research, that Mother Nature has been showing<br />
us how to recycle with style for billions of years.<br />
This research helps us to understand Earth’s carbon cycle and<br />
could provide the key to even more secrets of the Earth’s history;<br />
by mapping the distribution of continental and oceanic diamonds,<br />
we can potentially identify the past locations of mantle plumes and<br />
superplumes.<br />
The Curtin University Earth Dynamics Research Group's study<br />
of super-deep diamonds, 'Oceanic and super-deep continental<br />
diamonds share a transition zone origin and mantle plume<br />
transportation', was published in the journal Nature Scientific<br />
Report in August <strong>2021</strong>. Visit: geodynamics.curtin.edu.au/research/<br />
research-highlights<br />
18ct Diamond & Precious Coloured Gemstone <strong>Jeweller</strong>y<br />
DJDIAMONDDESIGNS.COM.AU<br />
DR LUC DOUCET is a research fellow at the Earth Dynamics<br />
Research Group of Curtin University in Perth, Western Australia. He<br />
and his team reconstruct the geodynamic processes that made the<br />
Earth the way it is today. Visit: geodynamics.curtin.edu.au<br />
Daniel Jacuk - 0412 071 103<br />
sales@djdiamonddesigns.com.au
SCIENTIFIC REPORT | Super-Deep Diamonds<br />
CHART B: SUBDUCTION DIAGRAM<br />
The diagram below indicates how the subduction process occurs,<br />
dragging tectonic plates back into the mantle. Metallic melt forms in the<br />
transition zone, while super-deep diamonds form in the lower mantle.<br />
Diagram provided by Dr. Luc Doucet
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<strong>November</strong> <strong>2021</strong> | 53
FEATURE<br />
Watch Industry Review<br />
LOCKED-DOWN WORLD OF<br />
WATCHES<br />
EMERGES FROM ISOLATION<br />
MARTIN FOSTER details the return to face-to-face fairs<br />
amid a distorted post-COVID watch-buying environment.<br />
JAQUET DROZ BIRD REPEATER 300TH ANNIVERSARY EDITION, SHOWCASED AT WATCHTIME NEW YORK <strong>2021</strong>
FEATURE | Watch Industry Review<br />
BY THE DIGITS<br />
Watch the Numbers<br />
by MARTIN FOSTER<br />
W<br />
e have followed the ups and downs<br />
of Australia’s COVID-19 politics as<br />
we watched the rest of the world<br />
twist and turn under the insidious influences<br />
of the Delta strain during the pandemic.<br />
It seems that hospitality and entertainment have been<br />
the big losers as they rely on customers coming in and<br />
sitting down for lunch or dinner or attending live events<br />
and trade exhibitions.<br />
As we know, it is this very form of business that logically<br />
suffers from lockdowns, which prevent in-person<br />
attendance and reduce retail ‘foot-traffic’.<br />
In contrast, the extraordinary performance of the watch<br />
industry shows another side to the lockdown coin.<br />
Sales figures indicate that consumers at the top of the<br />
market were largely unaffected by the rules and<br />
restrictions – they simply had to find a different way<br />
to dispense their buying power.<br />
There are many examples to illustrate this point.<br />
Industry media has reported Rolex and Tudor sales in<br />
the UK and Ireland generated sales of £468 million<br />
($AU867.7 million), up from £415 million ($AU769.4<br />
million), an increase of 13 per cent even during the<br />
lockdown chaos.<br />
As an example of unbridled insanity and excess funds<br />
was the auction of a newly-released Patek Philippe<br />
model – a factory-sealed olive-green Nautilus – which<br />
was sold in April by Antiquorum in Monaco.<br />
The nominated retail price of $AU48,000 was utterly<br />
dwarfed by the auction sale, which was a staggering<br />
$AU650,000 including buyer’s premium.<br />
Bidders online and in the saleroom refused to back<br />
down until the price nudged half a million US dollars.<br />
That was just one example! Research, conducted by<br />
retail analytics firm GfK, also reveals other distortions<br />
in the watch market.<br />
Total watch sales value in the UK in August for models<br />
£468m<br />
Rolex and Tudor<br />
sales in the UK<br />
and Ireland, <strong>2021</strong><br />
– an increase of<br />
13 per cent<br />
21<br />
watch brands<br />
presenting at<br />
the independent<br />
WatchPro Salon<br />
in London in<br />
<strong>November</strong> <strong>2021</strong><br />
23,600<br />
attendees at<br />
September's Hong<br />
Kong Watch & Clock<br />
Fair, including<br />
members of the<br />
public<br />
$650,000<br />
auction price<br />
realised for Patek<br />
Philippe Nautilus,<br />
April <strong>2021</strong> – more<br />
than seven times its<br />
retail price<br />
61%<br />
increase in average<br />
prices of watches<br />
purchased in the UK<br />
between September<br />
2020 and August <strong>2021</strong><br />
priced at £500–1,000 ($AU925 –1,851) fell by 7 per cent<br />
– but increased by 31 per cent for models priced at<br />
£5,000–10,000 ($AU9,257–18,515), and saw a stunning<br />
rise of 19 per cent for timepieces priced at more than<br />
£10,000 ($AU18,515).<br />
Overall, average prices rose by more than 61 per cent for<br />
the 12-month period from September 2020 to August <strong>2021</strong><br />
as customers actively sought more expensive watches.<br />
GfK’s research reported that for July <strong>2021</strong> alone, the total<br />
value of watch sales in Great Britain was 34 per cent<br />
higher than in the same month in 2019.<br />
We may safely observe that<br />
there is unrestrained wealth at<br />
the top of the market burning<br />
holes in the pockets of buyers<br />
who suffer no budgetary cares –<br />
and the watch industry is happily<br />
celebrating the bonus”<br />
Swatch Group – which includes brands such as<br />
Omega, Tissot, Breguet, and Longines, among others<br />
– went against the trend with a 39 per cent revenue<br />
decline in 2020.<br />
However, this was of its own doing and partly a result<br />
of the unsettled restructuring of its UK operations.<br />
The Swatch result is an exception, and we may safely<br />
observe that there is unrestrained wealth at the top of the<br />
market burning holes in the pockets of buyers who suffer<br />
no budgetary cares – and the watch industry is happily<br />
celebrating the bonus.<br />
Return of the fairs<br />
Christophe Claret<br />
In the meantime, the physical fairs are starting to reemerge<br />
as the online promotional meetings of the last<br />
year achieved an unenviable result – the highest-ever<br />
boredom ratings!<br />
<strong>November</strong> <strong>2021</strong> | 55
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2022: CALENDAR OF EVENTS<br />
Above: Exhibitors and visitors at EPHJ <strong>2021</strong><br />
DATE EVENT LOCATION<br />
11 – 14 February 2022 Inhorgenta Munich Messe München, Munich, Germany<br />
30 March – 5 April 2022 Watches & Wonders Geneva Palexpo, Geneva, Switzerland<br />
31 March – 4 April 2022 Baselworld Messe Basel, Basel, Switzerland<br />
8 –11 June 2022 EPHJ - EPMT - SMT Palexpo, Geneva, Switzerland<br />
6 –10 September 2022 Hong Kong Watch & Clock Fair HKCEC, Hong Kong<br />
Contrary to some industry declarations, digitalonly<br />
presentations are not “the way ahead” at<br />
all, and the sooner that physical fairs reestablish<br />
their presence, the better the quality<br />
of the review material for the press, agents and<br />
buyers alike.<br />
Rob Corder, co-founder and editor of the<br />
UK industry publication WatchPro, has<br />
been a staunch advocate for events<br />
where watch lovers can indulge their<br />
passion in the company of the world’s<br />
most exceptional watchmakers.<br />
He wrote earlier this year, “Zoom and webinars<br />
are a necessary but appalling substitute for live<br />
events like Baselworld, Watches & Wonders,<br />
and boutique shows in the most important<br />
markets like the UK, US, and Germany.”<br />
In support of his own stated views, WatchPro<br />
has scheduled its own Salon event from 12–13<br />
<strong>November</strong> at the five-star Londoner Hotel on<br />
Leicester Square.<br />
Japan’s Grand Seiko and more than 20 smallyet-established<br />
quality brands in attendance.<br />
Meanwhile, the Hong Kong Watch and Clock<br />
Fair (HKW&CF) – a joint exposition of the Watch<br />
& Clock Fair and Salon de TE, by far the largest<br />
of the fairs in normal times – opened on 12<br />
September.<br />
The five-day physical event attracted<br />
approximately 4,900 industry buyers and<br />
more than 23,600 public visitors to shop<br />
for timepieces.<br />
The last COVID-free year for which foot traffic<br />
information is available was 2018, when<br />
attendance totalled 21,000 buyers for 830<br />
exhibitors from 25 countries and regions.<br />
The fair’s organiser, the Hong Kong Trade<br />
Development Council, has good reason to be<br />
pleased with this slightly increased attendance<br />
in this difficult year.<br />
More than 12,000 people<br />
attended EPHJ during<br />
the four days of the show,<br />
where 530 exhibitors<br />
were showcased from 13<br />
countries, representing<br />
watchmaking and<br />
microtechnology”<br />
Boosting this attendance was the decision to,<br />
for the first time, open the HKW&CF to the<br />
public for the full period of the fair.<br />
An online version of the HKW&CF was also<br />
launched for the first time this year and ran<br />
until 19 September.<br />
Benjamin Chau, deputy executive director of<br />
the HKTDC, said, “The Watch & Clock Fair and<br />
Salon de TE returned as special editions this<br />
year to help generate business opportunities<br />
for industry players.<br />
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Above L to R: Baselworld <strong>2021</strong>; Watches & Wonders <strong>2021</strong>; Jaquet Droz watch<br />
“Opening the five-day fairs to the public for the first<br />
time also provided an excellent opportunity for watch<br />
and clock traders to reach out to retail customers<br />
and boost the industry’s retail businesses.”<br />
He added, “According to our on-site survey, public<br />
visitors who were interviewed spent an average of<br />
$HK1,059 [$AU183] per person at the fairs.”<br />
Precision watchmaking equipment show, EPHJ in<br />
Geneva, returned with its first live exhibition since<br />
2019 as the pandemic receded in Europe and brands<br />
and buyers returned to in-person events.<br />
More than 12,000 people attended EPHJ during<br />
the four days of the show, where 530 exhibitors<br />
were showcased from 13 countries, representing<br />
watchmaking and microtechnology.<br />
This figure was, understandably, down from 20,000<br />
attendees and 800 exhibitors in 2019.<br />
<strong>Jeweller</strong> previously reported the successful Watches<br />
& Wonders (W&W) Geneva online edition in April<br />
<strong>2021</strong> – its second online-only event in as many years<br />
– as well as its physical W&W Shanghai show, held<br />
immediately afterwards.<br />
W&W Geneva is now confirmed to take place in<br />
2022 in both physical and digital formats, via the<br />
watchandwonders.com platform and at the Palexpo<br />
exhibition centre from 30 March–5 April.<br />
And speaking of Swiss fairs, one cannot ignore<br />
Geneva Watch Days.<br />
Following the COVID-19 pandemic and the collapse<br />
of Baselworld, Geneva Watch Days was founded in<br />
2020 as an independent fair, spearheaded by the<br />
QUICK RE V IE W<br />
In Summary<br />
High-end of the market<br />
shows robust results<br />
Sales throughout the pandemic<br />
have favoured the luxury<br />
market, with increases for<br />
higher-priced watches and<br />
eye-watering auction results<br />
Live events return to<br />
form amid digital fatigue<br />
Physical trade shows have<br />
cemented their role in the<br />
industry, with digital events<br />
taking a complementary role<br />
– rather than centre-stage<br />
Geneva establishes itself<br />
as centre of trade fairs<br />
Three salons occurred<br />
in the Swiss city in <strong>2021</strong>,<br />
establishing its reputation<br />
as the heart of watchmaking<br />
Challenges ahead for<br />
the revived Baselworld<br />
Logistics and marketing<br />
are key issues for Baselworld<br />
as organisers plot its April<br />
2022 return<br />
like-minded Bulgari, H. Moser & Cie., Breitling, Ulysse<br />
Nardin, Urwerk, Gerald Genta, MB&F and Girard-<br />
Perregaux.<br />
This year it was presented from 30 August–3<br />
September in a 'phygital' format – a mix of in-person<br />
and virtual presentations – to address the visitor<br />
restrictions created by the global pandemic.<br />
This was five days filled with innovations, new<br />
designs, concepts, limited editions, affordable –<br />
and untouchably expensive – watches released by<br />
some of the world’s renowned manufacturers.<br />
Baselworld – a brand seeking redemption<br />
Only a few years ago, Baselworld was the leading<br />
go-to fair, but it spectacularly fell from grace for<br />
reasons widely canvassed in <strong>Jeweller</strong> and elsewhere.<br />
Baselworld is now doing everything it can to recover<br />
its credibility with watch brands and is adopting a<br />
‘gently, gently’ approach to achieve this. But it will be<br />
hard work for a couple of very pertinent reasons.<br />
Firstly, Rolex, Patek Philippe, Tudor, Chanel, and<br />
Chopard were fiercely loyal to Baselworld but left as a<br />
bloc in April 2020, with just a hint in the air that MCH<br />
Group – the Baselworld organiser – had been careless<br />
with its reciprocal loyalty.<br />
Undoing this damage is not, and cannot, be an easy<br />
task as the issues accumulated over some years.<br />
But Baselworld can only really feel at ease if, or when,<br />
the industry pillars of Patek Philippe and Rolex return<br />
to the Messe Basel exhibition centre.<br />
In the meantime, the next problem facing Baselworld is<br />
58 | <strong>November</strong> <strong>2021</strong>
that the centre of horological gravity has shifted from<br />
Basel to Geneva; Baselworld’s defecting ‘big names’<br />
established their new salon in Geneva, in conjunction<br />
with the ‘opposition’ Watches & Wonders.<br />
Therefore, Baselworld has a logistical problem in that<br />
Basel and Geneva are at opposite ends of Switzerland.<br />
Expecting good coverage of Baselworld exhibitors<br />
when buyers and media are all down in Geneva may<br />
be a forlorn hope.<br />
To re-establish its presence, the ‘new’ Baselworld<br />
was launched with a big step outside its traditional<br />
premises to reconnect with the industry and<br />
the media.<br />
One cannot ignore Geneva<br />
Watch Days... This was five<br />
days filled with innovations,<br />
new designs, concepts, limited<br />
editions, affordable – and<br />
untouchably expensive – watches<br />
released by some of the world’s<br />
renowned manufacturers”<br />
IWC Schaffhausen<br />
It was presented via a new pop-up event in Geneva,<br />
which ran from August 30, simultaneously with the<br />
Geneva Watch Days.<br />
This event was marketed as “presenting the<br />
new Baselworld spirit, with 10 independent<br />
brands and a program that favours openness,<br />
conviviality and networking.”<br />
While on a far smaller scale to the traditional<br />
Baselworld event, it was the first step in the<br />
build-up to the return of the larger physical show,<br />
Baselworld 2022, which will take place from<br />
31 March 31–4 April next year.<br />
Meanwhile, the annual highly regarded Only Watch<br />
auction is the next event of the industry – and both<br />
the watches themselves and the charitable proceeds<br />
will make for an interesting saga to observe.<br />
There is no shortage of promotional material in the<br />
horological ether, as brands try to compensate for<br />
the lack of fairs this year.<br />
Manufacturers, buyers, agents, and the media are all<br />
looking forward to a 2022 resumption of the affairs of<br />
the industry, unhindered by virus-driven politics.<br />
In the meantime, the new releases and recordbreakers<br />
of this year act as tempters, reminding us<br />
of the exquisite pieces we have all been missing –<br />
and deserve to see, in the flesh, once again.<br />
Seiko<br />
MARTIN FOSTER is a freelance journalist and<br />
<strong>Jeweller</strong>’s resident watch ‘guru’. Based in Sydney,<br />
Martin attends major international exhibitions<br />
covering the watch and timepieces categories.<br />
NOMOS Glashütte
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A QUARTERLY SPOTLIGHT ON COLOURED GEMSTONES NOVEMBER <strong>2021</strong><br />
70 RED CARPET<br />
COLLECTION<br />
COLOUR<br />
FOCUS<br />
THIS MONTH<br />
Orange<br />
&<br />
Yellow<br />
Who stole the<br />
show with this<br />
vintage citrine<br />
cuff?<br />
Turn to page<br />
70 to find out.<br />
Index<br />
COLOUR INVESTIGATION FEATURE<br />
Sunlight & flames<br />
<strong>Jeweller</strong> explores the captivating hues of orange and yellow<br />
gemstones, from the rich gold of topaz to mandarin garnet,<br />
fresh citrine, and smouldering fire opal.<br />
62<br />
63<br />
70<br />
IN DEPTH<br />
Dive into gem trivia<br />
COLOUR INVESTIGATION FEATURE<br />
Sunset magic<br />
RED CARPET COLLECTION<br />
This month’s colours dazzle<br />
Topaz<br />
VARIETY<br />
ETYMOLOGY<br />
HARDNESS<br />
REFRACTIVE INDEX<br />
TREATMENTS<br />
COLOURS<br />
NOVEMBER BIRTHSTONE<br />
Neosilicate<br />
Sanskrit tapaz, meaning fire<br />
8<br />
1.62–1.63<br />
Heat, irradiation, coatings<br />
Yellow and golden orange (among<br />
others)<br />
QUICK PROFILE<br />
8 Popular<br />
Orange<br />
& Yellow<br />
Gemstones<br />
Spessartite Garnet<br />
VARIETY<br />
ETYMOLOGY<br />
HARDNESS<br />
REFRACTIVE INDEX<br />
TREATMENTS<br />
COLOURS<br />
Garnet<br />
Named after Spessart, Germany<br />
6.5–7.5<br />
1.79–1.82<br />
None<br />
Light orange to reddish orange-brown<br />
Heliodor (Yellow Beryl)<br />
VARIETY<br />
ETYMOLOGY<br />
HARDNESS<br />
REFRACTIVE INDEX<br />
TREATMENTS<br />
COLOURS<br />
Yellow Zircon<br />
VARIETY<br />
ETYMOLOGY<br />
HARDNESS<br />
REFRACTIVE INDEX<br />
TREATMENTS<br />
COLOURS<br />
Citrine<br />
VARIETY<br />
ETYMOLOGY<br />
HARDNESS<br />
REFRACTIVE INDEX<br />
TREATMENTS<br />
COLOURS<br />
Beryl<br />
Ancient Greek helios, meaning sun,<br />
and doron meaning gift<br />
7.5–8<br />
1.57 – 1.58<br />
Heat, irradiation<br />
Yellow, yellow-green, golden-yellow<br />
Neosilicate<br />
Persian zargun, meaning gold-hued<br />
7.5<br />
1.93–1.99<br />
Heat<br />
Yellow to orangey-red (among others)<br />
NOVEMBER BIRTHSTONE<br />
Quartz<br />
Old French citrin, meaning<br />
lemon-coloured<br />
7<br />
1.54–1.55<br />
Heat<br />
Yellow to deep orange-red<br />
HONOURABLE<br />
MENTIONS<br />
• Carnelian<br />
• Chrysoberyl<br />
• Danburite<br />
• Yellow & Orange<br />
Diamond<br />
• Yellow & Orange<br />
Sapphire<br />
• Yellow & Orange<br />
Tourmaline<br />
Fire Opal<br />
VARIETY<br />
ETYMOLOGY<br />
HARDNESS<br />
REFRACTIVE INDEX<br />
TREATMENTS<br />
COLOURS<br />
Golden South Sea Pearls<br />
VARIETY<br />
ETYMOLOGY<br />
HARDNESS<br />
REFRACTIVE INDEX<br />
TREATMENTS<br />
COLOURS<br />
Amber<br />
VARIETY<br />
ETYMOLOGY<br />
HARDNESS<br />
REFRACTIVE INDEX<br />
TREATMENTS<br />
COLOURS<br />
Silicate<br />
From its flame-like appearance<br />
6 – 6.5<br />
1.37–1.47<br />
Coatings, dyes<br />
Yellow to orange-red<br />
Carbonate<br />
Named for their colour and Pacific origin<br />
2.5 – 4<br />
1.52–1.69<br />
None<br />
Pale to rich gold<br />
Resin<br />
Likely Arabic anbar, meaning fragrant<br />
2 – 2.5<br />
1.54–1.55<br />
Heat, wax, dye, coatings<br />
Yellow to orange-brown (among others)<br />
LEARN ABOUT THESE GEMSTONES IN DEPTH: JEWELLERMAGAZINE.COM
ORANGE & YELLOW<br />
In Depth<br />
PROVENANCE SNAPSHOT<br />
TOP 5 ORANGE AND YELLOW GEMSTONE PRODUCING COUNTRIES<br />
Yellow Zircon<br />
Sri Lanka<br />
Australia<br />
Germany<br />
Cambodia<br />
Topaz<br />
Brazil<br />
US<br />
Madagascar<br />
Myanmar<br />
(Burma)<br />
Namibia<br />
Zimbabwe<br />
Mexico<br />
Sri Lanka<br />
Pakistan<br />
Russia<br />
China<br />
Citrine<br />
Russia<br />
Madagascar<br />
Brazil (treated)<br />
Yellow & Orange<br />
Sapphire<br />
Sri Lanka<br />
Australia<br />
Thailand<br />
Myanmar (Burma)<br />
Spessartite<br />
Garnet<br />
Madagascar<br />
Nigeria<br />
Sri Lanka<br />
Brazil<br />
Australia<br />
Sweden<br />
US<br />
Myanmar (Burma)<br />
Mozambique<br />
PACIFIC<br />
OCEAN<br />
Brazil<br />
• Topaz<br />
• Spessartite garnet<br />
• Yellow beryl (Heliodor)<br />
• Amber<br />
Madagascar<br />
ATLANTIC<br />
OCEAN<br />
• Topaz<br />
• Spessartite garnet<br />
• Yellow beryl (Heliodor)<br />
• Amber<br />
ARCTIC<br />
OCEAN<br />
Sri Lanka<br />
• Yellow zircon<br />
• Topaz<br />
• Yellow & orange sapphire<br />
• Spessartite Garnet<br />
• Yellow Beryl (Heliodor)<br />
Myanmar (Burma)<br />
• Topaz<br />
• Yellow & orange sapphire<br />
• Spessartitie garnet<br />
• Golden South Sea Pearls<br />
INDIAN<br />
OCEAN<br />
SPECIAL MENTION<br />
Australia<br />
Golden South Sea pearls<br />
PACIFIC<br />
OCEAN<br />
Yellow & Orange<br />
Diamond<br />
South Africa<br />
Canada<br />
Australia<br />
Russia<br />
Yellow Beryl<br />
(Heliodor)<br />
Namibia<br />
Madagascar<br />
Brazil<br />
Nigeria<br />
Zimbabwe<br />
Sri Lanka<br />
Russia<br />
Golden South<br />
Sea Pearls<br />
The Philippines<br />
Indonesia<br />
Australia<br />
Myanmar<br />
(Burma)<br />
Amber<br />
Dominican<br />
Republic<br />
Latvia<br />
Estonia<br />
Lithuania<br />
Madagascar<br />
Carnelian<br />
Indonesia<br />
Brazil<br />
Pakistan<br />
Russia<br />
Germany<br />
Old Hollywood<br />
stars Greta<br />
Garbo and Joan<br />
Crawford were<br />
famous fans of<br />
citrine jewellery<br />
"The colours<br />
red, blue<br />
and green<br />
are real.<br />
The colour<br />
yellow is<br />
a mystical<br />
experience<br />
shared by<br />
everybody"<br />
TOM STOPPARD<br />
In the 17th<br />
Century, Scottish<br />
weapon makers<br />
set dagger handles<br />
with citrine and<br />
the gemstone later<br />
became popular<br />
for traditional<br />
Scottish kilt pins<br />
and shoulder<br />
brooches<br />
105 tonnes – estimated amount of<br />
amber produced by Palaeogene forests<br />
of Northern Europe<br />
There is a sun, a light that for<br />
want of another word I can<br />
only call yellow, pale sulphur<br />
yellow, pale golden citron.<br />
How lovely yellow is!"<br />
VINCENT VAN GOGH<br />
31,000<br />
carats<br />
WEIGHT OF THE<br />
LARGEST FACETED<br />
GEMSTONE IN THE<br />
WORLD, THE<br />
EL-DORADO TOPAZ<br />
1835<br />
The year fire opal deposits were<br />
found in Queretaro, Mexico<br />
The word 'electricity' comes from the Ancient Greek<br />
word for amber, elektron, for its ability to produce<br />
static electricity when rubbed<br />
Ancient Egyptians<br />
believed carnelian was<br />
the blood of the goddess<br />
Isis, and would place<br />
carnelian amulets upon<br />
the throats of dead bodies<br />
Citrine was known as "the<br />
money stone" or "the merchant's<br />
stone" in the Middle Ages, as<br />
it was believed it would bring<br />
wealth to whoever wore it<br />
Carnelian, garnet, yellow<br />
zircon, and citrine are<br />
all believed to have been<br />
embedded in the breastplate<br />
of the Biblical figure Aaron<br />
Many orange and yellow gemstones,<br />
including topaz and heliodor, were once<br />
believed to harness the power of the sun<br />
While inexpensive,<br />
natural citrine is<br />
remarkably rare; most<br />
commercially-available<br />
specimens are in fact<br />
heat-treated amethyst<br />
62 | <strong>November</strong> <strong>2021</strong>
ORANGE & YELLOW<br />
Colour Investigation<br />
Brilliant transparent gemstones in warm tropical tones<br />
of pale lemon, rich gold, delicate apricot or vivid saffron<br />
can be challenging to identify. What could they be?<br />
First in affordability and popularity is the quartz family<br />
– from the delicate pastel tones of ‘lemon quartz’ to<br />
the vibrant, vivid orange hues of citrine and all shades<br />
in-between.<br />
UNDERSTANDING GEMSTONE COLOUR<br />
Sunset magic:<br />
Orange & yellow gemstones<br />
For centuries, orange and yellow gemstones have enraptured jewellers and jewellery-lovers,<br />
with mystical properties attributed to their warm, sun-like glow, <strong>Jeweller</strong> discovers.<br />
Citrine is commonly confused with a similarly-coloured<br />
but more expensive topaz.<br />
Natural citrine is the most valuable form of quartz, and<br />
extremely rare. It occurs when amethyst formations are<br />
close to natural heat sources in the Earth's crust.<br />
It ranges in colour from a shade of light gold through to a<br />
fiery reddened-yellow and owes its hue to traces of ferric iron.<br />
The majority of citrine on the market, however, is actually<br />
heat-treated purple amethyst.<br />
This heat treatment – involving temperatures up to 560<br />
degrees – helps replicate the yellow, gold and amber<br />
shades of natural citrine and is clearly recognisable to a<br />
trained professional by the subtle stripes that the process<br />
leaves on the gem.stone<br />
Heat-treated citrine is readily available, very affordable<br />
and extremely durable.<br />
The best specimens of natural citrine come from Brazil,<br />
mined in Rio Grande do Sul. Other deposits include<br />
Madagascar, the US, Spain and Africa.<br />
Traditionally the darker shades have held more value but<br />
recently consumer preference leans towards brighter<br />
lemony hues.<br />
Indeed, the name citrine is derived from the French word<br />
63<br />
Legend says it acts as an energising stone against<br />
issues of willpower, optimism, confidence and self-<br />
FULL PAGE<br />
discipline.<br />
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FACTS<br />
105t<br />
estimated<br />
weight of amber<br />
produced from<br />
Europe's forests<br />
in the Paleogene<br />
1556<br />
year the term<br />
citrine was first<br />
used to describe<br />
the gemstone<br />
6.2kg<br />
weight of the El<br />
Dorado Topaz,<br />
the world's<br />
largest faceted<br />
gemstone<br />
citrin, meaning lemon-coloured. In this shade, citrine is<br />
often confused with orange topaz.<br />
There are few references in history to citrine, perhaps<br />
because of the stone's rarity.<br />
The first occurrences seem to be the use of citrine by<br />
Romans for intaglio and cabochon in the centuries<br />
immediately following the birth of Christ.<br />
Citrine saw increased use as a gemstone in jewellery<br />
during the Romantic Age (1837-1860).<br />
Today, citrine is widely used in many jewellery styles.<br />
The sunny gemstone’s beautiful colours can brighten<br />
almost any jewellery style, although it goes particularly<br />
well with yellow gold.<br />
An inexpensive gem, citrine is the perfect stone for<br />
popular free-form fancy cuts for unique and custommade<br />
pieces.<br />
Like all crystal quartzes, citrine has a hardness of 7 on<br />
Mohs’ scale and is largely insensitive to scratches. It<br />
will also withstand a few knocks, too, since its cleavage<br />
properties are non-existent.<br />
The gemstone’s durability makes it a suitable keepsake.<br />
Indeed, citrine is the modern birthstone for <strong>November</strong><br />
and also the stone for the 13th year of marriage.<br />
Like citrine, topaz is the birthstone of <strong>November</strong>. Yellow<br />
topaz is often confused with citrine due to its similar colour.<br />
Topaz is allochromatic, meaning it derives colour from<br />
impurities and defects in its crystal structure; this<br />
<strong>November</strong> <strong>2021</strong> | 63
Colour Investigation | ORANGE & YELLOW GEMSTONES<br />
ORANGE & YELLOW GEMSTONES<br />
GOLDEN SOUTH SEA PEARLS<br />
PHILIPPINE<br />
ISLANDS<br />
Officially the worlds oldest gem, pearls have<br />
been surrounded in history, legend and<br />
mysticism since before written history, with<br />
discoveries such as pearl jewellery found in<br />
a royal sarcophagus dating back to 420BCE.<br />
Pearls were also often presented as gifts<br />
to Chinese royalty as early as 2300BCE,<br />
while in ancient Rome they were considered<br />
to be a status symbol and laws were<br />
passed allowing pearls to be worn only<br />
by the ruling classes.<br />
The only way of sourcing pearls was by<br />
collecting wild oysters.<br />
It could take up to a tonne of wild oysters<br />
to find just three or four quality pearls.<br />
The increasing demand for natural pearls<br />
by the 19th Century meant oyster supplies<br />
began to decline.<br />
In the late 1800s, the concept of culturing<br />
pearls was developed, with Kokichi<br />
Mikimoto becoming perhaps the most<br />
famous for commercialising and marketing<br />
this industry.<br />
Pearls can be cultured in various species of<br />
oyster, in both fresh and saltwater, producing<br />
different finished pearls with different<br />
attributes – and thus value.<br />
Saltwater pearls take up to four years to<br />
produce a pearl, with each oyster generally<br />
producing just one pearl for each cycle.<br />
They are highly sensitive to their<br />
environment and subtle changes in their<br />
surroundings can directly affect the<br />
oyster's health. Therefore, saltwater pearl<br />
farms generally are located in pristine<br />
environmental conditions.<br />
Golden South Sea pearls are cultured from<br />
the gold-lipped Pinctada maxima along<br />
the Philippine, Indonesian, and Australian<br />
coastlines and are valued for their size and<br />
their unique lustre,<br />
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explains the vast array of topaz hues.<br />
However, sherry topaz – named after the variety of wine – is<br />
perhaps the best-known and most traditional topaz colour,<br />
ranging from yellowish brown to orange.<br />
Often, specimens that fall within this colour range are called<br />
'precious topaz' to distinguish them from less-expensive citrine.<br />
Topaz has been known as a gemstone for at least 2,000 years<br />
and is believed to take its name from the island the Ancient<br />
Greeks knew as Topazios – modern day Zabargad.<br />
The sunny gemstone’s beautiful<br />
colours can brighten almost any<br />
jewellery style, although it goes<br />
particularly well with yellow gold. An<br />
inexpensive gem, citrine is the perfect<br />
stone for popular free-form fancy cuts<br />
for unique and custom-made pieces”<br />
Harry Winston<br />
Scholars also trace its name back to the Sanskrit word tapaz,<br />
meaning "fire".<br />
Brazil is the principal source of gem-quality topaz, with the<br />
region Minas Gerais producing large yellow to orange crystals.<br />
Sapphire and garnet<br />
Next comes sapphire, from the corundum family. Like topaz, it<br />
is allochromatic.<br />
On the yellow to orange spectrum, colours range from stronglysaturated<br />
golden yellows typical in Australia to soft pastel<br />
tones seen in Ceylon sapphires.<br />
Other treatments must be disclosed if they significantly alter a<br />
gemstone’s appearance and value.<br />
Beryllium surface or sub-surface lattice diffusion has been<br />
used since the early 2000s. This treatment transforms lowquality<br />
off-colour corundum into beautiful, vibrant yellow or<br />
orange using heat treatment in combination with beryllium.<br />
Meanwhile, some of the most vibrant yellow and orange<br />
gemstones are from the beloved garnet family.<br />
In its finest quality, spessartite garnet is Fanta-orange, malaya<br />
garnet is orange to reddish-orange and hessonite garnet<br />
ranges from orange to brownish-yellow to brownish-red.<br />
Spessartite – also known as spessartine – is named for the<br />
German region of Spessart, Bavaria, where the mineral was<br />
first discovered.<br />
Today, most spessartite garnet originates from Africa, with<br />
deposits of high-quality material found Namibia and Nigeria in<br />
the 1990s.<br />
In recent times, spessartite deposits are active in Mozambique<br />
and Madagascar, though supply is relatively limited.<br />
Spessartite is a manganese aluminum silicate; the element<br />
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Colour Investigation | ORANGE & YELLOW GEMSTONES<br />
<strong>Jeweller</strong>y Theatre<br />
manganese gives it its distinctive orange colour.<br />
A mixture of spessartite and iron-rich almandine<br />
garnet produces a reddish-orange effect.<br />
Yellow and orange zircon<br />
Zircon is the oldest mineral on earth and Australia<br />
boasts the oldest deposits dating back more than<br />
4.4 billion years.<br />
The most famous source of Australian zircon is the Mud<br />
Tank Zircon Field, found in an area known as the Harts<br />
Range, which is situated 1,220 km south to southeast of<br />
Darwin in the Northern Territory of Australia.<br />
This field, first explored in the 1940s, is well-known<br />
amongst fossickers for producing top-quality<br />
zircon and includes two areas called Zircon Hill and<br />
Specimen Hill.<br />
The zircons found here display beautiful earthy tones<br />
of cinnamon, sherry, cognac, pinks, plums, oranges,<br />
yellow and even parti-coloured and colourless.<br />
Gemstones may occur as small, doubly-terminated<br />
crystals or chips, and larger specimens may show<br />
well-developed crystal faces. Waterworn zircon crystals<br />
occur in the low-lying areas between the two hills.<br />
Zircon is found intermixed with sapphire in deposits<br />
associated with tertiary volcanic deposits from<br />
Tasmania to Northern Queensland.<br />
This is particularly true on the gemfields of Northern<br />
NSW and Central Queensland where they range in<br />
colour from colourless through to champagne and<br />
orange-red.<br />
Sometimes Australian zircons are heated to lighten<br />
them or make them colourless. Most zircon deposits<br />
originate from Maynamr (Burma) Burma but other<br />
world sources include Sri Lanka, Cambodia, Brazil,<br />
Africa, Madagascar, Thailand and Vietnam.<br />
Zircon is prized for its diamond-like lustre, intense<br />
fire, brilliance and strong double refraction and<br />
it’s these qualities that separate it from its many<br />
imitators. Golden brown zircon can appear similar to<br />
topaz or citrine.<br />
Zircon sometimes contains traces of uranium,<br />
irradiating itself and changing its properties. For this<br />
reason, zircon is classified into three types – high,<br />
intermediate and low.<br />
Amber and pearl<br />
As natural gemstones – that is, formed through<br />
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S&S<br />
organic processes – amber and golden South Sea pearls reflect<br />
the warm, rich hues found in nature.<br />
STONES& SILVER<br />
STERLING SILVER JEWELLERY<br />
Golden South Sea pearls are among the largest and most<br />
valuable pearls, grown in the gold-lipped variety of Pinctada<br />
maxima oysters over a period of two to four years – far longer<br />
than freshwater or Akoya pearl varieties.<br />
Unlike white South Sea pearls, which are primarily farmed in<br />
Australia, golden South Sea pearls are predominantly grown<br />
in the Philippines and Indonesia, with a minority sourced from<br />
Australia and occasionally Myanmar (Burma).<br />
Their natural colour requires no enhancement and is the<br />
primary determinant of their value; the richer the golden tone,<br />
the more highly prized the pearl.<br />
The deepest golden tone is often referred to as '24 carat'.<br />
Amber, meanwhile, is one of the more well-known organic<br />
gems is fossilised tree resin prized for its rich golden hues.<br />
When plant or animal fragments are suspended within the<br />
material, they can offer a fascinating peek into our planet’s<br />
primordial past.<br />
It ranges in colour, but the best-known specimens are yellow<br />
to yellow-brown.<br />
[Golden South Sea pearls'] natural<br />
colour requires no enhancement<br />
and is the primary determinant of<br />
their value; the richer the golden<br />
tone, the more highly prized the pearl.<br />
The deepest golden tone is often<br />
referred to as '24 carat'”<br />
Chemically, amber is a hydrocarbon – a compound of carbon,<br />
oxygen and hydrogen – although the chemical constituents vary<br />
between sources worldwide.<br />
Unearthed predominantly in the Baltic Sea region of Europe,<br />
it is also found in the Dominican Republic, Myanmar (Burma),<br />
Mexico and some other European localities.<br />
Not all tree resin is destined to become amber. Much like all<br />
fossils, there are specific environmental conditions of heat,<br />
pressure and biology that are required for the fossilisation to<br />
take place.<br />
The two-part process of transformation from tree resin to<br />
amber is called ‘amberisation’.<br />
Over the course of 2–10 million years, the resin begins to harden<br />
through a process of molecular polymerisation. Here, the resin<br />
must be in an anaerobic (oxygen-free) condition under layers of<br />
overlying sediment, where pressure and heat can transform the<br />
soft resin into harder and more stable ‘copal’ resin.<br />
From here, sustained heat and pressure can further evaporate<br />
terpenes (organic compounds within the resin) to form a hard,<br />
solid natural plastic – amber.<br />
Ph: +61 3 9587 1215<br />
Email: info@stonesandsilver.com.au<br />
stonesandsilver.com.au
Colour Investigation | ORANGE & YELLOW GEMSTONES<br />
GEMSTONE FACTS<br />
ZIRCON<br />
'Zircon' has a complex<br />
etymology; it comes from<br />
the German zirkon, a<br />
translation of the term<br />
jargoon which was<br />
applied by gem traders to<br />
lighter-coloured zircon;<br />
jargoon is a corruption of<br />
the Persian word zargun,<br />
meaning 'golden-hued'<br />
Zircon is the oldest mineral<br />
on Earth, and Australia<br />
boasts the oldest deposits,<br />
dated to 4.4 billion years ago<br />
Due to its wide range of<br />
colours, zircon was known<br />
by many names, including<br />
'jacinth' – mentioned in the<br />
Bible – and hyacinth<br />
Evidence suggests that Baltic and Dominican amber were created<br />
in a very specific anaerobic environment – extended immersion<br />
under seawater.<br />
While amber may be transparent through to opaque, transparent<br />
material is typically the most sought after. The darker, reddish<br />
material is more valuable, but inclusions play a huge part in the<br />
final value.<br />
Carnelian<br />
Carnelian is a translucent stone available in varying shades that<br />
range from flesh pink to burnt orange, red and brown.<br />
It was argued that carnelian's colour was reminiscent of bloodied<br />
human flesh and this explains the derivation of its name: carne<br />
being Latin for flesh or meat.<br />
Although the gemstone is comprised primarily of silicon dioxide,<br />
it owes its warm tones to the iron oxide impurities it contains.<br />
Deposits of carnelian are found close to the Earth's surface where<br />
conditions are cooler and less pressurised.<br />
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Carnelian is a member of the chalcedony family. As<br />
microcrystalline forms of quartz, chalcedony gems are among the<br />
most abundant on Earth. Consequently, carnelian can be found in<br />
numerous countries all over the world.<br />
Uruguay and Japan are among the most popular locations, however<br />
the main source of carnelian is Campo de Maia in South America.<br />
Many of the specimens derived from here are colour treated with<br />
ferrous nitrate to enhance their hue.<br />
Of all the places carnelian is found, India is regarded by the jewellery<br />
industry as the place where the best-quality examples are found.<br />
Numerous pieces of jewellery containing carnelian were uncovered<br />
in ancient Egyptian tombs. So strong was the Egyptian peoples'<br />
faith in carnelian that, along with turquoise and lapis lazuli, it was<br />
the most used stone in ancient Egyptian jewellery.<br />
In the Middle East, many feared the superstitious power of the 'evil<br />
eye', an amulet comprised of various gems, including turquoise.<br />
Carnelian was carved into pendants and inscribed with prayers that
IP141E-RGP<br />
IP200NRGP-P<br />
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were believed to ward off evil glances.<br />
Modern-day uses see carnelian cut as cabochons and used in all<br />
types of jewellery, particularly beads and cameo brooches.<br />
Fire opal<br />
Opal is famous for the incredible array of colours displayed, from<br />
vibrant reds – the most prized – to velvety purples and everything<br />
in between.<br />
IPRS40-RGP-W<br />
With such incredible opal specimens here in our backyard,<br />
international varieties are often lesser known and less available.<br />
Fire opal is the transparent to translucent variety of opal with<br />
a yellow, orange, or even ruby red body-colour, also known as<br />
‘Mexican opal’ – derived from the hue and the most well-known<br />
locality of this material.<br />
Fire opal rarely displays play-of-colour, yet it attracts collectors<br />
based on the body-colour alone – a primary distinction from the<br />
better-known types of opal.<br />
Opals with play-of-colour are termed precious opal, whereas those<br />
without are called common opal. Although fire opal may be either,<br />
the presence of play-of-colour commands a higher price.<br />
The regions of Querétaro and Jalisco in Mexico are major producers<br />
of fire opal, though other regions include Michoacán, as well<br />
as Bemia in Madagascar, Kazakhstan, Turkey, Ethiopia, Java in<br />
Indonesia, and the US state of Oregon.<br />
The opal localities of Mexico were discovered accidentally by<br />
labourers around 1835.<br />
Organised mining efforts commenced circa 1870, although it is<br />
believed these deposits may have been known to the Mayan and<br />
Aztec people who used fire opal in art and ritualistic ceremonies,<br />
significantly extending the history of these gemstones.<br />
The vibrant hues are owed to the presence of particularly minute<br />
inclusions, coloured by iron.<br />
IP98E-RGP<br />
IP98P-RGP<br />
Given that play-of-colour is less prevalent, and these fire opals are<br />
admired for their body-colour, they are often faceted rather than<br />
just fashioned into the cabochon or freeform shapes commonly<br />
seen in other types of opal.<br />
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ORANGE & YELLOW<br />
Red Carpet Collection<br />
STARS SHINE IN COLOUR<br />
Gemstones in the Spotlight<br />
The A-list have given their seal of approval to statement gems – be inspired by these colourful jewellery pieces worn on the red carpet.<br />
4 Inspired by Plumeria<br />
flowers, these earrings by<br />
Nadine <strong>Jeweller</strong>y takes<br />
centre stage. Composed<br />
of oval cognac-coloured<br />
beryls and accentuated<br />
by bright white diamonds,<br />
it symbolises rebirth,<br />
and is part of a suite of<br />
matching jewellery<br />
Lorraine Schwartz<br />
Nadine <strong>Jeweller</strong>y<br />
CITRINE – Megan Fox, Met Gala <strong>2021</strong><br />
YELLOW BERYL – Alessandra Ambrosio,<br />
Cannes Film Festival in 2018<br />
Tasaki<br />
SOUTH SEA PEARL – Diane Kruger, Met<br />
Gala <strong>2021</strong><br />
Chopard<br />
ORANGE AND YELLOW SAPPHIRE –<br />
Julianne Moore, CMet Gala 2017<br />
Lorraine Schwartz<br />
ORANGE SAPPHIRE – Camila Mendes,<br />
Vanity Fair Oscar party 2019<br />
Chopard<br />
TOPAZ – Maria Borges,<br />
Cannes Film Festival 2019<br />
4 Matching 12.4mm golden<br />
south sea pearls steal the<br />
show in Chanel's San Marco<br />
earrings. Set in yellow gold<br />
with 2-carats of brilliant-cut<br />
white diamonds, 1.90-carats<br />
of yellow sapphires and<br />
embellished with 12 cultured<br />
Japanese pearls, it has<br />
matching necklace and ring<br />
Chanel<br />
Chopard<br />
YELLOW SAPPHIRE AND SOUTH SEA PEARL –<br />
Margot Robbie, SAG Awards 2019<br />
ORANGE AND YELLOW DIAMOND –<br />
Winnie Harlow, Met Gala 2019
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3The legenday cushioncut<br />
Tiffany Yellow Diamond<br />
weighs 128.54-carats and<br />
was found in the South African<br />
Kimberley diamond mines in<br />
1877. It is suspended from a<br />
necklace of white diamonds<br />
weighing over 100 total carats,<br />
and has only been worn by<br />
Audrey Hepburn, Lady Gaga<br />
and Beyonce.<br />
Tiffany & Co.<br />
YELLOW DIAMOND – Lady Gaga, Academy<br />
Awards 2019<br />
4 Fred Leighton<br />
is home to this<br />
1940s vintage<br />
Trabert & Hoeffer<br />
Mauboussin hinged<br />
cuff bracelet featuring<br />
a 147.45-carat<br />
emerald cut citrine<br />
with 24.50-carats<br />
of amethyst and<br />
4-carats of white<br />
diamond set in green<br />
and rose gold.<br />
Fred Leighton and Kwiat<br />
CITRINE AND YELLOW DIAMOND – Iman,<br />
Met Gala <strong>2021</strong><br />
3 Set into bezels of<br />
18-carat yellow gold<br />
with white diamond<br />
accents, this classic<br />
Tiffany & Co's imperial<br />
topaz necklace with<br />
matching earrings<br />
feature in the 2019 Blue<br />
Book Collection.<br />
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Topaz – Kendall Jenner, Met Gala 2019<br />
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Stars shine in colour | GEMSTONES IN THE SPOTLIGHT<br />
Red Carpet ‘Gemstones in the Spotlight’ continued...<br />
4 These timeless drop<br />
earrings by De Beers'<br />
Forevermark feature<br />
10.43-carats of radiantcut<br />
vivid yellow diamond.<br />
Set in platinum and<br />
18-carat white gold, it is<br />
worth over US$1 million.<br />
Bulgari<br />
Irene Neuwirth<br />
CARNELIAN – Olivia Wilde, Golden Globes<br />
2016<br />
YELLOW DIAMOND – Amanda Seyfried,<br />
Golden Globes <strong>2021</strong><br />
Fred Leighton<br />
CITRINE – Kirsten Dunst, Venice File<br />
Festival <strong>2021</strong><br />
Lorraine Schwartz<br />
ORANGE DIAMOND – Heidi Klum, Golden<br />
Globes 2013<br />
Mikimoto<br />
SOUTH SEA PEARL – Sarah Hyland,<br />
Golden Globes 2011<br />
Pasquale Bruni<br />
YELLOW BERYL – Dita Von Teese, Elton<br />
John Oscars Viewing Party 2016<br />
4 These knockout<br />
chandelier earrings by<br />
Dubai-based designer<br />
Amwaj feature giant<br />
emerald-cut citrines set<br />
in 18-carat white gold<br />
and heavily accented with<br />
pear shaped diamonds.<br />
Glen Spiro<br />
Amwaj<br />
CARNELIAN – Gwyneth Paltrow, Met Gala<br />
2019<br />
CITRINE – Poppy Delevingne, Emmy<br />
Awards 2018
Chopard<br />
YELLOW DIAMOND – Sharon Stone,<br />
Cannes Film Festival <strong>2021</strong><br />
Gucci<br />
YELLOW BERYL – Jodie Turner Smith,<br />
Cannes Film Festival <strong>2021</strong><br />
5 From Gucci's recent Hortus<br />
Deliciarum high jewellery<br />
collection, this 18-carat yellow<br />
gold necklace features 131.10<br />
carats of yellow beryls paired<br />
with white diamonds.<br />
Lorraine Schwartz<br />
YELLOW DIAMOND AND SOUTH SEA<br />
PEARL – Julianne Moore, Gotham<br />
independent film awards 2012<br />
Bulgari<br />
YELLOW DIAMOND – Zendaya, Academy<br />
Awards <strong>2021</strong>
BUSINESS<br />
Strategy<br />
The existential question<br />
facing every retailer today<br />
Amid growing competition and pressure in the retail environment, innovation and<br />
creativity offer a path to continued relevance and viability, writes DOUG STEPHENS.<br />
Bad retailers will never run out of<br />
customers; history suggests that there<br />
is always a segment of the consumer<br />
population willing to ‘trade down’ if they<br />
believe they can save a dollar or two.<br />
Some retailers, like long-beleaguered US<br />
department store JC Penney, have spent<br />
decades proving this thesis.<br />
However, such retailers will eventually run<br />
out of brands to stock, and the reason for<br />
that comes down to simple maths.<br />
At its core, retail has always been a value<br />
exchange between brands – that is, the<br />
businesses that manufacture branded<br />
product lines – consumers, and retailers,<br />
with retailers occupying the precarious<br />
middle part of the equation.<br />
For the relationship to hold, each party<br />
must contribute value to the others. But<br />
in a post-industrial, increasingly postdigital,<br />
and post-pandemic world, the<br />
retailer’s place in that equation has become<br />
more complicated.<br />
The value equation<br />
Only a decade or two ago, delivering value<br />
as a retailer was relatively simple.<br />
Brands brought product design, quality, and<br />
name recognition, while consumers brought<br />
demand and dollars.<br />
And retailers, in most cases, needed only<br />
to provide physical points of distribution for<br />
products, coupled with a willingness to relay<br />
product information on behalf of the brand<br />
to consumers.<br />
Everyone was satisfied.<br />
The problem today is that while the value<br />
contributed by brands and consumers<br />
has remained more-or-less constant, the<br />
contribution traditionally made by retailers<br />
is now all but worthless.<br />
Consumers, with the internet at their<br />
fingertips, no longer require retailers to act<br />
as porters of product information.<br />
Likewise, brands, with unmitigated<br />
digital access to hundreds of millions of<br />
consumers, no longer need to rely on<br />
a third-party retailer’s physical assets<br />
for customer acquisition or product<br />
distribution.<br />
In other words, consumers and brands<br />
have all the tools they need to carry on quite<br />
capably without retailers.<br />
It has all driven<br />
us to a rather<br />
dramatic<br />
moment in retail<br />
history; a point<br />
where retailers<br />
across all<br />
categories have<br />
to completely<br />
re-think the<br />
value they bring<br />
to their part of<br />
the equation<br />
Hence, brands like Nike are ramping up<br />
their direct-to-consumer strategies.<br />
It has all driven us to a rather dramatic<br />
moment in retail history; a point where<br />
retailers across all categories have to<br />
completely re-think the value they bring to<br />
their part of the equation.<br />
They must once and for all retire easy<br />
scapegoats like Amazon, e-commerce<br />
and Millennials because the real enemy is<br />
none of these external forces, but rather<br />
their own failures to beat back irrelevance,<br />
a condition for which there is only one cure<br />
– reinvention and the contribution of new<br />
radical value, not only for consumers but for<br />
brands, too.<br />
Defining ‘radical value’<br />
This notion of radical value is important.<br />
Take, for example, Amazon. Love it or not,<br />
brands are drawn by the tens of thousands<br />
to sell on Amazon because Amazon<br />
radically redefined our sense of selection<br />
and convenience and in the process, formed<br />
a global tribe of Prime Members nearly 200<br />
million deep.<br />
Similarly, China’s Alibaba has executed a<br />
74 | <strong>November</strong> <strong>2021</strong>
Business Strategy<br />
radical level of integration into the lives of<br />
its customers, offering brands access to the<br />
world’s largest single market of shoppers.<br />
In order to survive, all retailers must create<br />
similarly radical levels of value.<br />
It starts with creating radical value for<br />
customers. Retailers can and must create<br />
radical value in one or more of four areas:<br />
• Cultural value – Outdoor clothing<br />
retailer Patagonia creates radical cultural<br />
value through its single-minded focus on<br />
environmental stewardship, placing this<br />
imperative at the core of everything the<br />
business does including its financial model.<br />
This makes Patagonia as much a social<br />
movement as a retailer; the commitment to<br />
the environment acts as a lightning rod for<br />
like-minded customers and staff.<br />
All organisational objectives,<br />
communications and initiatives ‘ladder’<br />
back up to environmental protection,<br />
making Patagonia a ‘tribal ‘outpost for<br />
customers who share its values.<br />
• Entertainment value – Retailers can also<br />
create customer value with entertainment;<br />
UK department store Selfridges creates<br />
radical entertainment value through an<br />
intense focus on experience.<br />
From streetwear departments with skate<br />
bowls to creative pop-ups and unique food<br />
and beverage installations, the experience<br />
at Selfridges has, to a great extent, become<br />
the product itself.<br />
The years leading up to the pandemic saw<br />
the retailer make huge investments in what<br />
managing director Andrew Keith recently<br />
called “all the magic that goes on in the<br />
store”.<br />
• Expertise value – New York’s Allure Store,<br />
a partnership between Allure magazine<br />
publisher Condé Nast and retail platform<br />
Stour, delivers radical expertise value in<br />
its category – beauty products – through<br />
authority. This authority is established via<br />
the staff.<br />
The Allure beauty store – to which I am an<br />
advisor – does not hire retail workers but<br />
instead beauty influencers.<br />
The result is a dynamic team of influential<br />
beauty experts, all of whom speak with<br />
authority from personal and professional<br />
experience. They do so both in-store and<br />
through social media content shared to the<br />
retailer’s growing legion of followers.<br />
• Product/channel value – Finally, there are<br />
retailers that bring radical levels of product<br />
design, channel control or consolidation to<br />
the table.<br />
Luxottica, for example, is estimated to<br />
control 40–60 percent of the global eyewear<br />
market, making it almost impossible to do<br />
business in the optical category without<br />
doing business with Luxottica.<br />
Retailers that so thoroughly control access<br />
and distribution within a category carry<br />
obvious value to consumers as a go-to<br />
destination.<br />
Other retailers create products that become<br />
so dominant in their categories that they<br />
become a magnet for associated products.<br />
Apple is an obvious example; if you<br />
manufacture iPhone cases or any other<br />
tech accessory, chances are you’d clamour<br />
to obtain space in an Apple store because<br />
Apple contributes radical levels of design to<br />
both its products and its stores.<br />
Value creation for retailers<br />
What’s particularly interesting is that, in<br />
most cases, the same retailers that create<br />
radical value for consumers also tend to<br />
create equally radical levels of value for the<br />
brands they stock.<br />
In becoming a cultural flagbearer for<br />
the environment, Patagonia brings to<br />
its ‘brand partners’ an army of loyal and<br />
highly-engaged customers to whom they<br />
otherwise wouldn’t have such easy access.<br />
Another example is the US retailer Camp,<br />
which sells children’s toys, activity sets,<br />
books, and more.<br />
Camp creates in-store theatre and events<br />
for parents and children, marketing itself as<br />
a ‘family experience company’.<br />
In doing so, the business provides handson<br />
and contextual opportunities for<br />
children to engage with brands’ products;<br />
opportunities that simply can’t be delivered<br />
online or in other more conventional toy<br />
stores.<br />
ADDED<br />
VALUE<br />
Understand<br />
your offer<br />
It is imperative<br />
that retailers<br />
understand their<br />
role in the 'value<br />
equation'<br />
Delight your<br />
customers<br />
Develop<br />
new ways of<br />
attracting and<br />
fascinating<br />
shoppers<br />
Boost your<br />
brands<br />
Strategise how<br />
to make the<br />
most of branded<br />
products and<br />
develop close<br />
relationships<br />
with suppliers<br />
The retail technology start-up B8TA is<br />
another intriguing example. Not only<br />
does the business attract a particularly<br />
passionate segment of the market, but<br />
its model is based on in-store product<br />
demonstrations and presentations.<br />
Manufacturers pay to rent out space for<br />
their product to be displayed inside B8TA’s<br />
retail locations, along with a tablet that each<br />
brand customises with software.<br />
This model offers the manufacturers<br />
access to robust data, providing them with<br />
consumer intelligence and insights they<br />
wouldn’t otherwise access.<br />
Similarly, the Allure Store, mentioned<br />
previously, also acts as a marketing ‘flywheel’<br />
for brands, producing compelling<br />
product content and in-store activations,<br />
all of which would carry significant cost if<br />
brands were to produce it themselves.<br />
The common thread here is that these<br />
retailers are fundamentally changing the<br />
conversation they’re having with brands.<br />
For too long, we’ve assumed the<br />
retailer-brand relationship to be<br />
transactional – purely based on volume,<br />
margin, and incentives.<br />
But brands today are asking for more; they<br />
want market intelligence, they want – at the<br />
very least – ‘co-ownership’ of the customer<br />
relationship where loyalty is shared, they<br />
want their unique ‘brand story’ articulated<br />
and animated with excellence, and they want<br />
their prices treated with integrity.<br />
Retailers that appreciate this shift and<br />
deliver radical value back to brands will<br />
perform better in the long-term than those<br />
retailers who do nothing but extract value<br />
from the relationship.<br />
Because, in the end, retailers that do not<br />
become a source of radical value for brands<br />
will awaken one day to find their sales floors<br />
empty of branded goods.<br />
DOUG STEPHENS is founder and CEO<br />
of Retail Prophet and the author of three<br />
books on the future of retail, including<br />
the recently released ‘Resurrecting<br />
Retail: The Future of Business in a Post-<br />
Pandemic World.’ Visit: retailprophet.com<br />
<strong>November</strong> <strong>2021</strong> | 75
BUSINESS<br />
Selling<br />
Crucial strategies for selling to<br />
different personality types<br />
BRI WILLIAMS reveals how to tailor your sales message to the two<br />
types of consumers – promotion-focused and prevention-focused.<br />
There’s a wealth of research on how best<br />
to frame your sales message to appeal to<br />
your audience.<br />
For example, advertisements that are<br />
framed positively work best for people<br />
who are promotion-focused – in other<br />
words, people who seek to maximise the<br />
probability of obtaining a positive outcome.<br />
For these promotion-focused people you<br />
can talk about the benefits they’ll enjoy<br />
and what they’ll gain.<br />
It’s a little more nuanced for the other<br />
type of consumers, who are prevention<br />
focused. These people prefer to avoid<br />
negative outcomes rather than seek<br />
positive ones.<br />
If the product is hedonic – that is,<br />
pleasurable, such as a massage or holiday<br />
–they respond more favourably if the ad is<br />
negative, probably because it assuages any<br />
guilt they may feel for ‘indulging’!<br />
Meanwhile, for utilitarian products – such<br />
as a calculator or car wax – positive<br />
advertising works best.<br />
In separate research, prevention-focused<br />
consumers tend to prefer products with<br />
utilitarian-related attributes; they would<br />
choose a laptop with a long battery life,<br />
while promotion-focused people would<br />
prefer products with hedonic attributes,<br />
such as a laptop with appealing design.<br />
This is all very well, but the question is,<br />
how do you know what type of person you<br />
are dealing with in the first place?<br />
Promotion or prevention?<br />
If you are sending an email, having a<br />
meeting, or conversing with a customer,<br />
how can you determine whether to talk<br />
the benefits up, or focus on avoiding the<br />
downsides?<br />
Here are some characteristics to help you<br />
identify someone’s type.<br />
Promotion-focused people:<br />
• Work and make decisions quickly<br />
• Consider a lot of alternatives<br />
Are your customers prevention-focused or promotion-focused ?<br />
• Are open to new opportunities<br />
• Have a rosy, optimistic outlook<br />
• Plan for the best-case scenario<br />
• Seek positive feedback and lose ‘steam’<br />
without it<br />
• Feel dejected when things go wrong,<br />
and happy when they go right<br />
Meanwhile, prevention-focused people:<br />
• Work and make decisions slowly and<br />
deliberately<br />
• Tend to be accurate<br />
• Are stressed by short deadlines<br />
• Stick to known ways of doing things<br />
• Prepare for the worst<br />
• Are uncomfortable with praise or<br />
optimism<br />
• Feel worried or anxious when things go<br />
wrong, and relieved when things go right<br />
During your interactions with a customer,<br />
you can often pick up on clues during the<br />
course of the conversation.<br />
Applying the knowledge<br />
Once you get an idea of whether a person<br />
is promotion or prevention-focused, you<br />
can address them in a way that maximises<br />
their sense of compatibility.<br />
When<br />
communicating<br />
with promotionfocused<br />
people,<br />
be sure to<br />
compliment<br />
them, as they<br />
respond well<br />
to praise. Use<br />
optimistic<br />
terms and<br />
phrases, such as<br />
‘growth’, ‘gain’,<br />
‘opportunity’,<br />
‘benefits’,<br />
‘chance’, and<br />
‘innovation’<br />
They’ll be more likely to be persuaded by<br />
your message if it ‘fits’ with their style.<br />
When communicating with promotionfocused<br />
people, be sure to compliment<br />
them, as they respond well to praise.<br />
Use optimistic terms and phrases, such<br />
as ‘growth’, ‘gain’, ‘opportunity’, ‘benefits’,<br />
‘chance’, and ‘innovation’. Prime them<br />
to think in a promotion-focused way by<br />
getting them to reflect or express their<br />
hopes and aspirations.<br />
When communicating with preventionfocused<br />
people, remember that they can<br />
be motivated by a gentle critique – though<br />
nothing too personal.<br />
Use terms and phrases related to security,<br />
such as ‘protection’, ‘secure’, ‘avoid’, ‘risk’,<br />
‘thorough’, ‘careful’, ‘planned’, ‘accurate’.<br />
Prime them to think in a preventionfocused<br />
way by getting them to reflect or<br />
express their duties and obligations.<br />
You can likewise adapt messages about<br />
your product according to whether your<br />
target market is prevention- or promotionoriented.<br />
For example, if framing a luxury car in a<br />
promotion-focused way, the seller might<br />
discuss its performance and design.<br />
Whereas, framing it in a preventionfocused<br />
way, the seller might focus on its<br />
fuel economy and safety standards.<br />
Playing the odds<br />
If all else fails, and in situations where you<br />
can’t pre-determine what the focus of your<br />
target audience is, I suggest playing the<br />
odds and leading with the positive rather<br />
than negative.<br />
A positive message will give you ‘coverage’<br />
across all promotion-focused people and<br />
some prevention-focused types.<br />
BRI WILLIAMS is founder of People<br />
Patterns, a specialist consultancy<br />
that applies behavioural science to<br />
everyday business issues.<br />
Visit: www.briwilliams.com<br />
76 | <strong>November</strong> <strong>2021</strong>
BUSINESS<br />
Management<br />
Three critical keys to a successful strategy<br />
to recover from COVID-19<br />
In the current uncertain environment, DAVE WAKEMAN advises how<br />
business owners can assess and adapt their management strategy.<br />
Like most folks, I’m still unsure of what<br />
stage of the pandemic we are in.<br />
Are we hitting the end of this? Are we in<br />
the rough middle stages?<br />
Is there some big twist that will push us<br />
back to the beginning?<br />
I’m not sure.<br />
What I do know is that this period of time<br />
definitely fits the definition of what many<br />
strategists term a ‘VUCA environment’<br />
– volatile, uncertain, complex, and<br />
ambiguous.<br />
Assisting business owners to think<br />
through dealing with this time has kept<br />
my mind off where we are in the stages<br />
of recovery, or dealing with the pandemic<br />
– for the better, I hope.<br />
All of this thinking over the last few<br />
months has enabled me to put together<br />
a few ideas on managing your business<br />
strategy through this particular<br />
VUCA environment.<br />
Don’t be afraid of choice<br />
Now, more than ever, we should all be<br />
willing to embrace the choices that are<br />
available to us.<br />
We keep hearing about ‘the Great<br />
Resignation’ of employees, particularly<br />
in the US.<br />
That is a reflection of people making a<br />
choice about their lives, their careers,<br />
and what is important to them.<br />
What the research shows us is that<br />
people’s feelings on value have changed;<br />
what they want has changed, and what<br />
they are willing to invest their time,<br />
money, and attention in, has changed.<br />
It is important that you think about this<br />
in the context of yourself, your business,<br />
and your staff.<br />
Expecting that the things that were<br />
certain before the pandemic started will<br />
remain the same is a dangerous bet.<br />
This means that you must embrace<br />
choice and be willing to have the courage<br />
Decision-making can be challenging when times are uncertain.<br />
to make new decisions, adjusting your<br />
strategy if that is what the world around<br />
you – the market, your staff, your<br />
customers – demands.<br />
Know your position<br />
There are only two positioning choices<br />
you can make as a business – a choice<br />
related to your competition, and a choice<br />
related to the nature of your business.<br />
For example, if you decide to use<br />
service as your selling point, you<br />
could say to customers, “Our service<br />
is great,” or alternatively, “You don’t<br />
have to deal with bad service when<br />
you choose us.”<br />
The first one is about your business, the<br />
second is about your competition.<br />
The problem is that too many business<br />
owners attempt to do both and as<br />
a result, get stuck in the middle<br />
of nowhere and end up seeing no<br />
improvement in sales.<br />
As we enter a stage of recovery where<br />
the idea of ‘normal’ or ‘new normal’ is<br />
thrown around – with no context and,<br />
often, no basis in reality – it is important<br />
to understand why people will choose<br />
to work with you, or shop with you, over<br />
your competition.<br />
As French marketing expert Louis<br />
Even in the<br />
best of times,<br />
strategic<br />
decisions<br />
shouldn’t be<br />
things you are<br />
shackled to<br />
for life. The<br />
reality is that<br />
all strategies<br />
eventually stop<br />
working<br />
Grenier says, “Not standing out is the<br />
dangerous path.”<br />
All of us need to understand why folks<br />
are going to pick us and what that says<br />
about how we position ourselves in the<br />
market.<br />
Know this and deal with it.<br />
Be flexible<br />
Even in the best of times, strategic<br />
decisions shouldn’t be things you are<br />
shackled to for life.<br />
The reality is that all strategies<br />
eventually stop working.<br />
As a business owner, it is your job<br />
to understand that you are going to<br />
need to consistently update your<br />
strategy based on new research, new<br />
market conditions and challenges, or<br />
new concepts of value creation.<br />
In a VUCA environment, these ‘inflection<br />
points’ happen much more quickly,<br />
consistently, and radically.<br />
This means that all of us need to<br />
recognise that we must monitor our<br />
environment for signs of change, new<br />
ideas and opportunities, and new<br />
possibilities, more frequently than we<br />
otherwise might.<br />
One of the key ideas that I try to teach<br />
in my strategy work is that the best<br />
approach to being flexible isn’t to make<br />
your decision-making process ‘all or<br />
nothing’.<br />
Rather, it is about recognising the<br />
possibilities so that you can embrace<br />
the one that will give you the best<br />
likelihood of success.<br />
That’s smart in normal times – and,<br />
I’d argue, even smarter now.<br />
DAVE WAKEMAN is a consultant,<br />
writer, and teacher who believes in<br />
profits, not promises. His firm advises<br />
businesses on creating focused<br />
strategies that lead to profitable growth.<br />
Visit: www.davewakeman.com<br />
<strong>November</strong> <strong>2021</strong> | 77
BUSINESS<br />
Marketing & PR<br />
Why marketing and promotion matters:<br />
Building the ark before it rains<br />
BRIDGET BROWN analyses the difference between sales and marketing and<br />
explains why small businesses should invest in a strong marketing strategy.<br />
There is a healthy competition between<br />
the two disciplines, but are sales more<br />
important than marketing?<br />
It’s a question small business owners<br />
must consider because they frequently<br />
wear both hats, being responsible for<br />
increasing sales and developing the<br />
marketing strategy.<br />
Sales is a clear path<br />
Most small business owners focus on<br />
sales, and this makes sense; after all,<br />
if sales aren’t going well, you don’t make<br />
any money!<br />
The problem is, if you don’t have a steady<br />
influx of new customers – or repeat<br />
customers – even the best sales processes<br />
and techniques can’t help you.<br />
There is another reason small businesses<br />
tend to focus on sales strategy, and it can<br />
limit revenue.<br />
That reason is that sales is simple – it<br />
offers a clear path forward.<br />
It is essentially only one thing, and it is easy<br />
to measure and track success.<br />
Plus, if you own a small business, you know<br />
sales are vital, so you push forward with<br />
an emphasis on improving your processes<br />
and techniques.<br />
Marketing, on the other hand, is less<br />
straightforward.<br />
Marketing is about knowing your target<br />
audience and what they want, and shaping<br />
your business to provide that.<br />
This takes a lot of forms, including:<br />
• Branding – Many marketers think of this<br />
as the identity you create for your business<br />
and the personality behind your words; I<br />
consider those tools to shape your brand.<br />
Brand itself is actually the level of<br />
credibility you have in your market, and<br />
what your reputation says about you<br />
• Generating demand – Cultivating and<br />
growing the existing interest in your offer,<br />
as well as looking for new audiences<br />
Stay afloat amid the shifting tides of retail with a solid marketing strategy.<br />
• Lead generation – Attracting people<br />
who are interested in your offer, and<br />
cultivating a relationship with them<br />
• Competitive intelligence – Market<br />
research and assessing your competitors<br />
• Pricing – Determining the value of your<br />
offer, and what your audience is willing<br />
to pay<br />
• Channel strategy – Determining where,<br />
when, and how you sell your offer<br />
Naturally, marketing takes a lot of<br />
effort. Of course, sales also takes<br />
effort, but marketing does not show the<br />
immediate, tangible reward of cash in<br />
hand that sales does.<br />
For that reason, many business owners<br />
try to pretend marketing is optional, rather<br />
than necessary.<br />
To me, both marketing and sales are<br />
important, but marketing should<br />
come first.<br />
Marketing as foundation<br />
Marketing requires a clear message,<br />
carefully chosen tactics, and a strategic<br />
plan. That’s a big lift for a small business.<br />
It seems expensive, and maybe even<br />
optional. I prefer to think of it in another<br />
way – as an investment that will increase in<br />
value over time.<br />
My parents worked in banking and<br />
Robust<br />
marketing is<br />
like building<br />
up that savings<br />
account; you<br />
are constantly<br />
generating leads<br />
which can keep<br />
your business<br />
afloat during<br />
lean times<br />
the lesson they taught us kids was the<br />
importance of saving.<br />
I got my first job at 14 and was obligated to<br />
save a third of my paycheque. It seemed<br />
draconian at the time – I wanted to spend it<br />
all on concert tickets and black lipstick!<br />
While I haven’t always been able to keep my<br />
savings to this level, I have done a good job<br />
of squirrelling some of my income away,<br />
and it has saved me time and again.<br />
There is nothing more freeing than being<br />
able to walk away from a bad job because<br />
you have enough money in the bank to pay<br />
your bills until you find something better.<br />
Think of marketing the same way – as a<br />
hedge against the tough times.<br />
Robust marketing is like building up<br />
that savings account; you are constantly<br />
generating leads which can keep your<br />
business afloat during lean times.<br />
By having a steady stream of incoming<br />
business, you won’t need to worry about<br />
making payroll or keeping the lights on.<br />
You can concentrate on the day-to-day<br />
challenges of serving your customers<br />
because you know you have a plan for<br />
the future.<br />
As the saying goes, the time to build<br />
the ark is before it rains. Creating a<br />
sustainable marketing system is a hedge<br />
against lean or difficult times ahead.<br />
If business slows down, you have the<br />
means to return to profitability – so long as<br />
your marketing plan is running efficiently.<br />
During boom times, building a quality<br />
customer base is a way to capitalise on<br />
your current success and store it away for<br />
the future.<br />
BRIDGET BROWN is founder of<br />
Create That Copy & Marketing, a<br />
Canadian marketing firm focused on<br />
generating leads and increasing sales<br />
and revenue for small businesses. Visit:<br />
createthatcopy.com<br />
78 | <strong>November</strong> <strong>2021</strong>
BUSINESS<br />
Logged On<br />
The hidden power of your website’s FAQ page<br />
The ‘frequently asked questions’ page is often an afterthought when designing a website, but it can provide<br />
opportunities to both promote your business and increase sales, writes DONNA ST JEAN CONTI.<br />
Public relations (PR) practitioners have a<br />
variety of tools at their disposal, with the<br />
press release possibly the most used – but<br />
anothe, the question-and-answer (Q&A)<br />
is used less often, yet it can be highly<br />
effective and useful.<br />
As the playwright Eugène Ionesco wrote,<br />
“It is not the answer that enlightens, but<br />
the question.”<br />
The Q&A is valued by editors, reporters,<br />
and customers alike, as it provides<br />
straightforward information about<br />
a business, its products, and/or<br />
its services.<br />
When crafted well, they lead a reader<br />
through and to the exact message the<br />
communicator wants to deliver.<br />
Addressing common enquiries<br />
When customers or potential customers<br />
want to learn more about you and your<br />
business, an effective way to help them<br />
with this is through a type of Q&A – the<br />
Frequently Asked Questions (FAQ) page on<br />
your website.<br />
But what are these pages for, exactly?<br />
According to Kelli Matthews, a PR<br />
executive and academic, these pages<br />
are essentially edited transcripts of<br />
an interview that “includes both the<br />
interviewer’s direct questions and the<br />
interviewee’s response in written format.”<br />
In an article published by the firm<br />
Allen Hall Public Relations, Matthews<br />
further explains that this format is often<br />
preferable to that of a narrative story,<br />
as it is simplistic and written in a “to-thepoint<br />
fashion.”<br />
Matthews identifies several important<br />
steps in how to put together an effective<br />
FAQ page, following this interviewstyle<br />
format.<br />
The most important point is that you<br />
should think about the final product<br />
and desired message before conducting<br />
the ‘interview’.<br />
First, type out the entire transcript before<br />
editing. Then, arrange the questions in an<br />
Answering your customers' questions can help you improve sales and SEO.<br />
order that makes sense, and revisit the<br />
page after you have written it.<br />
Thinking of open-ended questions will<br />
allow for more in-depth responses, and<br />
editing a full transcript is easier than a<br />
partial one.<br />
Also, having questions arranged in<br />
a meaningful way leads to efficient<br />
navigation.<br />
Revisiting the page after its completion<br />
allows you to approach it in its entirety,<br />
with a refreshed perspective – similar to<br />
the way a customer, potential customer,<br />
or journalist looking to write about your<br />
business would.<br />
Evolving the FAQ<br />
The development of technologies such<br />
as voice search, mobile search, and<br />
personal/home assistants and speakers<br />
has led to the resurgence of the Q&A.<br />
In an article published on Search Engine<br />
Journal – a website dedicated to search<br />
engine optimisation (SEO) and digital<br />
marketing news – Lee Wilson, head of<br />
services for UK digital marketing agency<br />
Vertical Leap, explored the role of the<br />
FAQ page.<br />
“FAQ pages can bring in new visitors<br />
to your website via organic search and<br />
drive them to related pages – most<br />
typically deeper blog pages and service<br />
Thinking of<br />
open-ended<br />
questions<br />
will allow for<br />
more in-depth<br />
responses...<br />
[and] having<br />
questions<br />
arranged in a<br />
meaningful way<br />
leads to efficient<br />
navigation<br />
pages closely related to the questions<br />
being resolved,” Wilson wrote.<br />
This is because all of these innovations<br />
“rely on pre-results and can be targeted<br />
specifically with FAQ pages.”<br />
An effective FAQ page “reflects your<br />
audience’s needs, covers a broad range<br />
of intent, is frequently update with new<br />
data, drives viewers to important pages<br />
on the site, and showcases expertise and<br />
authority within your niche,” he added.<br />
Putting it all together<br />
So, what goes into an effective Q&A?<br />
Based on my own experience, and after<br />
reviewing both Matthews’ and Wilson’s<br />
articles, there are several answers:<br />
• Approach your FAQ page with a bigpicture<br />
perspective and create questions<br />
for an interview that are open-ended<br />
• Address the common needs of your<br />
target audience<br />
• Use the opportunity to lead the audience<br />
to the message you want to convey. As part<br />
of this, ensure that your questions and the<br />
edited responses are to the point<br />
When done correctly, FAQ pages instil a<br />
sense of trust in your audience, removing<br />
barriers to purchase by directing<br />
customers – and potential customers<br />
– to the information they need before<br />
making a purchase.<br />
They also showcase expertise and<br />
authority in your category and improve<br />
your SEO ranking.<br />
DONNA ST JEAN CONTI is president<br />
of St. Conti Communications, an<br />
award-winning full-service marketing<br />
communications agency specialising<br />
in public relations, social media,<br />
and writing support. Visit:<br />
stconticommunications.com<br />
<strong>November</strong> <strong>2021</strong> | 79
My Bench<br />
Troy O’Brien<br />
Troy O’Brien <strong>Jeweller</strong>y, Sydney NSW<br />
Age 46 Years in Trade 31 • Training Apprenticeship through TAFE Ultimo; I apprenticed at Distell International with Albert and Peter Grech and with my uncle Peter Quinn<br />
First job Distell International, 1990 • Other Qualifications 31 years of on-the-bench training, laser welding, and member of the Gold and Silversmiths Guild of Australia<br />
SIGNATURE PIECE<br />
ANIMAL-INSPIRED PENDANT<br />
STOCK PIECE<br />
I don’t have one signature piece – many pieces I have made over<br />
the years have become favourites! I do enjoy creating a range of<br />
jewellery based on animals, creatures, and marine life, and that<br />
has become a ‘bespoke’ style for the store. I hope that every piece<br />
I create for my customers becomes a ‘signature’ piece for them<br />
and an heirloom of the future.<br />
4FAVOURITE GEMSTONE Tourmaline, because<br />
of the diverse range of colours! Tourmaline is a<br />
gemstone of such high quality and diversity, from the<br />
exceptionally rare Paraìba tourmaline to the uniquely<br />
beautiful bi-colour tourmalines.<br />
Each gemstone holds its own unique beauty and<br />
rarity, which makes them highly valued by discerning<br />
collectors. I love sourcing tourmalines and genuinely<br />
get excited by their divine colour and beauty.<br />
4FAVOURITE METAL Platinum – the only reason<br />
people don’t use it is usually because of the higher<br />
cost but, for me, this is far outweighed by the benefits<br />
of its high lustre and longevity.<br />
It has a nice weighty feel, giving a true sense of luxury<br />
and quality that, for me, makes it second to none.<br />
4FAVOURITE TOOL My laser. It makes all sorts of<br />
repairs, assembly of intricate parts, welding platinum,<br />
and repairing porosity easier and is a well-valued<br />
investment in my workshop.<br />
4BEST NEW TOOL DISCOVERY My steamer. It’s not<br />
exactly a new tool, but I went without one for many<br />
years – and now I could not live without it!<br />
4BEST PART OF THE JOB This is an obvious answer,<br />
but it is honestly my customers’ joy in seeing a piece<br />
of jewellery I have created just for them. It never gets<br />
old for me.<br />
4WORST PART OF THE JOB Dealing with manky<br />
earrings, licked rings, and gross watches!<br />
4BEST TIP FROM A JEWELLER My old boss and<br />
good friend Albert Grech always taught me to expect<br />
the unexpected.<br />
4BEST TIP TO A JEWELLER Keep the stress behind<br />
the scenes! Be patient, smile, always work hard and<br />
keep honing your skills.<br />
4BIGGEST HEALTH CONCERN ON THE BENCH Being<br />
aware of your posture and your eyes; always take<br />
breaks and stretch your back as well as your eyes.<br />
Be careful of what you are breathing in, too. We work<br />
with many chemicals, abrasives, and polish dust, so<br />
try to protect yourself from these as best as possible.<br />
4LOVE JEWELLERY BECAUSE It is different every<br />
day. The ability we have to turn raw materials into<br />
beautiful, loved pieces that become part of someone’s<br />
life memories is a wonderful feeling.<br />
80 | <strong>November</strong> <strong>2021</strong>
OPINION<br />
Soapbox<br />
Anticipating – and exceeding – your<br />
customers' expectations<br />
VIRGINIA MOODY explains the importance of providing first-class customer service,<br />
both online and in-store, in an increasingly competitive retail environment.<br />
We are living in an age where competition<br />
for jewellery customers is high; the<br />
online market is always evolving and<br />
expanding and differentiating your<br />
business can be a challenging endeavour.<br />
What will distinguish you in the eyes of<br />
your customer is how you treat them, what<br />
you record and remember about them, and<br />
their before-and-after-sales experiences<br />
with your business.<br />
Choosing to exceed expectations is the key<br />
to building your reputation, your company<br />
and developing trust with the people that<br />
matter – your customers.<br />
Customer service is about anticipating<br />
customers’ needs, building a strong<br />
relationship with them, and ensuring that<br />
they feel valued and appreciated.<br />
Good word of mouth can never be<br />
underestimated, and in ensuring your<br />
customers leave satisfied, you are primed<br />
for repeat business.<br />
Integral to setting your business up for<br />
success is ensuring that both you and<br />
your employees follow best practices; you<br />
want to ensure that your responses to<br />
customers are cohesive and reflect your<br />
values as a seller.<br />
Part of this involves designing a customer<br />
service model based on what you know<br />
about your customers and what you think<br />
they expect from your business. Find out<br />
who your customers are, and importantly,<br />
how they wish to be communicated with.<br />
It is also helpful to consider the many<br />
points of contact you have, with the aim<br />
of refining every interaction with your<br />
business to be positive.<br />
Actions like timely responses to questions<br />
on your website or through social media<br />
channels, dealing with customer enquiries<br />
about warranty issues, exchanges and<br />
returns – including issues relating to<br />
freight and addressing complaints – are<br />
included in this.<br />
You want customers to walk away from<br />
their interactions with your business on a<br />
positive note, so it cannot be emphasised<br />
enough that you deal with every customer<br />
in a professional manner.<br />
Ensuring you actively listen to them<br />
and making certain you have a detailed<br />
knowledge of your products and policies<br />
is vital. It is far too easy to lose your<br />
customer to the myriad of other jewellery<br />
stores out there, and you want to do<br />
everything in your power to retain them for<br />
their next purchase.<br />
Just one bad experience is all it takes to<br />
negate the hard work you put into attaining<br />
your customer, so be mindful that it is the<br />
readiness to listen and to address any<br />
concerns in a timely, ‘can-do’ manner, that<br />
they appreciate and remember most.<br />
While a shift to online purchasing in the<br />
wake of COVID-19 was expected, the<br />
pandemic has in fact generated a dramatic<br />
migration to digital sales and services,<br />
with the ‘Millennial mind-set’ towards<br />
technology now rapidly being adopted<br />
across all generations.<br />
A massive transformation in the way<br />
people buy is fertile ground for new habit<br />
formation, and has prompted many<br />
businesses to search for new, more<br />
efficient systems to address customer<br />
needs.<br />
We use the Shopify e-commerce platform<br />
which allows us to collate basic customer<br />
contact details, conversion information,<br />
and purchase history through our website’s<br />
back-end. In turn, this enables us to create<br />
personas of what our customers are like<br />
and what they are looking for.<br />
Ultimately, knowing who your customers<br />
When a<br />
customer deals<br />
with your<br />
company you<br />
want the whole<br />
experience to<br />
be seamless.<br />
Every element<br />
of difficulty<br />
that customers’<br />
encounter is a<br />
barrier between<br />
them and their<br />
purchase<br />
are is the key to providing the products<br />
and service that they would expect from<br />
your business.<br />
When a customer deals with your<br />
company you want the whole experience<br />
to be seamless. Every element of difficulty<br />
that customers’ encounter is a barrier<br />
between them and their purchase, so you<br />
need to ensure your contact details are<br />
accessible and your policies are clear.<br />
Customers today are increasingly techsavvy,<br />
with many expecting omnichannel<br />
options; some prefer digital enquiries and<br />
self-service pathways, while others prefer<br />
to make more traditional contact via<br />
phone and email.<br />
Ensuring that the customer can contact<br />
you using the method they want and find<br />
easiest is an asset in ensuring a great<br />
experience with your business.<br />
It is by providing outstanding customer<br />
service that our customers want to return<br />
to us time and again; after all, customer<br />
satisfaction is a fundamental element to<br />
the building of a loyal customer base, and,<br />
ultimately, the success of our businesses.<br />
Without open lines of communication and<br />
active engagement with our customers,<br />
we may not know that they are dissatisfied<br />
until they have moved on to another<br />
business, or let the world know online.<br />
Remember, building a successful brand<br />
depends on your customers’ experiences.<br />
The key is in making their experience a<br />
success as well.<br />
Name: Virginia Moody<br />
Business: Harper & Rowe<br />
Position: Owner<br />
Location: Adelaide, South Australia<br />
Years in the industry: 11<br />
82 | <strong>November</strong> <strong>2021</strong>
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