Jeweller - July 2023

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JULY 2023
Contents
This Month
Industry Facets
13 Editorial
14 Upfront
16 News
30
33
64
10 YEARS AGO
Time Machine: July 2013
LEARN ABOUT GEMS
Influential Gemmologists: I
MY BENCH
Michael Purdy
28
EVENTS AT IJF 2023
The Line Up
66
SOAPBOX
David Kellie
47 OPAL FEATURE
Homegrown heroes
Features
4Opal jewellery has never been more popular on
the international stage. SAMUEL ORD investigates
the spike in popularity the iconic Australian
gemstone has experienced in recent years.
35
47
DIAMOND INDUSTRY REPORT
Industry experts forecast the future of diamond jewellery
OPAL AND OPAL JEWLLERY FEATURE
Australian opals are increasingly popular abroad
52
AUSTRALIAN OPAL EXHIBITION
Opals on show
Better Your Business
35 DIAMOND FEATURE
Hybridisation
4The international diamond industry is undergoing
significant change. PRANAY NARVEKAR and CHAIM
EVEN-ZOHAR discuss the future of the industry and
the important role lab-created diamonds will play in
what's to come.
58
60
61
62
63
BUSINESS STRATEGY
Rules were made to be broken. GRAHAM JONES explains the right way to break them.
SELLING
RICH KIZER AND GEORGANNE BENDER detail simple methods for improving sales.
MANAGEMENT
Networking can be difficult. DAVID BROWN encourages you to embrace the challenge.
MARKETING & PR
MICHAEL HINSHAW discusses the importance of proactive marketing.
LOGGED ON
BRIDGET BROWN outlines a strategy for dealing with negative reviews.
66 INDUSTRY EDUCATION
Inspired and informed
4Knowledge is the key!
DAVID KELLIE explains
the importance of
educating consumers
on the natural diamond
industry's practices.
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Editor’s Desk
Voices of reason rising above the diamond melee
The heated debate about the future of the international diamond industry
continues unabated. ANGELA HAN reflects on recent calls for civility.
It's been said by many important
historical figures that ‘the first casualty
of war is the truth’ and the conflict
between ‘natural’ and lab-created
diamonds supporters has been no
exception to this rule.
Which matters more: preserving the
reputation of diamonds as a scarce
resource worthy of luxury, or providing
consumers with more options when it
comes to jewellery?
If the chemical makeup is the same, does
it matter if one gemstone was formed over
millions of years deep within the Earth, and
another is created in a factory in India?
The raging ‘diamond debate’ is fought
over semantics, science, and philosophy
and at stake is a multi-billion dollar per
year industry.
It’s been an important few weeks for the
diamond industry, with calls for civility
between the ‘natural’ and lab-created
factions gaining significant momentum.
The future of the lab-created market
dominated headlines in June after
Lightbox Jewelry, the De Beers Group’s
brand, began trialling engagement rings.
The collection features 16 items ranging
between $AU895 and $AU8,950. CEO
Antoine Borde said the decision to
undertake the trial was based on
consumer demand. Naturally, reception to
the decision was divisive and indeed many
came out in support of Lightbox.
The detractors were quick to draw
attention to statements from De Beers
leaders in 2018 – when Lightbox was
launched – suggesting that the brand
would not offer engagement rings
because there was no ‘emotional value’
to the product.
In a special presentation at the Jewellery
and Gem ASIA Hong Kong trade show, Zulu
Ghevriya, CEO of Smiling Rocks, said it was
a decision that was years overdue.
Smit Virani, managing director of Ethereal
Green Company, joined Ghevriya on stage
and the pair discussed the significance
of India’s prime minister Narendra Modi
presenting the US first lady Jill Biden with a
7.5-carat green lab-created diamond.
Virani said he couldn’t imagine a larger
‘stamp of approval’ for the industry –
and it’s hard to disagree!
Hybridisation is coming
Each year, Pranay Narvekar and Chaim
Even-Zohar release a detailed review of
the international diamond industry across
the previous year.
This year’s report – Embracing Reality: The
Inevitable Rise of Hybrid-Diamond Jewellery
– is a doozy! The pair detail the increasing
significance of jewellery which features both
natural and lab-created diamonds.
The report predicts that in the future,
retailers will offer three distinct types of
diamond jewellery – natural, lab-created,
and hybrid. Hybrid diamond jewellery is
jewellery that features both natural and
lab-created diamonds.
The popularity of hybrid diamond
jewellery may steady the expansion
of lab-created diamonds and offer a
transparent in-between alternative.
Perhaps the most significant impact
this ‘blending’ of categories may have
will be arresting declining consumer
faith in the diamond industry.
“The day when consumers no longer aspire
to own a diamond, if it ever comes, would be
the death of the diamond dream,” the report
dramatically concludes.
Can’t we all just get along?
Prominent voices in the jewellery trade
have called for peace between the two
fractured factions for many years.
Among them is the new president of the
International Grown Diamond Association
(IGDA), Joanna Park-Tonks, who this month
signed a new partnership with the World
Jewellery Confederation (CIBJO).
As part of the agreement, the IGDA will
become a member of CIBJO’s Laboratory
Grown Diamond Committee.
This committee aims to define lab-created
diamond trading practices to improve
consumer education and confidence,
something which I’m sure both ‘sides of the
fence’ can agree is a good thing.
Park-Tonks said the purpose of this
agreement was to send a ‘clear signal’ to
the international jewellery industry that it’s
time to abandon personal agendas and egos
and work for the best interest of the trade.
She drew attention to the decision by some
to deride natural or lab-created diamonds
and said that approach is not conducive to
improving consumer education.
Which matters
more: preserving
the reputation of
diamonds as a
scarce resource
worth of luxury,
or providing
consumers with
more options
when it comes to
jewellery?
During our research for an upcoming project,
a member of the diamond industry told
Jeweller that he hasn’t seen the industry
‘feeling so lost’ in a very long time.
The panacea to this issue is leadership,
and it’s pleasing to see representative
organisations like CIBJO and the IGDA
coming together to send a clear message.
Meeting in the middle
Approaching the issue from a different
perspective is David Kellie, who features in
this month’s Soapbox column (see page 66)
as president of the Natural Diamond Council.
While Kellie and Park-Tonks undoubtedly
share different visions for the future of the
diamond industry, it’s interesting to note the
areas in which the pair are in agreement.
Kellie agrees that the most important
‘frontier’ for the industry to traverse is the
education of consumers.
Indeed, despite the considerable ‘evolution’
of the industry in recent years, many myths
about the diamond trade persist and the
wider public still knows very little about
where jewellery ‘comes from.’
He suggests that these myths and the
lack of clarity around the industry create an
erosion of trust in the businesses behind
diamond jewellery, which is a poor sign for
the road ahead.
Kellie also says that natural and lab-created
diamonds both have a part to play in a
prosperous jewellery industry; however, in
order to reach such a future protecting the
integrity of the industry is vital.
This sentiment is becoming more
widespread – that there is room for both
natural and lab-created diamond products
and that each will soon find its niche.
The bottom line? Consumers are gifted
with a chance to get more creative with
their designs, and jewellers are also
afforded a chance to boost their income.
It’s a shame that the road to this new
hybridised market has been filled with much
vitriol and mud-slinging; however, when there
are potentially billions of dollars at stake –
who can blame the factions for getting a little
hot under the collar?
The jewellery industry has never been
accused of being impassionate!
Angela Han
Publisher
July 2023 | 13

Upfront
Rewind: Best Bench Tip
JUNE 2015
“Always pass on skills
and knowledge to
keep our trade alive.
Without this, many
specialist skills will be
permanently lost.”
LINDA SMITH
EMIL BRAUN/
LINELA FINE JEWELLERY
HISTORIC GEMSTONE
Pearl of Lao Tzu
4The Pearl of Allah, also known
as the Pearl of Lao Tze, was once
considered the largest known
pearl. The pearl was discovered
in the Palawan Sea in the
Philippines. It is not considered
a gemstone pearl and is instead
known as a Tridacna pearl from
a giant clam. It measures 24
centimetres in diameter and weighs 6.4 kilograms. The only knowledge
of the pearl's provenance comes from Wilburn Dowell Cobb, an
archaeologist from San Francisco, who purchased the pearl in 1939
and owned it until his death in 1979. The pearl is owned in three equal
shares by the heirs of Joe Bonicelli, Peter Hoffman and Victor Barbish.
In the US, the pearl was exhibited at the Ripley's Believe It or Not!
Odditorium in New York, valued at $US35,000,000.
Enter the Matrix
4Virtual reality has been a hot topic
in 2023, transforming the online retail
environment by enabling customers
to visualise products before making a
purchase. Whether it’s trying on jewellery
virtually or placing furniture in a virtual
room, this technology bridges the gap
between the physical and digital worlds.
The hope is that this will improve consumer
confidence and reduce returns. Virtual
reality offers unique opportunities for
retailers to create digital showrooms and
shopping environments. Virtual showrooms
are also a cost-effective solution.
Trend Spotting
4Pearls have been the talk of the town
so far this year, lighting up runways
and fashion shows around the world.
Australia’s own Autore Pearls recently
hit the silver screen, with a collection
appearing in Netflix’s Queen Charlotte:
A Bridgerton Story. Head of marketing
and communications Ruby Autore said:
“Pearls have always been in fashion, but
are really a strong trend now."
Campaign Watch
4Malaysian jeweller HABIB has
launched a new campaign, GemFest,
beginning with a private masterclass
session on gemstones at Majestic
Hotel, Kuala Lumpur. Each store will
be showcasing a different range of
masterfully crafted designs and styles,
showcasing the beauty and durability of
colour gemstones and diamonds.
Image credit: Netflix
Image: HABIB, GemFest
Stranger Things
Weird, wacky and wonderful
jewellery news from around the world
Buried treasures
4A diamond worker has been
arrested in India after he allegedly
spiked his colleagues' tea with a
sedative and fled with diamonds
valued at $US14,000. Police said
the suspect made tea during a
night shift for eight co-workers.
He fled the workshop with more
than 2,500 diamonds, with a total
weight of 250 carats. The accused
was arrested and the diamonds
recovered.
Crime doesn’t pay?
4The Jewelers' Security Alliance
has released a report suggesting
crime impacting jewellers has
more than doubled in the US in the
past 12 months. Losses soared to
a record high of $US129.4 million
according to the 2022 annual
crime report. That figure sat at just
$US70.1 million in 2021. President
John Kennedy, urged jewellers to
remain vigilant. "Soaring crime
needs to be a concern for the
entire diamond, jewellery and
watch industry," he said. The total
number of crimes committed was
a record 2,211, an increase of 31.1
per cent on 2021.
Under the sea
4A starfish brooch designed by
Salvador Dali featuring diamonds,
rubies, and emeralds sold for
$US982,000. It was the highest price
ever paid at auction for a piece of
jewellery created by the Spanish
surrealist artist. The Etoile de Mer
belonged to socialite Rebekah
Harkness. She founded her own
ballet company and had Dali paint
backdrops for her.
VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY
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Locked Bag 26, South Melbourne, VIC 3205 AUSTRALIA | ABN 66 638 077 648 | Phone: +61 3 9696 7200 | Subscriptions & Enquiries: info@jewellermagazine.com
Publisher Angela Han angela.han@jewellermagazine.com • Journalist Samuel Ord samuel.ord@jewellermagazine.com
Production Learoy Bangis art@befindanmedia.com • Advertising Toli Podolak toli.podolak@jewellermagazine.com • Accounts Paul Blewitt finance@befindanmedia.com
Copyright All material appearing in Jeweller is subject to copyright. Reproduction in whole or in part is strictly forbidden without prior written consent of the publisher. Befindan Media Pty Ltd
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
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News
Russian diamond crackdown
Mass refunds for aggrieved opal mining community
Industry speculation over the future of diamonds
sourced from Russia has ramped up, with media
sources suggesting further prohibitions will be
installed in early 2024.
Rob Bates of JCK Online has reported that all G7
countries - Canada, France, Germany, Italy, Japan,
the UK, the US, and EU - will prohibit the import
of gemstones mined in Russia, even those cut and
polished overseas.
“To date, the industry has not exactly provided
a united front. US groups and companies —
particularly bigger names that already have
sourcing protocols in place — say they support the
government’s aims,” writes Bates.
“Antwerp initially opposed all sanctions, arguing
the goods would just go to Dubai; it now insists
that only a ‘science-based’ origin solution (such
as Spacecode) would work. But most consider
such technology a long shot, and lately the Belgian
government has indicated it will move forward with
sanctions, whether Antwerp likes it or not.”
The report suggests that the new restrictions
will come into effect in January, with regulations
possibly limited to diamonds one-carat or larger.
The minimum weight could decrease as over time.
Customs will require importers to declare their
diamonds aren’t from Russia, however; other
provenance information will not be required.
“Clearly, the diamond industry is about to undergo
a major change. In 2000, when the trade agreed to
form the Kimberley Process, it made a conscious
decision to separate diamonds into two streams:
non-conflict (inside the KP) and conflict (outside),”
the report continues.
Bates added: “Of course, no system will be perfect,
and the G7 doesn’t have the same reach as the
Kimberley Process — which encompasses almost
every diamond centre or producer on Earth. Yet the
US remains the biggest market, so the trade will
have a hard time ignoring what’s going on.”
In the US, these proposed new prohibitions
will likely require either new legislation or a
modification of the existing executive order
banning Russian diamonds.
The NSW Government has confirmed it will
pay refunds to opal miners impacted by a
recent administrative oversight which placed
hundreds of livelihoods in jeapordy.
Natural Resources Minister Courtney
Houssos announced the refund scheme would
pay for administration levies, licence fees and
renewal costs.
In May, it was revealed that opal miners in
Lightning Ridge and White Cliffs had spent
nearly a decade paying for invalid licences
which were incorrectly approved by Mining,
Exploration and Geoscience.
The licences were reportedly invalid because of
a previously unnoticed stipulation that miners
must send a letter to landholders seven days
before the approval process. More than 3,340
licences were impacted by the error.
The Perth Mint will face renewed scrutiny after
the Federal Parliament agreed to a motion put
forward by Liberal senator Dean Smith to form a
new investigative committee.
The committee will lead an inquiry that will
cover a wide range of matters relating to the
mint and its compliance with industry laws
and regulations.
A report is expected by 13 December, with the
investigation to be led by seven senators – three
from the opposition, two from Labor, one from
the Greens, and one from the crossbench.
The committee has already faced opposition,
with finance minister Katy Gallagher suggesting
that it will be a redundant process given other
unfolding investigations.
"AUSTRAC and the WA government are taking
these matters seriously, as are we," she said.
"I'm really sorry for the disruption that
is caused to the miners and to the local
communities during this peak mining
season," Houssos said.
"The department has advised me that we should
have miners back on their leases within weeks
— some of these will take longer."
Lightning Ridge opal miner Shane Morris told
ABC News the issue is far from resolved.
"It's the least the minister could do at this
stage because it's thrown chaos into the
community and the industry," he said.
"There's that much confusion, no-one knows
what's going on."
Among the issues raised by the mining
community was the decision to deem the
licences invalid retroactively, rather than applying
the validation process to new licences.
New federal investigation into Perth Mint proceeds
"The senator [Dean Smith] knows this motion
will not only duplicate this effort but also risks
compromising these independent investigations.
"We do not support a motion that is driven
by state politics that would disrespect and
undermine due process."
A spokesperson for the Perth Mint told ABC
News it would cooperate with all requests made
by the federal committee.
"We continue to actively engage with
the regulator and are progressing a
comprehensive, fully funded remediation
program to strengthen our systems and
processes," the spokesperson said.
The operations of the Perth Mint are overseen
by the Gold Corporation. CEO Jason Waters
resigned from his role in May.
16 | July 2023

News
Lust for trust: Everledger in hot water for misuse of third-party intellectual property
Brisbane-based technology company Everledger
has been misusing the intellectual property of
third-party organisations and may have breached
Australian Consumer Law.
The company, which focuses on the jewellery
industry, collapsed eight weeks ago with close
to $AU10 million in debts and was placed under
voluntary administration on 24 April.
The UK parent company, Foreverhold Limited,
is in the process of being liquidated. Launched in
2016 by Leanne Kemp, Everledger has received
more than $AU54 million in funding and boasted
Chinese tech giant Tencent - owner of WeChat -
as an investor.
The company’s rise to a ‘global power player’ led
to Kemp’s appointment to the Office of the Chief
Entrepreneur position by Queensland Premier
Annastacia Palaszczuk in 2018, despite having
previously faced personal bankruptcy proceedings.
During her time as Queensland’s Chief
Entrepreneur (2018-2020), her company racked up
more than $AU5 million in losses. Everledger’s
mandate, according to Kemp, is to improve
transparency and ethics in the jewellery industry,
especially in the international diamond industry.
Kemp regularly speaks about the importance of
trust and the company website states: “Everledger
is the digital transparency company, providing
technology solutions to increase transparency in
global supply chains. Our purpose is to contribute
greater clarity and confidence in the marketplaces
where transparency is a strategic imperative.”
The homepage goes on to describe the
company’s purpose as “Helping everyone to
trust in what they buy”.
Furthermore, the website features the logos of six
organisations with a claim that these companies
‘trust’ Everledger, in what appears to be a
promotion of the company’s credibility and integrity.
The logos of the World Economic Forum, Brilliant
Earth, Fred Meyer Jewelers, Blockchain Australia,
Tencent, and FISITA all appear under the heading
“TRUSTED BY”.
The problem is at least two of the organisations
featured on the website were unaware that
their intellectual property was being used to
promote Everledger.
Representatives confirmed to Jeweller that
permission to use the logos had not been sought,
nor granted.
A spokesperson for The World Economic
Forum (WEF) told Jeweller, “It is important
to note that the WEF has no involvement in
Everledger’s business decisions.”
“Furthermore, we would like to clarify the WEF
never grants permission for any technology
pioneer to use the WEF logo.”
Likewise, Blockchain Australia head of
operations Amy-Rose Goodey confirmed that
Everledger has been using the logo ‘improperly’
and without explicit permission.
"Everledger is not a member and their website
should not be displaying the Blockchain Australia
logo. If they were not in liquidation we would ask
them to remove our logo," she said.
Chair of Blockchain Australia Michael Bacina
contacted Jeweller to further emphasise
that he views this behaviour by businesses
as a serious problem. He and his staff could
not find any connection between Blockchain
Australia and Everledger and confirmed that
his organisation does not provide a statement
of trust to any third-party company.
A website screen capture 27 June, showing the
logos and implication that Everledger is “trusted
by” the World Economic Forum and Blockchain
Australia; both organisations deny any knowledge
of the claims and advise no permission was
granted for use of their logos.
Transparency in question
Brilliant Earth promotes its business as being
at the forefront of blockchain technology: “We
were one of the first jewellers to offer blockchainenabled
diamonds at scale, to provide traceability of
a diamond’s origin and ownership”.
It is unclear if Brilliant Earth uses the
Everledger platform or whether the company
granted approval for the Brilliant Earth logo
to appear on the Everledger website under
the heading “TRUSTED BY”. After numerous
attempts to seek clarification on this - and
its own claims about transparency - Jeweller
was contacted by Victoria Del Rico, director of
communications Brilliant Earth; however, she
has subsequently remained silent.
The Fred Meyer Jewelers logo appears under the
same “TRUSTED BY” heading and Kirsten Darrow,
group vice president Fred Meyer Jewelers is quoted
on the Everledger website as stating, “We are
excited to be able to offer Rock Solid diamonds to
our customers as part of our ongoing commitment
to responsibly sourced and transparent jewellery
supply chains”.
Jeweller contacted Fred Meyer Jewelers on
multiple occasions seeking clarity about the
company’s apparent endorsement of Everledger
and its own transparency practices; however, it
failed to respond. FISITA likewise did not respond
to various requests for comment.
Tencent is/was an investor in Everledger and
was responsive to emails; however, at the time
of publication had not provided comment on the
issues relating to its logo and/or the “TRUSTED
BY” matter.
Lust for trust?
The Everledger website features a ‘profile’ page
on Kemp which states: “In her role as CEO, she
inspires and steers the team of Everlegends [sic] to
increase transparency and trust with technology, in
close collaboration with our industry partners.”
In a 2021 interview with Rapaport, a diamond
industry publication, Kemp spoke of the
importance of trust in business.
“There’s a lust toward trust,” she told the
publication. The article continues by describing
Everledger as being “on a mission to facilitate
that trend [sustainability], using its blockchainpowered
platform to help diamond and jewellery
businesses keep a transparent record of their
products’ provenance.”
The company's future remains up in the air after
a second creditors meeting was postponed to 28
June. Everledger faces significant debt and the
Administrator’s report concluded that the company
has no intellectual property assets. In a surprising
admission, the report also indicated that the
company effectively survived on government grants.
If a Deed of Company Arrangement is accepted in
order to allow Everledger to continue, it could find
itself running afoul of Australian Consumer Law
(ACL) regarding claims that it has misused the
intellectual property of third-party organisations.
Section 18 of the ACL states, “a person must not,
in trade or commerce, engage in conduct that is
misleading or deceptive or likely to mislead or
deceive.”
Jeweller sought clarification from Kemp about if,
and why, her company would be exploiting the logos
of external organisations - without approval - by
suggesting that Everledger was “trusted by” them.
At the time of publication she had not responded.
MORE BREAKING NEWS
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July 2023 | 17

News
NSW Government tackles crime against retail employees
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Retail employees in New South Wales – including
staff at jewellery stores – have been granted new
legal protections by the NSW Government.
The Crimes Legislation Amendment (Assaults on
Retail Workers) Bill 2023 will implement three new
offences into the Crimes Act.
The reforms make it an offence to assault, throw a
missile at, stalk, harass or intimidate a retail worker
in the course of the worker’s duty, even if no actual
bodily harm is caused to the worker. Offenders face
a maximum penalty of four years behind bars.
Offenders who assault a retail employee in the
course of a worker’s duty may face up to six years
imprisonment, while an 11-year maximum sentence
has been set for those who wound or cause grievous
bodily harm to a retail worker.
NSW Premier Chris Minns said that retail workers
deserved better protection.
"Everyone should be treated with decency and
respect while at work. There is no excuse for
assaulting anyone, particularly not someone who is
doing their job,” Minns said.
“This bill reflects our government’s commitment to
More than one-fifth of Australian businesses
experienced a cyber security attack during the
2021-22 financial year, a sharp increase from the
previous year.
According to the latest report from the Australian
Bureau of Statistics (ABS), 22 per cent of businesses
were targeted in a cyber incident. That figure sat at
just eight per cent during the 2019-20 financial year.
Scams and fraud were the most commonly reported
incident at 16 per cent, with malicious software
infections (five per cent) and unauthorised access or
use (three per cent) also of concern.
Head of ABS business statistics Robert Ewing
support our workers and ensure their safety in the
workplace.”
Research from the McKell Institute found that 85
per cent of retail workers have experienced abuse or
assault at work.
Australian Retail Association CEO Paul Zahra said
retail employee abuse escalated during the COVID
pandemic.
“We’ve seen a frightening escalation in retail crime,
where it is now becoming a matter of life-or-death
for workers simply trying to do their job,” Zahra said.
“Actions speak louder than words, and we’re
extremely pleased that the NSW Government has
listened to our views and the needs of retail workers
and is taking strong action to deter these violent
incidents and keep retail staff safe.
“We’re mindful that the majority of customers are
respectful and do the right thing, but the small
minority are making retail a dangerous environment
to work in.”
In the past year, the SA Government introduced a
maximum penalty of five years for those convicted of
assault against a retail worker.
Retailers urged to be vigilant amid cyber crime wave
said: “Today’s ‘Characteristics of Australian
Business’ data release is important because it gives
governments and researchers information about the
prevalence, impacts and nature of cyber attacks.
“This helps them understand who they need to
support and what strategies they need to use.”
The release reveals that 34 per cent of
businesses reported a loss of time in managing
cyber security attacks and 18 per cent recorded
downtime of service. A further 17 per cent
reported a loss of staff productivity.
Of those surveyed, 70 per cent said that they
relied on some form of protection software,
while just 13 per cent gave staff cyber security
awareness training.
With the International Jewellery Fair in Sydney
(19-21 August) now just weeks away, vigilance
concerning cyber security remains important for the
jewellery industry.
Scams in the lead-up to industry events such as the
IJF are common, and tend to concern attendee lists,
fair directories, and accommodation reservations.
Jeweller is aware of a number of emails currently
circulating with offers to purchase the contact
information for the attendee list of the IJF.
Fair organisers Expertise Events advise that the only
way to deal with scammers is to not reply.

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News
De Beers denies violating
Russian diamond sanctions
Diamonds for unity: Industry groups CIBJO and
IDGA forge partnership with focus on marketing
The world’s largest diamond mining company, the De
Beers Group, has issued a statement denying claims it
sold diamonds sourced from Russia.
Last week, ‘luxury’ publication Glitz.Paris reported that
De Beers had “sold stones of Russian origin in the US”
in 2022, suggesting the transaction involved Alrosa and
an Israeli company.
Botswana’s Sunday Standard cited the allegations as a
front-page story over the weekend.
“Let us be clear — this allegation is not true.
De Beers only sources diamonds discovered in
Botswana, Canada, Namibia, and South Africa, or
from select companies that adhere to our strict and
third-party audited sourcing policy,” the company
said in a statement.
“Following the start of the war, we removed Russia
from our third-party sourcing list. We do not source
diamonds from Russia.”
The report from Glitz.Paris alleged that the De
Beers’ Forevermark brand conducted more than
100 transactions involving Russian diamonds
destined for the US market.
“It is no secret that we have been the subject
of a number of headlines in Botswana over the
past several months. While those stories were
distortions, this particular story is dangerous,” the
statement continues.
“Beyond De Beers, it suggests to consumers that the
natural diamonds they buy, a significant percentage
of which come from Botswana, are tainted. This is not
true, but in an attempt to discredit De Beers, the article
risks damaging much more.”
The Israeli company named in the transaction is
sightholder Dalumi Group. Rapaport News contacted
the company and a spokesperson denied the
allegations.
De Beers recently postponed its fifth and sixth sales
cycle auctions for the year amid concerns about
dwindling demand.
The agreement was confirmed on 25 June in the UK as a memorandum of understanding, signed by CIBJO president
Gaetano Cavalieri and IGDA president Joanna Park-Tonks. | Source: CIBJO
The World Jewellery Confederation (CIBJO) and
the International Grown Diamond Association
(IGDA) have formalised a new partnership in
pursuit of protecting consumer confidence in
the jewellery industry.
The agreement was confirmed on 25 June in the
UK as a memorandum of understanding, signed
by CIBJO president Gaetano Cavalieri and IGDA
president Joanna Park-Tonks.
As part of the agreement, the IGDA will become
a member of CIBJO’s Laboratory Grown
Diamond Committee. The purpose of the
committee is to define lab-created diamond
trading practices in order to elevate consumer
education and confidence.
“Over the past several years the lab-created
diamonds sector has grown into a large and
prominent part of our industry, and we all have
a vested interest in each other’s success,”
Cavalieri said.
“That definitely will be enhanced by having the
IGDA as a permanent part of the discussion and
the decision-making process.”
The immediate focus of the committee will be
addressing the need for ‘honest and accurate’
marketing around sustainability issues – an area
that Park-Tonks said requires cross-industry
collaboration.
“This sends a clear signal to the global jewellery
industry to set personal agendas and egos
aside, placing the consumer and their best
interests at the heart of our work,” she said.
“We all agree that a strategy of deriding
natural diamonds or lab-created diamond
products is not conducive to consumers’
understanding of either sector. Together we
are stronger and we jointly acknowledge the
necessity of communicating clearly, honestly,
and transparently.”
Park-Tonks was appointed the president
of the IGDA in January and during her brief
tenure has emphasised the need for open
communication between the lab-created and
natural diamond industries.
New owner of Swan Lake jewellery a mystery
The auction of a pearl and diamond necklace
with matching earrings, once owned by
Princess Diana and known as the Swan Lake
Suite, has been cancelled - as the collection
now has a new mystery owner.
The necklace features 178 diamonds in total
and was expected to hit the block in New York at
Guernsey’s auction house on 27 June.
Guernsey's recently uploaded a message
to its website that reads: "Princess Diana's
Swan Lake Suite has been privately sold to a
prominent museum. Accordingly, our auction of
the beautiful jewels has been cancelled."
The platinum necklace is mounted with
brilliant-cut diamonds in a scroll motif.
Suspended from the necklace are five South
Sea pearls and seven marquise diamonds.
The piece was created by former British Crown
Jeweller Garrard. Princess Diana wore the
necklace in June of 1997 at the gala opening of
the Swan Lake ballet at London’s Royal Albert
Hall, just months before her death in Paris. The
collection was expected to return up to $US15
million ($AU22.1 million) at auction.
20 | July 2023

News
Lightbox begins to offer lab-created
diamond engagement rings
Lightbox Jewelry - the De Beers Group’s lab-created diamond jewellery
brand - has launched a trial of engagement ring offerings, a notable shift in
stance for the company.
The collection includes 16 items featuring lab-created diamonds, including
white and blue diamonds, which prices ranging from $AU895 to $AU8,950.
Speaking to the media, a spokesperson for Lightbox Jewelry said that it
was a ‘small in-market test’ of consumer preferences in the lab-created
diamond engagement ring segment.
“When De Beers launched Lightbox in 2018, Bruce Cleaver, the miner’s CEO
at the time, presented lab-created as a product that ‘may not be forever, but
is perfect for right now,’ writes Joshua Freedman of Rapaport News.
“[He] claimed there was ‘no real emotional value in lab-created diamonds,
because they’re not unique,’ and said the diamonds did not warrant
grading. [Lightbox] later debuted the Finest line, introduced diamonds
larger than one carat, and started declaring the cut quality, colour, and
clarity of its diamonds.”
In an interview with JCK Online earlier this month, Lightbox Jewelry
CEO Antoine Borde said that any future decisions concerning
engagement rings would be determined by consumer sentiment.
“It’s a matter of listening to the consumer. We have a lot of consumers who
ask, ‘when are you going to sell engagement rings?’ By the way, our loose
stone business has done very well,” he said.
“It’s possible those diamonds might be used for something outside of
Lightbox. I can’t answer precisely this question, but for now we don’t have
[engagement rings] in our range. But that’s a very, very consistent message
[we are getting]. We are focused on listening to our consumers, because at
the end of the day, it’s important to answer their demands.”
In the latest analysis of the US jewellery market from Tenoris, the average
retail price of lab-created diamonds declined 9.6 per cent in May compared
with April.
“The simple equation of rising demand leading to higher prices is not
happening in the lab-created diamond sector and for a compelling reason,”
writes Edahn Golan.
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“The primary price drivers are oversupply that reduces prices, prompting a
deep need of the midstream to sell rapidly to avoid inventory price erosion.
Ironically, that advances prices down even further.”
Sales of natural diamonds continued to decrease in May, with the number
units sold declining 16.5 per cent on a year-on-year comparison. The value
of sales decreased 20.6 per cent, completing a year of sales decline.

News
Done deal: Michael Hill takeover of
Bevilles complete
Michael Hill International has officially assumed operational control of retail
rival Bevilles.
In late April the details of the $45.1 million deal were announced and as of
Thursday, Michael Hill has assumed control of 26 Bevilles stores in three
states – Victoria, NSW and SA.
The company plans to open more than 80 new Bevilles stores by 2028,
including expansion in New Zealand and Canada where Michael Hill
already operates.
This may include converting existing Michael Hill locations into Bevilles
stores. The financing of this expansion comes from a new three-year $90
million credit facility from ANZ and HSBC.
“I’m excited the acquisition has been completed and welcome the Bevilles
team members to the Michael Hill family,” CEO Daniel Bracken said.
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“This acquisition not only demonstrates the board’s commitment to
strategic investment but also provides a platform for significant store
network expansion and delivery of incremental earnings.”
As well as expanding Bevilles store network, the facility will fund a new
digitally-led ‘bespoke' diamond jewellery brand and the rollout of its gold
recycling platform.
The company recently confirmed its plans for the branded watch category
with Jeweller. Bracken noted that offers of new locations from a number of
landlords have been tabled.
Supporting emerging talent
The Michael Hill International Violin Competition, supported by the
Hill Family Foundation for Arts and Music, has taken place in
Queenstown and Auckland.
The competition concluded on 10 June, with 16 of the world’s
youngest violinists going head-to-head for a prize package valued at
more than $100,000.
"As a company deeply connected to our heritage, craft, and community, we
are proud to support such a prestigious event that reflects our values and
resonates with our brand's philosophy," said Sir Michael Hill said.
"The competition not only showcases the finest musical talents globally. It
also helps to strengthen the local arts scene, especially after it was put on
hold during COVID.”
The winner of this year’s competition was 20-year-old Yeyeong Jenny Jin.

News
Cause for celebration for
Aussie jewellery retailers
Industry mourns the loss of legendary diamond
cutter Tolkowsky
There’s optimism in the air for retailers following
the latest sales analysis of Australia’s independent
jewellery stores from Retail Edge, highlighted by a
bounce-back.
June data shows comparative overall sales dollar
performance improved by five per cent compared with
2022 and eight per cent on the two-year difference.
Comparative units sold decreased by 3.4 per cent on a
year-by-year comparison.
The comparative average sale in inventory only
increased by 10 per cent on a year-by-year
comparison ($242 from $220) and improved by eight
per cent on a two-year comparison. Looking at the
performance across product categories, the diamond
precious metal jewellery section improved by seven
per cent compared with June 2022, Retail Edge sales
manager Mike Dyer explained.
“Colour gemstone set precious metal jewellery shows
sales dollars were down 18 per cent compared with
June 2022 and declined 4.6 per cent on the two-year
comparison to June 2021,” he said.
“Silver and alternative metals jewellery sales dollars
were down eight per cent compared with June
2022 and improved by 1.1 per cent on the two-year
comparison to 2021.”
Born in Tel Aviv in 1939, Tolkowsky learned the
trade from his father, Jean, who owned the
first diamond-polishing factory in Israel.
The Tolkowsky family name remains
renowned within the diamond industry, and
Gabriel was the great-nephew of Marcel
Tolkowsky, the inventor of the ideal-cut round
brilliant diamond.
In an interview with Rapaport News,
Tolkowsky said some of his fondest memories
came from his early days in the trade.
“To polish diamonds, he [Jean] had to use a
bicycle to turn the polishing wheel, because
there was no electricity,” he said.
“Many of the first diamond people in Israel
were my father’s pupils. I learned my trade
from him, and I am proud to have had such a
rare opportunity.”
From 1975 through 1995, Tolkowsky worked
for the De Beers Group, gaining fame for the
cutting of the 273-carat Centenary Diamond –
a process that took more than three years.
He would later earn the appointment as the
cutter of the 545-carat Golden Jubilee Diamond.
Reflecting on his storied career in an interview
with Jeweller, Tolkowsky was humble about
his many achievements.
“Without having a team of 15 expert scientists,
technicians, security guards, and master
diamond cutters that communicated daily
with me during three long years, I would have
never been able to achieve the uniqueness of
such a creation,” he said when discussing the
Golden Jubilee.
“Together we realised that every single
diamond is effectively an individual that will
attract every human’s senses; each one of
them is a unique beauty.
“As it is said, ‘beauty is altogether in the eye
of the beholder.’ This, without any doubt,
was and still is the basic reason for humans
to continue to manufacture and deal with
diamonds.”
In 2002, his contributions to the diamond
industry were acknowledged by a Knighthood
Chevalier de L’ Ordre du Roi Leopold II from
the Belgian government.
In more positive news, the pattern in laybys increased
by 14 per cent in dollar terms between new orders and
pickups or cancellations. The pattern in services, such
as repairs, was a 24 decline in dollar values between
new incoming orders and pickups or cancellations.
“This is the fifth consecutive month of double-digit
negative movement in this area. An entrenched
consumer pattern that may need more than a small
shift in sentiment to flip the switch,” Dyer said.
“This is not to say you should sit back and accept
what is happening but make some noise about your
services, skills and expertise. Repairs are still being
done, you just may need to make an effort to get, or
keep, your share and maybe someone else’s.”
Special order numbers improved significantly (29 per
cent) in dollar terms.
Light of Peace diamond goes under the hammer
Known as the Light of Peace Diamond, a
pear-shaped brilliant-cut D colour diamond
was sold for $US13.6 million ($AU20.15 million)
at Christie’s Magnificent Jewels auction
in New York.
The 126-carat internally flawless diamond
was expected to return at least $US15 million,
falling narrowly short of its pre-sale estimate.
“Exceptional diamonds, like exceptional houses,
are always given names, and Christie's leads
off its spring New York jewellery auction with a
great example,” writes Carol Besler of Forbes.
The source of the diamond is unconfirmed and
was simply listed as ‘West Africa’ when it was
purchased by the Zale Corporation in 1969.
It’s believed the diamond was discovered in
Sierra Leone.
One highlight of that auction was a ruby and
diamond bracelet by Van Cleef & Arpels,
named Jarretière, which actress Marlene
Dietrich wore in Alfred Hitchcock’s 1950 film
Stage Fright.
The bracelet garnered $US4.5 million
($AU6.67 million), reaching its top estimate.
In total, the auction returned $US50.7 million
($AU75.1 million).
24 | July 2023

News
Jewellery industry sentiment sky-high
after Fiji Nationwide Conference
Oceans Collection
Nationwide Jewellers’ annual Timeout Conference ended on Sunday with
buyers and suppliers alike making the journey to Yanuca Island in Fiji.
The buying group represents 376 members and 420 stores across three
countries, with 306 members in Australia, 69 in New Zealand and one in
Fiji. Approximately 150 attendees took part in this year’s conference
and national membership manager Erin Keller described it as an
overwhelming success.
“The conference has exceeded our expectations, with more members
than we anticipated bringing their families and adding additional days
to their stay for a well-earned rest in the warm weather,” she said.
“Both members and suppliers have expressed how much they enjoy
Nationwide conferences because of the community value, education and
networking provided. There is a common opinion that the culture of our
events provides inclusivity and support for both suppliers and members.”
Managing director Colin Pocklington delivered his eagerly anticipated
annual industry update, covering the expansion of the industry since 2020.
The presentation also included a detailed analysis of the economic factors
that will influence the market in 2023 and beyond.
“Glen Pocklington introduced our 'phygital' concept showing members
how to move customers from their physical store and digital presence
using the 'research online, purchase offline' theory,” Keller explained.
“We also provided the key retail strategies members need to
implement now to increase market share and profitability
despite an economic slowdown.”
Sessions covering this concept will take place at the International
Jewellery Fair (IJF) in Sydney on 19-21 August. Robyn Sparke of
Stephen Sparke Jewellers told Jeweller that events such as these are of
vital importance to her business.
“The word I think best describes how we feel after Fiji is ‘reinvigorated’.
It was a fantastic weekend and I was pleased to catch-up so many young
members in particular, with lots of great ideas for the future,” she said.
“Colin’s presentation was excellent, offering insight into the trade
well into the future, and I find that information really helps us with
forward planning.”
Nationwide will be an important presence at the Sydney Fair and this year
they’ll introduce buyers from the Independent Jewellers Organisation (IJO)
for the first time.
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The two groups recently formed the Global Jewellers Network with The
Company of Master Jewellers – representing more than 1,500 independent
jewellery stores worldwide.
Phone.03 9553 3777

News
Cost-of-living pressures cause for
concern for jewellery retailers
Major retailers and small independents alike have expressed concern about
consumer spending trends.
Despite discretionary spending continuing to slow the Australian Bureau of
Statistics reported that consumers spent more than $35.2 billion in April, a
4.2 per cent increase on a year-on-year comparison.
Australian Retailers Association CEO Paul Zahra said that during a cost-ofliving
crisis, sales could be expected to decline.
“Cost-of-living pressures are the greatest current concern for retailers and
their customers and this continues to affect retail sales – a trend we expect
to see continue in the coming months,” Zahra said in a statement.
“While the numbers are still positive – the slowdown in retail spending
is certainly already in effect and when you factor in price increases these
results are having an impact on margins.
“Year-on-year spending on household goods continues to decline,
but this also reflects the bumper trading in this category during the
pandemic years.”
Michael Hill International has reported a 3.5 per cent decline in sales for
the second half of the financial year.
According to the company, third-party transactional data for the total
Australian retail jewellery segment has shown a double-digit decline in
sales for the first four months of the second half.
“Despite the more challenging market conditions and the resulting impact
on many retailers, I’m encouraged by the Michael Hill performance, as we
continue to take market share in our category,” CEO Daniel Bracken said.
“Looking forward to 2024, I’m energised by the pipeline of strategic
initiatives that underpin our aspirations for the group.”
Retail Edge’s latest assessment of more than 400 independent
jewellery stores revealed sales declined by 2.3 per cent in May on a
year-on-year comparison.
This softening of sales came off the back of an 11 per cent decline in April.
Signet reviews forecast after sales decline
Signet Jewelers has lowered its forecast for the remainder of the year
after sales declined in the opening quarter. Revenue for the world’s largest
retailer of diamond jewellery decreased by nine per cent on a year-on-year
comparison, reaching $US1.67 billion ($AU2.18 billion).
At locations open for at least 12 months same-store sales declined by 13.9
per cent and CEO Virgina Drosos attributed the results to ‘macroeconomic
headwinds’.
“In line with our predictions, there were fewer engagements in the quarter
resulting from COVID-19’s disruption of dating three years ago,” she said.
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She added: “We are proactively addressing the dynamic retail climate,
leveraging our team's agility and flexible operating model to raise our
cost savings target by up to $US150 million ($AU222.1 million) while
maintaining strategic investments.”
The company recorded a fourth-quarter sales slump of five per cent, with
Drosos anticipating that an increased focus on excluding Russian diamonds
from the US market would lead to positive sales.
Signet owns more than 2,800 stores worldwide. The company is now
forecasting sales of around $US7.3 billion ($AU10.81) for the financial year.

News
Last Emperor of China’s classic Patek Phillipe watch returns $9 million at auction
A Patek Phillipe once owned by the last Emperor of
China has sold for $US6.2 million ($AU9.54 million)
at auction at Phillips in Hong Kong.
The platinum Quantieme Lune (ref. c96) triple date
watch was manufactured in 1937 with moon phases,
roulette-dial, enamel Arabic numerals, and pinkgold
feuille hands.
The timepiece crushed its pre-sale estimate of
$US3 million.
“Kept in its original untouched condition, including
the strap and buckle with consistent patina
throughout, this time-capsule piece comes with
incredible historical importance, and is an epitome
of its kind,” a statement from Phillips reads.
“A once in a lifetime opportunity to obtain a
timepiece that is worthy of a museum’s collection.
For astute collectors, what is presented today is
not only about collecting a significant part of Patek
Philippe’s history, but world cultural history.”
Aisin-Gioro Puyi, commonly known as Puyi, was
the last emperor of China as the eleventh and Qing
dynasty monarch. He became emperor at the age
of two in 1908, but was forced to abdicate in 1912
during the Xinhai Revolution.
Puyi was an influential political figure in Asia until
the conclusion of the Second World War, when he
was imprisoned in Japan until 1959. He died in 1967.
It is unclear how Puyi acquired the watch; however,
it is known to have survived the five years he spent
in a USSR prison camp in Siberia.
“It is not known how Puyi acquired the timepiece,
though records show it was initially sold via a
luxury store in Paris. Phillips added that historical
documents prove the former emperor took it with
him to a Soviet prison camp in Khabarovsk,” writes
Oliver Hollands of CNN.
“H later gifted it to Georgy Permyakov, a fluent
Mandarin speaker who served as his tutor and
Russian translator during his time in detention.
Almost a decade after returning to China, Puyi was
pardoned and lived as a civilian in Beijing until his
death in 1967.
“Permyakov, meanwhile, kept the watch until he
died in 2005, after which it was passed to his heirs
before being consigned to Phillips by its current
owner in 2019.”
The watch was sold to an unidentified phone bidder
from Hong Kong and is the most valuable timepiece
sold by Phillips Watches in Asia.
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120979 LC Christmas Catalogue 2022_P1-7.indd 1 1/7/2022 9:45 am
FOR SALE: ICONIC ADELAIDE
JEWELLERY STORE
$345,000 Plus Stock as Valued
Karrans of Hyde Park Watch and Jewellery Specialists.
Karrans of Hyde Park has a long history in the Adelaide Jewellery market
and is well known for the quality of its service and products. With a fantastic
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Points about the business below
• Established in 1957
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122245_La_Couronne_2022_International_Jewellery_Fair_Trade_Ad.indd 1
14/7/2022 10:46 am

International Jewellery
Fair 2023
Something for everyone at blockbuster International Jewellery Fair
The International Jewellery Fair is approaching
and organisers Expertise Events have confirmed a
schedule of special events and presentations.
The major focus for this year’s industry gathering
(19-21 August) will be innovation, headlined by the
introduction of a new speciality education hub.
With the introduction of this speciality hub, Expertise
Events general manager Zac Fitz-Roy told Jeweller
the Sydney Fair was an opportunity not to be missed.
"We are incredibly excited about the #MORE-Ideas,
Inspiration, Information theme for this year's
International Jewellery Fair," he said.
“We have curated an exceptional line-up of exhibitors
one of our biggest lists in a decade. The activities will
ensure that attendees have access to unparalleled
opportunities for improving their businesses, along
with networking and knowledge-sharing.”
Moreover, this year's fair will debut a new premier
lounge, providing a luxurious retreat for VIP guests
and industry leaders.
The premier lounge is designed to serve as a haven
for networking, fostering new connections and
collaborating among industry professionals.
One of the Australian jewellery industry’s most
high-profile and influential figures, Karin Adcock,
will make a surprise return to the Sydney Fair. Today,
Adcock has traded one luxury for another - moving
from jewellery to wine as the owner of Winmark
Wines in the Hunter Valley.
The Sydney Fair has three major sponsors this year.
Shree Ramkrishna Exports Pvt. Ltd. (SRK), a leading
supplier of natural diamonds is a ‘diamond’ level
sponsor while diamond jewellery manufacturer AV
Diamonds will support the IJF as a ‘platinum’ level
sponsor. US-based lab-created diamond company
Classic Grown Diamonds is a gold level sponsor.
Expertise Events managing director Gary Fitz-Roy
said he admired the respective commitment of SRK,
AV Diamonds, and Classic Grown Diamonds
in supporting and elevating the jewellery trade.
“Their commitment to excellence in the jewellery
industry makes them a perfect fit for our event, and
we look forward to working with them to create an
unforgettable experience for our attendees,” he said.
"We have already had to expand the floor area to
accommodate increased demand, and the 2023 IJF
will have the biggest number of exhibitors in the
past decade."
The IJF will be hosted at the International
Convention and Exhibition Centre in Darling
Harbour over three days.
» HAPPY HOUR
The traditional happy hour
cocktail party is scheduled to
go ahead with free stubby
holders distributed courtesy of
Paterson Fine Jewellery.
The special Winmark winetasting
session is also sure to be popular, led by
former Pandora Australia CEO Karin Adcock.
On the second day of the Sydney Fair (20 August)
Adcock will host a four-hour wine-tasting session.
“I still have a lot of love for the jewellery industry
and have so many good friends not only among the
retailers, but also with the wholesalers, and so to
be able to come back and see everyone and share a
glass will be quite special,” Adcock told Jeweller.
» 'THE POWER OF VISIBILITY'
• Publicist Karen Eck will be giving
a special presentation titled ‘The
Power of Visibility’ and lead a
discussion about how to boost the
profile of your business is a noisy
and competitive environment.
» WHAT’S MY BUSINESS REALLY WORTH’?
Nationwide Jewellers managing director Colin
Pocklington will lead the ‘What’s My Business
Really Worth’ session, detailing the importance
of understanding the value of your business.
In an era where retailers must adapt to rapidly
changing market dynamics, understanding the
true worth of your business is not a luxury; it
is a necessity.
» WHAT DOES THE FUTURE HOLD?
Understanding industry laws and regulations
is vital, and Alex Engel –
assistant secretary
of the transnational crime
branch of the Attorney
General’s Department – will
host a session on proposed
reforms to Australia’s antimoney
laundering and counter-terrorism
financing regime.
The presentation will cover the purpose of the
reforms, the consultation process and timing, how
the proposed regulation may impact jewellery
retailers and suppliers, and what it would look like
to be regulated under the AML/CTF regime.
“These reforms would extend the existing AML/
CTF regime to help industry, including dealers in
precious stones and metals, protect themselves
from exploitation from money launderers and
other criminal actors,” said spokesperson for the
Attorney-General’s Department told Jeweller.
» LIVE DEMONSTRATIONS
» Innovation and technical creativity will be in the
spotlight at the Sydney Fair, with Arya Opal Cutters
hosting a live opal cutting demonstration while
SABA Co will showcase live jewellery making.
» WIN A DIAMOND
As is always the case, special prizes will be
up for grabs – with Salt and Pepper Diamonds
hosting a contest to win a one-carat diamond.
» FREE CARICATURES
On the lighter side of things,
free caricature drawings for
visitors will be created by Sydney
cartoonist Brett Bower.
» PREMIUM VIP LOUNGE
This year's fair will debut a new premier lounge,
providing a luxurious meeting place for
VIP guests and industry leaders.
The premier lounge will encourage networking,
discovering rewarding connections, and fostering
comunication between industry professionals.

Long live
love.
International Jewellery Fair.
Stand E01. 19-21 August 2023.
Visit us at the International
Jewellery Fair to discover new
styles and learn more about
our Bespoke by BECKS service.
Proudly crafted in our South
Australian studio.
Toll Free. 1800 888 585
Email. info@becksgroup.au
Web. becksgroup.au

10 Years Ago
Time Machine: July 2013
A snapshot of the industry events making headlines this time 10 years ago in Jeweller.
Historic Headlines
4 Apple applies for iWatch trademark
4 Swatch reveals Harry Winston plans
4 Diamond crown shines at Miss Universe Australia
4 Smuggler has 129 diamonds in sock
4 Hollywood legends’ watches fetch high prices
World’s largest synthetic
diamond centre opens
A new £20 million ($AU33m) synthetic
diamond facility, which has been billed as the
largest and most sophisticated in the world,
has opened near Oxford in the UK.
The Global Innovation Centre – operated by
Element Six, a company that falls under the
De Beers Group banner – will be used for
the research and development of synthetic
diamonds for industrial purposes like
electronics and oil and gas drilling equipment.
Given the increasing prominence of labcreated
diamonds within the jewellery
industry, Jeweller went to the source to
ascertain what impact, if any, the new
facility would have on diamond-sellers.
Element Six will employ more than 100 staff
members at the 5,000m² facility in Harwell,
Oxfordshire.
Michael Hill ‘satisfied’ with
financial year results
Michael Hill International has reported a 6.8 per
cent increase in revenue for the financial year
ending 30 June 2013, even though sales were
said to be difficult in all of its markets during
the fourth quarter.
The company directors were reportedly satisfied
with the performance results, especially given
the “ongoing challenging environment”.
Specific figures for the final quarter have not
yet been released, but according to a company
statement, sales were flat in Australia and
negative in New Zealand, Canada and the US.
Overall sales for the year increased to
NZ$542 million (A$464.5m). Same-store
revenue for the New Zealand stockexchanged
listed retailer rose 0.4 per
cent to NZ$493 million (A$421.9m).
July 2013
ON THE COVER Dora
Editor’s Desk
4What is fine jewellery?
"Consumers are simply shopping for
jewellery at a range of different price
points and various styles, and yet I still
come across people who believe there is
a need to have two classes of jewellery
even though no one can define them.
In some cases, it’s a topic that can even
incite extreme passion and rage.
Since that first debate seven years ago,
the industry has continued to evolve.”
Soapbox
4 Under-appreciation is our own fault
“I, for one, don’t want to see the demise
of the skilled artisan. It’s already tough.
I had to beg my repairer to come out of
retirement for another year to work for
me.
Don’t let jeweller training disappear,
hire great salespeople and pay them
well, educate customers about the value
of a good jeweller and jewellery store
and support the industry by sourcing
quality product.
Promote your expertise so that
consumers appreciate what we do and
are happy to pay for our services.”
Mario Basso – Mario’s Jewellers
STILL RELEVANT 10 YEARS ON
Paying the premium
“Know what you want: this sounds fairly
obvious, but all too often people write a
brief without having this clearly defined,
in the hope that it will pan out as the
process unfolds.”
Nick Fairburn
Jewellery chains under fire
READ ALL HEADLINES IN FULL ON
JEWELLERMAGAZINE.COM
A number of jewellery chain stores may be
breaking the law by forcing staff to purchase
jewellery items that must be worn while
working on the shop floor.
The news comes after employees at retail
outlets Diva and Lovisa claim that they were
pressured into spending a significant portion
of their salary keeping up to date with the
store’s latest jewellery ranges.
The aim is for staff to promote the store’s
offering by actively wearing new product at
work, however such practices may be a breach
of the Fair Work Act.
Under the Act, if an employer requires its staff to
wear "special" items it must either provide the
items or reimburse the cost of purchasing the
pieces to the employee. Compensation cannot be
made through staff discounts.
$150 million jewellery heist
For the third time this year, Cannes has
featured as the location of a major jewellery
robbery, this time to the tune of EUR103
million (A$149m), also making it one of the
world’s largest jewellery thefts.
Authorities had initially estimated the heist
was worth EUR40 million (A$57m), but after an
inventory of the exhibition, the figure was revised
up to EUR103 million.
At around noon on Sunday 28 July (local time) a
lone gunman, wearing a baseball cap with his
face hidden by a bandana or scarf, walked into
the prestigious Carlton Intercontinental Hotel
through the front entrance. He then raided the
“Extraordinary Diamonds” exhibition, escaping
with jewellery and watches that he loaded into
a briefcase.
30 | July 2023

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32 | July 2023
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REVIEW
Gems
Game-changing Gemmologists: René-Just Haüy
After the completion of the well-received Tools of
the Trade series, it seems only fitting that Jeweller
should next delve into the men and women who have
sharpened the modern world of gemmology.
While he was not strictly a gemmologist, it makes
sense to begin this series by introducing man
considered to be the founding father of crystallography
- René-Just Haüy.
Haüy was a French priest and mineralogist, born in
1743. The son of a poor linen worker, it was only after
the prior of the abbey at his church noticed Haüy’s
intellect and keen interest in learning that an education
was arranged for him.
He served as a professor at the Collège de Navarre,
before becoming a professor of mineralogy at the
Museum of Natural History in Paris in 1802 and later at
the Sorbonne in 1809.
In one version of the tale, a critical moment behind the
discovery of crystalline structure occurred when Haüy
accidentally dropped a calcite crystal onto the floor –
shattering it on impact. If you’ve seen for yourself the
step-like structure of a broken piece of calcite, you can
see why this specimen piqued Haüy’s interest in the
internal arrangement of crystals.
Upon examining the fragments of calcite, he noted
it “had a single fracture along one of the edges of
the base. I tried to divide it in other directions and I
succeeded, after several attempts, in extracting its
rhomboid nucleus”. Haüy had discovered ‘cleavage’.
By continuing to break calcite into smaller pieces and
observing the same step-like feature, he concluded it
had the same internal structure regardless of its size.
Prior to Haüy's research, the understanding of crystal
structure was limited to external morphology. An
example of this is the important contribution Nicolas
Steno made to the world of mineralogy with his
observation that for a particular mineral, the angles
between corresponding faces of a crystal are constant
regardless of size, origin, or habit.
Following his observations of how crystals cleaved,
Haüy devised that all crystals were periodic, with a
repetitive pattern formed by the stacking of what he
termed molécules intégrantes or integral molecules.
These ‘integral molecules’ are known to be unit cells.
A unit cell is, by today’s definition, ‘the smallest unit of
a structure that can be infinitely repeated to generate
the whole structure’ of a crystal.
René-Just Haüy
FRENCH MINERALOGIST
» Born: 28 February 1743
Saint-Just-en-Chaussée, France
» Died: 1 June 1822 (Aged 79)
Paris, France
Engraving from Prodomus Cristallographiae,
de Crystallis Improprie sic Dictis
Commentarium, M. A. Cappeler, 1723
This explanation demonstrated that the external
morphology of a crystal was an expression of its
internal order and was enabled sense to be made of
the different habits (different shapes) the same mineral
may display.
For example, both an octahedral diamond and the
much rarer cubic diamond have the same unit cell that
has been stacked differently internally on an atomic
level to achieve two different shapes externally.
This revelation contributed immensely to the
separation and identification of minerals, as well as
further developments in crystal symmetry.
Throughout his career, Haüy published various works
contributing to crystallography and other realms
of science, including the four-volume Traité de
Mineralogie (1801).
Accompanying this Traité was a fifth volume - an atlas
- complete with almost 600 diagrams and illustrations
of the many crystal structures he had identified.
Believed to be the same structures depicted in this
volume, Haüy also had 597 crystallographic shapes
commissioned as wooden models.
This was done to showcase the three-dimensional
nature of each structure - a teaching practice
many student gemmologists still encounter and
appreciate today.
Reading of his contributions to the field of
crystallography, some may think Haüy’s work to be
a bit detached from gemmological practice today.
However, as any good gemmologist would know, it is
this understanding of a crystal’s internal structure that
allows us to separate one gemstone from another.
Haüy’s ground-breaking study opened the door for
researchers to recognise cleavage and planes of
weakness, to predict in which directions a gemstone
may appear different colours (pleochroism), or to
understand how light may interact with a gemstone,
just to name a few of the properties dependent on
crystal structure.
Mikaelah Egan FGAA Dip DT began her career
in the industry at Diamonds of Distinction in 2015.
She now balances her role at the Gemmological
Association of Australia with studying geology at
the University of Queensland. Visit instagram.com/
mikaelah.egan For more information on gems and
gemmology, go to www.gem.org.au
July 2023 | 33

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DIAMOND INDUSTRY UPDATE
Embracing Reality
2.5CT NATURAL CENTRE STONE
LAB-CREATED SHOULDER STONES
NATURAL SHOULDER STONES
by PRANAY NARVEKAR &
CHAIM EVEN ZOHAR
5CT LAB-CREATED CENTRE STONE
THE INEVITABLE RISE OF
HYBRID-DIAMOND JEWELLERY
EMBRACING
REALITY
Who knows what the future holds? PRANAY
NARVEKAR and CHAIM EVEN-ZOHAR examine the
road ahead for natural and lab-created diamonds.
FEATURE FIRST PUBLISHED
BY IDEX ONLINE
Our office secretary was overjoyed. The right man had
finally popped the question and sealed it with a beautiful
diamond ring. She showed it to all her co-workers. In the
centre was a large lab-created diamond, surrounded by dozens of
small natural diamonds.
What would you call such a piece of jewellery? Is it mostly natural, partly
lab-created, mixed, or something else entirely?
In our latest pipeline report, we are adapting to reality and coining a new
term - hybrid diamond jewellery – to describe a piece of jewellery that
features both natural and lab-created diamonds.
To ensure transparency and maintain consumer trust, it is essential for
retailers to offer a choice between three types of diamond jewellery: natural,
lab-created, and hybrid.
The popularity of hybrid diamond jewellery will slow the pace of expansion for
pure lab-created diamonds, offering a transparent in-between alternative.
The hybrid label could herald the end, more or less, of the undisclosed labcreated
that have tarnished the reputation of the entire diamond market.
De Beers’ Lightbox brand may maintain its niche in the more affordable
ranges. Hybrid diamond jewellery is already becoming a niche of its own.
And it’s a beautifully appealing niche - just ask our delighted office secretary.
Hybrid jewellery allows retailers to cater for a range of consumer
preferences while maintaining trust in their products.
Our industry is changing fast, and we are responding to that change by
splitting our diamond pipeline for 2022 into two separate pipelines – natural
and lab-created.
The gemstone-quality lab-created diamond business is now a distinct,
separate and expanding part of the industry. We believe it is important to
differentiate accurately between the natural and gemstone-quality labcreated
diamond pipelines.
Chaim Even-Zohar published his first Tacy Pipeline back in 1988. Under the
new management of Pranay Narvekar, we are embracing new realities.
The natural diamond jewellery retail market in 2022 totalled $US73.85 billion
($AU110.72 billion).
July 2023 | 35

Embracing Reality | IDEX DIAMOND INDUSTRY UPDATE
The lab-created retail market mushroomed to $US12.24
billion($AU18.35 billion). We can’t say exactly what share
hybrid diamond jewellery represents out of the $US86.09
billion ($AU129.07 billion) global diamond retail market,
however; we do know it’s expanding.
Diamond content in a natural diamond jewellery piece
represents 25 per cent of the retail price, compared with 17
per cent in lab-created diamond jewellery, according to our
Pipelines. We estimate a figure of around 20.5 per cent for
hybrid pieces.
We believe the hybrid diamond jewellery market, at retail
polished values, is worth $US2.2 billion ($AU3.3 billion) to
$US2.6 billion ($AU3.9 billion).
It could be more, however; certainly not less. Most of that
is from lab-created companies seeking to ‘upgrade’ their
product for marketing purposes.
That would value the diamond jewellery retail market
at around $US73 billion ($AU109.4 billion), lab-created
diamond jewellery retail sales at $10.69 billion ($AU16.02
billion), and 2022 hybrid diamond sales at $2.4 billion
($AU3.6 billion).
Transparent third category
Diamond jewellery is part of a global jewellery market that’s
increasing at eight per cent per year. Are we maintaining or
increasing our share in that total pie? Or are we outpacing
that expansion?
The advent of lab-created means we no longer need to
be preoccupied with the traditional constraints of limited
natural production.
We should be honest enough with ourselves to recognise
that and turn the new reality to our advantage.
If we assume the global jewellery market is worth $US210
billion ($AU313.9 billion) to $US220 billion ($328.8 billion),
and the global diamond jewellery market is estimated to be
40 to 50 per cent of that amount, the global diamond retail
market should be in the range of $US80 billion ($AU119.6
billion) to $US110 billion ($AU164.4 billion).
Our two pipelines put the 2022 total at $US85.57 billion
($AU127.92 billion). We recognise that we have, over the
years avoided overstating the facts we find.
It could be more, but certainly not less. Our hybrid diamond
jewellery category would bring greater transparency for
more than one reason.
K E Y STATS
Hybrid
Diamond
Jewellery
$US73.8b
Estimated natural diamond
jewellery retail market
in 2022
$US12.2b
Estimated lab-created
diamond jewellery retail
market in 2022
$US210b
Value of the global
jewellery market in 2022,
with diamond jewellery
comprising of at least 40
per cent of that total
26-28m
Estimated total
lab-created diamond
production in carats in 2022
20%
Contraction of the diamond
jewellery retail market in
Hong Kong in 2022 due to
the pandemic
The presence of undisclosed lab-created diamonds in the
market has inflated the apparent size and value of the
natural diamond market, as some lab-created diamonds
are sold at natural diamond prices.
We hope the new hybrid classification will motivate
diamantaires, when doing a cost-benefit calculation
versus the risks taken, to lower the volume of
undisclosed lab-created sales.
US customs authorities require invoices for jewellery
imports to include a breakdown of natural and lab-created
diamonds. A retailer will instantly know that it’s hybrid
diamond jewellery.
The term is catchy, almost sexy, and currently very
fashionable. Organisations fighting the lab-created
market may not be happy, however; eventually they’ll
come to realise that the hybrid diamond jewellery label
provides added transparency and disclosure.
And what about mixing with other gemstones? That can
never be called hybrid diamond jewellery, a term that must
be reserved exclusively for a mix of natural and lab-created
diamonds. Nothing more. Nothing less.
While most, or many, consumers may continue to prefer
jewellery containing only natural diamonds, others might
appreciate the cost savings and ethical advantages that
come with incorporating lab-created diamonds.
Lab-created volumes or sales exceeding those of natural
diamonds is an inflection point for the business.
The tipping point is consumers losing confidence in
diamonds as a luxury product – leading to the eventual
demise of the diamond dream.
That’s why our office secretary is so happy with her hybrid
diamond ring.
Macro and transition
Retail demand for diamond jewellery has been fueled in
recent years by the US government’s $US5.7 billion ($US8.5
billion) COVID-19 stimulus.
More than half was handed out in 2021, driving demand
for all goods, not just diamonds, well into 2022.
Data from the US Bureau of Economic Analysis clearly
shows a year-long plateau in US diamond jewellery sales
from September 2021.
Sales then started to decrease and are currently about
seven per cent lower, a decline that was apparent by Q3
36 | July 2023

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Embracing Reality | IDEX DIAMOND INDUSTRY UPDATE
180
160
140
DEMAND PLATEAU
Jewellery Consumption Expenditure
Demand Plateau
120
100
80
60
40
2018 2019 2020
2021 2022
JEWELLERY CONSUMPTION
EXPENDITURE INDEX
Demand actually exceeded expectations and
the decline was lower than expected. Banking
experts estimate that the US consumer used the
stimuli to increase savings, but those savings
are expected to run out by the end of 2023.
Source: Bureau of Economic Analysis,
US Department of Commerce
2022.
The authors have written previously about
the expected slowdown in the US retail
jewellery market and its impact on rough and
polished diamonds.
Demand actually exceeded expectations and the
decline was lower than expected. Banking experts
estimate that the US consumer used the stimuli
to increase savings, however; those savings are
expected to run out by the end of 2023.
Natural diamond pipeline
High inflation, coupled with low unemployment,
buoyed the jobs market in the US, despite the US
Fed increasing the interest rate by a record 4.25
per cent in 2022.
Inflation and salary increases boosted consumer
confidence. Overall jewellery demand increased by
about three per cent, however; demand for natural
diamond jewellery actually declined.
The US dollar also strengthened significantly
during 2022, with the dollar index being up
about 12 per cent for the year. A higher US dollar
adversely affects demand from countries with
currencies not pegged to the dollar.
Together they represent 35 per cent to 40 per
cent of total demand. In China and Hong Kong,
demand for jewellery was severely affected by
lockdowns imposed as part of the government’s
zero COVID-19 policy.
The overall economy also faced headwinds, as
imports into the US were affected by both the
increasing tensions between the country as well as
lower export orders due to geopolitical uncertainty.
Hong Kong also had far fewer tourists from
mainland China. Overall the market in the region
contracted by nearly 20 per cent.
India was one of the bright spots, with the market
increasing by nearly seven per cent. The economy
remained strong, despite a weak rupee.
The overall global jewellery demand remained
positive - about one per cent higher at $US86.09
billion ($AU128.7 billion) - despite weakness in
some countries.
In the first couple of months of 2022, rough and
polished demand and price increases rivalled
those seen in the first half of 2008 and 2011.
However, these increases were clearly market
exuberance. The market for natural polished
diamonds actually decreased as demand for
lab-created jewellery cannibalised natural
diamond demand.
“Our industry is changing fast, and
we are responding to that change by
splitting our diamond pipeline for
2022 into two separate pipelines –
natural and lab-created.”
After accounting for the bull-whip effect of
stocking, polished demand declined by about eight
per cent to $US20.36 billion ($AU30.52 billion).
Fragmentation of rough supplies
The Ukraine war, and the subsequent sanctions
on Alrosa, helped the industry digest the excess
purchases in the first couple of months as rough
supplies were interrupted.
As the industry recovered and new supply
mechanisms from Russia were developed, the
market was able to accept the supplies.
Rough diamond supplies, which had been
very global in nature before the war, started to
become fragmented.
Large clients, based on political or societal
compulsions, started asking mid-stream suppliers
to ensure there were no diamonds of Russian
origin in the goods supplied to them.
The sword of sanctions by the G7 continues to
hang over the industry to date.
This provided a boost for proponents of traceability
and origin within the industry, which we believe
remains an issue of cost.
It will cost the midstream $US1 billion ($AU1.5
billion) to $US1.5 billion ($AU2.25 billion) to
implement it across the pipeline.
Small diamonds remain the challenge, mainly due
to the sheer volume, with an estimated billion such
diamonds polished every year.
Customers willing to pay the price will be able to
get the transparency they desire.
Overall, total rough production during 2022
was more than 125 million carats, with both De
Beers and Alrosa increasing production for their
respective reasons.
In terms of value, total mine sales were about
$US16.49 billion ($AU24.72 billion) or about 6.6 per
cent above those in the previous year.
Polishing started to become unprofitable by the
second half of the year, as demand declined.
After a highly profitable 2021, polishers were able
to sustain some rough buying, in the hope that
prices would moderate.
This weakness continued into 2023, as polishers
eventually started to reduce the amount of natural
rough they put into production.
From supply led to demand-driven
The structure of the lab-created industry is much
more vertically integrated than its
natural counterpart.
Most of the new chemical vapour deposition (CVD)
capacity in India is by companies already in the
natural diamond business.
They polish most of their own rough, as opposed to
CVD producers in other countries, which sell their
rough to Indian polishers.
High pressure high temperature (HPHT)
technology-based rough is predominantly
used for small diamonds in China, which
has the infrastructure to produce industrialquality
diamonds.
Companies with distribution capabilities not only
polish their rough, they also produce and sell
jewellery, set with their own lab-created products,
direct to retail companies.
38 | July 2023

FEATURE FIRST PUBLISHED
BY IDEX ONLINE
NATURAL
TACY'S 2022 DIAMOND PIPELINE IN $US BILLION
IDEXONLINE.COM
Direct costs of
rough production
7.55
Direct cost of production
Including stock value depreciation
Rough production value
16.53
AUSTRALIA
0.0
ANGOLA
1.85
DRC
0.41
NAMIBIA
1.26
BOTSWANA
5.12
S. AFRICA
1.65
RUSSIA
3.30
CANADA
1.89
ZIMBABWE
0.41
LESOTHO
0.33
OTHERS
0.31
Mines sales to industry
16.49
INDEPENDENT
6.91
ALROSA
3.60
DTC/DB
5.98
Net rough used for
local production
16.10
BELGIUM
0.17
ISRAEL
0.38
INDIA
12.86
USA
0.10
S. AFRICA
BOTSWANA
1.42
CHINA
0.45
THAILAND
& OTHERS
0.29
RUSSIA
0.43
Value of polished
production
20.56
BELGIUM
0.21
ISRAEL
0.50
INDIA
16.53
USA
0.12
S. AFRICA
BOTSWANA
1.71
CHINA
0.57
THAILAND &
OTHERS
0.38
OTHERS
0.54
Polished sales
20.36
Value of recycled
polished
0.18
Value of recycled diamonds
(consumer sell backs) re-entering pipeline
Retail diamond
content
19.37
USA &
CANADA
10.94
EUROPE
& SA
1.48
HK/CHINA
TAIWAN
1.89
JAPAN
1.08
INDIA
1.33
GULF &
TURKEY
1.42
REST OF
WORLD
1.23
Value of diamond
jewellery
73.85
USA &
CANADA
42.90
EUROPE
& SA
4.83
HK/CHINA
TAIWAN
7.92
JAPAN
3.46
INDIA
4.71
GULF &
TURKEY
6.11
REST OF
WORLD
3.92
© 2023 COPYRIGHTS BY TACY LTD. AND
PHAROS BEAM CONSULTING LLP STRICTLY RESERVED.
REPUBLISHED WITH PERMISSION FROM PRANAY NARVEKAR
July 2023 | 39

Embracing Reality | IDEX DIAMOND INDUSTRY UPDATE
14%
3%
Overall, the retail jewellery market for gemstone
quality lab-created diamonds is estimated to be
about $US12.24 billion ($AU18.35 billion) or 14 per
cent of the total global retail jewellery market.
Jewellery demand increased by
about three per cent, however;
demand for natural diamond
jewellery actually declined.
In many cases sales are on memo, as retailers are
averse to taking risks with lab-created stocks.
This vertical integration also means values are
more dependent on internal transfer prices within
the companies as they move through the various
stages of production and jewellery.
As a result, we have skipped a few stages in our
lab-created pipeline.
The lab-created industry had its own transition
during 2022, shifting from a supply-led industry to
a demand-driven one.
“The term is catchy, almost sexy,
and currently very fashionable.
Organisations fighting the lab-created
market may not be happy, however;
eventually they’ll come to realise that the
hybrid diamond jewellery label provides
added transparency and disclosure.”
In 2020 and 2021 the lab-created segment was
increasing its market share, as the market
ballooned, leading to explosive expansion.
It sold almost everything it could produce during
those years. Companies that had taken the leap
of faith and invested in lab-created technology 3-4
years prior benefitted from that expansion.
By mid-2022, just as the retail increase in the
US plateaued, lab-created production capacity
improved as penetration in retail stores started
to slow.
More than two-thirds of stores began carrying
lab-created diamonds, leading to slower
stocking demand.
The bull-whip effect of the slowing stocking
demand further impacted demand for polished
lab-created diamonds.
Prices across all polished lab-created categories
declined as a result by about 50 to 65 per cent
during the year.
The US accounted for more than 82 per cent of the
retail lab-created jewellery market. While it is the
main market for natural diamonds as well, the labcreated
market share reached about 19 per cent.
It was initially expected that lab-created diamonds
would fit into the fashion jewellery market,
however; that wasn’t the case. They penetrated the
bridal jewellery market first, driven by ever larger
diamonds produced using the CVD technology.
Lab-created demand in other countries is
still nascent. Consumers in China and India
put more emphasis on the resale value of the
product, and have yet to wholeheartedly adopt
the lab-created category.
Overall, the retail jewellery market for gemstone
quality lab-created diamonds is estimated to
be about $US12.24 billion ($AU18.35 billion)
or about 14 per cent of the total global retail
jewellery market.
The total value of lab-created diamonds which was
polished globally is estimated at around $US2.78
billion ($AU4.17 billion), with most goods polished
in India due to the lower labour costs.
Most smaller diamonds are polished in
India, although a few producers polish larger
diamonds elsewhere.
Gemstone quality rough producers are more evenly
distributed. China produces the most carats due to
its greater reliance on HPHT technology.
India has seen some of the largest investment
in new CVD capacity, with many natural diamond
companies diversifying into lab-created diamonds.
Indian banks have also been more open to
financing the establishment of lab-created
production facilities.
US production is dominated by three or four
companies, including De Beers, which has its
facility there. These companies currently seem to
be the leaders in terms of production technology.
Gemstone quality lab-created production is
estimated at $US1.38 billion ($AU2.07 billion).
There could be valuation differences in this
estimate, as in many cases these are internal
transfers with the companies.
Total lab-created production is estimated at about
26 to 28 million carats. The authors have previously
stated their strong belief that lab-created
diamonds are not a typical ‘diamond business’ and
that regarding them as a separate business could
lead to better management.
As the lab-created market transitions from
a seller’s market to a buyer’s, extra-normal
profits from the lab-created pipeline will
disappear, leading to eventual consolidation
within the sector, as companies combine to stay
afloat and stay relevant.
Vertical integration can maximise the benefits of
planning efficiencies.
Lab-created industry – victim of its own success
In the US bridal market, retailers sold larger labcreated
diamonds as a same-price alternative to
smaller natural diamonds.
Retailers were able to capture the same consumer
spend while making much better margins -up to
70 per cent - on the products.
“The overall economy also faced headwinds,
as imports into the US were affected by both
the increasing tensions between the country as
well as lower export orders due to geopolitical
uncertainty.”
Happy customers felt they’d got an upgrade.
That explains how lab-created diamonds have
penetrated more than 25 per cent of the bridal
market, however; this approach can cause longerterm
problems.
As lab-created diamond prices continue to fall,
retailers now need to sell bigger lab-created
diamonds than in the past year – to reach a similar
transaction dollar value.
This has the potential to leave older customers
very dissatisfied. Retailers who may have made
false promises about lab-created diamonds
should beware.
It may not take long for some enterprising
lawyer in the US to file class action lawsuits
against retail jewellery companies for misselling
lab-created diamonds.
Retailers have also benefitted from a decline
in wholesale lab-created prices, leading to
better margins.
In 2023, price wars are likely to extend into the
retail space. All you need is a large retailer or
40 | July 2023

FEATURE FIRST PUBLISHED
BY IDEX ONLINE
LAB-CREATED
TACY'S 2022 DIAMOND PIPELINE IN $US BILLION
IDEXONLINE.COM
LGD
production costs
0.46 7.3
Direct cost of production
Including stock value depreciation
LGD
production value
1.38
CHINA/HK
0.39
EUROPE
0.09
INDIA
0.32
SE ASIA
0.16
USA
0.28
OTHERS
0.14
LGD used for
local production
2.05
CHINA
0.17
INDIA
1.58
USA
0.16
OTHERS
0.14
Polished LGD
production
2.78
CHINA
0.22
INDIA
2.16
USA
0.21
OTHERS
0.19
Retail LGD
content
2.03
AMERICAS
1.63
EUROPE & SA
0.08
CHINA
0.11
JAPAN
0.02
INDIA
0.08
GULF
0.07
OTHERS
0.04
Retail LGD
jewellery
12.24
AMERICAS
10.08
EUROPE & SA
0.44
CHINA
0.62
JAPAN
0.11
INDIA
0.39
GULF
0.39
OTHERS
0.21
© 2023 COPYRIGHTS BY TACY LTD. AND
PHAROS BEAM CONSULTING LLP STRICTLY RESERVED.
REPUBLISHED WITH PERMISSION FROM PRANAY NARVEKAR
Note: The Lab Grown pipeline only considers the gem quality lab grown diamonds and does not
cover the diamonds grown for industrial purposes.
DeBeers' Lightbox
July 2023 | 41

Embracing Reality | IDEX DIAMOND INDUSTRY UPDATE
6.6%
25%
In terms of value, total mine sales
were about $US16.49 billion ($AU24.72
billion) or about 6.6 per cent above
those in the previous year.
Diamond content in a natural diamond jewellery
piece represents 25 per cent of the retail
price, compared with 17 per cent in lab-created
diamond jewellery, according to our Pipelines.
online seller to come out with aggressive price
points for lab-created staple products, such as
studs or solitaire rings, to trigger a price war.
Ultimately, retailers focus on their gross margin
per square foot. Slashing prices, even with better
margins, means they’d need to sell many more
pieces to make up for the loss in value.
This might not be easy, especially when highest
value sales have been in bridal jewellery, and
a decline in weddings and engagements is
expected this year.
Lab-created jewellery margins and profitability
ratios are likely to achieve parity with natural
diamond jewellery within a couple of years,
however; retailers will now need to sell much
higher volumes (or significantly larger sizes) to
even maintain their gross income.
There was great fear and anxiety in 2014-2016,
as parcels of natural diamonds ‘peppered’
with lab-created diamonds started appearing
in the midstream.
With the advent of reliable and affordable detection
machines, those fears and anxieties subsided. De
Beers’ Lightbox foray gave the lab-created industry
the credibility it craved and opened up the path to
the expansion witnessed in the past few years.
Companies that started dealing in lab-created
diamonds and jewellery are now seen to have
made a smart choice.
Disclosed lab-created diamonds are now part
and parcel of an industry that has passed its
inflection point.
In fact, the production volume of polished labcreated
diamonds under 0.2 carats, such as
pointers and above sizes, exceeded the production
of polished from natural diamonds for the first
time in the past year.
Market increases in 2021 masked the real damage
it had suffered – something the authors lamented
in the 2021 pipeline report.
The diamond industry was, at the time, living in the
hope that lab-created diamonds would find their
own level in the market both in terms of price and
market segment. And that natural and lab-created
diamonds could co-exist and expand in their
respective areas.
Was this consensus view realistic, or were the
initial fears and anxieties actually justified?
The diamond market, both natural and labcreated,
is based on the fundamental assumption
that consumer desire for diamonds will continue.
That desire stems from the perception of diamonds
as a luxury. Given the current situation, we need to
question whether that perception of diamonds will
continue in the future.
Natural diamonds have always been seen as a
symbol of luxury. The biggest and the brightest of
them have been flaunted by royals and celebrities,
and wars have been fought over their possession.
"Large clients, based on political
or societal compulsions, started asking
mid-stream suppliers to ensure there
were no diamonds of Russian origin in
the goods supplied to them.”
Diamonds became the leading symbol of wealth
and power, the ultimate social signifier.
This aspirational nature of diamonds was
cultivated by De Beers through more than 80 years
of marketing campaigns and by limiting supplies
through the cartel system, as limiting the supply
of products is equally important to retain their
perception of luxury.
Establishing a bond between diamonds and
emotional moments in the consumer’s life,
together with the ‘three months’ worth of salary
rule’ for wedding rings cemented their position as
a social signifier.
The wider availability of smaller and lower quality
diamonds, the so-called Indian gemstone quality,
democratised diamonds, however; larger and
higher quality stones retained their luxury appeal
due to continued scarcity.
Just as luxury brands offer lower-priced
accessories so that consumers can experience the
brand, lower-priced jewellery allowed consumers
to experience and build up their diamond dream.
The size and quality of diamonds worn became a
social signifier. The industry has been confronted
with the vagaries of demand and supply in the past
two decades since the De Beers cartel dissolved.
Diamond prices initially stagnated and have
actually fallen by more than 25 per cent since
their 2011 peak, despite pandemic-induced
price increases.
Lab-created inroads to the larger diamond market
have threatened the very status of diamonds as a
social signifier.
Our office secretary was overjoyed with her hybrid
jewellery, and would even have been smiling with
lab-created jewellery.
Lab-created have made large diamonds
accessible to the middle classes, and in doing
so they have challenged the very notion of
diamonds as a social signifier.
This will have implications for not only natural
diamonds but the lab-created category as well. We
believe that in the next year or two, consumers will
be able to purchase a pair of earrings – each with
two five-carat solitaire lab-created diamond studs
– for less than $US2,500 ($AU3,741).
The natural diamond equivalent would cost 100
times as much at today’s prices.
One only has to look at what happened to Coach
handbags or Ralph Lauren clothing when they
became more widely available - regarded simply as
a premium product - rather than a luxury.
Such easy availability could threaten the very
notion of a diamond being a luxury.
To again quote from the Kapferer and Bastien
book: “Luxury objects are objects of luxury brands.
Only diamonds are luxury objects appreciated
without brand.
"What counts is their size and purity. For everything
else, there is no luxury without brands: even an
emerald is from Colombia, a ruby from Burma, a
caviar from Iran.”
The worst-case scenario is that we reach a point
when any diamond jewellery is automatically
assumed to be lab-created.
Without visible branding, the diamond would
have no aspirational value. Will celebrities still
want to flaunt their diamonds when they no
longer signify wealth?
42 | July 2023

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Embracing Reality | IDEX DIAMOND INDUSTRY UPDATE
5%
A five per cent decline in global natural
diamond jewellery translates into a decrease
in polished demand of 11 per cent - or about
$US18.1 billion ($AU27 billion) in sales.
Will our secretary still be as pleased to get
hybrid jewellery? Will this be the end of the
diamond dream?
Stores closing, business shrinking
The impact of the tipping point - diamonds not
being considered a luxury by consumers - will
be felt right across the chain, from retail to
rough and by both the natural and lab-created
diamond pipelines.
Consumers will still buy diamond jewellery, both
lab-created and natural, however; price points and
volumes will be much lower. Consumer desire for
natural diamonds will shrink.
Most buyers will be perfectly comfortable buying
lab-created jewellery, with price points similar to
other accessories.
Many retailers would, as a result, end up selling
predominantly lower-priced lab-created jewellery.
They’d need to sell far higher volumes to achieve
the same gross margin dollars. This would pile the
pressure on retail jewellery stores and could spur a
fresh round of closures in the US.
In China and India, the retail impact would be less
severe, as they mainly sell gold jewellery.
Luxury brands would continue buying natural
diamonds and paying the prices.
Maintaining their image and the perception that
they use only the best materials would outweigh
any savings.
This loyalty to natural diamonds would account for
only a fraction of the total supply and only in very
specific areas.
In extreme cases, there could be a single flat price
for polished diamonds, regardless of whether
they’re natural or lab-created.
Certifying lab-created diamonds would become
irrelevant and the business of certifying larger
natural diamonds would also shrink.
With average prices at $US150 ($AU224) per carat
or less, it would be uneconomical to certify polished
lab-created diamonds.
The mid-stream may, at least superficially, appear
to be the most resilient. All diamonds, regardless
of origin need to be polished, however; that may not
be the case.
The cut-throat competition for lab-created product
may bring down labour costs, with a per-piece rate
above a certain size.
With low rough prices, speed and cost become
much more important than polishing yields.
Machines would be used to polish CVD stones and
the lower volume of natural diamonds would not be
able to sustain the existing number of polishers.
Mining would see the greatest disruption. Mines
with high operating costs or a product mix skewed
towards smaller diamonds would face closure,
leading to a decrease in natural carat production.
“By mid-2022, just as the retail increase in
the US plateaued, lab-created production
capacity improved as penetration in retail
stores started to slow.”
It would become impossible to finance new mines
or upgrade older mines, leading to the gradual
tapering in natural diamond production. Recycling
of diamonds from consumers could become the
‘largest mine’.
Laboratories too, would have to compete to ensure
the lowest cost of production or be priced out of the
market. Over time, creating diamonds would adopt
a cost-plus model for the pricing of rough.
This is an extreme ‘nightmare’ scenario. The reality
may not be quite so bad, however; it could well be
worse than our existing assumptions.
2023 projections
In 2022, we forecast tough times for the industry
and we believe the rest of 2023 will be difficult,
however; we predict some respite in Q4.
Assuming a mild US recession and a flat Chinese
market, we expect the global natural diamond
jewellery market to slow by five per cent.
To put this in perspective, the 2008 crash saw retail
demand decrease by 10 to 12 per cent globally. A
deep US recession, rather than a mild one, could
be catastrophic.
A five per cent decline in global natural diamond
jewellery translates into a decrease in polished
demand of 11 per cent - or about $US18.1 billion
($AU27 billion) in sales.
This also means that the rough market will be
down by nearly 20 per cent - to about $US13 billion
($AU19.4 billion) of rough sales.
The industry should batten down the hatches and
wait out the storm.
We believe mines currently have built-up stocks
of about $US1 billion ($AU1.5 billion). They would
need to decrease prices or reduce production to
work through those stocks.
Concluding remarks
The current fall in demand for diamonds is nothing
but a market cycle, albeit a severe one.
The industry shored up its balance sheet during the
past few years and should be able to weather the
downturn - unless there’s a severe recession.
For the lab-created industry, this is the first
downturn in its relatively short life.
It might be more difficult for companies that have
either invested heavily or are leveraged.
Margins will continue to come down and are likely
to remain low. Lab-created retailers in the US will
probably face their year of reckoning, as falling
prices erode top lines.
The real concern remains whether customers will
continue to perceive diamonds as a luxury.
That is why we believe that our third category of
hybrid diamond jewellery may halt, or even reverse
the erosion of faith in our product.
If that faith wavers, both the natural and labcreated
industries will suffer.
The day when consumers no longer aspire to own a
diamond, if it ever comes, would be the death of the
diamond dream.
CHAIM EVEN-ZOHAR is a retired consultant
to the diamond industry and the former editor
of the Israel Diamond Exchange’s Diamond
Intelligence Briefs. PRANAY NARVEKAR
is director of Pharos Beam Consulting, a
firm providing analysis and insights into
the supply, financing, and structure of the
diamond industry.
44 | July 2023

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TREND FEATURE
Opal
Opal jewellery has enjoyed a sharp rise in popularity
since the pandemic. SAMUEL ORD speaks with prominent
members of the industry in a search for the reasons why.
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L
ate last year I attended the first major international
trade show since the COVID pandemic concluded –
Jewellery and Gem World Singapore.
The atmosphere was electric. JGW Singapore welcomed just
shy of 1000 exhibitors from 30 countries with more than 11,000
buyers taking part.
As a stranger in a foreign land for the first time I did what came
naturally – sought out familiar faces. I scanned the directory for
Australian exhibitors and tracked them down for a chat.
After pinpointing four opal jewellery exhibitors of interest, I was
somewhat taken aback by what I discovered when I reached their
respective stands.
They were busy – and I mean really busy!
Crowds packed in tight around their stands eager to take in
the incredible array of colours displayed within these unique
gemstones.
From the most prized of all - vibrant red - to velvety purples,
hypnotising greens and everything in between, people peered
over shoulders and patiently waited for their turn to get up close
and personal with a sample.
The magnetic variety of colour capturing the attention of these
passerby is caused by a unique optical phenomenon known as
play-of-colour.
Australia’s opal is the cream of the crop, so it should come as no
surprise that the buyers in Singapore were eager to take a look.
When I was finally able to speak with these exhibitors face-to-face
they each confirmed that interest in Australian opals abroad was
reaching dizzying heights.
Hero Image: Cody Opals
July 2023 | 47

The Opal Sensation | GEMSTONE FEATURE
L to R: Ikecho Australia; Black Opal Direct; Firegem
Reflecting on my experience with Peter Sherman,
a third-generation wholesaler and exporter at
Sherman Opals, he says he isn’t surprised to
hear of the high demand for opals at an Asian
trade show.
“Australian opal is very big on the world
stage right now. After a long period of COVID
lockdowns, many people have quite rightfully
decided that Aussie opals are the most beautiful
natural gemstone,“ he tells Jeweller.
“I think many overseas consumers have learned
that Australian opal is not only beautiful, it’s rare
and comes in many colours and types.
“While being somewhat uniquely Australian,
it’s also only found in only three states – NSW,
Queensland and South Australia - which adds to
the interest.”
Boulder and matrix
Australia is well-known around the world for black
and white opal specimens; however, boulder and
matrix opals are particularly popular.
The classification of natural opal depends on the
relationship between the opal itself and the host
rock in which it forms. The more well-known black
and white opals are termed ‘natural type one’.
In contrast, boulder opal is ‘natural type two’, a
single piece of opal that remains attached to its
host rock.
Matrix opal is ‘natural type three’, in which
opal snakes through pores and grains or
occupies holes within the host rock.
An individual who understands the intricacies of
opals well is Carl Babic of Absolute Opals, who
today proudly continues a family tradition which
was started by his father Marijan Babic in the
1960s.
Babic says that whether it be mining, cutting,
dealing, or manufacturing, interest in the opal
industry is increasing.
“I certainly believe that Australian opals are
becoming more popular both overseas and within
Australia,” he says.
“The emergence of the Chinese market in
particular kickstarted the supply end back in 2012-
2015. The increase in demand raised prices and
made the ‘hardcore’ miners want to go back to
prospecting.”
"Australia's opal is the cream of the crop, so it
should come as no surprise that the buyers in
Singapore were eager to take a look."
Based in Lightning Ridge, George Christianos is
also a third-generation opal jeweller and trader.
He’s carrying on a family practice which began in
Coober Pedy in the 1950s.
He explains that high-quality opals have had a
vital revival internationally, beginning with demand
in mainland China from around 2010, which then
increased dramatically around 2015.
“The Chinese economy softened after that, but not
before consumers became hooked on black opals.
Since that time China has played an important
role internationally as a destination for Australian
opals,” Christianos details.
“In the meantime, the world has noticed the
Chinese taking so much high-quality product
off the market and there has been strengthened
demand from traditional markets in the US
and Europe.”
He added: “Truthfully, the main problem we face
is insufficient and sporadic supply of high-quality
opals. We can sell all that we get but we are just
not getting enough.”
Challenges to overcome
The cause of this supply constraint is multi-faceted
and complex.
There are a number of economic concerns,
including the spiralling cost of prospecting and
mining – namely fuel and machinery costs, as
well as labour – that have increasingly caused
headaches for those responsible for unearthing
these natural beauties.
In terms of labour, there’s also a major
demographic change at play. Traditional miners
are ageing out of the workforce, and inexperienced
young miners are entering the field and finding the
financial impositions of the industry a challenge.
“Go to any bank and ask for a mortgage to buy a
home. When they ask you what you do for work, tell
them you’re an opal miner. They’ll laugh at you,”
Christianos jokes.
The geology of the opal deposits makes them
impossible to detect and assay, and producing
workable calculations of an available deposit is
difficult and requires tremendous experience.
Peter Sherman
Sherman Opals
Carl Babic
Absolute Opals
George Christianos
Opals by Emmanuel
Maria Ulas
Artelia Jewellery
“Australian opal is very big
on the world stage right now.
After a long period of COVID
lockdowns, many people have
quite rightfully decided that
Aussie opals are the most
beautiful natural gemstone”
“I certainly believe that
Australian opals are becoming
more popular both overseas
and within Australia”
“The Chinese economy softened
after that, but not before consumers
became hooked on black opals.
Since that time China has played an
important role internationally as a
destination for Australian opals”
“As an Australian jeweller, we wanted
to make something quintessentially
Aussie, combining opals, sapphire
and pearls to show how colourful our
country uniquely is!”

Black Opal Direct
Then, there’s the fact that not all opals discovered are what the
market wants. Jewellers require gemstone grade-opals, with the
correct colouration scarce.
“The scarcity in supply is created by a wide range of factors, it’s not as
a result of any market manipulation,” he continues.
“This situation is unlikely to improve so people who understand the
circumstances are buying opal inventory up, anticipating that values
will keep escalating.
"The magnetic variety of colour capturing the
attention of these passerby is caused by a unique
optical phenomenon known as play-of-colour."
1/2 PG V
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“Meanwhile several high-profile jewellery brands have made special
pieces with opals as their centre stone and this has further spiked
interest.”
Fine jewellery flurry
Indeed, when it comes to jewellery a number of high-end designers
and manufacturers have ramped up their involvement with opals in
recent years.
Late last year Cartier’s creative director of high jewellery, Jacqueline
Karachi, detailed the transformation in attitude she recently underwent
concerning opal jewellery.
In an interview with the Australian Financial Review, Karachi says at
the start of her career she avoided working with opals as she dismissed
them as far too common.
Today, she’s embraced opals for the natural wonders that they are.
This is most evident in the release of a remarkable necklace, brooch
and earrings set called Apatura.
John Doyle
Boulder Opal Mines
Dale Price
Dale Price Opals
“One important thing to
understand is that opals are not
enhanced in any way to improve
their colours, they are just
naturally gorgeous”
“I think that people are looking for
something to keep their spirits high.
A nice piece of Australian opal does
exactly that, it’s something very
beautiful and quite frankly, magical.”
L LUXUR Y Y PEA RRL L && OO PPA AL L J JEWEL LER YY
WHOLESA L E L . E IKE . IKE CHO . C. CO OM M . A. AU
U

The Opal Sensation | GEMSTONE FEATURE
L to R: Opals by Christianos; Fortune Opal; Pink Kimberley
50
1/3 PAGE
VERTICAL
At Ikecho, new collections of rings, pendants, and
necklaces which combine uniquely Australian pearls
and opals have proven very popular.
Earlier this year, Artelia Jewellery creative director
Maria Ulas told Jeweller that opals were always in
high demand from her customers.
“We’re about to launch a collection of opal
jewellery with both white and black opals of all
shapes and sizes,” she said.
“As an Australian jeweller, we wanted to make
something quintessentially Aussie, combining opals,
sapphire and pearls to show how colourful our
country uniquely is!”
Don’t underestimate the impact of marketing
A significant driving force in the rising popularity of
Australian opals abroad has been the success of
television shows such as Outback Opal Hunters.
Following its launch in 2018, the show has now
reached a ninth season, with the series broadcast in
more than 100 countries, including the UK and the
US.
The premise is simple, following opal miners from
a variety of backgrounds in various locations of
Australia as they strive to uncover a hidden fortune.
“Trade shows and trade media always provide
an important ongoing platform of support,”
Babic says.
“Television shows like Outback Opal Hunters and
individual online promotions on websites such as
YouTube have massively contributed to education
and exposure of our national gemstone both
locally and globally.”
Babic points to the popularity of opal jewellery on
websites such as Etsy, Facebook, and eBay in recent
years as examples of the positive impact this kind of
promotion has had.
Videos of opal hunters in action on YouTube routinely
gather millions of views.
Sherman says that the timing of the pandemic
was also an important factor in the effectiveness
of this marketing.
“People had extra spare time in lockdown to
scroll through and read lots of articles about our
industry and that certainly contributed to their
current popularity,” he explains.
“It’s hard to look past the worldwide success of the
Outback Opal Hunters in particular. It’s a television
series that has led to huge love for Australian opal.”
Sherman also suggests that the changing priorities
of younger consumers is also an important factor.
“In this age of climate change discussion and
interest in the ethics of businesses, Australian opal is
an increasingly popular option for jewellery,” he says.
“People are now aware that Australian opal is
ethically mined and is one of the few natural
gemstones to not require extra treatment, which is a
big selling point.”
Something magical?
The formation of opal is a complex curiosity and
a matter that has inspired heated debate among
geologists.
There have been many theories produced over
the years. What is agreed upon is the necessity of
certain factors for the formation of opal – silica,
water, the appropriate chemical and geological
conditions, and time.
Many of the major opal fields of Australia have a
similar geological landscape, consisting of a thick
layer of sandstone atop a layer of clay.
The most generally accepted hypothesis is known
as the ‘deep weathering theory’, in which water
flows through the top sandstone layer, picking up
silica and continuing down through cracks and
crevices to the bottom clay layer.
There, the now silica-rich solution is deposited
and forms opal.
The ongoing debate around the origins of opal may
suggest that these natural beauties have another
intangible attraction which provokes the passion
seen by miners, jewellers, and consumers alike.
John Doyle, the owner of Boulder Opal Mines
Australia, says that it’s difficult to narrow down
the specific reason why opal jewellery is so
popular today.
50 | July 2023

“We are experiencing an increase in interest and sales from the
international market but when it comes to answering the question
of ‘why’, I’m not 100 per cent sure of the answer,” he explains.
“It could simply be because it’s a natural gemstone with a
huge variety of colours, and even with a single opal you can
get dramatic colour play.”
Most precious opals are found in sandstones and mudstones that
developed during the Cretaceous era, 60–144 million years ago.
To date, Australia is the only place on Earth where opalised
animal and plant fossils are found.
Small opalised dinosaurs and primitive mammalian remains were
found at Lightning Ridge, along with prehistoric shallow marine
shellfish and crustaceans.
The ancient nature of these gemstones only adds to the alluring
mystery of opal jewellery.
“One important thing to understand is that opals are not
enhanced in any way to improve their colours, they are just
naturally gorgeous,” Doyle continues.
“Maybe, the world is starting to wake up and appreciate our
Australian opal creating the strong demand we see today.”
With that said, one of the fundamental appeals of jewellery is
personal storytelling. Dale Price, owner of Dale Price Opals
in Coober Pedy, suggests that the biggest selling point is
emotion.
“I’ve found increased demand, both within Australia and
abroad,” he says.
“I think that people are looking for something to keep their
spirits high. A nice piece of Australian opal does exactly that, it’s
something very beautiful and quite frankly, magical.”
The story continues
Whether it’s their natural beauty, the unique and mysterious
origins of their creation, the emotion they provoke, or some
kind of intangible metaphysical appeal, the opal industry
remains somewhat divided on what’s driving the recent of
boom of international and home-grown demand.
Whatever the answer is, one thing is clear – opals and opal
jewellery are enjoying a moment in the sun.
Given the recent constraints on supply and the ensuing rise
in demand those market conditions tend to provoke, there’s
little reason to see why the love for opals won’t continue long
into the future.
1/2 PG V
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ON SHOW
Australian Opal Exhibition
Learn all about the latest offerings from
Australia’s leading opal and opal jewellery
suppliers ahead of the Australian Opal
Exhibition in Queensland (2-3 August).
Austgems
PO Box 3084
Tuggerah NSW 2250
0417 042 617
enquiries@austgems.com
facebook.com/austgems
In January next year, Austgems will celebrate 30 years
of proudly supplying Australian opal to the world.
The allure of opal is magic and nothing can describe
the thrill experience when finding, cutting, and
polishing opal from Lightning Ridge.
The company has a strong source of supply of raw
opal material and the workshop is always a hub of
activity at Austgems.
Cody Opal Australia
119 Swanston Street
Melbourne VIC 3000
03 9654 5533 | 0418 177 098
opal@codyopal.com
codyopal.com
Cody Opal is your trusted source for exquisite
Australian opals. With more than 50 years of
experience, the company has been the go-to destination
for the gemstone and jewellery trade worldwide.
As Australia's premier opal cutters, wholesalers, and
exporters, Cody Opal offers an unparalleled collection
of loose opals.
Discover the stunning selection of solid black, boulder,
light, and crystal opals sourced from all the opal mining
regions of Australia.
Fortune Opal
PO Box 1945
Sunnybank Hills QLD 4109
0429 075 903
stefan@fortuneopal.com
Fortune Opal Mining proudly mines and sources opal
directly from Lightning Ridge in New South Wales.
Backed by more than 90 years of collective industry
experience, the staff supplies these stunning
gemstones to the wholesale market worldwide with the
aim of providing the perfect opal for every customer.
52 | July 2023

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SOUTHPORT SHARKS
CNR OLSEN & MUSGRAVE AVENUE, SOUTHPORT QLD 4216
» WED 2 AUGUST 2023
» THU 3 AUGUST 2023
9.00AM - 5.00PM
9.00AM - 4.00PM
Gemcrest
PO Box 2525
Cairns QLD 4870
0411 18 28 18
info@gemcrest.com.au
Established in 1985, Gem Crest wholesales around
Australia a complete range of Australian opal jewellery
from solid, doublet and triplets all set in either 18-carat,
14-carat, 9-carat gold and sterling silver.
The family behind Gem Crest have been in the opal
industry since the late 1960s with experience in mining,
cutting, setting, wholesaling, retailing, and valuing.
Opal Auctions
Mermaid Waters QLD 2250
0418 151 227
opals@hotmail.com
opalauctions.com
Elevate your jewellery designs with opals and colour
gemstones! Opal Auctions offers direct access to
more than 250,000 opals and gemstones.
Verified opal miners and sellers come together on
the world's leading opal industry website for all of
your needs.
Rough opals, opal specimens and a wide range of
gemstones and jewellery from all corners of the
world - all in one place!
Opals by Emmanuel Christianos
Lightning Ridge
NSW 2834
0467 553 886
opals@me.com
christianos.com
Opals by Emmanuel Christianos carries on a business
which began in the 1950s in Coober Pedy.
The company have since moved to Lightning Ridge
where they drill, mine consolidate (wholesale) and
export fine Australian Opals including incredible black
and crystal opals.
The company is run by George Emmanuel Christianos
and his wife Liya as a third-generation business.
July 2023 | 53

Australian Opal Exhibition | EXHIBITORS' SHOWCASE
Opal by Mario
Lightning Ridge NSW 2834
0417 678 283
opalsaustralia@gmail.com
opalauctions.com/stores/opalbymario
"Chasing colour at the cutting wheel drives Opal By Mario’s
director, Mario Ikasovic, as an expert in Australian opal for
more than 40 years.
The company attends international jewellery trade shows
with an extensive inventory of solid black, boulder and
crystal opal, sourced both from miners and dealers.
A former resident of Lightning Ridge and Coober Pedy, the
company is now based in Sydney where cutting is completed
in the workshop.
Sherman Opals
2/67 Castlereagh Street
Sydney NSW 2000
P: 02 9233 6355
M: 0400 899 900
opals@shermanopals.com.au
shermanopals.com.au
Since the beginning of time, people have marvelled at the
dazzling beauty of opals.
Sherman Opals, a family-owned Australian opal company,
has been supplying opal in all forms - black, boulder, white,
crystal - as well as jewellery in both gold and silver to local
and international markets for more than 100 years.
Expert service is a family tradition.
True Blue Opals
PO Box 1650
Surfers Paradise Qld 4217
P: 07 5504 5596
M: 0419 785 454
salopals@aol.com
trueblueopals.com
True Blue Opals is proud to supply Australian opals sourced
from mines and miners directly with inventory in black,
boulder, Yowah, Koroit, carvings and beads for over 30 years.
Rough and pre-finished rubs and loose gemstones are
also available, as well as collector items which are the
company's speciality.
54 | July 2023

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EVENT FEATURE
On the Horizon
HONG KONG
HOMECOMING
Jewellery industry welcomes trade show return
After a four-year hiatus, the action
and excitement of Jewellery and Gem
Asia Hong Kong (JGA) has made a
triumphant return.
The focus was firmly fixed on ‘rebounding and
recovering’ amid a turbulent economy at the
four-day affair, which was hosted at the Hong Kong
Convention and Exhibition Centre (HKCEC) and
concluded on 25 June.
More than 1,680 exhibitors from 33 different
countries took part, while the total number of
visitors is still being determined.
It had been ‘a long time between drinks’ for event
organisers Informa Markets, who last hosted the
JGA show in 2019, prior to the COVID pandemic.
Senior vice president David Bondi said that after
such a long wait, seeing the event successfully
underway was an experience that stirred many
emotions.
“It’s an amazing feeling to see so many people
members of the industry back together in Hong
Kong trading under the one roof,” he said.
“It feels like something of a rebirth for the industry,
and perhaps the beginning of a promising new era.”
At an industry leaders meet-and-greet,
Informa Markets’ director of jewellery fairs,
Celine Lau, echoed this sentiment and
said that she believes that for the jewellery
industry, the best is yet to come.
“We are still feeling ‘fatigue’ from the
pandemic; however, we should all be grateful
to be gathered together as a single community
once again,” she said.
“It’s important to take the time to reflect on the
challenges of the past three years, and also to
rejoice over the prospects of the promising future
which lies ahead.”
With concern about the health of the global
economy widespread, many exhibitors reported
that buyers were consistently cautious when it
came to finalising orders.
Discussions about the impact of cost-of-living
pressures and exchange rates were also
commonplace.
With that said, many exhibitors still proudly
reported that their experience had been
fruitful and chairman of Hong Kong’s Jewellery
and Jade Manufacturers Association, Cheung
King Yau, said that events such as JGA were
vital for a rebounding industry.
“The focus for many indeed remains on recovery,
as this is not an easy market to navigate for many
industry figures. Globally, it’s a complex market
and the jewellery industry is not the only sector
facing challenges,” he said.
“This doesn’t mean we don’t have many
opportunities for expansion, and events such as this
wonderful fair are the ideal place to do just that.”
Dazzling diamonds
As is always the case, the diamond hall was
dominated by impressive visual displays as stands
strived to make their mark and leave an impression
on a competitive fair floor.
The experiences reported by diamond exhibitors
were somewhat uniform – cautious buyers eager
for as much information as they could gather.
“People are certainly cautious, which given the talk
about the economy at the moment, I think that’s
something everyone was prepared for,” Divyang
Kakadiya of SKSM Diamonds told Jeweller.
“We are getting a lot of interest in our diamonds
from buyers which is good to see – most people are
eager to take a look at what we’re offering and then
to go away and consider it, which again, is exactly
what we expected.”
One exhibitor which consistently captured the
attention of attendees was Kunming Diamonds,
with its radiant display of fancy colour diamonds
a clear favourite.
Marketing director Shubham Maheshwari said
that the market for fancy colour diamonds
operates in a dramatically different fashion to
that of white diamonds.
“This Fair has unfolded perfectly to our
expectations. People are very curious and keen
to learn and gather as much information at the
moment, particularly when it comes to fancy
colour diamonds,” he explained.
“In many ways, patience is vital for our
customers as the market is so unique. Even
factors such as currency rates are crucial.
Timing can be everything.”
Maheshwari said that yellow fancy colour
diamonds – the most common variety – had
proven particularly popular in recent months, while
pinkdiamonds are of course still number one.
“For us, events such as the Hong Kong fair are
about establishing and maintaining the connections
we have with customers and clients,” he said.
“There’s no alternative to the insight you gain
from a face-to-face encounter, and these kinds of
opportunities are invaluable.”
56 | July 2023

A WALK THROUGH
THE HALLS
In a neighbouring stand, visitors discovered
Saboo Fine Jewels – a business which traces its
origins to India in the 1930s. The family behind
the business credits its past successes to
meticulous attention to detail and the desire to
create ‘perfection’ in jewellery.
When it comes to trends, executive business
manager Pranay Saboo said that colour seems to
very much be in vogue.
“Our diamond jewellery in particular has recieved
a lot of positive feedback from buyers, so that’s
pleasing for us,” he said.
“But more than anything colour gemstones have
been the big talking point. Our jewellery featuring
emeralds and rubies, in particular, is very popular.”
All the colours of the rainbow
Colour gemstone jewellery has been popular
with consumers this year and in Hong Kong,
buyers consistently voiced their approval for the
wide variety on offer.
Jewellery featuring sapphires, emeralds, and rubies
to name but a few made the colour gemstone
section come to life, and among the floor were
several Australian companies offering opal jewellery
– an increasingly popular niche in Asian markets.
Based in Lightning Ridge (NSW), George
Christianos is a third-generation opal jeweller and
trader and he said the trip to Hong Kong was always
worthwhile.
“This is traditionally the slowest fair out of the three
major Hong Kong shows each year, but it’s always a
valuable experience,” he said.
“We’ve found new customers, arranged future
sales and cemented a few present partnerships,
so it’s been well worth the journey.”
Christianos said the hunger for opal jewellery
remains strong in China in particular, and that
supply, rather than demand, continues to be the
talking point.
“Everyone we are dealing with is experiencing a
little bit of sticker shock, but we have no choice
but to tell them that it’s about supply and not
demand,” he said.
“The opal mining industry is undergoing a period
of change, as older members of the workforce
are retiring and aren’t being replaced at a great
rate. We need to remind our buyers that next year,
it’s only going to be higher again – so you might
as well get in now!”
Precious pearls
On the fifth floor of the exhibition centre, the pearl
section was a hive of activity as buyers scrambled
to get the best deal possible on seemingly
endless strands of aquatic treasures.
Sze Ho Yin, president of the Hong Kong Pearl
Association, said that pearl jewellery continues
to increase in popularity in the Chinese market,
particularly with young consumers – both men
and women.
Among the exhibitors was a familiar face – Pinella
Autore, founder of Australia Pearls. She said that
one particular variety of pearls was in high demand.
“It’s been a very productive fair from our
perspective,” she said.
“The buyers are going crazy for Akoya pearls
at the moment. There is a massive demand for
Japanese pearls in Asia as there is a significant
shortage of supply.”
The reasons for the shortage of Akoya pearls
are varied. Similar to the opal industry, the
Japanese pearl trade is undergoing a turnover
in production and older farmers are not being
replaced at the same rate as younger farmers
are entering the workforce.
Others have suggested that a mysterious
virus causing the death of oysters is hindering
production, while the impact of climate change
is also an important talking point.
Where to from here?
In what was surely a welcome relief to the
organisers, the June show was in many ways
a ‘typical’ fair – beginning with a frantic first
half of the opening day, before traded slowed
to a steadier rhythm.
While lulls later in the fair - particularly in the
natural and lab-created diamond halls - raised
some eyebrows, that concern was alleviated by
the consistent excitement in the colour gemstone
and pearls sections.
As Victor Yiu, vice chairman of the Hong Kong
Diamond Federation said: “Rebounding from the
pandemic remains the key focus for our industry.”
“In light of everything this industry has been
through, it’s clear to me that Hong Kong is still the
ideal place to do business for so many reasons.”
With the return of the June show complete,
organisers at Informa Markets will now turn their
attention to Jewellery and Gem World Hong Kong
in September.
Celebrating its 40th anniversary, the show will
open at Hong Kong’s AsiaWorld-Expo from 18-22
September, while the trading will continue at
HKCEC from 20-24 September.
* Samuel Ord attended Jewellery and Gem Asia
Asia Hong Kong courtesy of the event organiser.
July 2023 | 57

BUSINESS
Strategy
Do you stick to the rules?
How do you handle an employee who oversteps the mark? GRAHAM JONES
examines the science behind rule breaking and discusses committing ‘own goals’ in business.
"Rules were made to be broken" – that's
what my Dad told me when I was a child
and I caught him doing something wrong.
He would also tell me, "When I'm right,
I'm right, but when I am wrong, I am right
because I am your Dad." There was one set
of rules for my father and one set of rules for
me as his son.
In my varied career, I have worked with many
people who have had their own peculiar
views of the rules. One individual was
often keen to bend the rules on the basis
of a personal philosophy, which he would
summarise by explaining "you only discover
new ways of doing things when you break
the rules”.
I am sure you have also worked with people
who have their own way of dealing with ‘the
rules’ including individuals who completely
ignored them. Bending and breaking the
rules is not the sole domain of politicians.
Indeed, businesspeople in varying sectors
have gone to prison for a variety of reasons,
such as fixing interbank interest rates or
fiddling with the emissions of the cars they
manufacture. The one thing these criminals
all had in common was a blatant disregard
for the rules!
Research
Researchers on business ethics point out
that the incidence of rule-breaking and
being prepared to bend the rules is rising.
More people are willing to break the rules
nowadays than ever before.
One argument, of course, is that if the
people in power break the rules, then why
shouldn't we?
If a company's CEO bends the rules on
claiming expenses, what's stopping more
junior staff from copying the behaviour? It's
common to think that we break the rules
just because other people are doing the
same, however, it isn't true.
The psychology of morals and ethical
behaviour has been well researched and it
shows that on average, we try to stick on the
right path. What appears to be happening is
that it is easier to break the rules these days
than it was in the past.
Clues to this came from interesting research
conducted 10 years ago at Duquesne
University in Pittsburgh. One study
demonstrated that computers were enabling
us to break more rules. At the same time,
using computers also appeared to interfere
with our morals.
That's how you
can break the
rules and chase
innovation
and creativity,
by focusing on
what breaking
the rules would
do for others.
In other words, computers make it more
likely that we will break the rules at the
same time as making it less likely we
perceive the rule-breaking as a problem.
That’s a powerful social problem to consider
in this increasingly digital age!
Justification
Further research suggests that we appear
to justify rule-breaking on the basis that it is
legitimate for our purposes.
US psychologist Tom Tyler, from Yale
University is widely regarded as a leading
authority on why we obey or break the rules.
His research has shown that we do not fear
being caught or punished.
Indeed, the concern over the perceived risk
of getting found out or caught for breaking
the rules appears in only around 5 per cent
of rule-breakers. What the Yale research
shows is that people obey the rule when
they respect the authority of the people or
organisation setting those rules.
In other words, if you need staff in your
business to stick to the rules, it isn't the
rules or the punishment for breaking them
that matters. The crucial factor is ensuring
that the individual setting the rules is
respected. Then, they are much less likely to
58 | July 2023

want to break the rules.
When you find that employees are happy
to break the rules or are using technology
to help them cover up their rule-breaking,
you ought to ask yourself, "why don't these
people respect the rule-maker?"
It is the perceived legitimacy of the business
or individual that sets the rules, which
makes it likely that people don't break them.
The words ‘respect for the law’ do, indeed,
sum it all up.
Conundrum
In business, however, we have a problem.
How can you innovate, for example,
unless you break some rules? How can
your business be creative without ignoring
the rules?
A clue to what's important here comes
from one study of hospitality workers,
which showed four main reasons for rulebreaking.
Two reasons were ‘pro-social’. In
other words, we appear to be prepared to
break the rules we respect if, in doing so, it
can help other people.
That's how you can break the rules
and chase innovation and creativity, by
focusing on what breaking the rules
would do for others.
Do you score own goals?
The FIFA World Cup contest began amid
controversy dating back 12 years ago
when Qatar was awarded the right to
host the games.
The footballing authority FIFA may have
thought that Qatar's investment in the game
might increase the popularity of football
in the Middle East. The millions of dollars
coming their way, which they could use to
improve the game worldwide, may have also
been a lure.
But the decision to host the contest in
Qatar was a clear ‘own goal’ - much like
the decision to ban alcohol when your main
sponsor is a brewer.
Recently in the UK, following the statement
from the new Chancellor Jeremy Hunt, the
respected independent Institute for Fiscal
Studies (IFS) said that the Government had
to deal with its own "economic own goals".
Wherever you look, own goals are
commonplace. Whether it is politicians,
organisations or business leaders, there are
plenty of examples of people thinking they
are doing the right thing, only to discover
they are having the opposite impact to what
was expected.
Beneath the surface
The underlying issue behind businessrelated
own goals is the avoidance of
risk analysis.
When we believe we are on the right track,
we are convinced we are right. Why would
we assess the risk when we ‘know’ there is
not much risk in what we are doing?
Except we do not know there is little risk!
We are making an unconscious assumption.
I see this in businesses that have decided
to go a particular route with office software,
for example. They might have chosen to
use the Microsoft 365 ecosystem rather
than the Google Workspace option. Often,
the reasoning behind that is that Microsoft
is more ‘corporate’ and there is often an
assumption that, as a result, it is more
secure and reliable.
However, for some organisations going
with one office suite rather than the other
can be an ‘own goal’. The office system you
choose has an impact on productivity, staff
motivation and on your customers.
Just look at all those comparisons of the
available office suites, and you will see that
the decision as to which is best is always ‘it
THE THREE
REASONS
FOR RULE-
BREAKING
Habitual
behaviour
When people are
used to taking a
certain type of
action in a given
situation but
are placed in a
similar situation
with different
rules, rules are
broken out of
habit.
To save time
or resources
People knowingly
break rules
when it becomes
inconvenient
to stay on the
‘straight and
narrow.'
Solidifies
individuality
Repetitive
tasks tend to
place certain
types of people
in situations
they find
uncomfortable.
This leads to
lashing out and
insubordinate
behaviour.
depends’. I have seen organisations make
the wrong decision based on assumptions
or costs and find they are not as productive
as they wanted.
Getting out of that is difficult once you
are wedded to a system, so the own goal
is persistent.
Assessing the risks of anything for a
business doesn't just mean considering
the cost impact, what other people say, or
what you think or assume. For instance,
although many companies decide between
the Microsoft and Google ecosystems, there
are plenty of options which may avoid an
own goal.
Learn from the errors of others
When you look at the World Cup, there has
been a lack of risk analysis. There is a risk
to the tarnished reputation of FIFA, but there
is also a risk to Qatar as the world gets an
increasingly negative view of the country.
The lure of cash and being in the global
spotlight was too much; it would seem,
leading to a lack of objective risk analysis.
We all make own goals, some worse than
others, but when we do, it should be a
reminder that we did not adequately analyse
the risks of our decisions.
And sometimes there is a greater risk in
doing something than not doing it – which
can be a difficult lesson to learn.
It’s time to review your business and
identify where you may be scoring ‘own
goals’. When it comes to rectifying any
issues that you observe, don’t be afraid
to break a few rules – so long as you
measure your approach.
GRAHAM JONES studies online
behaviour and consumer psychology
to help businesses improve website
success. Visit: grahamjones.co.uk
July 2023 | 59

BUSINESS
Selling
Simple ways to improve your selling mindset
when you're swimming against the tide
When faced with the challenge of running a jewellery store, it’s easy to fall into a rut.
RICH KIZER and GEORGANNE BENDER explore simple fixes for struggling salespeople.
It’s easy to get blindsided by challenges in
your business, especially those that you
never thought you would have to handle.
What you do doesn’t have to be rocket
science; it just needs to take you out of
your routine.
When cash flow isn’t consistent, sales go
into hibernation, advertising stop working,
and customers are bored, what’s a
jewellery retailer to do?
Keep a notebook so you can reflect on any
new things you try. The 30-day challenge
has reaped benefits for us both personally
and business-wise.
Consider employing the following
strategies to improve your focus and
build confidence when you’re feeling
overwhelmed with your workload or feel
that your business is ‘treading water’.
Set new standards
Successful retailers are forward-thinking
planners who set written standards of
operation for every area of their business.
These standards help everyone do
their jobs better and help owners
and managers easily measure store
performance at every level.
Your business needs written standards
and expectations for customer service,
training, associate appearance, and use
of personal social media. Brainstorm any
additional standards that make sense for
your store. Expectations should always be
specific, attainable, and measurable.
Remember, what gets measured
gets done!
Escape your comfort zone
The ‘comfort zone’ is lethal to every
business. The moment you hear your
associates start to say things have ‘always
been done a certain way’ you’re in trouble.
Retail is a constantly changing
environment and your business can’t afford
to stand still. It’s common for successful
retailers to repeat the actions of yesterday
which proved successful, however; that
can lead to problems.
Exploring new areas is a great way to
promote internal improvement. Attend a
trade show that sounds interesting. Join
a Facebook group to swap stories with
other retailers.
Consider hiring a consultant or personal
assistant to make those changes you
have talked about forever but never
seem to get done.
Let it go
Are you one of those business owners
who proudly tells others that you are a
perfectionist? Do you constantly compare
yourself to others – or your store to the
competition? Do you focus on your flaws
instead of your strengths? Do you think that
there is a way for everyone who works for
you to do it better? It’s time to stop!
We know you’re willing to do whatever
it takes for your store to succeed, but
sometimes you need to give yourself a
break. You run a retail store – that’s hard.
There’s no right way to do anything. Many
people open new stores every year and
fail. If you’re still operating, you’re doing
something right – so don’t torture yourself
with needless comparisons.
Do something new every day
Marks and Spencer commissioned a
study which found 96 per cent of people
described themselves as living on
‘autopilot’ - subconscious decision making.
Ruts and routines can squash your
creativity and to combat this in our lives we
decided to take the 30-day ‘do something
new each day’ challenge. We highly
recommend it for jewellery store owners.
Simple things can make a big difference.
Business is
important,
but it’s not
everything. No
one on their
deathbed ever
said, ‘I wish I
had spent more
time at work.
Make a difference
Once upon a time retailers only had
to compete for the business of their
customers. Today, they need to compete
for their hearts too. There are many
reasons why people choose to shop at one
store over another and a major factor in
this decision-making process is the store’s
charitable impact.
In 2023 and beyond, supporting a cause
will be mandatory! Sometimes you
choose a cause and sometimes the
cause chooses you. You may already be
working with a charity, or perhaps you’re
open to new causes. If you’re not sure
where to start, ask your customers about
which charities operate in your area and
what they think of them.
Get started now
“Don’t wait too long. Your kids will only
be little once; your spouse deserves
your attention, and your dog needs to be
walked. Business is important, but it’s
not everything. No one on their deathbed
ever said, ‘I wish I had spent more time
at work.’”
These words were written long ago and
they hang on a sign in our office to remind
us of what’s important. Don’t wait for
the right time to make changes to your
approach to business because something
will always get in your way.
If you’re unsure where to start, try one of
these ideas at a time – the most important
thing is you start today!
RICH KIZER AND GEORGANNE
BENDER are retail strategists, authors
and consultants. Visit:
kizerandbender.com
60 | July 2023

BUSINESS
Management
Networking for small business owners
is crucial to relationship building
Successful businesses are constructed off the back of fruitful relationships.
DAVID BROWN discusses the importance of networking for small business owners.
Whenever I mention networking, I often
see the person I’m talking to squirm
uncomfortably.
Focus on building: Networking is not just
about selling or promoting your business,
it's about constructing relationships.
Building relationships with other business
owners, customers, and industry
professionals can help you improve your
business, expand your customer base and
gain valuable insights and advice.
Unfortunately, it’s not something that
everyone feels comfortable with doing!
In today's fast-paced and competitive
business world, it’s more important than
ever to build a strong network of contacts
and maintain these relationships over time
So, what makes it such a critical part of
your small business strategy?
Increased visibility and exposure:
Networking provides an opportunity for
you to increase the visibility and exposure
of your business to potential customers,
partners, and investors.
By actively participating in local business
events, online communities, and industry
groups, you can get your business name
and brand in front of a wider audience and
improve your opportunity to secure sales.
Access to new customers: Building
relationships with other business
owners can lead to new customers and
sales opportunities.
For example, you may meet a business
owner who is looking for a product or
service that you offer, or they may refer you
to someone in their network who needs
your services.
Customers can come both directly and
indirectly from the relationships that you
build with others in the industry.
Knowledge and insights: Networking with
other business owners can also provide
valuable insights and advice.
You can learn about the latest trends and
best practices in your industry and gain
new ideas for improving your business.
Many of the industry buying groups and
meetings are as much about what you may
gain from a coffee or drink with colleagues
as official partnerships you get directly
from the event itself.
Building a support network: The
past three years have highlighted the
importance of a strong support network.
Networking can help you earn the
respect of other business owners and
professionals who can provide support and
advice when you need it.
This can be especially valuable when
you're facing a challenging business issue
or decision. As the old saying goes ‘a
problem shared is a problem halved!’
Successful networking
Be yourself: It’s important to be yourself
and build relationships based on trust
and authenticity.
People are more likely to do business with
someone they trust, so be genuine and
show an authentic interest in others. Don’t
allow being an introvert to restrict you.
Be prepared: If it works for the scouts,
it can work for you! Before attending a
networking event, research the attendees
and the purpose of the event.
Come prepared with a clear idea of what
you want to achieve. Have business
cards and a clear, concise ‘elevator
pitch’ to quickly introduce yourself and
your business.
People are
more likely to
do business
with someone
they trust, so
be genuine
and show
an authentic
interest in
others. Don’t
allow being
an introvert to
restrict you
Take the time to get to know the people
you meet and follow up with them after the
event to continue the conversation.
Offer value: When networking, it's
important to offer value to others. This
can include sharing your knowledge and
expertise, making introductions to others
in your network, and offering to help in any
way you can.
By offering value to others, you will
establish yourself as a valuable member of
the community and increase your chances
of success. For more help with this, an
excellent book is The Go-Giver by Bob Burg
and John David Mann.
Attend regular events: To be effective,
networking should be a regular part of
your business strategy.
Attend regular events and join industry
groups and online communities to meet
new people and establish relationships
over time.
Follow through: After attending a
networking event, follow up with the
people you met.
This could include sending a personalised
email or LinkedIn message, or scheduling
a coffee or lunch meeting to continue the
conversation. Following up will help you
build deeper relationships and increase
your chances of success.
Networking is a critical component of
success for small business owners.
By following these tips and making
networking a regular part of your business
strategy, you can build a strong network
of contacts and push closer to success in
your business endeavours.
DAVID BROWN is co-founder
and business mentor with Retail
Edge Consultants. Learn more:
retailedgeconsultants.com
July 2023 | 61

BUSINESS
Marketing & PR
Your business desperately needs you to get proactive!
Business is dominated by those who are forward-thinking.
MICHAEL HINSHAW explores the concept of proactive customer engagement.
When it’s done correctly, proactive
engagement makes it easy for
prospects to engage with your business
and improves customer experience.
You might be wondering exactly what I
mean when I discuss ‘proactive customer
engagement.’ The key to the concept
is encouraging business owners to be
proactive, rather than reactive.
When considering the concept of proactive
customer engagement, it’s important to
understand three key factors.
• Value: This is measured by the impact
on your business - whether it be increased
revenue, an improved reputation or simply
more units sold.
• Advocacy: How often do your customers
recommend your products and services
to others within the market? This is an
important concept to measure.
• Retention: It’s valuable to understand
the duration of the ‘relationship’ your
customers experience with your business
and products.
From an organisational perspective, it’s
vital you communicate with customers
with the appropriate information at
the right time. It’s about more than just
anticipating customer needs, increasing
the relevance of your business, and
boosting engagement.
I’m sure you’ll agree that in the modern
retail environment, customers want
to gain access to whatever they want
and need from your business on their
terms: they want it when they want it
and how they want it. If you examine the
changes in strategy by major jewellery
retailers in recent years, you’ll see
that many businesses are adopting and
developing strategies to enable proactive
interactions with their customers.
For example, many businesses focused
on making it easier for customers to get
the answers to questions immediately.
In an online environment, this comes down
to eliminating the need to go searching
on other websites for answers – reducing
the risk that the customer might end up
choosing to shop with a competitor.
If your business is interested in boosting
engagement with your customers,
consider the following six strategies. This
list has been created by examining the
priorities of many leading retailers.
• Leverage the data: Every business has
rich data concerning their customers –
yet so many fail to make the most of the
opportunities it presents.
The challenge is to use this knowledge to
better anticipate customer needs based on
patterns, history, and preferences.
• Make it easy for customers to connect:
Facilitate connections across channels
and interactions, including offline, online,
direct, and indirect.
Your social media should all be connected,
and it should be simple to navigate from
one to the other. On the topic of social
media, don’t overdo it!
We see many businesses today attempt
to join every ‘flavour of the month’
platform. It’s difficult to stay on top of
more than a handful of platforms – use
only the most relevant services to avoid
The challenge
is to use this
knowledge
to better
anticipate
customer
needs based
on patterns,
history, and
preferences.
any wasted effort.
• Enable intuitive self-serve options:
Ensure these options are simple to find
and use, making it easy to get answers and
resolve issues.
This doesn’t mean self-service replaces
other channels, instead, it should provide
additional ways to get the customers what
they need.
• Ensure swift resolution to any issues: A
‘fast’ resolution should be fast as defined
by your customer, not by the limitations of
your processes within the business.
How much time does it really take to call a
customer back? If a customer reaches out
to you via email and you plan to respond,
why wait and risk irritating the customer?
You’re going to respond anyway, so why
not try to do it in a timely manner? Treating
your customers to a first-class experience
doesn’t have to be a tremendous expense.
Show them that you care
In aggregate, completing the five tasks
above will go a long way toward showing
customers you care. But don’t stop
there! The bottom line is that proactive
customer engagement isn't a one-time
event. It's an important part of a wellrounded
customer experience. It’s about
looking for better ways to engage and
anticipate the needs of your customers.
In other words, proactive customer
engagement is about the relationship
between your business and the customer.
It’s about delivering value at every
interaction, whether it’s with the sales staff
or when browsing your website.
The focus is on helping you build a highly
loyal and more valuable customer base,
creating unassailable relationships at
every stage of the customer journey — and
driving business expansion as a result.
MICHAEL HINSHAW is president of
McorpCX, which focuses on customer
experience management. Learn more:
mcorpcx.com
62 | July 2023

BUSINESS
Logged On
How do you respond to a negative review?
Customers are increasingly relying on online reviews. BRIDGET BROWN says it’s crucial
business owners understand how to handle negative feedback.
Reviews matter – it’s a topic that’s been
written about and studied extensively in
recent years.
A study by the Spiegel Research Institute
demonstrated that 95 per cent of customers
read online reviews to make ‘informed’
purchasing decisions.
Positive reviews can triple the chance
someone is going to purchase a product
from your jewellery store.
customer was happy to remove the review
once the misunderstanding was resolved,
which is always the end goal in managing
a negative review.
Remember that you aren’t getting in contact
with the disgruntled customer to ‘defend’
your business or to win a fight – your aim is
for them to remove the review so that your
online reputation is salvaged.
Know your rights
I’m aware of another study that suggests 84
per cent of customers trust online reviews
as much as personal recommendations,
which sounds unusual until you consider
that it isn’t the evolved ‘rational’ part of our
brain which determines how trustworthy
reviews are - it’s the shortcut-loving
‘emotional’ brain.
One negative review can seriously damage
a business. A series of negative reviews
can end a business – it’s extremely difficult
to overcome negative word-of-mouth, and
when it’s on full display for the world to see,
that’s a recipe for disaster.
Stop the bleeding
Dissatisfied customers tend to tell between
nine and 15 people about their negative
experience and that’s exactly how this
negative word-of-mouth spreads.
If one of these disgruntled customers
appears on your online business profile,
usually managed by Google, and leaves a
one-star review it’s important you quickly
attempt to rectify the situation.
• Reply immediately: Read the review
closely and formulate a professional,
measured reply as quickly as possible.
A 2022 study from ReviewTrackers
demonstrated that 53 per cent of people
who leave a negative review expect to
hear back from the business in one to
seven days.
No matter the circumstances reply letting
them know you’re sorry to hear they had a
poor experience. The next step is to inform
them that you’ll follow up ‘offline’ with a
phone call. This part is key!
Referencing one-to-one communication
acts as a signal to readers that there is
more to the story than they’re seeing and
encourages them to keep an open mind
about your business.
• Don’t argue with the review: A wise
man once said, “never argue with a fool,
onlookers may not be able to tell the
difference.”
The audience reading your reviews is
likely to lack context and will struggle
to assess the nuances of the situation.
Unless the reviewer’s point is totally
egregious, for example making serious
unfounded accusations, you stand to gain
very little and have much more to lose by
arguing with a ‘keyboard warrior.’
The chances of you changing the mind of
a customer disgruntled enough to leave a
negative review with a simple reply is very
low. For those uninvolved who read the
exchange as an argument, you run the risk
of appearing confrontational – which is
not the experience customers want when
dealing with a jewellery store!
• Follow up: As soon as possible make
contact with the customer who left a
negative review and see what can be done
to rectify the situation.
I recently worked with a business that
experienced a detrimental one-star
review after dedicating many weeks to
improving its business rating on Google.
The owner of the business got in
contact with the reviewer and quickly
discovered the negative experience
stemmed from a misunderstanding. The
A wise man
once said,
'never argue
with a fool,
onlookers
may not be
able to tell the
difference.'
I was recently able to assist another
business in removing several negative
reviews simply by examining Google’s
terms of service.
Google will remove reviews that violate the
TOS and other websites which host business
reviews will do the same.
If someone leaves you a review that is
fraudulent or false flag it as inappropriate.
If flagging doesn’t work, you can escalate
your issue.
Remember however that it isn’t ‘illegal’ to
leave a mean-spirited review and it’s not
‘defamation’ to simply express a negative
opinion. Business owners who pour their
heart and soul into a jewelley store often
react emotionally to negative reviews, it’s
human nature. However, you must remain
rational and not overreact, no matter how
hurt your feelings may be.
There’s another important defense against
negative reviews – an overwhelming number
of positive reviews! Disgruntled customers
are a part of business, especially for
jewellery retailers.
Sometimes the best defence is a good
offense, so ensure you’re actively collecting
positive reviews wherever possible so that
on the day that a negative review comes in,
it’s dwarfed in comparison by the positive
comments left behind by other customers.
BRIDGET BROWN is founder of Create
That Copy & Marketing, a Canadian
marketing firm focused on generating
leads and increasing sales and revenue
for small businesses.
Visit: createthatcopy.com
July 2023 | 63

My Bench
Michael Purdy
Soklich & Co. Jewellers Perth, WA
• YEARS IN TRADE 21 • LOVE JEWELLERY BECAUSE It’s fun and rewarding to design and create something and then see it through to fruition.
SIGNATURE PIECE
A cocktail ring like no other in 18-carat white/rose gold.
Flora radiates elegance and style. A single heart-cut
white diamond is a scintillating central feature at one
carat. Split-style shoulders sweep up to an oval flat cutout
bed with curved beaded edges, which are set with
round brilliant cut white diamonds, 0.56 carats. The final
flourish is provided by 16 round pink diamonds, from
the Argyle Diamond Mine at 0.146 carats. Feel felicitous
with Flora.
4FAVOURITE GEMSTONE Merelani garnet.
4FAVOURITE METAL 18-carat yellow gold.
4FAVOURITE TOOL Microscope.
4BEST NEW TOOL DISCOVERY Pneumatic graver.
4BEST PART OF THE JOB Setting.
4WORST PART OF THE JOB Rhodium plating.
4BEST TIP FROM A JEWELLER You’re only as good
as your last job. It's important to take pride in the
work that you complete and continue to improve
your skills wherever possible.
4BEST TIP TO A JEWELLER Buy a microscope.
If you're working as a bench jeweller without a
microscope, you don't know what you're missing.
64 | July 2023

OPINION
Soapbox
The dream of an inspired and informed
consumer for the diamond industry
The international diamond industry finds itself at an important crossroads. DAVID KELLIE says
that education is the key to fostering productive long-term relationships with consumers.
A tremendous amount of mystery and
intrigue surrounds the modern diamond
industry and each day, jewellery
retailers field a range of questions from
confused consumers.
Is there a difference between a lab-created
diamond and a natural diamond, and can
that difference be detected?
What is the natural diamond industry doing
to reduce its carbon footprint and protect
biodiversity? Do natural diamonds benefit
the countries where they come from?
What are the working conditions like in
the diamond industry? Are lab-created
diamonds a ‘sustainable’ alternative?
These are just a handful of the questions
that most of us hear regularly in the
diamond industry.
Despite the transformation and reform that
has occurred in the diamond industry over
recent decades, many myths surrounding
the industry’s operations, its standards, and
its ‘players’ continue to linger.
Unfortunately, these misconceptions erode
trust, and, in the long run, can be harmful,
not only to the diamond industry but
especially to those who most depend on the
positive impact of natural diamonds: the
communities from where they originate.
Through the influence of the internet and
social media, today’s consumers are more
informed than ever before. They wish to
align their values with those of the products
they purchase. It is therefore vital for us all
to support these consumers by providing
information transparently.
Research and education
While the industry typically seeks to
compare their environmental impact,
our analysis shows it is not possible to
make a simplistic general comparison.
Within each category there is a wide range
of production processes, geographical
locations, power sources, productivity
capabilities, and sustainability practices.
We reinforce that natural diamonds and
lab-created diamonds will both have a
role to play in a prosperous jewellery
industry, but only if we protect the
integrity of the industry by sharing the
respective values of each with honesty.
I’d encourage everyone in the industry to
read our recent report – Diamond Facts
– so that they too can be fully educated
on key topics when addressing not only
consumers, but peers too.
The natural diamond industry supports
over 10 million livelihoods around the
world. Up to 80 per cent of rough diamond
value remains with local communities
in the form of local purchasing,
employment benefits, social programs,
investment in infrastructure.
That is without mentioning taxes, royalties,
and dividends paid from the industry to
respective governments.
For example, in Canada, the natural
diamond industry contributes to 24 per
cent of the total GDP in the Northwest
Territories, and since 1996, $US17 billion
($AU25.1 billion) went toward NWT
businesses and $US7.5 billion ($AU11
billion) to Indigenous-owned businesses.
In Africa it’s a similar story, and in
Botswana diamonds represented 33 per
cent of GDP in 2021.
Despite these
challenges
in global
economies,
our industry
remains robust.
Consumers
continue to
spend money
on goods and
experiences
that provide
connection.
Many miles still to walk
A new ‘mystery shopper’ study in the
US earlier this year showed that natural
diamond education for jewellery retailers
is critical to sales conversion. I believe
that these findings are likely consistent
with most markets in the world.
Findings reveal 93 per cent of customers
were more inclined to make a purchase
of diamond jewellery when they felt
sufficiently educated by a salesperson.
This contrasted with only 19 per cent of
consumers inclined to purchase when they
felt uninformed.
This demonstrates that the biggest
opportunity to increase sales in the industry
is to ensure that frontline sales staff are
properly equipped to share the true values
and stories of natural diamonds.
Despite challenges in global economies,
our industry remains robust. Consumers
continue to spend money on goods and
experiences that provide connection.
Our collective role is to continually share the
unique connections that diamond jewellery
symbolises - whether it be between people,
to mark occasions, or just to celebrate
special moments.
Each member of the trade has a unique
part to play in taking the industry forward.
For our part, we remain committed
to bringing attention not only to these
moments, but also to the many great
retailers, designers, brands, and brand
manufacturers that put their heart and
soul in to making the natural diamond
jewellery the incredible industry that we
are proud to represent.
Recent research by the Natural Diamond
Council (NDC) has revealed the conditions
under which both lab-created diamonds and
natural diamonds are sourced and brought
to the final consumer, and what they stand
for, without presenting this as a dichotomy.
Globally, the industry is also pursuing
biodiversity protection and rehabilitation,
covering an area almost four times the
land they use, equivalent to the size of
New York City, Chicago, Washington and
Las Vegas combined.
Name: David Kellie
Business: Natural Diamond Council
Position: CEO
Location: New York City, US
Years in the industry: 6
66 | July 2023

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1300 356 680

Pink Kimberley showcases luxurious Argyle pink diamonds in
elegant, unique designs. All Pink Kimberley jewellery is crafted in
18 carat gold, embellished with rare, sparkling Australian pink and
white diamonds. Each individual stone has been carefully chosen
and intricately arranged in an expression of creativity, influenced
by Australian nature and landscapes.
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02 9290 2199
PinkKimberley.com.au