Jeweller - September 2023

News
Australian jewellery sales
performance declines in July
The latest analysis from Retail Edge highlighted
declining sales across more than 400 Australian
independent jewellery stores, despite recent positive
trends in consumer confidence.
The data from July showed comparative overall
sales dollar performance decreased by 11 per cent
compared with a year-by-year comparison.
Comparative units sold decreased by eight per cent
compared with 2022; however, increased by 11 per
cent on a two-year difference.
Comparative average sale – inventory only - decreased
by 3.6 per cent from $230 to $222. On a two-year
comparison, that category was neutral.
In terms of laybys, sales decreased 9.5 per cent in
dollar terms between new orders and pick-ups and/or
cancellations.
The pattern in services, including repairs, showed a
decrease of 35.5 per cent in dollar values between
incoming orders and pick-ups and/or cancellations.
“This is the sixth consecutive month of double-digit
negative movement in this area. This is an entrenched
consumer pattern that may need more than a small
shift in consumer sentiment to flip the switch from off
to on,” general manager Leon van Megen said.
“This is not to say you should sit back and accept what
is happening. 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 were strong, increasing by
17.5 per cent in dollar terms between new orders and
pick-ups and/or cancellations.
Sales dollars for the diamond precious metal
jewellery section decreased by 21 per cent compared
with 2021.
Colour gemstone precious metal jewellery sales
dollars decreased by 17 per cent on a year-by-year
comparison; however, increased by 14 per cent
compared with 2021.
Sales dollars of precious metal jewellery without
a gemstone decreased by 21 per cent compared
with 2022. Silver and alternative metals jewellery
decreased by 7 per cent; however, increased by 23 per
cent on a two-year comparison.
Mantle disruption: Scientific breakthrough
may revolutionise the hunt for diamonds
New scientific findings may shape the future
of the diamond exploration industry for
mining companies.
A recent discovery by international researchers
has identified the breakup of tectonic plates
as the driving force behind the generation and
eruption of magma from deep inside the Earth.
Diamonds are typically found in a type of
volcanic rock known as kimberlite, which
is found in the oldest and thickest parts of
continents; however, how these diamonds reach
the surface has remained a mystery.
In a study published in Nature, researchers
examined the effects of global tectonic forces
on volcanic eruptions spanning the past
billion years.
“The pattern of diamond eruptions is cyclical,
mimicking the rhythm of the supercontinents,
which assemble and break up in a repeated
pattern over time,” said Dr. Tom Gernon of the
University of Southampton.
“But previously we didn’t know what process
causes diamonds to suddenly erupt, having
spent millions – or billions – of years
stashed away 150 kilometres beneath the
Earth’s surface.”
The project used statistical analysis to
forensically examine the connection between
continental breakup and kimberlite volcanism.
The results showed the eruptions of most
kimberlite volcanoes occurred 20 to 30 million
years after the tectonic breakup of Earth’s
continents. This insight prompted the scientists
to explore what geological process could drive
this pattern.
They found that the Earth’s mantle is
disrupted by a rifting of the crust. During
rifting, a patch of the continental root is
disrupted and sinks into the mantle below.
This triggers a chain of similar flow patterns
beneath the nearby continent.
While diamonds are formed under immense
pressure deep within the Earth, many are
discovered close to the surface.
Perhaps the most notable example of this
phenomenon is the 3106-carat Cullinan
Diamond. The Cullinan is estimated to have
formed in Earth's mantle transition zone at a
depth of approximately 410 kilometres.
The diamond was discovered just five metres
below the surface at the Premier Mine in 1905.
“Breakup not only reorganises the mantle but
may also profoundly impact Earth’s surface
environment and climate, so diamonds might
be just a part of the story,” Gernon said.
This new research could be used to identify the
possible locations and timings of past volcanic
eruptions tied to this process, offering valuable
insights that could enable the discovery of
diamond deposits in the future..
Under seige: Startling sales decline for Perth Mint
The Perth Mint recorded a significant sales
decline in July amid recent political turmoil.
The Perth Mint is the largest processor of newly
mined gold in the world and in the past year,
completed sales in excess of $20 billion.
In July, the mint completed sales of 44,009 troy
ounces of gold and 863,485 ounces of silver.
Those figures represent a month-by-month
decrease of 39 and 35 per cent respectively. On a
12-month average, sales have declined by 45 and
65 per cent.
General manager of minted products, Neil
Vance, didn’t attribute these sales declines to
any particular factor or influence.
“Our distributors reported softening demand in
June and this trend continued into July but they
are reluctant to pin the reason on any particular
factor at present,” he said.
It’s been a difficult year for the Perth Mint,
with a $9 billion deal involving China turning
sour while further scrutiny came following the
revelation that a notorious underworld figure
was permitted to purchase $27,000 in gold.
“Fresh sales data comes after a difficult month
for the mint in Canberra,” writes Jordan Murray
of The West Australian.
“In the Senate, parliamentarians grilled
AUSTRAC and Australian Taxation Office officials
about regulatory oversight of Gold Corporation,
the State Government-owned entity which
controls The Perth Mint.”
He continued: “That followed a series of damning
reports about the organisation’s discontinued
doping regimes and compliance with anti-money
laundering regulations.”
Gold Corporation is the parent company of the
Perth Mint, Australia’s official bullion mint. The
Perth Mint was established in 1899 and is owned
by the Government of Western Australia.
26 | September 2023