Rapaport Feb 2016 V39 N2

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Rapaport Magazine, diamonds, jewellery and gemstones.

Text of Rapaport Feb 2016 V39 N2

  • Manufacturers of large stones and fancy colors

  • FOREVERMARK STRENGTHENS PARTNERSHIPS Philippe Mellier, CEO of the De Beers Group of

    Companies, reassured partners of the Forevermark diamond brand that 2016 would be a year of renewed working relationships. Speaking at a cocktail reception hdd in New York C ity after a partners' meeting in January, Mellier said

    that while 2015 was a tough year for many in the diamond industry. he believed Forevermark shone through what he called a "perfect storm."

    Mellier described how 2015 began with retailers slowing down restocking due to a softening consumer demand at the end of 2014.ln addition, an evenhla1 slowing of growth in China left many China~focused firms stranded with excess inventory. The compounded problems posed by banks providing lower leveL~

    Philippe Me/lier of financing had created working capital and profitability issues among cutters and polishers, he said . This resulted in distressed selling in the midstream, contributing to polished prices dipping, leading to even slower retail buying. Mellier said that De Beers recognized the need to respond effectively to turn things around.

    De Beers had taken measures to bolster the diamond industry, according to Mellier, including allowing sightholders increased deferrals, as well as rough diamond price adjustments. The mining company sought to boost industry confidence around product integrity by launching a melee testing service, and invested "tens of millions of additional dollars" in consumer marketing.

    Forevermark diamond sales grew 33 percent year on year from January to November in 2015. Me11ier added that partners have told him their Forevermark dianlond~ achieve five margin point8 Rapaport February 2016

    NEWS REVIEW ALROSA Keeps Prices Stable

    Rio Tinto Restructures

    GIA Expands Botswana Facility

    World Diamond Congress in Dubai

    Turkey Partners withWDM

    to work on consumer marketing, undertake scale research and expand on it

  • RAPAPORT FEBRUARY 2016

    "It is for more tf an educational process in sellillg colored stones. Customers typically

    (ome 111 armed with some knowledge if at least the 4Cs of diamonds. Explaining

    about treatmCllts has to be part if the repertoire so they understand the reality

    behind the colored stones tiler are huyillg and that most gems are treated. With

    colored stOtlCS, we're usually creatillg the passion for tllat particular gem . . . "

    jOhtl Carrer Presidetll

    Jack Lewis Jewelers BloolHinguJtJ, nlinois

    126 10 Rapaport February 2016

    COVER 42 THE COLOR OF MONEY

    Country of origin and treatments impact colored gelU~tone prices.

    NEWS REVIEW 8 FOREVERMARK STRENGTHENS

    PARTNERSHIPS De Beers Sales Jump.

    28 RIO TINTO RESTRUCTURES Peregrine Settles Royalty Litigation; Diameor Arranges Loan Deferral; ALROSA Keeps Prices Stable; Murowa to Boost Production.

    30 GIA EXPANDS BOTSWANA FACILITY AGS Offers New Service; World Diamond Congress in Dubai; lsrad Sues for GrantTerms Breach; LOB Releases Guide.

    32 TIFFANY UPDATES BUYBACK PROGRAM Extell Acquires Land fur New Tower; Hatton Garden Heist Gang Convicted; Turkey Parmer'S with WDM; Element Six Sues lb.

    INDUSTRY 18 SUPPLY SHORTAGES

    PUSH PRICES UP Market sentiment improved in January. However, suppliers would rather have a market driven by ri.~ing demand than the prevailing shortlges in supply.

    34 NEW CONSUMER MIND-SET DAMPENS HOLIDAY SALES Lower prices did lirde to stimulate demand as consumer

  • RAPAPORT FEBRUARY 2016

    ON THE COVER Emerald and diamond

    neck cuff by Joseph Gad. See The ColoroJMoney,

    page 42.

    Rapaport DialTlOl'lCl Report (U5P5 0712350; !S5N; 0746-9829) is published monthly by Rapaport USA Inc. 133 East Warm Springs, Las Vegas, Nevada 89119. Editorial, design and marketing services are provided to Rapaport Diamolld Report by Diamond Research and Marketing Institute LLC

    Subscriptions: U.S. $180 per year, Overseas $350 to Rapaport Diamond Report, '33 East Warm Springs, Las Vegas, Nevada 89119. Periodical postage paid at Las Vegas, NV, and additional mailing offices.

    POSTMASTER: Send address changes to Rapaport Diamond Report, '33 East Warm Springs, Las Vegas, Nevada 89119.

    Copyright 2016 by Rapaport USA. All Rights Reserved. Reproduction is strictly prohibited.

    Rapaport Diamond Repo~, Inde~, Index-The Internet Diamond Exchange-, Jewelry Connoisseur-, RapNe", Rapaport-, Diamonds.Ner-, and JNS- are trademarks of Rapaport USA.

    12 Rapaport February 2016

    INTERNATIONAL 56 U.S. RETAIL

    , .

    Charm jewelry boL~ters sales. 58 U.S. WHOLESALE

    ,

    ,

    Market conditiom continue the same.

    60 HONG KONG Tough start to new year.

    62 ISRAEL Hong Kong show will be market barometer.

    64 INDIA Rough imporo lowest in four decades.

    66 RUSSIA Jewelry sales shrink .

    68 ANTWERP M ovement slow and cautiou>.

    RETAIL 106 AN ARTIST'S EYE

    Originality and creativity are on display at French Designer Jeweler in Scottsdale,Arizona.

    108 RETAILRAP T his month Rapaport M agazine asks retailers, " How are colored gemstones selling?"

    110 RETAIL BULLETIN

    112 RETAIL SCOPE

    COLORED GEMSTONE 116 DOUBLE VISION

    Backing tramlucent pastel gemstones with hematite or mother-of-pearl to create doublets add~ new colors and texture to gems.

    LEGACY 118 PSYCHOLOGY OF DESIRE

    T he desire to create adornments with beautiful gemstones i.~ as old as civilization. And the desire to O\\m these jewels, says a new book, has played a major role in shaping hi.~tory.

    STYLE 120 THE JOY OF COLOR

    A dose-up look at the 2016 AGTA Spectrum Awards winners.

    126 DESIGNER LINES

    128 JEWELRY CONNOISSEUR

    ECONOMICS 82 PARCEL PRICES 86 RAPNET PRICE SHEET 88 TRADE SHEETS 96 ECONOMIC BULLETIN 98 IMPORT EXPORT

    DEPARTMENTS 15 LETIER FROM EDITOR 94 ADVERTISER DIRECTORY

    100 CALENDAR 102 TAKE NOTE

  • MANUFACTURING CORPORATION

    62 W 47th St #1 4All, NYC 212.827.0328 Info@RioDiamond.co RioDiamond.co

    Hong Kong International Diam.ond, Geln & Pearl Show Asian World Expo 2 - CON21

    March 1 - 5

    Baselworld Ha113.0 /E09 Marc h 1 7 - 24

  • RAPAPORT. Volume 39 Number 2

    IDITORIAL EDITOR IN CHIEF: Amber M ichel le EXECUTIVE EDITOR: Phyl lis Schil ler SENIO R EDITOR: Joyce Kauf SENIOR ANALYST: Avi Krawitz ASSOCIATE EDITO R: Shuan Sim

    INTERNATIONAL CORRESPONDENTS: U 5 RETAIl: Lara Ewell HONG KONG. Mary Kavanagh INDIA: Zainab A. Morbiwala RUSSIA: Svetla lla She lest BELGIUM: Marc Goldstein

    COLORED GEMSTONE: Shery l Jones SPECIAL CORRESPONDENT: Et tagale Blauer

    DISIGN PHOTO EDITOR: luciena Kardonsky SENIOR DESIGNER: Irena Sap ilak A SSOCIAT E DESIGNER: Ira Cook DESKTOP PUBLISHING CONSULTANT: Pet e Lambusta

    MARKITING VP MARKETING: Ei leen Farrel l

    PHOTOGRAPHY: Don Kozusko

    FOR ADVERTISING INFORMATION Eileen Fa rrell Tel: 646 572 .8560, eileen@d iamonds_net TO CONTACT EDITORIAL Amber Michelle, Editor in Chief Tel: 212 535 .2283, amberCdiamondsnet The above editorial, design and marketing services are provided to Rapaport M a gaz ine by Diamond Research and Marketing Institute LLC. 420 Madison Avenue, 7th floor New York, NY 10017 Te l: 212 354.9100 Fax: 2128400243 d rm i@d iamonds.net PUBLISHER: Martin Rapaport A SSOCIAT E PUBLISHER: Rivka Rapaport A SSISTANTS TO PUBLISHER: Ezi Rapaport, Mordy Rapaport

    RAPAPORT 133 East Warm Springs Road; Suite 100 Las Vegas, Nevada 89119 Tel: 702 .893 .9400 Fax: 702 893 9440 info@Rapapo rtcom www.Rapaport .com

    RAPAPORT BELGIUM Hovenierstraat 53, Box 13 B 2018 Antwerp, Belgium Tel: 32.3 232 3300 Fax: 32 3 .232 .4990 belg ium@Rapaportcom

    RAPAPORT ISRAEL Betzalel St . 54, Suite 1362 Ramat Gan 52521, Israel Tel: 972.3.6 13 .3330 Fax: 972 3 613 3111 israel@Rapaportcom

    RAPAPORT HONG KONG Unit 2206, Kinwick Centre 32 Hollywood Road Centra l, Hong Kong Te l: 852 .2805 .2620 Fax: 852 2805.2605

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    RAPAPORT INDIA- SURAT 501504 C W ing, Diamond World Build ing, Mini Bazaar, Mangadh Chowk, Varachha Road, Sural 395 006 Te l: 9U6U54.9583 Fax: 9 1 261 254.9584 india@Rapaportcom

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    Subscriptions: U.S, $180 per year. Overseas $350 to Rapaport Magazine, 133 East Warm Springs, Las Vegas, Nevada 89119, Copyright 2016 by Rapaport USA. All Rights ResefYed. Reproduction is strictly prohibited. Rapaport Diamond Reporr-, Rapaport Magazine-, Inde~, Index-The Internet Diamond Exchange-, Jewelry Connoisseur-, RapNe", Rapaport-, Diamonds,Ne" and JNS- are trademarks of Martin Rapaport,

    observations

    he mystery and allure

    of co lore d ge m ston es

    has seen a ren aissan ce in the

    past couple of years as notable rubies and

    Oscar Heyman

    sapphires garner record prices at auction. Rubies and sapphires

    were the top-selling lots in several sales at C hristie's and Sotheby's in

    2015. In the world of colored gemstones, two things are of paramount

    importance when discussing price - country of origin and treatment,

    or lack thereof. Some of the most rare and valuable colo red gems

    may originally be from mines that are no longer producing, such as

    sapphires from Kashmir. Some stones are in a category of their own,

    such as emeralds from the mines in Colombia or rubies from Burma,

    which are highly coveted for the spec