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,
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.
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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
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
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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,
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
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