NEWS REVIEW
ALROSA Keeps
Prices Stable
Rio Tinto Restructures
GIA Expands
Botswana Facility
World Diamond Congress
in Dubai
Turkey Partners
withWDM
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.
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. H owever, suppliers would
rather have a market driven by ri.~ing
demand than the prevailing shortlges
in supply.
126
10 Rapaport February 2016
, ,
RAPAPORT
FEBRUARY 2016
INTERNATIONAL
COLORED GEMSTONE
56 U.S. RETAIL
Charm jewelry
sales.
ON THE COVER
Emerald and diamond
neck cuff by Joseph Gad.
See The ColoroJMoney,
page 42.
58 U.S. WHOLESALE
M arket conditiom continue the same.
60 HONG KONG
Tough start to new year.
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.
62 ISRAEL
H ong Kong show will be market
barometer.
64 INDIA
Rough imporo lowest in four decades.
Rapaport DialTlOl'lCl Report (U5P5 0712350; !S5N; 0746-9829)
is published monthly by Rapaport USA Inc.
66 RUSSIA
Jewelry sales shrink .
STYLE
120 THE JOY OF COLOR
A dose-up look at the 20 16 AGTA
Spectrum Awards winners.
68 ANTWERP
M ovement slow and cautiou>.
RETAIL
108 RETAILRAP
T his month Rapaport M agazine
asks retailers, " H ow are colored
gemstones selling?"
ECONOMICS
82
86
88
96
98
PARCEL PRICES
RAPNET PRICE SHEET
TRADE SHEETS
ECONOMIC BULLETIN
IMPORT EXPORT
DEPARTMENTS
15
94
100
102
MANUFACTURING CORPORATION
RioDiamond.co
Baselworld
Ha113.0 /E09
Marc h 1 7 - 24
RAPAPORT.
observations
Volume 39 Number 2
IDITORIAL
EDITOR IN CHIEF: Amber M ichel le
EXECUTIVE EDITO R: Phyllis Schil ler
SENI O R EDITOR: Joyce Kauf
SE NIOR ANALY ST: Avi Krawitz
Oscar Heyman
DISIGN
PH OTO EDITO R: luciena Kardonsky
SENIOR DESI GNER: Irena Sap ilak
A SSOCIAT E DESIGNER: Ira Cook
DESKTO P PUBLI SHING CONSULTAN T: Pet e Lambusta
MARKITING
VP MARKETING: Ei leen Farrel l
RAPAPORT LNOIA
101, The Capital. Plot No C70,
BKe Bandra East,
Mumbai 400 05 1
Tel: 91 .22.6628.6500
Fax: 9 1 22 6628.6555
india@Rapaportcom
RAPAPORT INDIA- SURAT
501504 C W ing, Diamond
World Build ing, Mini Bazaar,
Mangadh Chowk ,
Va ra chha Road,
Su ral 395 006
Te l: 9U6U54.9583
Fax: 9 1 261 254.9584
india@Rapaportcom
RAPAPORT DUBAI
Duba i Dia mond Excha nge
Level 2, Office D06
Almas Tower,
Jumeirah Lake Towe rs
PO Box 340600
Duba i, UAE
Tel: 971 .4 .363 .8403
Fax: 97 1 4.369 7243
or lack thereof. Some of the most rare and valuable colo red ge ms
may originally be from min es that are n o longer producing, such as
sapphires from Kashmir. Some ston es are in a category of th eir own,
such as em eralds from th e min es in Colombia or rubies from Burma,
which are highly coveted for the special glow of their color. Specific
geologi cal fa ctors may impact the color of a stone and in some cases
may leave certain characteristi cs that give clues as to wh ere the stone
comes from . Gem ston es are co mm only treated to enhan ce color.
Finding a gem that comes out of th e ground already the perfect color
is a rarity. So of course it is more valuable than a gem th at has been
treated in some way. Gemologists and laboratories act as detectives to
discover the secrets of colored stones so that a valuation of the gems
can be made. In this issue of Rapaport Magazille," Th e C olor ofMon ey"
takes a look at the various issues that contribute to the valu e of rubies,
em eralds and sapphires.
Editor- in -C hi ef
Rapaport February2016 15
"' I -
LOWER TRADING
1
3
5
JANUARY 2016
.30 ct -
11
.50 cl -
13
15
1 01 -
17
19
21
23
25
301 -
The RapNet Diamond Index (RAPITW) is based on the average asking price in hundred $Ic!. oflhe
10 best priced diamonds, fO( the top 25 quality round diamonds (D-H, IFVS2, GIA-graded,
RapSpecA3 and better), which are offered for sale on RapNet- Rapaport D~mond Trading Network.
$4,000
$3,000
U}
$2,000
$1,000
. 402013
. 402014
. 402015
Based on data published by India's Gem and Jewellery Export Promotion Council (GJEPC)
and Israel's Economy Ministry. AJI data is gross (before returns).
Rapaport February2016 19
"
$500
$0
IND IA
INDIA
ISRAEL
ISRAEL
ROUGH
ROUGH
ROUGH
ROUGH
IMPORTS
EXPORTS
IMPORTS
EXPORTS
. 402013
. 40 2014
.40 20 15
Based on data published by India's Gem and Jewellery Export Promotion Council (GJEPC)
and Israel's Economy Ministry. All data is gross (before returns).
On e sightholder su ggested th at
De Beers goods are now the most
attractive on the market following the
January price correction . While 2015
was characterized by excess supply in
20 Rapaport February 2016
$250
$300
~
$200
$250
$150 ~
:;; $200
'" $150
$100 g
(/)
::J
$100
$50
$0
I
1H 2H
2010
1H 2H
2011
$50
1H 2H
2012
Sales
1H 2H
20 13
1H 2H
2014
1H 2H 1H *
2015 2016
$0
Avg . Price
Rapaport February20/6 21
INDUSTRY
RICHEMONT
Switzerland-based Richemont's holiday sales results were
wrapped into its third-quarter reportThe luxury group fared
well, helped by the weakness of the euro currency, w hich
R.ichemont uses in its reporting.
. The group saw sales declining in Novem ber 201 5 for
Europe, which primarily reflected lower levels of tourislll .
Trading in Asia Pacific remained challenging as demand
for watc hes continu ed to contrac t. M ainland C h ina
SIGNET
Signet, th e largest jewelry retailer in the U. S., enj oyed demand improved, but Hong Kong and Macau reported
significantly 10wer sales.Japan saw growth , although at lower
growth across all its maj or divisions.
U. S.- based Sterling Jewelers division - comprising rates due to seasonal factors such as Chinese touri<;m .
Sal es in the Ameri cas remained subdued, althou gh
Kay Jewelers, Jared and oth er regional brands - saw an
overall 7.2 percent year-on-year boost during the holiday jewelry showed growth over soft demand for watches.
. Th e group 's j ewelry maison s, in cluding C arti er,
period, with Kay growing 8.9 percent and Jared, 6.8 percent.
T he success of Kay was attributed to key collections and Van Cleef & Arpels and Piaget, were the top performers,
ca tegories, including th e recently introduced Ever U s limiting decline for the segment as a w hole. The jewelry
two-stone rings.Jared saw its new store operations, marketing mai<;ons' sales improved by 2 percent while watchmakers'
sales ticked up by 1 percent .
and merchandising initiatives pay off.
. Ri chemont exp ec ts t hat th e ch all engin g trading
Zale division sales were driven by material increases at
flagship Zales stores as well as Piercing Pagoda kiosks. The environm ent wo uld likely preva il until March 2016,
Ever Us and other collections, as well as gold j ewelry, were negatively affecting operating profit for the year.
important sales drivers in the kiosk channel.
. The UK.j ewelry division enj oyed higher same-store
sales but saw gains offiet by unfavorable currency exchange
rates. Branded bridal, diamond fashion jewelry and beads
primarily drove same-store sales.
COMPANY
TOTAL SALES
CHANGE FROM 2014*
. Econun erce sales were up 10.9 percent to $139.7 million.
Signet
$1 .95 billi o n
5% [6.3 % 1
St erling Di vision
$1 .2 billion
7.2%
Zale Di vision
$532.9 milli o n 2.3% [5 % 1
TIFFANY & CO.
U. K. Di visio n
$217 milli o n
.9 % [4. 9% 1
Tiffany & Co. attributed restrained consumer spending
and un ce rtain glo bal eco nomic conditions to having
$961 milli o n
-6 % [-3% 1
Tiffany & Co.
negatively affected its holiday earnings.
-7% [-5% )
Ameri cas
$505 milli o n
. Th e Am e ri cas' low e r sa les of 7 p e rce nt w e r e
A sia Pacifi
$187 milli o n
-11 % [-6 %1
Japan
$123 m illion
9 % [12 % 1
exacerbated by the decline in foreign-tourism spending
-4 % [4 % ]
Europ e
$128 milli o n
in N ew Yo rk and o th e r U .S. marke ts. Total sales in
Other Regions
$1 9 million
-20% [-16 %1
C an ada and Latin America rose .
Asia Pacific sales exc1udingJapan plunm1eted 11 percent
Richemont (3Q)
3% [-4 % ]
$3. 16 billi o n
during th e period. C hina's strong continu ed growth for
2% [-5% ]
Jewelry Mai so ns
$1 .73 billi o n
Tiffany & Co. was offset by weakn esses in H ong Kong
Europe
$93 7. 5 milli o n NA [-3 % 1
A sia Pacifi
$1 .12 billi o n
NA [-9% 1
and Singa pore. Japan 's sales ga in ed 12 percent du e to
Ameri cas
$556.3 milli o n 9% [-3 % 1
strong tourist numbers, though its gains were reduced to
Japan
$303.5 milli o n 17% [9% 1
9 percent after strong US. dollar considerations.
Middle East & A frica $245.2 milli o n 4 %
. Europe's 4 percent sales increase in constant exchange
rates was turned into a contraction of 4 percent after currency
*Percentage in bracket s reflects change at constant exchange rates
considerations. Sales rose in the u.K. but notably declined in
COVER
Taka t
42 Rapaport February 20 16
EMERALD ORIGINS
Accordin g to Smith of AGL, most gem varieti es form around a limited range of
geological variables. As a result, there are similar types of material that can occur in
different geographical areas ." For emeralds, we are looking at specific inclusion features,
chemical composition and spectral features as clues to origin. When one considers
Top: Emerald before (top) and after (bottom) ExCel" process. Photo courtesy Eternity Natural Emeralds.
Colombian emeralds, they stand out as originating from a uniqu e geologic occurrence
consisting of an evaporative brine from black shales in veins an d breccia, which im parts
properties unique to that 10cation.Whereas,emeralds from Brazil and Zambia have mostly
formed in a classical schist type deposit and therefore may be very similar in properties
and characteristics to on e another."
Another point ofdistinction , says GrA's McClure,i~ that "Colombian emeralds typically
have three-phase inclusions in jagged voids, calcite and pyrite crystals and an unusual
kind of graining referred to as 'gota de aceite'-literally 'drop of o il.'"
EMERALD TREATMENTS
Wendi Mayerson, senior staff gemologist at AGL, notes that the treatment of emeralds
is nothing new. "Pliny describes dyeing emeralds in 77 AD." Moreover, she says, "You
can use almost anythin g to fill fiss ures in emerald," w hi ch can make id entifying the
nature of th e filler challenging. Few labs, such asAGL, identifY the
nature of the fillers used to clarity enhance emeralds in addition to
quantifYing the degree of the treatment. Most labs, such as Giibelin
and G IA, only quantify the extent.
Adding oil to emeralds is considered the "traditional" treatm ent.
According to Kadakia, an em erald " that only has minor oil is an
t is known within the industry that rubies
accepted form ofenhancement." Polymer-type resins are the tool of
mined in Burma prior to 2008 are not
choice of many for filling the fissures that are common in emeralds.
allowed to be imported into the U.S. Why
Unlike oil, which can dry up or leak out over time, resins are said
then are sapphires not part of the sanctions?
Cecilia Gardner, president. Jewelers Vigilance
to be more permanent, but Mayerson says that's not always the only
Committee (JVC), says, "The sanctions were
point to consider. "Modern, polym er-type fill ers;' Mayerson says,
enacted under President George W. Bush.
"can also be better at reducing the appearance offissures."
It was known that the Burmese military
While there is a variety of polymer-type fill ers used on emeralds,
controlled rubies. and jadeite. Sapphires
the ExCel process is often m entioned by dealers an d other
were not under the same control.
laboratories as the best method. Clarity E nhancement Lab (CEL),
The sanctions were renewed in 2014 in
located in NewYork C ity, is credited w ith developing the ExCel
spite of tentative moves toward democracy.
process and remains th e only location performing the treatm ent
Christopher P. Smith, president of American
process. Alth ough it is considered to be permanen t, Et er nity
Gemological Laboratories (AGL), says.
"Before sanctions were imposed, the ruby
Natural Emeralds (ENE) P resident Shawn O'Sullivan says, " It is a
trade in Burma w as decentralized. The
stable fill er and so will not alter in color or transparency over time.
government was not able to get control of
However, it can also be taken out ."
BURMA: SANCTIONS
PRICING EMERALDS
According to Gary Schuler, director of the jewelry department at
Sotheby's, if an emerald is untreated, other than with minor oil or
traditional type filler, it's worth 20 percent to 30 percent more than a stone treated with a
modern filler. If there has been significant treatm ent resulting in more fissures filled with
a product such as resin, he says,"the value decreases by anoth er 50 percent to 60 percent."
Stuart Robertson, research director for GemWorld, a Glenview, lllinois, company that
offers appraisals, a colored gem and diamond price guide and other gemology-related
services, puts th e price difference for finer quality 5-carat to 8-carat untreated emeralds
at 70 percent to 100 percent more than treated stones.
Rayaz Tabt, ofTabt Gems, USA, a dealer in fine colored gemstones in N ew York,
points out that the branding of colored stones based on country of origin has added an
even wider dispar ity in pr icing. H e says an unenhanced Colombian emerald is priced
five times as high as an unenhanced Zambian emerald - $200,000 per carat for the
ami Prive
CORUNOUM TREATMENTS
For corundum - sapphires and rubies - heat is the enhancement of
choice fo r its ability to add or soften color or even melt away inclusions.
Smith explains there are broa dly speaking three categories of heating:
relatively lower temperature heating, relatively higher temperature heating
and more extrem e heating conditio ns.
R elatively lower temperature heating is generally considered as being
below the threshold when rutile silk - an inclusion within the sto ne dissolves, where primarily o nly the appearance of the stone is changed
by rem oving less desirable colors or color modifiers. "Although the
pra ctice of heating coru ndum dates back more tha n a tho usand
years, since about the mid- 1970s relatively higher temperatures and
co ntro lled hea ti ng con ditio ns have become th e most comm o n
type of heating," Smith explains." U sing higher temperatures and
controlling factors such as the atmospheric conditions, holding
the stones at temperature, as well as ramping up and down of
th e temperatures allows for much more to be accomplished
in addition to just modifying th e color to a greater degree,"
Smith says.
The transparency of a stone m ay be improved by dissolving
rutile silk, as well as healing fissures. In addition , under m ore
extreme heati ng con diti o ns additi o nal elem ents su ch as
titanium, chromium and/o r beryllium can be diffused into
the stone. Smith adds, "Essential characteristics and properties
of rubies and sapphires are altered at the relatively higher
temperatures and under more extreme heating conditions.
This can im pact a lab's ability to determine origin ." O rigin
determinations are still possible in heated rubi es and
sapphires, however Smith points out one example of
why this can becom e m ore challenging." Rutile silk is a
CITY
HOUSE
LOT#
SHAPE
SIZE
COLOR
CLARITY
Hong Ko ng
Hong Kong
New York
Hong Kong
Christ ie's
Christie's
Christ ie's
Christie's
- 2724
-2724
Cush io n
Cush ion
Oval
Cush ion
23 .12
25 .38
8 .24
26.41
Emerald
Emerald
Ruby
Sapph ire
Colombia
Colombia
Burma
Kashmir
$83,612
$83,612
$5 12,925
$145,347
$1 ,933,103
$2,122,066
$4,226,500
$3,838,618
Hong Kong
Hong Ko ng
Geneva
Geneva
Christie's
Christie's
Ch ristie's
Ch ristie's
- 1898
- 1898
66
Pear
Pear
Cushion
Octagonal
23 .18
23 .34
32.08
47. 15
Emerald
Emerald
Ruby
Sapphire
Colombia
Co lombia
Burma
Burma
$97,919
$9 1,919
$209, 154
$77,884
$2, 130,674
$2, 145,38 1
$6,709,664
$3,672,235
Geneva
Ho ng Kong
Geneva
Ch ristie 's
Ch ristie 's
Sotheby's
263
Cushion
Oval
Ova l
23.28
13.21
114.73
Eme rald
Ruby
Sapphire
Colombia
Burma
Burma
$83,434
$449,596
$62,082
$1,942,341
$5,939, 160
$7,122,692
Ho ng Kong
Geneva
Geneva
Sotheby's
Sotheby's
Ch ri stie 's
1935
Step-cut
Cushion
Cushion
35.72
8.62
392.52
Emerald
Ruby
Sapphire
Colombia
Burma
Ceylon
$121,777
$993,816
$44,777
$4,349,880
$17,575,740
$4,226,500
Ho ng Kong
Geneva
Geneva
Ch ri stie 's
Sotheby's
Ch ri stie 's
2 11 1
502
38.51
25.59
35.09
Emerald
Ruby
Sapphire
Colombia
$60,383
Burma
$1,183,045
Kashm ir
$210,268
$2,325,356
$30,274,113
$7,378,310
2011
11111/1 1
11111/11
12/01/1 1
11111 /11
77'
2813
2012
11 127112
11 127112
05/14/12
05/16112
358
2013
05/15113
11/26113
11/13/ 13
2075
355
2014
10/07/14
11/12114
11/11/14
470
348
2015
06/02115
05/12115
05/13/15
351
Octagonal
Cushion
Cushion
In the market today,Burma and Mozambique dominate the ruby landscape. In terms
of pricing rubies, Nagpal goes on to say that for an unheated gem of similar quality,
Burma ruby carries an enormous premium over beautiful Mozambique rubies, with
the Burma ru by costing 200 percent to 300 percent mote. "Pricing for these rubies
however," Nagpal continues, "is not an exact science."
The difference is not as extreme for heated stones.The difference between a price
for a Burma or an African ruby from Mozambique or Madagascar is 20 percent to
30 percent for smaller sizes and average qualities. As the size and quality increase, so
does the difference in price.
46 Rapaport February 2016
SAPPHIRES
In the world ofsapphires, there is considerably more unh eated mater ial than one can
find in mby. For blue sapphires there are al<;o more sources that supply global demand:
These sources consist of Burma (Myanmar), Ceylon (Sri Lanka), Kashmir (Northern
India) and Madagascar.When it comes to origin deter minations, this greater number of
sources can also make origin determinations trickier." You would never confuse Burma
and Kashmir blue sapphires;' Smith says,"however both Sri Lanka and Madagascar can
produce Kashmir-like stones." Smith furth er explains, "O n the other hand, tru e Burma
stones may be cOMIsed with some Sri Lankan and Madagascar material as welL"
Kashmir sapphire typically has extremely fin e- grained cloud.. in parallel planes,
tourmaline inclusions and elongated corroded zircon crystals, says M cClure.
SAPPHIRE PRICING
With blue sapphires,Takat says, a stone fro m Kashmir would be worth $100,000 per
carat, while a similar sapphire from Madagascar would go for $20,000 per carat.
Time has played a role in pricing, of course, as the m arket for th e increasingly rare
stones grows . According to Kadakia , a 10-carat Kashmir sapphire that sold for a total
of$10,000 in 1965 is now p,iced at $150,000 to $200,000 a cant.
GRADING SYSTEMS
Unlike the world of diam ond grading where th e G IA's D - ro- Z system is in use
globally, several co lor grading systems co mpe te for bu yer's and selle r's atte ntion.
Explaining G IA's procedure, McClure says, " The colors listed on our reports are simple
visual colors .We use Munsell color references for consistency."
GemDialogue, a color comm u ni cation syste m devised by th e
late gemologist Howard Rubin in 1983 and still in use today,
includes 21 transparent color charts showing ten saturation
levels for each coloLA stone is positioned against th e
various charts until a match is found. Th e system is
presented in a loose-leaf binder and is meant to b e
used in the field when the gem buyer is without
access to other tools.
In the past two years, Gem World introduced a
very similar system , based on M unsell chips, but
also providing pages with overlay charts. Each
of the 1,400 colors is given a specific name. The
system is intended for use with the firm 's Gem Guide
pricing scale.
The system in use atAGL takes a more holistic approach
to grading co lored stones. It evaluates the color based on a
l - to-lO scale, while al<;o looking at other important fa ctors,
su ch as th e clarity and cutting. AGL's system is not as easy to
grasp at a glance as there is a lot of information to absorb, but it is
intended to give the m ost precise, and repeatable, m easurem ent of a
stone's quality in a way that is comparable to the G IA grading system
for diamonds .
Kashmir Sapphire.
QUANTITY BY CARATS
Rubies Cut But Nat
2011
3.922.651
6.981.303
2.755,435
2012
4.259,789
5,944,317
2,894,750
2013
3,757,687
6,862,776
3,039,527
2014
3,616,487
6,079,823
3.320, 118
201S.Nov.2015
3,142,900
6,142,333
4,738,196
CUSTOMS VALUE
Rubies Cut But Not
2011
44, 185,657
280,730,523
348,192,117
2012
111,535,046
268,391,400
410,381 ,298
2013
148,162,093
345,595,211
433,569,922
2014
132,358,567
415,740,636
647,422,754
201S.Nov.2015
137,651,515
401 ,449,056
530,239,342
NEW CONTACTS
For some other exhibitors, the
opportunities to make new contacts
and reestablish existing relationships
were the main draw of the event.
" If I were only to look from a sales
perspective, then rhis wouldn't be a good
show," claimed Nilesh Chhabr ia, chief
operating officer of sales and marketing at
Finestar Jewellery & Diamond~ Pvt. Ltd.,
a Mumbai manufacturer. He explained
that this show allows customers who only
know tllem through trading platform.~ to
see them "face to face, which will make it
easier to do business in the lilmre."
The pric e challenge that buyers
presented at the show surprised some
Indian diamantaires. "The buyers here
seem to have better bargaining power,
as many of them have cash in hand ,"
commented Akshay Dugar, a partner of
Mumbai manufacturer Choice Diamond.
"In Mumbai, I can usually get prices dose
to my asking prices. I would probably
make more money sitting in Mwnbai than
60 Rapaport February 20 16
COLORED GEMSTONES
The market for colored gemstones has
increased over the past year. According to
Zion, the high level of tramparency in the
diamond industry has made it more difficult
for wholesalers, brokers and retailers to
make the same profit margins as before.
" I think this is a major factor pushing
people into the colored stone business.
There is a much wider range ofgoods, and
the goods are generally much cheaper in
total value so customers who are a bit more
cautious in how they spend their money,
yet still want to buy an impressive necklace
with big stones, can do that," he said.
The increased demand for rubies,
emeralds and sapphires has also been
influenced by the recent success of tJlese
stones at the Sotheby's and Christie's
jewelry auctions. Over the past year these
stones have featured heavily in top ten li~t.~
and have repeatedly smashed world record
prices. " T he most popular gemstones are
rubies," Zion said. These arc extremely
popular and it seems that every top-quality
unheated Burmese ruby that comes to
auction smashes records. "We pay a lot of
attention to colored stones," Zion added.
"Even in a tough market they are popular."
Customers tend to go for larger gemstones,
2 carats to 3 carats for earrings and 5 carats
for main stones.
62 Rapaport February 20 16
INDUSTRY NEWS
In an exclusive interview with
Rapaport Magazine, Dinesh Navadia,
president of the Surat Diamond
A"sociarion (SDA) explained, "The markec
for diamonds in India post-Diwali has
seen some positive growth, hut to bring
in stability between demand and supply
for rough, it is important that diamond
manufaClUrcrs restrain from investing
in morc rough without clearing off the
inventory they have." Navadia shared
that the development of the small and
medium enterprise (SME) sector under
the association would address the issues
they face in relation to impon, [mance and
other related things that could help them
boost their business. Navadia added, "The
conunittee has already agreed to have an
SME senor under the Gem and Jewellery
Export Promotion Council (GJEPC).We
should see it being operational this year."
Mehul Chok~,chairman, Gitat~ali Group,
speaking exclusively with Rnpaport Magaziue,
pointed out, "The gems and jewelry
industry in India is facing a shonage of
rough, keeping in mind the speculative
demand." He added, "We have to look
at the demand for polished stock - i,
hasn't as yet seen much improvement. It
is important that we see profitability this
year, as we have witnessed negative growth
for the past two yean.We need equilibrium
between rough and polished. I believe
2016 should be a better year."
Highlighting the negative phase that
the gems and jewelry industry is currently
experiencing, Sabyasachi Ray, executive
direcror, GJEPC, told Rapaport Magaziue
exclusively,"It is a matter ofconcern to look
at tile figures of rough imports. Ncverin the
64 Rapaport February 20 16
MARKET DYNAMICS
Choksi emphasized that keeping 1Il
mind the current political situation, the
implementation of gross service tax cannot
be expected to happen in 2016 and the
standardization of certain taxes between
different states in India would not be
implemented. Speaking of the current
movement of goods, Chok~i shared, "We
see a selective buying in smalls; particularly
fine-make goods are moving. We are aho
seeing positive movement in very small sizes
(-2) and +11 is moving in all ranges.There
is a shortage of dossier." +
66 Rapaport February 20 16
NO CHRISTMAS MIRACLE
The majority of jewelers appear to
agree that Christmas and N ew Year sales
have concluded with about a 20 percent
year-on-year decrease. T he higher sales
results a year ago are largely explained by
an Wlprecedented customer shopping spree
MOVING FORWARD
Nirav Shah of Beauty Gems BVBA
elaborated : "We definitely noticed that
retailers bave started restocking. However,
they're doing it very carefully, wbich
translares into approximately 30 percent
less orders placed compared to the same
period in 2015. It's the sevemh time we're
participating in the ADTF. For us, if this
show keeps being well managed, it's abom
to become a major barometer of the health
of the European market fo r the year co
come. Hong Kong isn't expected to be
great, but it seems that we're going to be
able to rely on the U.S. co give us some
stability. Indeed, American orders keep
coming in at a steady pace."
According to D oshi Mitesh Ramesh of
ROUGH ISSUES
Howeve r, regarding the rougb, a
worrisome pattern appears to be coming
to light. A~ everybody knows, for the past
few months, the major suppliers have
been reducing the quantity of rough that
is being forced into the pipeline. Prices
went down as well, which is what the
market absolmely needed to restore profit.
However, a diamantaire who wished co
remain anonymous said that sightholders
are now pushing up rhe premiums on the
secondary market. This, in turn, could
likely change the endeavor, initiated
by the producers, to help the market
into a simple transfer of profit from the
Diamond Trading Company (DTC) to
its sightholders.
Polished:
Everything is selling, especially for cash.
More than ever, cash means a discount.
Cash and liquidity issues are being seen
across th e wo r ld.
In general, small goods below
l O-pointers are a little less easy to move.
A shortage of over 10 ca rats is being fe lt
across th e pipeline.
Russia is exp ected to wea ken as a market
for colored diamon ds, mainly due to the
depreciation of the r uble aga inst the
U.S. dollar. Saudi Arabia will also suffer
shou ld t he oil market re main depressed .
ITIS HAPPENING
ON RAPNET.
Whether you're looking for diamonds, pricing information,
buyers or sellers, RapNet is where it all happens. Our customized
solutions make it easy to find exactly who and what you need.
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RAPNET.
THE DI A M O ND MARKET
1_00-1_49
14.575/20.839
-47/ -24%
ECONOMICbulletin
u.s. Imports Slide
us. polish ed diamond imports fell1S percent year on year to $1 .62 billion in November 2015,
representing the steepest drop recorded in the year. Polished diam ond imports by weight declined
14 percent to 735,561 carat~. Polished diamond exports dipped 16 percent by value to
.......$1 .37 billion and 15 percent by weight to 1 million carats .
Rough diamond imports surged 39 percent by value to $32 million and
126 percent by weight to 29,042 carats.
From January to November 2015, polished diamond imports and exports
slipped 3.2 percent to $21.47 billion and 12.7 percent to $17.06 billion
respectively. For the same period, rough diamond imports plullUneted
47.2 percent to $277 million.
0:?JY
!
Rough Imports
$800 0
I
I
Q $600 0
~
~
"0
0
$400 0
$200 0
Polished Imports
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,
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"000
$3000
~
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$2000
,~
11000
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20
30
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Dec Jan
20 15
2015
20 15
2015
20 142015
Feb Ma, Apr May June July Aug Sep Oct Nav
___ U.S.
___ Belgium
.,.-
~:Z:~:~~~:~~: fourth quarter that ended December 31,2015 . The company reported its three
Idiamond sales completed in the quarter achieved th e highest quarterly sales results
achieved to date, with an average price of$l ,512 per carat .
During the quarter, 28 diamonds ofl 0.8 carat~ or more were recovered. The two largest gems
weighed 74.5 cara t~ and 66.3 carats .
Average stone size recovered increased 12.5 percent quarter on quarter to 1.35 carats.
Polished Exports
.~
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c:
$3200
$1600
$2400
$800
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f-i-+W+-Hf-i-+j-l+-Hf-i-+4+-Hf-I--4
~~~~~i~~~~~~~~~~~~
Jan
""
____ U.S.
jul
Precious Metals
PLATINUM
DATE
GOLD
LONDON PM
PM
SILVER
1/4116
1082.25
893.00
14.0000
115/16
1077.00
1/6/16
1091.40
873.00
14.0050
1n/ 16
1106.35
865.00
14.0300
118/16
1101.85
874.00
14.0400
1111 /16
1100.75
853.00
13.9700
1112/16
1085.40
843.00
13.8800
1/13/ 16
1088.15
1114/16
1088.40
835.00
14.0200
1115/16
1093 .75
839.00
13.8000
1118116
1089.20
816.00
13.8800
1119/16
1086.25
834.00
14.0300
1/20/16
1101.75
820.00
14.0500
1/2 1/ 16
1096.50
814.00
14.0100
1/22/ 16
1096.25
833.00
14.1700
1/25/ 16
1106.60
862.00
14.2200
1126116
1113.60
867.00
14.3300
14.0100
13.8300
CALENDAR
of events
2-7
3
3-7
3-7
3-7
5-8
7-11
8-11
10-16
12-15
14-18
17-20
19-23
24-28
2S-28
27-28
27-29
MARCH 2016
1-S
3-7
S-8
7-12
10-12
10-13
10-13
13-15
13-15
13-15
16-19
17-24
18-20
19-22
Hong Kong
APRIL 2016
5
5-9
7-10
8-11
9-11
13-16
14-17
17-19
19
20
20-22
23-36
MAY 2016
3-7
7-9
1-11
11-13
11
18
19-22
2S-29
30-612
31
31-6/6
RETAIL PROFILE
KAUF
UNIQUE FLAVOR
STARLIGHT SPARKLE
Thompson attribut es his strong diamond sa les
[0 th e hi g her- quality diamonds in th e handmad e,
labor-intensive pieces."Th ere are no SI diamonds in the
score,"Thompso n po ints outVS and G to H diamonds
represent th e " minimum" qu ality he carries. However,
most di amonds are VVS in the E to F color ran ge. For
his own cu stom d esigns, Thompson only uses VVS [ 0
fl awless cl ari ty diamonds.
,,
,
GALLERY OF JEWELS
Thompson ha s created an
Barbara Heinrich
By PHYUIS ScHILLER
-'1"'- he 4Cs are not the only things that make a piece
Rona Fisher
109
1128116
12131/15
% CHANGE
33.38
37 .13
-10%
113.98
123.69
-8%
Blue Ni le
Signet Group
'''''
'"'
""
"",
J
61.02
76.29
-20%
J
2016
20"
-
Dow.)ones Index -
2011 1.65 2.27 2.01 2.23 2.67 2.11 2.02 2.22 2.12 2.04 2.50 5.72
2012 1.67 2.60 2.05 1.95 2.67 2.14 1.94 2.1 1 2.04 2.05 2.53 6.03
2013 1.78 2.53 2.13 2.23 2.70 2.12 2.00 2.14 2.01 2.23 2.67 5.n
2014 1.89 2.61 2.14 2.28 2.83 2.16 2.13 2.22 203 2.16 2.51 5.56
2015 1.77 2.47 2.03 2.22 2.n 2.28 2.19 2.22 2.02 2.13 2.60
Total Year Year-to Date "fo Change
2011
29.56
2012
2013
2014
2015
29.78
23.84
23.75
30.31
30.52
24.54
24.96
3%
24.70
24.70
-1%
1%
0%
2%
'"
'00
"
~
",
, , ,
JFMAMJJASOND
COLORED GEMSTONE
Margo Manhattan
IMPROVED TECHNIQUE
result~
are
LEGACY
AN ENGAGING IDEA
So much of jewelr y purchasing,
points out Raden, is not just about
what you want but th e desire to fit
in and keep up. It's how De Beers created
th e engagem en t ring imperative, she
~~~~~~;~~::-----~~~:~~~~~~~--_J
When
it everyone
comes to wants
want the sa m e thing, Raden
and
desire,
goes on to say. " First and foremost you want safety and
security for yourself and your children . But once yo u
ge t past th e basics, everyone wants something shiny.
Everyone wants to compete and compare. It's normal
and somehow comforting to know that people who
I don't know, who have a very different culture, aren't
that different in this respect."
119
STYLE
By AMBER MICHELLE
olor is on e of th e best ways to exp ress your personality.
Combine colored gemstones in uniqu e jewelry designs and
you've got a winner. Th at's exac tly what happened at th e
32nd edition of the American Gem Trade Association (AGTA)
SpectnunAwards competition, where colored gems were showcased
in innovative designs. The judging for the competiti on took place in
N ewYork City, where RonaldWArends,Aires Jewelers; Stephen M.Avery,
Stephen M. Avery, Inc.; Deirdre Feath erston e, Fea th erston e D esign ;
Lauren Kulchinksy-Levison, Mayfair Rocks and Aton Suna, Suna Bros.,
gathered to evaluate the 492 entries. At the same time, the C utting Edge
Awards, which recognize excellence and creativity in lapidary work, were
also being assessed. Once the winners were announced, the j ewelry
and gemstones were displayed during an editor's event to promote
co lored gemstone jewelry to th e media, stylists and oth er
style influencers.
BEST USE OF COWR
Bella C ampbell
Ca mpbelliaN
Slue-green tourmaline, emera ld
and la-k.arat yellow gold
earrings.
FAsmON FORWARD
Brian Cook
Nalllrt's Goomary
Quartz, Paraiba tourmaline,
hauyn, ruby, spesyrtite garnet,
golden rutilated quartz, fire agate beads
and 24-karat yellow gold Wheel of Light
numinous pendant.
EDITORS CHOICE
Eclat Jewels
Eclat j ewds Inc.
Aquamar ine. d lamond,enamel
and 18karat yellow gold cuff.
CV'
o
I I I
FIRST PLACE
Tony Nemyer
Grimbil/l Jewelers
Purple spinel, diamond, platinum
and 1S-karatyellowgold ring.
GEM DIVA
Erica Courtney
Erica Courtney, Inc.
CV'
CO
THIRD PLACE
SECOND PLACE
Caroline C hartouni
C(Jrolille C
Laurence Bruyninckx
Laure/ICc B ruynillckx
SECOND PLACE
Ricardo Basta
E. Eichberg, l lU.
Rubellite tourmaline, diamond,
ruby and l8-karat rose gold ring.
FIRST PLACE
C laudia Kretchmer
Somewhere in the Rainbow
THIRD PLACE
Randy Coffi
Somewhere ill the Rainbow
Skolor tourmaline, Para iba
tourmaline, pink. sapphire,
diamond and platinum ring.
GEM DIVA
Lisa Linhardt
Linhardt Design
Yellow sapphire and oxidized
sterling silver MTempest"
sculptural duster ring.
cv
u
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U)
U)
THIRD PLACE
Gil
Gil Int'/
Alexandrite, diamond
and platinum ring.
FIRST PLACE
Brent Malgarin
Elegmlt Gems, Ltd.
Slue zircon, pearl, diamond
and platinum necklace.
122 Rapaport
February 2016
SECOND PLACE
Lindsay J an e
Ambassador Gen,S
f'adparadscha sapphire, orange and pi nk
sapphire, diamond and p latinum ring.
GEM DIVA
N aomi Sarna
Naomi Sarna Desig1lS
White, yellow, pink, brown and
green diamond, multicolored
sapphire, amethyst and
l8-karat white gold
petal brooch.
SAVOR SILVER
MANUFACTURING HONORS
Michael Jakubowski
Gem Fanatic
U.nheated pink sapphire, white and pink
diamond, l4-karat white and rose gold ring.
Hisano Shepherd
little It
PLATINUM HONORS
Kathy Kinev
J ewel Creations, flu.
Slue zircon, diamond and
platinum "Chartres" ring .
PLATINUM INNOVATION
Michael Endlich
Pave Fine Jewelry
MANUFACTURING HONORS
Troels D. Larsen
Truels D. LArsen Tewelry
Tanzanite, diamondand l8-karat yellow and
white gold necklace.
SAVOR SILVER
Priyanka Murthy
ARYAESHA
PLATINUM HONORS
Eddie Sakamoto
Somewhere ill the Raillbow
HONORABLE MENTION
Alexia Connellan
Alexia COlllleila" Lu xury Jewelry
-"
SAVOR SILVER
William Travis Kukovich
William Travis Jewelry
PLATINUM HONORS
HONORABLE MENTION
Josette Patterson
Mark Pattersoll
Rubellite tourmaline, diamond and
l8-karat white gold "Aura" earrings.
PLATINUM INNOVATION
Lorenzo Chavez
Geogem-USA
Black jade, 5apphire, diamond,
platinum and la-karat yellow gold
"Big Sky" pendant.
Rapaport February 2016 123
CV'
I I I
FIRST PLACE
Ricardo Basta
E. Eichberg, Inc.
Carnelian, tsavorite garnet,
diamond and l8-karat yellow gold
"Enchanted Frog" ring.
SECOND PLACE
THIRD PLACE
Kim Hurlbert-$arosi
Sarosi by Timeless Gems
GEM DIVA
Gurmit Kaur Campbell, SRW
Heath London
Heath LondoN Jewelry
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PLATINUM INNOVATION
Heena Chhcda-Shah
VALANI
Blue sapphire, diamond and
HONORABLE MENTION
Heath London
Heath London Jewelry
?araiba tourmaline, p ink
tourmaline, diamond and
SAVOR SILVER
MANUFACI'URING HONORS
Stuller, Inc.
Stuller, l,u.
Elizabeth Garvin
Eliz abeth Can,ill Pille
PLATINUM HONORS
Michael Endlich
Pave Pille Jewelry
Aquamarine, heliodor,
l8-karat yellow gold and
oxidized sterling silver
Cyclone" cuff.
FIRST PLACE
SECOND PLACE
Ziad Noshie
Almaza jewelers
Ralph Wobito
Wobito Gems, Ltd.
cv
I I I
~
U)
-Z
SECOND PLACE
Llyn L. Strelau
THIRD PLACE
FIRST PLACE
Jewels by Desigll
Mark Schneider
Mark Schlleider D esigll
Mark Schneider
Mark Schlleider Design
PLATINUM HONORS
I I I
David Hines
Nvir B/flIuhe
MANUFACTURING HONORS
Craig Slavens
Studio 247 Pinejewe/ry
Unheated Sri Lankan color-change
violet-blue sapphire, diamond,
l8-karat yellow gold and platinum ring.
SAVOR SILVER
William Travis Kukovich
William Travis jewelry
Golden sheen sapphire, 18-karat yellow gold,
l8-karat rose gold and oxidized silver ring.
I I I
SECOND PLACE
Glenn Lehrer
FIRST PLACE
Joseph Ambalu
I I I
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SECOND PLACE
David Nassi
100% Natllral, Ud.
22.73-carat unheated Sri Lankan
yellow ~apphire ..
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>
THIRD PLACE
Rodney Rahmani
Brilliant Stars
67.11-carat unheated b lue
Burmese sapphire carving.
CV
<t:
U
THIRD PLACE
Sailesh Lalli
HONORABLE MENTION
Glenn Lehrer
Lehrer Designs, Inc.
53. 57-carat tran~pa rent gem
~ilica chrysocolla
"Geo rgia's Dream" carving.
o
I I I
l-
I I I
FIRST PLACE
John Dyer
Johll Dyer & Co.
21.96-carat multifaceted
cu~hion-cut imperia l topaz.
I I I
::r::
SECOND PLACE
Hemant Phophaliya
A G Color, bu.
40.58-carat checkerboard
tanzan ite.
I-
l-
THIRD PLACE
Darrell Jang
Darrell Jang
42 .39-carat cut-corner
octagon tourmaline.
SECOND PLACE
Dalan Hargrave
I I I
B. Hmju
>
~
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o
Z
Z
SECOND PLACE
Mikola Kukharuk
Nomad's
Suite of vintage pear-cut
grossular mint garnet,
50.26 total carat weight.
0(5
if)
I I I
CV
11-
120.98-carat tanzanite
"New Era" cut with
inverse facets.
Robert Shapiro
14.29-carat oval black o pal.
Z
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if)
THIRD PLACE
John Dyer
Johll Dyer & C o.
FIRST PLACE
Robert Shapiro
<t:
if)
::::J
63.63-carat sunstone
"Cele~tial City" carving.
;1
I-
I I I
FIRST PLACE
Allen Kleiman
A. Kleiman & Co.
I I I
FIRST PLACE
Dalan Hargrave
;1
cv
SECOND PLACE
Sailesh Lalli
Sparkles and Colors USA, Inc.
14.93-carat moonstone.
THIRD PLACE
Ajay Bansal
Best in GeIIrs
?air of matched pear-shaped
cabochon opals. 84.63 total
carat weight.
::r::
o
THIRD PLACE
Steve Wallner
Westview Gems
5.29-<arat green-blue colo r-~hift
sapphire.
Rapaport
February2016 125
DESIGNERlines
by A IIIber Michelle
he extraordinary jewelry of
Hong Kong-based des igner
Wallace C han is captured in a new book,
H:allace Chan: Dream Light Water, which he
penned with jewelry historian and gemologi~t
...._ .....' Juliet de La Rochefoucauld. Publi shed by
Rizzoli New York, the book features Chan's most
intricate and technically challenging creations. All of
the jewelry in th e 380-page tome is showcased through
detailed photography th at accentuates the precious
materials, innovative techniques and vision of Chan .
Wallace Chan: Dream Light Water is a limited edition of
2,000 individually numbered copies.
Chan shares his design philosophy and creative
influences with Rapaport Maga z ine Editor-in-Chief
Amber Michelle.
Why did you decide to write a book?
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