SA Jewellery News • SAJN • December 2019

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Jewellery News

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• PlatAfrica 2019 winners announced • GIA’s Diamond Origin Report: traceability based on science • Shimansky shines at Salon Art & Design Fair • De Beers lowers global diamond jewellery estimate

Sandton, Fourways, Mall of Africa, Eastgate, Menlyn, Ballito Junction, Galleria, Pavillion, Gateway, V&A, Canal Walk Tel: +27 11 911 1200, Shop.swatch.com

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CONTACT KEAGAN GREEN Tel: +27 11 268 6544 | Mobile: +27 82 926 5415 Email: keagan@afisia.co.za | Website: www.afisia.com / www.afisia.co.za

Editor: Adri Viviers Tel: +27 (0)11 883-4627 Cell: 084-261-1805 E-mail: adri@isikhova.co.za Publisher: Imraan Mahomed E-mail: imraanm@isikhova.co.za Watch Editor: Alice Weil Tel: +27 (0)11 880-1680 Cell: 083-266-9182 E-mail: aweil@mweb.co.za

c ntents

Advertising Sales: Ian Starnes Cell: 082-052-8428 E-mail: ian@isikhova.co.za

32. JEWELLERY DESIGN

9. NEWS • Christie’s and De Beers Group present Rare Treasures of the Earth

Advertising Sales Representative (India): Bhupal Potdar Cell: 91-982-115-1035 Email: bhupalpotdar@gmail.com

Shimansky shines at Salon Art & Design Fair in New York

• GIA to roll out gem guide across Africa • Couples prefer personalisation over size

Advertising Sales Representative (Hong Kong): Maud Errera E-mail: maud@lni.com.hk

• SSEF’s automated small synthetic diamond screener ASDI achieves 100% accuracy

Designer: Joanne Brook E-mail: joanne@isikhova.co.za

35. SCENE AROUND Glitz and glamour for Plat Africa 2019 gala evening

Copy Editor: Anne Phillips Subscriptions & Accounts: Thuli Majola Tel: +27 (0)11 883-4627 Fax: +27 (0)11 783-2677 E-mail: thuli@isikhova.co.za

14. JEWELLERY DESIGN

Distribution: Ruth Dlamini and Direct Marketing Solution

Anglo American Platinum announces PlatAfrica 2019 winners

SA Jewellery News is published by: Isikhova Media (Pty) Ltd, Physical: 10th Floor, Metal Box building, 25 Owl Street, Milpark, South Africa.

Postal: PO Box 651793, Benmore, 2010, Johannesburg, South Africa.

26. PLATINUM The river of platinum

37. THE PERFORMANCE CATALYST Nigel Smith, a results catalyst, aims to help people and businesses achieve goals by equipping them to innovate, relate, sell, coach and lead.

Website: www.isikhova.co.za

Banking Details: Isikhova Media (Pty) Ltd Bank: Standard Bank, Sandton, South Africa Branch Code: 01-92-05 Current Account Number: 3319 867 44

38. DIAMONDS De Beers lowers global diamond jewellery estimate

40. LITTLE GEMS 29. BRAND MANAGEMENT

The cutting edge

• Chopard’s Happy Sport Oval • Frederique Constant’s Slimline Manufacture Power Reserve

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GIA Diamond Origin Report: traceability based on science

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The views expressed in this publication are not necessarily those of the owners, the Jewellery Council of South Africa, the Diamond Dealers’ Club of South Africa, its members, the publisher or its agents. While every effort has been made to ensure the accuracy of its contents, neither the owners, the Jewellery Council of South Africa, the Diamond Dealers’ Club of South Africa, the editor nor the publisher can be held responsible for any omissions or errors; or for any misfortune, injury or damages which may arise therefrom. The same applies to all advertising. SA Jewellery News© 2019. All rights reserved. No part of this magazine may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage retrieval system, without prior written permission from the publishers. ISSN 1817-5333.

30. DIAMONDS

y industry fo ller r9 we

Official Journal of the Jewellery Council of South Africa and the Diamond Dealers’ Club of South Africa.

Websites: www.jewellery.org.za www.ddcsa.co.za

DECEMBER 2019

On the cover The winners of the 20th annual PlatAfrica 2019 Jewellery Design and Manufacturing Competition were announced on 23 October during a stylish gala evening hosted by Anglo American Platinum, presented in association with Platinum Guild International and Metal Concentrators. For more information,

• PlatAfrica 2019 winners announced • GIA’s Diamond Origin Report: traceability based on science • Shimansky shines at Salon Art & Design Fair • De Beers lowers global diamond-jewellery estimate

visit: https://platafrica2019.news24.com/

SA JEWELLERY NEWS – DECEMBER 2019

ED'S NOTE

Editor's I STRUGGLE WITH CHANGE A LOT, EVEN though I know that it is an unavoidable constant, especially in our working lives.

People leave a company and new ones join, management changes, policies change and our jobs and roles change. Our company recently went through a number of changes: our management changed, we moved offices, we had a lot of new people join our team and even our company name changed slightly (from Isikhova Publishing & Communications to Isikhova Media). Like many others, I fear change – it makes me feel uncertain and insecure about the future. How do we know which changes are or aren’t for the better?

I’ve also been thinking about how much our industry has changed since I first joined Isikhova 15 years ago. These have been changes filtering down from government to legislation, impacting us. And as changes have happened in our economy, our business models have changed too.

I recently read an article by Nick Tasker in the Harvard Business Review about ways to adapt to change. He stresses that it is better to talk about the problems, rather than the feelings one has about them. “One of the most common myths of coping with unwanted changes is the idea that we can ‘work through’

our anger, fears and frustrations by talking about them a lot. This isn’t always the case. In fact, research shows that actively and repeatedly broadcasting negative emotions hinders our natural adaptation processes.

“That’s not to say you should just ‘suck it up’ or ignore your troubles. Instead, call out your anxiety or your anger at the outset of a disorientating change so that you’re aware of how it might distort your thinking or disrupt your relationships. Then look for practical advice for what to do next. By doing so, you’ll zero in on the problems you can solve, instead of lamenting the ones you can’t.” Wise words.

I’m also trying to focus on what is really important to me: my family, friends and religious convictions. Reminding myself that these are the real pillars of my life helps make the immediate “threat” seem smaller.

I’ve also learnt to accept that the past is the past, let it go and focus on the future. Tasker writes that “if we fixate on the limitations of a specific change, we inevitably succumb to worry, bitterness and despair. Instead, we should choose to accept the fact that change happens and employ our freedom to decide what to do next.”

Finally – and what I probably struggle with most – is learning not to expect stability. In the late 1970s, Salvatore Maddi – a researcher at the University of Chicago – began studying employees at Illinois Bell. Soon afterwards, the American telephone industry was deregulated and the company underwent many changes.

Some managers had trouble coping. Others thrived. What separated the two groups? The adaptive leaders chose to view all changes, whether wanted or unwanted, as an expected part of human experience, rather than as a tragedy striking only unlucky victims. Instead of feeling personally attacked by ignorant leaders, evil lawmakers or an unfair universe, they remained engaged with their work and spotted opportunities to fix long-standing problems with customer service and tweak antiquated pricing structures. In contrast, Maddi found that the struggling leaders were consumed by thoughts of “the good old days”.

They spent their energy trying to figure out why their luck had suddenly turned sour. They tried to bounce back to a time and place that no longer existed.

In Genesis, we read the story of Lot’s wife, who was warned not to look back at the city she’d known and lived in for so long, as she and her husband fled Sodom. Unable to resist doing so, she did indeed look back – and was turned to salt. The price we pay for remaining attached to the past is a bitter one. Far better to keep our eyes on what lies ahead and invest our energies in creating a good future, rather than lamenting.

We can never be free of change. However, we are free to decide how we respond to it.

Enjoy this issue!

Adri Viviers VAT)

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MBER

2019

MESSAGE FROM THE CEO

Message from the CEO of the Jewellery Council of SA Mediation, arbitration and cautionary notices As a member of the Jewellery Council, you are entitled to utilise the mediation and arbitration services in instances where disputes arise. This facility has been offered to members relating to outstanding debts and other disagreements.

The idea has been to allow members to reach amicable solutions without spending huge amounts on legal fees.

The role is one of mediation, which is conducted in-house within the council.

However, in certain instances, this may escalate to arbitration in which we involve the Arbitration Committee and legal counsel.

Arbitration proceedings are subject to the Arbitration Act and any amendments thereof.

The Arbitration Committee makes use of professionals to assist them in the course of their duties and will make a suitable award on the matter, as well as the costs. Such award may also become legally binding through application to the High Court.

In the event that a member institutes legal proceedings against another member,

such litigation may only take place once the arbitration proceedings have been followed and finalised.

Non-members may participate in mediations and arbitrations instituted against them by consenting to the provisions of the council’s Memorandum of Incorporation.

In certain instances, when disputes arise relating to outstanding debts, members request the council to circulate cautionary notices against the defaulting party. Although this system of sending out cautionary notices has been in operation for many years, the council has received legal advice to desist from this practice. Our attorney has advised that naming and shaming is a dangerous area that one should stay away from. The moment the council does that, it would be paramount to finding another party guilty of certain conduct.

If it is done incorrectly or unlawfully, the council may be exposed to damages claims. Only once we have prima facie evidence will we be entitled to circulate cautionary notices.

When the issue of dispute relates purely to failure to pay for goods or services, the council will continue to mediate to a certain point,

after which members are advised to pursue such matters through traditional legal channels such as through litigation in the Civil Courts. It is not the function of the board to act as debt collectors and it does not have the capacity to engage in such endeavours.

The council has always functioned as a professional organisation which continues to offer benefits that members will find valuable.

As such, we invite you to make use of them.

Lorna Lloyd Chief Executive OfďŹ cer

NEWS

RARE TREASURES OF THE EARTH From 8-12 November 2019, Christie’s – in partnership with the De Beers Group – presented Rare Treasures of the Earth, a museum-quality public exhibition uncovering the mystery of nature’s most beautiful gems. Featuring spectacular fancy coloured diamonds alongside rare rocks and minerals, the exhibition showcased interactive demonstrations from the De Beers Group Institute of Diamonds, tracing the stone’s journey from deep within the earth to a captivating jewel.

Focusing on the science behind the diamonds, experts from the De Beers Group were on hand to educate visitors on what gives these rare diamonds their unique colours and the rigorous criteria a diamond must meet to be classified as a fancy colour. They also shared the intricate process involved when polishing a fancy coloured diamond and provided specialist grading demonstrations from the institute’s team of specially trained graders.

Mei Giam, Christie’s Jewellery Private Sales Director, said: “The coloured diamond is the world’s most valuable gemstone, an exclusive beauty revered for its rarity and individual colour expression. With a shared dedication to scholarship and expertise, we’re delighted to collaborate with the De Beers Group on our Private Sales Jewellery event, Rare Treasures of the Earth, exploring the origin, rarity and value of these extraordinary gemstones. The exhibition represents our annual public-facing

celebration of jewels, sharing insights into the stones at the heart of the jewellery we wear, admire and aspire to own.”

Jonathan Kendall, President of the De Beers Group Institute of Diamonds said, “Christie’s and the De Beers Group share a passion for the miracles of nature that are diamonds and how they play a central role in the luxury world. With the De Beers Group’s diamond knowledge based on a legacy of more than 100 years at the vanguard of the industry, our leading Institute of Diamonds’ grading reports provide Christie’s collectors with the assurance and insight they seek about these exquisite gemstones. The Rare Treasures of the Earth exhibition represents a perfect partnership where both the De Beers Group and Christie’s can bring their expertise to bear and we look forward to developing our close relationship even further.”

Leading the exhibition was the Cullinan Dream, a 24,18ct Fancy Intense Blue VS2 rectangular diamond drawn from the Cullinan mine in SA, formerly known as the Premier mine. The combination of its size, colour and extreme rarity makes the Cullinan Dream a truly exceptional diamond, remarkable for its pure and consistently strong blue colour throughout every facet. Further highlights included superb coloured stones such as a fancy vivid pinkish-purple diamond of 2,01ct, a fancy purplish-red diamond of 1,09ct and a fancy vivid bluish-green diamond of 1,42ct.

Complementing the coloured diamonds in the exhibition were a vast selection of unusual minerals and crystals sourced from the furthest corners of the globe by Dale Rogers Ammonite, London’s premier crystal gallery. Breathtaking examples included jade, labradorite, quartz and agate. Together these geological wonders offer an experience of nature’s alchemy in an exhibition paying tribute to the earth’s treasury and legacy to mankind.

This selling exhibition was curated by Christie’s Jewellery Private Sales and the Natural History Department, demonstrating the striking synergy between these rare crystals and exceptional jewels and marking the first time such a collaboration has taken place at the auction house.

Christie’s Jewellery Private Sales is a bespoke service dedicated to clients who wish to acquire jewels privately outside the auction calendar. Building upon Christie’s longstanding tradition, with a global presence in over 40 countries, Private Sales provides privileged access to rare and exquisite gems through an extensive network of collectors and professionals around the world.

The Science & Natural History sales held annually at Christie’s London encompass a wide range of objets and artefacts, including billion-year-old fossils and astrolabes, representing some of the most important scientific discoveries of the modern world.

NEWS

GIA TO ROLL OUT GEM GUIDE ACROSS AFRICA The Gemological Institute of America (GIA) has committed US$1,3 million to deploying its free gemmology guide for artisanal miners across multiple countries in Africa.

The kit will be available to 10 000 miners over four years in Madagascar, Nigeria, Rwanda and Zambia, says GIA President and CEO Susan Jacques. It follows a successful pilot project in Tanzania, which the institute commenced alongside international development organisation Pact in 2016.

The guide, which is designed to deliver free, basic gemmological and market knowledge in

regions where gemstone mining takes place, started as an illustrated, waterproof booklet in English before being translated into Tanzanian Kiswahili. It is accompanied by a durable plastic tray which can be used to sort gems and conduct basic gemmological evaluations.

Earlier this year, the GIA spent two weeks training more than 1 000 Tanzanian artisanal miners in how to use the guide and tray to evaluate the quality of the rough they mine.

The expansion of the project, which Jacques unveiled during the ICA Congress in Bangkok, signals a “tremendous step forward” for both

the GIA and Pact.

“We know that this investment will bring an invaluable benefit to miners, their families and the communities in which they live,” says Jacques.

“We found that for every dollar invested, there was a 12-fold social return that will last years into the future,” added Cristina Villegas, Technical Programme Manager for Pact’s Mines to Markets programme. “With their new knowledge, miners improve their income, send their children to school and invest in their mines and communities.” – Rapaport

SSEF’S ASDI ACHIEVES 100% ACCURACY The Automated Spectral Diamond Inspection (ASDI) device, an automated, small synthetic diamond screener that was first released in 2014 by the Swiss Gemmological Institute SSEF, has been evaluated by the ASSURE Programme of the Diamond Producers’ Association (DPA) and proved to be one of the few instruments to have successfully passed 100% of the tests administered. This means that all stones categorised by the instrument as “diamonds” were indeed natural diamonds, all diamond simulants were correctly sorted out and all synthetic diamonds were correctly referred for definitive testing.

The ASDI was built after a five-year R&D programme at SSEF aimed at protecting the Swiss watch and jewellery industry from being contaminated by synthetic diamonds, whose true origin is undisclosed. Every month, the industry consumes several million colourless small round polished diamonds, also known as melee.

When it was introduced in 2014, the ASDI

was the very first machine to automatically and efficiently screen large batches of colourless diamonds. Today, more than 20 different devices – automated and non-automated – are being offered by different producers, confirming that the pioneering vision of SSEF was, in fact, a necessity for the diamond trade.

The proliferation of synthetic diamond screening instruments in the market created a degree of confusion, particularly concerning each one’s capability, reliability and accuracy.

To address the issue, in March 2019 the DPA, which is a body representing the world’s seven leading diamond mining companies, launched the ASSURE Programme, an independent and international testing programme that evaluates synthetic diamond screening instruments being offered in the market and openly provides all test results on a dedicated website.

As part of the programme, the ASDI system was subject to rigorous testing in May 2019 by an independent expert, UL Verification Services Inc, according to a very strict and standardised

protocol. The testing sample was composed of 1 000 natural diamonds, 200 diamond simulants and 200 synthetic diamonds, including stones created through HPHT and CVD, some of which were especially processed for the procedure.

Although the ASDI can test stones as small as 0,85 mm (0,002ct), the test sample was only composed of stones with a diameter ranging from 1,0-3,8 mm.

As the final test report indicates, the ASDI passed all tests with flying colours, unfailingly screening out every synthetic diamond and diamond simulant, operating at a speed of more than 6 500 stones per hour. The detailed report is available on the DPA’s ASSURE Programme website.

“The outstanding results confirm the ASDI’s status as the preferred solution for fast and extremely reliable screening of colourless diamond melee, especially in a manufacturing environment such as the Swiss watch and jewellery industry,” says Jean-Pierre Chalain, Director of SSEF’s Diamond Department.

COUPLES PREFER PERSONALISATION OVER SIZE Couples are prioritising personalisation and overall cost and quality rather than size when buying engagement rings, according to a survey by wedding-planning resource The Knot.

Some 45% of engagement rings contain custom-designed elements, the publication noted in a report based on a survey of over 21 000 engaged or recently married couples.

While colourless diamonds were still the most popular centre stones, featuring in 83% of rings, other precious stones are gaining momentum and one in 10 couples opted for materials such as moissanite or sapphire.

“Couples are tossing and twisting engage-

10

ment traditions like never before, whether choosing to propose on top of a mountain in private or at the location of their first date in front of family and friends,” says Kristen Maxwell Cooper, The Knot’s Editor.

The national average outlay for an engagement ring rose 4% to US$5 900, up from US$5 680 in The Knot’s previous report in February. However, one in three proposers shelled out US$1 000-US$4 000. Almost eight in 10 set a budget, with 80% of them deciding the limit themselves and 20% discussing it with their partner.

Roughly 50% of engagement rings con-

tained 1-2ct in total, though one in four exceeded 2ct. Some 47% selected a round stone, with oval and princess cuts following with 14% each. Cushions represented 9% of the market, while 5% picked pear-shaped stones.

In addition, 15% of recipients of an engagement proposal preferred a lab-grown stone, “potentially as a result of a more ethical sourcing method”, The Knot added.

Couples also showed a partiality for traditional purchasing methods, with 40% using a local independent jewellery retailer, while 30% bought from a national or regional jewellery chain. – Rapaport

SA JEWELLERY NEWS – DECEMBER 2019

DISTRIBUTED BY REALGOLD/JEWELMARK. CALL NOW TO BECOME A STOCKIST OF THIS AMAZING AFFORDABLE BRAND “FOREVER LOVE MOISSANITE”.

Contact Mike: 082 891 8066 or Michele: 082 338 8853

Scan here to s ee how our roots run deep in South Afri ca.

3246_AngloAmerican_Bheki (297x210).indd 1

2019/11/11 12:03

MARKETS

Business barometer A monthly survey conducted by SAJN among industry players (small and large) on a national basis.

OCTOBER 2019 VS OCTOBER 2018

WHOLESALERS

DIAMOND DEALERS

General sales compared with last year this time

RETAILERS 50% BETTER

Best-selling diamond size

0%

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General sales compared with last year this time

0%

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WORSE

Foot traffic

General sales compared with last year this time

Watch sales

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bridal

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12%

83%

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33,3%

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Consumption of gold compared with last year this time

Consumption of platinum compared with last year this time

Consumption of silver compared with last year this time

SA JEWELLERY NEWS – DECEMBER 2019

Source: Bain & Company

(Above): Personal luxury and diamond jewellery spending remained stable relative to GDP over the past fi ve years.

13

JEWELLERY DESIGN

Anglo American Platinum announced the winners of the 20th annual PlatAfrica jewellery design and manufacturing competition on 23 October during a prestigious awards ceremony at the Inanda Club in Johannesburg. The competition was presented in association with Platinum Guild International (PGI) India and Metal Concentrators.

PLATAFRICA HAS LONG BEEN ONE OF Anglo American Platinum’s flagship market development initiatives. The competition aims to promote innovation and technical expertise in platinum jewellery design and manufacturing in SA. Platinum is the rarest, purest and strongest jewellery metal and requires greater craftsmanship to work with than other precious metals such as gold and silver.

Speaking at the awards ceremony, Chris Griffith, CEO of Anglo American Platinum, said: “Over the past 20 years, the PlatAfrica awards have enabled hundreds of jewellers in SA to work with platinum and develop their skills for the local and international markets. This has created local beneficiation and job creation and, for some, it’s served as a launch platform to enter the international market. Today a PlatAfrica award is considered the ultimate accolade in platinum jewellery design on the continent.”

This year, 153 entries were received and the judges selected 16 finalists across the professional and student/apprentice categories.

The theme was “Your love has gone platinum – celebrate the milestones in this journey of love”. Entrants had to design a statement piece for an urban customer aged 20-40 celebrating a milestone occasion.

The winners in the professional category are: Esther Boshoff and Team from Beaudell Designs were the overall winners in this category for their exquisite neckpiece containing platinum, diamonds in a pavé setting and four 9ct yellow gold chains.

Aimee Bredenkamp from Prins & Prins Diamonds was the runner-up with a platinum armpiece, while Chris Janse van Rensburg from Studio C Manufacturing Jewellers placed third with a platinum ring featuring tanzanites, rhodolites and diamonds. Mandlenkosi Moses None of Mo Nkosi & Nnete Jewellery Manufacturers placed fourth with a platinum bracelet.

Anglo American Platinum ann

(Left, from top): Runner-up (Professional Category): Aimee Bredenkamp (Prins & Prins Diamonds) and third place (Professional Category): Chris Janse van Rensburg (Studio C Manufacturing Jewellers).

(Above): Runner-up (Student and Apprentice Category): Christina Toros (Prins & Prins Diamonds).

(Right): Third place (Student and Apprentice Category): Anke van der Linden (Durban University of Technology).

14

SA JEWELLERY NEWS – DECEMBER 2019

JEWELLERY DESIGN

(Left): First place (Professional Category): Esther Boshoff and Team (Beaudell Designs).

(Below): First place (Student and Apprentice Category): Mfundo Nondyola (Cape Peninsula University of Technology).

announces PlatAfrica 2019 winners

(Far left): Fourth place (Professional Category): Mandlenkosi Moses None (Mo Nkosi & Nnete Jewellery Manufacturers); joint fourth place (Student and Apprentice Category): Jane Schoeman (Prins & Prins Diamonds) and Nomsa Mpinga (The Platinum Incubator).

The winners in the student/apprentice category are: Mfundo Nondyola from the Cape Peninsula University of Technology was the overall winner in this category for his stylish neckpiece of platinum, leather, fine silver and sterling silver.

Christina Toros from Prins & Prins Diamonds was the runner-up for her pair of platinum earrings featuring glass marble. Anke van der Linden of the Durban University of Technology placed third for her platinum brooch. Jane

SA JEWELLERY NEWS – DECEMBER 2019

Schoeman from Stellenbosch University and The Platinum Incubator’s Nomsa Mpinga were jointly ranked fourth.

In addition to receiving prize money, the winners and runners-up of both categories will be travelling to India to participate in the design sourcing process for the prestigious Evara Platinum brand, which was developed by PGI India for the Indian market, the fastest-growing platinum jewellery market in the world.

Nihal Shah and Thembi Maduna won this

year’s “People’s Choice” award with their ring of platinum and cubic zirconia. The award, which is sponsored by Metal Concentrators, goes to the finalist with the highest number of votes from the public on Anglo American’s Facebook page.

15

BYL 210 mm(w) x 297 mm(h) Website Stockist.pdf

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2019/11/22

8:07 AM

Monthly educational insert A SA Jewellery News and Jewellery Council of South Africa initiative

Written by Dr PetrĂŠ Prins, Gems and Jewellery: The South African Handbook is an introduction to gemstones, jewellery and store management.

The following is an extract from Gems and Jewellery: The South African Handbook

After two years postgraduate research at Cambridge University, UK, and ten years as senior lecturer in geochemistry and mineralogy at the University of Stellenbosch, South Africa, Dr Prins, in 1982, started Prins & Prins Diamonds, a leading supplier of diamonds, gemstones and fine jewellery in Cape Town.

ISSUE 3

ISSUE 3 SUCCESSFUL START-UP AND MANAGEMENT GUIDELINES • How to buy or sell a store

• Signing a lease

• Designing store layout

• Window displays that work

HOW TO BUY OR SELL A STORE Buying or selling a store is undoubtedly one of the most important business decisions you will ever make. Most jewellers do not realise how complex this process is and a store is often undersold or tax benefits ignored. The information below should help you get the best possible deal.

• Buyers Evaluate your current business and prepare a business plan for the future. This will identify the type of market you want to capture and the type of store you need to buy.

Not the way to do it.

REASONS FOR THE DEAL •

•

Sellers - retirement, declining health, economic factors, changing neighbourhood, competition, no family to continue, etc.

Buyers - expansion needs, changes in client profile or customer traffic, starting a new business (which is less expensive than starting from scratch), etc.

TIMING AND PREPARATION • Sellers The worst time to sell is after a bad year, during an economic downturn or just before retiring. If you are not forced to sell, you need two to three years to consciously prepare your business for sale. During this period, you must prepare the required documents, clean out dated stock, improve your store’s appearance and security systems. Most jewellers often understate inventory values and depress earnings with write-offs of fringe benefits, large owner’s salaries, one-time profits, etc, to keep taxes lower. The book value of your store could therefore be significantly less than its real value. Most impor tant is to boost repor ted earnings by taking fewer write-offs or to ask your accountant to prepare adjusted statements over a few years (for the prospective buyer) that show your real earning strength without the write-offs, fringe benefits, etc.

Assess your financial ability to make a purchase. Prepare cash flow budgets and determine whether you can afford the expansion. Determine the cost of starting from scratch compared with the cost of acquisition. Get an expert to help you with tax incentives. If you cannot improve on a store’s track record, then do not buy it.

FINDING A BUYER • Sellers Potential buyers are family members, long-employed staff, other independent jewellers, chain stores looking for expansion or young graduates. Business brokers will sell your store at a fee, while liquidators should be your last resort.

Do not publicise your store for sale too much as this may negatively affect client suppor t and staff morale. Local sales reps, friends, your banker and accountant may know of a potential buyer. Adver tisements in trade journals

SUCCESSFUL START-UP AND MANAGEMENT GUIDELINES

could produce a buyer from outside your area. You could also sell your leasehold, fixtures and stock separately.

FINDING A SELLER Jewellers without heirs and those near retirement should be targeted. Even your employer may be a potential seller. Unproductive or bankrupt stores will be on the books of business brokers and trade journals will advertise stores for sale.

• Use consultants in buying or selling Do not wait until the last moment to employ a lawyer and accountant, or even a tax consultant. They should be present at all negotiations and will cer tainly be wor th their fees in tax savings, providing a well drawn-up agreement and limiting future legal liabilities. They can be used as intermediaries in a transaction with family members or to mediate differences concerning the value of the store.

If you are buying a building, you may need an engineer to estimate the cost of renovations.

ESTABLISHING THE RIGHT PRICE The simplest way to find a store’s value is to use its book value, ie, the worth of its assets minus liabilities. There is, however, often more to a store than just its book value.

Both seller and buyer should investigate and put a value to the following issues during negotiations: •

Earnings projections and rate of stock turn based on financial statements.

•

The value and sale prices of similar stores in the area over the past few years.

•

Profit potential, based on projected future earnings, customer traffic, neighbourhood changes, etc.

•

Capitalisation of earnings, ie, a projection of future earnings growth. An independent accountant’s view of the multiplication factor should be sought. This could vary between five and 15 times, depending on the store’s past and current performance.

•

Expertise of staff: A prospective buyer may put a high value on the retention of expertise in the business he is buying. The seller, however, cannot guarantee that his staff will be happy under new management and should not put a high value on them.

• Goodwill. This is made up of the store’s image, reputation, client support and the value of its trade name and brands.

•

Tax implications in establishing a price. In any transaction, the tax implications are usually not the same for the seller as for the buyer. In setting a final price, the seller normally wants to allocate as much as possible to items of a capital gain nature, with its lower tax base, rather than to stock.

The buyer, however, prefers a higher value set on stock than on items such as goodwill, as he can write the stock purchase price off as part of the cost of goods when sold.

The seller prefers to put a high value on goodwill which will be regarded as a capital gain item. The buyer cannot deduct goodwill, so he puts a low value on it.

•

Non-competitive clauses: The seller obviously puts a low value on this because of its restriction and because the receiver may consider it income.

The buyer usually wants to allocate a high value to this, as he can deduct it. If you retire, such a clause is of little use to you, but will give the buyer some peace of mind.

• The value of the lease (key money) is considered of a

capital nature and is highly valued by the seller.The buyer

also prefers a high value on the remaining lease because

he can write it off.

•

Furthermore, the nature of the business, whether it is a limited company, close corporation, a partnership or sole proprietor, will have different tax implications for the buyer and seller. The service of a tax consultant is essential to negotiate “the best tax benefits package” to both parties.

Please note: If the owner refuses to disclose his books, walk away.

PAYMENT OPTIONS Stores are normally purchased for cash (which is simpler and carries fewer legal and tax implications), by instalment payments or a combination of the two.

Instalment, also called deferred payment, is the method most often used. It does, however, have implications which are different for the seller and for the buyer.

• Seller’s view

Deferred payment provides a guaranteed income to the seller and spreads his tax obligation over a longer period.

However, default on such payments is a risk which can be limited by:

(i) Ensuring that the sales contract includes a default

clause specifying that the business reverts to you if

ISSUE 3

(ii)

the new owner cannot make future payments; Ensuring that your agreement is with the principals of the business buying your store and not with the legal entity, ie, the buying company or close corporation;

(iii) Demanding some security to protect your pay ments until the debt is paid.

• Buyer’s view

Deferred payment enables the buyer to devote much of his cash to his new business and allows him to write off future payments as legitimate tax deductions.

If the sales agreement contains a non-competitive clause, it should also allow the buyer to make deductions from future payments if the seller opens a competing business.

maintained - especially key personnel. Give them the option to leave, but inform them that there will be no immediate changes. Explain your employee benefits and future plans for the store. Do not be secretive - it will make staff suspicious. However, if you plan to replace the staff, you need to know about all employee-related obligations such as contracts, pension and holiday schemes. Such employee-related liabilities could affect your costs and even jeopardise the purchase.

THE FINAL CONTRACT • Tips for the seller Your contract must include a default clause.

You must give notice to creditors that assets are being sold.

If the buyer asks you to stay on as an advisor, make sure this is included in the contract with payment and your duties specified.

• Tips for the buyer Ensure that the contract and your payments are conditional to: Your receiving clear title to the store.

There being no hidden liabilities or claims against the business.

Your obtaining a satisfactory lease for the shop at the same rate and duration.

Buyers and sellers have different needs and expectations. Identify these and negotiate until both feel like winners.

EMPLOYEE ISSUES The correct handling of employee issues is important to the seller, but more so to the new owner.

• The seller He should immediately inform his staff once he has a serious buyer and inform them of the implications of a takeover. If the new owner refuses to keep the staff, inform them early enough so that they can look for alternative employment. As a seller, you have a responsibility towards long-serving staff and should negotiate their job security as part of the sales agreement.

• The buyer If you plan to keep the staff, their morale needs to be

The shop’s compliance with all safety and building regulations.

A bail-out clause which allows you to cancel the agreement if the former owner’s representations were false and misleading.

A non-competitive clause, so that the former owner cannot open a competing shop within a certain area and time period.

A clause preventing the former owner to deplete or change stock or harm the store’s goodwill between signing and final takeover.

Allow sufficient time between signing and takeover to do a final stock take.

If you buy a family business, make sure that relatives do not have a claim on future earnings.

Ensure that all legal contracts, title deeds, insurance policies and leases have been changed to reflect the new ownership.

Inform all suppliers and important clients of the new ownership.

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SUCCESSFUL START-UP AND MANAGEMENT GUIDELINES

SIGNING A LEASE

YOUR FIRST FINANCIAL COMMITMENT Once you have identified the type of product and service you wish to trade in, you need premises to trade from. Retail leases are complicated and expensive and can bind you to conditions that generate unexpected costs.

Do not accept the lease as first offered instead, negotiate on those clauses that seem onerous and ask for alternative wording of clauses you dispute. Jewellers often have an advantage during negotiations as they provide prestige to a mall and a high profit margin to the landlord.

It would be wise to employ professionals such as a real estate lawyer, architect and your banker to advise you on the potential pitfalls in the lease.

specific breakpoint. For example, if your lease requires an annual rent of R350 000 and at a 5% premium, your breakpoint will be R7 million in annual sales or R58 333 in monthly sales. You will have to pay, over and above your normal rent, 5% of that por tion of your turnover which exceeds the breaking point. In negotiations, ask for a much higher breaking point.

Think before you sign.

Also, compare rates in your area and talk to other jewellers about their leases. Insist that your lease includes an abstract of the key points, such as duration and renewal options, monthly rental, insurance limits, remodelling allowances, agreed rates, common area maintenance, parking fees, etc.

CLAUSES TO SCRUTINISE AND NEGOTIATE A landlord often tries to pass all his maintenance costs on to his tenants. These costs are called “Common Area Maintenance (CAM)” and could cost you much more than expected if you do not clarify issues such as: how CAM charges are apportioned amongst tenants. Who is paying for the costs when other tenants go bankrupt or move before their leases expires? Insist on a copy of the CAM budget and the average cost per square metre. Watch out for a clause saying CAM charges “include, but are not limited to, various operational expenses” - rather insist on a clause that specifies “expenses that are excluded”.

Expenses such as structural repairs, depreciation of mall equipment or other fees that reduce the landlord’s cost of doing business, etc, should be specified and excluded.

Insist that increases in CAM cost are capped and may not increase by more than 50% over the lease period.

Your lease should also specify what sales items are not included in calculating annual turnover, such as: non-profit items to staff, or low-profit, big-ticket items to insurance companies, sales to the trade or sales made over the telephone, Internet or through a catalogue. Try to exclude these items from your lease.

Leases normally specify trading hours. Make sure that you do not have to remain open while other stores are not.

Include a clause which states that your rental will be adjusted if the mall is not 100% occupied or if an anchor tenant leaves.

Mall leases often prevent you from opening another store within a certain radius from your first one. If you agree to this restriction, ask for a reduction in CAM costs.

Make sure that you have a clause which clearly defines a fair and proper dispute resolution method.

Check that the square metres you pay for are the square metres you get.

Finally, realise that a prime position will produce prime results for which you have to pay a prime rental - do not move to a less desirable position in order to save rent.

Escalator clauses should cap the expenses that your landlord may incur in their operation.

In addition to the normal rent, your landlord will ask you to pay 5-10% of sales, or a percentage of rent, above a

Ensure that all parties have signed and initialled all pages.

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ISSUE 3

DESIGNING STORE LAYOUT Designing an effective jewellery store requires knowing who you are and hiring the right firm to do the work.

The primary goal in jewellery store design and layout is to: • • • •

Attract customers to the store.

Present the merchandise.

Create a user-friendly space for your staff.

The bottom line - to sell more merchandise.

In briefing your architect or store designer, you need to formulate:

• Who you are In other words, your brand and the image you wish to present. A store’s name and its perceived image should be complementary. Is your image conservative, avant garde, understated, gaudy and overstated, high-tech, ultramodern, fun, etc? This depends on your client profile. If your client wears a couple of necklaces and five rings, understated will make no impression on her. Remember that you cannot project an upmarket image from the outside and, once the client enters, serve him in jeans and offer him cheap coffee. From the clothing on your staff to the magazines on the coffee table to the background music, everything should project a similar image.

•

The type of customer you serve

Target a niche market and do not try to sell everything to everyone. Analyse your existing clients and those you wish to attract in future.

•

Your in-house operational methods

Do you want a counter between the salesperson and the client? Do you want privacy with your client? How much merchandise is on display and how much in storage drawers? How should you light it? How large is the admin area? Do you want a goldsmith or repair department sitting in your window or placed in a back office? Your shop layout must also provide proper security to merchandise, reduce traffic flow and make it as easy as possible for staff to sell merchandise.

•

Your budget

Remember, you will probably spend 30% more than the original estimate.

THE MAGIC COMPONENT Jewellers often wonder why one shop is successful and another not. The two shops may be serving the same clientele, carrying the same merchandise with a similar pricing structure, etc, yet the one does better than the other.

Have you ever walked into a shop and immediately felt that there was nothing you needed or wanted to buy, while you often go back to another shop and buy more than you want? What is the magic that the one store has and the other not? Without doubt, it is the products on offer, the way they are presented and the attitude of the sales staff. But beyond these fundamentals, there is something in the one shop that urges you to buy, while the other one leaves you cold. It is called atmosphere.

This intangible element is what inspires the client to linger and browse through the merchandise. It has to do with the “welcome feel” which the client experiences, the spotlessly clean environment, the subtle lighting, the interesting displays, the quality of music and the expertise of staff. All of these factors need to gel, and become more than the sum of the individual parts, in order to produce a “wow” feeling. Next time you visit your favourite shop, try to identify the magic parameters that make you go back.

Now bring these magic components into the design and layout of your own store, and, voila, your clients will not only be back, but will talk about the unique experience of shopping with you.

In today’s competitive market, you need window displays that attract customers, reinforce your image and set you apart. You do not need to be an artist to create innovative, eye-catching displays, but you do need a systematic approach in showcase design to find out what works for you. Here is how to give your showcases the “wow” factor.

IDENTIFY THE NEEDS OF YOUR CLIENTELE Is your customer a fashion-conscious shopper looking for the latest designs? Or is he a less confident buyer looking for advice? Are the bulk of your customers conservative, knowledgeable or do you specialise in gifts or engagement rings? Knowing this will help in designing displays that “speak” to your customers.

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SUCCESSFUL START-UP AND MANAGEMENT GUIDELINES

WINDOW DISPLAYS THAT WORK YOUR SILENT SALES PARTNER

THE BACKGROUND MATERIAL Choose a neutral colour for display materials to ensure that your jewellery stands out. If possible, repeat in your showcases the colours used in your store décor, advertising and packaging.

Choose a material with a luxurious feel, but which does not compete with your jewellery. Ultra suede and velvet are popular, while matte suede materials cannot be cleaned and should be avoided. Cover both stands and floorboards with the same material to provide a uniform look.

THE LIGHTING A mix of incandescent and fluorescent light always works best.

•

Fluorescent lights have more blue wavelengths which enhance the colour of sapphires, but make rubies look purple. These lights range from “cool white” and “warm white” to “daylight”. Each type induces a different atmosphere to the showcase. An early experiment with the various types of lights will save you money in the long run. The modern energy-saving fluorescent bulbs will have a dramatic impact on your energy bill.

•

Incandescent lights produce more red and yellow wavelengths under which rubies, red garnets and amethysts will look best. Remember that the heat from incandescent light will dry the air, which may damage pearls and opals. Always keep a small bowl of water in the pearl and opal showcases. A spotlight may reveal the banded nature of the inner bead of cultured pearls which indicates that the pearl has a very thin nacre layer.

•

Energy-efficient quartz halogen lamps also come in various tints and sizes and have become the most popular lighting for jewellery showcases.

very effective. Try not to use ring trays or boxes in your displays. Remember that gold jewellery and pearls will be damaged if they are draped over rocks and pebbles.

THE DISPLAY Exper ts believe that you should display prices in your windows. Not on all items, however. Include an attractive card that indicates the price range for a group of items and/or describes the type of gemstone in the jewellery on display.

Do not crowd your displays if you have an upmarket image.

Rather group similar items such as solitaire rings, dress rings, pavéd rings, coloured stone rings, a selection of diamond studs, gold chains, etc.

Do not display more than one of a kind in a showcase. Rather keep similar items - which may be of a different ring size or containing a lesser quality diamond - in a tray in a drawer

THE THEME An outside window display has to be changed at least every six months. Professional display artists are normally worth their money. However, if you cannot afford such a service, copy ideas from books and other stores. A central motif in each window - such as framed prints or paintings, welldressed mannequin busts, natural grass or roots, etc - is

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ISSUE 3

Clutter confuses.

below the showcase. Such drawers should always be full. If items are removed from a showcase, fill their space, not with a coin that is easy to find, but with a unique disc or other item.

Do not mix 18k white gold and platinum items, or group, for example, all green gemstones together. This will prevent customer confusion and assist in the selling process.

SHOWCASE SECURITY You will prevent time-consuming searches for “missing” items if the layout of your showcases is properly mapped and the responsibility for its contents allocated to a specific staff member. In other words, the in and out packing of a showcase is done by the same person who arranges its layout in the same way every day.

Lay out a group of items in a fixed number - say, three or 10 rings in a line - and a specific number of items - say, 50 per showcase. This will make it much easier to spot a missing item and will allow the responsible person to take stock every evening before the items are returned to the safe.

If, at the end of the day, there are less than 50 items in the

Simplicity speaks clearly.

showcase, it is relatively easy to establish if it has been sold, used as a sample or stolen.

To assist with your control over showcase items, a photo of each showcase and its items can be used by the responsible staff member. However, the success of your showcase control will depend not only on the diligence of the person responsible, but also on the discipline of other sales staff using the showcase.

To limit a smash-and-grab or shoplifting loss, position the most expensive items out of easy reach or as far as possible from the doors or the front of the showcase.

It is always a good idea to spend money on proper showcase locks. Entrust to each salesperson a master key that can be used on all locks.

SHOWCASE HYGIENE •

Always wear white jewellery gloves when removing or returning jewellery to a showcase.

•

Get proper velvet-lined trays to store jewellery in overnight.

•

Keep jewellery spotless by allocating hand-polishing duties to the person responsible for a specific showcase.

• Vacuum your showcases on a regular basis and keep

glass panels spotless.

•

In a well-run, well-motivated jewellery store, the image of a bored salesperson - either sleeping or eating behind a counter while waiting for a customer - is taboo.

The showroom and its cases are his/her working domain where there is always a job to be done, whether it is cleaning, polishing, counting stock or studying.

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PLATINUM

The river of platinum There is nothing quite so captivating as the South African night sky above a bush retreat on a dark night, writes renowned writer for the jewellery industry, Michael Pryke.

THE PLATINUM-PLATED SKY winked seductively over the campsite.

Orange sparks leaped up to reach the stars, creating a meeting place of serenity. There is nothing quite so captivating as the South African night sky above a bush retreat on a dark night.

We sat there, the six of us, in comfortable camp chairs around the glowing embers of an indigenous wood fire – an aromatic opiate for the senses. The pure nocturnal air, freed from the oppression of the sun’s onslaught, ruffled our hair playfully.

“It looks like a river of platinum,” remarked Anette, looking upwards at the shimmering swathes of glowing light that illuminated the canopy of the heavens.

26

Jacob, the silent one, whispered: “There’s more truth in that observation than you probably realise!”

It was an unusual comment. The warmth from the fire suddenly seemed to swell. We were intrigued. Annette’s husband, Dirk, usually boisterous and full of facts about bushveld lore, was unaccountably quiet.

Jacob’s wife smiled knowingly...something special was about to be revealed. Patricia and I watched and waited.

“What do you mean by that, Jacob?” asked Anette.

“Well, there’s considerably more platinum in the moon and the meteors up there … than there is down on earth.” There was a long silence, then he continued. “Here, it’s our rarest precious metal and our supply is dwindling. Above us up there are countless

billions of tons of it. If we put together all the platinum ever mined on earth, it would only fill an average-sized living room!”

“That doesn’t seem very much!” said Patricia “It isn’t! Platinum represents only five parts per billion by weight of the earth’s crust. We produce only 118 metric tons of platinum each year, compared with 1633 tons of gold. If we stopped mining platinum today, our current supply would be depleted in less than 12 months.”

“How serious is that?” asked Anette.

“It’s pretty serious. At the moment, the greatest use of platinum is in the catalytic converters of motor vehicles - about 47% of global production. This could drop as electric vehicles take over from combustion driven cars and trucks. However, new uses are continuously being discovered, which means there will always be a major demand for the metal.” He replied.

“Such as?” chirped Dirk.

“Cancer!” he responded. “Platinum is increasingly used in the development of anti-cancer drugs as well as other medicinal applications. At least 50% of cancer

SA JEWELLERY NEWS – DECEMBER 2019

PLATINUM

therapy patients are being treated with platinum-containing drugs. Also, because of its resistance to corrosion from bodily fluids, platinum is used in pacemakers, dental crowns and other equipment used in the human body. As we learn more about this remarkable metal, I foresee that it will become a vital element to the survival of millions of patients worldwide.”

By now all of us were now mesmerised by the story unfolding under the silvergrey stars shining like platinum.

“What about jewellery?” ventured Patricia.

“Now, that’s interesting,” said Jacob.

“The second largest usage of platinum is in jewellery – about 30% of production.

It is utterly resistant to tarnish and corrosion and considerably stronger than gold. Because it is malleable, ductile and extremely durable, it makes an ideal medium for rings - especially if set with precious stones … they rarely fall out of a platinum setting. Some of the world’s most precious stones are set in platinum - such as the Hope Diamond, the Jonker 1 and KohI-Mor, plus many of the items in the late Elizabeth Taylor’s collection.

“The world’s top watchmakers, like Patek Philippe, Rolex and Vacheron Constantin use platinum for producing limited edition watch series. Unlike gold and silver, platinum does not lose any of its content when it is scratched, so even if an item is worn constantly it retains its mass.”

“But what about its value. Is platinum a good investment?” asked Dirk.

“Very much so,” pondered Jacob.

SA JEWELLERY NEWS – DECEMBER 2019

“Typically, platinum is worth double gold’s price when the economy is stable and seeing growth. But when the economy is uncertain or volatile, the price for platinum often falls below that of gold. So, as an investment, it can be volatile – this means if you time it right you can really score. There’s no doubt that platinum’s value as an investment in the form of bullion is recognised globally and it is also traded as a currency.”

“How do you know all this?” asked Dirk who felt seriously upstaged by the usually quiet Jacob.

“Metcon,” he replied. “I started dealing with them a few months ago. What I have learned about investing in platinum, gold and silver has been truly extraordinary.

And I have become so interested that I have

done my own research to add to Metcon’s information and advice.”

The embers of the fire glowed amber while each of us contemplated this newfound knowledge. Above, the river of platinum bathed the night sky with its precious ambience. After a long silence, Annette asked: “So where is platinum mined … I mean in which countries?”

“Interestingly enough, right here in South Africa. We produce about 79% of the world’s platinum. Russia accounts for only 10% and the balance in North and South America and Zimbabwe.” He shared. “However, in years to come, who knows how things may change … perhaps one day we will be mining for platinum on the moon!”

Well, there’s considerably more platinum in the moon and the meteors up there … than there is down on earth.” There was a long silence, then he continued. “Here, it’s our rarest precious metal and our supply is dwindling. Above us up there are countless billions of tons of it. If we put together all the platinum ever mined on earth, it would only fill an average-sized living room!

27

We co

E

The SA Jewellery News team wishes you a wonderful festive season and a happy New Year.

Tel: (011) 883-4627 Fax: (011) 783-2677 Publisher: imraan@isikhova.co.za Editor: adri@isikhova.co.za Sales: ian@isikhova.co.za Admin: thuli@isikhova.co.za

We would like to wish all our customers a blessed festive season and a prosperous 2020. From the Bassano Gioielli team.

Season's Tel: (011) 704-5667/4164 Fax: (011) 704-4002 Website: www.bassanogioielli.com

greetings

Wishing all our customers a Merry Christmas and blessed new year.

May you have a blessed festive season.

Tel: (012) 326-8348 / (012) 328-5996 Fax: (012) 325-7097 E-mail: smwatch@iafrica.com Website: www.smwatch.co.za

We would like to wish all our members, colleagues and friends a blessed festive season and a prosperous 2020.

Wishing our clients and colleagues a wonderful festive season. Merry Christmas and happy New Year!

Tel: (011) 334-1930 Fax: 086 516 5958 E-mail: diamonds@diamonds.org.za Website: www.ddcsa.co.za

on

a

To our colleagues and friends in the industry, wishing you a safe and happy festive season.

Thank you for your support during 2019.

Looking forward to a prosperous 2020!

Tel: (031) 301-3963 Fax: 086-528-6516 Email: aroon@piyuvejewelers.co.za Website: www.piyuvejewellers.co.za

Tel: (011) 418-1600 Fax: (011) 825-4043 E-mail: johan@richlinesa.co.za Website: richlinegroup.com

Wishing all our friends and colleagues a wonderful festive season and a New Year filled with happiness and prosperity.

Tel: (011) 642-2018/9 Fax: (011) 642-2016 E-mail: ungarbros@worldonline.co.za

To our partners in the jewellery industry.

Wishing you happiness and prosperity over the Holiday Season. Thank you for all your support throughout the year

ar. n.

6 This festive season, we would like to wish our members, friends and colleagues all the best for the New Year and a prosperous 2020.

Tel: (011) 484-5528 • Fax: 086 504 9512 E-mail: admin@jewellery.org.za Website: www.jewellery.org.za

Tel: (011) 418-9000 Fax: (011) 418-9231 E-mail: gold@gold.co.za Website: www.randrefinery.com

DIAMONDS

GIA Diamond Origin Report: traceability based on science The Gemological Institute of America (GIA) created the Diamond Origin Report to help consumers understand the good that their diamonds can do in the countries that produced them.

Traceability as the future of diamonds "Traceability" and "transparency" are two words vital to capturing attention in the global consumer market. From food to luxury items, contemporary consumers are increasingly concerned with knowing the impact that they

30

SA JEWELLERY NEWS – DECEMBER 2019

DIAMONDS

have on the people and places that supply their goods. In the jewellery industry, this means knowing where gems come from and how mining affects the people involved. GIA created the Diamond Origin Report to help consumers understand the good that their diamonds can do in the countries that produced them.

The GIA Diamond Origin Report confirms a diamond’s country of origin, in addition to providing a full 4Cs assessment of diamond quality and a plotted diagram of the diamond’s clarity characteristics. The GIA report number is inscribed on the diamond to identify that diamond with its report wherever it goes.

Scientific matching of rough to polish The GIA Diamond Origin Report lets the diamond tell the story. Natural diamonds have unique characteristics caused by their growth conditions within the earth. GIA records these identifying characteristics during analysis of the rough stone; then, when the diamond is cut and returned to GIA, GIA matches the cut gem’s spectroscopy, growth structure, inclusions and dimensions to those of the original rough to make sure that the polished diamond is indeed from that rough.

This gem-based method of confirming diamond Origin from the provider reduces dependence on intermediaries and therefore the likelihood of human misrepresentation. It relies instead on the expertise of GIA, built up over 60 years of advanced gemmological research.

Diamonds do good for miners and consumers To launch the programme, GIA worked with mining companies in four countries – South Africa, Russia, Botswana and Canada – to provide Diamond Origin Reports for qualified diamonds. More countries are being added to this list as consumer desire for knowing diamond origin increases. These selected countries are known for producing diamonds responsibly and for being mindful of sustainability and equitable pay for workers. In each of these countries, diamond mining serves to benefit the community socially and economically.

In South Africa, for example, diamond mining creates jobs for tens of thousands of South Africans and taxes on diamond companies contribute to building roads, schools and hospitals. As a result, a greater number of children in mining towns attend schools than in nonmining areas. In addition, mining companies often give back to local communities through establishing nature reserves such as the Venetia Limpopo Nature Reserve – home to lions, elephants and leopards – or by establishing programmes such as the Zimele Enterprise Development programme, which helps small or medium-sized business owners grow their businesses and create more jobs.

Emphasising a diamond’s origin helps consumers feel confident that their diamond did good in the country that it came from, and the story of their diamond’s journey adds value to the diamond or finished diamond jewellery.

To help retailers tell the story of the diamonds they offer, GIA’s website and the GIA Origin App display feature full-colour digital images of Diamond Origin Report diamonds in both their rough and polished states. GIA also offers many free-to-download assets and point-of-sale tools through its Retailer Support Programme.

The GIA Diamond Origin Report tells a story – of a diamond’s journey from deep within the earth into the hands of the consumer, and of the people in the country who helped make it happen. It also offers retailers a new way of earning their customers’ trust and gives consumers the knowledge they need to wear their jewellery with pride.

From food to luxury items, contemporary consumers are increasingly concerned with knowing the impact that they have on the people and places that supply their goods.

In the jewellery industry, this means knowing where gems come from and how mining affects the people involved.

SA JEWELLERY NEWS – DECEMBER 2019

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JEWELLERY DESIGN

Shimansky shines at Salon Art & Design Fair Renowned local jewellery brand Shimansky recently exhibited a beautiful tanzanite and diamond ring in New York at the prestigious Salon Art & Design Fair.

IN A FIRST FOR THE COUNTRY, SOUTH African jewellery design house Shimansky sparkled in an exclusive exhibition curated by Vogue Italia for the Salon Art & Design Fair in New York City from 14-18 November 2019.

Shimansky, respected worldwide for designer diamond jewellery, was selected to join a line-up of international fine jewellery design houses for an exhibition titled The Protagonist, celebrating the best in mindful and sustainable fine jewellery.

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For the exhibition, CEO and founder Yair Shimansky presented a breathtaking design featuring a rare blue brilliant, round-cut 27ct tanzanite ring held in 18ct South African white gold. The ring setting is home to a cascade of 2,3ct of round brilliant cut diamonds designed to offset the tanzanite’s extraordinarily deep colour.

One thousand times rarer than diamonds, tanzanite comes from a single finite vein in the foothills of Mount Kilimanjaro, Tanzania.

Formed over 550 million years ago, the gemstone can only be mined from the earth using a hammer and chisel to ensure a sustainable interaction with nature, which is why Shimansky has built a long-standing relationship to source tanzanite directly from the Maasai tribe. The contemporary setting of the ring echoes an age-old Maasai tradition of surrounding the heart of a village by a circle that guards and protects all that is precious.

“Responsible and sustainable sourcing is at the heart of Shimansky’s jewellery creation, where we follow the journey of both diamonds and tanzanite by employing our respected mineto-finger approach – ensuring every creation is

mined in a natural and ethical manner within a conflict-free environment,” said Shimansky.

“As an ode to African heritage, this exceptional tanzanite piece represents all that Salon Art & Design embodies: impeccable quality, groundbreaking design, luxurious offerings and geographical diversity.”

Shimansky, with jewellery stores in Cape Town and Sandton, now has a home at one of the world’s most prestigious addresses – 5th Avenue – where The Shimansky Diamond Experience New York introduces the brand’s unique designs to a wider audience of collectors and connoisseurs.

The Shimansky legacy began over two decades ago with founder and CEO Yair Shimansky. Respected worldwide for innovative design, superior artistry and quality gemstones, Shimansky is responsible for introducing platinum to jewellery-making in SA and boasts more than 10 jewellery design patents, as well as over five international diamond cut patents. Shimansky’s expanding footprint includes jewellery stores in SA, as well as a newly-opened boutique on New York’s iconic 5th Avenue.

SA JEWELLERY NEWS – DECEMBER 2019

Specialist supplier of fine quality Tanzanite Foundation certified loose tanzanite and certified Tanzanite Blue jewellery.

TM

TM

www.tanzanitecompany.co.za marilyn@tanzanitecompany.co.za C +27 82 601 3621 warren@tanzanitecompany.co.za C +27 83 231 8919 P.O Box 85084, Emmarentia, 2029 T +27 11 446 5900 F +27 86 614 7433