Rapaport Magazine - August 2017

Vol. 40 No.8 August 2017

FORGET THE 4CS IT’S TIME TO FOCUS ON

THE STORY

King Opinion of Bling

Opportunities Meet celebrity are out there for jewelry tech-savvy jewelers, designer but they haveWebster to grab them Stephen

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News Auctions Analysis RetailProfile Trends Strong How much Geneva does sales the average for Sotheby’s engagement and ring reallyChristie’s cost in the US?

Challenges Meet business and mogul and jewelry opportunities of creator Kathy Ireland customization

Reflections Style

Animal Find out jewelry the science is all the behind rage this a diamond’s season.

Go wild inradiance your store

Designer Trade Report

ValérieofMessika The impact new mineon heirlooms, architects Gahcho Kué on the and 1920s rough marketParis

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CONTENTS

IN-DEPTH

RETAIL

MARKETS & PRICING

18 News

48 Retail profile

66 Trade report

Industry & Retail: Breaking down India’s GST; Growth returns to Hong Kong.

Movers & Shakers: A look at who’s coming, who’s going.

Mining: Higher global production raises oversupply concerns.

Georgia’s Worthmore Jewelers prides itself on its inclusive atmosphere.

Industry takes stock during slow season.

26 Opinion: Adapt or die

53 RetailRap

Independent jewelers can tap into the sense of community millennials crave.

What stories do brands offer to entice customers?

74 Israel

28 News analysis: The value of love

STYLE & DESIGN

78 Russia

55 Jewelry Connoisseur

80 Antwerp

Supersize earrings stand out from the crowd.

82 Polished data

56 Style

86 Price List

Stack and go: When one piece of jewelry just isn’t enough.

101 RapNet Price Sheet

US couples are spending more on engagement rings. What does it mean?

30 Profile: Kathy Ireland The fashion icon discusses her foray into diamond jewelry.

COVER 36 Less sale, more tale Everything you need to know about jewelry storytelling, from ethical initiatives and the diamond journey, to the bridal scene and the showroom.

44 The science behind the sparkle How a diamond’s crystal lattice bends light into brilliance.

46 Interview: The Diamonds Girl

50 Retail insight The recycled-jewelry market lets retailers profit from old inventory.

69 US retail 70 US wholesale 73 Hong Kong

77 India

58 Designer Valérie Messika talks Roaring ’20s and 2018 trends.

110 Calendar

60 Legacy

112 The final cut

A Paris exhibition traces French jewelry from the 17th century through World War II.

62 Colored gemstone In a world of white diamonds, consumers are clamoring for color — and jewelers are listening.

Instagram star Tracey Ellison shares social media tips for building a brand.

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EDITOR’S LETTER

IMAGE: Ben Kelmer

New face, time-honored story

Editor’s Pick

De Beers unveiled this captivatingly artful ring during Paris Couture Week in July. The Soothing Lotus Ring stars a 4.01-carat oval diamond surrounded by rough and polished diamonds set in white, yellow and rose gold.

With a total weight of 10.30 carats, this piece of high jewelry encapsulates the whole journey of a diamond and showcases the stone’s mesmerizing play with light.

It was in the immediate aftermath of World War II that my grandfather went to look for an engagement ring for his betrothed. Europe was waking up from one of history’s worst traumas. He wanted the token of his love to be refined, but not ostentatious. My grandmother agreed. Except she had one condition: She wanted at least one diamond on it, however small. She was ready to use all her paltry savings to secure that little piece of glitter and light.

Two years before a copywriter coined the most iconic tagline of the industry, this savvy 18-year-old knew “a diamond is forever.” She gave me her Art Deco ring on my 18th birthday. It wouldn’t make headline sales at an auction house, but the chapter of family history it represents, the connection to this feisty French lady who is no more, is dearer to me than a 3-carat stunner.

Each diamond has its own story, believes designer Valérie Messika — and that’s what we are celebrating in this issue devoted to the power of storytelling.

“We don’t own jewelry, we only have the stewardship of it,” Kathy Ireland commented in Las Vegas this summer, quoting her close friend, the late Elizabeth Taylor.

For journalists, magazines are like jewels. As we put the finishing touches on the redesigned Rapaport Magazine, I feel truly honored to have been entrusted by John Costello, our publisher, with the stewardship of this respected institution in the diamond and jewelry trade. With the help of the most talented team an editor could dream of, we have strived to create a fresh take on a familiar publication.

Loyalty to the traditions of Rapaport Magazine was paramount, and all the long-standing contributors are part of this exciting journey — along with some new names, all authorities within the industry.

A special hats-off goes to Avi Krawitz, who, besides his usual must-read monthly Trade Report (Page 66 in this issue), has contributed compelling features to this relaunch. From an insightful news analysis about the real cost of engagement rings in the US (Page 28) to a lively profile of Kathy Ireland (Page 30), Avi has brought his invaluable knowledge of the industry to each of his articles. The redesigned News section is a testament to his unparalleled analytical skills.

The magazine you’re holding now is a new landmark in a story spanning over 20 years, and like our industry, it has wonderful tales to tell. I look forward to hearing your thoughts and writing many more chapters together.

Sonia Esther Soltani Editor sonia.soltani@diamonds.net 12

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OPINION

ADAPT OR DIE

Lady Gaga behind the scenes of the Tiffany & Co. Legendary Style campaign shoot

There was a telling moment at the recent JCK Las Vegas show that confirmed the generational shift taking place in the jewelry industry.

“The jeweler’s career path used to start with the GIA, then you did an apprenticeship, and then, after a few years, you were ready to do something,” noted Michael Pollack, the owner of Denver-based Hyde Park jewelers.

“Today, I’d encourage young people to hone... their technical [IT] skills before they get the gemological background.”

Pollack’s comment, which came during a panel discussion on the role of independent jewelers in the market, was more nuanced than he may have intended. His advice to young jewelers summed up the challenge facing the sector: Adapt or die. The old way of selling — relying on (declining) mall traffic and promotional advertising — is no longer sustainable.

For that reason, it seems the industry continues to contract as stores close at a faster rate than new ones are opening.

Some 1,269 US-based jewelry retailers discontinued their operations in 2016, and only 214 opened, according to the Jewelers Board of Trade (JBT).

Similarly, in the first half of 2017, the rate of closures far outpaced the number of stores that opened, JBT reported.

While a small proportion of the discontinuances were due to bankruptcy or merger, the vast majority were jewelers simply

IMAGE: Tiffany & Co./Hanna Besirevic

Independent jewelers have the opportunity – and the flexibility – to get ahead by appealing to the millennial hunger for community. By Avi Krawitz

closing up shop. They’re doing so, in part, because baby-boomer jewelers have been unable to recruit their kids into the family business. And that’s left a generation of baby boomers selling to millennials, who speak a different language altogether.

“The old way of selling – relying on (declining) mall traffic and promotional ads – is no longer sustainable”

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Bigger isn’t better It isn’t just independent jewelers struggling to adapt to changes taking place at retail. The majors are contending with the same challenges.

Signet Jewelers — the parent of Kay Jewelers and Zale — saw disappointing sales during the holiday season and again in the first quarter.

The company admitted it had been caught unprepared for the spike in online selling during the holidays. It has since invested diamonds.net

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heavily in improving its omni-channel offering.

Meanwhile, Tiffany & Co.’s sales have declined as consumers shift to more affordable price points, and the brand has failed to resonate with millennials. Management is trying to address that. The company brought in Lady Gaga as a brand ambassador and is focusing more on fashion jewelry. It also appointed celebrated fashion designer Reed Krakoff as its chief artistic officer, and more recently named Alessandro Bogliolo — a former executive at Bulgari and Diesel — as its new CEO. But where the big chains have the marketing dollars to boost their brand awareness, the independents have the flexibility to engage with consumers on a far more intimate level.

And therein lies their opportunity.

majors during the 2016 holiday season. Jewelry retail sales grew 0.7% during the season, with independents showing growth of 1.4% in December, De Beers CEO Bruce Cleaver reported, citing MasterCard Spending Pulse data.

It’s a trend Rapaport expects to continue as savvy jewelers develop omni-channel capabilities with social-media strategies in place, providing bespoke, customized services and products that will carve them a position in their community — and the market.

Those that aren’t taking those steps will fall by the wayside. And the majors that cannot do so with the same flexibility and personal touch will continue to lose market share. In an age of unprecedented retail disruption, it helps to be nimble. c

The power of community Millennials, believe it or not, have a strong sense of community as they seek out authentic experiences from their purchases — especially those that hold sentimental value. Independent jewelers can position themselves as an integral part of the community, providing the compelling personalized experience that consumers are craving.

They can develop that through their socialmedia engagement and by meshing their online offering with their in-store experience. In this area, they have flexibility to operate in a way large corporations don’t: While each Instagram post may require approval from layers of management at a public company, independent jewelers have the luxury of trial and error.

If something doesn’t work, try to understand why and do it differently next time — that was the advice that Amy Morino, vice president of brand marketing experience and partnerships at American Express, gave during the panel discussion.

Millennials are looking for inspiration on social media, and jewelers can provide it in a way that builds trust for their brand.

“Those who can mesh their gem knowledge with the tech-savviness the younger generation brings, and at the same time show their involvement in the community, have a good chance to restore growth,” Morino said.

US Jewelry Retail Discontinuances – 2016

Climbing back up Already, independents are reversing their downward spiral, having outperformed the diamonds.net

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Consolidations (Sale/Merger)

94

Bankruptcies

19

Ceased Operations

1,156

Total

1,269

Source: Jewelers Board of Trade.

Number of Jewelry Businesses Operating 2016

2015

Retailers

20,124

21,332 -5.7%

Wholesalers

3,900

4,167

-6.4%

Manufacturers

2,701

2,945

-8.3%

Total

26,725

28,444 -6.0%

Source: Jewelers Board of Trade.

Want to react to this opinion piece? Feel free to share your thoughts with us at editor@diamonds.net

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COVER/STORYTELLING

They’ve come a long way A look at how the big brands are using the diamond journey to capture customers’ hearts and minds Some of the industry’s biggest players know that romancing a diamond’s long journey to market can be a powerful aphrodisiac for in-store sales.

One way to tell a diamond’s story is to reveal its transformation from a rough to a polished stone. Both Helzberg’s My Diamond Story and Jared’s Chosen options provide consumers with documentation showing the diamonds in rough form and their journeys from cutting to setting in engagement rings. Helzberg also allows purchasers to log into the Gemological Science International (GSI) website to verify stones’ specifications, while Jared customers can view details about their Gemological Institute of America (GIA)-graded diamonds from the Chosen collection online.

‘Another layer of assurance’ Meanwhile, the GIA’s Mine-to-Market program, or M2M — new this spring — allows retailers of all sizes to control the exact stories they want to tell, using a 38

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digital platform consumers can access with an app.

Merchants can customize information to include GIA-provided proof of the match between rough and polished diamonds, as well as grading information, personalized text, video, and images of the design process for a finished piece.

The technology offers buyers “an authentic, personalized experience for complete confidence in their diamond purchase,” explains Matt Crimmin, GIA’s vice president of laboratory operations in Europe, the Middle East and Africa. “For consumers concerned about supply chain transparency, M2M is a great opportunity to add another layer of assurance.”

Rio Tinto Diamonds is no stranger to storytelling, either, sharing its tales of diamond provenance and supply-chain integrity with both trade and consumer audiences. The mining giant uses social media, among other channels, to get its news out to markets worldwide. But it still envies the power of jewelers.

“Retailers are the chief storytellers [and] hold diamonds.net

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IMAGES: Courtesy of Rio Tinto Diamonds, taken by photographer James Bareham for Rio Tinto’s Select Diamantaire programme/Ancona + Associates, Inc.

the greatest power in the consumer experience,” maintains Rio Tinto marketing manager Marie Chiam.

“Retailers control the depth of a story that creates an authentic emotional connection beyond the product.”

“Retailers are the chief storytellers [and] hold the greatest power in the consumer experience” Beyond the brand At Brilliant Earth, which has built its 12-year-old business on a foundation of ethical sourcing and traceable countries of origin, video stories from customers tell the most memorable tales. A recent one shared on social media was from a newly engaged couple with dogs. The fiancé proposed to his bride-to-be with a video of their two canines falling in love and getting married, presenting her with an engagement ring and popping the question in the closing credits.

Genuine stories like these, and telling them where customers naturally connect with family and friends, help to make brands more believable. For diamonds.net

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Brilliant Earth and its largely millennial client base, that place is online.

“Real images of proposals with real couples and authentic love stories convey the heart of a brand — not just what it says it can do,” observes Kathryn Money, the company’s vice president of strategy and merchandising.

Getting in touch with emotions Others who have taken to sharing engagement stories include jeweler members of the American Gem Society (AGS), which touts stringent ethics and education criteria. The move connects customers to the “emotions behind buying a ring,” notes AGS CEO Katherine Bodoh.

Not surprisingly, Charles Stanley, president of Forevermark US, also sees great value in a good story.

That’s why his brand continues to create campaigns celebrating consumers’ personal narratives. For holiday season 2017, shoppers can expect a new merchandise concept with ads highlighting ethically obtained Forevermark diamonds in the lives of the women who cherish them.

“The concept is a celebration of women through diamonds, acknowledging her as a unique and multifaceted individual and focusing on her story,” he explains. c August 2017

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RETAIL PROFILE

SHOWCASING DIVERSITY An abiding respect for inclusivity is at the heart of Worthmore Jewelers in Atlanta and Decatur, Georgia. By Joyce Kauf When Harris Botnick was a film student at the his own. Along with another partner, Joan Wasser, the University of Alabama, the only thing he knew about three opened Worthmore in 1993 in midtown Atlanta, a jewelry was that his mother wore it. Yet for reasons location they specifically chose for its diversity in race, still inexplicable, he chose to do a religion and sexual orientation. video of a jewelry store heist as his senior project.

Catering to all groups A “super nice” local jeweler in “From the start, we always wanted Tuscaloosa agreed to the use of his to stand out from the crowd,” store, recalls Botnick, now a partner says Botnick, explaining his retail in Georgia-based retailer Worthmore philosophy of selling to “all groups of Jewelers. Botnick enlisted his fraternity people.” His mall experience molded brothers to play the “criminals.” this approach.

“I probably seemed honest and “I noticed that some people were desperate,” he says, looking back. “But not very welcome because of their if someone asked me [to film a heist backgrounds — whether race or sexual in my store] now, I would immediately orientation,” he recalls. “Men came in Harris Botnick and wife Geri (pictured) opened Worthmore in 1993 with contact the police.” to look at wedding bands and were partner Joan Wasser.

While his adviser praised the asked what their ‘girlfriends’ liked, and “realistic” video, Botnick opted not we never saw them again.” to pursue a career in film and followed his wife, In his stores, Botnick stresses, “no matter what you Geri Botnick, into retailing. He began working at wear or what you look like, you are going to get the a family-owned jewelry store, where the owner same great product and service as the person next encouraged him to study diamonds so he could do to you.” “anything in the industry.” Botnick took his advice Worthmore took “a different approach from day one, and completed his studies at the Gemological focusing on manufacturers’ overstocks and buying Institute of America (GIA) in 1988. closeouts,” he continues. And when the company After several years managing a mall store, Botnick, eventually shifted gears, he says, it still took an with Geri’s encouragement, decided to strike out on alternative path.

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“All jewelers were after bridal, so we went after fashion,” Botnick explains. However, in a testament to his desire to meet customer demand, the number one category in both his Atlanta and Decatur, Georgia, stores today is bridal.

Gabriel & Co. is Botnick’s top bridal vendor, followed by Fana.

Diamonds lead the fashion category, then silver and watches, and finally colored stones. Liven, Aero Diamonds and Jordan Scott are among Botnick’s top fashion vendors. He cites the strength of black diamonds, salt-and-pepper diamonds, and rough-cut and rosecut diamonds with a vintage feel.

He also carries lab-grown diamonds, pointing out that “we need to have what our customers want.”

between the Worthmore founders and gemologist Peggy Rainbow.

Located in an area with the vibe of New York’s SoHo, the space was originally an art gallery — and in fact, Botnick recalls, as they were setting up, people kept asking about the new art gallery, which sparked the idea of selling artwork.

“This is the perfect addition to what we already do,” he says. “It enhanced our story that jewelry is art.”

Character is key to Botnick’s business as well. He chooses his designers not just for the quality of their work — including “designs not seen in the South” — but also for being “nice people with the right values.” He notes that his staff members, who reflect the diversity of society, help with the buying decisions, Capturing the vibe As expected, he took an out-ofstrengthening the relationship the-box approach to the stores’ aspect of the company. ambience as well.

“People who need snob appeal “Atlanta is very traditional, a ‘dark are not necessarily going to like us,” he says. “When people walk into our wood town,’ so I went the opposite way, taking over a 2,500-square-foot stores, they see something they can warehouse space, which 24 years ago relate to, which more than anything was not the norm for a jewelry store. else is the story that sets us apart in the market. We’re not what people We stripped everything down and painted the concrete floors and put expect. We have people with blue hair, tattoos, piercings, and yes, crazy art on the walls.”

The 1,700-square-foot Decatur store people in traditional business attire. opened in 2008 as a partnership We’re really what life is.” c diamonds.net

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IN-STORE STORIES A former film student, Harris Botnick knows the “floor is our stage” and incorporates these storytelling strategies to enhance sales. c Embrace diversity – and encourage interaction When the soccer mom and the man covered in tattoos start asking each other’s opinions, the result is what Botnick calls a “cool dynamic” that creates a memorable experience for both. c Keep eyes and ears open The right story depends on the customer. An analytical person wants facts and figures. A customer being introduced to a new designer wants to know how that person’s values match her own. c Remember romance Cramming in too much information is often counterproductive for bridal sales. Play up the emotional component of this story — that’s why they’re buying the ring.

Find out more about Worthmore Jewelers’ stores and activities at worthmorejewelers.com

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DESIGNER How would you describe your creative process?

I don’t really get my inspiration from other jewelers, but from a lot of things, all the time, such as my travels, architecture, interior design — which I am crazy about — by walking in the streets and looking at people’s attitude and style. The most difficult aspect of my jewelry creation process is to transcribe my ideas into a drawing. I always have a lot of ideas, but sometimes it’s quite difficult to get the result I have imagined. But at the end, thankfully, we always manage to make it possible.

What diamond cuts do you prefer to work with?

My favorite is the pear-shaped diamond. When I was young, my grandmother, one of the most amazing women I have ever met, offered me one of her rings, a pear-shaped diamond of 9.30 carats. That is my favorite piece of jewelry. To this day, I love to work with pear-cut diamonds.

How does working with small diamonds or extra-large precious stones affect your creativity?

I usually design my pieces from the stones. I like to work with different diamond shapes, such as emerald, pear and brilliant cuts. More recently, I fell in love with the triangle cut — I dedicated a collection named Théa to this shape. Every diamond is unique and has a history, no matter how small or extra-large. I also like to mix different cuts in my high jewelry.

Your collections mainly feature white diamonds, but you also create stunning coloreddiamond pieces. What’s the difference between white and 58

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colored diamonds for you?

I have a love for white diamonds, but also sometimes for colored diamonds. I have developed my iconic jewelry collections Move and Glam’Azone in limited editions with black, yellow and pink diamonds. When I also find major colored stones, I create unique pieces such as high-jewelry rings or necklaces.

Name: Valérie Messika Company: Messika, France Job: Founder Known for:

The Skinny — a patented diamond bracelet whose flexibility comes from a system of invisible gold nano springs — and the Move collection, featuring three diamonds that slide on rails and playfully symbolize the past, present and future. A favorite with celebrities from Beyoncé to Céline Dion.

How do your creations take after your enthusiasm for designers and artists such as Starck, Giacometti and Calder?

I am particularly sensitive with decoration and design. Since my youth, my father [diamantaire André Messika] has raised my awareness for art and has taught me to recognize beautiful artistic pieces. I like to make mood boards that help me to create my collections and define designs and stones.

You launched “Paris est une Fête” at Baselworld earlier this year. How did the Roaring ’20s inspire you?

Pieces are inspired by the Roaring ’20s in Paris, its social and cultural mania, its illustrious women who reinvented their gender through various artistic disciplines, such as Isadora Duncan, Josephine Baker and Mata Hari. The 1920s was a founding decade in the world of fashion and in the arts in general.

The decade marked the beginning of modernity. Narrower volumes, clean lines, the search for freedom of movement, ethnic influences....

These are all the ingredients that guide my creative approach to how a piece of jewelry for women should look in the 21st century.

What’s the story behind the pieces you created to celebrate the 10th anniversary of Move, and their inspiration from Ron diamonds.net

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Arad and Ieoh Ming Pei? I wanted to pay tribute to the iconic creations of these two famous sculptors and architects.

Regarding the Move Ron [line], I have reinvented my signature collection Move into an innovative and daring style dominated by curves. For the Move Pei, I wanted to combine his graphic design with Cubist influences and the contemporary style of Move.

You said before that your dream was to create a watch. What would a Messika watch look like?

It will be a jewel that gives the time.

What do you predict will be the main jewelry trends for 2018?

Over time, we have seen a trend evolution in jewelry.

Today, jewelry such as the hand bracelet, double ring, or ear cuff is getting extremely fashion-forward.

In my opinion, within the next year, the creations will be even more amazing and created for body parts that we never think about!

1. Madeleine necklace from Paris est une FĂŞte collection; 2. Move 10th anniversary earrings; 3. Toi & Moi ring; 4. Skinny bracelet; 5. 15.8-carat yellow diamond solitaire ring; 6. Move Ron ring; 7. Amazone choker; 8. Angels ear cuffs; 9. Amazone ring with black diamonds.

Can you tell us more about the capsule collection you’re planning to unveil in September?

The only thing I can say is that the new face is one of the biggest it-girls of the moment. For the rest, see you in September!

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TRADE REPORT

Seasonal slowdown

The diamond trade is taking stock of market conditions with the expectation that demand will improve ahead of the fourth-quarter holiday season. By Avi Krawitz July is known to be a slow month for the diamond trade, as the US wholesale market effectively shuts down for its summer vacation.

This year, many dealers in Belgium and Israel shifted to holiday mode even before their respective August breaks, observing sluggish activity in the polished-diamond market.

The lull gave dealers a chance to reflect on how 2017 has evolved so far. Recent data from both the trading centers and the mining companies gave some insight into trading conditions during the first half of the year.

manufacturers — which drive demand for these diamonds — withdrew from the market at the end of the year after the government’s demonetization policy caused liquidity to dry up. Demand for these smaller and lowerquality diamonds improved in the first half as the market acclimated to the new currency environment.

On a like-for-like basis, De Beers’ rough price index rose 4% year on year during the period, while Rapaport estimates showed rough prices increasing about 3%. Consequently, manufacturers’ profit margins have started to Low-value rough proving popular come under pressure again amid a combination Manufacturers saw some improvement in their of consistent strength in the rough market and profit margins this year, after rough prices fell in continued caution in polished trading during the 2016. The major mining companies, meanwhile, first half. reported a drop in average prices compared to Polished prices — as measured by the RapNet last year’s first half, with De Beers noting strong Diamond Index (RAPI™) for 1-carat diamonds demand for lower-value rough.

— declined 2.5% during the six months and Miners ended 2016 with larger-than-usual continued to soften in July. RAPI for 1-carat inventory of low-value goods as Indian diamonds fell 0.6% from July 1 to press time on July 26. RAPI for 0.30-carat diamonds RapNet Diamond Index (RAPI™) slid 1.4%, and RAPI for 0.50-carat diamonds 0.5% dropped 2.9%. RAPI for 3-carat diamonds 0.0% edged up 0.3% during -0.5% the period (see chart).

-1.0%

-1.5% -2.0% -2.5% -3.0%

ct.

3

25-Jul-17

23-Jul-17

21-Jul-17

1

19-Jul-17

ct.

17-Jul-17

11-Jul-17 0.50

15-Jul-17

ct.

13-Jul-17

0.30

9-Jul-17

7-Jul-17

5-Jul-17

3-Jul-17

1-Jul-17

-3.5%

ct.

The RapNet Diamond Index (RAPI™) is the average asking price in hundred $/ct. of the 10% best-priced diamonds, for each of the top 25 quality round diamonds (D-H, IF-VS2, GIA-graded, RapSpec-A3 and better) offered for sale on RapNet - Rapaport Diamond Trading Network.

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Inventory buildup likely to continue Dealers and manufacturers expressed concern that the downward price trend would continue through the third quarter, as demand has been down in the slow season, and supply this year has diamonds.net

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increased. The number of unique diamonds listed on the RapNet diamond trading platform rose 20% over the first seven months, and was up 17% from a year earlier.

This increase in available goods reflects the fact that manufacturers bought significantly more rough in the first half of the year. Rough imports to India, where a vast majority of diamond manufacturing occurs, grew 14% by value year on year; by volume, they jumped 33% (see chart below).

Projections show inventory continuing to build up in the midstream throughout the third quarter as trading remains slow; the bourses in Israel and Belgium effectively close down during August, and fresh polished continues to enter the market, since rough that was bought in the first half is still being processed.

Kong Jewellery and Gem Fair for signs that retail revival is sustainable and translating to improved diamond trading activity. By then, presumably, US retailers will also have started ramping up orders for the fourth-quarter holiday period. With that in mind, dealers are assessing their inventory during the quiet vacation period, hoping the current slowdown is merely seasonal. c

IMAGE: Svetlana Shelest

Carats ‘000’s

US$ Millions

Trade down, retail stable Dealers also noted that trading activity did not measure up to last year’s levels. Belgium’s polished exports fell 9% in the first half compared to last year, and polished exports dropped 6%, according to data from the Average Price from Rough Sales Antwerp World Diamond Centre (AWDC).

1H 2017 (Year on Year) Belgium’s exports to the US fell 19%, and those to Hong Kong dropped 16%. c Alrosa -19% to $126/ct.

The level of orders from the US has c De Beers -12% to $156/ct. disappointed since the Las Vegas shows in June, c Petra Diamonds -8% to $118/ct. dealers observed. However there are signs that activity in Asia Pacific is improving as the Rough Diamond Imports to India China and Hong Kong retail environment 120,000 $12,000 awakens from its twoyear slump.

100,000 $10,000 US retail sales have been mixed, but the market is still 80,000 $8,000 considered stable as a whole, explained 60,000 $6,000 Johan Dippenaar, CEO of Petra Diamonds. At 40,000 $4,000 the same time, there is continued evidence of an improving retail 20,000 $2,000 market in China and a recovering market in $India, he added.

1H’14 2H’14 1H’15 2H’15 1H’16 2H’16 1H’17 The industry is Rough Imports by Volume Rough Imports by Value looking toward the September Hong Based on monthly data published by India’s Gem & Jewellery Export Promotion Council (GJEPC). diamonds.net

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CALENDAR of EVENTS

AUGUST

SEPTEMBER

5-7 RJO BUYING SHOW, DENVER, CO rjomembers.com

1- 4 JAS 2017, JAIPUR, INDIA jasjaipur.com

6-8 MODA ACCESSORIES, BIRMINGHAM, UNITED KINGDOM moda-uk.co.uk

2-4 MIDORA LEIPZIG, LEIPZIG, GERMANY midora.de

7-10 FENINJER, SAO PAULO, BRAZIL feninjer.com.br

3-5 INTERNATIONAL JEWELLERY LONDON, UNITED KINGDOM jewellerylondon.com

11-13 NORTHWEST JEWELRY CONFERENCE, SEATTLE, WA northwestjewelryconference.com 12-14 SJTA ATLANTA JEWELRY SHOW, ATLANTA, GA atlantajewelryshow.com 12-15 48TH ACE IT ANNUAL MID-YEAR, INDIANAPOLIS, IN najaappraisers.com 13-16 TORONTO GIFT FAIR, TORONTO, CANADA cangift.org/toronto-gift-fair 24-27 BALTIMORE SUMMER ANTIQUES SHOW, BALTIMORE, MD baltimoresummershow.com

The International Jewellery London show takes place under the glass ceiling of Olympia, London.

3-6 AUTUMN FAIR BIRMINGHAM, UNITED KINGDOM autumnfair.com 13-16 ASIA’S FASHION JEWELLERY & ACCESSORIES FAIR, HONG KONG exhibitions.asiafja.com/9fj 13-19 HONG KONG JEWELLERY & GEM FAIR, HONG KONG jewellerynetasia.com 20-24 MADRID JOYA, MADRID, SPAIN ifema.es Jeweler’s cane from M.S. Rau Antiques on display at the Baltimore Summer Antiques Show.

26-27 JAA JEWELLERY TRADESHOW, MOORE PARK, NSW, AUSTRALIA jaa.com.au 28-30 JAPAN JEWELLERY FAIR, TOKYO, JAPAN japanjewelleryfair.com

110

calendar P.indd 2

August 2017

23-27 VICENZAORO – FALL, VICENZA, ITALY vicenzaoro.com 23-27 PALAKISS SUMMER, VICENZA, ITALY palakisstore.com 27-OCTOBER 1 JUNWEX MOSCOW, RUSSIA restec.ru

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7/27/2017 2:52:46 PM