Rapaport Magazine - October 2020

VOL. 43 NO.10 OCTOBER 2020

ALL ALONG THE DIAMOND PIPELINE, RESPONSIBLE SOURCING EFFORTS ARE ON THE RISE

LOOKING INWARD INT E RV I E W

RE TA IL

LEGACY

G EM STO NE

DR. LAURENT CARTIER PUTS THE SPOTLIGHT ON DIAMOND DIVERS IN SIERRA LEONE

HOW A CLIENT ADVISORY BOARD CAN BOLSTER YOUR DECISION-MAKING

PRINCE DIMITRI OF YUGOSLAVIA NARRATES THE STORIES OF HIS FAMILY’S GEMS

TANZANITE’S DEEP BLUE HUES ARE ENCHANTING DESIGNERS AND COLLECTORS ALIKE

CON TENTS VOL. 43 NO. 10 OCTOBER 2020

8 NEWS In search of a plan; Tiffany reeling from breakup with LVMH; Moments that count.

COVER

UK-based firm Opsydia has spent months perfecting an internal diamond mark that doesn’t affect clarity grades, even in internally flawless stones.

RETAIL

14 INTERVIEW Filmmaker Laurent Cartier enters the world of Sierra Leone’s diamond divers.

22 RETAIL PROFILE

STYLE & DESIGN

26 JEWELRY CONNOISSEUR Ancient Greek, Roman and Egyptian motifs add an old-world mystique to contemporary designs.

28 STYLE

Vincents in Pelham, New York, offers an urban experience in a laid-back setting.

With live galas on hold due to Covid-19, maisons had to go digital in presenting their new collections this season.

SOURCE

24 RETAILRAP

32 DESIGNER

From blockchain to third-party certification, the industry is stepping up efforts to ensure its goods are responsibly produced.

Having a client advisory board to help with decisionmaking can give your business an edge in the market, say jewelry experts.

From antique toy parts to furry bear claws, the macabre, gem-encrusted aesthetic of Castro puts the Ohio-born, Istanbul-based artist in a class by himself.

16 RIGHT TO THE

32 PAGE

34 LEGACY Prince Dimitri of Yugoslavia, himself a jeweler, shares tales of his regal relatives in a new book that focuses on the gems they cherished.

37 ESTATE JEWELS Vintage dealer Beverley Forward discusses the dos and don’ts of displaying your wares.

MARKETS & PRICING 43 TRADE REPORT Market rallies after months of weakness.

44 USA

38 COLORED

48 INDIA

GEMSTONE

Tanzanite made a splash when it first hit the market in the 1960s, and its deep, oceanlike hues are still in demand.

49 ISRAEL 50 ANTWERP 51 HONG KONG 52 DIAMOND DATA 57 PRICE LIST 69 RAPNET PRICE LIST

34

78 DIRECTORY

PAGE

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28 PAGE

82 CALENDAR 84 THE FINAL CUT

IMAGES: JON ROGERS@PHOSPHOR ART (FRONT COVER); ARCHIVES CARTIER PARIS; CASTRO NYC; TIFFANY & CO.

20 REFLECTIONS

IN-DEPTH

N OTE FROM TH E P U B L I SHE R PRINCIPLED PURCHASING

John Costello PUBLISHER

IMAGE: BEN KELMER

J O H N .COST E L LO @ D IA M ON DS.NET

O

ver the past few years, there has been a strong and growing trend toward transparency and traceability.

Consumers are more interested than ever in the journey of their diamonds, gemstones and precious metals through the supply chain. Behind this trend are shopping habits shaped by ethics and values rather than just price and product. Where a specific stone came from, how it was produced, and how it was crafted into jewelry now form part of its story, contributing to its ultimate value.

While the long-term impact of the coronavirus pandemic is impossible to quantify accurately at this early stage, it appears that in the short term, at least, the consumer trend toward more conscientious buying choices has been significantly heightened.

Life in lockdown, with limits on where we can go, what we can do, and whom we can see, has had a profound impact on prioritysetting for many people. Add to this the anxiety over the spread of Covid-19 and the threat of an ever-deepening recession, and you also have a more value-conscious customer. This presents good opportunities for the diamond and jewelry sector.

Consumers are looking for value beyond price, as outlined in this edition’s cover story by Kyle Roderick (Page 17). The lockdown has been a boon for the engagement-ring market as people reevaluate their life choices and focus on what is precious to them rather than the relatively fleeting moments that often preoccupy them. Indeed, the coronavirus outbreak “has prompted consumers to become more introspective, creating a renewed focus on safety, sustainability and connection,” according to Beth Gerstein, cofounder of diamond-jewelry manufacturer Brilliant Earth. “Now more than ever, consumers care about how and where their products are sourced, and they want jewelry that reflects their values.”

Many things in life pass us by in a flash. A significant piece of jewelry outlives one-off memories and stays with us as a constant. In uncertain times, this provides the meaning and connection consumers are seeking right here and now. Just make sure your brand has the ethical credibility and the supply-chain transparency to resonate with them.

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OCTOBER 2020 7

COVER

16 OCTOBER 2020

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RIGHT TO THE SOURCE From blockchain to third-party certification programs, the diamond industry is stepping up its transparency game and working to ensure its goods are responsibly produced.

B Y KY L E R O D E R I C K

E

ver since the 2006 film Blood Diamond publicized the warfare and other atrocities powered by conflict diamonds, the diamond industry has been responding to demands from consumers, dealers, manufacturers and retailers to improve supply chain transparency.

That trend has become even more pronounced since the Covid-19 pandemic began, according to Beth Gerstein, cofounder of California-based diamond jewelry manufacturer Brilliant Earth. The coronavirus outbreak “has prompted consumers to become more introspective, creating a renewed focus on safety, sustainability and connection,” she claims. “Now more than ever, consumers care about how and where their products are sourced, and they want jewelry that reflects their values.”

A DOCUMENTED HISTORY

IMAGE: JON ROGERS@PHOSPHOR ART

The term “responsibly sourced gemstone” means that “a diamond or colored gemstone possesses verifiable factual documentation assuring that it meets specific requirements related to its origins, authenticity and environmental, social and workplace provenance,” states Benjamin Guttery, a sustainable-jewelry business consultant in DallasFort Worth, Texas.

“[Covid-19] has prompted consumers to become more introspective, creating a renewed focus on safety, sustainability and connection”

More specifically, he says, “an environmentally responsible history must be associated with [the stone],” and its mine of origin “must also be proven to protect worker safety, uphold human rights, pay fair wages and make positive cultural contributions to surrounding communities.”

The documentation must cover “every step and handover” throughout the chain of custody, all the way to the consumer, continues Guttery, whose Instagram gallery @thirdcoastgems has been reporting on ethically sourced stones since 2012.

“Such evidence-based records guarantee that a diamond or other gem material is being accurately represented.”

Today, all standards and requirements for certifying responsibly sourced diamonds are based on the same globally authoritative document, according to earth scientist Laurent E. Cartier of the Swiss Gemmological Institute (SSEF).

That document is the Organisation for Economic Cooperation and Development’s “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.” Published in 2016, it “provided a foundation which those in the diamond industry have been building upon ever since,” Cartier explains.

Indeed, there is a growing number of guarantees, third-party certification systems and blockchain platforms that can help ensure a given diamond is neither a blood diamond nor one used as currency in an illegal transaction.

SETTING AN EXAMPLE: BOTSWANA AND CANADA Nigerian-born, London-based luxury jeweler Thelma West welcomes the industry’s efforts to create a more transparent and responsible diamond DIAMONDS.NET

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OCTOBER 2020 17

COVER

“[The mine of origin] must be proven to protect worker safety, uphold human rights, pay fair wages and make positive cultural contributions to surrounding communities” trade. As both a designer and a diamond dealer, she relies on different methods for ethically sourcing and supplying goods, including upcycling old mine-cut diamonds from antique jewelry. When it comes to newly mined specimens, there are only two countries she trusts as origins.

“Documented responsible mining practices, fair wages and humanitarian efforts are the main reasons why diamonds mined in Botswana and Canada are recognized as responsibly sourced and ethically produced,” West explains. In those countries, “diamond-powered revenue funds hospitals, social infrastructure and education.

These, together with economic stability, work to improve the lives of millions of people in mining regions, especially in Africa.”

International watchdog group Transparency International corroborates this positive assessment of Botswana, rating it Africa’s least corrupt nation.

Canada, meanwhile, is home to some of the world’s strictest environmental regulations.

“It is important that these responsible practices continue to multiply and that more organizations and governments follow these positive examples,” says West. “In this way, traders, dealers and manufacturers will be able to buy diamonds not just from Botswana and Canada, but from a wider market.”

DIGITAL SOLUTIONS Among the various guarantees and certification schemes to ensure ethical sourcing, traceability programs such as blockchain ledgers and the Gemological Institute of America’s (GIA) diamond origin reports “are still relatively new within the industry,” according to Brilliant Earth’s Gerstein.

Some manufacturers classify their diamonds as “responsibly sourced” and/or “conflict-free” because they buy stones with Kimberley Process (KP) certification, but this may fall short of satisfying many in the trade, she adds.

“The Kimberley Process defines conflict diamonds as those that finance rebel movements against recognized governments,” she elaborates.

It never addresses “whether diamonds have been tainted by violence, human rights abuses 18 OCTOBER 2020

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S TA N D A R D BEARER

ne of the newest and most rigorous thirdparty certifications for natural diamonds comes from SCS Standards, an arm of Scientific Certification Systems (SCS) Global Services. The California-based company has developed the SCS-007 Certification Standard for Sustainably Produced Diamonds.

The aim is to “establish a uniform, credible basis for independently assessing and certifying the sustainable production of gemstone-quality diamonds, and for supporting business and consumer-facing claims for such diamonds,” according to its website. Covering both mined and lab-grown diamond production, the standard tracks the chain of custody all the way through to the consumer.

To receive SCS-007 certification, companies must provide evidence that they are meeting stringent requirements consistent with international norms for worker health and safety, as well as the absence of child, slave and underpaid labor.

Among other things, they must ensure that policies are in place to protect air and water resources, as well as sensitive ecosystems and species; to restore and reclaim disturbed lands; and to neutralize the climate footprint of diamond production by eliminating pollutants and restoring the earth’s natural heat balance. The certification also documents that a diamond is conflict-free and was responsibly sourced.

SCS-007 “is able to supply with 99% accuracy a completely traceable journey of a natural diamond,” declares Stanley Mathuram, vice president of global business for SCS. How the diamond companies interact with the surrounding communities is another part of the equation. SCS requires them “to provide evidence of respect for human rights and support for the rights of indigenous people, [and to] prove that they practice good company governance and engage effectively and positively with their local communities,” says Mathuram. “Once a company receives certification, SCS gives back by donating 10% of each certification fee to artisanal mining communities.”

Pilot participants in the program include jewelers Helzberg and Swarovski. While SCS is finalizing the language of the certification document in October, reports Mathuram, companies can already begin applying, and SCS plans to issue the first certifications in November.

or poverty.” As such, no one can know for sure if a KP-certified diamond comes from a mine that pollutes the environment, or from operations that use child labor, underpaid labor or even slave labor.

Concerns like these are why professionals who want to establish diamonds’ provenance and authenticity are buying into platforms like Tracr, the end-to-end blockchain traceability program the De Beers Group has developed in collaboration with 12 manufacturers and retailers. In addition to providing a secure digital ledger of transactions, Tracr utilizes artificial intelligence and the “internet of things” — the network of “smart” devices that populate people’s environments — to let parties throughout the supply chain access the ledger via their phones, tablets and computers. It also has controls in place to ensure security and privacy.

Tracr participants include the Hong Kong-based Chow Tai Fook Jewellery Group, and Signet Jewelers, the US’s largest diamond jewelry retailer.

Another popular blockchain platform for diamonds is Everledger, which counts Brilliant Earth among its users. “Brilliant Earth has partnered with Everledger to offer blockchainenabled diamonds at scale,” says Gerstein. The technology “has been integrated with our supply chain to seamlessly and securely track gemstone origin and provide greater consumer assurance [regarding] responsible practices.”

The benefits of blockchain “can extend far beyond ensuring chain of custody,” according to Lisa Koenigsberg, president of New York-based think tank Initiatives in Art and Culture (IAC).

“This technology can also document ownership, demonstrate authenticity, and be leveraged to redress social and economic inequities.”

That said, Koenigsberg — whose group produces conferences and webinars on responsibly sourced gemstones and gold — observes that any information in a blockchain ledger will only be as truthful as the person who makes the entry.

WORTH THE EFFORT Creating a sustainable supply chain is a complicated, resource-intensive and expensive process. “It requires a systemic approach to develop and set forth clear guidelines and protocols with suppliers that regularly validate their practices,” comments Gerstein. “Implementing a blockchain system also requires additional resources to incorporate the technical requirements with the supply chain.”

Nonetheless, these efforts pay off, she stresses.

“Establishing a transparent and ethical supply chain is a necessary and worthwhile endeavor. Once it has been established, additional investments are less significant, and organizations can reap the benefits for years to come.” ◼

THE GEMSTONE PERSPECTIVE

T

he first blockchain program for tracking the origins of colored gemstones launched in 2019. Part of a long-term initiative by the Switzerland-based Gübelin Gem Lab, the Provenance Proof platform provides the industry with a free tool that documents each transaction a gemstone undergoes before it reaches the consumer.

Parlé Jewelry Designs in Pocatello, Idaho, is one of the program’s participants. “None of our colored-gemstone suppliers use blockchain technologies as of yet, but we recently signed up for the Provenance Proof blockchain platform,” says Jonathan Farnsworth, president of the family-owned jewelry manufacturer. “We encourage our cutters, suppliers and other colored-gemstone dealers to investigate blockchain platforms that may help them source with optimal evidence and transparency.”

While all of Parlé’s suppliers are carefully vetted, Farnsworth also visits mines to observe the environmental impact of their operations and to speak with miners.

“These visits allow us to assess, with our own eyes, how the

mine may be benefiting the surrounding community via educational, social and cultural programs,” he explains. “We also want to see what kind of safety equipment they are using, or not using.”

One of Parlé’s sources is Potentate Mining, which owns the Rock Creek sapphire mine in western Montana.

Potentate furnishes “a supply-chain warranty that confirms their environmental sustainability claims [and] documents their socially responsible community initiatives,” says Farnsworth, who has been to the site in the past.

While Covid-19 travel restrictions have made personal visits difficult, manufacturers and designers can research and query potential gem sources via Instagram DM, as well as FaceTime or Zoom calls. New York-based designer Ana Katarina Vinkler-Petrovic, for instance, uses FaceTime to connect with colored-gemstone dealers for her Ana Katarina brand, and UK-based jeweler Anabela Chan does the same to reach mines in Tanzania. The American Gem Trade Association (AGTA) is a reliable reference as well.

DIAMONDS.NET

WHAT YOU CAN DO How do you ensure you’re working with responsibly managed mines? Kerin Jacobs of New Hampshirebased diamond dealer The Raw Stone offers some advice.

• Request an up-to-date mining license from regional authorities.

• If a stone isn’t part of a traceability program, request photography and videography to chart it from rough through polishing. This also provides evidence of what’s happening at the mine and how workers are treated.

• Do your own due diligence. “I do everything in my power to hold myself up to my own standards,” says Jacobs. “These include confirming there is no child labor at the mines and no slave labor; that the mines are never located in environmental conservation areas like national parks; that the communities and the environment around the mines are being protected; and that workers are paid a fair wage.”

• Choose your guidelines, make them public, detail how you fulfill them, and be as consistent and transparent as possible.

“The more we educate our market, the better off we will all be,” Jacobs declares.

OCTOBER 2020 19

THE FINAL CUT

SPEAKING OF BESPOKE R A PA P O R T M AG A Z I N E A S K S : W H AT ’ S T H E M O S T I N T E R E S T I N G C U STO M P I E C E YO U ’ V E D E S I G N E D ?

B Y L E A H M E I R OV I C H

JACI SCHLEIGH

M A D I S O N W YCO F F

ALICIA ARNOLD

JEWELRY DESIGNER NELSON COLEMAN JEWELERS TOWSON, MARYLAND

JEWELRY DESIGNER FOX FINE JEWELRY VENTURA, CALIFORNIA

CUSTOM DESIGN DIRECTOR TINY JEWEL BOX WASHINGTON, DC

“The most interesting custom piece I’ve designed is a ring I call the ‘The Coffee Cup.’ To date, it is still my favorite because it is understated yet unique in design, with lots of meaning. From a distance, you would think it’s just a traditional threestone engagement ring. But when you look closer, you see that the side diamonds are bezel-set in coffee cups. It is the perfect ring to represent this couple’s history. They first met at his coffee shop; she would come in for coffee every morning before heading off to work. Their relationship blossomed from there and brought him to meet with me for an engagement ring.... My creative wheels began turning, and we collaborated to create [this] ring. The under-gallery detail of the center diamond is also the logo of the coffee shop. It is a one-of-a-kind conversation piece that lets them tell their love story every time it’s admired.”

“As a designer and artist, I adore the Art Nouveau movement. One of my favorite artists, Alphonse Mucha, is known for his illustrations of elegant women in soft pastels and fantastic jewels. They’re often depicted like Venus, gracing the world in the midst of nature. It inspires whimsy, like it’s come straight out of a fairytale. I was thrilled when I was asked to design an Art Nouveau-inspired ring for my client’s heirloom opal. I wanted to capture the same elegance and simplicity that enchanted me in Mucha’s illustrations, with soft colors and whimsical curves. The pairing of enamel with the 14-karat rose gold denotes elements of both spring and fall, like a changing leaf, and also pulls forward the different flashes of color from the opal. It represents change, and the journey the opal and wearer have traveled, as well as the fantastic journeys to come.”

“One of my favorite custom projects began with an email stuffed with perfect phrases.

‘My girlfriend is an entomologist and loves insects,’ and ‘I’m looking for a design inspired by the American burying beetle (Nicrophorus americanus),’ as well as ‘I’d like the ring to subtly show off the beetle, but also look like an engagement ring.’ He graciously included pictures of the beetle.

Any day that begins with a request for a beetle engagement ring is going to be a great day. I presented several sketches, he picked a lovely option. After I cast into platinum, we engaged in a series of conversations about which technique I was going to use to show the beetle’s colored spots (we went with a single-direction florentine). While I’m proud of the ring, I’m even more proud of maintaining my professional demeanor.... All in a day’s work for a custom jeweler.”

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