Rapaport Magazine - July 2021

VOL. 44 NO.7 JULY 2021

The diamond trade is enjoying the fruits of a rallying market, but it needs to cultivate strong foundations to keep the momentum going A NA LYS I S

AU C T I ON S

E STATE

GE M STO NE

MARTIN RAPAPORT ON WHAT SUSTAINABLE GROWTH LOOKS LIKE FOR THE INDUSTRY

STUNNING STONES AND ROYAL HISTORIES: THE BEST OF GENEVA AND HONG KONG

FORGET DEMURE JEWELS – THE BIG AND BOLD STYLES OF THE RETRO ERA ARE BACK

RARE, BREATHTAKING BURMESE RUBIES RULE THE COLORED-GEM WORLD

CONTENTS VOL. 44 NO. 7 JULY 2021

37 EDUCATION

IN-DEPTH

SSEF’s new online courses are a helpful gateway to the world of diamonds, pearls and colored gems.

8 NEWS Key stories and stats.

COVER

STYLE & DESIGN

14 SUSTAINABLE

38 JEWELRY

Factors such as US fiscal policy and Chinese jewelry demand are boosting the market for now, but inflation and other complications lie ahead.

Hardstones are experiencing a revival, especially in high jewelry and timepieces.

16 THE ROAD TO RECOVERY

The industry is in its healthiest state in over a decade. It will need to be proactive if it wants to maintain that progress.

19 NEXT ON THE

HORIZON

The five themes defining the diamond market this year, and likely beyond.

22 AUCTION REPORT Magnificent Jewels sales in Geneva and Hong Kong: Analysis and results.

RETAIL

32 RETAIL PROFILE Getting to the root of what clients want is the specialty of Carter’s Jewelry in Petal, Mississippi.

34 RETAILRAP Even a worldwide pandemic couldn’t dampen the creative spirit, but launching a collection during Covid-19 meant jewelers had to be flexible. Meet three brands that made the most of it.

DIAMONDS.NET

CONNOISSEUR

40 STYLE From flower power to love beads, the motifs and rebellious looks of the 1960s have made a comeback in today’s designs.

42 PAGE

42 DESIGNER Eschewing the simplistic and abstract, Alexandra Abramczyk creates vibrant, lifelike collections inspired by nature.

MARKETS & PRICING 59 TRADE REPORT

44 LEGACY

Prices still high.

A new book celebrates London dealer Tadema Gallery and the exceptional jewels that have made it a favorite of collectors.

60 USA

47 ESTATE JEWELS

67 HONG KONG

Dealer Steven Neckman hails the return of bold Retro styles.

48 COLORED

64 INDIA 65 ISRAEL 66 ANTWERP 68 DIAMOND DATA 73 PRICE LIST 85 RAPNET PRICE LIST

GEMSTONE

From sourcing the rarest rubies to auction records and newcomers: Your essential guide to July’s powerful birthstone.

94 DIRECTORY 98 CALENDAR 100 THE FINAL CUT

IMAGES: ALEXANDRA ABRAMCZYK; ANTHONY FRIEND/GREENLAND RUBY. ON THE COVER: BARRY DOWNARD/DÉBUT ART

GROWTH

2 JULY 2021

48 PAGE

N OTE FROM TH E P U B L I SHE R TIME FOR CHANGE

Martin Rapaport PUBLISHER M ARTI N @RA PA P ORT.COM

I

t’s time for change. We will be reinventing, reimagining and recreating the way Rapaport develops and shares information. Our commitment to presenting “Information That Means Business” ensures that we will let you know what is happening, why it is happening and how it will impact your business and bottom line.

The path ahead will be exciting as we integrate Rapaport print and digital communication. New technology will curate content so that you can get the information you want, when, where and how you want it.

Our theme this month is sustainable growth, with articles about our expectations for the future of our industry post-Covid-19. August will be about social responsibility in the jewelry industry — what’s happening and what should be happening.

I’d like to take this opportunity to thank our excellent editorial and operations team.

Don’t miss our JCK presentations, live and online, on Sunday, August 29: the Rapaport Breakfast from 8 to 10 a.m. and the Social Responsibility Conference from 1 to 4 p.m. Register now at rapaport.com/jck21.

I look forward to serving as your new Rapaport publisher and encourage you to contact me at martin@rapaport.com.

DIAMONDS.NET

JULY 2021 7

A N A LY S I S

SUSTAINABLE GROWTH Factors such as US fiscal policy and Chinese jewelry demand are boosting the market for now, but inflation and other complications are on the horizon.

B Y M A RT I N R A PA P O RT

T

he diamond industry has come out of the Covid-19 pandemic much better than expected. While many have gone through and continue to go through extremely difficult times, some companies, particularly large firms, have prospered. For the first four months of 2021, total Indian polished exports were up 76% year on year, US polished imports rose 56% and rough sales at Alrosa and De Beers increased 73% (see graphs).

Covid-19 shutdowns created extreme polished shortages as Indian factories sharply reduced production. The combination of better than expected polished demand and reduced supply caused a surge in polished diamond prices. The post-coronavirus economic bounce-back has not been limited to the diamond and jewelry industry.

Government stimulus created a broad increase in demand that has impacted the financial markets.

The US S&P 500 went up 38% over the last year, and the 1-carat RapNet Diamond Index (RAPI™) went up 19% (see graph).

The big questions: Will growth continue? Are higher polished prices sustainable? What can we expect for the future?

“THE BIG QUESTION: WILL GROWTH CONTINUE?” 14 JULY 2021

DIAMONDS.NET

It’s helpful to think in terms of stages or waves of growth driven by different factors. Ups and downs of supply interacting with ups and downs of demand. Diamond supply and demand interact with a broad range of economic, social and political forces beyond our industry. A booming stock market increasing the wealth effect, the millennial social trend against conspicuous consumption, a political decision to spend trillions of dollars — these can all have a major impact on diamond supply, demand and prices.

While we expect a short-term oversupply of diamonds as Indian manufacturing comes back online, the negative effect on polished prices will probably be mitigated by higher rough prices, which will keep replacement costs high as we move into the holiday season and demand rises.

Another vital factor supporting the diamond market is US monetary and fiscal policy. The US government has already pushed out $2.8 trillion.

That’s $2,800,000,000,000, or $8,411 for every American. President Joe Biden is now talking about allocating another $4 trillion spend. While it’s not certain that the president will get to spend so much money, the markets are driven by expectations that US monetary and fiscal policy will stimulate significant consumer demand. Expectations and stock markets are at all-time highs.

We should also consider that US consumers will be creating significant Chinese economic growth.

As money moves to low- and medium-income US

US POLISHED IMPORTS (>0.50 CT.) $3,000

$ Millions

$1,500 $1,000 $500 $-

INDIA POLISHED EXPORTS $2,500 2019 2020 2021

$ Millions

$2,000 $1,500 $1,000 $500 $-

ALROSA AND DE BEERS SALES $1,200

2019 2020 2021

$1,000 $800 $ Millions

$600 $400 $200 $-

S&P 500 AND RAPNET 1-CARAT INDEX 7,800

4,500 1 CT. RAPI

S&P 4,000

7,400

3,500 7,000 3,000 6,600

S&P

consumers targeted by Biden, companies like Walmart, Amazon and similar sales channels will increase the sale of goods imported from China.

US stimulus is China stimulus.

Since the US and China are the two most important diamond markets, we expect to see robust diamond and jewelry demand for the balance of 2021 and possibly well into 2022 depending on the level of US economic stimulus.

The short-term outlook — the one-year outlook — is very good to excellent.

The long-term outlook is more complicated.

At some stage, the party will be over. The overstimulation of the economy will have consequences. Inflation is on the way, and higher interest rates are not far behind. The current low interest rate regime is unsustainable. Higher inflation and interest rates are to be expected.

So are their consequences; increasing taxes, economic socialism, currency warfare, and social and economic digitalization are all on the horizon.

It should be clear that no tree grows to the heavens. Our industry will face new realities, opportunities and challenges. While the road ahead will be vastly different than the current situation, some underlying values will remain the same. That is what our industry should concentrate on.

The role of meaningful gifting, diamonds as a store of value in an inflationary environment, social responsibility, personal human interaction, and the sharing of values — all of these things will remain. How our diamond and jewelry trade serves these needs and desires — that will change.

The challenge for our industry is to identify and be relevant to the future needs and desires of our customers. Do that and you will be successful, come what may.

To learn more, attend the Rapaport Breakfast and Social Responsibility Conference at JCK Las Vegas on August 29, 2021, from 8 to 10 a.m. and 1 to 4 p.m. Pacific time. Register at rapaport.com/ jck21. Proceedings will be available live online. ◼

$2,000

RAPI™

“THE SHORT-TERM OUTLOOK IS VERY GOOD TO EXCELLENT”

2019 2020 2021

$2,500

2,500

6,200

2,000

To comment on this article, please contact martin@rapaport.com DIAMONDS.NET

JULY 2021 15

COVER

THE ROAD TO RECOVERY The diamond industry is in its healthiest state in over a decade, but it will need to be proactive if it wants to maintain that progress.

B Y AV I K R AW I T Z

16 JULY 2021

DIAMONDS.NET

T

here is a buoyancy about the diamond market that has surprised many at the halfway point of the year. Considering the struggles the industry has endured in the past decade, diamantaires aren’t necessarily used to the positive forces shaping the trade in 2021.

“Coming off a difficult last year, there’s no doubt the diamond industry performed better than most [industries],” says Paul Rowley, executive vice president of diamond trading at De Beers.

“The market has shown remarkable resilience.”

Not that the industry grew in 2020; growth was still negative year on year, with jewelry retail sales down by about 10% to 12%, according to De Beers estimates. But by most accounts, the diamond trade — along with the broader luxury sector — gained market share during the pandemic as consumers spent less on travel and had more discretionary dollars for buying gift items.

RISING ENGAGEMENT

This year, the industry is already seeing strong growth. US jewelry sales surpassed pre-pandemic levels between March and May, according to Mastercard SpendingPulse. Revenue from the category was up 30% in March compared with the same month in 2019, followed by increases of 14% and 45% for April and May, respectively, the credit card research company reports. Diamond jewelry sales over those three months were 30% higher than in 2019 and were triple last year’s levels, according to estimates from the Natural Diamond Council (NDC).

China has similarly bounced back from the lows of the Covid-19 pandemic. Jeweler Chow Tai Fook registered its highest annual revenue and profit in seven years during the fiscal year that ended March 31. Sales in the second half were its strongest on record for any six-month period.

Such a robust retail recovery in both the US and China — the two largest markets for diamonds — “was probably better than we could have expected,” Rowley says. The rebound also stimulated demand for polished goods in the midstream — manufacturers and dealers — as jewelers needed to replenish inventory they’d sold.

On top of the sales growth, there has been a notable improvement in consumer sentiment toward diamonds, observes NDC CEO David Kellie, whose organization runs marketing campaigns to bolster the public’s desire for diamonds.

Millennials are heavily engaged with the product, he reports, pointing to social media and other digital metrics such as spontaneous Google searches. Indeed, the coronavirus forced the industry to invest in digital, setting a new normal for doing business, Kellie notes — though he says it still has a long way to go and needs to do a better job of converting the interest into sales.

IMAGE: SHUTTERSTOCK

SUPPLY SHORTAGES

In the midstream, steady trading and a positive mood defined the first half of the year. Yet there is still a debate over whether the force behind the recovery is a rise in demand, a shortage of supply, or a combination of the two.

Approximately 20% of supply made its way out of the system during the depths of the crisis, Rowley estimates. Manufacturers and dealers were able to diminish their inventory, selling online

“THE MODEL FOR SELLING CERTIFIED GOODS HAS COMPLETELY CHANGED, ESPECIALLY WITH THE PUSH TOWARD INTERNET-BASED BUSINESS” while freezing both rough buying and polished production for a relatively long time. Trading and manufacturing swiftly resumed as the spread of Covid-19 declined in the second half of 2020.

However, polished shortages emerged again when India experienced another wave of coronavirus infections this year, leading the government to impose restrictions on businesses in April and May. The diamond industry continued to operate, since it qualified as an essential service, but manufacturing output fell as many workers stayed away. A backlog of goods at the Gemological Institute of America (GIA) grading labs in Mumbai and Surat further aggravated the scarcities.

“Sourcing in certain categories is an issue,” remarks Russell Mehta, managing director of India-based manufacturer Rosy Blue. “The market is very shallow right now in those areas, and suppliers don’t have depth of inventory.” If there is a big order in the market from a large retailer, and those goods are difficult to find, it will naturally push the price up, he observes, adding that the scarcities are mainly in certified goods.

Elliot Krischer, chairman of the New York Diamond Dealers Club (DDC) and a partner at polished seller Esskay Gems, agrees that supply shortages are supporting the market. But he also sees high demand: Consumer spending went up after the government sent out stimulus checks, and people are now getting engaged again after putting off wedding plans during Covid-19. Those factors will continue at least until the end of the year, he predicts.

Rowley, for his part, believes “the fundamentals of the industry today are probably the best they’ve been for at least a decade.”

SLIMMING MARGINS

With demand outpacing supply in the first half of 2021, polisheddiamond prices have maintained their upward momentum. As of press time on June 24, the RapNet Diamond Index (RAPI™) for 1-carat diamonds was up 7.6% since the beginning of the year.

Furthermore, the polished shortages led to strong rough demand, even as rough prices increased and manufacturers’ profit margins slimmed. Rough prices have risen about 7.1% so far in 2021, according to Rapaport estimates, and by 13.6% since September and October 2020, when De Beers and Alrosa made the last of their pandemic-related price cuts. The two major miners had adopted a policy of keeping their rough prices stable and supply low in the early stages of the crisis, when people may not have had the liquidity or the courage to buy anyway, Mehta recalls.

But buying has been buoyant since August 2020 as jewelry retail and polished-diamond sales have steadily improved. The combined rough sales of Alrosa and De Beers more than doubled year on year to $3.9 billion during the first five months of 2021, and were 10% higher than in the same period of 2019. Both companies have reduced the inventory they built up during the pandemic. ▶ DIAMONDS.NET

JULY 2021 17

COVER

CHANGES IN SIGHT

Still, recent De Beers sights have not been excessively large, Rowley points out. The company sold $385 million worth of rough in May and $470 million in June. The relatively low sales are partly due to production constraints, with disruptions at mining sites in southern Africa and Canada, parent Anglo American reported in its first-quarter update.

On the global scale, production volume was down by about 17% year on year in the first quarter of 2021, according to Rapaport estimates. It was only from April onward last year that the spread of the pandemic started to weigh on the market, so the base comparison for that period was still strong; total output for 2020 ultimately dropped by about 18%. Since most mines have returned to full capacity by now, forecasts for the whole of 2021 show production rising about 4%. However, that’s still well below prepandemic levels, and the recent closure of the high-volume, lowvalue Argyle mine in Australia has further depressed production.

Another factor in De Beers’ lower sales is the company’s recent policy of selling according to actual demand levels — part of a drive to improve efficiency in the market. The reduced supply is helping the market align with the new normal, Rowley explains.

De Beers has divided its sightholders into three categories for the contract period that began on April 1: manufacturers, dealers, and “integrated sightholders,” its term for clients that are retailers. The company is providing more rough above 0.75 carats to beneficiation centers — countries like Botswana and Namibia, which want to cut and polish more of their rough locally to diversify their diamond industries beyond mining.

That means De Beers is prioritizing clients with factories in Botswana and Namibia, followed by the integrated sightholders that pay an added fee for more specialized services at the sight, explains one sightholder, who has requested anonymity. Next in line would be international sightholders, or those that only manufacture outside of beneficiation centers, and then dealers.

De Beers wants to see fewer boxes selling on the secondary market, and more going directly to manufacturing, the sightholder says.

De Beers’ client list for 2021 does include fewer dealers than before, according to a January report by Rapaport News. However, Rowley dismisses claims that the new policy is cutting out rough traders or the smaller manufacturers that rely on the secondary market for supply. “We spent a long time understanding where our rough is finally ending up and trying to consolidate the type of goods going to specific contractors and making sure they get the product they need,” he says. Besides, “we know that no one manufactures everything.”

There’s been “a change of dynamics in many different ways in the market,” he adds, resulting in “a tighter distribution and a more efficient route to market.”

THE HEARTBEAT OF MANUFACTURING

With all these efforts to tighten up the distribution system, some fear there may be job losses in manufacturing, particularly with the low-value Argyle supply no longer available. The Argyle rough required a different skill set, and no one else is going to replace those goods, comments a manufacturing executive who prefers to remain anonymous — though he acknowledges that lab-grown diamonds may fill that supply gap.

18 JULY 2021

DIAMONDS.NET

Both Rowley and Mehta expect Surat to remain the heartbeat of diamond manufacturing. India still adds value with its knowhow — including its expertise in smaller stones — as well as its infrastructure and lower labor costs, they maintain. And while De Beers may be the largest supplier of 0.75-carat and larger goods to beneficiation countries, rough from other miners — such as Alrosa and those that sell on the auction and tender circuit — is still going to India for polishing, Mehta notes.

E-COMMERCE IMPLICATIONS

The shift to a more efficient pipeline is also changing the market dynamic for polished dealers, particularly since manufacturers have invested heavily in improving their online sales platforms.

“The model for selling certified goods has completely changed, especially with the push toward internet-based business,” says Mehta. “That’s a trend that won’t be reversed. It’s now always going to be more direct selling to retailers all over the world.”

The DDC’s Krischer recognizes the trend but is confident that dealers will maintain their place in the market. “The dealer is the most necessary part of the diamond chain,” he emphasizes, arguing that only dealers have the network to guarantee a volume of similar diamonds for a retail program. They are also the ones willing to provide credit for the length of time that jewelers demand, and to offer goods on memo, he says.

In today’s market, everyone needs to consider where and how they add value to the distribution chain, states Mehta. “Maybe you can get away without it in the short term, but unless you’re bringing value, you will be forced out in the long term.”

PROACTIVE APPROACH

Concerns about market consolidation reinforce the need to increase consumers’ desire for diamonds, says the NDC’s Kellie.

“If we’re selling more diamonds, then 98% of the problems facing the industry go away,” he contends, noting that the trade is naturally pessimistic and tends to focus on trade-specific “distractions” such as pricing, bank financing, and the threat of lab-grown diamonds. Instead, he says, the trade should concentrate on how to grow demand.

While the industry has rebounded strongly from the coronavirus slowdown, Kellie notes that it has “massively underperformed” global economic growth over the last 10 years. To reverse the trend and keep the market share it gained in the past year, the trade must continue to raise its digital standing.

Until the pandemic, he stresses, the industry was not only lagging in the digital space, it had not adapted at all. While most point to the 2008 financial crisis as the start of the industry’s decline, Kellie notes that the e-commerce and social media revolution began around the same time, with the launch of the iPhone and the development of platforms such as Twitter and Instagram. “For me, there’s a direct correlation between our underperformance [and] the lack of expertise in digital.”

The good news is that diamonds are an amazing product, and the industry has a wealth of interesting stories to tell, Kellie continues; it just needs to be proactive. “It’s really up to us whether growth is going to last or not — how we invest as an industry, how we take on digital, [and] how we associate with the culture of travel and experiences that are expected to return.” ◼

NEXT ON THE These five themes are defining the diamond market this year, and likely beyond.

BY AVI KRAWITZ

IMAGE: SHUTTERSTOCK

H

aving adjusted to the major changes that occurred in 2020, the diamond trade is in an unusual position this year.

The market has diverged into two streams: those centers where the economy is open again, and those still facing sporadic outbreaks of the coronavirus.

Overall, the trade continues to benefit from the Covid-19 dynamic, as consumers are not yet spending on travel and experiences the way they used to.

They’re saving more, which leaves more dollars to spend on diamonds and other luxury items. But travel will return, and competition for discretionary spending will heat up again.

For now, the important consumer markets in the US and China are seeing a robust recovery in jewelry sales. At the same time, there is still a bottleneck of supply in India, the main polisheddiamond distribution center. That makes for a complicated and volatile market with supply and demand trends that are difficult to predict. Meanwhile, other dynamics are influencing the trade as well, requiring it to adjust to a new reality.

As we pass the halfway point of 2021, we have identified five themes that will characterize the market in the second half of the year and likely exert influence in the long term.

1

A

ll eyes are on the Gemological Institute of America (GIA) and its progress getting through the backlog of goods lined up for grading at its India labs.

As of press time on June 24, there was a four-week turnaround time in Mumbai and a five-week wait in Surat, according to the GIA website. The institute attributes the delays to a significant rise in demand for laboratory services.

“The increased sales in the US and China are driving much of this demand for GIA reports,” it told Rapaport Magazine in a recent email. “Online sales are up significantly and are dependent on trusted, independent grading reports.”

Indeed, the GIA says it’s grading more diamonds in India than before the pandemic. The number of stones it has graded in Mumbai and Surat this year, based on a weekly average, is up 37% from 2019 and 31% from 2020. However, the labs’ average weekly intake is 71% higher than in 2019, the institute says, and this makes it hard to catch up.

“In all locations, we are working six days a week in multiple shifts at the maximum allowable capacity to meet demand for our services as best we can,” the GIA states. ▶

THE GIA BOTTLENECK

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JULY 2021 19

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2

U

ncertainty remains as to whether there will be a sudden influx of goods when the GIA backlog diminishes, a scenario that could push prices down. However, Elliot Krischer, president of the New York Diamond Dealers Club (DDC), believes manufacturers will still maintain their polished prices if such an influx occurs, as they want to protect their margins against the current high cost of rough.

The release of the GIA goods will also likely coincide with an uptick in demand as jewelers prepare for the holiday season, but even with that recovery, the trade can expect rough supply to stabilize below prepandemic levels. The mining companies are leading a drive toward a more efficient supply chain, which means offering their clients fewer but more targeted goods.

VARIATIONS IN SUPPLY

3

T

he US recovery owes much to the government stimulus checks that have boosted consumer sentiment. Add those to the money the average mid- to high-income household was able to save during the pandemic, plus the wealth that resulted from the stock market’s rebound, and Americans eager to get back to shopping now have money to spend on discretionary items.

Still, this boom will not last. The threat of the pandemic will dissipate — along with the savings — and normality will return to the market.

There are growing concerns about inflation and an already weakening dollar. To combat this, the Federal Reserve is slated to raise interest rates in 2023 — a move that typically reduces the amount of money circulating, since loans become more expensive to take out. Higher interest rates also tend to boost investor demand for dollar-based assets, as they can get a higher yield with their money in the bank.

For now, the weaker dollar benefits foreign dealers and manufacturers who buy and sell with the greenback, as it leaves them with more of their domestic currency to cover local expenses.

ECONOMIC FACTORS

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5

MARKETING CAMPAIGNS

A

4

fter over a decade of little to no investment in diamond category marketing, the industry launched the Natural Diamond Council (NDC) in June 2020 to replace the Diamond Producers Association (DPA). With former watch-branding expert David Kellie at the helm, the organization changed tracks to focus on content, driving traffic to its Only Natural Diamonds website and upping its engagement on social media channels.

Funded by seven leading miners, the NDC is also partnering with retailers to help them attract customers to their stores and increase consumer interest in diamonds. At the same time, it’s continuing to release ads via traditional channels like print and TV. The council has already filmed its holiday advertising campaign, which will feature actress Ana de Armas (pictured) as the NDC ambassador for the second consecutive year. The campaign is set to launch in mid-September, coinciding with the October release of the new James Bond movie, No Time to Die, in which de Armas stars. ◼

ENVIRONMENTAL FOCUS

IMAGES: SHUTTERSTOCK; NATURAL DIAMOND COUNCIL (NDC); DE BEERS

S

ustainability has become a central theme for the diamond and jewelry market. Consumers are demonstrating a growing preference for products and companies that care about the planet. Guided by the United Nations’ Sustainable Development Goals (SDGs), the industry has made a concerted effort to ensure it contributes positively to society. It has developed various traceability programs to assure consumers that their diamonds have done no harm on their journey through the supply chain.

In the past, these efforts would most often come in response to claims about conflict diamonds or humanrights abuses. Thankfully, the sector is now taking a broader and more proactive approach. Environmental issues have surfaced as a core talking point in public relations.

Mining companies are showcasing their contributions to conservation projects, and more entities have set goals to achieve net-zero carbon emissions over the next decade.

Negative claims about the environmental impact of mining have also sparked a wider acceptance of lab-grown diamonds — though whether they’re actually greener than natural ones remains a bone of contention. Still, the industry is increasingly investing in these issues not simply to refute claims, but because it is the right thing to do.

DIAMONDS.NET

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THE FINAL CUT

THE ROAD NOT TAKEN Rapaport Magazine asks four industry insiders: What opportunity in life do you most regret passing up?

BRANKO DELJANIN

HAR SH M AHE SHWARI

PRESIDENT AND HEAD GEMOLOGIST, CGL-GRS SWISS CANADIAN GEMLAB

EXECUTIVE DIRECTOR, KUNMING DIAMONDS

A

fter completing my academic career, I received an offer to lead a gemstone mining company’s project in Mozambique. I declined it, as I was eager to get a head start on evolving the family business, trading in the niche of colored diamonds.

I was able to dive right into the day-to-day and improve the gaps we had over the years internally and externally. When I look back and wonder what could have been, I realize the importance of working in a professional environment and deepening my foundational experience and knowledge of different aspects of the trade, so that I could have brought more to the table.

JOE MENZIE GEMSTONE DEALER

I

wish I could have finished and executed a plan that would grow the consumption and purchase of gemstones in newer consuming markets like China. China was a closed market for loose [stones] and gemstone-set jewelry at the turn of the century in 2000. The threshold for entry was formidable. There was no understanding of genuine colored gemstones, simulants were prevalent, [and] there were heavy tax codes on imports. I was president of the International Colored Gemstone Association (ICA), and I made multiple trips to China, met with government officials in Shenzhen, Guangzhou and Beijing. China celebrates multiple occasions where gifting is considered a requisite.

I thought to annex [these] life-cycle events to the purchase of gemstone jewelry.... My belief was, if we could get it right in China — attaching gemstones to gifting, surrounded with emotions of love and family — we could take this platform to other consuming markets. I was not able to finish this dream; my tenure as ICA president passed. Wilson Yu, ICA president from Hong Kong, followed and did establish the market.

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ADRIANNE SANOGO COFOUNDER AND EDUCATION CHAIR, BLACK IN JEWELRY COALITION (BIJC)

I

passed up a truly amazing opportunity about 10 years ago. While treasure hunting in one of my favorite flea markets, I came across an antique white jade pendant that was peeking out from under a pile of jewelry. I turned it down because, quite frankly, I was being cheap. Later that week, I saw a similar pendant in Neiman Marcus for 300 times the amount — yes, that’s right, 300 times! I raced back to the flea market that weekend, only to find it had sold hours before I arrived. The owner informed me that the pendant had been in his store for years, and because I had dug it out, it was suddenly visible for all to see and had naturally captured the eye of a very fortunate buyer. Best practice for me when I am treasure hunting is to trust my instinct about what puts a twinkle in my eye.

COMPILED BY LEAH MEIROVICH

O

ne of my biggest professional regrets is that I did not pursue a master’s/doctorate degree in physics or gemology. After my research on identification of colored High Pressure-High Temperature (HPHT) treated diamonds in 2000, I presented my results at the European Diamond Conference, where I was the only person without a “Dr.” title. I found that Prof. Dr. Emmanuel Fritsch offered a university degree in gemology (DUG), and [I] went to Nantes University [in France] to study and defend my thesis on HPHT-treated diamonds in front of three professors. I was advised to study for a master’s/doctorate degree in physics to better understand defects in diamonds [amid new developments in] synthetic diamonds and post treatments. However, that year, I met my wife in New York, and in 2002 became a father and moved to Canada, where I am happy. I still do research on diamonds and publish books.