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News

  1. Lab-Grown Diamond Symposium to Take Place in Dubai
  2. JCK Industry Fund Announces 2023 Grant Recipients
  3. GIA Announces Jewellery Design Award Winner
  4. Hong Kong’s Luxury Retail Sales See Highest Rise in Three Years
  5. Chow Tai Fook Announces First Chief Operating Officer
  6. HKTDC Twin Shows Signal Hong Kong Comeback
  7. De Beers Profit Rises in 2022
  8. Rio Tinto Invests $40M in Diavik’s Underground Mining
  9. Gübelin Gem Lab Taps AI For Coloured Gemstone Grading
  10. Vicenzaoro January Exceeds Expectations With Record Attendance
  11. Fancy-coloured Diamonds Outperform Main Markets in 2022, says FCRF
  12. Gucci To Receive Gem Award From JA
  13. Gold Demand In 2022 Soars to A New Decade High, Says WGC
  14. GIA Launches AGS Ideal Report
  15. RJC Appoints New Executive Director
  16. Rio Tinto Production Jumps After Diavik Buyout
  17. Charles Stanley To Retire From De Beers
  18. Tiffany Joins LVMH Watches And Jewellery Division
  19. End-Year Diamond Prices Decline, says RAPI
  20. GIA’s Paperless Journey Begins
  21. Vicenzaoro January Reimagines Fine Jewellery Designs
  22. Gen-Zers favour personalisation over popularity
  23. De Beers Rough Sales Steady At Year End Final Sight
  24. Gemfields Emeralds Take Centre Stage in New Jewellery Collaboration
  25. A 303-carat Golden Canary Shines at Sotheby’s New York Sale
  26. Christie’s New York auction totalled nearly $59M
  27. Pantone’s Color of the Year 2023: Viva Magenta
  28. Christie’s Hong Kong Jewellery Auction Fetched $46M
  29. Gemfields’ 187,775-carat Emerald Cluster Sets Record Price
  30. Yellows Showed Highest Increase in Q3 Fancy-Colour Price Index
  31. GIA Joins Watch & Jewellery Initiative 2030
  32. David Yurman Features First Celebrity Ambassadors in Holiday Ad Campaign
  33. Gemfields To Auction 187,775-carat Emerald Cluste
  34. De Beers Announces Hollywood Star as First Global Ambassador
  35. Kering Q3 Jewellery Sales Remain Strong
  36. Rio Tinto Unveils First Argyle Brand Jewellery
  37. De Beers CEO Bruce Cleaver to Step Down in Early 2023
  38. Price Decline Fuelling Diamond Trade Uncertainty
  39. ‘Williamson Pink Star’ Diamond Sold at New Auction Record
  40. Pandora Unveils First Ever Art Collaboration - Keith Haring X Pandora
  41. Further Growth in Hong Kong’s Luxury Retail Sales
  42. Pandora Unveils First Ever Art Collaboration - Keith Haring X Pandora
  43. Further Growth in Hong Kong’s Luxury Retail Sales
  44. Platinum Jewellery Sales Rise in Key Markets in Q2 2022, PGI says
  45. AGTA Announces New Board Members
  46. Fura Gems Discovers 101-carat Ruby
  47. Lightbox Sells Lower-Quality Lab-Grown Diamonds
  48. 160-Carat Rough Unearthed from Angola Mine
  49. GIA Found Synthetics, Simulant among Four ‘Natural’ Sapphires
  50. ‘De Beers Blue' Might Originate from Deep Earth, Says GIA
  51. New Chairman Elected at India’s GJEPC
  52. Tiffany Launches Its First All Gender Bangle Collection
  53. Pandora Launches Lab-grown Diamond Jewellery Collection in North America
  54. Gemfields Reports Record Revenues
  55. IIJS Premiere Sees Record Number Visitors
  56. Signet Acquires Blue Nile for $360M
  57. Hong Kong jewellery sales slide in H1
  58. Fancy Colour Diamond Price Index Rises
  59. The Potentially Largest Pink Diamond Found in 300 Years
  60. Kering Reports Strong First Half Jewellery Sale
  61. Vicenzaoro Back In September
  62. eBay Offers Fine Jewellery Authentication with GIA Partnership
  63. New Executive Director and Secretary General Appointed for Watch & Jewellery Initiative 2030
  64. VO Vintage Returns To Vicenzaoro September
  65. Sarine Partners With NGTC on Grading Reports In China
  66. Diamond Prices Slide Amid Economic Uncertainty
  67. De Beers, Botswana Sales Agreement Extended
  68. AWDC Appoints David Gotlib As New President
  69. IGI Debuts Online Learning Courses
  70. Swarovski Appoints First Non-Family CEO
  71. Kashmir Sapphire Ring Comes Out on Top at Bonhams
  72. WJA Foundation Launches New Scholarship for Women of Colour
  73. Blue Nile Merges with Mudrick for Its Second IPO
  74. RJC Launches ‘Gender Equality Toolkit’ at JCK Las Vegas
  75. GIA Reports to Go Digital by 2025
  76. Gemfields Achieved Highest Revenue at Emerald Auction
  77. DAMAC Group Now Owns de GRISOGONO
  78. GJEPC Proposes Lab-Grown Diamond Park in India
  79. Pandora’s New Crafting Facility in Vietnam Costs $100M
  80. Q1 Gold Jewellery Demand Soft, Says WGC
  81. Jewellery Buying Groups Formed New Global Alliance
  82. Singapore to Host Jewellery & Gem World 2022
  83. ‘Wonder Woman’ Gal Gadot Premiered in Tiffany’s 2022 High Jewellery Collection
  84. Christie’s to Auction ‘The Light of Africa’ for $18M in June
  85. New Board of Directors were elected to Jewellery Exporters Association of Turkey
  86. Oroarezzo back with Première Competition
  87. ‘De Beers Blue’ auctions US$57.5M at Sotheby’s
  88. CTF launches Mother’s Day collection
  89. Jewelers of America Announces The 2022 CASE Award Winners
  90. De Beers: Diamond Businesses Staying Cautious About Business Expectations
  91. Synthetic Alexandrite Pioneer David Patterson Dies at 89
  92. 205 CARAT FANCY INTENSE YELLOW DIAMOND GENEVA MAGNIFICENT JEWELS | 11 MAY 2022
  93. Rebecca Foerster Appointed As President of Hearts On Fire
  94. US Steps Up Sanctions Against Alrosa
  95. PGI Study Findings: Consumers Have Different Interpretations of Sustainability
  96. Irving Wong Appointed as Pandora’s General Manager For China
  97. Rolex’s 6 New Watches Unveiled at Watches & Wonders Geneva
  98. Sixième Sens par Cartier High Jewellery: Heteractis Ring
  99. Will Russian Diamond Ban Help Foster Lab-Grown Diamond Business?
  100. Press Release: Ariana DeBose, Hunter Schafer and Zoey Deutch Shine in De Beers Jewellers at the Vani
  101. Press Release: Ariana DeBose, Hunter Schafer and Zoey Deutch Shine in De Beers Jewellers at the Vani
  102. JEWELLERY GENEVA Takes Place between 30 March and 3 April 2022
  103. Christie’s Presents 228 carat White Dimond
  104. Gold Bar Integrity Programme to be Implemented
  105. Press Release: BONHAMS ANNOUNCES ACQUISITION OF BRUUN RASMUSSEN AUCTIONEERS – DENMARK’S LEADING AUCT
  106. Early Spring Fashion for Natural Diamonds
  107. Jennifer Garner Shines in De Beers Jewellers at the Premiere in New York
  108. To celebrate its 15th anniversary, “Cartier Women’s Initiative Impact Report”
  109. American Gem Trade Association Announces Partnership with JCK Show Again
  110. Chow Tai Fook and Canada's Mountain Province Diamonds Sign Supply Agreement
  111. Registration Is Open for 2022 JCK Show
  112. Alrosa Caught Up in U.S. Sanctions
  113. Tawhid Abdullah Receives Lifetime Achievement Award
  114. The Largest Blue Diamond Appears at Sotheby’s Auction
  115. Price Rise for Nearly 90% Of Fancy Colour Last Year
  116. Dickson Yewn’s Collectibles Given for Sotheby’s Charity Auction
  117. De Beers Boosts Production
  118. Watches & Wonders Geneva To Be Held In Hybrid Format
  119. Jewellery, Gem & Technology Dubai to Debut February
  120. Hong Kong Losing its Dominance as the World's Largest Watch Market
  121. Gift Guide for CNY
  122. Press Release: Sotheby’s Announces New Appointments To Luxury Team In ASsia
  123. Georg Jensen Becomes a Certified Member of RJC
  124. 555.55-carat Black Dimond Unveiled at Sotheby’s Auction
  125. GIA Appoints Anna Martin as SVP for Institute, Industry Relations
  126. Alrosa Boosts Direct Sales of Fancy Diamonds to Investors
  127. CIBJO General Assembly postponed to March 17 and 18, 2022
  128. 7,525 Carat Emerald Discovered
  129. Karl Lagerfeld Jewellery Collections to Shine
  130. Diamonds Travel To The Space
  131. Vicenzaoro January postponed to March
  132. America’s Youngest Jeweller Starts Business via Instagram
  133. Concerns over conflict gold arise again
  134. The 1st International Gemstone & Diamond Trade Summit Wraps Up in Macao
  135. The Knot’s Study:Over 30% of Respondents Say Natural Diamond Unimportant
  136. Pantone’s 2022 Colour of the Year: Very Peri
  137. Phillips Jewellery Auctions Fetch over HK$181 Million
  138. The World’s First Pure Gold Castle of Magical Dreams by CHOW TAI FOOK
  139. Jewellery Sales Jumped 78% During the Thanksgiving Holiday
  140. Gem Auctions DMCC’s Debut Auction Successful
  141. Cartier’s Christmas Tree Lights Up the City with Love and Hope
  142. Rediscovering Lacloche in Hong Kong
  143. Blue diamonds to lead Christie’s HK autumn sale
  144. JMA show to stage next Thursday
  145. HK auction to help Cambodian kids
  146. Basel fair cancelled again
  147. HKDI show to continue in Dec
  148. Gemfields sells 7,500-carat emerald for good
  149. Sustainability is key to diamond purchases, a report says
  150. Christie’s Geneva jewellery sale fetches CHF53.7m
  151. Cibjo forms working group on fei cui standards
  152. Only Watch raises CHF30m for DMD research
Read More...


HIGHLIGHT

  1. US market unfolds changes and potential
  2. The queen of gems, the gem of queens
  3. Classics return

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  • Coloured gemstones offer myriad possibilities for designers, such as this pair of gemstone earrings in gold accented by diamonds by Caratell. (Photo: Caratell)
  • With the high price of gold, jewellers are turning to silver, which is often plated with black ruthenium and yellow gold as is this bracelet by Jorge Revilla. (Photo: Jorge Revilla)
  • Ring in blue topaz and gold-plated silver by Vianna Brasil, a brand that formerly only created designs in 18K gold. Owner Ricardo Vianna explains that using vermeil can bring the price down 70 to 90 percent. (Photo: Vianna Brasil)
  • Links in both bracelets and necklaces were prevalent on the fashion catwalks this season. Carla Amorim has it in gold and diamonds. (Photo: Carla Amorim)
  • Y-necklaces are a definite design direction for 2020. This delicate lariat was created by Sorellina in black onyx, gold and diamonds. (Photo: Sorellina)
  • Stephen Webster recently joined the lab-grown diamond mini-wave with his collaboration with Atelier Swarovski. Shown here is his gold and rose quartz ring featuring Swarovski-created diamonds. (Photo: Atelier Swarovski)

2020 – A new decade for gems & jewellery

By Cynthia Unninayar 

As we enter a new decade, the gem and jewellery industry faces both opportunities and challenges. On a global basis, the sector is valued at around $330 billion, as indicated by research at Bain & Company. Of this, about 7 percent (US$25 billion) can be considered luxury jewellery, 62 percent (US$205 billion) premium jewellery, while mass jewellery accounts for the rest (30 percent at US$100 billion).

The world’s largest market for luxury jewellery is the United States, while the largest market for fashion pieces is China, which is also the world’s largest consumer of pearls, fei cui, gold and coloured gemstones. In the Asia-Pacific region, consumers spend nearly 50 percent more per piece of jewellery than in other regions.

On the positive side, the global jewellery market is expected to increase over the next few years, even if only modestly, due to an increase in the number of women in the workforce and rising per-capita GDP reflected by a growing middle class around the world. By 2021, Euromonitor International estimates that fashion jewellery sales will grow by 2.6 percent per year, with luxury jewellery growing by 2.2 percent. Statistica notes that US jewellery sales will grow 2 percent a year for the next two years. Higher annual growth in fashion jewellery, though, is expected for India (8.4 percent) and China (3.5 percent). The growth rate for the global industry by volume is expected to be slightly higher at 3 percent per year, suggesting that more jewellery will be purchased, but that consumers will pay less for each piece.

Because the global gems and jewellery industry is so fragmented, this article takes a look at the various sectors of the industry and the major factors influencing them.

Diamonds
Diamond jewellery reigns supreme, by far, in the global jewellery sector, with a value of US$80 billion, with nearly half the demand from the United States. Yet, the industry is facing a number of challenges. According to Bain, the sector is feeling softer demand for polished and rough diamonds, driven by geopolitical and macroeconomic tension that lowered consumer confidence as well as increased e-commerce that decreased the need for inventory on hand. The softer demand for polished diamonds led to a 3 percent drop in prices and is expected to lead to 10 percent to 15 percent lower revenues for midstream players. This is resulting in the lowest profit margins in years, combined with high inventory, which has been building since 2017. Among major diamond players, both Alrosa and De Beers finished 2019 with a sales decline of 26 percent.

But all is not gloom and doom. Bain notes that the market has historically returned to pre-crisis levels within a couple of years. The midstream should clear its backlog in early 2020, paving the way for a better year, even if not a full recovery, with a good chance to rebalance by 2021. And, while non-branded and lower-end jewellery face an uncertain mid-term future, the branded high-end diamond jewellery segment, (about 15 percent of the total) is expected to grow by high single digits in 2020, in line with the growth of personal luxury goods.

Other factors affecting the diamond sector, and indeed the entire jewellery industry, are changing consumer preferences, most notably by Millennials and Gen-Z’ers who prefer experiential purchases and electronics. The diamond sector is finding it challenging to bring diamonds top of mind for these young consumers.

And, although still quite small, with 80 percent of consumption in the States, the lab-grown diamond (LGD) sector grew 15 percent to 20 percent in 2019. Increasing numbers of manufacturers are jumping on the LGD bandwagon, not the least of which is De Beers when it made its surprising−or maybe not so surprising−U-turn with the creation of its LGD sub-brand, Lightbox Diamonds. Another heavy hitter to jump aboard is Atelier Swarovski, which has partnered with luxury-rock designer Stephen Webster and celebrities from the Big Screen, including Penelope Cruz, to create lines of LGD jewellery at affordable prices. Smaller designers are also touting the advantages of LGDs.

Another factor influencing diamond sales is the increased focus on sustainability and transparency along the supply chain. This provides a good opportunity for the industry to practice corporate social responsibility (CSR) and ensure minimal negative impact on the environment. Blockchain technology is being adopted to trace a gem from mine-to-market, while higher marketing budgets are truing to encourage the emotional attachment to earth-mined diamonds. In 2019, more than $200 million was invested, including US$70 to US$80 million of generic marketing by the Diamond Producers Association (DPA).

Despite these short-term challenges, Bain notes that the long-term outlook is positive for diamond jewellery. If middle-class growth is strong, combined with effective marketing efforts, demand is expected to grow at an average annual rate of up to 3 percent, with the United States, China and India leading the way. A few really bright spots in the diamond sector are coloured diamonds, which have garnered much attention, especially at auctions, where prices have gone through the roof.

Coloured gemstones
Unlike the diamond sector, the coloured gemstone sector is composed primarily (about 80 percent) of small-scale and artisanal miners, although international industrial companies have entered this space over the decade. Among them is Gemfields with extensive emerald mining in Zambia and ruby mines in Mozambique along with various operations in Madagascar, Ethiopia and other countries. Another major player, Fura Gems extracts emeralds in Colombia, rubies in Mozambique, and sapphires in Australia, among others.

With a global value of US$23 billion, the “Big Three” (emeralds, sapphires and rubies) make up less than 10 percent (around US$2 billion) of coloured gem sales. The rest encompasses a plethora of stones, including some that are rarer than diamonds. Although lower-end gems perform well, high-end stones continue to supply the premium client base. Consumers from emerging Asian economies, in particular, prefer high-quality gemstones that are rare and in unique designs. According to Future Market Insights, the coloured gem sector will probably see growth of more than 4 percent over the next year.

Some of the challenges facing the coloured gem sector are the same as those facing the diamond industry, namely CSR, sustainability, and a transparent supply chain. Industrial players Gemfields and Fura, among others, have expended money and effort to ensure that their gems are sourced responsibly, with support for local communities. To take transparency to the next level, Gemfields partnered with the Swiss gem lab, Gübelin, whose Provenance Proof blockchain technology not only shows a gem’s origin, but also creates an encrypted record of its journey from mine-to-market.

Gold
In 2019, gold had its best performance since 2010, rising 18.4 percent to around US$1,560 an ounce as of this writing. And, in light of financial uncertainty, price volatility, lower interest rates and weakening global growth, the World Gold Council indicates that the outlook for 2020 remains bullish.

Of the 190,000 tons of gold above ground, nearly 48 percent is in jewellery. Since high prices impact this market, we are seeing greater shifts of gold-jewellery manufacturers into vermeil designs using coloured gems and diamonds. Others offer designer silver (whose price rose more than 15 percent in 2019) with gold accents.

In terms of CSR, gold faces similar issues as the diamond and coloured gem sectors. Artisanal mining generally uses mercury, and industrial miners are sometimes criticized for poor working conditions. Organisations such as No-Dirty-Gold are working to ensure that gold mining respects human rights and the environment. To this end, jeweller Toby Pomeroy created “The Mercury Free Mining Challenge,” which will give US$1 million to anyone providing artisanal gold miners with a reliable, cost-effective alternative to using mercury. “We cannot just stop mining gold,” he says, “what we need is responsible mining.” There is currently a pilot program underway in Ghana, and hopefully encouraging results will be announced soon.

Other factors
Internet sales of jewellery continue to climb. In 2020, online sales are expected to rise to 25 percent of all jewellery sales, up from 23 percent in 2019 and 21 percent in 2018. In India, for example, the 24-35 year age group is driving demand for online jewellery, where there are more than 20 e-commerce companies operating in this domain. Online sales are not limited to lower-priced pieces, however, as can be seen by fine retailers such as Tiffany & Co, which just partnered with Net-A-Porter to offer pieces from the Tiffany T collection.

As the usage of social media increases, especially Instagram, the way consumers interact with jewellery brands is evolving. Reaching a wider audience at less cost than traditional advertising, jewellers can adjust their collections according to consumer opinions or market them through influencers, which is especially important for self-purchasers.

In terms of design directions, if we can translate jewels from the fashion catwalks to Main Street sidewalks, this next year should see more oversized hoops, asymmetrical earrings, chain links, Y-necklaces and art-inspired pieces in the designer sector. For the bread-and-butter segment, small diamond or coloured gemstone-studded pendants and earrings, stacking rings and bracelets, along with the layered look should prevail. In the bridal world, halo settings seem to be passé while solitaires and streamlined designs are gaining market share. The landscape is also shifting towards customisation as consumers look for jewels not only as accessories, but as a part of their identity.

So, as the new decade opens, and the jewellery industry makes strides in overcoming its challenges, we can look forward to a positive 2020 for all players.

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