Rapaport Feb 2016 V39 N2

Manufacturers of large stones and fancy colors
NEWS REVIEW
ALROSA Keeps
Prices Stable
Rio Tinto Restructures
GIA Expands
Botswana Facility
World Diamond Congress
in Dubai
Turkey Partners
withWDM
FOREVERMARK STRENGTHENS PARTNERSHIPS

Philippe Mellier, CEO of the De Beers Group of
Companies, reassured partners of the Forevermark
diamond brand that 2016 would be a year of renewed
working relationships. Speaking at a cocktail reception hdd in
New York C ity after a partners' meeting in January, Mellier said
that while 2015 was a tough year for
many in the diamond industry. he

believed Forevermark shone through
what he called a "perfect storm."
Mellier described how 2015
began with retailers slowing down
restocking due to a softening
consumer demand at the end of
2014 .l n addition, an evenhla1
slowing of growth in China
left many China~focused firms
stranded with excess inventory.
The compounded problems posed
by banks providing lower leveL~
Philippe Me/lier
of financing had created working
capital and profitability issues among cutters and polishers,
he said .This resulted in distressed selling in the midstream,
contributing to polished prices dipping, leading to even slower
retail buying. Mellier said that De Beers recognized the need
to respond effectively to turn things around.
De Beers had taken measures to bolster the diamond
industry, according to Mellier, including allowing
sightholders increased deferrals, as well as rough diamond
price adjustments. The mining company sought to boost
industry confiden ce around product integrity by launching
a melee testing service, and invested "tens of millions of
additional dollars" in consumer marketing.
Forevermark diamond sales grew 33 percent year on year
from January to November in 2015. Me11ier added that partners
have told him their Forevermark di anlond~ achieve five margin
point<! higher than generic diamond~. H e said that Forevermark
hopes to provide partners a competitive advantage and drive a
premium that would help achieve a more profitable diamond
business. M ellier emphasized that Forevermark would continue
8 Rapaport February 2016
to work on consumer marketing, undertake scale research and

expand on it<! responsible sourcing message. Charles Stanley,
president ofForevermark, said that the brand would work with
retailers to more effectively bring the emotional message of
diamonds to consumers, and to move a\vay from selling grading
reports. Selection of a diamond is beyond its 4C's, Stanley said,
and retailers need to communicate that to their customers.
Forevermark will teach retailers how to focus on the message of
the quality and integrity of its branded diamonds, and hopefully
drive sales home, he explained.
DE BEERS SALES JUMP

De Beers sales of rough diamonds skyrocketed
118 percent to $540 million in January - its first
cycle of2016 - up from $248 million in its previous
and final cycle of2015. The revenue figure includes
sales to sightholders, auction clients and internal sales to
De Beers government and local partners, David Johmon, head
of ntid~treanl conm1Unlcations for De Beers, told Rapaport News.
Rough diamond demand broadened across the entire product
range as cutting and poli~hing factories begin to increase their
activity, De Beers said in a statement.
D e Beers attributed the su ccessful cycle to firmer polished
prices led by low levels of rough diamonds purchased by the
midstream in the fourth quarter of2015 and a subsequent
reduction in manufacturing.
D e Beers would continue to be flexible in applying its supply
rules, said Philippe Mellier, CEO of D e Beers, speaking to
sightholders at the sight in Gaborone,Botswana .
Rough diamond sales for the full year of2015 slumped
40 percent to 20.6 million carat<! as production fell
12 percent to 28.7 million carat<! . Sales for the quarter
plunged 55 percent year on year to 3.6 million carats.
D e Beers only provided quarter results by volume in its
report. Anglo American is expected to publish De BeeN
full earnings report on February 16,2016.
Most of the production reduction came from its largest
source, Debswana, De Beers partn er in Bot<!wana. Debswana
curtailed production 16 percent to 20 .4 million carats for
the fi111 year of2015 in light of trading conditions.
RAPAPORT
FEBRUARY 2016
"It is for more tf an educational process in

sellillg colored stones. Customers typically
(ome 111 armed with some knowledge if
at least the 4Cs of diamonds. Explaining
about treatmCllts has to be part if the
repertoire so they understand the reality
behind the colored stones tiler are huyillg
and that most gems are treated. With
colored stOtlCS, we're usually creatillg the
passion for tllat particular gem . . . "
jOhtl Carrer
Presidetll
Jack Lewis Jewelers
BloolHinguJtJ, nlinois
COVER
42 THE COLOR OF MONEY
Country of origin and treatments
impact colored gelU~tone prices.
NEWS REVIEW
8 FOREVERMARK STRENGTHENS
PARTNERSHIPS
De Beers Sales Jump.
28 RIO TINTO RESTRUCTURES

Peregrine Settles Royalty Litigation;
Diameor Arranges Loan Deferral;
ALROSA Keeps Prices Stable;
Murowa to Boost Production.
30 GIA EXPANDS
BOTSWANA FACILITY
AGS Offers New Service;
World Diamond Congress in Dubai;
lsrad Sues for GrantTerms Breach;
LOB Releases Guide.
32 TIFFANY UPDATES
BUYBACK PROGRAM
Extell Acquires Land fur New Tower;
Hatton Garden Heist Gang Convicted;
Turkey Parmer'S with WDM;
Element Six Sues lb.
INDUSTRY
18 SUPPLY SHORTAGES
PUSH PRICES UP
Market sentiment improved in
January. H owever, suppliers would
rather have a market driven by ri.~ing
demand than the prevailing shortlges
in supply.
34 NEW CONSUMER MIND-SET

DAMPENS HOLIDAY SALES
126
Lower prices did lirde to stimulate

demand as consumer<; seek
experiences over material purchases.
, ,
RAPAPORT
FEBRUARY 2016
INTERNATIONAL
COLORED GEMSTONE
56 U.S. RETAIL
Charm jewelry
116 DOUBLE VISION

boL~ters
sales.
Backing tramlucent pastel gemstones

with hematite or mother-of-pearl to
create doublets add~ new colors and
texture to gems.
ON THE COVER
Emerald and diamond
neck cuff by Joseph Gad.
See The ColoroJMoney,
page 42.
58 U.S. WHOLESALE
M arket conditiom continue the same.
60 HONG KONG
Tough start to new year.
LEGACY
118 PSYCHOLOGY OF DESIRE
T he desire to create adornments
with beautiful gemstones i.~ as old as
civilization. And the desire to O\\m
these jewels, says a new book, has
played a major role in shaping hi.~tory.
62 ISRAEL
H ong Kong show will be market
barometer.
64 INDIA
Rough imporo lowest in four decades.
Rapaport DialTlOl'lCl Report (U5P5 0712350; !S5N; 0746-9829)
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66 RUSSIA
Jewelry sales shrink .
STYLE
120 THE JOY OF COLOR
A dose-up look at the 20 16 AGTA
Spectrum Awards winners.
68 ANTWERP
M ovement slow and cautiou>.
RETAIL
126 DESIGNER LINES

128 JEWELRY CONNOISSEUR
106 AN ARTIST'S EYE

Originality and creativity are on
display at French D esigner Jeweler
in Scottsdale,Arizona.
108 RETAILRAP
T his month Rapaport M agazine
asks retailers, " H ow are colored
gemstones selling?"
110 RETAIL BULLETIN

112 RETAIL SCOPE
ECONOMICS
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PARCEL PRICES
RAPNET PRICE SHEET
TRADE SHEETS
ECONOMIC BULLETIN
IMPORT EXPORT
DEPARTMENTS
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RAPAPORT.
observations
Volume 39 Number 2
IDITORIAL
EDITOR IN CHIEF: Amber M ichel le
EXECUTIVE EDITO R: Phyllis Schil ler
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h e mystery and allure

of co lor e d ge m ston es
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ha s see n a ren aissa n ce in th e

past cou ple of years as n otable rubi es and
sa pphires garn er rec ord p ri ces at au cti on. Rubi es and sa pphires
were the top-selling lots in several sales at C hristie's and Sotheby's in
20 15 . In the world of colored gem stones, two things are of paramount
importan ce when discussing price -
country oforigin and treatment,
or lack thereof. Some of the most rare and valuable colo red ge ms
may originally be from min es that are n o longer producing, such as
sapphires from Kashmir. Some ston es are in a category of th eir own,
such as em eralds from th e min es in Colombia or rubies from Burma,
which are highly coveted for the special glow of their color. Specific
geologi cal fa ctors may impact the color of a stone and in some cases
may leave certain characteristi cs that give clues as to wh ere the stone
comes from . Gem ston es are co mm only treated to enhan ce color.
Finding a gem that comes out of th e ground already the perfect color
is a rarity. So of course it is more valuable than a gem th at has been
treated in some way. Gemologists and laboratories act as detectives to
discover the secrets of colored stones so that a valuation of the gems
can be made. In this issue of Rapaport Magazille," Th e C olor ofMon ey"
takes a look at the various issues that contribute to the valu e of rubies,
em eralds and sapphires.
Editor- in -C hi ef
Rapaport February2016 15
"' I -
L.- ' - '
Market sentiment improved in January. However,

suppliers would rather have a market driven by rising
demand than the prevailing shortages in supply.
By AVI KRAWITZ
iamond deal ers expressed
so me optimism about
th e market in January
and were confident that
the worst appears to have passe d for
th e trad e. Senti m ent improve d as
polished prices continued to finn amid
supply shortages, while rough demand
increased. However, uncertainty lingered
as consum er demand remains sluggish
due to the weak global economy and
plunging stock market~ .
While the focus of the trade shifted
from the U.S. to China ah ead of the

Chinese New Year Spring Festival
early this month, expectations about
China dimini shed as th e Shanghai
Stock Exchange slumped 17 percent
from January 1 to 25. China's economic
growth slowed to 6.9 percent in 2015,
while weaker-than-expected D ecember
manufactu ring data signaled that the
slowdown is likely to continue into 2016.
Weak sentiment about C hina had a

ripple-effec t on o th er markets, with
the Dow Jones Industrial Average (Dj l)
falling 8 percent in the first three weeks
of the year. Diamond dealers looked
on with ca ution as th ey recognized
that C hina would not stimulate global
diamond demand in the sam e way it had
over the past decade.
Th erefore, whil e polished demand
from Mainland C hina and Hong Kong
improved in November and December
as jewelers prepared for the Spring
Festival, their buying slowed in january.
j ewelers simply had enough goods
for the season, while th e co nsum er
landscape remains uncertain as China's
ec onomy tra n sitions from being
export-driven to one that is focu sed on
domestic consumption. Consequently,
expectations for jewelry sales during the
Spring Festival and subsequent diamond
trading were muted.
LOWER TRADING
Diamond demand was fairly stable

in January, with steady U.S. demand
compensating for weaknesses in China
and other emerging markets. There was
some buying for inventory among U.S .
jewelers looking to replenish goods sold
during the holiday season. H owever, on
the whole, demand was selective and
the price increases experienced in the
past few months were driven by supply
shortages rather than higher demand.
Th e RapNet Diamond In dex
(RA PITM) for 1-carat, Gemological
In stitute of America (G IA)-graded
diamond s rose .9 percen t from
January 1 through 25 . RAPI for
.30-carat diamonds grew 4.5 percent,
while RAP I for .SO-carat diamonds
increased 3.9 percent. RAPl for 3-carat
diamonds edged down .2 percent during
the period (see chart at right, top).
There is steady demand and shortages
for .30-carat to 2-catat,D to H ,VS to S12,
RapSpecA2 (triple EX, none) diamonds.
Demand for melee was slightly weak
with dealers still holding a lot oflowerquality inventory after the Rapaport
Melee Ind ex declined 16.9 percent
during 2015.
However, trading is still well below
levels recorded in previous years as
businesses across the distribution chain
are carefully managing their inventory.
Polished trading dropped significantly in
the fourth quarter of2015, as evident in
the data published in the major diamond
centers. Polished export~ from India fell
17 percent year on year during the final
three months of the year, while exports
from lsrae1 dropped 16 percent (see chart
at right, bottom). Belgium's final 2015
data was not available at press time.
RapNet Diamond Index (RAPFM)

5.0
4.0
3.0
2.0
1.0
0
-1.0
1
3
5
JANUARY 2016
.30 ct -
11
.50 cl -
13
15
1 01 -
17
19
21
23
25
301 -
The RapNet Diamond Index (RAPITW) is based on the average asking price in hundred $Ic!. oflhe
10 best priced diamonds, fO( the top 25 quality round diamonds (D-H, IFVS2, GIA-graded,
RapSpecA3 and better), which are offered for sale on RapNet- Rapaport D~mond Trading Network.
4Q Polished Diamond Trade at the Major Centers

$6,000
$5,000
UI
$4,000
$3,000
U}
$2,000
$1,000
. 402013
. 402014
. 402015
Based on data published by India's Gem and Jewellery Export Promotion Council (GJEPC)
and Israel's Economy Ministry. AJI data is gross (before returns).
Rapaport February2016 19
ROUGH ON THE RISE
4Q Rough Diamond Trade at the Major Centers

$4,500
$4,000
$3,500
$3,000
c
.Q $2,500
$2,000
~
$1,500
$1,000
"
$500
$0
IND IA
INDIA
ISRAEL
ISRAEL
ROUGH
ROUGH
ROUGH
ROUGH
IMPORTS
EXPORTS
IMPORTS
EXPORTS
. 402013
. 40 2014
.40 20 15
Based on data published by India's Gem and Jewellery Export Promotion Council (GJEPC)
and Israel's Economy Ministry. All data is gross (before returns).
D es pite lower trading, inve ntory

levels have been depleted, especially for
better-quality RapSpec A2 (triple EX,
none) diamonds. Sh ortages became
increasingly evident in th e past few
months as manufacturers kept polished
production at an estimated 30 percent
below capacity after the November
Diwali break and dramatically cut back
on their rough purchases. India's rough
imports fell 19 percent year on year
during the fourth quarter, while Israel's
rough imports slumped 33 percent (see
chart at left) .
Rough demand in creased notably
in January as manufacturers started to
raise their factory output in order to fill
the polished supply gaps. De Beers and
ALROSA reportedly sold all the goods
on offer at their respective January sales.
D e Beers r e duced pri ces an
es timated 5 p erc e nt to 7 perce nt at
its sight, while the company reported
rough sa les - including at its sight
and auctions - valued at $540 million
in Janu ary, compared to $248 million
in December.
Trading on the seco ndary market
improve d, w ith De Beers boxes
reportedly selling for cash at premiums
of around 5 percent. Rough demand on
the auction circuit also rose, with some
market so urces noting a double-digit
increase in auction prices during the
Janu ary cycle.
CONTROLLED MARKET
On e sightholder su ggested th at
De Beers goods are now the most
attractive on the market following the
January price correction . While 2015
was characterized by excess supply in
the market, De Beers is expected to

continu e to limit its supply and keep
prices relatively stable at up comingsight~ .
J oh an Dippenaar, chief executi ve
officer (CEO) of Petra Diamonds, said
he expec ts prices to remain steady in
the first half of2016 after Petra's rough
price index fell 9 percent in the final six
months of2015. Petra's sales slumped
28 percent year on year in th e fiscal
half-year that ended December 31, with
the average price achieved at its auctions
down 23 percent (see chart at right).
As rough prices are anticipated
to remain stable and supply limited,
di aman taires are hoping that polished
prices will continue the recent uptrend
and that trading level~ will rise along with
demand. However, most anticipate that
prices will continue to be supported by
shortages as rough bought in J anuary
is only expected to come to market as
polished in three to four months. By
then, dealers should have a better sense
ofwhether demand is improving in 2016.
For now, much hinges on the Spring
Festival, as a strong retail season in China
will motivate jewelers to return to th e
market for goods and help stimulate
diamond trading after the festival. Dealers
have described the Hong Kong shows
from March 1 to 7 as an opportunity
to assess that prospect. But while
stock markets shunped, oil prices plunged
and the outlook for global economic
growth slowed in January, few expect a
boom in diamond demand.
Rather, trends in January suggested that
the diamond market is likely to remain in a
supply--controlled environment in the first
half of2016, while the industry still need~
to figure out how to stimulate demand in
such volatile economic conditions ...
Petra Diamonds Sales & Average Price

$350
$250
$300
~
$200
$250
$150 ~
:;; $200
'" $150
$100 g
(/)
::J
$100
$50
$0
I
1H 2H
2010
1H 2H
2011
$50
1H 2H
2012
Sales
Based on data published by Petra Diamonds.
1H 2H
20 13
1H 2H
2014
1H 2H 1H *
2015 2016
$0
Avg . Price
Fiscal half year
Rapaport February20/6 21
ALROSA KEEPS PRICES STABLE
PEREGRINE SETTLES ROYALTY LITIGATION
ALROSA did not lower diamond prices at its

contract sale in January 2016. Andrey Zharkov, president
of ALR OSA, said the company saw no reason to lower prices,
especially given that they rose slightly at the end 0[2015, reported
Russian news service lnterfax. Clients told R.1lpaporr News they
were allowed to defer up to 70 percent of allocated goods and
that all goods were sold at the sale.
ALROSA's production increased 6 percent year on year to
38.3 million carats, driven by the launch ofit~ new pipe and
the development of its existing assets.
For the full year of2015,ALROSA sold 30 million carats of
diamonds . Revenue was set to reach at least $3.4 billion.
ALROSA sold 7.1 million carats of diamonds, including
4.1 million carats of gem ~ ql1a1ity diamonds. Gem-quality
diamonds were sold at an average price 0[$:166 per carat
and industrial diamonds were sold at an average price of
S10 per carat.
Peregrine Diamonds Ltd. announced that it has

settled its litigation with BHP Billiton C anada
Inc. (BHPB) relating to the Chidliak royalty.
In an agreement dated February 2, 2012, Peregrine granted
B HPB 2 percent royalty on future mineral production,
including diamonds, from its Chidliak project in
Nunavut, Canada. The dispute arose when BHPB
transferred the royalty right~ to South32 Limited - on
entity it created to house it~ noncore assets - in May 2015 .
In exchange for Peregrine dropping the litigation and
a cash payment ofS125,000, BHPB has agreed to terminate
the royalty agreement.
RIO TINTO RESTRUCTURES

Simon Trott, currently managing director of
Rio T into's salt and uranium businesses, will take on the
additional responsibilities
as managing director of
the company's diamonds
business. Trott will be
replacingJean-Marc Lieberherr,
who was let go as part of
the miner's restructuring.
Lieberherr, who has been
with R ioTinto for ten years,
has held the position for
two and a half years .Trott will
report to Alan Davies, chief
executive of diamonds and
minerals. Rio Tinto has been
Sim o n Trott
cutting costs and reducing debt
in its restructuring, including selling its thermal coal asset\
in Australia in January 2016.
DIAMCOR ARRANGES LOAN DEFERRAL

Diamcor Mining Inc. announ ced that
Tiffany & Co. C anada , a regional subsidiary, has
a g reed to payment deferrals and a maturity date
extension for a period of six months. Interest will
continue to accrue on the outstanding balances during this
period, with payments of both principal and interest to
resume on July 20, 2016. Tiffany & Co. provided Diamcor
financing to advance the Krone-Endora at Venetia project
in South Africa in exchange for first right of refusal and
the rights to buy up to 100 percent offuture production
from the site.
MUROWA TO BOOST PRODUCTION

Murowa Diamonds P vt. Ltd., a former unit of
Rio Tinto Group in Zimbabwe, plans to produ ce more
than 1 million carats in 2016 , according to Bloomberg.
Murowa's production in 2015 was 250 ,000 carat~, and the
mining company will inject $60 million over the next four
years to achieve the increase. Lovemore Chihota, a spokesman
for Murowa, said that the expansion will go ahead despite
the recent decline in diamond prices . He added that Murowa
intends to be the biggest diamond miner in the country.
Rio T into sold its 78 percent stake in Murowa in June 2015
as it exited the country.
AGS OFFERS NEW SERVICE

The American Gem Society (AGS) launched a
new grading service for diamonds set into jewelry.
The "Mounted Diamond Evaluation Report" is presented

in a credit card-sized for mat and includes a sample photo
of the graded jewelry. The service is for diamonds larger
than .18 carats. The report will include:
Color and clarity grades, along with total carat weight
provided by the manufacturer.
A description of the jewelry and verification of the
mounting stamp indicating the precious metal quality.
facility in Gaborone, Botswana inJanuary 2016 as

part ofits beneficiation efforts. The Gaborone facility
was fiNt set up as a diamond grading lab in 2008, and the
expansion will include more classroom space.The move is
part of CiA's goal of making Gaborone the destination for
industry-leading gemological education in Africa. Today,
CLA employs 95 people in Gaborone, of whom 65 were
trained by C IA as diamond grading professionals.
ISRAEL SUES FOR GRANT TERMS BREACH
Israel's Civil E nforcement U nit has filed a

claim to a Jerusalem court on behalf of the
Confirmation that the diamond is natural and untreated.
Ministry of the E conomy and Industry suing
c ompanies from the Samuel-Rozenbaum group
WORLD DIAMOND CONGRESS IN DUBAI
and their owners for $1.3 million.
The 37th Wo rld Diamond C ong ress, the
According to the suit, Samuel-Rozenbaum received a
biennial meeting of the World Federation of
$1 million grant in the early 1990s to boost Israel's diamond
Diamond Bourses (WFDB) and
,---------------,
exports but fraudulently failed to pay
International Diamond Manufacturers
royalties owed to the state.
The suit demands that defendants
Association (IDMA), will take place in
Dubai, United Arab Emirates (UAE) from
pay back $1 .1 million plus linkage
May 16 to 19, 2016. The meeting will focus
differential~, interest and legal expenses
on the themes of responsibility, transparency
of$100,715.
and sustainability, Ernie Blom,WFDB's
president said in a statement.The themes will
LOB RELEASES GUIDE
The London Diamond Bourse
be di.~cussed by WFDB 's 30 president.~ and
more than 200 representatives of the global
(LDB) has partnered with British
government agency Insolvency
diamond industry.Attendees will include
Service to release a guide to prevent
diamond producers, representatives
Ernie Biom
diamond investtnent scams. The
from diamond countries as well as from
document dea1~ \vith companies purporting to offer diamo n d~
service organizations su ch as labs and bank.~ . Blom
as an invesnnent in the light of rising incidences of people being
said that the meeting will seek to advance support for
fraudulently sold di amond~ and precious stones that do not exist
generic marketing of diamond via WFDB's Diamond
Mark initiative and to create stronger links with
or at highly inflated prices. Contents of the guide include:
T h e working practices of known scanuning companies and
the Diamond Producers Association (OPA) .
highlight that LDB members are subject to regulation.
H ow consumers can seek redress through arbitration.
GIA EXPANDS BOTSWANA FACILITY
Information about companies that are part of the scam
The Gemologic al Institute of Americ a (GIA)
offering false recovery services to viCtinlS.
opened an expanded laboratory and classroom
TIFFANY UPDATES BUYBACK PROGRAM
EXTELL ACQUIRES LAND FOR NEW TOWER
Tiffany & Co. announced its board of directors

has approved a new stock repurchase prog ram. It will
authorize the repurchase of up to $500 million of the COOUllon
stock available through open market transacrion~, block trades or
privately negotiated tramactions.
P urchases will be discretionary and will be subject to the
company's liquidity needs. The program will expire on
January 31,2019.
The new program replaces the company's existing
stock repurchase program announced in March 2014 ,
which authorized the company to repurchase up
to $300 million of its stocks on the
open market.
As oflate January 2016,
approximately $61 million of stocks
remained available for repurchase
under the prior program .
Gary Barnett, president ofExtell Development,

developer of the htternational Gem Tower in N ew York City,
has acquired two nearby properties from Thor Equities
and SL Green Realty, reported real estate trade publication
T ile R eal D eal. The new properties, 562 Fifth Avenue and
564 Fifth Avenue, would allow Barnett to move forward with
plans for another building near his International Gem Tower
in the Diamond District. Records show that the two deals cost
$109.5 million. All parties declin ed to comment.
TURKEY PARTNERS WITH WDM
Turkish bourse Borsa Istanbul

and the World Diamond Mark
Foundation (WDM) signed an
ag reement to institutionalize
diamond trading in the country.
Tuncay Dine, CEO offiorsa Istanbul,
said that the decision to join the WDM
ELEMENT SIX SUES IIA
came at a crucial moment as diamond~
Element Six Technolog ies Ltd. , the
and diamond jewelry faces significant
synthetic diamond supermaterials
competition for market share in the
c ompany of the De Beers Group
luxury consumer product market.
of C ompanies, beg an legal action
Alex Popov, chairman ofWDM, said
Alex POPOI'
against Singapore-based synthetic
that Turkey will play an important role as
diamond producing company TIa Technologies Pte. Ltd.
a WDM ambassador for its role as a gateway for trade between
in January. Element Six alleged that Ila Technologies
Europe, the Middle East and Asia.
infringed its patents for a diamond material with high optical
transparen cy and low crystalline stress, and its manufacturing
HATTON GARDEN HEIST GANG CONVICTED
methods. Element Six believes lIa Technologies is exploiting
Three more people were convicted inJanuary 2016
the patents for commercial gain in both industrial and
in connection with the April 2015 burglary in
jewelry sectors .
Hatton Garden, London's diamond district. The ruling
Ii a Technologies responded to Element Six's claims and
brought the total number of people convicted or who have
said it will challenge the validity of Element Six's patents .
pleaded guilty to nine.The newly convicted are: Carl Wood,
William Lincoln and H ugh Doyle. The leader of the gang,
Vishal Mehta, CEO of Iia Technologies, said that he
believes the company has not infringed on Element Six's
Brian Reader, had admitted his guilt last year.The gang had
drilled through a 50 centimeter-thick concrete wall and broke
claims an d has entered its appearance in the H igh Court
in Singapore. Bo th companies have said that they will not
into 73 security boxes, affecting 39 victims and absconding
conul1ent any fur ther on the matter through the duration
with good~ worth about $20 million.
of the legal proceedings.
- Additional reportillg provided IJY Acquire Media .
INDUSTRY
NEW CONSUMER MIND-SET

HOLIDAY SALES
Lower prices did little to stimulate demand as consume rs
see k experiences over material purcha ses .
By SHAUN S",
any u.s. jewelry retailers - and th e

retail industry in general - experienced
modest sales growth during th e November and D ecember
holiday period in 2015 . Holiday sales grew 3 perce nt
year on year d u ri n g that period to $626 .1 billion ,
acco rding to the National Retail Fed eration (NRF).
Tha t growth fell short of NRF's targeted 3 .7 percent,
and a far cry from the 4.1 percent sales boost in 2014. Lower
oil prices have led to falling consum er prices and greater
spending power, but retail buying did not increase accordingly.
Coupled ..vith the strong US. dollar, tourism grew at a low
rate and those that visited spent l ess . A~ a result, many jewelers
and tourism-dependent retailers saw lackluster sales from
international visitors.
"DISINFLATION" AND CURRENCY CHALLENGES
"It's been a tough season and a disappointing year," said

Jack Kleinhenz, chief economist at NRF." It's not that we have
weak demand, but rather weak prices. R etailers don't have
pricing power anymore." He called th e falling j ewelry and
general merchandise prices as a "disinflation" that has been a
big i<;.m e,not just in the US.but also around the world. R etailers
had to be price competitive to even move products.
Furthermore, consumers had the benefit of technology,
allowing them to go online to check prices at one store and
then perhaps decide to make the purchase at another. "Firms
that were able to implement technology well showed stronger
sales," Kleinhenz pointed out. Mobile conunerce in the US.
soared 59 percent year on year to $12.65 billion in November
and December, according to estimates from
comScore,a company that measures online
analytics. That numb er accounted for
18 percent oftotal digital conunerce up
from 13 percent in 2014.
Kleinhenz noted that midmarket
retailers suc h as Ma cy's and some
luxury retailers such as Tiffany & Co.
r
did not do as well as they had
hoped during the holiday period .Th ese companies

have traditionally counted on their sales b ei ng
bolstered by tourists who visit the major cities in the
U.S. during the holiday period. The strong U.S. dollar
has made it more expensive to vi si t th e country and
spend, adversely im pacting retailers on both the East and
West Coasts, Kleinh enz elaborated. According to the
U.S . National Trade and Tourism Office, international
visitors to the U.S. in 2015 was fore cast to grow at its slowest
rate - a growth of just 300,000 visitors to 75 .3 million,
representing only .4 percent. The country had enjoyed an
average growth of 6 percent each year since its recove ry
from the 2008 recession.
The strong currency also adversely affected sales gains
made in overseas regions (see Holiday Season 2015,opposite).
Tiffany & Co. and th e various jewelry maisons under the
Richemont balUler were among some brands that saw their
overseas sales growth in Europe and Japan either diminished
to modest numbers, or even plunged into the red.
LESS BLlNG, MORE EXPERIENCES
Kleinhenz also noted that consumers have continued their

gradual move away from material purchases and toward
experiential purchases, such as travel and dining."There was a
pent-up demand for services after the recession," he explained.
The retail sectors that did do well were furnishings and home
building supplies. Consumers have become conservative and
debt levels have gone way down, and people are investing
more in their houses. The sectors that fared the worst were
apparel and accessories. "There was an excess supply of winter
clothes due to the unusually warm weather we had, and
there had been an inventory buildup from sununer into fall,"
Kleinhenz said.
Some breakthrough in product innovation would make
consum ers st art spending again , spec ulated Kleinhenz.
"Consu merism as we know it has changed. Peo ple are
not going to overleverage th emselves to buy goods as
they become satisfied with what th ey have." He described
HDTVs and 4K TVs as innovative produ cts th at were

sales boosters in 2014, but 2015 - other than technology
wearables such as Apple Watches and Fitbit5 - had been
largely missing such breakthoughs.
Looking ahead, Kleinhenz expects consumer prices to
stay down in the early part of2016, and might not pick up
until midyear or the end of the year, when wages might
start to increase. But he predicted, while the year might not
be spectacular, as the U. S. economy is forecast to grow at
subdued rates of around 2.5 percent, it will not be terrible.
"The economy is not as fragile as some people have been
suggesting," he concluded.
France, with mixed performance across Continental Europe.

. The company forecasts that the strong dollar and global
macro challenges might result in mini.r1131 growth in net sales
and earnings for 2016.
RICHEMONT
Switzerland-based Richemont's holiday sales results were
wrapped into its third-quarter reportThe luxury group fared
well, helped by the weakness of the euro currency, w hich
R.ichemont uses in its reporting.
. The group saw sales declining in Novem ber 201 5 for
Europe, which primarily reflected lower levels of tourislll .
Trading in Asia Pacific remained challenging as demand
for watc hes continu ed to contrac t. M ainland C h ina
SIGNET
Signet, th e largest jewelry retailer in the U. S., enj oyed demand improved, but Hong Kong and Macau reported
significantly 10wer sales.Japan saw growth , although at lower
growth across all its maj or divisions.
U. S.- based Sterling Jewelers division - comprising rates due to seasonal factors such as Chinese touri<;m .
Sal es in the Ameri cas remained subdued, althou gh
Kay Jewelers, Jared and oth er regional brands - saw an
overall 7.2 percent year-on-year boost during the holiday jewelry showed growth over soft demand for watches.
. Th e group 's j ewelry maison s, in cluding C arti er,
period, with Kay growing 8.9 percent and Jared, 6.8 percent.
T he success of Kay was attributed to key collections and Van Cleef & Arpels and Piaget, were the top performers,
ca tegories, including th e recently introduced Ever U s limiting decline for the segment as a w hole. The jewelry
two-stone rings.Jared saw its new store operations, marketing mai<;ons' sales improved by 2 percent while watchmakers'
sales ticked up by 1 percent .
and merchandising initiatives pay off.
. Ri chemont exp ec ts t hat th e ch all engin g trading
Zale division sales were driven by material increases at
flagship Zales stores as well as Piercing Pagoda kiosks. The environm ent wo uld likely preva il until March 2016,
Ever Us and other collections, as well as gold j ewelry, were negatively affecting operating profit for the year.
important sales drivers in the kiosk channel.
. The UK.j ewelry division enj oyed higher same-store
sales but saw gains offiet by unfavorable currency exchange
rates. Branded bridal, diamond fashion jewelry and beads
primarily drove same-store sales.
COMPANY
TOTAL SALES
CHANGE FROM 2014*
. Econun erce sales were up 10.9 percent to $139.7 million.
Signet
$1 .95 billi o n
5% [6.3 % 1
St erling Di vision
$1 .2 billion
7.2%
Zale Di vision
$532.9 milli o n 2.3% [5 % 1
TIFFANY & CO.
U. K. Di visio n
$217 milli o n
.9 % [4. 9% 1
Tiffany & Co. attributed restrained consumer spending
and un ce rtain glo bal eco nomic conditions to having
$961 milli o n
-6 % [-3% 1
Tiffany & Co.
negatively affected its holiday earnings.
-7% [-5% )
Ameri cas
$505 milli o n
. Th e Am e ri cas' low e r sa les of 7 p e rce nt w e r e
A sia Pacifi
$187 milli o n
-11 % [-6 %1
Japan
$123 m illion
9 % [12 % 1
exacerbated by the decline in foreign-tourism spending
-4 % [4 % ]
Europ e
$128 milli o n
in N ew Yo rk and o th e r U .S. marke ts. Total sales in
Other Regions
$1 9 million
-20% [-16 %1
C an ada and Latin America rose .
Asia Pacific sales exc1udingJapan plunm1eted 11 percent
Richemont (3Q)
3% [-4 % ]
$3. 16 billi o n
during th e period. C hina's strong continu ed growth for
2% [-5% ]
Jewelry Mai so ns
$1 .73 billi o n
Tiffany & Co. was offset by weakn esses in H ong Kong
Europe
$93 7. 5 milli o n NA [-3 % 1
A sia Pacifi
$1 .12 billi o n
NA [-9% 1
and Singa pore. Japan 's sales ga in ed 12 percent du e to
Ameri cas
$556.3 milli o n 9% [-3 % 1
strong tourist numbers, though its gains were reduced to
Japan
$303.5 milli o n 17% [9% 1
9 percent after strong US. dollar considerations.
Middle East & A frica $245.2 milli o n 4 %
. Europe's 4 percent sales increase in constant exchange
rates was turned into a contraction of 4 percent after currency
*Percentage in bracket s reflects change at constant exchange rates
considerations. Sales rose in the u.K. but notably declined in
HOLIDAY SEASON 2015
Rapaport February 2016 35
COVER
Country of origin and treatments impact

colored gemstone prices.
By ETTAGAlE BlAUER
Taka t
42 Rapaport February 20 16
n the world of gemology, tw"O key facto rs influence

the price ofrubies, sapphires and emeralds - whether
the stone is trea ted and its country of origin. While
treatments such as heat or clarity enhancement playa role
in determining the market value of a stone, it is the country of
origin that has the most signifi cant impact on price.According to
Rahul Kadakia, international h ead ofjewelry for Christie's, a very
fin e, unheated Burma ruby can fetch $1 million a carat, w hile a
comparable T hai ruby might bring only $1 00,000 per carat. Given
the importance of country of origin, there is growing pressure on
laboratories to make this vital determination.
Ascertai ning country of origi n poses many challe n ges.
C h ristopher P. Smi t h, pres iden t o f Ame r ica n Gemological
Laboratories (AGL), says th e process is "part science and part art,"
with "lots ofexperience" added in .The scientific methods are used
to examine the "different properties and characteristics" while
looking at the stone in it~ entirety. "Methods include microscopy,
visible and infrared spectroscopy, as well as chemical com position,"
Smith explains. All the data has to b e examined and interpreted.
Pierre H ardy, spokesm an for Giibelin Gem Lab, a Swiss gem
laboratory that examines colored gemstones, likens the process
to detective work , "gathering all possible clues and evidence, in
order to put the puzzle together and see the big picture, that is,
the origin ." Moreover, he points out," T he gemological properties
are primarily the result of the geological envirolllilent in w hich
the gemstone grew vvithin the earth ."As a result, H ardy notes that
many gem laboratories are hiring scientists train ed in geology
rather than regular gemologists.
Place of origin remains the m ost difficult part of the

Gemological Institute of Am erica's (GIA) work explains
Shane McClure, G IA's glo bal director of colored stone
services. AGL, Giibelin and GIA send field gemologists deep
into the mines to see the gems where they are found, which is
the best m eans to obtain verifiable source material to determine
origin.This research in the field provides samples as a basis for
the laboratories' reference data.
TREATMENTS
Although whether or not a gemstone has been treated or enhanced
factors into price, the reality is that very, very few rubies, sapphires
and em eralds reach the market without some kind of treatm ent
or enhan cemen t. To maintain the integrity of th e colored
gemstone business, Douglas Hucker, chief executive officer
(CEO) oftheAmerican Gem TradeAssociation (AGTA),says,
"Any treatment should be properly declared. Customers accept
information as long as it is disclosed."
However,counter to regulations (seeTreatment Disclosure, right), some
stonessold in the market are treated and not disclosed as such.
This can cause problems for the laboratories, wholesalers
and retailers alike. For laboratories, all ston es are initially
suspect and the process of investigation begins.
The complex world of treatments in terms of rubies,
sapphires and emeralds comes down to two words: heat
he Federal Trade Commission (FTC) specifies when
or fillers. Today, the heat treatm ent of corundum and
treatment must be disclosed as follows:
clarity enhancement of emeralds is routinely employed
to improve the color and/or clarity of these gems. Other
If the treatment is not permanent.
forms of treatment may also be applied to these gems,
If the treatment requires special care.
however they are not as c0llU110n.Additionally, certain
treatments, such as heating, may inhibit the ability to
If the treatment has a significant impact on value.
perform a country of origin determination , whereas
others, such as clarity enhancement, do not materially
The American Gem Trade Association (AGTA) offers the
following guidelines:
impact a lab's ability to determine a gem's provenance.
Adding another layer of co mplexity is th e lack
Treatment should be disclosed at every step along the way,
of agreed-upon definitions among the laboratories
which means from the moment it is mined, where
on how to describe the amount of treatment or the
filling or heating may take place in the rough, to the cutte ,
color of a stone and th e diffi culties in inter preting
dealer, jeweler and retailer.
th e nomenclature appearing on colored stone reports
For more information, contact the Jewelers Vigilance Committee,
today.What 1s"minor" as compared to " insignificant" or
272.997.2002.
"moderate," for exanlple?
EMERALD ORIGINS
Accordin g to Smith of AGL, most gem varieti es form around a limited range of
geological variables. As a result, there are similar types of material that can occur in
different geographical areas ." For emeralds, we are looking at specific inclusion features,
chemical composition and spectral features as clues to origin. When one considers
Top: Emerald before (top) and after (bottom) ExCel" process. Photo courtesy Eternity Natural Emeralds.
Colombian emeralds, they stand out as originating from a uniqu e geologic occurrence
consisting of an evaporative brine from black shales in veins an d breccia, which im parts
properties unique to that 10cation.Whereas,emeralds from Brazil and Zambia have mostly
formed in a classical schist type deposit and therefore may be very similar in properties
and characteristics to on e another."
Another point ofdistinction , says GrA's McClure,i~ that "Colombian emeralds typically
have three-phase inclusions in jagged voids, calcite and pyrite crystals and an unusual
kind of graining referred to as 'gota de aceite'-literally 'drop of o il.'"
EMERALD TREATMENTS
Wendi Mayerson, senior staff gemologist at AGL, notes that the treatment of emeralds
is nothing new. "Pliny describes dyeing emeralds in 77 AD." Moreover, she says, "You
can use almost anythin g to fill fiss ures in emerald," w hi ch can make id entifying the
nature of th e filler challenging. Few labs, such asAGL, identifY the
nature of the fillers used to clarity enhance emeralds in addition to
quantifYing the degree of the treatment. Most labs, such as Giibelin
and G IA, only quantify the extent.
Adding oil to emeralds is considered the "traditional" treatm ent.
According to Kadakia, an em erald " that only has minor oil is an
t is known within the industry that rubies
accepted form ofenhancement." Polymer-type resins are the tool of
mined in Burma prior to 2008 are not
choice of many for filling the fissures that are common in emeralds.
allowed to be imported into the U.S. Why
Unlike oil, which can dry up or leak out over time, resins are said
then are sapphires not part of the sanctions?
Cecilia Gardner, president. Jewelers Vigilance
to be more permanent, but Mayerson says that's not always the only
Committee (JVC), says, "The sanctions were
point to consider. "Modern, polym er-type fill ers;' Mayerson says,
enacted under President George W. Bush.
"can also be better at reducing the appearance offissures."
It was known that the Burmese military
While there is a variety of polymer-type fill ers used on emeralds,
controlled rubies. and jadeite. Sapphires
the ExCel process is often m entioned by dealers an d other
were not under the same control.
laboratories as the best method. Clarity E nhancement Lab (CEL),
The sanctions were renewed in 2014 in
located in NewYork C ity, is credited w ith developing the ExCel
spite of tentative moves toward democracy.
process and remains th e only location performing the treatm ent
Christopher P. Smith, president of American
process. Alth ough it is considered to be permanen t, Et er nity
Gemological Laboratories (AGL), says.
"Before sanctions were imposed, the ruby
Natural Emeralds (ENE) P resident Shawn O'Sullivan says, " It is a
trade in Burma w as decentralized. The
stable fill er and so will not alter in color or transparency over time.
government was not able to get control of
However, it can also be taken out ."
BURMA: SANCTIONS
it. Since sanctions. the small -scale miners

were cut out of the distribution networks."
PRICING EMERALDS
According to Gary Schuler, director of the jewelry department at
Sotheby's, if an emerald is untreated, other than with minor oil or
traditional type filler, it's worth 20 percent to 30 percent more than a stone treated with a
modern filler. If there has been significant treatm ent resulting in more fissures filled with
a product such as resin, he says,"the value decreases by anoth er 50 percent to 60 percent."
Stuart Robertson, research director for GemWorld, a Glenview, lllinois, company that
offers appraisals, a colored gem and diamond price guide and other gemology-related
services, puts th e price difference for finer quality 5-carat to 8-carat untreated emeralds
at 70 percent to 100 percent more than treated stones.
Rayaz Tabt, ofTabt Gems, USA, a dealer in fine colored gemstones in N ew York,
points out that the branding of colored stones based on country of origin has added an
even wider dispar ity in pr icing. H e says an unenhanced Colombian emerald is priced
five times as high as an unenhanced Zambian emerald - $200,000 per carat for the
Colombian, $40,000 to $50,000 foc the Zambian.

ami Prive
CORUNOUM TREATMENTS
For corundum - sapphires and rubies - heat is the enhancement of
choice fo r its ability to add or soften color or even melt away inclusions.
Smith explains there are broa dly speaking three categories of heating:
relatively lower temperature heating, relatively higher temperature heating
and more extrem e heating conditio ns.
R elatively lower temperature heating is generally considered as being
below the threshold when rutile silk - an inclusion within the sto ne dissolves, where primarily o nly the appearance of the stone is changed
by rem oving less desirable colors or color modifiers. "Although the
pra ctice of heating coru ndum dates back more tha n a tho usand
years, since about the mid- 1970s relatively higher temperatures and
co ntro lled hea ti ng con ditio ns have become th e most comm o n
type of heating," Smith explains." U sing higher temperatures and
controlling factors such as the atmospheric conditions, holding
the stones at temperature, as well as ramping up and down of
th e temperatures allows for much more to be accomplished
in addition to just modifying th e color to a greater degree,"
Smith says.
The transparency of a stone m ay be improved by dissolving
rutile silk, as well as healing fissures. In addition , under m ore
extreme heati ng con diti o ns additi o nal elem ents su ch as
titanium, chromium and/o r beryllium can be diffused into
the stone. Smith adds, "Essential characteristics and properties
of rubies and sapphires are altered at the relatively higher
temperatures and under more extreme heating conditions.
This can im pact a lab's ability to determine origin ." O rigin
determinations are still possible in heated rubi es and
sapphires, however Smith points out one example of
why this can becom e m ore challenging." Rutile silk is a
CITY
HOUSE
LOT#
SHAPE
SIZE
COLOR
CLARITY
Hong Ko ng
Hong Kong
New York
Hong Kong
Christ ie's
Christie's
Christ ie's
Christie's
- 2724
-2724
Cush io n
Cush ion
Oval
Cush ion
23 .12
25 .38
8 .24
26.41
Emerald
Emerald
Ruby
Sapph ire
Colombia
Colombia
Burma
Kashmir
$83,612
$83,612
$5 12,925
$145,347
$1 ,933,103
$2,122,066
$4,226,500
$3,838,618
Hong Kong
Hong Ko ng
Geneva
Geneva
Christie's
Christie's
Ch ristie's
Ch ristie's
- 1898
- 1898
66
Pear
Pear
Cushion
Octagonal
23 .18
23 .34
32.08
47. 15
Emerald
Emerald
Ruby
Sapphire
Colombia
Co lombia
Burma
Burma
$97,919
$9 1,919
$209, 154
$77,884
$2, 130,674
$2, 145,38 1
$6,709,664
$3,672,235
Geneva
Ho ng Kong
Geneva
Ch ristie 's
Ch ristie 's
Sotheby's
263
Cushion
Oval
Ova l
23.28
13.21
114.73
Eme rald
Ruby
Sapphire
Colombia
Burma
Burma
$83,434
$449,596
$62,082
$1,942,341
$5,939, 160
$7,122,692
Ho ng Kong
Geneva
Geneva
Sotheby's
Sotheby's
Ch ri stie 's
1935
Step-cut
Cushion
Cushion
35.72
8.62
392.52
Emerald
Ruby
Sapphire
Colombia
Burma
Ceylon
$121,777
$993,816
$44,777
$4,349,880
$17,575,740
$4,226,500
Ho ng Kong
Geneva
Geneva
Ch ri stie 's
Sotheby's
Ch ri stie 's
2 11 1
502
38.51
25.59
35.09
Emerald
Ruby
Sapphire
Colombia
$60,383
Burma
$1,183,045
Kashm ir
$210,268
$2,325,356
$30,274,113
$7,378,310
2011
11111/1 1
11111/11
12/01/1 1
11111 /11
77'
2813
2012
11 127112
11 127112
05/14/12
05/16112
358
2013
05/15113
11/26113
11/13/ 13
2075
355
2014
10/07/14
11/12114
11/11/14
470
348
2015
06/02115
05/12115
05/13/15
*Sold at El izabeth Taylor Auction
351
Octagonal
Cushion
Cushion
Source: Rapaport Magazine auction results.

Rapaport February 2016 4S
very conunon inclusion in ntbies and sapphires from many

origins. However, some sources may exhibit patterns of
rutile that help us to determine where the ston e has
originated from . Since relatively higher temperature
heating will dissolve the rutile, making it disappear, we
no longer have this inclusion feature to help us in
our determinations."
RUBY
Akiva Gil
While most ruby undergoes heat treatm ent,

there is a small production of stones that remain
unheated. In the past, a majority of the unh ea ted
rubies came from Burma, presently Myanmar. However more
recently, the Montepuez region of Northeast Mozambique has
become an important source of unheated gems. Originally discovered in
2003, London-based mining company Gemfields obtained the mining rights in 2011 .
Gemfields subsequently started to offer their ruby production through public auctions
in June 2014.
Niveet Nagpal ofOmi Prive in Pasadena, California,says,"There is always a challenge
sourcing finer-quality material. Rubies are probably the most difficult because of the
way ntby is formed in nature;larger sizes are very rare." Of the new source, he says," The
Montepuez stones are some of the m ost beautiful in the world ." Many of these stones
tend to be darker with brownish or purplish undertones, however in th e best-quality
stones, the color can be bright and vibrant, even rivaling Burmese gems. On the plus
side, he says, " There is a small, yet consistent supply of unheated stones so sellers are
able to offer the rarity of an unheated ruby without the price tag associated with fine
Bunnese gems."
" There are a few classic inclusions in each of the big three colored gems but also
exceptions to all ofthem;'says McClure."Bunna ntby from Mogok typically has clouds
of very fine rutile needles, rounded transparent crystals of calcite and irregular swirling
graining and color zoning."
Still, nothing surpasses fine Burma rubies. "Burma stones have a kind of inner glow
that no other source seems to have," elaborates Nagpal. "Thai and African stones typically
can 't com pare. They tend to have a different chemistry, usually meaning more iron that
impacts their color."
PRICING RUBIES
In the market today,Burma and Mozambique dominate the ruby landscape. In terms
of pricing rubies, Nagpal goes on to say that for an unheated gem of similar quality,
Burma ruby carries an enormous premium over beautiful Mozambique rubies, with
the Burma ru by costing 200 percent to 300 percent mote. "Pricing for these rubies
however," Nagpal continues, "is not an exact science."
The difference is not as extreme for heated stones.The difference between a price
for a Burma or an African ruby from Mozambique or Madagascar is 20 percent to
30 percent for smaller sizes and average qualities. As the size and quality increase, so
does the difference in price.
SAPPHIRES
In the world ofsapphires, there is considerably more unh eated mater ial than one can
find in mby. For blue sapphires there are al<;o more sources that supply global demand:
These sources consist of Burma (Myanmar), Ceylon (Sri Lanka), Kashmir (Northern
India) and Madagascar.When it comes to origin deter minations, this greater number of
sources can also make origin determinations trickier." You would never confuse Burma
and Kashmir blue sapphires;' Smith says,"however both Sri Lanka and Madagascar can
produce Kashmir-like stones." Smith furth er explains, "O n the other hand, tru e Burma
stones may be cOMIsed with some Sri Lankan and Madagascar material as welL"
Kashmir sapphire typically has extremely fin e- grained cloud.. in parallel planes,
tourmaline inclusions and elongated corroded zircon crystals, says M cClure.
SAPPHIRE PRICING
With blue sapphires,Takat says, a stone fro m Kashmir would be worth $100,000 per
carat, while a similar sapphire from Madagascar would go for $20,000 per carat.
Time has played a role in pricing, of course, as the m arket for th e increasingly rare
stones grows . According to Kadakia , a 10-carat Kashmir sapphire that sold for a total
of$10,000 in 1965 is now p,iced at $150,000 to $200,000 a cant.
GRADING SYSTEMS
Unlike the world of diam ond grading where th e G IA's D - ro- Z system is in use
globally, several co lor grading systems co mpe te for bu yer's and selle r's atte ntion.
Explaining G IA's procedure, McClure says, " The colors listed on our reports are simple
visual colors .We use Munsell color references for consistency."
GemDialogue, a color comm u ni cation syste m devised by th e
late gemologist Howard Rubin in 1983 and still in use today,
includes 21 transparent color charts showing ten saturation
levels for each coloLA stone is positioned against th e
various charts until a match is found. Th e system is
presented in a loose-leaf binder and is meant to b e
used in the field when the gem buyer is without
access to other tools.
In the past two years, Gem World introduced a
very similar system , based on M unsell chips, but
also providing pages with overlay charts. Each
of the 1,400 colors is given a specific name. The
system is intended for use with the firm 's Gem Guide
pricing scale.
The system in use atAGL takes a more holistic approach
to grading co lored stones. It evaluates the color based on a
l - to-lO scale, while al<;o looking at other important fa ctors,
su ch as th e clarity and cutting. AGL's system is not as easy to
grasp at a glance as there is a lot of information to absorb, but it is
intended to give the m ost precise, and repeatable, m easurem ent of a
stone's quality in a way that is comparable to the G IA grading system
for diamonds .
Kashmir Sapphire.
Photo courtesy Sotheby's.
T he traditional description ofthe finest rubies as "pigeon's blood" color

is coming back into use. GemWorld's Robertson says one lab mainly
servicing the Chinese market is grading up to 90 percent of the rubies
it sees as being "pigeon's blood" red. Schuler notes, "We are going back
centuries when the ultimate customer was a king, a conquerorT hey lived
and breathed battles and hunting."
PAPER TRAIL
RUBIES, SAPPHIRES, EMERALDS 2011-Nov. 2015

Source: u.s. Census Bureau
QUANTITY BY CARATS
Rubies Cut But Nat
Sapphires Cut But Not
Emeralds Cut But Not
Set For Jewelry
Set For Jewelry
Set For Jewelry
2011
3.922.651
6.981.303
2.755,435
2012
4.259,789
5,944,317
2,894,750
2013
3,757,687
6,862,776
3,039,527
2014
3,616,487
6,079,823
3.320, 118
201S.Nov.2015
3,142,900
6,142,333
4,738,196
CUSTOMS VALUE
Rubies Cut But Not
Sapphires Cut But Not
Emeralds Cut But Not
Set For Jewelry
Set For Jewelry
Set For Jewelry
2011
44, 185,657
280,730,523
348,192,117
2012
111,535,046
268,391,400
410,381 ,298
2013
148,162,093
345,595,211
433,569,922
2014
132,358,567
415,740,636
647,422,754
201S.Nov.2015
137,651,515
401 ,449,056
530,239,342
Given the increased value of colored

stones, today's buyers want more than
a single report. As a result, it is not
uncommon for important co lored
stones to have two or three reports for
any given stone.With the demand from
the market and consumers, several labs
have also developed special letters and
even custom made small books to better
highlight the qualities of a particular
gem, as well as the region from which
it originated.
W ith demand fo r th e finest rubies,
sapphires and em eralds on the rise, the
pressure will only grow on labs that
certify th ese gems to m ai ntain th eir
sta ndards and to continually pursue
more and better ways to ensure their
results in terms oforigin determinations
and th e detection of treatments. It is an
ongoing struggle bu t one that must be
waged with vigor.
CONCLUSION
As th e most prized em eralds, rubies

and sapphires becom e increasingly rare
and a more sophisticated global custom er emerges, cou ntry of origin
and treatments, or lack thereof, are increasingly important elements in a
gemstone's pedigree, all ofwhich determines j ust how much the stone is
worth. Gemological laboratories play an important role in ascertaining
that gemstones and the factors influ encing their value are properly
identified.This is essential for safeguarding consumer trust.
" T he laboratories take very serio usly the trust that the trade and
consumers have placed in us to accurately identify the stones they submit
to properly disclose treatments and establish their provenance," Smith
concludes "Although gemology is not an exact science, we are constantly
investigating ways to refine o ur due diligence, to improve upon our
standards and increase confidence in our results." .
Charm Jewelry Bolsters Sales

BY lARA EWEN
Mter holiday sales numbers were

tallied, retailers allowed that while
the 2015 holiday wasn't a complete w in ,
it ended on an overwhelmingly positive
nmc. Sales and traffic were modestly up
in most areas, helped by the success of
lower-priced fashion items such as the
stretchable Paris bracelet ofSwavorski
elements and moderate designer lines such
asAJexandAni.Colorand bridal sold well.
Overall, retailers were confident that 2016
would bring improving sales, higher traffic
and a continued undercurrent of cautious
optimism for the future.
WRAPPING UP THE YEAR

Several weeks after the 2015 holiday
season WTapp<.--xl up,stores were able to make
a firm assessment ofbmh the holidays and
the overall year, and for the most part the
numbers were good. "ChristnllS 2015 was
better than okay," said Hank Davis, owner
of D avis Jewelers in Louisville, Kentucky.
"We had a double-digit increase. We were
trending that way for the year, but Christmas
is its own entity. I would say designer brand~
are important, but it's not just the brand,
it's the presentarionYou want the steak and
the sizzle. It's about experience, and not
just how you treat the clients. It's about the
overall experience."
Sales were also robust in the
mountain states. "20 15 ended well," said
Keith Hurdle, owner of Hurdle's Jewelry in
Boulder, Colorado. "We had a record year,
our b<.--st year ever. It was 10 percent above
2014, and 2014 was our previous best
year. It's probably becallSe of our push on
social m edia, and because Boulder seems
immune to economic woes. There's a lot
of tech here. That said, we didn't see high
individual-sale dollar figures . During the
holidays, our average sale was double what
it used to be, at $2,000 and $4,000, but we
didn't see a lot of five-figure sales."
Stores credit increased traffic and
the popularity of branded product for
th e improved bottom line. "2015 was
great," said Charla Hall , manager of
Baker & Baker Jewelers in Marietta, Ohio.

"We had more tram;.action~ than in the past
due to brands like Alex and Ani, and our
final numbers were up, so we are happy
with how 2015 ended."
CONCERNS AND QUESTIONS

Unfortunately, not all stores saw record
nWllbers."1will say in tenns ofthe year, thing;
were quiet;'said Ryan Krasner,vice president
and marketing director at Harold Steven's
J ewelers in San D iego, California. "Our
December wasn't as strong as the previous
year, but \ve had a better November. Some
things came in last minute, but some ofour
existing customers didn't come back, or
they spent less."
Additionally, however successful 2015
was, some retailers had concerns about
the coming year. "20 15 was robust," said
Joe Strong, co-ownerofWaterfall Jewelers,
with two locations in the Detroit area.
"One location had its best year, both
saleswise and in terms of traffic. The other
location was about the same year on year.
Bm I think 2016 is kind of scary. For my
store, I expect an increase again, bm with
the political climate and possibility of
terrorism, we could be one terrori~t attack
away from the stock market going down.
But as long as nothing dramatic happens,
then the year should be okay But it's a littie
scary,just like 200 I You never know."
selling more expensive colored pieces .

"Color is doing very well, and we're doing
more outside the three majors," said Hurdle.
"Tourmaline i~ doing well for us in a "Variety
of colors. I'm a fan of color, but sales are
about price more than anything else. Ruby,
emerald and sapphire have gone up so fast,
it's hard for people to look at a small stone
and spend money on it. I hear a lot of the
finer material is going to China and that
drove prices up. But that's just hearsay."
Other stores are finding real success with
affordable fashion lines. So much so, in fact,
that it's been hard to meet demand. " We
have been trying to restock Alex and Ani,
but they are out ofso much t1lat it has been
a bit of a battie," said Hall. "But we aren't
selling beads much, and more people are
coming in for self-purchases over gifts."
Slrong agre<.-..:l.."We've carri<.-..:l.A1ex andAni
for a year and a half,"he said."ln D ecember
2015, we sold about 4,000 Alex and Ani
bracelets, as well as Paris bracelets, and that's
nice because it helps with the slumping
sales for Pandora." .
COLOR AND FASHION

One of rhe big stories moving forward
was the success of colored gemstone
jewelry, although semiprecious generally
sold better than precious. "We don 't sell
rubies and emeralds very well," said Davi~.
"But sapphires and semiprecious sell well."
Some stores are glad to find new focus
on color. " Overall, 2015 was a good year
for colored stones," said Krasner. "We saw
a slight increase for nice colors in the right
design.We are a heavily bridal store,so I can
take a little hit on the bridal, but we need
to increase in fashion."
Still, some stores were having problenL~
Round brilliants sell best, with ovals and

cushions tied for second place.
1.25-carat stones are the current top sellers.
511 is the most popularclarity.
HII is the most popular color range .
18karat white is the topselling metal,
mainly due to its use in popular designer
lines. Rose and yellow gold also continue
to trend.
The average price for an engagement ring,
including stone and setting, is $7,780.
Market Conditions Continue the Same

BY SHUAN SI/y\
The subdued growth seen during

the holiday months of November
and December 2015 continues imo
January 20 16, though wholesalers have to
contend with challenging prices. " I was
expecting morc, but r can't complain,"
said Betty Livieim, president ofAmerican
Gem Corp., a d iamond importer and
wholesaler based in New York. She
noted that clients have been looking for
beuer-quality goods - around VS clarity
in colors F through H - yet want prices
that make it challenging for those in the
midstream. "Even ifT offer a very decent
pr ice for a stone, they still want it
cheaper !" expressed Livieim, describing
buyers having an eye out for rhe best
bargains as representing the prevalent
mood in the market.
Roy Wachsler, a sales executive from
Dharm International,a NewYork subsidiary
of Dharmanandan Diamonds Pvt. Ltd.,
said that business has been slower than
usual but he believes that they came out
okay. "Customers are getting smaller sizes
and offering lower prices," he commented.
"Small " goods and "big" goods - from
.4 carats to 1 carat and 5 carat~ to 6 carats,
respectively - fared well in recent montlL~,
with anything in between struggling a
little. Diamantaires reported having no
inventory trouble for most goods that they
need despite a reduction in manufacturing,
and they did not foresee any shortages any
nme soon.
IIIDIA DIAMOND WEEK IN NEWYORK

The January In dia Diamond Week in
NewYork was the fOlUth iteration ofits kind
held at the D iamond Dealers Club (DDC)
in New York City. M any exhibitors shared
that the first two days of the show were
great, but traffic dropped off sharply by
the third day. The show attracted about
1,000 buyers and 70 exhibitors - 15 of
whom were from India, brought in by
the Gem & Jewellery E},.-port Promotion
Council (GJEPC) . Many were of the
opinion that the show in August 2015
was better, which in turn was eclipsed
by the January 2015 show. "Everybody

wants to sell but no one wants to buy,"
said Livieim, who was exhibiting at India
Diamond Week for the first time. Some
felt that the lackluster traffic might have
been due to the show being too close to
the gem and jewelry shows in Tucson,
Arizona, and Miami, Flo ri da, both in
late January, and the upcoming shows in
Hong Kong in March.
Ching Parikh, director of Janam
Corporation Pvt. Ltd., a manufacturer
based in Mumbai, said that it was
"definitely worth it" to return for their
second In dia Di amond Week. "We
brought many Gemological Institute of
America (GIA)-certified goods, and the
last time we didn 'r see much response for
some fancies such as princesses,so we were
able to prepare rills time around," Parikh
said. D avid Lasher, managing director at
DDC, commented that some returning
exhibitors who brought tile right kind of
goods did exceptionally well at this show.
NEW CONTACTS
For some other exhibitors, the
opportunities to make new contacts
and reestablish existing relationships
were the main draw of the event.
" If I were only to look from a sales
perspective, then rhis wouldn't be a good
show," claimed Nilesh Chhabr ia, chief
operating officer of sales and marketing at
Finestar Jewellery & Diamond~ Pvt. Ltd.,
a Mumbai manufacturer. He explained
that this show allows customers who only
know tllem through trading platform.~ to
see them "face to face, which will make it
easier to do business in the lilmre."
The pric e challenge that buyers
presented at the show surprised some
Indian diamantaires. "The buyers here
seem to have better bargaining power,
as many of them have cash in hand ,"
commented Akshay Dugar, a partner of
Mumbai manufacturer Choice Diamond.
"In Mumbai, I can usually get prices dose
to my asking prices. I would probably
make more money sitting in Mwnbai than
here in New York," he said. However, he

reflected that tlus had been a good show
for him due to the business opportunities
presented and added that he would come
back for the next show.
T he Ind ian exhibitors felt that the
U.S. diamond market, compared to other
global markets, is stable. "The U.S. market
is never bad," said Chhabria. "After all, this
is where the bridal jewelry tradition is
firmly established.'While diamond bridal
jewelry is slowly fmding a foothold in
India, it is still easier to sell bridal-oriented
goods such as rounds for rings in the U.S.,
he added.
Compared to tile Indian wholesalers, the
New York diamantaires were less certain
of a rosy outlook for 2016. They felt that
there have been no dear signs from the
economy and the industry promising
them good sales ahead. "If I' m going to
base my assumptions on this show," said
Wachsler, who exhibited at the show;"tllen
probably not." +
Stones up to 1 (a rat, and 5 (aratsto

6 carats sold well.
Demand was strongest for VS2-SI2,
F through J color.
Round sales steady, with ovals and
princesses most popular for fancy shapes.
Wholesalers noted that buyers were
seeking steep discounts.
India Diamond Week had buyers looking
for stones between 1 (arat and 3 carats.
Some interest in emerald and pear shapes
at the show, with ovals being the hottest.
Buyers were reque5ting GIA goods, in the
VS and SI ranges in (olors G through K.
Tough Start to New Year

BY MARY KAVANAGH
Business continued to be tough for

Hong Kong's diamond industry in
the early weeh of the new year following
a difficult 20 15. Retail sales fell 7.8 percent
in value and 6 percent in volume in
November, putring the city on track for its
worst performance since 2003 when SARS
hit.At thl[ time, retail sales for the Kill year
decreased 2.3 percent in value compared
to a drop of 3.1 percent in value for the

11 momhs up to the end of November
2015. Thomson Cheng, chairman of the
Hong Kong Retail ManagemcntA'\.mciarion
(HKRMA), predincd the full-year figure

for 2015 to have fallen by 3 percent at least
and many of the association's members
have predicted a single-digit decline for
2016.Tourist numbers to Hong Kong over
the Ciuistmas and New Year period were
down 2.53 p ercent compared to the
previous year, with the biggest drop in the
number of visitors from Mainland China,
which was down 5.45 percent.
NOT IN THE MOOD

"2015 was very challenging in the entire
luxury world and we aho felt a slowdown,"
said Alon Garry, chief executive officer
(CEO) and founder of luxury jewelry
brand , Van Eyck, and diamond trading
company, Windiam Asia. Van Eyck is a
high-end fine jewelry brand that sells pieces
in the $20,000 to $200,000 price range
and targets high-net-worth individuals
who already own diamond jewelry and
are looking for something unique. "Our
customers have money, but they are nm
in the mood to buy," he said. On the
wholesale side, last year was the worst
year since the 2008 crisis, according to
Garty. " It's different from the 2008 crisis,"
he said. " Prices crashed in 2008, but came
back up after ten months and we had a
lot of bargains and opportunities, but
the current crisis has been ongoing since
2014 - 18 months - that's a long time,"
he added. Garty saw a slight pick-up in
business toward the end oflast year, mostJy
for large stones - 5 carats and above for
fancy colors on an order-basis only and
10 carats and above for white diamonds.
Simon Zion of Dehres Limited also
reported that business in recent months

has been challenging. " It was a difficult
season and we are feeling it tremendously
the past five to six months," he said noting
that the anticorruption campaign in China
had hit the HongKong,Macau and Taiwan
markets hard.
COLORED GEMSTONES
The market for colored gemstones has
increased over the past year. According to
Zion, the high level of tramparency in the
diamond industry has made it more difficult
for wholesalers, brokers and retailers to
make the same profit margins as before.
" I think this is a major factor pushing
people into the colored stone business.
There is a much wider range ofgoods, and
the goods are generally much cheaper in
total value so customers who are a bit more
cautious in how they spend their money,
yet still want to buy an impressive necklace
with big stones, can do that," he said.
The increased demand for rubies,
emeralds and sapphires has also been
influenced by the recent success of tJlese
stones at the Sotheby's and Christie's
jewelry auctions. Over the past year these
stones have featured heavily in top ten li~t.~
and have repeatedly smashed world record
prices. " T he most popular gemstones are
rubies," Zion said. These arc extremely
popular and it seems that every top-quality
unheated Burmese ruby that comes to
auction smashes records. "We pay a lot of
attention to colored stones," Zion added.
"Even in a tough market they are popular."
Customers tend to go for larger gemstones,
2 carats to 3 carats for earrings and 5 carats
for main stones.
INTERNATIONAL MARCH SHOW

Exhibitor feedback from 2015's three
main international jewelry shows in the city
was not overly positive. The Hong Kong
International Jewellery Show w ill take
place from March 1 to 7, at two venues in
the city. Dehres Limited will be exhibiting
and, although hoping for an improvement
over 2015 show, Zion is realistic in his
expectations. "The shows last year were
not as good as in previous years and we
anticipate it to be similar in 2016," he said.

"The March show is the most important
show in A~ia, along with the September
show, and we deftnitelywon't be giving it up,
although we have had a few difficult years."
Garry, on the other hand, has made a
strategic decision for Windiam not to
exhibit at any of Hong Kong's international
jewelry shows this year - for the first
time in 15 years. "When I started to do
the exhibitions in Hong Kong, there were
18 diamond exhibitors. Now in March ,
there are more than 800," he said, noting
that there was not necessarily the equivalent
increase in customers to match that of
exhibitors. "The shows used to account
for 30 percent of our annual mrnover in
sales, but today it is 10 percent," he pointed
out, adding that the commimlent of time
and resources necessary to exhibit doesn't
make sense for them any more.
Th e future is uncertain for industry
players and many find it difficult to
anticipate which direction to move in
next. Only time will tell if the market has
already bmtomed out and if there is hope
of a recovery this calendar year. Everyone
is hoping for better days. +
Customers are generally buying less and

buying smaller pieces.
Well-designed fashion jewelry at
lower price points w ith smaller stones
continues to do well .
There is a shortage of 2-carat to 3-carat
fancy shapes an d goods in VS and SI quality
as wholesalers sell existing stock.
A slight pick-up in the market was seen for
goods on order overthe Christmas period
along with a slight increase of 3 percent
to 4 percent in the price for diamonds
weighing less than a carat.
Hong Kong Show Will Be Market Barometer

BY AVI KRAWITZ
After a tough year in 2015 and some

improvement in recem months, Israeli
diamantaires expect that the Hong Kong
International Jewellery Show in March
will provide a hencr indication of how
trading will develop in 2016. "The March
Hong Kong show will be an interesting
time to measure where the market is going,
what prices dealers are paying and what
inventory requirements we will have," said
MishaelVardi, owner ofVMK Diamonds,
a supplier of fancy color diamonds.
The Israel Diamond Institute (IDI)
pavilion is usually among rhe largest
at the event as the Israeli industry has
used the Hong Kong shows as an effective
platform to raise its exposure in the
A~ia Pacific region.lsaacBerman,presidem,
I. Berman Diamonds, explained that
sLlch a gathering should provide some

perspective to Israeli diamantaires who
are not sure in which direction the market
is heading - especially in light of the
declines experienced in 2015 and overall
caution about the Chinese economy. He
added that the event is important given
the large number of dealers and buyers
that attend the show and it is also the first
real opportunity for jewelers to replenish
inventory that was sold during the
Chinese New Year Spring Festival.
U.S. STABLE, CHINESE UNCERTAINTY
D<.---alers who spoke with R.11fxrport Mq~zille
reponed that U.S. demand was stable in
January and they were satisfied with the
U.S. market after the holiday season.
However, their attention shifted to the
Asia Pacific region, which was more
volatile ahead of the Spring Festival.
Carmel Lustig, marketing and sales
direc[Or at Lustig Brothers, which deals
mainly in triple EX certified diamonds,
noted that there was a tremendous
improvement in the Chinese market about
three months ago. Jewelers in China and
Hong Kong placed most of their diamond
orders in November and December so
they could have the jewelry set in time for
the festival, he explained. Chinese demand
therefore quieted as the season approached
and activity also slowed in January as

stock markets slumped.
"People are heavily invested in stocks
and real estate and therefore it is natural
that the diamond market should slow as
stocks crashed," Lustig said. "But I think
the Chinese New Year will be okay and if
the stock market stabiliz<.-'S, the Hong Kong
show will also be positive."
LOCAL SHOW, LOWER VOLUME
Similarly, Berman expects the International
DiamondWeek in Israel, taking place from
February 14 [0 18, w ill lift sentiment in
the local trade. Israel Diamond Exchange
(IDE) PresidentYoram Dvash stressed the
event giv<.-'S local suppliers access to buyers
they would otherwise not meet, while the
buyers gain access to a lot of new, first-hand
goods and attractive prices.
Supply remains a thorny issue for the
local trade as shortages have supported
polished prices but also made it difficult
for dealers to fill some orders. Vardi
expects that there will be shortages of
select goods at the Hong Kong show
since manufactllrers have not yet raised
polished production. Polished prices
firmed toward the end of 2015 due to
shortages rather than a spike in demand
andVardi expects that trend will continue
at the show.
For that reason, Israeli diamantaires
have mixed feelings abollt current market
conditions since trading is still well below
levels recorded at this time in previous
years. Data published by Israel's Economy
Ministry showed that the country 's
polished exports fell 20 percent year on
year to $4.99 billion in 2015, with the
volume of exports down 12 percent [0
2.179 million carats. Polished exports to
the U.S. dropped 16 percent to $2 billion,
while exports to Hong Kong plunged
28 percent to .$1.35 billion.
Shmuel Mordechai, Israel's diamond
controller, stressed that the decline was
in tine with the slowdown witnessed in
other centers, which stemmed from a
slowdown in demand in both the U.S.
and China.
OPTIMISM FOR 2016

Most dealers lowered their stock
position in 2015 and are now only buying
goods they know they can sell and make
a profit, according to Vardi. He added
that maintaining healthy liquidity is key
to operating in such a market. Suppliers
are hesitant to give credit out of fear they
won't receive payment for their goods, he
explained. Credit issues and the ability to
source the right goods are among the key
challenges facing the market in 2016 but
Vardi is confident they would be met in
the year ahead.
Lustig stressed that as long as rough
supply and manufacturing levels remain
conservative and demand is not affected
by external factors such as another
stock market shock, 2016 will be better
than last year for the diamond industry. "I
think that 2016 will be a better year and
you feel that we 've passed the bottom,"
Lustig said. "All the craziness of 2015
has calmed down and I think we will see
at the Hong Kong show that the market
has stabilized." +
Dealers satisfied with U.S. holiday season,

uncertain about Chinese New Year.
Steady demand for 'carat, D-H, S12,
triple EX diamonds.
Improving demand and shortages for
.30-<arat to .50carat, GJ, VSSI diamonds.
Good demand for ovals and pears with
shortage of topmake fancy shapes.
Fancy color diamonds stable, with very
good demand for goodquality pink and
blue diamonds.
Rough demand rising due to polished
shortages.
Rough Imports Lowest in Four Decades

BY ZAINAB MORBIWALA
Diamonds may he a girl's best friend

but given the demand dynamics, it
seems girL~ - along with everyone - ' "
losing their interest in diamonds and
befriending something else. The market
conditions have not as yet improved and the
industry overall is facinga tough time ahead.
INDUSTRY NEWS
In an exclusive interview with
Rapaport Magazine, Dinesh Navadia,
president of the Surat Diamond
A"sociarion (SDA) explained, "The markec
for diamonds in India post-Diwali has
seen some positive growth, hut to bring
in stability between demand and supply
for rough, it is important that diamond
manufaClUrcrs restrain from investing
in morc rough without clearing off the
inventory they have." Navadia shared
that the development of the small and
medium enterprise (SME) sector under
the association would address the issues
they face in relation to impon, [mance and
other related things that could help them
boost their business. Navadia added, "The
conunittee has already agreed to have an
SME senor under the Gem and Jewellery
Export Promotion Council (GJEPC).We
should see it being operational this year."
Mehul Chok~,chairman, Gitat~ali Group,
speaking exclusively with Rnpaport Magaziue,
pointed out, "The gems and jewelry
industry in India is facing a shonage of
rough, keeping in mind the speculative
demand." He added, "We have to look
at the demand for polished stock - i,
hasn't as yet seen much improvement. It
is important that we see profitability this
year, as we have witnessed negative growth
for the past two yean.We need equilibrium
between rough and polished. I believe
2016 should be a better year."
Highlighting the negative phase that
the gems and jewelry industry is currently
experiencing, Sabyasachi Ray, executive
direcror, GJEPC, told Rapaport Magaziue
exclusively,"It is a matter ofconcern to look
at tile figures of rough imports. Ncverin the
past four decades have we witnessed such a

drastic drop. If we take into consideration
the period between April 2015 and
September 2015, the import of rough has
gone down by 26 percent in value and
15 percent in quantity. This is not a good
sign. The demand for diamonds is facing
a global slowdown and this is one of the
issues that is concerning us."
SEEKING GOVERNMENT ACTION

In regard to the drop in imports of rough,
a delegation from GJEPC met with the
Finance Minister of India Arun Jaitley to
discuss a positive way forward.According
to a press statement by the council, the
delegation requested the introduction of a
SpecialTumoverTax regime forthe diamond
industry, with.75 percent tax on sales
turnover based on computing net income
as 2.5 percent of turnover, up to 6 percent
of incomeThis would be along the lines of
the tax regimes prevalent in other diamond
trading nations like Belgium and Israel.
Such an approach would be tax neutral
and encourage companies in Belgium and
Dubai to shift capital in India, in addition
to boosting e},.l'0n.~.
Another important point is the recently
opened Special Notified Zone (SNZ) at
the Blurat Diamond Bourse (BDB).
Praveenshankar Pandya, GJEPC chairman,
has urged the government to permit the
sale of rough diamonds at the SNZ by
implementing a .25 percent tax on sales
turnover by foreign mining companies.
According to him, this would generate a
new era of tax collection by shifting such
sales from Belgium, Israel and Dubai.At
present, only the viewing of diamonds is
allowed at SNZ but not the sale.
Also discussed by Pandya at his
meeting with the finance minister was
the inclusion of the gems and jewelry
segment under the interest subvention
scheme and merchandise exports from
India scheme (MEIS). According to
Pandya, if implemented, this would
immensely help the Indian gems and
jewelry industry. Pandya also pointed

out that the gold jewelry sector had huge
potential and therefore jewelers should
be included under the government's
gold monetization scheme. He noted that
the current 2 percent difference between
import duty on gold bars was too high
and suggested it should be brought down
to .25 percent.
In speaking with Rapaport Magaziue,
Ray further suggested that the 2.5 percent
import duty on colored gemstones too
should be waived as this would help
strengthen the colored gemstone and
studdedjewclry industry in India.
MARKET DYNAMICS
Choksi emphasized that keeping 1Il
mind the current political situation, the
implementation of gross service tax cannot
be expected to happen in 2016 and the
standardization of certain taxes between
different states in India would not be
implemented. Speaking of the current
movement of goods, Chok~i shared, "We
see a selective buying in smalls; particularly
fine-make goods are moving. We are aho
seeing positive movement in very small sizes
(-2) and +11 is moving in all ranges.There
is a shortage of dossier." +
Positive sentiments cont inue in the market.

Decent activity seen in VS lower category.
Good demand observed in .30 carats and
.40 carats.
Polished prices remains firm due to shortages
in supply as production is below capacity.
Jewelry Sales Shrink

BYSVETlANA SHELEST
A month into the new year, Russian

jewelers are assessing the results of
the year 2015 and the recent holiday season
sales, as they firm up their expectations and
consider plans for 2016. Given that the
country's economy at large experienced
quite a few downturns in 2015, the Russian
diamond jewelry market has shrunk
for the year by two third~ in dollar terms,
which corresponds to a decrease of
40 percent ifexpressed in rubles,according
to Bain & Company partner Olya Linde
in her interview with Russ ia 's leading
business daily Vcdomosti at the end of2015.
The company's analysts project that 2016
performance will remain around the same
level as 2015 and forecast a modest growth
of about 4 percent in 2017, if all gol.-'S well.
According to the jewelers themselves,
while the dramatic 40 percent fall in
diamond jewelry sales was experienced
by many, it should rather be considered as
an average that does not apply consistently
to all market players. Larger companies,
including the Moscow-based ADAMAS
and EstetJewelry H ouse,rLl'orted that their
2015 diamond jewelry sales stayed at the
level of2014. However, Fyodor Poludenny,
brand managerofGEVORKYANJcwelry
Group, which includes Estet J ewelry
House, told R.tpaport J\1agazitlc, the demand
for diamond jewelry with .50-carat stones
and higher declined by about 20 percent
in 2015, especially in the second half of
the year.
ValeriaArusramova,commercial director
of Valery Gold Jewelry H ome,said the fmn
saw a 20 percent decrease in the demand
for d iamond melee jewelry in 2015 .
She also shared that "mid-tier shopping
ranging from 50,000 to 120,000 rubles approximately $640 to $1,500 - is now
completely gone from the sales.T he bulk
of cmtomers are shopping for something
cheaper, while another group of buyers
is looking for the more expensive items.
We have received about 20 percent more
requl.-'Sts for diamonds 1 carat and up than
the previous year," she explained . Dmitry
Baranov, operations director ofADAMAS,
confirmed that "cer tain customers have
decided to shop specifically for diamonds
and are not tempted by o th er, more

affordable stones."
CREAnNG COMPElI1IVE ADVANTAGE

Among the shoppers seeking a
less expensive purchase, the demand
for silver jewelry and gold jewelry
featuring semiprecious stones has grown
considerably. "The main attraction factor
for today's customers is a modest price tag
balanced with original design," explained
Poludenny. " We saw a surge of demand
for gold jewelry w ith tourmalines and
amethysts in 20 15.AIso,gold jewelry items
featuring a mix of different semiprecious
stones - such as peridot, topaz, garnet,
sometimes ,vith small sapphires or emeralds
added into the mix - were quite popular
last year," he said. " In the more expensive
category ofjewelry with colored precious
stones, we have seen a growing interest
in rubies, which are relatively rare on the
Russian market, and a steadily high interest
in sapphires and emeralds," he added.
Stanislav Hofinan , commercial director
of St. Pe tersburg-based Sadko J ewelry
House,agreed that in tlle difficult economy,
sales require a strong competitive advantage.
"Our diamond collection Twist is still
sellingwell,"he said,"but under the current
market conditions, I would say this success
is driven by the unique know-how we
employ rather than the customer's interest
in diamonds." Sadko boasts a "dancing
diamond" proprietary technology, which
has been in production for three years
now. It is one of the first inventions in
the Russian market exploiting the idea of
showcasing the diamonds in movement.
The solution is both simple and effective:
The stone is suspended in the center of a
jewelry piece and balanced carefully so that
it responds to the wearer's movement with
continuous Butter.
NO CHRISTMAS MIRACLE
The majority of jewelers appear to
agree that Christmas and N ew Year sales
have concluded with about a 20 percent
year-on-year decrease. T he higher sales
results a year ago are largely explained by
an Wlprecedented customer shopping spree
that took place in December 2014 and

early 2015 fueled by a sudden devaluation
of ruble against the U.S. dollar. Summing
up the 20 15 season , Alexander Kurgansky,
founder and C EO of the Brilliant24.ru
online diamond store launched in 2015,
said: "Unfortunately, this year, there could
be no 'Chrisnnas miracle.' D ecember 2015
was no different than any other month of
the year in that itwas very hard and required
triple effort to produce fCSults." Kurgansky
went on to explain that in 2015, customer
preferences were D to G,VVSI toVVS2
stones ranging from .25 carats to .50 carats.
" Russian diamond shoppers prefer white
and clear stones even if that means having
to compromise on the weight," he said.The
most popular cuts were round, princess and
cushion. In Kurgansky's opinion, these
preferences are not likely to change in 2016,
although it is possible the demand for the
cushion cut might grow, but by no more
than 10 percent. +
Russian M inistry of Finance reported an

increase in production of silver but a
decrease in production of gold in 20 15 in
Russia. From January to October 20 15, the
country produced 918.89 tons of silver,
which topped the output resu lts for the
same period in 2014 by 14.6 percent.
Russia's overall production of gold
in the first ten months of 2015 has
decreased by .88 percent year..onyear
and totaled 246.1 tons. Within it, production
of mined gold went down by 1.1 percent
and amounted t o 196.87 tons, while the
recycled 90ld production increased by
1.8 percent, reac hing 32.93 tons.
Russia also reduced production of bar
90ld by 3.8 percent yearonyear in the
first 11 months of 20 15, according to
the Russian Assay Chamber report.
Movement Slow and Cautious

BY MARC GOLDSTEIN
A~
could he expected, the diamond

industry is extremely vulnerable to
the global economic environment. And
had news is coming from most of the
countries that have been supporting
the global diamond trade over the past
couple ofyears:mainly, the BRIC countries
- Brazil, R ussia, India and China. The
good news, however, if there is any, is that
the issue is global and concerns all sectors
of economic activity.
"During the last quarter of2015, we
nmiced a totally unexpected pick up in
Italy. In particular, there's a resurgence of
activity among the northern Italian jewelry
manufacturer.;, which is a good sign," ~id
Julien D rybooms of Drybooms & Zonen.
"On the other hand, the news from China,
\vhcre we were last week, confirmed
that the market is quieter, most probably

because a lot of money was lost in the stock
exchange. Con~equently, the Hong Kong
show isn't expected to do anything else
but assess the weakening trend. As far
as tbe European diamond business is
concerned, Vicenzaoro and the Antwerp
Diamond Trade Fair (ADT F) are slowly
taking over from Basel, which has now
defmitely become a watch industry trade
show. Even if news from Vicenzaoro seems
to be okay, we arc still waiting to see wbat
the neJ.."t ADTF will be in order to have a
more accurate view of the old continent's
health," Dryboom.~ concluded.
MOVING FORWARD
Nirav Shah of Beauty Gems BVBA
elaborated : "We definitely noticed that
retailers bave started restocking. However,
they're doing it very carefully, wbich
translares into approximately 30 percent
less orders placed compared to the same
period in 2015. It's the sevemh time we're
participating in the ADTF. For us, if this
show keeps being well managed, it's abom
to become a major barometer of the health
of the European market fo r the year co
come. Hong Kong isn't expected to be
great, but it seems that we're going to be
able to rely on the U.S. co give us some
stability. Indeed, American orders keep
coming in at a steady pace."
According to D oshi Mitesh Ramesh of
Prime Inter national BVBA,"T he market

is going to be slow, but there is definitely
business to do for those who do it
strategically: buy at sensible prices, manage
efficiently and sell at the right prices.
By the way, it's interesting CO emphasize
that while only recently 40 percent of the
diamantaires were working according CO
a viable business model and the otber
60 percent were running on overhang,
today everybody is cautious and is sharply
monitoring inventory levels.The demand
for inventory replenislunent is definitely
there, and an apparently contradictory
feature can be seen: Even though
orders arc down between 30 percent to
40 percent compared to 2015, the buyers
who come are willing co pay the price to
get the goods. However, let's not lose sight
that consumer demand isn 't that great
and consequently, retailers aren't going
to jump to buy."
ROUGH ISSUES
Howeve r, regarding the rougb, a
worrisome pattern appears to be coming
to light. A~ everybody knows, for the past
few months, the major suppliers have
been reducing the quantity of rough that
is being forced into the pipeline. Prices
went down as well, which is what the
market absolmely needed to restore profit.
However, a diamantaire who wished co
remain anonymous said that sightholders
are now pushing up rhe premiums on the
secondary market. This, in turn, could
likely change the endeavor, initiated
by the producers, to help the market
into a simple transfer of profit from the
Diamond Trading Company (DTC) to
its sightholders.
COLORED DIAMOND MARKET

On the other end of the pipeline IS
the natural colored diamond market,
which appears to have remained virmally
untouched by the crisis, according to
Na t acha Langerman of Langerman
Diamonds. "The most expensive stones,
those that sell for record prices in
auction houses, are pulling with them all
diamonds in the same color range. Today,
red diamond~ ofone carat wouldn't sell for
less than $2.5 million. Blue diamonds have

become the greatest record breakers and
are now unaffordable. Argyle Pink also
count among the skyrocketing p r ices,"
she elaborated.
David Shara of Optimum Diamonds
confirmed, " I n a world where oil
prices are going down and where stock
exchanges are more volatile than ever,
the rarest fancy color diamond prices
keep increasing at a pace of sometimes
20 percent CO 30 percent a yearVivid blue,
vivid green or fancy red never went down
over the past 30 years .T he secret behind
tillS steady increase, which is comparable
CO that of paintings by the Great Masters,
is that there are only a couple of stones
in each color category around the world
for 50 buyers with standing orders. It's
absolutely a sellers' market."
Yellow diamonds in general, however,
are re ported to be less valuable, since
they are essentially less rare than others.
Globally, th<.-J' follow the trend of the white
diamonds, which is also why they have
been losing value recently. +
Polished:
Everything is selling, especially for cash.
More than ever, cash means a discount.
Cash and liquidity issues are being seen
across th e wo r ld.
In general, small goods below
l O-pointers are a little less easy to move.
A shortage of over 10 ca rats is being fe lt
across th e pipeline.
Russia is exp ected to wea ken as a market
for colored diamon ds, mainly due to the
depreciation of the r uble aga inst the
U.S. dollar. Saudi Arabia will also suffer
shou ld t he oil market re main depressed .
ITIS HAPPENING
ON RAPNET.
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Find out more at: info.rapnet.comjrapnet-membership-solutions

Ra pN et is the online global market for diamonds. With more than 1 million diamonds listed daily. RapNet
is the go-to destination for anyone who's serious about their diamond business. Our powerful solutions are
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A Rapaport Group Company
RAPNET.
THE DI A M O ND MARKET
THE DIAMOND MARKET
Guide to the RapNet Asking Price List

What is RapNet?
RapNet is the Rapaport Diamond Trading Network available exclusively to members of the diamond and
jewelry trade. With listings of over 1 million diamonds valued at more than $6.75 billion and over 14,000
paid members in 84 countries, RapNet is the largest and most important diamond trading network in the
world. Buyers and sellers deal directly w ith each other without any commission or trading fees. RapNet
membership includes an online subscription to the Rapaport Price list and starts at $660 per year.
What is the RapNet Asking Price List?
The RapNet Asking Price list provides a snapshot of best and average asking prices for specific
diamonds offered for sale on the RapNet Trading Network. The prices are presented in US $ per carat and
percentages below or above the standard Rapaport Price list. The RapNet Price list is based on GIA
graded Excellent and Very Good Cut diamonds. Additional online price and trad ing information is
available 2417, real-time , for a wide range of diamond qualities.
How is the RapNet Asking Price List Different than the Rapaport Price List?
The Rapaport Price List, published for over 30 years, presents Martin Rapaport's opinion of High Cash
Asking Prices that are used by the global diamond trade as a starting point for negotiations and a basis
for estimating the value for a broad range of diamond sizes and qualities. The RapNet Asking Price list
presents actual asking prices by sellers for specific diamonds. Rap Net Asking Prices are not based on
opinion and may fluctuate on a minute by m inute basis. Rap Net Prices are available to members online in
real time via Rapaport TradeScreens~ A primary benefit of the Rap Net Asking Price list is that it discloses
detailed information about discounts and premiums to the standard Rapaport Price list.
How to Read the RapNet Asking Price List?
RapNet Best/Average Asking Prices
1_00-1_49
14.575/20.839
-47/ -24%
US $14,575 is the Best Rap Net asking price available

for a Round, D, IF 1.00 - 1.49ct diamond.
-47 % is the Best RapNet asking price available
expressed in terms of d iscount to the Rapaport Price list.
US $20,839 is the RapNet average asking price for the diamond.
-24 % is the RapNet average price expressed in terms of discount
to the Rapaport Price List.
For more information or to join RapNet go to www.rapnet.com. email info@rapnet.com

or call +1 -702-893-9400 in the USA.
ECONOMICbulletin
u.s. Imports Slide
us. polish ed diamond imports fell1S percent year on year to $1 .62 billion in November 2015,
representing the steepest drop recorded in the year. Polished diam ond imports by weight declined
14 percent to 735,561 carat~. Polished diamond exports dipped 16 percent by value to
.......$1 .37 billion and 15 percent by weight to 1 million carats .
Rough diamond imports surged 39 percent by value to $32 million and
126 percent by weight to 29,042 carats.
From January to November 2015, polished diamond imports and exports
slipped 3.2 percent to $21.47 billion and 12.7 percent to $17.06 billion
respectively. For the same period, rough diamond imports plullUneted
47.2 percent to $277 million.
0:?JY
!
India's Exports Down
India's polished diamond export'> tumbled 17 percent by value to

$1.2 billion and 5 percent by weight to 1.9 million carats. Polished diamond
imports plunged 45.9 percent by value to $239 million, but grew 19.4 percent
by weight to 1.2 million carat~ .
R ough diamond imports increased 2.4 percent by value to $1.47 billion and
6.9 percent by weight to 15 million carats. Rough exports lowered 7.3 percent by value
to $99.6 million, but j umped 24.4 percent by weight to 2.8 million carats.
From January to December 2015, polished diamond exports and imports dipped 11 percent and
53 percent to $20.62 billion and $3.37 billion respectively.
From January to December 2015 , rough diamond exports and imports declined 25 percent and 22 percent
to $1.13 billion and $13.54 billion respectively.
Israel's Exports Drop

Israel's polished diamond exports slum ped 20.3 percent to $5 billion for the full year of2015 and
18.3 percent to $1.07 billion for the fourth quarter. Polished di amond imports for the full year of
2015 receded 23 percent to $3.48 billion .
R ough diamond imports sank 30 .9 percent to $2.78 billi on for the full year of2015 and 33 .7 percent to
$657 million for th e fourth quarter. Rough diamond exports dwindled 28 percent to .$2.2 billion for the
full year of2015.
Polished exports to the U.S ., Israel's biggest diamond trading partner, shrank 16 percen t to $2 billion and
28 percent to $1. 35 billion to H ong Kon g, Israel's seco nd-largest diamond trad ing partner.
Rough Imports
$800 0
I
I
Q $600 0
~
~
"0
0
$400 0
$200 0
Polished Imports
I
I
f-
f-
f--~
::
~-4
,
"0
"000
$3000
~
~
"0
$2000
,~
11000
10
10
20
30
'0
Dec Jan
20 15
2015
20 15
2015
20 142015
____ I.roel ____ Ind ia
Feb Ma, Apr May June July Aug Sep Oct Nav
___ U.S.
___ Belgium
.,.-
Rio Tinto's Production Surges

Rio Tinto reported a 50 percent jump in diamond production year on year to 4.3 million carat'> fo r its fourth
quarter that ended December 31, 2015. For the ul11 year 0[2015, the mining company recorded a 25 percent
increase to 17.4 million carats. Rio T into expects to produce 21 million carats of diamonds in 2016.
T he Argyle mine in Kimberley, Australia saw production swell 86 percent year on year to 3.4 million carats
in the fourth quarter.
The Diavik mine in Canada saw production contract 3 percent year on year to 899,000 carats in the fourth quarter.
Rockwell's Sales Plunge

R ockwell Diamonds reported sales plummeting 66 percent year on year to $5.3 million
in the third quarter that ended November 30, 2015. Carats sold sank 71 percent to
4 million carats, for an average price of $1,328 per carat.
R ockwell's Saxendrift asset saw sales decline 70 percent year on year to
ho'L---'r---'r-\ $2.1 million as a result oflower production as well as average stone size .
R ockwell's RHC asset sold $2.9 million during the third quarter. Production at
RHC fell short of targets due to a plant closure resulting from the investigation
into a fatal accident at the complex.
Lucapa Hits Record Sales

Lucapa Diamond Company's diamond sales from its Lulo diamond project
in Angola improved 33 percent to $5.7 million, at the time of reporting, in the
~:Z:~:~~~:~~: fourth quarter that ended December 31,2015 . The company reported its three
Idiamond sales completed in the quarter achieved th e highest quarterly sales results
achieved to date, with an average price of$l ,512 per carat .
During the quarter, 28 diamonds ofl 0.8 carat~ or more were recovered. The two largest gems
weighed 74.5 cara t~ and 66.3 carats .
Average stone size recovered increased 12.5 percent quarter on quarter to 1.35 carats.
Petra Diamond Sales Slump

Petra Diamonds LiIluted reported that its revenue for the
first half offiscal year 2016 that ended December 31, 2015
dipped 28 percent to $154 million.By volume, the mining
company sold 7 percent less at 1.3 million carats.
Production was up 2 percent to 1.6 million carats, Petra
remains on track to reach full production of between
3.3 million carats and 3.4 million carats.
Petra expects sales volume to hit between 1.9 million
carats to 2 million carats du e to tinting of tenders.
Polished Exports
.~
OJ>
c:
$3200
$1600
$2400
$800
'0
f-i-+W+-Hf-i-+j-l+-Hf-i-+4+-Hf-I--4
~~~~~i~~~~~~~~~~~~
Jan
Feb Mar Apr May Jun
""
____ U.S.
jul
Precious Metals
PLATINUM
DATE
GOLD
LONDON PM
PM
SILVER
1/4116
1082.25
893.00
14.0000
115/16
1077.00
1/6/16
1091.40
873.00
14.0050
1n/ 16
1106.35
865.00
14.0300
118/16
1101.85
874.00
14.0400
1111 /16
1100.75
853.00
13.9700
1112/16
1085.40
843.00
13.8800
1/13/ 16
1088.15
1114/16
1088.40
835.00
14.0200
1115/16
1093 .75
839.00
13.8000
1118116
1089.20
816.00
13.8800
1119/16
1086.25
834.00
14.0300
1/20/16
1101.75
820.00
14.0500
1/2 1/ 16
1096.50
814.00
14.0100
1/22/ 16
1096.25
833.00
14.1700
1/25/ 16
1106.60
862.00
14.2200
1126116
1113.60
867.00
14.3300
14.0100
13.8300
Aug Sep Oct Nov Dec
____ Be lgium ___ India
CALENDAR
of events
2-7
3
3-7
3-7
AGTA GEMFAIR, TUCSON, ARIZONA, <39ta.org

ACCREDITED GEMOLOGISTS ASSOCIATION (AGA). TUCSON CONFERENCE, ARIZONA, accreditedgem%gists.org
JCK TUCSON, ARIZONA, tucson.jekonfine.com
MADRID JOYA. SPAIN, ifema.es
3-7
5-8
7-11
JUNWEX ST. PETERSBURG. RUSSIA, restec-junwex.com

INDIA INTERNATIONAL JEWELLERY SIGNATURE SHOW, MUM BAl. iijs-signature.org
JEWELLERY & WATCH SHOW AT SPRING FAIR INTERNATIONAL, BIRMINGHAM. UK, thejewelleryshow.com
8-11
MINING INDABA. CAPE TOWN. SOUTH AFRICA, miningindaba.com

PALM BEACH JEWELRY, ART & ANTIQUE SHOW, FLORIDA, palmbeachshow.com
10-16
12-15
14-18
17-20
19-23
24-28
2S-28
27-28
27-29
INHORGENTA MUNICH, GERMANY, inhorgenta.com

INTERNATIONAL DIAMOND WEEK, RAMAl GAN. ISRAEL. en.isde.co.il
FENINJER BRAZILIAN GEMS &: JEWELLERY SHOW, SAO PAULO, BRAZIL. feninjer.com.br
NAPLES ART, ANTIQUE &: JEWELRY SHOW, FLORIDA. naplesshow.com
BANGKOK GEMS &: JEWELRY FAIR, THAILAND, bangkokgemsfair.com
SIBJEWELLERY, NOVOSIBIRSK, RUSSIA, sibfair.ru
JAA AUSTRALIAN JEWELLERY FAIR, MELBOURNE, jewelleryfair.com.aulmelboume
SJTA ATLANTA JEWELRY SHOW, GEORGIA, atlantajewelryshow.com
MARCH 2016
1-S
3-7
S-8
7-12
10-12
10-13
10-13
13-15
13-15
13-15
16-19
17-24
18-20
19-22
HONG KONG INTERNATIONAL DIAMOND, GEM &: PEARL SHOW, hktdc.com

HONG KONG INTERNATIONAL JEWELLERY SHOW, hkjewellery.com
BEST ADORNMENTS OF RUSSIA. MOSCOW, restec-junwex.com
AJWEl(. AL-AIN INTERNATIONAL JEWELLERY &: WATCHES EXHIBITION, UAE, baderuae.com
ASA PERSONAL PROPERTY ANNUAL CONNOISSEURSHIP CONFERENCE, VANCOUVER, CANADA. appraisers.org
JEWELRY INDUSTRY SUMMIT, NEW YORK, jewe/ryindustrysummit.com
ISTANBUL JEWELRY SHOW, TURKEY, istanbuljewelryshow.com
JA NEW YORK SPRING SHOW, ja-newyork.com
LUEUR SPRING, NEW YORK, lueumy.com
MJSA EXPO NEW YORK, mjsa.org
POLAND SHOW - AMBERIF, GDANSK, amberif. amberexpo.p/
BASELWORLD 2016, SWITZERLAND, base/world.com
GEM &: JEWELLERY INDIA INTERNATIONAL EXHlamON (GJIlE), OtENNAL chennai.jewelleryfair. in
EUROPE JEWELLERY &: GEM FAIR, MESSE FREIBURG, GERMANY, jgf-eufope.com
Hong Kong
APRIL 2016
5
5-9
7-10
8-11
9-11
13-16
14-17
17-19
19
20
20-22
23-36
SOTHEBY'S MAGNIFICENT JEWELS AND JADEITE, HONG KONG, sothebys.com

MIDEAST WATCH & JEWELLERY SHOW, SHARJAH, UAE. mideastjewellery.com
JUNWEX EKATERINBURG. RUSSIA. restC-junwx.com
CHINA-BEIJING INTERNATIONAL JEWELRY SHOW, newayfairs.com
JEWELERS INTERNATIONAL SHOWCASE (JIS), MIAMI BEACH, FLORIDA, jisshow.com
AGS INTERNATIONAL CONCLAVE, ARLINGTON, VIRGINIA, americangemsocietyorg/conciave2016
VICENZAORO DUBAI, UAE. vicenzaorodubai.com
SMART JEWELRY SHOW, CHICAGO, ILLINOIS, smartjewelryshow.com
SOTHEBY'S MAGNIFICENT JEWELS, NEW YORK, sothebys.com
CHRISTIE'S MAGNIFICENT JEWELS, NEW YORK. christies. com
CHINA INTERNATIONAL GOLD, JEWELLERY & GEM FAIR, SHENZHEN, jeweflerynetasia.com
JEWELLERY ARABIA, KUWAIT, jewe/feryarabia.com.kw
MAY 2016
3-7
7-9
1-11
11-13
11
18
19-22
2S-29
30-612
31
31-6/6
INTERNATIONAL JEWELLERY & WATCH SHOW, ABU DHABI, UAE, jws.ae

MGJ CONFERENCE, VALENCIA, SPAIN, gemconference.com
OROAREZZO, AREZZO, ITALY, oroarezzo.it
INTERNATIONAL JEWELLERY KOBE, JAPAN, ijk-fair.jp
SOTHEBY' S MAGNIFICENT JEWELS, GENEVA, sothebys.com
CHRISTIE' S MAGNIFICENT JEWELS, GENEVA, christies. com
VIETNAM INTERNATIONAL JEWELRY. WATCH SHOW, HO CHI MINH CITY, vietnamjewelryshow.com
JUNWEX NEW RUSSIAN STYLE, MOSCOW, restec-junwex.com
G.L.D.A . INTERNATIONAL GEM. JEWELRY SHOW, LAS VEGAS, glda.com
CHRISTIE'S MAGNIFICENT JEWELS, HONG KONG, christies. com
JCK LUXURY, LAS VEGAS. luxury.jckonline.com
The De Beers Group of Companies named Nimesh Patel as

chief financial officer. Patel succeeds Gareth Mostyn, who
R ayazTakat,T akat Gems USA, Inc.

Nilesh Sheth, N ice D iam onds .
is now executive head of strategy and corporate affairs.

Patel was previously group head of corporate finance at
Anglo American, which owns a majority stake in D e Beers.
Yoram Dvash, owner of Y. Dvash Diamonds, has been

announced as president of the Israel Diamond Exchange (IDE).
Dominion Diamond Corporation has appointed Jim Gowans

and JosefVejvoda to the board of directors. Gowans,currently
president, CEO an d director of Arizona M ining Inc., will

be the nonexecu tive chairman o f th e board. Vejvoda,
president ofJove Capital Inc. and portfolio manager at
K2 &A~sociates Investment Management Inc. "vas identified
and suggested to Dominion by a group ofshareholders.
Tammy Kidder has been promoted to vice president of tools
and supplies at Stuller, Inc., taking over the role previously
filled by Darrell Warren. Kidder was formerly vice president
H e w ill be replacing Shmu el Schnitzer as president of

the bourse. A p pointments to the bourse's board and
conmlittee are:
Yehezkel B lum - executive vice president
Shalo m Papir - senior depu ty president
Yaacov Ahoon Sh ely - vice president and treasurer
EI Shiri an d Yoram H arel-Hai moff - vice presidents
in rotation
Meir Dalruni and Shai Schnitzer - honorary secretaries
Cha im Vo l ner , Em ma J an over, P h i li ppe F rey,
H erzel Siton, Shlomo Eden , Hani Israel, Ban Sam uel
- board memb ers
of findings, metals and recycled mater ials.

The United Arab Emirates' (UAE) Ministry of Economy
selected Ahmed Bin Sulayem, as chairman of the Dubai
Multi Commodities Centre (DMCC), as the country's chair of
the Kimberley Process (KP) for 2016. T he UAE officially
assum ed its p ositio n as chair o f th e KP in 2016 after

having been elected as vice chair in Septem ber 2015 .
The Israel Diamond Exchange (IDE) has made Eli Avidar
managing director, taking over from Moti Besser.
Avidar wi ll rema in as manag in g director of the

Israel Diamond Institute Group of Companies (ID I)
alongside his new position , as reported by R apaport News.
The Indian Diamond & Colorstone Association (lDCA) elected
Ashok Sancheti of Pioneer Gems as its new president for the
2016 executive committee. l~sh Barmecha of Niru NY
Ltd. was appointed vice president,Jay M ehta ofAmikam as

secretary, Prateek Nigam of O riental Gemco (NY) asjoint
secretary and Nirav Doshi ofJewelex NY Ltd. as treasurer.
IDCA's new board of directors are:
SJwilesh Jhalafli, Prompt Gems Im ptrs, Inc.
Afok Mehta, IDo.
Atit Mehta,A tit D iam ond Corp.
Rajeev Pandya,Ashi LLC.
Neeraj Rawat, R awat Gems.
Neil Savafia, Neil Savalia, Inc.
Mehul Shah, Shivani Gems, In c.
The Natural Color Diamond Association (NCDIA) has

picked Barbara Wheat as executive vice president. She was
previously exec u tive d irector of th e In tern atio n al

Colored GemstoneAssociation (lCA) and was an adviser
on international relations for th e T hai Gem and Jewelry
TradersAssociation (T GJTA).
Polished diamond manufacturer leo Schachter Diamonds
has hired Joseph Green as its new executive vice president of
sales. Green will be responsible for market planning and
strategic business developm en t. Green was previou sly

senior vice president of Freder ick Goldman .
Samantha laJuett joins RDI Diamonds, a diamond
wholesaler based in Rochester, New York, asa simple solutions
specialist. She will be working "vith RD l's stock programs
to ensure clients get th e stock they n eed. LaJuett is a

Gemological Institu te o f Amer ica (G IA) D iamond
Graduate and she is the dau ghter of Sara LaJuett, RD l's
sales manager, an d niece of M ichael Indelicato, RD l's
CEO, both of w hom are cofounders ofRDl.
The Women's Jewelry Association (WJA) nominated
Brandee Dallow, director of Rio Tinto Diamonds North
America representative office, as the new president of the
WJA International board of directors. Jenny luker, president
of the Platinum Guild International (PGI), takes on the
president-elect role. Other appointments are:
Kristie Nicolosi, president and chief executive officer of
at Jewelers Mutual Insurance Co., rece ived t he

Industry Service Award. Sexton was honored for his
work in jewelry loss prevention.
Liscinsky,seniorspecial agent with the US. Department
ofJustice's Bureau ofAlcohol,Tobacco, Firearms and
Explosives (AT F), received the James B.WhiteAward.
Liscinsky was honored for his investigative work that
resulted in the arrest and conviction of eight gang
members who robbed traveling jewelry salespeople
111 SlX states.
The Kingswood Company, as treasurer.

Michelle Permlteall,director ofmarketing communications
at Baume & Mercier, as vice president of administration.
D es iree H anson, directo r of luxu ry re tai l client
development atThe NPD Group, as vice president of
chapters affairs.
Danielle Illgwer Colten,VP of IT development and
marketing at leo Ingwer Inc.,a~ eastern regional director;
Sara Commers, owner of Conuners Custom J ewelers,
as central regional director; Clare Ullman, owner of
Clare Ullman Design, as western regional director.
The Jewelry Industry Summit (JIS), a forum on sustainability
Craig DanJortlt,director of global business development and responsible sourcing, has opened registration forthe event.
at the Gemo logical Institu te of America (G IA) as JIS will be held at the Fa,hion Institute oITechnology (FIT)
international affairs co-chair; Monica Elias, founder in NewYork City from March 11 to 13,2016.The swnm.it
of Elias World Media (EWM), as sponsorship chair; will feature interactive meetings with small and large
Rebecca Mo skal, partn er at Conunu nique, as events discussion groups assisted by professional facilitators rather
co-chair; Eri" O'Donne1l,jewelry group marketing than a filll schedule ofspeakers. Registrants ofJIS will also
director at Emerald Expo si tion s, Marett Rosen, gain free entry to the JA New York spring show,
vice pres id e nt of bridal and jewelry at Stuller, MJ SAExpo New York and LUEUR, which conun ence
Benjam in Smitltee, CEO of the Smithee Group, as March 13 at the Jacob K.Javits Center in New York City.
education chairs, Lauren Thompson, associate director
of communi cations at Jewelers of America OA) as The American Society of Appraisers (ASA) announced the
public relations coordinator;
upcoming 2016 ASA Personal Property Annual Connoisseurship
Deborah Yonick , j ewelry journalist, as director ofW]A Conference will be held March 10 to 12, 2016 in Vancouver,
Unplugged, a group for"W]A memb ers not near any Canada. The theme of the conference is "The Sacred and
chapters.
the Profane;'where participants will discuss how appraisers
deal \vith sacred objects and the rules. Highlights include:
The Jewelers' Security Aliiance{JSA) made Stewart E. B. Wicht
An introductory lecture on the appraising of sacred
its new chairperson for a three year term . W icht is the
objects by Richard-Raymond Alasko.
CEO of Role x Watch USA, and has been on the JSA A panel on contemporary art and collector car markets
by Don Thompson,David Kinney and Donald Osborne.
board for five years . H e replaces outgoing chairperson
Adam Heyman. Kevin Valentine was also newly elected Sessions on appraising sacred books by Lee Biondi :lnd
to the JSA board. He is the senior vice president ofaudit,
John Henley; Chinese fine and decorative art market by
loss prevention and risk management at SignetJewelers.
David Borodin; appraisal ethics by Mary Jane Andrews
and more.
Museum and gallery tours, including the Vancouver
Eric Friedland has been chosen as president of
Art Gallery and the Museum ofAnthropology.
Peregrine Exploration while retaining his title as cha irman.
Fri edland is replacing Brooke Clements, who stepped
down as president and CEO ofPeregrine. Clements will The 47th St. Business Improvement District (BID), also
continue to act as a consultant to the company.
known as the Diamond District, is hosting a free educational
In other JSA news, the organization honored David Sexton
and Jamesliscinsky at its annual luncheon on January 9, 2016
in New York City.
Sexton, vice president for loss prevention consulting
seminar for the diamond and fine jewelry industry in New

York City on February 23, 2016. The seminar will feature
presentations by the US. Department of Commerce;

transportation and logistics insurance provider Roanoke
and events organizer R eed Exhibitions . ..
Rapaport February20/6 103
RETAIL PROFILE
Originality and creativity are on display at French Designer Jeweler

in Scottsdale, Arizona.
By JOYCE
have built my business around sellingj ewelry
from original artists who are 31m extremely fine

......~, craftsmen," explains French Thompson , owner of
French Designer Jeweler in Scottsdale,Arizona. Intent on
finding jewelry that "makes heads turn," h e selects o nly
those designers w hose diamond and gemstone jewelry
reflects that unique combination of artistry and skill.
Thompson's "ah-ha" moment came after seeing an
exhibit at the Denver Museum ofArt that featured the
work ofseveral Colorado metalsmiths . A college student
at the time,Thompson recall" the"life-changing"impact
of the j ewelry." I had never seen such creativity before."
O ne of the exhibitors was a professor at Colorado State
University. Thompson later enrolled there and earned
a Bachelor of Fine Arts (BFA) in metalsmithing. After
graduation, he moved to Scottsdale to work at a bronze
art foundry. H e considered opening his own foundry,
but decided to accept a jewelry apprenticeship instead.
H e spent the next 13 years working for aj eweler whose
retirement prompted another career decision.Thompson
bought all his fixtures and in 1996 opened his own store.
Located in downtown Scottsdale, the store i'i surrounded
by art galleries. With its enviable weather, the city is
a magnet for tourists in th e high season, which runs
from D ecember through May. Touri sts account for
60 percent of Thompson's business, but he has developed
a loyal following who return each year. H e offers a simple
explanation:"My j ewelry stands out."
KAUF
UNIQUE FLAVOR
"We're not va nilla," says Th om p so n , u sin g an

ice cream analogy, but noting t h at vani ll a is n ot
intended as a derogatory designation since it outsells
all the other flavors combined. "All over America, you
can go from one sto re to another and basically find the
sam e jewelry.A lot of people buy it. Bu t I like to add
other ingredients that enhance th e flavor." He seeks
out designers w hose work is not derivative. " Th ey
are studi o jewelers - go ld smiths and m etalsmiths
themselves - w ho for the most part design and create
their own pieces. They are the trendsetters who others
in th e industry w ill emulate." And he refers to them
as "artists" for their o ne-of-a-kind work produced in
limited quantity.
Thompson acknowledges that "artists" who excel
at both creativity and design skill are a small group.
Exclusivity is another cr iterion. Most of the artists he
sells have no other or very limi ted exposure in th e
entire state . Alex Sepkus is his best seller, followed by
Atelier Z obel, Barbara H einrich and Carolyn Tyler, w ho
works in 22-karat gold. Rings, pendants and earrings are
his top-selling categori es.
"We tend to like a lot m o re co lor in Arizona,"
says Th ompson , citing the popularity of yellow go ld
settings and co lored gemstones, including peridot,
aquamarines, colored sapphires, rubellites, tourmalines
and blu e zircons .
STARLIGHT SPARKLE
Thompson attribut es his strong diamond sa les
[0 th e hi g her- quality diamonds in th e handmad e,
labor-intensive pieces."Th ere are no SI diamonds in the
score,"Thompso n po ints outVS and G to H diamonds
represent th e " minimum" qu ality he carries. However,
most di amonds are VVS in the E to F color ran ge. For
his own cu stom d esigns, Thompson only uses VVS [ 0
fl awless cl ari ty diamonds.
Thompson likes to recall how he was able to demonstrate

th e quality of his diamonds t,_o~..
custom ers in a dram ati c .oil
way. H e was showing a
customer a diamond
snowflake pendant, but
she was no t convin ced
about the diamonds' quality.

It was already evening, so he
[Old h er to take the pendant
outside to look at the diamonds

in the dark. She returned to the
store "amazed" at tlleir sparkle.
As she was purchasing the item,
Thompson explained, " Fine,

well-cut diamonds don 't need
much light to look beautiful."
,,
,
GALLERY OF JEWELS
Thompson ha s created an
artist's gallery in his 700-square-foot

store with custom mahogany cases and
custom-design ed mirrors bordered in that same wood.
To complete thi s " world of art," two-dim ensional
artwork graces the walls.
"I like to create vignettes for each artist;' saysThompson,
who favors merchandising by designer, rather than category.
"The jewelry is so distinctive, even within each designer,
that customers have a range from which to choose:' He
frequ ently changes displays to offer his customers more
options to add another designer to their collection.
Eve n trunk shows reinforce the artisti c th eme Thompson calls them "artist appearances."They are held
five tim es a year during high season and always during th e
Thursday ArtWalk, a weekly event held every Thursday
and sponsored by the S c ott.~dale Gallery Association .
Thompson will also feature his gold and colored gemston e
jewelry in th e five spe cial "Gold Palette ArtWalks,"
organized by the same local galleries this season.
Thompso n's retail philosophy is sunul1ed up in th e
phrase, "Open th e door to originality"'" that he uses in
his advertising and on his website, frenchonmain. com.
With an artist's eye for detail, he invites customers to
ex perience a world of creativity and craftsmanship. ..
Barbara Heinrich
By PHYUIS ScHILLER
-'1"'- he 4Cs are not the only things that make a piece
of diamond j ewelry a sales winner. In an ongoing

series, Rapaport Magazine explores the "3Ws"what's selling, what's not and why - by going
straight to th e people who really know - jewelry
retailers. Each month, we ask a sampling of retailers to
comment on the important issues that are facing the
industry today. H ere is what they had to say when asked:
"Which gemstones are most popular? D o yo" tleed to
edu cate your custom ers m ore about colored gemsto/l es than
with diamonds?JJ
JOHN CARTER, PRESIDENT
JACK LEWIS JEWELERS
BLOOMINGTON, ILLINOIS
"Color gemstone sales are steady but nothing that

wo uld rival diamond sales.While we have sold the big
three gemstones - sapphire, mby and emerald - and
som e significant pieces, we also do some more exotic
stuff. Spinel is probably one of our best-selling colored
stones,just because it's unusual and the color is typically
more natural and it's durable. In fashion jewelry, colored
gemstones are increasingly a bigger part of what we sell,
especially with the silver manufacturers.
" It i~ frr more ofan educational process in selling colored

stones. Customers typically come in armed with some
knowledge of at least the 4Cs of diamonds. Explaining
abou t treannent~ has to be part of the repertoire so they
understand the reality behind the colored stones they are
buying and that most gems are treated.With colored stones,
we're usually creating the passion for that particular gem,
showing them how special it is and that it typically came
out of the ground the color they're seeing, which is why
we do well with some of the more exotic stones."
KAREN KUHLMAN, MANAGER
DON'S JEWELRY & DESIGN
WASHINGTON, IOWA
"What sells primarily are the big three, sales are split
pretty evenly among them. Next after sapphire, ruby and
emerald is blue topaz or morganite.With the big three
gemstones, it's more fashion styles, but beyond that, for
blue topaz, amethyst, peridot and so forth, it's more basic
styles that sell.
" I don't think much education is needed to sell colored
stones, except concerning wearability and durability.We
do explain treatm ents to customers but it doesn't affect
whether they're going to purchase the piece or not."
Rona Fisher
DAN WILSON, MANAGER

STRAUSS JEWELERS
MOUNT VERNON, WASHINGTON
"We sold across the board this past Chrisunas, diamond
semimolll1ts, engagement rings and colored stones both
in silver and in white gold and yellow gold. I would say, if
you combine the silver and the gold, colored gemstones
were a good fifth of our business. As far as volume goes,
we probably sold more of citrine, blue topaz, pearl, which
we put in that category, garnet and amethyst than the big
three stones.We do explain that most colored stones are
treated in one way oranotber.We go into it as deeply as the
customer wants to, but it's usually not a big issue. Colored
gemstones are less ofa conunodity than a diamond i~ ...vith
certificates and the internet.We sell it more based on color
and romance; it's definitely more fim."
JEFF FOX, MANAGING PARTNER
TORIN BALES FINE JEWELRY
VICTORIA, TEXAS
" In terms of color, based on the past six months, for us,
sapphire is still probably number one.This year, tanzanite
was second in line. A lot of people's reference to color
is their birthstone or because it's a favorite color.With a
little more education, you can develop their appreciation
for other things about gemstones. I think customers have
a surface level understanding about treatments. We try
to educate our custom ers on everything, whether it's
diamonds or color."
BRENDA NEWMAN, OWNER
THE JEWELRY SOURCE
EL SEGUNDO, CALIFORNIA
"We love colored sto nes; we started with co lored
stones. But in order to grow our business, we had to
get into the bridal business. Diamo nds are always the
thing that brings people in and the thing that people
want. And in theory, if you can secure th em as cli ents ,
then they continue to grow with you . Color

for us is a lot more fun , a lot more creative. This
past D ecember, we sold more higher-end emerald, ruby
and sapphire pieces than I have probably sold in the past
five years. By the same token, I had a couple of larger
diamond sales from existing clients . There's education
involved no matter what you sell and talking about
treatments is a natural part of the discussion .
"My bi ggest co ll ectors of colored gemston es are
working women between the ages of 30 and 60. They
intercha nge their wardrobe of jewelry along wi th
their clothes and shoes and handbags . They've got the
disposable income to buy a really special pink sapphire
ring and then som e m atching diamond earrings or a
really interesting African tourmaline ring because it's
beautiful. But without disposable income, clients will
limit themselves to just diamond pieces. They wo n't
always be able to reach for that green African tourmaline
because it doesn't go with everything. It takes a really
specific woman to wear interesting colored stones."
BRUCE WATTERS, CHIEF EXECUTIVE OFFICER
BRUCE WATTERS JEWELERS INC
ST. PETERSBURG, FLORIDA
" I really love the colored gem department in my store.
And I have a collection with nothing below first class;
I have no synth etics . I'm very prou d of o ur colored
stones and we do quite well with them. Sapphire would
be the predominant stone because it goes better with
everything else and of the big three stones, it's the least
expensive, which might have some bearing o n it. Of
course, there's a lot ofexplanation that this is not a conflict
stone and this is not a treated stone except perhaps with
heating - because almost all colored stones are heated to
enhance the color, that's ahnost a given. But rather than
going through the 4Cs, like you do with a diamond, it's
fun to get into the history, the folklore, the superstitions
and all of that stuff about colored gemstones." .
Rapaport February20/6
109
Consumer Confidence Jumps
2015, with the other 36 to be closed in early spring 2016.

The 36 stores account for approximately $375 million in
alU1ual sales.
- About 3,000 associates will be affected by the closings,
or approximately three to four positions per remaining
Macy's store.
- The closings are aimed at achieving approximately
$400 million in annual cos t savings b egi nning in
2016. Ma cy's will invest in growth strategies in its
omnichannel capabiliti es .
- Macy's expects comparable sales on an owned-plus-licensed
to continue falling in the fourth quarter by 4.7 percent,
instead ofits projected decline of between 2 p ercent and
3 percent. This would translate to a full -year 2015 sales
slump of2.7 percent.
The Conference Board Consumer Confidence Index

improved again to 98.1 in January 2016, up from 96.3 in
D ecember 201S.The Present Situation Index was unchanged
at 116.4 and the Expectations lndexincreased to 85.9 fium 83.0.
Consumers saying business conditions were "good"
remained un changed at 27.2 percent, while those saying
business conditions were "bad" declined to 18.5 percent
from 18.9 percent.
- Those claiming jobs were " pl entiful" and "hard to get"
both decreased to 22 .8 percent from 24.2 percent and
23 .4 percent from 24.5 percent respectively.
Respondents anticipating th eir incomes to increase
climbed to 18.1 percent from 16.3 percen t, and those
expecting incomes to fall also went up to 10.8 percent
from 9.5 percent.
Consumers exp ecting business conditions to improve Birks 3Q Sales Increase
over the next six months rose to 16 .2 percent from
Jewelry retailer Birks Group reported that comparable
14.5 percent, while those expecting conditions to worsen store sales for the third quarter ti ck ed up 3 .5 percent
inched down to 10.3 percent from 10.8 percent.
year on year. It refl ects a 5 .9 percent growth in comparable
store sales in Canada and a 1.4 percent improvement in
Macy's to Close Stores
comparable store sales in the US, notwithstanding the
Macy's, Inc. said it will close 40 stores out ofa current total strong US. dollar impacting tourist sp ending in th e US.
of about 770 as part ofa restructuring initiative to cut costs. - Total consolidated n et sales fell 6.6 p ercent year on
The announcement came in light of what Macy's called
year in the third quarter after curren cy considerations.
"disappointing 2015 sales and earnings performance." Its
Total conso lidated n et sales rose 1.2 percent before
comparable sales on an owned-plus-licensed basis declined
currency considerations.
4.7 percent year on year in the months of November and - Timepieces and fin e jewelry sales in th e US . jumped
D ecember 2015 combined, or a drop of5.2 percent on
2.4 percent year on year for the holiday period. Canada
an owned basis.
stores continued to exp eri ence an in crease in average
- The retailer closed four stores in the final three quarters of
sales transactions .
Jewelry Stock Index

COMPANY
1128116
12131/15
% CHANGE
33.38
37 .13
-10%
113.98
123.69
-8%
Blue Ni le
Signet Group
Rapaport Jewelry Index
'''''
'"'
""
"",
J
Tiffany & Co.
61.02
76.29
-20%
J
2016
20"
-
Dow.)ones Index -
Rap Jewelry Index
Michael Hill's 1H Sales Grow

Australian jewelry retailer Michael Hill announced
an 8.7 percent year-on-year growth in all store sales and
a 4.8 percent improvement in same store sales across
its Michael Hill and Enuna & Roe brands in the first
half that ended December 31, 2015. The group earned
$211.7 million in all store sales and $200.3 million in same
store sales during those six months.
Forallstore sales the Michael Hill brand saw 3.5 percent growth
to $120.5millioninAustralia,6.1 percent to $43.5 million in
New Zealand, 18.4 percent to $36.5 million in Canada
and 25 .1 percent to $7.4 million in the U.S.
The Michael Hill brand achieved 2.6 percent growth to
$1 18 .1 million inAustralia,6.1 percent to $43.5 million in
New Zealand,S .2 percent to $30.5 million in Canada and
1 percent to $5 .6 million in the US. for sam e store sales .
- The Emma & Ro e brand reported all sto re sales
skyrocketed 89.4 percent to $3.2 million in Australia and
265 .8 percent to $254,800 in New Zealand.
Same store sales for the Elluna & Roe brand in Australia
jumped 49.1 percent to $2.3 million .
The group considered the Enuna & Roe brand to still
be in its trial phase, and expects to open five more stores
before the end of the finan cial year.
Th e board of Michael Hill International Limited also
alU10unced that it was considering listing the company
on th e Australian Securities Exchange (ASX) .
The CPI for watches slipped 1.6 percent month on month

in December, but rose .8 percent year on year.
Inflation was recorded to be 1 percent lower year on year.
CTF 3Q Sales Slump

Hong Kongj ewelry retailer ChowTai Fook's (CTF) retail
sales value dwindled 11 percent year on year in the third
quarter ending December 31, 2015.The company, China's
top jewelry retailer by market value, cited fewer tourists
from mainland China into Hong Kong and weaker local
retail sentimen t~ in Hong Kong and Macau as reasons for
the decline. CTF filed its report solely in percentage terms.
Hong Kong and Macau's retail sales value collectively
fell 20 percent, while mainland C hina dipped 6 percent.
Same store sales dived 15 percent year on year by value
and 13 percent by volume across th e group. H ong Kong
and Macau's same store sales tumbled 23 percent by value
and 21 percent by volume. Mainland China's same store
sales slipped 6 percent by value and 7 percent by volume.
Gem-set jewelry same store sales lost 16 percent in
Hong Kong and Macau,and 7 percent in mainland China.
Gold products accounted for 56 percent of C TF's total
retail sales value, followed by gem-set jewelry at 28 percent,
platinum and karat-gold products at 12 percent and
watches at 4 percent.
u.s. Retail Jewelry Store Sales

S Billions
Jewelry Sales Rise, Prices Fall

U .S. specialty jewelry store sales rose 3.6 percent
year on year to $2.6 billion in November 2015, according
to the U.S . Census Bureau. Specialty j ewelry store sales
from January to November 2015 fell 1 percent year on year
to $24.69 billion. Total retail and food service sales in
November increased 1.6 percent to $448.58 billion.
Th e cons um er pri ce index (CP I) for jewelry
shrank .4 percent in December 2015 from November 2015,
according to th e Burea u of Labor Statistics. Th e C PI
for all urban consumer good s declined .1 percent.
Consumer Confidence Inde
2011 1.65 2.27 2.01 2.23 2.67 2.11 2.02 2.22 2.12 2.04 2.50 5.72
2012 1.67 2.60 2.05 1.95 2.67 2.14 1.94 2.1 1 2.04 2.05 2.53 6.03
2013 1.78 2.53 2.13 2.23 2.70 2.12 2.00 2.14 2.01 2.23 2.67 5.n
2014 1.89 2.61 2.14 2.28 2.83 2.16 2.13 2.22 203 2.16 2.51 5.56
2015 1.77 2.47 2.03 2.22 2.n 2.28 2.19 2.22 2.02 2.13 2.60
Total Year Year-to Date "fo Change
2011
29.56
2012
2013
2014
2015
29.78
23.84
23.75
30.31
30.52
24.54
24.96
3%
24.70
24.70
-1%
1%
0%
2%
Annual Percentage Rates
'"
'00
"
~
",
, , ,
JFMAMJJASOND
Rapaport February 20 16 111
WP Diamonds Releases Ranking

Online buyer of diamonds, jewelry and watches
WP Diamonds released a ranking of the top diamonds
and diamond j ewelry preferred by consumers in the
U. S. Titled "Ameri ca's Diamond and Jewelry R anking,"
th e report draws data across 15,000 consumer inquiries
over 50 states.
New York was reported to have the highest average
value per carat of di amo nd, followed by Florida,
California, Conn ecti cu t and M aryland .
M aryland topped the charts for largest average carat size
owned at 1.75 carats.The following nine states include:
Michigan, 1.69 carats; Illin ois, 1 .59 carats; Ala ska ,
1.49 carats; New York,1.47 carats; Texas, 1.47 carats;
Florida, 1.47 carats; Virginia, 1.44 cara ts; Arkansas,
1.41 carats; C alifornia, 1.40 carats.
Round shap es are most popul ar in t h e U.S. 55.4 percent; foll owed by princess - 22.1 percent;
marquise - 4. 8 percent; emerald - 4.5 percent and
cushion - 4.1 percent.
The top five states in which each cut is most popular
are: ROJ/ nd - Mi chi ga n, Montana , Tenn essee,
Mississippi, Kentucky; Princess - Nebraska, Kansas,
Arizona, Ohio, Wisconsin; Cushion - Mi ssiss ippi ,
Montana, South Carolina , Texas, Delaware; Emerald
- Rh od e Island , Kansas, Texas, West Virginia,
South Dakota; H eart - Delaware, Florida, Minnesota,
Utah, O regon; Marquise - Louisiana, Illinois, Indiana,
Virginia, Missouri; Oval-Texas, Minnesota,Arkansas,
New York, Michigan; Pear - Texas, Co nn ectic ut ,
West Virginia, C aliforni a, Oregon and R adiatlt South Carolina, Utah,WestVirginia, Iowa,Arkansas.
FTC to Change Jewelry Guide

Th e Federal Trade Com mission (FT C) is seeking
conunents by April 4, 2016 on its latest draft of proposed
chan ges to the FTC Guides for the Jewelry Industry.
The guides - formally called "Guides for the j ewelry,
Precio us Metals, and Pewter Industries" - provide
advice on avoiding deceptive claims about materials used
11 2 Rapaport February 2016
for the jewelry industry, including diamonds, precious

m etals and pead s. Th e FTC is making changes to the
guide after a public roundtable in 2013 agreed that the
FTC's guides should be amended.
The FTC specifi cally requested comm ents on issues
concerning composite gemsto nes, pearls, diamonds
and precious metal alloys.
The guide's proposed changes include topics covering
below-threshold alloys, precio us m etal co nt ents
of mixed m etal products, sy nth etic diamonds and
treatments.
The new guide will target rules governing the use of
the word "gem ," as well as appro priate vocabulary and
guides for disclosures.
The j ewelers Vigilance Committee avC} said it plans
to reconvene a conunittee of industry associations and
a separate conunittee open to all industry m embers to
formulate a response to the new draft.
JVC Publishes New Guide

The j ewelers Vigilance Conuni ttee aVC) published
a guid e that helps jewelers ensure their products sol d
comply w ith th e law. Th e guid e "Gettin g It Rig ht
- JV C's Guide to Quality Programs for J ewelers:
Ensurin g Legal Co mpli ance" was published with a
gra nt fro m the International Gemological Institute
(IG I}. Th e first of its kind from JVC, the gu ide differs
from JVC's previous reso urces by provi ding jewelers
practi cal informati on on best practices they can adopt
t o e nsure complia nce, such as a sam pl e inspec ti o n
report and a checklist, said Suzan Flanun ,JVC's senior
counsel. Flanun added that the guide would be relevant
in the rece nt climate as the number of regulatory laws
and interest in complian ce increase.Th e gu id e covers
produ ct areas including:
Precious metals
Gemstones and pearls, including diamonds
Advertising and disclosu re
Country of o rigin markings
Plant and wildlife products
GIA Debuts NY Design Program

Th e G e mologi ca l I nstitute of America (G IA)
launched a 26-week diploma program in January 2016
in New York City for j ewelry design and technology
ODT) students.Taught in a classroom in the International
Gem Tower in the Diamond District - GIA's N ew York
campus - student'i learn how to use computer-aided
design/computer-aided manufacturing (CAD/CAM)
software and 3D printers as a rapid pro totyping system
to design and manufacture jewelry. The next session
will conunence on September 29, 2016.
Carelle Earns "Made in NY" Mark

Jewelry brand Carelle has become one of th e first
fashion and jewelry companies to be recognized under
New York City's " Made in NY" distinction . O riginally
an initiative of th e N Y C Economic D evel opment
Corporation to recognize and celebrate NYC's film,TV
and digital sectors, " Made in NY" has been expanded
to include New York City's fashion and manufacturing
industri es. Th e fashion initiative was launch ed in
August 2015 and will feature various programs
to support local fashion industries which include
promotional campaigns, business-to-business
opportunities and financing options.
finest champions. She was supportive, smart, and giving

of her remarkable talents. She touched the lives and
hearts of so many." Amber Michelle, editor in chief of
Rapaport Magaz ine, said, "Cindy Edelstein loved jewelry
and was a driving force in thejewelry design conullunity.
She was constantly developing innovative new programs
to promote designer jewelry to the industry and to assist
designers in growing their businesses. Above all else she
always said that she was blessed to have her husband
Frank and her daughter R emy."
Designer Erica Courtney has launched a crowdfunding
effort to help create a college fund for Edelstein' daughter
Remy Sasha Stankus. The fund aims to raise $350,000
and has raised over $40,000 so far .
JA Announces GEM Award Winners

Jewelers of America OA) announced the winn,er~s;..~...
of the 14th annual GEM Awards held in
...
New York C ity in January 2016. More than
450 people in the jewelry industry attended
the event. Th e winners are:
Rob Bates, news director of J CK, for the
GEM Award for Media Excellence.
Cartier, for the GEM Award for Watch Design.
Temple St. Clair, for th e GEM Award for
J ewelry D esign.
Cindy Edelstein Dies at 51

Cindy Ed elstein, author, edi to r and lo ng-time
consultant to the industry died on January 24, 2016 of
heart failure. Edelstein was 51 .Beginning her career in the
industry as a fashion editor at JCK magazine, Edelstein
founded the Jeweler's Resource Bureau in 1991. Her
husband Frank Stankus joined her in th e business five
years later. Edelstein, a member of the Women's Jewelry
Associati on (WJA) , was well-known as a trade show
consultant for the jCK, Couture and AGTA show. She
also created her design-centric show globalDESIGN.
A spokesperson from trade organization j ewelers
of Ameri ca OA) said, in an email to Rapaport News,
"jewelers of America and all of our members mourn
the loss ofCindy Edelstein. She was one ofour industry's
COLORED GEMSTONE
Backing translucent pastel gemstones with

hematite or mother-of-pearl to create doublets
adds new colors and texture to gems.
By S HERYL JON ES
e lvety purple am ethyst, sunny lemon

quartz, min t green prasiolite, blue t opaz
and rhodolite are just a few gemstones that
are being transfo rmed into spectacular shades of
color after being fused together with other material
such as hematite or mother- of-pearl to form doublets.
Th ese innovative combinations are giving well-known
gemstones new depth and luster - making a technique
that was best known for creating beau tiful and durable
opals popular again.
In addition to creating new colors with natural
gemstones, doubl e t~ are a way to use natural gemstone
material that is so m etimes too fr agil e t o be se t and
worn alone. This is the case with m ost opals, which are
the most comm on and popular doublet. Opal deposi ts
form in thin layers, making the stone so fragil e that it
is often too delicate to wear. B y fu sing this material on
top of a less expensive natural or man- m ade material,
th e opal becomes more durable.
Peter Blythe,ofMin eshaft, based in Canberra , Australia,

and a self- professed " opalholic," says he cuts his opal into
free-form shapes and fu ses it to either potch opal, which
is opal without color or play, or ironstone, which is the
less desirable product that remains after cutting a boulder
opal. The result offi.1sing opal on top of dark material is
a vivid, dazzling array of colors that looks amazing and
sell quickly.
Doubl e ts also m ake gemstones th at are more
expensive du e t o lack of availability more afford able.
" I have seen an in crease in th e popularity of opa l
doubl ets within th e past fi ve yea rs due to the shortage
and expense of solid black opal,"Blythe says." Doublets
are a good alternati ve for a fr action of th e cost, but
with the vivid co lors and individuality only opal s
ca n provi de. Solid black opal can range in price fro m
.$3,000 to $100,000, w hich is too expensive fo r most
customers. But a high-quality doublet that ranges from
.$300 to $1,000 is mu ch more affordabl e."
Margo Manhattan
IMPROVED TECHNIQUE
Abeer Jain, director of marketing

and sales at Fin e Gems NY Inc., says
he and his fath er,Amar Jain, president
of the finn, have been manufacturing

doublets for the past ten years . "As quality
natural gemstone material becomes
\
sca rce and more expensive, thi s
is a way to provide new products
by maximizing the use of the same
natural stones we always offer without
using synthetics to create new colors,"
says Abeer.
Abeer and his father improved th e

process of nlsing the stones together
using a proprietary process."The
technique invo lves creating a

special adhesive to merge the
stones that does not bubble or
alter the natural composition
or th e color of th e natural
.
gems ton es to
any way, "
explains Abeer. The
result~
are
beautiful, durable stones that have

a more intense, rich color that looks
seamless from the top.
NEW COLORS
Gemstones such as good-quality amethyst

and prasiolite in very large sizes can be expensive.
But making doubl ets requires less material and has
th e added benefit of g ivin g a new look to more
expensive gem stones. Amar adds, " The most popular
product combinations have been amethyst backed with
hematite, rose lavender amethyst backed with hematite,
crystal with hematite, lemon quartz with hemati te,
moon quartz with mother-of-pearl, ro se quartz
with mother-of-pearl, crystal with mother-of-pearl."
The hematite add s sparkl e and shimm er and the
mother-of-pearl gives stones a lumin escent quality.
These attractive combinations, which

can be set in all types of m etal, offer
customers more options and a way
for jewelers to increase sales.
Other gemstone combinations the l ains
manufa cture include smoky quartz with
m other-of-p earl, smoky quartz with black
mother-of-pead, citrine with mother-of-pearl, peridot
with mother-of-pearl, blue topaz with mother-of-pead,
amethyst with black mother-of-pearl, lemon quartz
with pink mother-of-pearl, prasiolite with hematite.
Th e l aios are con tinually addin g n ew creat ive
combi n ations, su ch as crystal with rh odolit e,
peridot with mother-of-pearl and aquamarine
with mother-of-pearl.
Th e l ai os' new lin e of doublets is
a success with long-time customers,
among them , jewelry designer,
Margo Manhattan. H er eponymous lin e
features th e crystal and hematite and
crystal and m other-of-pearl doublets.
" I love th e ston es . Th e colors are
deep and mesmerizing. They work
perfectly with my edgy rock'n'roll
design esthetic," says Manhattan.
With so many different varieties
of ge m stones t o choose from, the
potential co mbination s of gemstone
doublets and resulting shades of color are
endless. Selecting th e right colors can be
chall enging. "My rul e of thumb is if it is
bright an d colorful, it will sell quickly,"
says Blythe. But he adds, "To make the m ost
vibrant doublets requires high-quality material, which
is getting harder to source." Even so, doublet~ are still
the best option of presenting natural gemstones in new
colors. Doublets may provide the right competitive
edge in a market where manufacturers and jewelry
designers need to present new and excitin g material at
affordable prices ...
LEGACY
The desire to create adornments w ith beautiful gemstones is as old

as civilization. And the desire to ow n these jewels, says a new book,
has played a major role in shaping history.
By PHYUIS ScHILLER
ant, take, have;' says Aja Raden, in her

new book, Stoned:Jewelry, Obsession, and
How Desire Shapes tlte JMJrld, are words that
sum up the feelings that jewels have inspired
throughout the ages . "We can unspool th e neurology
of it, the psychology of it and the economics of it, but
it really does come down to desire. I always have had a
particular obsession about jewelry - I see it, I want it.
And it turns ou t science backs me up. W hen you see
something you like, you are compelled to take it."The
"science" behind this love of sparkle, she explains, "is
because our brain has evolved for hundreds of millions
ofyears, from when we were primates, to look for water.
So when we see something shiny or glittery, every part
of om brain lights up."
Raden , a j ewelry designer an d now chronicler of
jewelry history, says sh e collected not only jewelry but
facts about it. "So I knew most or the majority of these
stories before I ever started writing this book." In her
book, she points o u t how specific jewels influenced
world events, from Queen Isabella's love of emeralds
inspiring Christopher Columbus to seek ou t wealth
in the NewWorld to the elaborate diamond necklace
whose theft tarnished MarieAntoinette's already shaky

public image and contributed to the French Revolution
and the downfall of the French monarchy. And th en
there's th e "perfect" pearl necklace, La Peregrina , that
Queen Elizabeth I coveted enough to risk war with
Spain, ultimat ely leading to the defeat of the Spanish
Annada and Britain's Golden Age . The book presents
eight examples in all, but the author says there were
many others she might have included . Ultimately,
Raden says, the story these jewels tell is how beautiful
things affect people and the emotional attachment
people form with them."And it's because they're not just
things, they're symbols. In some cases, they're tangible,
physical stand-ins for intangible things but at th e same
time they're also artifacts ."
People melt down statues, people paint over frescoes
and knock down buildings eventually, Raden says. " The
reason we have jewelry from the Stone Age is because
it's so beautiful nobody takes it apart.And because it is a
time machine, a VIP pass to royalty or history or things
you'd other.vise never have access to.You can pick up
this jewel and say, 'All of these things happened and they
were all wearing this or trying to get this.'"
AN ENGAGING IDEA
So much of jewelr y purchasing,
points out Raden, is not just about
what you want but th e desire to fit
in and keep up. It's how De Beers created
th e engagem en t ring imperative, she
says, a story sh e relates in the book.

"Afte r WW I I, in order to expa nd
their diamond market in America,
De Beers needed to invent a product
to sell to the rising middle class, w ho
didn 't necessarily want diamonds,
in a ring or otherwise." What
De Beers did,she says, was to m arket
the diam ond engagement ring as a
"necessary luxury" by creating "a
permanent emotional attachment
t o have o ne. Th at 's how you get
people to part with cash . There is
a spo t in th e brain that co nfu ses
love and money." If everyone else
has a diamond ring, she continues,
"then I better get a diamond ring.
If someone has a bigger diamond
rin g than me, I need to get a
bigger diamond ring. That's the
prime mover for a lot of people
buying j ewelry - keeping up,
fitting in, because these jewels
are signifi ers. Th ey say you
belong to a certain class. It's
not about individual taste in
the arts, it's abo ut what you
think the jewels are t ellin g
people about you."
~~~~~~;~~::-----~~~:~~~~~~~--_J
When
it everyone
comes to wants
want the sa m e thing, Raden
and
desire,
goes on to say. " First and foremost you want safety and
security for yourself and your children . But once yo u
ge t past th e basics, everyone wants something shiny.
Everyone wants to compete and compare. It's normal
and somehow comforting to know that people who
I don't know, who have a very different culture, aren't
that different in this respect."
PUTTING A VALUE ON THINGS

"My ultimate takeaway is th ere's no reality to what
is real," sums up Rad en . Whether it 's glass b eads
being the most valu able thing someone's ever seen,
as when th e Dutch gave them in trade t o the Lenap e
Indians for Manhattan , or a ring made from bort th at
a dictator th o ught was precious because he was told
that it was worth millions,"sc much of it is smoke and
mirrors . And ye t, it 's also human, th e way we

imbue things with m eanin g and value based on our
circumstances . And it doesn't matter because we're
all in it together. It's less interesting how colored
gemstones form, whether in the gro und or a lab, but
how they form in a human mind, how they come to
take on meaning and take on value." Ajewel's real value
and purpose, Raden says, is one and th e same, as its
"only actual ftulction is to reflect our values back to us
and show us who we are and what we "vill do to get it,
what will we do when we have it. Although the value is
imaginary, the imaginary value is powerful and can be
real if we all believe it together, whether it's engagement
rings or glass beads." ..
Rapaport February2016
119
STYLE
~!!s:r: OF SHOW &
FIRST PLACE CARVING

Allen Kleiman
A. Kleiman & Co.
Suite of Paraiba tourmal ine,
58.07 tota I-carat-weight,
Nauti lus shell carvings.
By AMBER MICHELLE
olor is on e of th e best ways to exp ress your personality.
Combine colored gemstones in uniqu e jewelry designs and
you've got a winner. Th at's exac tly what happened at th e
32nd edition of the American Gem Trade Association (AGTA)
SpectnunAwards competition, where colored gems were showcased
in innovative designs. The judging for the competiti on took place in
N ewYork City, where RonaldWArends,Aires Jewelers; Stephen M.Avery,
Stephen M. Avery, Inc.; Deirdre Feath erston e, Fea th erston e D esign ;
Lauren Kulchinksy-Levison, Mayfair Rocks and Aton Suna, Suna Bros.,
gathered to evaluate the 492 entries. At the same time, the C utting Edge
Awards, which recognize excellence and creativity in lapidary work, were
also being assessed. Once the winners were announced, the j ewelry
and gemstones were displayed during an editor's event to promote
co lored gemstone jewelry to th e media, stylists and oth er
style influencers.
BEST USE OF COWR
Bella C ampbell
Ca mpbelliaN
Slue-green tourmaline, emera ld
and la-k.arat yellow gold
earrings.
BEST USE OF PLATINUM & COWR

Andrew C osten, CosteN C atba/lle
Green t ourmaline, indicolite tourmaline, rubellite
tourmaline, yellow zircon, diamond and plat inum
Symphony of Colour brace let.
BEST USE OF SILVER & COLOR

William Travis Kukovich
William Tra vu j nvelry
Brown diamond, diam ond, mixed gold
and oxidized ll.... er pendant.
FAsmON FORWARD
Brian Cook
Nalllrt's Goomary
Quartz, Paraiba tourmaline,
hauyn, ruby, spesyrtite garnet,
golden rutilated quartz, fire agate beads
and 24-karat yellow gold Wheel of Light
numinous pendant.
BEST USE OF PEARLS

Naomi Sarna
Naom i Sama Desig1ls
Freshwater baroque cultured pearl, diamond
and l8-karat white gold necklace.
EDITORS CHOICE
Eclat Jewels
Eclat j ewds Inc.
Aquamar ine. d lamond,enamel
and 18karat yellow gold cuff.
CV'
o
I I I
FIRST PLACE
Tony Nemyer
Grimbil/l Jewelers
Purple spinel, diamond, platinum
and 1S-karatyellowgold ring.
GEM DIVA
Erica Courtney
Erica Courtney, Inc.
CV'
CO
THIRD PLACE
SECOND PLACE
Slue sapphire, diamond and
Caroline C hartouni
C(Jrolille C
Laurence Bruyninckx
Laure/ICc B ruynillckx
platinum Champagne Bubble"
wedding ring set.
?araiba tourmaline, diamond and
Slue topaz, mint tourmaline, diamond
la-karat white gold earrings.
and la-karat white gold earrings with

interchangeable dangles .
SECOND PLACE
Ricardo Basta
E. Eichberg, l lU.
Rubellite tourmaline, diamond,
ruby and l8-karat rose gold ring.
FIRST PLACE
C laudia Kretchmer
Somewhere in the Rainbow
THIRD PLACE
Randy Coffi
Somewhere ill the Rainbow
Skolor tourmaline, Para iba
tourmaline, pink. sapphire,
diamond and platinum ring.
Color-shift blue zircon, diamond,

platinum and 24-karat crystallized
gold MRock Star2 Mpendant.
GEM DIVA
Lisa Linhardt
Linhardt Design
Yellow sapphire and oxidized
sterling silver MTempest"
sculptural duster ring.
cv
u
I I I
U)
U)
THIRD PLACE
Gil
Gil Int'/
Alexandrite, diamond
and platinum ring.
FIRST PLACE
Brent Malgarin
Elegmlt Gems, Ltd.
Slue zircon, pearl, diamond
and platinum necklace.
122 Rapaport
February 2016
SECOND PLACE
Lindsay J an e
Ambassador Gen,S
f'adparadscha sapphire, orange and pi nk
sapphire, diamond and p latinum ring.
GEM DIVA
N aomi Sarna
Naomi Sarna Desig1lS
White, yellow, pink, brown and
green diamond, multicolored
sapphire, amethyst and
l8-karat white gold
petal brooch.
SAVOR SILVER
MANUFACTURING HONORS
Michael Jakubowski
Gem Fanatic
U.nheated pink sapphire, white and pink
diamond, l4-karat white and rose gold ring.
Hisano Shepherd
little It
PLATINUM HONORS
Kathy Kinev
J ewel Creations, flu.
Slue zircon, diamond and
platinum "Chartres" ring .
PLATINUM INNOVATION
Michael Endlich
Pave Fine Jewelry
SI.iced Tahitian baroque pearl, black

diamond and sterling silver cufflinks.
Lavender 5apphire, diamond and

platinum "Sweetness ring.
Troels D. Larsen
Truels D. LArsen Tewelry
Tanzanite, diamondand l8-karat yellow and
white gold necklace.
SAVOR SILVER
Priyanka Murthy
ARYAESHA
PLATINUM HONORS
Slue topaz, diamond and

sterling silver ring.
Eddie Sakamoto
Somewhere ill the Raillbow
HONORABLE MENTION
Alexia Connellan
Alexia COlllleila" Lu xury Jewelry
Tanzanite, diamond and platinum

"Ice-Ice Baby" bracelet.
Purple-pink tourmaline, purple sapphire, diamond

and la-karat rose gold "Victoria" bracelet.
-"
SAVOR SILVER
William Travis Jewelry
PLATINUM HONORS
HONORABLE MENTION
Josette Patterson
Mark Pattersoll
Rubellite tourmaline, diamond and
l8-karat white gold "Aura" earrings.
Wick & Greene Jewelers

Wick & Greelle Jewelers
Unheated blue sapphire and
platinum fleur-de- lis pendantJpin.
PLATINUM INNOVATION
f>rehnite, l8-karat yellow gold

and oxidized silver ring.
Lorenzo Chavez
Geogem-USA
Black jade, 5apphire, diamond,
platinum and la-karat yellow gold
"Big Sky" pendant.
CV'
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FIRST PLACE
Ricardo Basta
E. Eichberg, Inc.
Carnelian, tsavorite garnet,
diamond and l8-karat yellow gold
"Enchanted Frog" ring.
SECOND PLACE
THIRD PLACE
Kim Hurlbert-$arosi
Sarosi by Timeless Gems
GEM DIVA
Gurmit Kaur Campbell, SRW
Impe ria l topaz, diamond and

l8-karat yellow gold ring.
South Sea cultured pearl,

diamond and l8-karat yellow gold
"Betwixt and Between" ring.
Heath London
Heath LondoN Jewelry
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Rock crystal quartz, rubell ite tourmaline,

diamond and la-karat gold earrings.
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PLATINUM INNOVATION
Heena Chhcda-Shah
VALANI
Blue sapphire, diamond and
HONORABLE MENTION
platinum "Rival" ring.
Heath London
Heath London Jewelry
?araiba tourmaline, p ink
tourmaline, diamond and
l8-karat yellow gold

"Rajasthani Dreams
earrings.
SAVOR SILVER
MANUFACI'URING HONORS
Stuller, Inc.
Stuller, l,u.
Elizabeth Garvin
Eliz abeth Can,ill Pille
PLATINUM HONORS
Michael Endlich
Pave Pille Jewelry
Topaz and platinum ring.
Aquamarine, heliodor,
l8-karat yellow gold and
oxidized sterling silver
Cyclone" cuff.
Moonstone, diamond and

platinum "Moon Beam" ring.
FIRST PLACE
SECOND PLACE
Ziad Noshie
Almaza jewelers
Ralph Wobito
Wobito Gems, Ltd.
Mother-of-pearl, black diamond,

white diamond, tsavorite garnet,
l8-karat rose gold, 18-karat white
gold and silver "Hanging Panda. "
Colorless topaz and diaspore

perfume bottle.
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SECOND PLACE
Llyn L. Strelau
THIRD PLACE
FIRST PLACE
Jewels by Desigll
Mark Schneider
Mark Schlleider D esigll
Black onyx, rock crystal, black and

white South Sea kesh i pearls, diamond,
l8-karat yellow and 19-karat white gold
Paddle Your Own Canoe" reversible cufflinks.
Mark Schneider
Mark Schlleider Design
Peridot, spessartite garnet,

tsavor ite garnet, white diamond,
yellow diamond, platinum and
l8-karat yellow gold ring.
PLATINUM HONORS
I I I
David Hines
Nvir B/flIuhe
Alexandrite, l 8-ka rat white gold

and platinum "Cobra" ring.
Fire opal, tsavorite garnet,

colored diamond, white
diamond and sterling silver ring.
Craig Slavens
Studio 247 Pinejewe/ry
Unheated Sri Lankan color-change
violet-blue sapphire, diamond,
l8-karat yellow gold and platinum ring.
SAVOR SILVER
William Travis jewelry
Golden sheen sapphire, 18-karat yellow gold,
l8-karat rose gold and oxidized silver ring.
I I I
SECOND PLACE
Glenn Lehrer
FIRST PLACE
Joseph Ambalu
Lehrer Designs, Inc.

48.86-caratopa l
"Soul Angel" carving.
Amba Gem Corp.

8.06-<arat unheated blue
Burme~e sapphire.
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SECOND PLACE
David Nassi
100% Natllral, Ud.
22.73-carat unheated Sri Lankan
yellow ~apphire ..
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THIRD PLACE
Rodney Rahmani
Brilliant Stars
67.11-carat unheated b lue
Burmese sapphire carving.
CV
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THIRD PLACE
Sailesh Lalli
HONORABLE MENTION
Glenn Lehrer
Lehrer Designs, Inc.
53. 57-carat tran~pa rent gem
~ilica chrysocolla
"Geo rgia's Dream" carving.
Sparkles and Colors USA, fnc.

1:l.28-carat unheated
Bu rmese royal blue ~apphire.
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FIRST PLACE
John Dyer
Johll Dyer & Co.
21.96-carat multifaceted
cu~hion-cut imperia l topaz.
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SECOND PLACE
Hemant Phophaliya
A G Color, bu.
40.58-carat checkerboard
tanzan ite.
I-
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THIRD PLACE
Darrell Jang
Darrell Jang
42 .39-carat cut-corner
octagon tourmaline.
SECOND PLACE
Dalan Hargrave
I I I
22.45-carat herringbone cut

tourmaline.
B. Hmju
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SECOND PLACE
Mikola Kukharuk
Nomad's
Suite of vintage pear-cut
grossular mint garnet,
50.26 total carat weight.
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11-
120.98-carat tanzanite
"New Era" cut with
inverse facets.
Robert Shapiro
14.29-carat oval black o pal.
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THIRD PLACE
John Dyer
Johll Dyer & C o.
FIRST PLACE
Robert Shapiro
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63.63-carat sunstone
"Cele~tial City" carving.
;1
?air of unheated oval

Madagascar morganite.
I-
Srmstone Butte Milring
I I I
FIRST PLACE
Allen Kleiman
A. Kleiman & Co.
I I I
FIRST PLACE
Dalan Hargrave
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SECOND PLACE
Sailesh Lalli
Sparkles and Colors USA, Inc.
14.93-carat moonstone.
THIRD PLACE
Ajay Bansal
Best in GeIIrs
?air of matched pear-shaped
cabochon opals. 84.63 total
carat weight.
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THIRD PLACE
Steve Wallner
Westview Gems
5.29-<arat green-blue colo r-~hift
sapphire.
Rapaport
February2016 125
DESIGNERlines
by A IIIber Michelle
he extraordinary jewelry of
Hong Kong-based des igner
Wallace C han is captured in a new book,
H:allace Chan: Dream Light Water, which he
penned with jewelry historian and gemologi~t
...._ .....' Juliet de La Rochefoucauld. Publi shed by
Rizzoli New York, the book features Chan's most
intricate and technically challenging creations. All of
the jewelry in th e 380-page tome is showcased through
detailed photography th at accentuates the precious
materials, innovative techniques and vision of Chan .
Wallace Chan: Dream Light Water is a limited edition of
2,000 individually numbered copies.
Chan shares his design philosophy and creative
influences with Rapaport Maga z ine Editor-in-Chief
Amber Michelle.
Why did you decide to write a book?
Books are precious to me.They are the embodiment

of memories and knowledge, a medium to pass on the
human heritage. With this book, I wish to show jewelry
art in a different perspective. It took many years to discover
the right style of photography for my pieces.The dose-up
images in tilis book reveal tile detail.. of craftsmanship that
we normally cannot see with the eye. I want to show tile
complexity of each piece ofjewelry tillOugh the lens .
What j,ifIuences your jewelry desig ns?
Love and life influence me and my work. Every day
Above: Stilled Life depicts a cicada comprised of wafer-thin

carved imperial jadeite using a technique invented and
patented by Chan. Yellow diamonds, rubies, lavender jade
and gold add detail to the cicada.
I greet the world with an open heart; I absorb knowledge

and experiences like a sponge. I feel that I am a newborn
every morning, always curious. Buddhists say, "There is no
gate to wisdom, love is the only way." I love all things in
the universe, a cup, a plant. If you love it tenderly, listen to
the stories it tells, you naturally feel inspired all the time.
JVI,at are ti,e elements that make good jewelry desig n?
There is no good or bad in art, only personal preferences.
When it comes to jewelry, ergonoI1lics is a crucial element.
If you make an earring that hurts the ear, or a necklace that
burdeIL" the neck, you fail. Jewelry is meant to be worn,
it must be comfortable. A good piece ofjewelry should
be friendly to the human body.That is why I spent eight
years researching and experimenting with titanium. It is a
bio-friendly metal and five times lighter than gold .
You Iw ld afew p atents. H ow do you come up Wi tll these
innovative jewelry-making techniques?
My desire to create is a driving force to my desire
to innovate. I have ideas that I want to realize, but the
idea... cannot be realized without certain tools, materials
or techniques and that is when I need to innovate.
Innovations help me pass through barriers I encounter
on my path.
U'hat do diamonds brillg to tile desig n ofa p iece ofjervelry?
We celebrate the symbolism of diamond.. - eternity,
power and glamour. 1 often juxtapose diamond.. with jade
to play with the contrasting characteristics of the t\Vo. lt
helps bring out my universal view tiut all is one and one is
all.A.. a creator, it is important not to be bia.<;ed.1 appreciate
all kinds of materials as long as they are able to convey the
spirit of my work. +
The Largest Inventory Of
STOCK MEMO
VISIT US AT
,~ March 5th - March 9th Oriando,FL

Rapaport Feb 2016 V39 N2

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Manufacturers of large stones and fancy colors

FOREVERMARK STRENGTHENS PARTNERSHIPS

many in the diamond industry. he

8 Rapaport February 2016

to work on consumer marketing, undertake scale research and

DE BEERS SALES JUMP

"It is for more tf an educational process in

28 RIO TINTO RESTRUCTURES

34 NEW CONSUMER MIND-SET

Lower prices did lirde to stimulate

116 DOUBLE VISION

Backing tramlucent pastel gemstones

133 East Warm Springs, Las Vegas, Nevada 89119.

Subscripti ons: U.S. $180 per year, Overseas $350 to

POSTMASTER: Send address changes to

Copyright<> 2016 by Rapaport USA.

12 Rapaport February 2016

126 DESIGNER LINES

106 AN ARTIST'S EYE

110 RETAIL BULLETIN

LETIER FROM EDITOR

62 W 47th St #1 4All, NYC 212.827.0328

Hong Kong International

ASSO CIATE EDITO R: Shuan Sim

U 5 RETAIl: Lara Ewell

RUSSIA: Svetlalla She lest

h e mystery and allure

PHOTOGRAPHY: Don Kozus ko

Subscriptions: U.S, $180 per year. Overseas $350 to

ha s see n a ren aissa n ce in th e

country oforigin and treatment,

L.- ' - '

Market sentiment improved in January. However,

from the U.S. to China ah ead of the

Weak sentiment about C hina had a

Diamond demand was fairly stable

RapNet Diamond Index (RAPFM)

4Q Polished Diamond Trade at the Major Centers

ROUGH ON THE RISE

4Q Rough Diamond Trade at the Major Centers

D es pite lower trading, inve ntory

the market, De Beers is expected to

Petra Diamonds Sales & Average Price

Based on data published by Petra Diamonds.

Fiscal half year

ALROSA KEEPS PRICES STABLE

PEREGRINE SETTLES ROYALTY LITIGATION

ALROSA did not lower diamond prices at its

Peregrine Diamonds Ltd. announced that it has

RIO TINTO RESTRUCTURES

28 Rapaport February 2016

DIAMCOR ARRANGES LOAN DEFERRAL

MUROWA TO BOOST PRODUCTION

AGS OFFERS NEW SERVICE

The "Mounted Diamond Evaluation Report" is presented

facility in Gaborone, Botswana inJanuary 2016 as

ISRAEL SUES FOR GRANT TERMS BREACH

Israel's Civil E nforcement U nit has filed a

30 Rapaport February 2016

TIFFANY UPDATES BUYBACK PROGRAM

EXTELL ACQUIRES LAND FOR NEW TOWER

Tiffany & Co. announced its board of directors

Gary Barnett, president ofExtell Development,

TURKEY PARTNERS WITH WDM