AJA

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Matteo Marzotto – President of Fiera di Vicenza

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Armenian Heritage in the British Museum

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Conflict Minerals Challenge For The World Jewelry Industry

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i n t e r n at i o n a l M a g a z i n e


Armenian Government adopted Jewellry FEZ Creation in Yerevan

Armenia's capital city Yerevan will host a jewelry Free Economic Zone. The decision was made by the government during the session on February 27, 2014 . The new economic area will accommodate companies and private entrepreneurs representing jewelry, diamond cutting and watch industry. “AJA Holding Free Economic Zone� will be created by Armenian Jewellers Association, which has chapters in 23 countries. Fifteen companies from U.S., Russia, Turkey and Arab states have already expressed desire to open offices in FEZ. According to the development program designed by EV Consulting, FEZ is planned to attract 150 companies, create 2,000 jobsites and ensure annual export of $200-250 million in three years.

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Under current law, FEZ will provide a zero rate for VAT, taxes on income and property, as well as import duties. Free zone should be focused on exports: sales within Armenia will be taxed.

Read more on page 12

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Message from the President

Message from the President

PRESIDENT’S MESSAGE The jewelry Free Economic Zone in Armenia is currently consuming all of our time and energy. This is truly a prestigious project for Armenian jewelers from around the world, and not just from a business perspective. The purpose is much deeper and of greater importance: it is based on a national idea which can transform Armenia into a key player in the worldwide jewelry industry. This is a chance to establish our greatest and proudest legacy for our children, and give them the opportunity to continue our life’s work and traditions. I am sure that any project, including the creation of the Free Economic Zone, can only be successful if it is based on a foundation of national cultural traditions. It is especially important to preserve, and strengthen our traditions and roots during such a vitally significant historical period, which we are now facing as a nation, and within our own homeland, Armenia. We understand the substantial effect our organization can have on our national traditions in jewelry culture, and by globally drawing from our heritage to realize important projects. Our culture is not our only gift from our ancestors. National traditions must be enriched and maintained to ensure their development for future generations. We must claim and uphold this national responsibility. Sincerely, Gagik Gevorkyan

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INSIDE THIS ISSUE Main Topic 12

Welcome to the Jewellry Free Economic Zone in Yerevan

YEREVAN SHOW 18 Yerevan Show 2014 Minister of diaspora’s address to Yerevan Show 2013 participants The remarks of Hagop Baghdadlian at the Yerevan Jewelry Show 2013

FACES 36

Matteo Marzotto Made in Italy

12

ARMENIAN HERITAGE 42 Armenian Heritage in the British Museum

ARMENIAN SIGNATURES 50

Norayr Isler New ChairmAn of Istanbul Chamberof Jewelry (IKO)

18

50 36

42 6 AJA INTERNATIONAL MAGAZINE APRIL 2014

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EMOTION


COVER JEWEL 52

Miiori Now in Russia Everlasting values of Ohanes Hagopyan

Golden Dynasty 58 Tsolag Momjian’s History on the Bible Land

Golden Roots 62 Hrach Avakyan. Connecting dreams and reality

ANALYTICS 66

Conflict Minerals - Challenge For The World Jewellry Industry Conflict Minerals Disclosure Certain to Test Supply Chain Professionals’ Mettle

52

HISTORICAL REVIEW 72 Galouste Gulbenkian and Ren Lalique: A Golden Friendship

JEWELRY STORIES 76 The Hope Diamond Was Once a Symbol for Louis XIV, the Sun King

INTERVIEW 80 Art of Jewelry Photography

62

Master class by Erick Amirkhanian

EVENTs 84

Moscow Welcomes Delegates to CIBJO Congress 2014

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66

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Founder: Gagik Gevorkyan Publisher: Armenian Jewellers Association A non-governmental organization. Address: 1 Amiryan Street, Yerevan, Republic of Armenia 03073105, Issued: 29.09.2006

Managing Editor: Lusik Gukasyan Editor: Harut Sassounian Marketing Director: Arick Gevorkian

Contributors: Anne Nahabedian

Maria Ilyina Hannu Boulton Verinica Novoselova (Rouge&Polished) Joseph Stromberg Gayane Manukyan Philippe Bouasse

Graphic design: Ara Poghosyan Photoraphs: PHOTOLURE Erick Amirkhanian Chip Clark Francois Farges Edition of 5000 copies: Printed at ÂŤNushikyan PrintÂť publishing house, Address: Manandyan 33/6 street, Yerevan, Armenia Tel. +37410 46 46 60

520 N Central Ave, Glendale, CA 91203 Tell: 1 818 370 5822 www.ajainternational.com Representatives Abroad: Armenia: Sergey Sahakyan e-mail: sssprima@rambler.ru USA East Coast, NY: Berge Abajian e-mail: berge@bergio.com USA West Coast, LA: Sarkis Nourian e-mail: sarkisnourian@yahoo.com Montreal, Canada: Pierre Akkelian e-mail: Pierre@canadiangem.com South America, Argentina: Martin Moroian e-mail: martin@martingroup.com France, Europe: Hovel Chenorhokian e-mail: hovel@hexagone-sa.com Thailand, Asia: Arto Artinian

AJA International Magazine - a quarterly periodical of the Armenian Jewellers Association, which has been published since 2011. Read more at www.ajainternational.com

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e-mail:aja.bangkok@gmail.com


Main Topic

Main Topic

welcome to the jewellry

free economic zone in Yerevan «AJA Free Economic Zone» (hereunder referred – AJA FEZ ) is a unique cluster of jewelry, diamond cutting and watchmaking manufacturing companies in the center of Yerevan (Armenia), offering a number of advantages for international firms and business in the CIS region, which can be characterized by the developing system of automobile roads and railway connections for the passenger and cargo communication with the countries of Europe and Asia. Because of its strategic location: geographical proximity to Europe and Russia, AJA FEZ is a road map to growing CIS market thereby providing higher productivity, new firm formation, profitability, and innovations in the jewelry industry based on new perspectives. FEZ - YOUR POSSIBILITY TO SET UP A BUSINESS IN THE MEMBER-COUNTRY OF CUSTOMS UNION BETWEEN REPUBLIC OF BELARUS, THE RUSSIAN FEDERATION, REPUBLIC OF KAZAKHSTAN WITH MARKET COVERAGE ABOUT 200 MILLION PEOPLE

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GOVERNMENT SUPPORT OF THE JEWELRY, DIAMOND-CUTTING, AND WATCHMAKING SECTOR DEVELOPMENT STRATEGY; THE FEZ ESTABLISHMENT ORGANIZES ACCORDING TO THE LAW OF THE REPUBLIC OF ARMENIA ON FREE ECONOMIC ZONES (ADOPTED ON MAY 25, 2011) In 2011, the RA Government approved the «Export-oriented industrial strategy of Armenia’ which aims to support and promote the jewelry, diamond-cutting and watchmaking sectors among 11 industry sectors targeted on state level. Volume of foreign trade grows yearly with export to the main markets: CIS (Russia, Kazakhstan, Turkmenistan), UAE, USA, Thailand, etc.

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Main Topic

Main Topic TEN REASONS WHY TO BECOME AJA FEZ RESIDENT

1.YOUR ROAD MAP TO GROWING CIS MARKET

2.PRIVILEGED ACCESS TO CIS MARKETS THROUGH THE FREE TRADE AGREEMENT

ACCESS TO AJA GLOBAL NETWORK AND RESOURCES • AJA has its country Chapters and local Boards in Armenia Australia, Argentina, Belgium, Canada, Czech Republic, Egypt, France, Greece, Hong Kong, Iran, Israel, Italy, Japan, Lebanon, Russia, Thailand, Turkey, USA. • AJA is a part of a global jewelry network involved in international activity and with worldwide professional structures: AJA is a member of the World Jewellery Confederation (CIBJO), has working relationships with Fiera di Vicenza based on a Memorandum of Understanding, and has agreements in various fields.

«SPECIAL ZONE» STATUS

3. GOVERNMENT SUPPORT OF THE JEWELRY, DIAMOND-CUTTING, AND WATCHMAKING SECTOR DEVELOPMENT STRATEGY

4. PREFERENTIAL REGULATORY AND SPECIAL TAX REGIME

3.1 THE FEZ ESTABLISHMENT ORGANIZES ACCORDING TO THE LAW OF THE REPUBLIC OF ARMENIA ON FREE ECONOMIC ZONES (ADOPTED ON MAY 25, 2011)

7. ALL NECESSARY INFRASTRUCTURE PRIVILEGES 10.ARMENIA IS A LAND BETWEEN EUROPE AND ASIA

8. EQUIPPED AREA

5. HIGH-QUALITY COST-EFFECTIVE WORKFORCE

6. ACCESS TO AJA GLOBAL NETWORK AND RESOURCES

9.RENT FOR MANUFACTURE RS IN AJA FEZ IS PROJECTED TO BE NOTABLY LOWER COMPARED TO CURRENT WELL KNOWN JEWELRY SPECIAL ZONES

Armenia is a member of the World Trade Organization Free trade agreement with all CIS countries except Uzbekistan and Azerbaijan, which means 0 % customs duty when entering these markets Armenia currently enjoys «Generalized system of preferences» of the USA, Canada, Switzerland, Japan, and Norway Armenia also enjoys the GSP + trade regime provided by the EU Armenia signed the Customs Union road map between Republic of Belarus, the Russian Federation, Republic of Kazakhstan

PREFERENTIAL REGULATORY AND SPECIAL TAX REGIME PROVIDED BY «SPECIAL ZONE» STATUS FEZ residents will be exempt from all duties on FEZ territory, the State will provide its related services as a onestop shop. Legal entities will be exempt from profit tax; individual entrepreneurs from income tax whe n resident of and performing activities in FEZ • Public and industrial buildings and structures belonging or used by FEZ residents in FEZ territory will be exempt from property tax. • Goods released through ‘import to Free Economic Zone’ regime. as well as other goods produced in the territory of FEZ can be exported abroad through ‘export for free circulation’ or ‘re-exportation’ regimes without applying customs charges and non-tariff regulation measures.

TAX CATEGORY

RATE

in Armenia

In FEZ

Profit tax

20%

0%

Income tax

24,4% - 26%

0%

Assets tax

0,1% - 1,0%

0%

VAT

20%

0%

Custom duty

0-10%

0%

HIGH-QUALITY COST-EFFECTIVE WORKFORCE • Jewelry making is one of those rare crafts that is associated with Armenians and there are ancient jewelry making traditions and skills in Armenia. • Compared to a number of leading jewelry producing countries worldwide (e.g. India, China, Thailand, Honk-Kong, Italy, UAE etc.) the average wages in the sector are relatively lower in Armenia. For example, the 300 - 400 USD monthly salary is 2-3 times lower than in Russia. • Under the «Jewelry sector development strategy of Armenia», one of the building blocks in the respective Action plan refers to «improvement of professional education and workforce training». In this regard, participation in professional seminars and the establishment of a professional school of jewelry design in Armenia are planned to be implemented.

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ALL NECESSARY INFRASTRUCTURE PRIVILEGES PROVIDED BY «SPECIAL ZONE» STATUS • The entry and exit of the FEZ will be under the control of the FEZ organizer and the customs authorities of the Republic of Armenia (hereunder referred to – RA). The FEZ will be demarcated in a way to ensure its separation from the customs territory of the RA; • Full support from the Government of Republic of Armenia; • Single window clearance for Central and State level approvals; • Banking and insurance services; • Diamond bourse. Significant volumes of diamond cutting in the FEZ can contribute to the emergence of a diamond bourse. High investment potentials of the export-oriented nature of diamond companies will further be provided by diamond bourse operation; • Legal and investment consulting; • Certification of stones (potential partners: Gemological Institute of America (GIA), American Gem Society (AGS), International Gemological Institute (IGI) and HRD Antwerp); • Checkpoint will be set up with an area intended for carrying out customs formalities, control, devices ,and equipment necessary for detailed examination of goods entering and leaving the FEZ area; • Procurement and logistic support. Currently there are a number of insurance and diamond transportation companies in Armenia (including world famous Malca-Amit); • Central heating and cooling supply, gas distribution system, electricity, hot and cool water, communication ( internet/ telephone) to each unit in manufacturing area with own meter; • 24 hours, 7 days a week security personal & video surveillance, fire alarms, and fire defense systems; • IT office; • Medical care; • Human resource support; • Packaging and repair services; • Food courts.

EQUIPPED AREA

The total territory of AJA FEZ comprises 5.3 ha of land and consists of - buildings - 51,630 sq.m. (main building - 5 floors) - production area 12,000 sq.m - service and office area 8,100 sq.m - permanent exposition 2,000 sq.m - auxiliary area 4,200 sq.m (parking, storerooms, safes)

In Addition, On The Adjacent territory: - area for regular exhibitions 5,184 sq.m The Total Area Is Approximately 32,400 sq.m. To implement investment projects you will be offered land plots supplied with a production infrastructure and necessary engineering provision, communications and sufficient supply of energy resources.

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Main Topic

Main Topic Armenia is the only country remaining from 3000 year old maps of Anatolia. It became the world's first country adopted Christianity more than 1700 years ago in 301 AD, and has a large Diaspora all over the world. Armenia lying in the Caucasus region, straddling Asia and Europe, with ancient and rich culture. Armenia is very easy to experience, thanks to very hospitable people. To visit Armenia is to travel back in history and feel the spirit of more than 41 centuries. Experience first hand the «country sheltered by Biblical «Ararat» home of Noah’s Ark; the land where human kind was reborn. Armenia offers a special something for every person.

RENT FOR MANUFACTURERS IN AJA FEZ IS PROJECTED TO BE NOTABLY LOWER COMPARED TO CURRENT WELL KNOWN JEWELRY SPECIAL ZONES Armenia finds herself in Asia, together with entire Transcaucasia. However, according to other, not exactly geographical, divisions, Armenia is located in Europe with greater permanency. Generally Armenian the civilizational self-appraisal considers to Europe because of locating in the vicinity of the geographical borderline of Europe. At the same time, present-day Armenia semiotically manifests its closeness to Asia. For example, the first «Western free market» in Yerevan (on the level of small vendors) was introduced through a typical Asian bazaar structure, or Western consumer goods were introduced in their Eastern disguise. While in Armenia, you can journey into the country, filled with its churches on top of mountains, the beauty of the land’s ancient ruins, its history, culture and religion. The biblical Ararat includes UNESCO world heritage sites, its beautiful natural landscape and its savory national cuisine.

Armenia

UAE

Turkey

Thailand

Yerevan (Armenia)

Dubai

Istanbul

Samut Prakan

AJA FEZ

Dubai Gold & Diamond Park

Kuyumcukent

Gemopolis

Special Zone type

FEZ

FTZ

None

Free Zone

Establishment date

2014

2011

2006

1990

~ 32,400

~ 47,000 (Phase to date)

328,000

270,000

~ 87%

N/A

Location Zone name

Area, sq.m

Area capacity 2012BETWEEN EUROPE - ARMENIA IS Ause, LAND AND ASIA ~ 25% Availability of retail outlets

Yes

Yes

Yes

Yes

Availability of exhibition area

Yes

No (Phase 1 so far) Yes

Yes

120 (by 2015)

~155 (118 producers and 37 retailers)

2,193

130 (from around 26 countries)

20

76

33

15

CIS

GAFTA (Greater Arab Free Trade Area) – 18 countries

19 countries mainly in non-EU area of Europe, Middle East and Northern Africa

ASEAN (Association of Southeast Asian Nations) FTA – 10 countries

Number of companies, 2013 Rent per sq.m (production area), USD/monthly, 2012 Privileged access to regional markets via FTAs

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Yerevan, the capital of Armenia, is a modern, colorful city, situated in the Northeastern part of the Ararat Valley. Yerevan is one of the oldest cities in the world, but at the same time modern. Life today in Yerevan is assimilated with the harmonious fusion of past and present. An integral part of panorama of Yerevan is Biblical Mt. Ararat, symbol of Armenia, just situated out of border.

The Armenian people take great pride in their traditions, culture, religion, arts and crafts, delicious cuisine and sincere hospitality. Yerevan of today offers hundreds of spots of leisure from museums to theaters, an opera house, parks, restaurants with traditional Armenian, Caucasian, European and Chinese cuisines, open cafes, casinos, discos, clubs, jazz restaurants, and other entertainment spots. Most of all, the warmth and friendly manner of the people will make your visit unforgettable. This land of old and new has a gravitational pull to all who visit. ZVARTNOTS AIRPORT representing the main air gate of the Republic of Armenia. Its runway are fully meets the requirements of the international standards. Geographically it is located at the crossroads of Europe and Asia. Just 12 km from the center of Yerevan. Provides ATC to 6 major international air routes passing over Armenia-15000 international flights annually. It works round the clock.

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Yerevan Show

Yerevan Show

H

eld by AJA for the fourth consecutive year in the Armenian capital, Yerevan Show has already become a wellknown and respected exhibition which traditionally attracts the most prominent jewelry companies and professionals. Originally initiated as an exhibition with the participation of Armenian jewelers - mostly members of the Diaspora, Yerevan Show is becoming one of the major regional jewelry exhibitions and gain international status. Today, we can safely assume, our annual show is the most capable means for multilateral cooperation. Becoming a CIBJO member in 2013, AJA not just become an integral part of the global community of jewelry, but also makes a significant contribution to the consolidation of the world jewelry industry. Conferences, held in the framework of the exhibition Yerevan Show - a good platform to analyze the situation and discuss the prospects for development of the jewelry industry. Among Yerevan Show partners is Fiera di Vincenza – the organizer of worldwide famous international jewelry exhibition VICENZAORO. Fiera di Vicenza’s presence at the Yerevan Show follows the signing of a memorandum of understanding with AJA in September 2013.

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Exhibitors, officials, industry experts and visitors from all over the world attend the exhibition. Among the participants of Yerevan Show from year to year increasing the number of well-known brands - winners and participants of famous world exhibitions such as JCK, Bazelworld, Vicenzoro, Hong Kong, Junwex. Yerevan Show 2014 will provide you with many benefits and a great opportunity to promote your product, expand your market and meet buyers from CIS (Russia, Kazakhstan, Ukraine, Belarus, etc), Europe, North America, UAE, India, the Middle East and Gulf countries. AJA will be covering expenses for more than 150 buyers traveling from CIS. On display at the exhibition this year will be jewelry made from precious and semi-precious stones, pearls, ambers, corals and precious metals, as well as other industry related businesses such as watches, costume jewelry, craft-working and packaging tools. With the strong support of the State, as well as cooperation with the world famous company Malca-Amit, great attention is paid to the shipping, insurance and security issues. The exhibition is traditionally held under the high patronage of the President of Armenia, Mr. Serzh Sargsyan.

Dr. Gaetano Cavalieri President of The World Jewellery Confederation (CIBJO)

My congratulations go out to the Armenian Jewellers Association, and to the excellent work that they are doing in promoting their industry internationally, and the jewelry culture in general in their own country. In so many respects Armenia is in an advantageous position. Due to its unique geographical position, Armenia could link Asia with Europe, and this presents serious possibilities. Its location and its peoples’ long tradition in the jewellery industry, both at home and in the very loyal Armenian diaspora, provide it with a tremendous start from which to build. I was delighted to be back in that beautiful country, Armenia, in October 2013, because I feel a special kinship with the Armenian people. Armenia is terrific example of how cooperation and dedication can transform the jewellery sector into a national asset, which will contribute substantially to the health of the economy, creating revenues, jobs and social benefits. Jewellery manufacturing has been an integral part of the Armenian culture and identity for centuries, and today with the support of government and the involvement of Armenian peoples’ from around the world, the entire country will reap its benefit. The creation of the jewelry Free Economic Zone here is not only an economic breakthrough but a great moral responsibility, which AJA is taking over, trying to show the world that this industry has prospects. CIBJO is delighted to be involved in this mission.

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Yerevan Show

Yerevan Show

Minister of diaspora’s address to yerevan show 2013 participants

Hranush Hakobyan Dear Guests, I am pleased to welcome you to Armenia. More and more, our “army” of jewelers grows stronger and organized. This is the third time that AJA has organized a beautiful and unique exhibition, the Yerevan Show. It has brought to Armenia your strength, ability, creative mind, taste, resulting in a new taste, and a new culture with a new approach in the ability to transmit them. Yerevan has become more beautiful, more brilliant with all the luxury jewelry spread across the city. This jewelry event is another important step forward. You will feel and see the Armenian leadership’s encouraging attitude towards your profession. It was no accident that the President of AJA, Mr. Gagik Gevorkyan, was appointed an aide to the President of the Republic of Armenia. This step was taken to help rectify all the issues raised in this sector, bringing solutions in a timely manner, and implementing them correctly from the first attempt. In 2011, the Armenian Government approved the “Export oriented industrial strategy of Armenia”, which is aimed at supporting and promoting the jewelry, diamond cutting, and watchmaking sectors. This sector is one of the 11 industry sectors that the state is targeting. Armenian jewelry has a thousand year history. When the world was casting copper, Armenians were already using gold in jewelry. Armenian craftsmanship included 17 different techniques, many of which were unknown to others. Armenians were the first to bring diamonds to Europe. Our talented ancestors were talented jewelers

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whose creations were later donated from various sultans: the handmade throne of the Russian Czar Alexander I, the world’s largest, most beautiful, and luxurious throne, was made by Armenian jewelers. We have such a long history, and our jewelry is so interesting that it really should be recorded and processed historically. It is also necessary to train specialists who can record the history of jewelry, including in our Armenian universities. I think it is important to pay more attention to design. It is very important to organize PR, performance, and present your best work to the public, via television, newspapers, etc. Armenian jewelry must become a world known brand. We should be able to present the brand to the world. I should mention that Armenian jewelers are professionals, but also patriots, philanthropists, and brilliant, wonderful men. I am very glad to see that you have come together, organized, and united because by uniting, you become more powerful, thus increasing your strengths and abilities. Speaking of Armenians, everyone knows about our brandy in Armenia. I’m delighted to tell you that we can add High-Tech to that list. Armenia is ranked 4th in the world for intellectual capabilities, especially in the High-Tech sector. I believe that with your help, and through you, we will be able to achieve that same for level of prominence jewelry. We will be celebrating the Armenian jewelers, the impact of your knowledge, and capabilities which will transform Armenia into a golden country.

Hranush Hakobyan RA Minister of Diaspora Assumed office on October 1, 2008 Born on April 12, 1954, in Sarukhan village of Gegharkunik province. In 1970, she graduated from N1 school of Gavar with a gold medal. In 1975, she graduated from the Faculty of Applied Mathematics at Yerevan State University. In 1989, she graduated from the Academy of Social Sciences of Moscow with honors. In 1994, she graduated from the Faculty of Law at Yerevan State University with honors. From 1975 to 1984, she lectured at the Faculty of Applied Mathematics at Yerevan State University, while also heading the university’s Youth Communist Organization. From 1978 to 1983, she was deputy secretary and later secretary of the Central Committee of the Leninist Communist Youth Organization. From 1983 to 1985, she was secretary of the Central Committee of the Leninist Communist Youth Organization (LCYO). From 1985 to 1990, she was first secretary of the Central Committee of the Leninist Communist Youth Organization, and was elected member of the bureau of the LCYO Central Committee. From 1986 to 1990, she was Deputy of the Supreme Council of the Armenian Soviet Socialist Republic, member of the presidency of the Supreme Council. From 1990 to 1995, she was elected Deputy of the Supreme Council of the Republic of Armenia, then from 1995 to 1996, Deputy of the National Assembly, and Chairperson of the NA Standing Committee on Social Affairs, Healthcare and Natural Conservation. From 1995 to 1997, she was Vice Chairperson of the Committee on Social Affairs of the Commonwealth of

Independent States Inter-Parliamentary Assembly. From 1996 to 1998, she was appointed RA Minister of Social Security. From 1996 to 2008, she was appointed member and then leader of the Armenian delegation to the international assembly of the Inter-Parliamentary Union and member of the Coordinating Council for Women’s Issues. From 1999 to 2003, she was a member of the NA Standing Committee on International Relations and ViceChairperson of the EU-Armenia Committee. From 2003 to 2008, she was Chairperson of the Standing Committee on Science, Education, Culture and Youth Issues of the National Assembly. In June 2008, she was appointed Chairperson of the State Committee on Relations with the Diaspora at the RA Ministry of Foreign Affairs. Hranush Hakobyan has been RA Minister of Diaspora since October 2008. In 2012, Hranush Hakobyan was reappointed RA Minister of Diaspora. Hranush Hakobyan is author of 6 books and over 40 scientific articles. She is a member of the board of trustees of “Hayastan” All-Armenian Fund and several other funds, co-founder of the Armenian-American Wellness Center, President of the Armenian International Women’s Association, as well as a member of the Councils of Yerevan State University, Yerevan State Medical University and Gavar State University. Hranush Hakobyan has been awarded state and governmental awards, medals and certificates. She lectures at the RA State Management Academy and Gavar State University. She has been recognized as Best Woman of the Year, Best Deputy of the Year, and Best Political Figure of the Year. In 2008, the President of Armenia granted her the ranking of Ambassador Extraordinary and Plenipotentiary.

APRIL 2014 AJA INTERNATIONAL MAGAZINE 21


Yerevan Show

Yerevan Show

Dr. Artak Udumyan Armenian Jewellers Association (AJA) VICE PRESIDENT

Nigel Paxman CEO of Malca-AMit Global Limited

This is my second visit to Armenia, but in exhibition Yerevan Show 2013 and in the conference «The Current State of the Jewelry Industry: Issues and Perspectives» I participate for the first time. I am glad to see success of AJA and Armenian jewelers. Our business scopes are very related. I sincerely wish success to the Armenian jewelers - please be successful! If you are successful and we are successful. I like being in Armenia and every time visiting this country I see positive change here. Fairly well is developed the area of insurance in Armenia - that’s what we do around the world. Especially I like «Zvartnots» airport, it is very beautiful and with a high level of service.

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We have succeeded in making the Yerevan Show a traditional annual event. Since last year its turned into a commercial project. In 2013, the show experienced an increase in participants from both the professional jewelry community as well as the general public. The 125 exhibitors from 23 countries is a three-fold increase compared to the previous year. Yerevan Show 2013 exhibitors included world-famous jewelry and watch companies, jewelers, manufacturers and distributors from: Armenia, Russia, USA, Canada, France, Italy, Spain, Syria, Belgium, Switzerland, Turkey, UAE, Lebanon and Greece. With AJA’s support and state subsidies, over 25 jewelry companies from Armenia were able to showcase their merchandise along side the well-know global brands. AJA had invited and organized the arrival of 150 buyers from Russia, Kazakhstan,

Belarus, Ukraine, UAE, Israel, India, Canada, USA, and France. Prominent figures in the jewelry industry also attended the show: CIBJO President Dr. Gaetano Cavalieri (Italy), MalcaAmit CEO Nigel Paxman (Israel), Fiera Di Vicenza representative Stefania Fin (Italy). Fiera Di Vicenza is the operator of VicenzaOro with whom AJA signed a memorandum of understanding. Yerevan Show is organized with the support of the Ministry of Economy and the Industrial Development Foundation of the Republic of Armenia. In the framework of the Yerevan Show AJA traditionally held the conference with attendance of industry experts, top officials. I am proud to announce that according to its Board decision CIBJO Congress 2016 will be held in Armenia By the way, Armenia is the only country in the world where Jeweler’s Day is celebrated on the last Sunday of October. It worth mentioning that in 2014 for the first time a renovated building on the territory of Jewellery Free Economic Zone (FEZ) will became the scene for Yerevan Show exhibition. Free Economic Zone - another major AJA project in Armenia. This ambitious project, strongly supported by the leadership of the country, will advance Armenia’s jewelry and diamond industry. It will generate a substantial source of revenue from abroad, create employment, provide significant breakthroughs in advancements, and upgrade the status of Armenia to a key jewellery industry player in the international arena.

22 AJA INTERNATIONAL MAGAZINE APRIL 2014


Yerevan Show

Yerevan Show

the remarks of Hagop Baghdadlian at the Yerevan Jewelry Show 2013

W

e are all here today to demonstrate our individually accomplished goals and successes. Secondly, we are all here because we believe in the Armenian Jeweler’s Association’s mission to bring together Armenian jewelers from all over the world to produce something greater than ourselves. And finally, we are all here today because we collectively believe that Yerevan has the potential to be the next center of the jewelry industry, alongside London, Moscow, Paris, New York, Bangkok and Hong Kong. Some of you may be thinking to yourselves, why Yerevan? I am here today to tell you that we are stronger than we may believe and more powerful than you may imagine. We Armenians have a long-standing history of being some of the most creative people, including our unmatched skills in designing and creating handcrafted jewelry as well as diamond cutting. As evidenced by Armenian jewelers, present and thriving in all four corners of the world, from New York to Moscow, Buenos Aires to Bangkok, we must capitalize on our outstanding reputation. I would also like to talk about the importance of the very industry we make our living from. What is a diamond? A diamond is simply carbon. With the right temperature, pressure and the availability of carbon, the result can either be a diamond or a piece of coal. Diamonds are the hardest rock known to man, with it being a number 10 on the Moh’s hardness scale; it can withstand scratching from any rock, except from another diamond, as well as from the hands of an Armenian diamond cutter. Diamonds are the only commodity in the world that represents the greatest worth in the smallest volume. And at any given point, a diamond can be cashed, in Mumbai, or Hong Kong, in New York or Paris. It is a global commodity that has equal value within +/-5 to 10%, and I predict the value of diamonds will increase in the coming future. For example, my company sold a 218 cts CU D FL for $36 million in 2007, five years later, in 2013, Sotheby’s in Hong Kong sold a 118 cts D IF OV for 30.4 million dollars. Based on today’s prices the 218 cts CU D FL I sold is presently worth 75 million dollars. According to statistics gathered by Euromonitor International, a market research firm, which keeps track of jewelry sales in 32 countries, in 2012 fine jewelry and watch sales, totaled to an estimated $275.4 billion. Of that $275.4 billion, 87% were fine jewelry sales. According to the U.S. Department of Commerce, fine jewelry and watch sales were an estimated $71.3 billion in 2012, a record for the U.S. market. It is the first time in

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history that the jewelry and watch industry in the United States produced sales greater than $70 billion, and as a result, USA is presently the number one jewelry consumer in the world. However, nothing lasts forever, except for a diamond of course. USA is not always going to be the number one jewelry consumer in the world. As the market moves towards the east, now is our opportunity to make Armenia a diamond and jewelry center. As a single body, we must work together to bring our successes to enrich not just ourselves but our motherland. In conclusion, Yerevan has the potential to be one of the centers of the jewelry industry not only because of the uniqueness of the Armenian jewelers, but also because of the unique location of Armenia. We are standing right now in one of the most strategic locations in the world, as of today, – in between Europe and Asia, Yerevan has the potential to be the jewelry industry capital of Eurasia. Thank you.

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Yerevan Show

Yerevan Show

Itzhak Bendor Managing director of THE Israel Jewelry Manufacturers aSSOCIATION (IJMA)

I would like to thank Gagik Gevorkyan, Artak Udumyan, and all the AJA staff for your efficient organization and warm hospitality. Yerevan Show 2013 was an exciting event, and although I have been to many international jewelry shows, I had not experienced one like this before. From a business aspect, we will do our utmost to explore business opportunities to enhance business cooperation between Armenian and Israeli jewelers. I am familiar with the work of many jewelry organizations and I would like to emphasize that AJA is one of the highest quality ones. Over the past three years, AJA has managed to turn the show into an international event; attended by companies from 23 countries. Among them was an Israeli company, headed by Tsolag Momjian, who is well known in Israel, and highly respected. I am sure that many more jewelry companies and buyers from Israel will come to Armenia this year to participate in Yerevan Show 2014. Gregory Zbar General Manager BRINKS Russia and CIS

I admire this beautiful country! Every time when an opportunity presents itself, I try to visit my old Armenian friends. It was my first time participating in Yerevan Show 2013. I was impressed by the scope of the exhibition, and the number of the participants. AJA has invested a lot in the promoting the show, and moreover, has introduced a new challenging project: the Free Economic Zone. I see this project similar to Las Vegas that arose like an oasis in the desert. Â I am sure that thanks to its ambitious projects, AJA will attract the attention from major industry players, and I am happy that Brinks is involved in establishing and developing the process in Armenia. My sincere congratulations, and wishes of prosperity to the Armenian Jewellers Association! 26 AJA INTERNATIONAL MAGAZINE APRIL 2014

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Yerevan Show

Sergey Sahakyan, The Chairman of AJA-Armenia This was my 3rd time exhibiting at Yerevan Show and I would like to mention the noticeable growth; both quantitative and qualitative. The geography of participants has expanded and the dynamics have evolved; a positive signal in terms

Daria Baranova, Managing director of Kaletta

2013 and we are in Yerevan for the first time as well. We really enjoyed the participation in Yerevan Show - 2013 - thanks to the organizers! This exhibition is different from others because of its unique atmosphere. We are stunned by the attitude of people - organizers, participants and Yerevan city, which steal a way into heart by their good feeling, hospitality. We were very pleased and with the business point of view and, of course, will participate in the Yerevan Show next October. We look forward to hear news from jewelry Free Economic Zone, in order to open our company there.

Leon SHANT Haytayan, President of Haytayan Jewelers Inc. It was a great pleasure to attend Yerevan Show 2013. I would like to applaud AJA President Gagik Gevorkyan, its courageous staff, who put out an outstanding effort to make the show a success. It was a very emotional trip and a joyous one. I was particularly impressed by the quality of the new AJA magazine. My compliments and congratulations to a job well done and we cannot wait until we receive it on the West Coast to be able to pass it on to the jewelry community. My compliments to Lernik Gasparyan for doing a great security job day in and day out. The free-zone building was phenomenal and impressive, I can envision how you will transform it into a awesome building. May God reward all your visions and efforts you put out for AJA.

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Our company is the first time took part in the exhibition Yerevan Show

of business transactions. Yerevan Show has an inspiring effect on me, as the competitive market stimulates me to work hard for results during the rest of the year. I am truly confident that the next exhibition, which is set to take place from Octover 23-26, 2014, will extend the boundaries for success even further. It is important to mention that Yerevan Show does not only promote business for its participants, but simultaneously also promotes AJA, which in turn attracts interest for new potential members. I would certainly like to applaud AJA President Mr. Gagik Gevorkyan on the success of Yerevan Show, because this trade show began after he became the president of the Association. I wish AJA further success, particularly in the creation of the jewelry Free Economic Zone in Armenia.

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Yerevan Show

30 AJA INTERNATIONAL MAGAZINE APRIL 2014

Yerevan Show

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Yerevan Show

Yerevan Show

see you in yerevan OCTOBER 23-26

GOLD

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Jewellery

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Faces

Faces

MATTEO MARZOTTO MADE IN ITALY

«I know the pride of the Armenian people, they have always been fighting to survive, to keep their faith, they history and roots. It is very fascinating to me. As a Catholic Christian, I understand very well what happened 100 years ago in that region, and what fate was waiting then for Armenians...»

36 AJA INTERNATIONAL MAGAZINE APRIL 2014

M

atteo Marzotto is a prominent international entrepreneur whose name is synonymous with “Made in Italy”, and connected to the fashion and textile industry, tourism, traditions, arts, style, charity, and now, jewelry. Matteo Marzotto, 47, was named President of the biggest operator of the Italian fairs, including the world famous jewelry show VicenzaOro, on December 23, 2013, 65 years after his grandfather Gaetano Marzotto – one of the founders of Fiera di Vicenza – became the first Chairman of the company. In June 2013, he was also appointed President of Fondazione CUOA, one of Italy's most important business schools. As one of the founders, he has been serving as President of the non-profit organization Associazione Progetto Marzotto since October 2012, as well as Vice President of the Cystic Fibrosis Foundation. He has been the President of the Mittelmoda Fashion Awards since September 2008. As an entrepreneur, Marzotto acquired and subsequently relaunched the haute couture VIONNET fashion house in January 2009, serving as its President till January 2013. Prior to that, he had worked for 15 years in his family's group of companies, gaining extensive experience along the entire textile and clothing distribution chains. From 2003 to 2008, he served as Chief Operations Officer first, and then as President of VALENTINO S.p.A. In public service, Mr. Marzotto served as President and Commissioner of ENIT, Italy's National Agency for Tourism, from August 2008 to December 2011. He was one the founding members of the Cystic Fibrosis Foundation in January 1997, and is a board member of numerous organizations, including Morellato & Sector S.p.A, and Brunello Cucinelli S.p.A. Marzotto has a great interest in sports. He participated in the Paris – Dakar car race in 2002, teaming with Paolo Barilla. In 2009, he competed in a motorcycle race as part of the Italian league. At 43, Marzotto recorded his life story in the autobiographical book “Volare Alto” (“Flying High”). Matteo Marzotto is the stylish scion of the huge Italian textile and fashion dynasty. The Marzotto family name implies a great Italian textile empire, a leader in its sector for excellent fabrics and weaves, which it has been producing since 1836. The family has deep roots in Italy and with the Italian nation, and is proud of being a standard-bearer of the Made in Italy label throughout the world.

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Faces

Faces

An OPEN CONVERSATION with MATTEO MARZOTTO, NEW PRESIDENT OF Fiera di Vicenza Mr. Marzotto, congratulations on your election as President of Fiera di Vicenza’s. How do you feel in this new position? Thank you very much. It is a new job but I find it quite consistent with my history of working in the “Made in Italy Lifestyle” pipeline. I spent all my life in the textile and fashion industry, I also served as President and Commissioner of ENIT, Italy’s National Agency for Tourism, established to promote Italy as a tourist destination, a worldwide excellence. And now I’m here in Fiera di Vicenza, the International capital for gold and jewelry, without a doubt a worldwide excellence. There are lots of things to learn in a little time, but the fundamentals are very similar to fashion industry. Both offer their best products to attract customers. The difference is that Fiera di Vicenza provides services, not products, and we are proud to offer services at the world’s highest level. I think I’m fulfilling a sense of history and heritage being President of Fiera di Vicenza: It was founded by my grandfather Gaetano Jr. in 1948 and he was the first Chairman. Fiera di Vicenza is a public company: 94% is public and 6 % belongs to the Municipality, the Vicenza Chamber of Commerce and other business networks. Fiera di Vicenza is well known because of VicenzaOro, but Fiera di Vicenza provides so much more besides jewelry, doesn’t it? Fiera di Vicenza is a Trade Fair specialist that organizes more than 15 trade fairs in Italy and exports its trade-fair format abroad. Gold and jewelry are the most prominent business for Fiera di Vicenza at the moment but we must not forget that as a Company we are investing in other very important fields. The Hunting and Fishing Trade Fair, for example has already become a long-standing tradition in Italy’s hunting&fishing sector, (and is among the top most important European shows of its category).

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The Handicraft Show, the handmade products Exhibit – collage, decoupage, etc. and gathers a wide range of people interested in this field : usually the public cues for hours to visit every single stand. Fiera di Vicenza is among the European leaders for accessible tourism fairs that with its Gitando. All Show encompasses of all types of tourism: accessible tourism for any kind of disability, for elderly or parents with kids up to 5 years old. I believe it is important helping people maintaining their freedom to travel according to the Human rights principles of the United Nations. VicenzaOro Winter 2014 was the first show since your election to President of Fiera di Vicenza. In your opinion, how was it? The last VICENZAORO Winter Show was excellent. That’s why I said I was fortunate. There was good energy, we saw had a 6% increase of international buyers, we had a good amount of international exhibitors and the presence of 11 new countries that came to the Show for the first time. In this time of internal economic crisis ITALY is exerting more effort exporting to foreign countries. Vicenza is the best place, with a strong platform for cooperation. Fiera di Vicenza is an international provider of services, and it is quite good. We now have a kosher restaurant, along with Chinese and Indian as well. We provided different services. During the past VICENZAORO show, we hosted several conferences at the same time with the potential to hold two conferences with over 600 participants each without interfering with the fair. At VICENZAORO Winter we launched a school for craftsmanship in the gold jewelry pipeline – from design to jewelry manufacturing. Financed by the Government of the Region, this program aims at forming young people to become a high class craftsman. We began with 42 students with an increasingly number every year.

This seminar was very interesting, as it explained the international movement against blood gold and diamonds. Never forgetting that Fiera di Vicenza is the only world’s Fair recognized by the UN, contributing directly to that United Nations-supported programme that aims to instil responsible business, social and environmental practices in the jewellery industry What other challenges and issues do you see in today’s jewelry world? Some people think that China and Chinese jewelry are a challenge for world industry. For the case of spreading Chinese jewelry, I think Italy should focus on its strong traditions of high quality and techniques. With our top craftsmanship and creativity we can oppose to Chinese competition. Italy is a small Country, but it is a big nation for creativity, design and innovation, with very old roots, ancient approaches… What can you tell us about the policy of internationalization of Fiera di Vicenza? How do you build interaction with other international exhibitions? Where is the line between partnership and competition? It is very important to have good partners. Most of the time the market is big enough to fit everyone. What

matters is to be the best. There is always competition, but this is good, it is natural. Competition is the driving force to achieve a better quality and better conditions for the customers. Only Last year Fiera di Vicenza brought more than 700 Italian companies to Mumbai, to San Paulo, Hong Kong, Las Vegas. Coming back to our Headquarters, we have a new state-of-the-art pavilion that can seat 6000 people. A Memorandum of Understanding was signed between AJA and Fiera di Vicenza six months ago. How would you describe a practical implementation of this agreement? We have a good platform to cooperate, either here in Vicenza or in Yerevan. Vicenza can be a very interesting business platform for Armenian companies that aim to be well integrated in this business. The point is to share new ideas. When you have ideas – you have no limits for implementation. During the opening ceremony of Yerevan Show 2013, the Armenian President, Mr. Serzh Sargsyan showed great interest in “Trendbook Forecast 2015+”, which was presented by Stefania Finn at the Fiera di Vicenza. What is your personal forecast for trends and current developments in the jewelry industry?

The seminar during the last VicenzaOro was focused on the problem of conflict minerals…

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Golden roots

Faces

Fiera di Vicenza is interesting not because of its dimensions, which it is not a point for us, but because it is the place for proposing trends. Besides Trendbook with the latest trends on the market, we are also publishing VIORO, a magazine which is the reference for the jewellery industry. I think jewelry should be better advertised and not only in the traditional ways through. We should combine jewelry with fashion, providing our customers with the information of where the industry is going and what are the trends.

Mr. Marzotto, have you ever visited Armenia? Not yet. But I definitely will. Interviewed by Lusik Gukasyan

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What comes to mind when you hear “Armenia�? I have met some Armenians during my life. I have

Armenian friends. I know the dramatic and tragic history of your nation. I know the pride of the Armenian people, they have always been fighting to survive, to keep their faith, their history and roots. It is very fascinating to me. As a Catholic Christian, I understand very well what happened 100 years ago in that region, and what fate was awaiting then for Armenians. Armenia is not just a part of the area, like sometimes when we speak about a country; we imagine just a territory, a place on the map. Armenia is different, I was taught that in Italian school.

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Armenian Heritage

Armenian Heritage

Armenian Heritage in the British museum Starting with the previous issue, we began to publish stories about Armenian cultural artifacts, which are either on display or in storage famous museums around the world. In the last issue, we published an article about the Armenian exposition in the largest Museum of Russia - the Hermitage. This article in this issue is dedicated to the world famous British Museum (London). Founded in 1753, it is one of the largest historical and archaeological museums in the world, and has about 8 million artifacts. Its permanent collection is one of the most complete in the world, and covers the history of mankind from origin to present time. Naturally, a museum of this magnitude wouldn’t be able to ignore the ancient culture of the Armenian people, which is reflected in the small but interesting items collection associated with the artistic tradition of the ancient country.

J

ust as parts of the historic Armenian lands are dispersed among many states in the Caucasus and the Middle East, the Armenian collection at the British Museum is scattered across multiple halls, belonging to different countries and cultures, which once again remind us of the difficult destiny of the Armenian people. While one may challenge the ownership of these or other works belonging to the cultural heritage of modern Armenia, it is impossible to deny their influence on the formation of a unique artistic tradition from the country of Hayk. Perhaps the most famous of these exhibits is the bronze head of a goddess, which probably belonged to a statue of the naked Aphrodite. It was also suggested that this fragment of the Iranian sculpture of the goddess of love and fertility, Anahit, was revered in Armenia and later became identified with the Greek goddesses, Aphrodite and Athena. The exhibit is found in hall 22, devoted to Alexander the Great and the Hellenistic era. The statue was made around I century B.C., and was found around 1872 A.D. by a peasant in the territory of modern Turkey, on the site of the ancient city of Satala (now Sadak). He had been ploughing his land when his grub axe came upon the head of the goddess statue. A bronze hand was lying nearby. The head was sent to Constantinople (now Istanbul), and then to Italy to the merchant Alessandro Castellani, who eventually sold it to the British Museum. The hand was donated to the Museum a few years later. Although there were rumors about the discovery of the whole statue, the goddess’ torso was never found. Despite the fact that the goddess’ head became damaged from the grub axe, her face is in good shape. Originally, the eyes were encrusted with precious stones or glass paste, and her lips were probably covered with a layer of copper. Judging by the size of the goddess’ head, it is a part of a whole statue, which would have been used in religious activities. Despite excavations conducted in Satala in 1874 by Sir Alfred Biliotti, the British Vice-Consul in Trabzon, 42 AJA INTERNATIONAL MAGAZINE APRIL 2014

a temple was never detected. Currently, this exhibit has stirred great interest in Armenia. The authorities stated their intention to return Anahit’s head home, but Armenian scientists, fine art experts, and historians first have to prove to their western colleagues that the statue belongs to Armenian culture. Not all significant exhibits connected with Armenia are included in the permanent museum’s exposition, such as the fragment of basalt frieze from the temple in Garni depicting a lion’s head on high relief. It was found in the field of the destroyed temple in Garni in XIX century by the captain of the Royal Navy and traveler, John Buchan Telfer, who willed it to the British Museum. This item was shown in an exhibition entitled “Treasures from the Ark: 1700 years of Armenian Christian Art”, which was held in the British Library in 2001. A khachkar from 1225 was found in the cemetery of the ancient Armenian village of Noraduz. A beautifully preserved khachkar from 1225 A.D., found in the cemetery of the ancient Armenian village of Noraduz, was presented by Catholicos of all Armenians Vazgen I to the British Museum in 1977. Among the exhibits, undoubtedly of Armenian origin, are the jugs of wine, discovered in the village of Karmir-blur (“Red hill”) on the outskirts of Yerevan. Historians reference them to the culture of Urartu, and date them back to the VII century B.C. The red round jugs were typical in the Urartian settlements and sometimes, very meticulously worked items can be found among them. They were mostly used to extract wine residues from larger pots. In 1960, the jugs were presented to the British Museum by Boris Piotrovsky, the outstanding Soviet archaeologist and member of the Academy of Sciences of the Armenian Soviet Union Republic. Interestingly, the jugs from Karmir-Blura are on display in hall 54, originally titled “Ancient Turkey”, but subsequently changed to “Anatolia and Urartu 7000-300 B.C.” after Armenian complaints. Most of the items pertain to the art of Urartu, the state which existed in southwest Asia in IX - VI centuries BC, and covered the Armenian highland (the territory of modern-day

Armenia and Eastern Turkey and Northern Iran) during the period of its power. The hypothesis that the Armenian art tradition succeeded Urartian culture is not popular among western scientists, but the opposite view is held in Armenia. Indeed, a lot of similar motifs can be seen in the art of Urartu and Armenia, therefore we consider the story about the Urartian heritage in the British Museum as appropriate. The elements of furniture decoration make up the largest part of the Urartian collection of the British Museum. In ancient times, interior items were mostly made of wood and more expensive materials, such as bronze and ivory, which were used for decoration. The main motifs of furniture in Urartian art tradition are semi-mythical animals: winged bulls, lions, and griffins. The throne is decorated with a bronze figure of a winged bull with a human torso and crossed arms, which most likely supported an arm-pad or a seat. The figure is missing its face and horns, which presumably were made of ivory, and the cavities on its wings were once encrusted with precious stones. In Urartian culture, images of lions are often found in furniture’s decorative elements: bronze lion’s leg, fingers joints, and claws, which were most likely encrusted with precious stones, served as legs for tables or beds. However, not only the bronze details of furniture and decorative elements made of ivory have survived: the figure of a demon with a Griffin’s head, which was presumably the throne decoration. Demons with Griffin’s head were considered divine patrons, and intended to protect the one who sat on the throne. The Urartu heritage in the British Museum also displays items of military gear. They were not intended to protect

the soldiers, as one would think, but to serve as objects of devotion, and stored in temples. For example, one of the shields found during excavations in modern Turkey was intended for the main temple of the Urartu deity Khaldi, where there was a cult of weapons. The soldier's curved helmet of conic form, found in the North-West of Iran, also served as a worship object. And of course, the collection associated with the state of the Urartians, would not be complete without cult’s objects. One striking example of such an exhibit is a figure of a deity in a headdress with horns. It is believed that the Urartians adopted many traditions from the peoples of Mesopotamia: Mesopotamian gods were usually portrayed in horned hats, and over time they also became a sign of Urartian deities, testified by this figurine. In our opinion, this most striking part of the Armenian heritage of the British Museum can tell a lot about the culture of Hayk’s country. Unique in its content, it absorbed both Western and Eastern art traditions. The elements of Hellenism are reflected in the famous temple in Garni, and animalistic motifs inherited from the culture of Urartu can be seen in any Armenian Church. Although many of the exhibits of the Armenian collection of the British Museum are attributed to different epochs and cultures (from Hellenism to the art of ancient Turkey and Iran), most importantly, they reflect traditions preserved in modern Armenian culture, and they occupy a special place in world cultural heritage. We thank Hannu Boulton, head of press service and marketing Department of the British Museum, the newspaper Sobesednik for their help in preparing this article. All pictures belong to the British Museum (© Trustees of the British Museum).

APRIL 2014 AJA INTERNATIONAL MAGAZINE 43


Armenian Heritage

Armenian Heritage

IVORY FIGURE OF A GRIFFIN-HEADED DEMON

Urartian, 8th-7th century BC From Toprakkale (ancient Rusahinili), eastern Anatolia (modern Turkey) Decoration from a throne Ivory carvings were widely used to decorate important pieces of furniture in antiquity. This very fine example may have been part of a throne.

Griffin-headed demons were protective deities, and would therefore have been appropriate as giving divine protection to the throne's occupant. While similar creatures are depicted on Assyrian wall reliefs at Nimrud, this carving comes from Toprakkale (ancient Rusahinili) in Urartu. This fortified citadel site had within it a major temple of the god Haldi. Excavations were carried out there in 1880 on behalf of The British Museum. A rich collection of objects was found, many in a distinctive local style. It was not clear whether the ivories were locally made copies of Syrian or Assyrian ivories, or were actually imports. Local production of ivories does, though, seem indicated by the fact that elephant tusks are listed by the Assyrians as booty from Urartian temples and palaces. Furthermore, the closest parallels were excavated at the Urartian site of Altintepe. The kingdom of Urartu, centred on Lake Van, was the northern neighbour and rival of the Assyrian Empire from the ninth to the seventh centuries BC. Elephant tusks are listed by the Assyrians as booty from Urartian temples and palaces. Urartu had disappeared before 600 BC, possibly destroyed by raids of horse-borne warriors, known to the Greeks as Scythians, associated with the Medes from western Iran. The name survives, however, in that of its highest mountain, Ararat. D. Frankel, The ancient kingdom of Urartu (London, The British Museum Press, 1979) D. Collon, Ancient Near Eastern art (London, The British Museum Press, 1995) R.D. Barnett, 'The excavations of the British Museum at Toprak Kale near Van', Iraq-6, 12 (1950)

BRONZE HELMET Urartian, 9th-8th century BC Probably from north-west Iran This is a typical soldier's helmet from Urartu, the northern neighbour and rival of the Assyrian empire during the ninth to the seventh centuries BC. The shape was designed to deflect arrows and the holes around the bottom served to attach a leather or felt lining. From the late ninth century BC onwards Urartian helmets, whether actual examples or those depicted worn by Urartian soldiers on bronze reliefs, were conical, as were those used during the same period by Syrians, Assyrians and Babylonians. In the course of the eighth century there was a tendency towards more curved forms. Urartian conical helmets varied in their material, decoration and inscriptions. The commonest and cheapest type must have been iron helmets, which were formed from two identical halves riveted together. On Assyrian reliefs, Urartian soldiers' helmets are frequently decorated with horizontal lines and crook shapes over the forehead. This example is bronze, and has crook-shaped snakes ending in bull's heads. They frame the Urartian version of the Egyptian sun-disc. The material and the elaborate decoration may indicate that this helmet was a votive object, left in a temple as an act of piety. The dedication of weapons and armour is well known from ancient Urartu: a bronze shield from the Temple of Haldi at Toprakkale (ancient Rusahinili) is also in the British Museum. D. Frankel, The ancient kingdom of Urartu (London, The British Museum Press, 1979) R. Merhav, Urartu: a metalworking centre (Jerusalem, Israel Museum, 1991)

44 AJA INTERNATIONAL MAGAZINE APRIL 2014

BRONZE HEAD OF A GODDESS, PROBABLY APHRODITE

Hellenistic Greek, 1st century BC Found at the ancient city of Satala, modern Sadak, northeastern Turkey In about 1872 a man digging his field on the site of ancient

Satala struck with his pick-axe against this head. A bronze hand also lay nearby. The head made its way via Constantinople (modern Istanbul) and Italy to the dealer Alessandro Castellani, who eventually sold it to The British Museum. The hand was presented to the Museum a few years later. Despite rumours that the whole statue had previously been found, the body has never come to light. Although there is pick-axe damage to the top of the head, the face is well preserved. The eyes were originally inlaid with either precious stones or a glass paste, and the lips perhaps coated with a copper veneer. The statue has been identified as a nude Aphrodite, her left hand pulling drapery from a support at her side, like the famous statue of Aphrodite at Knidos by the fourth-century sculptor Praxiteles. It has also been suggested that the statue represents the Iranian goddess Anahita, who was later assimilated with the Greek goddesses Aphrodite and Athena. The size of the head suggests that it came from a cult statue, though excavations made at Satala in 1874 by Sir Alfred Biliotti, the British vice-consul at Trebizond, failed to discover a temple there. The statue may date to the reign of Tigranes the Great, king of Armenia (97-56 BC), whose rule saw prosperity throughout the region. The thin-walled casting of the bronze head suggests a late Hellenistic date. H.B. Walters, Catalogue of bronzes, Greek, R (London, 1899) C.C. Mattusch, Classical bronzes (Cornell University Press, 1996)

BRONZE FIGURE OF A GOD Urartian, 8th-7th century BC From Urmia, north-western Iran, or Van, modern Turkey A deity in a horned head-dress The Urartians adopted many of the traditions of Mesopotamia, including cuneiform writing. Mesopotamian gods were usually depicted wearing horned headdresses and this also became a feature of representations of Urartian deities, as this figure demonstrates. The identity of this god is not known but Urartian texts show that Haldi was the principal deity of the Urartian pantheon. He is always named first in the trinity with Teisheba (storm god) and Shiwini (sun god). He was the god of the sky, the land, the state, herds and war. The kingdom of Urartu had disappeared before 600 BC, possibly destroyed by raids of horse-borne warriors, known to the Greeks as Scythians, associated with the Medes from western Iran. The name survives, however, in that of its highest mountain, Ararat. D. Frankel, The ancient kingdom of Urartu (London, The British Museum Press, 1979) R. Merhav, Urartu: a metalworking centre (Jerusalem, Israel Museum, 1991) R.D. Barnett, 'The excavations of the British Museum at Toprak Kale near Van', Iraq-6, 12 (1950)

APRIL 2014 AJA INTERNATIONAL MAGAZINE 45


Armenian Heritage

Armenian Heritage

WINGED BULL WITH HUMAN TORSO AND HEAD AND CLASPED HANDS

Urartian, around 700 BC From Toprakkale (ancient Rusahinili), eastern Anatolia (modern Turkey) A fine bronze from a throne This bronze figure of a winged bull with a human torso and head was part of the decoration of a throne. It would have supported the arm-rest or seat. It comes from Toprakkale (ancient

Rusahinili) in Urartu, the site of a major temple of the god Haldi, and was acquired in 1877. The missing face and horns were probably made of ivory, and the sockets in the wings once contained inlay, while the bronze itself was covered in gold leaf. Only the front of the wing was inlaid: presumably the back was not meant to be visible. The original effect must have been both rich and colourful, which seems to have been typical of important ancient furniture. Urartu, centred on Lake Van, was the northern neighbour and rival of the Assyrian empire during the ninth to seventh centuries BC. It had disappeared before 600 BC, possibly destroyed by raids of horse-borne warriors known to the Greeks as Scythians, associated with the Medes from western Iran. The name survives, however, in that of its highest mountain, Ararat. We know from Assyrian documents that the peoples of eastern Anatolia exploited the rich copper deposits found there. In the first half of the first millennium BC the Urartian kingdom had the most highly developed bronze production of Anatolia and the ancient Near East. The tin required for the production of bronze was probably imported from Afghanistan. D. Frankel, The ancient kingdom of Urartu (London, The British Museum Press, 1979) D. Collon, Ancient Near Eastern art (London, The British Museum Press, 1995) R. Merhav, Urartu: a metalworking centre (Jerusalem, Israel Museum, 1991) M. Roaf, Cultural atlas of Mesopotamia (New York, 1990) R.D. Barnett, ‘The excavations of the British Museum at Toprak Kale near Van’, Iraq-6, 12 (1950)

BRONZE FURNITURE FITTING IN THE SHAPE OF A LION

Urartian, around 700 BC From Toprakkale (ancient Rusahinili), eastern Anatolia (modern Turkey) A stylized lion with a highly decorated surface Although now twisted out of shape, this piece of cast bronze in the shape of a lion with bull’s hooves was probably part of a throne. The grinning lion is very stylized: his forehead and nose are ornamented and he has a pattern of close curls on his chest. The piece was originally inlaid and the bronze was gilded, so the effect must have been rich and colourful. It comes from Toprakkale (ancient Rusahinili) in Urartu, the site of a major temple of the god Haldi.

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Ancient furniture was usually made of wood, but important pieces were decorated with such materials as ivory or metals. The kingdom of Urartu was the centre of one of the most sophisticated bronze production industries of the whole of Anatolia and the Near East in the first part of the first millennium BC, and the site of Toprakkale has produced some of the best evidence for elaborate bronze furniture fittings. Survival on this scale is rare in the archaeological record because the raw material was valuable, and finished objects could be melted down for the bronze to be re-used. Urartu, centred on Lake Van, was the northern neighbour and rival of the Assyrian Empire from the ninth to the

seventh centuries BC. It had disappeared before 600 BC, possibly destroyed by raids of horse-borne warriors known to the Greeks as Scythians, associated with the Medes from western Iran. The name survives, however, in that of its highest mountain, Ararat. D. Frankel, The ancient kingdom of Urartu (London, The British Museum Press, 1979) D. Collon, Ancient Near Eastern art (London, The British Museum Press, 1995) R. Merhav, Urartu: a metalworking centre (Jerusalem, Israel Museum, 1991) R.D. Barnett, ‘The excavations of the British Museum at Toprak Kale near Van’, Iraq-6, 12 (1950)

DECORATED BRONZE SHIELD Urartian, around 650 BC From Toprakkale (ancient Rusahinili), eastern Anatolia (modern Turkey) This bronze shield comes from Toprakkale (ancient Rusahinili) in Urartu, the site of a major temple of the god Haldi. A number of such shields have been discovered at Urartian sites. Some are plain and others, like this, are lavishly decorated with lions and bulls. They must have been dedicated in the Haldi temple, where a cult of weapons existed. There are three handles on the inside which were probably used for hanging the shield. It is designed to be viewed in one particular way, as the concentric friezes are laid out with the bulls and lions changing direction so that when the shield is upright no animal is upside down. Texts show that Haldi was the principal deity of the Urartian pantheon, always named first in the trinity

with Teisheba (storm god) and Shiwini (sun god). The Urartian cuneiform inscription records the name of the dedicator. It can be reconstructed from other shields as ‘[Rusa, son of Erime]na, mighty king, great king, lord of the city of Tushpa’ (now Van). Urartu, centred on Lake Van, was the northern neighbour and rival of the Assyrian Empire during the ninth to seventh centuries BC. It had disappeared before 600 BC, possibly destroyed by raids of horse-borne warriors known to the Greeks as Scythians, associated with the Medes from western Iran. The name survives, however, in that of its highest mountain, Ararat. D. Frankel, The ancient kingdom of Urartu (London, The British Museum Press, 1979) R. Merhav, Urartu: a metalworking centre (Jerusalem, Israel Museum, 1991) R.D. Barnett, ‘The excavations of the British Museum at Toprak Kale near Van’, Iraq-6, 12 (1950)

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Armenian Heritage

Armenian Heritage

BRONZE MODEL OF A CITY WALL

Urartian, late 8th century BC From Toprakkale (ancient Rusahinili), eastern Turkey Fortifications shown on a small scale This bronze model of a city wall comes from Toprakkale (ancient Rusahinili) in Urartu, the site of a major temple of the god Haldi. Urartian texts show that Haldi was the principal deity of the Urartian pantheon, always named first in the trinity with Teisheba (storm god) and Shiwini (sun god).The function of the model is not known. It

could have been dedicated in the temple to ensure the protection of the city, or presented by a vassal city (as depicted on some Assyrian relief sculpture). Equally it could have been part of a wheeled hearth similar to one found at Nimrud in Assyria. Urartu, centred on Lake Van, was the northern neighbour and rival of the Assyrian empire during the ninth to the seventh centuries BC and adopted many of the artistic traditions of Mesopotamia. The architectural details on the model provide information about fortifications of this time. They include a double-winged gate that arches at the top; rectangular windows; stepped battlements; and a high, narrow tower. The lower part of the walls and the window frames would have been made of beautifully cut and fitted stone blocks. The upper part of the wall would have been of mud brick and the parapets rested on jutting beams. The kingdom of Urartu had disappeared before 600 BC, possibly destroyed by raids of horse-borne warriors known to the Greeks as Scythians, associated with the Medes from western Iran. The name survives, however, in that of its highest mountain, Ararat. D. Frankel, The ancient kingdom of Urartu (London, The British Museum Press, 1979) M. Caygill, The British Museum A-Z compani (London, The British Museum Press, 1999) R. Merhav, Urartu: a metalworking centre (Jerusalem, Israel Museum, 1991) M. Roaf, Cultural atlas of Mesopotamia (New York, 1990) R.D. Barnett, ‘The excavations of the British Museum at Toprak Kale near Van’, Iraq-6, 12 (1950)

BRONZE LION’S FOOT Urartian, late 8th century BC From Toprakkale (ancient Rusahinili), eastern Anatolia (modern Turkey) From a piece of furniture This large bronze foot (one of two discovered) comes from Toprakkale (ancient Rusahinili) in Urartu, the site of a major temple of the god Haldi. It was probably fitted onto the leg of a table or a bed. The knuckles and claws would have been inlaid, as would the ornament on the front. This consists of two Anatolian sun symbols above an Urartian version of the Egyptian winged sun disc. In antiquity furniture was primarily of wood. Costlier materials like bronze were used mainly for decoration. Representations of decorated furniture can be seen on Urartian engravings and also on contemporary Assyrian reliefs.The kingdom of Urartu was particularly known for fine metal-work, and Urartian bronzes were highly prized by the Assyrians, who list quantities of bronze objects amongst captured Urartian booty. This foot was made using the lost-wax casting method. Urartu, centred on Lake Van, was the northern neighbour and rival of the Assyrian Empire from the ninth to the seventh centuries BC but it had disappeared before 600 BC. It was possibly destroyed by raids of horse-borne warriors, known to the Greeks as Scythians, associated with the Medes from western Iran. The name survives, however, in that of its highest mountain, Ararat. R. Merhav, Urartu: a metalworking centre (Jerusalem, Israel Museum, 1991) R.D. Barnett, ‘The excavations of the British Museum at Toprak Kale near Van’, Iraq-6, 12 (1950)

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RED BURNISHED WINE JUG Urartian, 7th century BC From Karmir Blur, Republic of Armenia These round, red-burnished jugs are typical of Urartian sites and are sometimes of very fine quality. They were used for removing small quantities of wine from huge storage jars. A store-room next to the wine cellars at Karmir Blur contained 1036 wine jugs of this type. The Urartian name for Karmir Blur (‘Red Hill’) was Teishebaini, ‘the city of Teisheba’ (the god of storms). A fortress was built here by King Rusa II (about 685-645 BC). This has been excavated, but only small areas of the partially-fortified residential town have been explored. It seems the houses were clustered together in groups, with up to five houses in each, and the groups were arranged along eleven streets. The citadel itself is thought to have been used by an administrator, perhaps a governor, and his court. It consisted of 150 rooms and projecting towers built over a storeroom on a platform of stone rubble. The palace ceremonial quarters were on an upper floor, located above the storerooms and workshops. Seven wine cellars were found with pithoi (large storage vessels) sunk into the floor. These had a total capacity of 9000 gallons. In addition there were granaries estimated to hold up to 750 tons of grain. ‘They had timber roofs, the pinewood beams of which were so well preserved that a local violin-maker was able to use a piece of the wood to make the sounding board of a violin

which was played by a member of the Erevan Philharmonic Orchestra.’ (Piotrovsky) The Urartians were the neighbours and main rivals of the north Mesopotamian Assyrians during the ninth and eighth centuries BC. They disappear from history in the sixth century, perhaps as a result of invasions of nomadic groups such as the Scythians from central Asia, associated with the Medes from western Iran B. Piotrovsky, The ancient civilization of Ur (Geneva, Nagel, 1969) D. Collon, Ancient Near Eastern art (London, The British Museum Press, 1995) M. Joukowsky, Early Anatolia (Kendall Hunt, 1996)

SERPENTINITE STAMP-CYLINDER SEAL WITH MONSTERS AND ANIMAL HEADS Urartian, 8th century BC From Anatolia Hybrid monsters - a typical Urartian product The Uratians adopted the cuneiform script for their royal inscriptions and at the same time adapted the cylinder seal for administrative purposes. They used stamp-cylinders, with a small handle at the top and an engraved sealing surface on the bottom as well as around the sides. Those found in Urartu differ from those used elsewhere: the cylinder flares out towards the bottom and is often concave-sided so that it looks like a bell. The motifs depicted on this example are typical of an Urartian seal. It is carved with winged, scorpion-tailed, two-legged monsters, with the heads of a lion, a bird and different kinds of horned animals. Urartu, centred on Lake Van (in modern Turkey), was the northern neighbour and rival of the Assyrian Empire during the ninth to the seventh centuries BC. However, it had disappeared before 600 BC, possibly destroyed by raids of horse-borne warriors, known to the Greeks as

Scythians, associated with the Medes from western Iran. The name survives, however, in that of its highest mountain, Ararat. D. Frankel, The ancient kingdom of Urartu (London, The British Museum Press, 1979) D. Collon, Ancient Near Eastern art (London, The British Museum Press, 1995) D. Collon, First impressions: cylinder se (London, The British Museum Press, 1987)

APRIL 2014 AJA INTERNATIONAL MAGAZINE 49


Armenian Signatures

Armenian Signatures

New ChairmAn of Istanbul Chamber of Jewelry (IKO) …When I heard that Norayr Isler, an Armenian for the first time was a candidate for the elections of Istanbul Chambers of Jewelry (IKO) I informed the Mayor Mr Farsakoglu about this. Mr. Norayr Isler’s financial advisor and my friend, Garbis Armando Kendirliyan’s proposal and Mayor Mr Farsakoaglu’s directive took me to Mr. Norayr Isler’s jewelry store, Zela Jewelry, where I stayed for two months to serve him for this election.

T

he result is so pleasing of course. Mr. Norayr Isler, his friends and supporters, Mayor Mr. Farsakoglu and I are really proud of it. Mr. Norayr Isler, the Head of the Blue List called Confidence and Dialog Group, has won the 18th elections of Istanbul Chamber of Jewelry, officially established in 1971. It took place at Firat Cultural Center in Cemberlitas- Istanbul on 16 January, Thursday at 11 am. Mr. Hasan Gulacti from the Yellow List and Mr. Ahmet Karbeyaz from the White List were the other candidates. The atmosphere was sometimes tense and sometimes exciting during the elections. The first speaker was Mr. Norayr Isler born in TopkapiIstanbul. His family was born in Susehri-Sivas. The owner of ZELA brand, Norayr Isler stated that jewelers in Istanbul are not the only ones in Covered Bazaar anymore; they are going to change this and cover all jewelers in every part of Istanbul. He mentioned about the committees in the districts and he also pointed out that local committees which will be founded under IKO’s structure will have a more democratic and empowered administrative understanding in a way which moves from periphery to centre. He began his speech with a part from story of Abraham and Nimrod, and this was a clue that his speech would be so impressive. He cited the conversation between ant and crow in the story as an example to emphasize his ideas: “(...) Crow (who carries wooden pieces to the fire which burns Abraham) asks ant (who carries water with his so tiny mouth to the fire): - Do you think that you will be able to extinguish the fire with such a little water? Ant answers: - Even I am not be able to extinguish it, it will show which side I am. It was so easy to observe that everyone was listening to him so carefully without any aggression. Because he has a charisma which helps him to be known as gentle, non-aggressive, moderate, self-confident and single-

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minded among even his rivals. “(...) IKO won’t protect only the rights of big and well-known brands, we will also be the voice of small businesses that spend time and labour in a tough manner.” said Norayr and continued “We are so proud of being introducers of “ Made In Turkey” branded products and crafts in an international arena.” He also told that they’ve followed a tough way to create their brand which is called ZELA. When Ahmet Karbeyaz’s white list is 259, Hasan Gülaçtı’s yellow list is 300, and blue list is 358 in voting, Norayr was officially voted as Head of IKO (Istanbul Chamber of Jewelry) and Fuat Kırgız, Can Gezer, Akın Kozan, Sarp Tarhanacı, Mustafa Tiryaki, Robert Muratoğlu, Mehmet Çakar, Mehmet Emin Alkan, Aziz Akbulut, and Murat Turaç were elected as members of IKO’s Administrative Board. Saim Demirci, Ahmet Rıfatoğlu, and Orhan Güler were elected as members of Discipline Board. Finally results were announced; Everyone in election room was in a state of joy. People, even in rival lists who were Turkish, Kurdish, Syrians (Syrian Orthodox), and Armenians were celebrating him in a very friendly way. There was a really emotional atmosphere which might cause crying, even me, might cry because of joy if I wasn’t shy. Before and during election process; every detail, sentence, speech, and even word was emphasized one by one and was drawn a strategy in this way. For instance, speech (which is both in Turkish and Armenian) at 150 attendants dinner for elections process, announcements in journals, interviews for media, election day speech and several such examples were held in a very democratic atmosphere. I met 70 very warm-hearted people who were Armenian, Syrian Orthodox and Turkish jewelers and they were Norayr Isler’s fellow workers. It was so obvious that they’re really bounded to Norayr with a pure friendship. As a conclusion, results were celebrated by everyone without discrimination. Nazaret Davityan was the most

«Before and during election process; every detail, sentence, speech, and even word was emphasized one by one and was drawn a strategy in this way. For instance, speech (which is both in Turkish and Armenian) at 150 attendants dinner, announcements in journals, interviews for media, election day speech and several such examples were held in a very democratic atmosphere...» emotional one during celebrations, because he is Norayr’s master in his career. Norayr’s father has given Norayr to Davityan as an apprentice when he was 10 years old. Davityan’s speech touched everyone when he was talking about his old apprentice. Dr. Mustafa Farsakoğlu, the Mayor of the Prince’s Islands and Ani İpekkaya, an Armenian well-known actress in

Turkey, was the first people who celebrated Norayr on phone. Mayor Farsakoğlu and Nurhan Çetinkaya who is a new member candidate for the prince’s Islands Municipal Council attended an amazing celebration dinner at Çınar Restaurant in Bakırköy.

Raffi Hermon Araks APRIL 2014 AJA INTERNATIONAL MAGAZINE 51


Cover jewel

NOW IN RUSSIA

Ohanes Agopyan, President & C.E.O. of the well-known jewelry brand MIIORI (New York), now regularly visits Russia as he has established a flagship store in the heart of Moscow. The opening of a new MIORI boutique in the city, close to the Red Square, is scheduled for this May. The grand opening of a new store for MIIORI in Russia is a great step, as entering the Russian market is not easily accomplished. Ohanes Agopyan stated: “It is possible to just sit back and think about the risks it entails, and end up doing nothing. I decided to open a store in the capital of Russia, and did it. Seven years ago I decided to begin production in Armenia, today our factory is one of the largest jewelry industry employers in Armenia.” MIIORI was created as the crown jewel of goldsmith and founder Ohanes Agopyan, a veteran jewelry artisan whose unwavering determination and profound passion for exquisite jewels has earned him the title of being one of the most influential independently owned jewelry manufacturers in the industry, as well as a recognized player amongst the elite international diamond and gemstone traders. The high-end jewelry brand rooted in European jewelry making traditions, has been operating out of New York. Apart from Yerevan and Moscow, MIIORI also has offices in major cities such as New York, Hong Kong, Bangkok, and Madrid. With years of experience in both private label and custom manufacturing, Ohanes enhanced traditional European jewelrymaking with his flair and style. Captivated by the sheer elegance of precious jewels, Ohanes was inspired to create a collection that would truly be symbolic of his love for jewelry. MIIORI derives its name from an Italian phrase «Mi-Amore» which means my love, and the word «Oro» for gold; entwined together, they form the word MIIORI. MIIORI captures a woman’s femininity and her mood. The double «II» symbolizes the duality of the human spirit, with roots in the zodiac symbol of the Gemini, MIIORI represents a dualistic personality. APRIL 2014 AJA INTERNATIONAL MAGAZINE 53


Cover jewel

Cover jewel

Everlasting values of Ohanes Hagopyan MIIORI’S founder and C.E.O. Ohanes Hagopyan is a recognized player in the international market of rare gemstones and fine quality colored diamonds. MIIORI represents three generations of European traditions in jewelry making and craftsmanship. His father Hakop Hagopyan was a well-known jeweler and his grandfather, a native of Mush, was a sculptor. The MIIORI brand appeared in 2002, gaining momentum and international acclaim rapidly. Two years ago MIIORI patented its own unique ‘FlashSet’ technique of gem setting which produces a holographic effect when an item of jewelry is viewed from different angles. While other businessmen put forward hundreds of arguments why they shouldn’t invest in Armenia, Ohanes discovered his own reasons and solutions and began production in Armenia. While others talked about the difficulties and risks related to doing business in Russia, Ohanes dared and opened the MIIORI flagship boutique in the center of the capital of Russia.

W

hat compelled you to start a business in Russia?

Russia remains one of the most attractive world markets. This market is attractive for all. But not everyone is ready to risk... We knew where we were going. We conducted market

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research, analyzed our opportunities and risks, and began to act. This May the annual Congress of the World Jewellery Confederation (CIBJO) will be held in Moscow, at the same time we will be holding the grand opening of our store at the Nikol’skaya Plaza Trade Centre. Do you make any collections especially for Russian women?

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Cover jewel

Cover jewel Yes, we have a lot of Russian clients. During the past five years, Russian buyers began to show great interest in our jewelry. It was not only Russians residing in Moscow but also Russians both visiting and living in New York, Monaco and Hong Kong who have become keen buyers of MIIORI collections. Since this surge in popularity from Russian consumers I have started to pay more attention to the designs that appeal to Russian women. One of the main reasons we opened a flagship store in Moscow is so that people would become familiar with our brand so that when they go abroad they will already be acquainted with our quality and values and feel comfortable to buy. The MIIORI Moscow boutique’s goal is not solely focused on the sale of items within Russia, it is more centered on familiarizing Russian consumers with the MIIORI brand’s existence in Moscow so that they can be confident to buy the brand in Monaco, New York, Hong Kong or wherever they go. We do not expect great results from the store; it’s a brand promotion. Where are your designers from? We have a team of designer located in different parts of the world.

Personally, I give only special landmarks to my designers about what we have to do in the upcoming season and what new ideas we should use. We employ Italian, French, American, Armenian and Chinese designers who all have different ideas for their markets and bring a different touch to an item of jewelry. How often do you use celebrities in your marketing projects? We have used celebrities in the past for our advertising campaigns, but it has recently become exactly the opposite, celebrities have begun to use us. This will become more evident when we have our grand opening in Moscow. You have been an AJA member since the beginning. What do you think about the Association’s projects? It’s more than positive. This organization is not just uniting us by national and professional features it is giving us the opportunity to communicate and share experiences and feelings. Most importantly the AJA has started to implement large-scale projects, which we could not even dream of before.

MIIORI patented its own unique ‘Flash-Set’ technique of gems inserting, which allows seeing on the move the changing gems colours at different angles, giving them a holographic effect

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Armenian Signatures

Golden Dynasty

TSolag MoMJian: makInG hIstory In the BIBlIcal lanD

It was no accident that he was appointed Honorary Consul of the Republic of Armenia to Israel. coins, which is the national property of Israel, is legendary, like himself.

be a jeweler. During the 1936 Arab revolt in Palestine, led by Arabs Nationalists against the Jewish residents and the British Kashi family, who owned a jewelry shop in the old city of Jerusalem, decided to move to Tel Aviv, and sold the shop to Krikor.

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Opening of the new factory in 1980, Momjian, Teddy Kollek mayor of Jerusalem, Krikor Momjian and Mrs. Allegra Momjian.

With Ariel Sharon as then the Minister of Industry and Trade.

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Momjian-Jerusalem Jewelry Mfg. Co. Ltd was founded by the Tsolag Momjian’s father, Krikor Serop Momjian in 1936. Krikor was an orphan from Malatya whose parents were killed during the Armenian Genocide in 1915. He was six years old, and his sister Hripsimeh was nine when they were brought to Palestine from Turkey, and placed in an orphanage in Nazareth. When Krikor was ten years old, he was entrusted to a Jewish family in Tel-Aviv by the name of Kashi, they were three brothers: Ruben, Moshe and Hillel, whose children and grandchildren manage jewelry businesses in Tel Aviv till today.


Golden Dynasty So, in 1936, Krikor Momjian started his own jewelry business, in the old city of Jerusalem, a few meters away from the Church of the Holy Sepulcher. In addition to being a jeweler, Krikor was a self-taught archeologist, who collected and traded antiquities until his passing in October of 1990. Among his customers were General Moshe Dayan, and Teddy Kollek, the mayor of Jerusalem. And both became close friends over the years. Among Krikor’s customers were many distinguished foreign dignitaries such as President Jimmy Carter, Henry and Nancy Kissinger, and Elizabeth Taylor, among many others. Collecting antiquities and coins has also become a passion for Tsolag.He will soon publish a book entitled “History of the Bible land through the collection of Krikor Momjian”. Tsolag Momjian was born in Jerusalem in 1940, while the country was still under the British Colonial Mandate of Palestine. When he was 8 years old, Israel declared its independence, and in 1948, the state of Israel was

When his wife Allegra joined him in Jerusalem to start a

the western part where Israeli troops had reached the outskirts of the old city walls, and the eastern part of the city; inside the old city walls, where the Armenian quarter and convent are located. Mr. Momjian was educated at the College De La Salle in

opened in Amman Jordan. Italian friends and

to Italy and Germany to study industrial jewelry manufacturing, and started importing machines to manufacture chains, which were made by hand. During one of his business trips to Milan in 1967, he was fortunate to meet his lovely wife Allegra, born in Italy to Stepan and Ankinee Baibourtlian, originally from Samson were blessed with three children: Hagop, Alberto, and Monique.

war. Jerusalem was no longer part of Jordan, and had just become the new capital of the State of Israel. During the 1970’s, the jewelry business in Israel grew, mostly relying on exports to the USA, Europe, and Japan. Atarot Industrial Zonein Jerusalem. During the 1980s, the business grew, and in 1981, his company was awarded “Outstanding Exporter of Israel”. Over the next two contributor to the exports of Israel, and was recognized with many awards. increased salaries, and stronger local currency. For the Momjian Company, who relied mostly on exports, it was becoming a challenge to continue competing with low cost the Momjian family decided to move their production to a

recently signed Free Trade Agreements with the US, Europe, and the Arabic countries, asked to partner with Alessi-Momjian, by partnering with one of the largest Italian chain manufacturers, Alessi Domenico. In 2003,one of the oldest and largest Italian jewelry manufacturers, Gori-Zucchi (Uno-A-Erre), established in 1926 in Arezzo, Italy, becamealso interested in partnering with Momjian, and thus GZM was created – Gori Zucchi Momjian. Today, Alessi-Momjian & GZM manufactures& sells world, using gold in karats ranging from 9K, 10K, 14K, 18K for markets in Europe, the far East, and the US. For customers in the Middle East, 21K is manufactured. Much of the production is set with SWAROVSKI® Crystals, which has had phenomenal success worldwide. Presently, Tsolag’s sons, Hagop & Alberto, manage the

Armenian Prime Minister Tigran Sargsyan, Tsolag Momjian, Hagop Momjian

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Momjian, Mr. Sharif Al-Zou’bi the minister of Industry and Trade Alberto Momjian.

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Consul of the Republic of Armenia in Jerusalem.


Golden roots

Golden roots

Hrach Avakyan. Connecting

dreams and reality

answered. Guests were not only impressed by the technologically advanced equipment, but were pleasantly surprised that even during the difficult economic times, ADAMANT was able to properly evaluate the situation, strengthen the company, meeting up to even European standards. The plant features the latest in scientific and technological advancements, and was designed by leading Italian specialists. Mr. Avakyan is especially proud of the latest Italian equipment used for finishing jewelry chains Adamant was presented to partners and consumers at a fundamentally new level, boasting higher standards in manufacturing, personnel policy, and customer service. With four production facilities, ADAMANT employs 600 jewelers. The latest plant, just recently purchased, specializes in exclusive jewelry. Even during the difficult economic times, Hrach Avakyan was able to avoid layoffs and significant drops in production volume. The company also expanded in Russia with new wholesale representatives in Novosibirsk, Lipetsk, and Rostov-on-Don, as well as new retail stores carrying their collection in Vladimir, and Rostov-on-Don.

T

he global economic crisis in 2009 certainly affected Russia, but unlike many others, Hrach Avakyan never lost heart nor changed plans.

Well known and respected in Russia’s jewelry industry, Mr. Avakyan is the head of ADAMANT, the largest Russian manufacturer of gold and silver chains. His company produces at record capacity levels in Russia: over 2 million grams of jewelry chains per month. Back in 2009, guests from the JUNWEX international exhibition, which is held in in Moscow, arrived to Adamant’s new production facilities in the old Russian town Vladimir. The General Director of the plant, Sergey Avakyan, guided jewelers and the media on a two-hour tour, explaining all the different aspects of their production process. Numerous questions were asked and

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Marketing research shows that the most in-demand products are wedding rings (smooth, with rotating insertions and finites, and diamond processing), chains and bracelets (made with silver 925’ - white, blackened and gold-plated as well as with gold 585’), and hollow chains; a leader in sales, which Adamant jewelry factory is the only producer in Russia ADAMANT is an Avakyan family business: Hrach’s wife Hasmik and their children Sergey and Narine are an integral part of the company. Mr. Avakyan is also the head of Vyatka regional office of the Russian Jewellers Guild. The Avakyans are well known in the Russian Armenian Diaspora. Sergey, a graduate of the prestigious Institute of International Relations, is involved in public and political activities. He was elected deputy to the legislative Assembly of Vladimir region. Hrach and Sergey Avakyan contributed greatly toward the construction of the Armenian Church in Vladimir where there are many Armenians. Hrach Avakyan was one of donors who sponsored the making of the Altar cross, which was donated by the AJA Russia Chapter to the new cathedral complex in Moscow.

HASMIK Avakyan

The Adamant Jewelry Company has been in the Russian market since 2000. From a small company, it has developed into a modern manufacturing complex sized approximately 8000 m2. As of 2012, the Adamant Company became a Russian manufacturing and commercial enterprise, which meets world standards. Adamant specializes in high-quality gold and silver jewelry of mass demand. Products of the Adamant jewelry factory are sold in stores located in major Russian cities, and locations continue to expand rapidly. Adamant is a permanent member of the leading jewelry exhibitions of Russia, and its products, leadership, and innovative approach in the field of promotion has won numerous awards. The plant is certified in: - Quality Management System (ISO 9001:2008); - Environmental Management System (ISO 14001:2004); - Occupational health and safety management system (OHSAS 18001:2007). The factory is included in RCCI’s register of reliable partners. Today, it is the only producer of a wide range of chains and bracelets in Russia, and in some cases, it is the only manufacturer. Adamant brand products, in accordance with the slogan «Connecting dreams and reality», aims to satisfy the expectations of consumers buying jewelry in the widest price range. ADAMANT development main stages: 2000 - Factory Foundation 2005 - Production mastering of gold chains of 585 2007 - Start-up of hollow gold chains production 2009 - Construction and launching of the largest in Russia chain-knitting production pavilion 2010 - The assortment of gold and silver chains is considerably expanded - The company is included in the RCCI’s register of reliable partners 2011 - Start-up of silver hollow chains production - Start-up of gold full and hollow chains 375°production - Factory is certified according to ISO standards - Factory takes first place on volume of chain production in accordance with GIPN data 2012 -Partnership contract with Zenit Football Club is signed - Rebranding - New site creation - Quality of service improved Equipment Leading Italian specialists have carried out the equipping of the production sections. Today, it is equipped with the most hi-tech Italian equipment, and has a record for Russia with a capacity of more than 2,000,000 grams of jewelry chains per month! There are the most modern technologies of jewelry production available at Adamant’s disposals, which guarantee high quality and durability of Adamant products; the technological lines used in the finishing of jewelry chains production. The silvering and goldplating galvanic line as well as the cataphoresis line - for coating of silver jewelry with the protective lacquer, which increases their service life. The essential Adamant’s assortments are gold and silver chains and bracelets. In 2011, Adamant was the first among Russian factories to produce hollow silver chains. The assortment includes the most popular types of chain plaiting: Bismarck manual, double diamond, love, Nonna, Singapore, anchor, curb and others. In 2012, the Nonna-Bismarck chain production began, and is capable of becoming the new leader in sales because of its technical and aesthetic properties.

APRIL 2014 AJA INTERNATIONAL MAGAZINE 63


Golden roots

SERGEY Avakyan

I was not only born in Yerevan, but also spent most of my life there. I graduated from high school, university, and post-graduate course. My mother was a doctor, and her father was a professor, a chemist, and I was thinking of following in his footsteps, but everything turned out differently. After defending a thesis, I worked very little by profession, and started working at the then famous Echmiadzin factory in jewelry manufacturing and tableware (there were only two factories producing chains in the USSR: Bronnitsky and Echmiadzin factories). This connection always seemed strange to me. Therefore, when I became Director of the company, I renamed it Karin. I worked there until 1994, and then moved to Moscow. I organized an enterprise for jewelry production. At that time, the main destinations where people moved were the United States or Russia, but I felt more comfortable here, because there were already established connections. I also did not have any language barriers. A few professionals who were out of work in Armenia because of the severe economic crisis of those years joined me, and I’m glad that at that

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time I managed to employ dozens of people, giving them the ability to feed their families and some of their relatives in Armenia. What are some of the distinctive features you find in an Armenian jeweler? The Armenian jeweler has been singled out for his skill and knowledge in manual labor for several centuries, many of which, alas, were lost during the Soviet years. However, modern Armenian jewelers have a unique advantage: scattered around the world like our whole nation, they have enriched their skills as well as incorporated all the best that is in their home countries, and as a result, an amazing symbiosis of culture and art has been incarnated in the products made by Armenian jewelers. What AJA is doing today, accumulating knowledge and experience of Armenians, is very useful. It is important to provide the opportunity for jewelers from different countries to communicate, to feel part of one unit, share experiences and knowledge, and implement joint projects. Also, for many people, our Association is like the bridge that links with the historical homeland of Armenia, which is very important.

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Mr. Avakyan, you were born in Yerevan. When and how did you end up in Moscow?


Analytics

Analytics

conflict minerals

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challenge for the world jewellry industry The impact of the new and proposed conflict minerals legislation, which is due to come in effect in 2014, was the subject of a seminar that took place in the framework of the The International Gold and Jewellery Show VICENZAORO WINTER.

A

blue-ribbon panel of experts has discussed what may be a gathering storm for the gold jewellery industry, brought upon by legislative processes targeting minerals from conflict areas in the Great Lakes region of Africa. They were participating in a seminar at the VICENZAORO Winter trade fair, entitled "Conflict mineral legislation in the Europe and the United States: How it impacts upon both the domestic and export jewellery business." It was hosted by Fiera di Vicenza; CIBJO, the World Jewellery Confederation; the Responsible Jewellery Council; and Confindustria Federorafi. Presented by Corrado Facco, Managing Director of Fiera di Vicenza, and Gaetano Cavalieri, President of CIBJO, the seminar panelists included Marieke van der Mijn, Standards Coordinator at the Responsible Jewellery Council; Michael Allchin, Chief Executive and Assay Master at the Birmingham Assay Office and the President of the CIBJO Precious Metals Commission; Philip Olden, who is responsible for managing the development and implementation of responsible sourcing protocols for gold at Signet, the world's largest specialty jewellery retailer; Marco Falezza, Jewellery Operations Director of Gucci Group, who represented Confindustria Federorafi; and Maria Benedetta Francesconi of the Italian Ministry of Economic Development. The moderator was Simon Brooke, a British journalist. The first of the two specific pieces of legislation under the spotlight was Section 1502 of Dodd-Frank Act in the United States. Signed into law in 2010, it is a disclosure requirement that requires publicly traded companies to determine whether their products contain conflict minerals and conduct inquiries into country of origin of those minerals. Starting, this year, they need to make formal disclosures to

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the Securities and Exchange Commission (SEC). Similar legislation is pending in the European Union. In Brussels, the European Commission's Directorate-General for Trade is currently putting the final touches to a legislative proposal on conflict minerals that may parallel Dodd-Frank, though it intends to build on international initiatives like the OECD Due Diligence Guidance. "What this means is that quite a significant percentage of the jewellery traded in the United States will end up in the display cases of publicly traded companies, who according to Dodd-Frank need to monitor their supply chain. In other words, if you export or are looking to export to the United States, it is more than likely that, ultimately, Dodd-Frank will matter to you," noted Corrado Facco, in his opening address to the seminar. The pervasiveness of Dodd-Frank was confirmed by Philip Olden, who noted that as a publicly traded company, Signet is obliged to ensure that any company from which it buys jewellery has itself introduced a due diligence system by which it can accurately trace the origin of the gold. Signet, he noted, has developed a detailed set of protocols according which its clients are obliged to operate. "If you are not able to demonstrate that you can meet our requirements, we will not be able to buy from you," he said. The critical juncture for due diligence in the supply chain is the gold refineries, said Marieke van der Mijn. She noted that RJC has been working collaboratively to institute an internationally acceptable due diligence system that demonstrates that the refined gold they produce is conflictfree. She also disputed the notion that supply chain assurance was a luxury available only to only larger companies, noting that 40 percent of RJC's members are small and medium-sized enterprises. While having been consulted by both the British government and the European Union during the process of developing a EU conflict minerals legislation, Michael Allchin still questioned whether a legislative initiative was justified, and whether voluntary systems being adopted by industry, like the OECD Due Diligence Guidance, would be more efficient. "The truth is that easiest route to compliance today is not to buy gold from Africa's Great Lakes region, but the damage that is being done to local communities, many of which do not have alternative means of a livelihood, is devastating and often counterproductive," he stated. In its efforts to ensure that its supply chain remains free of conflict minerals, Gucci took a somewhat different approach

to companies like Signet, recounted Marco Falezza. Instead of requiring that its clients demonstrate that they had shown due diligence in ensuring the origin of the gold, Gucci acquired the gold itself, after examining the sources of the material, and then provided the materials to those companies that produce jewellery for it. Speaking on behalf of the Italian government, Maria Benedetta Francesconi addressed the difficulties faced by the small and medium sized enterprises that make up the bulk of the local jewellery sector. There are real cost factors involved, she stated, and the task of verifying the movement of gold through the pipeline is certainly not a simple one. "My concern, which is one that I feel strongly needs to be addressed, is that by placing another substantial burden upon the industry we are again raising the bar of entry. We have to develop systems by which all participants in this industry are reasonably able to meet the requirements of

due diligence. It is already difficult enough for young entrepreneurs to gain a foothold in the business. We do not want to create artificial obstacles that are too high to climb, or prevent less established companies from gaining entry into certain markets or market sectors". "Above all we need to consider the commitment we have as members of a responsible business community to society," stated Gaetano Cavalieri, in an address that concluded the seminar. "If the end result of conflict minerals legislation is that, as a rule of thumb, companies avoid trading with the central African gold producers because it is the easiest way to achieve compliance, then we may have avoided doing the wrong thing, but we certainly did not do the right thing." The seminar was opened by Fiera di Vicenza's new president Matteo Marzotto, who noted his organisation commitment to serving both the Italian and international jewellery sectors.

U.N. Report: U.S. Conflict Minerals Law Having Impact in Congo The United Nations Group of Experts on Congo issued their latest report , highlighting that the Dodd-Frank legislation on conflict minerals is spurring reform in eastern Congo. The U.N. experts group is normally one of the best sources of information on eastern Congo, as they dig into the roots of the conflict and are not afraid to name officials who are helping perpetuate the war. This interim report, which will be followed up by a full investigative report in November, brought out several key issues regarding both eastern Congo and the LRA conflict: The Dodd-Frank bill is having an impact. U.N. report: «Since its development in 2010, this United States legislation has proved an important catalyst for traceability and certification initiatives and due diligence implementation in the minerals sector regionally and internationally.» The Congolese army is being investigated for smuggling minerals. U.N. report: «The Group is verifying reports that certain FARDC elements used the suspension as a pretext to confiscate minerals, to levy illegal taxes on operators entering mining sites, or simply to take over mining sites. The Group will also seek to corroborate allegations of the use of military vehicles and military intervention at borders to facilitate the illegal export of natural resources during the suspension. The Group is concerned that such practices established during the suspension are likely to continue today, owing to the high incentive to avoid export duties.» The Congolese army is starting to pull out of mines. They are being replaced with mining police in some areas, which would be a small step in the direction. But if this is to be a real improvement, accountability systems for crimes and oversight from the U.N. peacekeeping force are needed for these police. U.N. report: «FARDC representatives promised the immediate withdrawal of troops from selected sites once the Mining Police are ready for deployment. According to a deployment plan submitted by the provincial police to the provincial Governor on 25 March 2011, 140 members of the Mining Police are to be deployed at six sites in Walikale territory supplying the centre de négoce of Isanga. MONUSCO has trained these mining police forces and is ready to assist their deployment, which had not begun by mid-May, however.”

MONUSCO can help on conflict minerals. This is significant, as MONUSCO, the world’s largest peacekeeping operation, could help provide security close to mines. Enough has lobbied the U.N. for this in recent weeks. U.N. report: «MONUSCO is also supposed to monitor the zones and the supply routes around the centres in order to contribute to the stability of the environment, although further definition of this role is urgently needed. Accompanying national officials in regular spot checks and monitoring visits remains an option that the Group would strongly encourage.» LRA attacks are increasing. This is an alarming trend. U.N. report: «The LRA has mounted increasingly brazen attacks by larger groups of fighters against FARDC outposts with the aim of seizing weapons and ammunition. There were at least eight attacks on FARDC targets between January and mid-April 2011, three of them in the month of March alone.” Contradictory evidence on the FDLR: Reorganizing but negotiating ceasefires. U.N. report: «Operations against the armed group have slowed down, allowing its cadres to train mid-level commanders and new recruits in Walikale territory, North Kivu. ... FDLR have sought to reinforce their presence in Rutshuru territory, and there are indications that their strongest battalion,... may be redeployed there soon. ... according to government officials of the Democratic Republic of the Congo and FARDC officers, FDLR have recently sought to negotiate a ceasefire in exchange for disarmament and relocation, possibly to Maniema Province.» FDLR is attacking old allies in order to get weapons. The FDLR may be losing money from the minerals trade and are possibly working on alternative strategies. U.N. report: «On multiple occasions in recent months, FDLR have attacked former allies, including Mai Mai Akilo and Mai Mai Sheka apparently in order to retrieve weapons they provided to those groups or to undermine negotiations with FARDC.» Mai Mai «civil defense» militias are still at minerals sites. U.N. report: «Mai Mai Sheka units continue to be present in areas north of the Osso River in Walikale territory and are actively involved in the gold and diamond trades, re-establishing links with FDLR that had apparently been suspended to facilitate negotiations.»

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Analytics

Analytics

Conflict Minerals Disclosure Certain to Test Supply Chain Professionals’ Mettle To eliminate conflict minerals from the supply chain, corporations are required to disclose the origins of materials

Rose Kelly-Falls is currently the senior vice president and head of supply chain risk at Rapid Ratings International Inc., and leads the supply chain business segment for the company. She works with supply chain clients as they develop, implement and grow their risk management initiatives by sharing best practices and collaborating on process improvement.

O

n Monday, June 2, public companies need to further boost their supplier transparency procedures. As well-intended as this is, the steps required to achieve this are fraught with opacity and a lack of direction. On this first Monday in June, Dodd-Frank Section 1502 requires U.S. companies to expose “conflict minerals” within their supply chains. The objective is to compel corporations to be more socially responsible, since conflict minerals originate from countries with extremely poor human rights records. To provide some background, conflict minerals encompass tungsten, tantalum, tin and gold (also known as 3TG metals), many of which originate from the Democratic Republic of Congo and its sovereign neighbors who trade them illegally. The Democratic Republic of Congo (DRC) was singled out because of the numerous human rights violations committed by mining operations within its borders each year. 3TG minerals are near essential for the manufacturing of many technological devices and other products, but the U.S. government has the necessary muscle to cleanse supply chains of these metals and prevent businesses from

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profiting at the expense of human rights. Europe and Canada already drafted similar disclosure requirements and expanded their proposals beyond the U.S. requirements. (I am sure there is more to come on this in the coming months.) To eliminate conflict minerals from the supply chain, the Securities and Exchange Commission (SEC) is now requiring corporations to disclose the origins of materials, becoming the first piece of legislation to directly require action on the part of supply chain professionals. Yet with very little guidance for how to comply, most companies remain mired in the early stages of planning an audit, while others are still trying to determine whether it even applies to them. One of the biggest issues facing corporations is simply how to tackle such a large project. The analysis has to focus on the entire supply chain, not just on direct suppliers, but those suppliers’ suppliers and so forth. Big or small, companies are going to be confronted with mountains of paperwork and months of “detective” work in order to analyze layer upon layer of suppliers, and then to identify the origin of the metals within their products. Aside from collecting the data, organizing it is a separate, equally daunting task. Without a standard template from the SEC, companies are left to organize their findings themselves. Some companies resorted to templates drafted by independent entities, such as the Organization for Economic Cooperation and Development (OECD), while others began to create their own. To tackle the filing process, strong leadership within a corporation is essential. Unfortunately, the SEC only identified that an executive officer should be responsible for signing off on the submission. Given this document pertains to supplier information, who should be accountable for the signature? As with any compliance project, many different departments need to review and approve the submission before the executive signing. That requires a great deal of coordination to ensure that each piece is completed and aligns with the organization’s standards. It’s unclear whether the chief auditor, chief financial officer (CFO), chief procurement officer (CPO) or another executive should have the ultimate sign-off. Regardless, corporations are eager to avoid past missteps made when complying with other requirements. Sarbanes-Oxley remains the definitive example, in which inaccuracies

Conflict minerals are minerals mined in conditions of armed conflict and human rights abuses, mostly in the eastern provinces of the Democratic Republic of the Congo, by the Congolese National Army, and various armed rebel groups, including the Democratic Forces for the Liberation of Rwanda (FDLR) and the National Congress for the Defense of the People (CNDP), a proxy Rwandan militia group. The looting of the Congo’s natural resources is not limited to domestic actors; during the Congo Wars, Rwanda, Uganda and Burundi particularly profited from the Congo’s resources. These governments have continued to smuggle resources out of the Congo to this day. The profits from the sale of these minerals finance continued fighting in the Second Congo War, and control of lucrative mines becomes a focus of the fighting as well. The most commonly mined minerals are cassiterite, wolframite, coltan, and gold. Mines in eastern Congo are often located far from populated areas in remote and dangerous regions. A recent study by IPIS indicates that armed groups are present at more than 50% of mining sites. At many sites, armed groups illegally tax, extort, and coerce civilians to work. Miners, including children, work up to 48-hour shifts amidst mudslides and tunnel collapses that kill many. Minerals mined in Eastern Congo pass through the hands of numerous middlemen as they are shipped out of Congo, through neighboring countries such as Rwanda or Burundi, to East Asian processing plants. Because of this, the US Conflict Minerals Law applies to materials originating (or claimed to originate) from the DRC as well as the nine adjoining countries: Angola, Burundi, Central African Republic, Congo Republic (a different nation than DRC), Rwanda, Sudan, Tanzania, Uganda, and Zambia.

In April 2009, Senator Sam Brownback (R-KS) introduced the Congo Conflict Minerals Act of 2009 (S. 819) to require electronics companies to verify and disclose their sources of cassiterite, wolframite, and tantalum. This legislation died in committee. However, Brownback added similar language as Section 1502 of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which passed Congress and was signed into law by President Barack Obama on July 21, 2010. The US law has not gone unnoticed by the international community, including entities seeking ways to undermine any required traceability efforts. A report published by a metals trading publication illustrated one DRC ore/ mineral flow method that has apparently been devised to thwart detection. On July 15, 2011, the US State Department issued a statement on the subject. Section 1502(c) of the Law mandates that the State Department work in conjunction with SEC on certain elements of conflict minerals policy development and support. On October 23, 2012 U.S. State Department Officials asserted that ultimately, it falls on the U.S. State Dept. to determine when this rule would no longer apply. Manufacturers and supply chain partners needing to comply with the ever increasing reporting regulations have a few commercial options available. A major research report from November 2012 by the Southern Africa Resource Watch revealed that gold miners in the east of the Democratic Republic of Congo were being exploited by corrupt government officials, bureaucrats and security personnel, who all demand illegal tax, fees and levies from the miners without delivering any services in return. Despite the alleged gold rush in regions of the country, none of the population and workforce is benefiting from this highly lucrative industry.

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Analytics were rampant despite the rigorous approval process within many organizations. Once companies file successfully, they cannot be penalized by the government for using conflict minerals in their supply chain. The catch is companies are required to make the results public on their websites and in corporate literature so it can be accessible by any end user, or anyone who does business with them directly. Bottom line: These companies could face embarrassing public relations repercussions as fallout from conflict minerals in their supply chains. And, as many companies discovered, public relations crises can bring a dramatic cost to the bottom line, stock price and brand reputation.

are responsible for ensuring the accuracy of the information submitted to the SEC. Missteps can be costly and everyone in an organization needs to be on board. The leader should be given a representative from every department to maintain a seamless audit. 2. Create a process. Reporting conflict mineral status is going to become a regular piece of a corporation’s compliance puzzle. It is essential to establish a repeatable process that examines the supply chain and the suppliers on an ongoing basis. Adopting a software platform or other means to effectively manage a supply chain’s conflict mineral status ensures accuracy, and eases the complexities that come with the deep analysis.

“This legal challenge to the Conflict Minerals Rule is nothing but a crass effort by industry groups to put profits ahead of principles”

With many factors to consider, the submission deadline can be extended by declaring a “DRC conflict undeterminable” status. This allows large companies, meaning those with more than $75 million in shares outstanding, two further years to examine their supply chains. Smaller companies get an extra four years. With extra time, companies can hopefully figure out the confusing protocol and how to prepare for future compliance. Even with a deadline extension, companies need to act now. Below are three potential steps for tackling an audit in support of Dodd-Frank Section 1502: 1. Identify a leader and build a team. Corporations need to establish a leader to coordinate the many departments that

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3. Coordinate a public relations strategy. Conflict minerals are likely going to be uncovered in corporations’ supply chains. With public disclosure, a contaminated supply chain has the potential to earn negative media attention. An appropriate communications strategy is crucial to minimize the impact on a corporation’s value and brand. By getting a jumpstart on the planning and audit process, and organizing a company-wide effort, corporations should be able to implement a successful process that accurately identifies the mining origins of their materials. As time-consuming as this endeavor undoubtedly is, the result is sure to give companies a conflict mineral-free stamp of approval that provides peace of mind to management and consumers alike.

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Steven Hawkins, Executive Director of Amnesty International USA


Historical Review

Historical Review

CALOUSTE

GULBENKIAN

AND REN LALIQUE: A GOLDEN FRIENDSHIP

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‘Throughout the 50 years of our friendship, René Lalique’s talent never ceased to amaze me … I feel privileged to own what is arguably the largest collection of his pieces.’ When the Armenian art collector Calouste Sarkis Gulbenkian’s treasure trove of Lalique’s jewellery, art and glassware was unveiled, it took the art world by storm. Despite today’s ongoing infatuation with Art Nouveau, the tale of the two men’s friendship and mutual admiration remains underexplored. Calouste Sarkis Gulbenkian (1869-1955) is well-known amongst Armenians. The mere mention of his name invokes admiration. Crowned ‘Mr 5%,’ Gulbenkian was a man of all trades and amassed one of the greatest fortunes of his times: he was a successful banker, diplomat and adventurer. Born in Scutari (not far from Istanbul) on 23rd March 1869, Gulbenkian relocated to Lisbon, where he stayed until he died on 20th July 1955. As well as holding five per cent of Turkish Petroleum’s capital, he helped to set up Shell Petroleum when the Western powers were dividing up the petroleum riches of the Middle East. Today, Gulbenkian deserves to be remembered as more than an astute tycoon and multi-millionaire: like Howard Hughes and John Davison Rockefeller, he was a patron of the arts and a discerning connoisseur. Portugal’s capital, Lisbon, is home to the Calouste Gulbenkian Foundation, founded in 1969, which remains one of the wealthiest foundations outside of the US.* In 1942, during the tumult of World War II, Gulbenkian escaped to Portugal, where he spent the last thirteen years of his life. Shortly before his death in 1955, he expressed his desire to see his collection united under one roof. In this way, the Foundation, with its affiliated museum, were set up. They showcase the 6,000 pieces that Gulbenkian assembled during his forty years as a collector. The Foundation features galleries devoted to Egyptian, Greek, Islamic, Oriental and European art from the eleventh through mid-twentieth centuries. It contains an astounding quantity of masterpieces from all periods and

genres, including painting, sculpture, ceramics, tapestries, illuminated manuscripts, furniture and gold. One of the highlights is the Art Nouveau room, which dazzles the eye with an unrivalled display of Lalique’s jewellery and glass masterpieces. ‘Only the best is good enough for me,’ was Gulbenkian’s catchphrase; his artistic treasures were his children. His first Lalique acquisition was a choker, entitled ‘Trees,’ which was heavily influenced by photographic trends and seen as daring for its time. As the Foundation’s former head curator, Maria Fernanda Passos Leite, explained, ‘What makes his collection unique is that he acquired all of the pieces, save for one, directly from the artist.’ Gulbenkian was a frequent visitor of Lalique’s atelier and residence near the Champs-Elysées. The artist, meanwhile, was one of the few to have been granted entrance to Gulbenkian’s Avenue d’Iéna mansion, which also housed his art collection. As someone who preferred peace and quiet to society life, the collector rarely received visitors. Such artistic exposure made an indelible impression on Lalique. The two men’s inspiration was mutually felt: Lalique was as impressed by the petroleum tycoon’s ingenuity as Gulbenkian was captivated by his friend’s talent, regardless of its dissimilar domain. It is possible to imagine the passionate discussions that they may have had about subjects ranging from art and travel to business. The Belle Époque was the product of the turn-of-the-twentiethcentury’s transforming values. Responding to Paris’s changing physiognomy, Lalique wanted to ‘make something that had never been seen before’ and contributed to the rise of Art Nouveau, the period that was named after Siegfried Bing’s shop in Paris. According to his contemporary, Henri Vever, a jewellery historian and jeweller in his own right, Lalique was at the forefront of the action. While Gulbenkian was a selective collector with a limited interest in modern art, Lalique’s creations were the sole exceptions. Gulbenkian detected in his friend the makings of a jeweller whose artistic legacy would be timeless. The two men shared a passion for Nature and feminine beauty — themes that define Art Nouveau. The Lalique collection in Lisbon contains pieces that were fashioned between 1899 and 1927: diadems and combs; necklaces and chokers; brooches and bracelets. It showcases the artist’s flair for pairing opals, moonstones and chrysoprase with diamonds, sapphires and aquamarines. The ensemble of 82 pieces show off


Armenian Signatures

Historical Review their sensuous lines and are historic documents in themselves: a number of them featured in the Exposition Universelle (1900) while others adorned some of the greatest female stars of the period, such as Sarah Bernhardt. Snakes, peacocks, briars, bumblebees, orchids, dragonflies, thistles and pine branches, pepper plants and hazel trees, anemones, owls, hydrangeas, grasshoppers, scarabs, wisteria… Nature is everywhere, sublimated in the pieces of one of jewellery’s greatest masters. The female form represents another dominant theme, which explains the many allusions to mythology, nymphs, naiads and goddesses that are carved out of ivory, rock crystal and glass. Aside from his career as a jeweller, Lalique made a point of his versatility, becoming a world-class glassmaker. He was always on the cusp of invention and patented a number of his revolutionary techniques. Jewellery continues to celebrate the beauty of Nature. In a world straddling a decline in biodiversity and a rise in environmental regulations, René Lalique’s oeuvre remains a relevant fountain of inspiration. For aspiring aficionados and long-time connoisseurs, Calouste Gulbenkian’s collection is in a class of its own. As the collector remarked, ‘Lalique’s pieces occupy a privileged place.’ The bond between the two men gives Lalique’s pieces a spiritual gleam that not even the most eye-catching pieces of the collection by Rubens, Gainsborough, Monet, Rembrandt and Renoir could surpass. Philippe Bouasse is Director of Nishi Pearls, which are distributed in the US and Canada by the Canadian Gem Society (directed by Pierre Akkelian). As well as holding a degree in Art History, Bouasse is a jewellery designer.

This article was provided by the Armenian Jewellers Foundation (AJF) as part of its historical research program. AJF was created to promote the study of Armenian jewellery history and its relevance to global trades and commerce. It aims to build awareness of our rich entreprenerial heritage. AJF is based in Geneva. For more information visit:www.ajafoundation.org.

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The Calouste Gulbenkian Foundation funds a number of projects in Armenia; most notably, it financed the Yerevan Matenadaran (one of the world’s richest depositories of ancientmanuscripts.)


Jewelry Stories

T

he Hope Diamond was once a symbol for Louis XIV, the Sun King. New research indicates that the stone was once specially cut to produce an image of a sun when mounted on a gold background. Every day, thousands of visitors to the Smithsonian Natural History Museum crowd around a glass case on the second floor to gaze at the Hope Diamond, one of the world's most famous jewels. It's been the subject of dozens of books, documentaries and scientific inquiries, partly due to persisting legends that it's cursed. Despite all this attention, though, it seems that the inch-wide, 45.52-carat diamond still conceals secrets waiting to be uncovered. A New Chapter in the Hope Diamond’s History One of these secrets was recently discovered by François Farges, a professor of mineralogy at the National d'Histoire Naturelle in Paris, and Jeffrey Post, the Smithsonian museum's curator of minerals. Using computer modeling, a recently-rediscovered 17th century lead replica and scientific analysis, they've determined that back when the Hope was known as the "French Blue" and part of the personal collection of King Louis XIV of France, during the late 17th century, it was likely placed on a gold background and specially cut to produce an effect reminiscent of a sun at its center. Only after it was stolen in 1792, during the French Revolution—and before it resurfaced in Britain in 1812— was it recut to the familiar, smaller shape we know today. The Hope Diamond as it appears unmounted today. Their new discovery, described in an article published in the month's Rocks and Minerals magazine, stems from Farges' 2009 discovery of a lead replica of the French Blue in the National d'Histoire Naturelle mineral collections, which provided the exact dimensions of King Louis XIV's French Blue for the first time. Both Post and Farges are mineral scientists, and much of their other work on the Hope is concerned with the science behind its distinctive hue, but they've also used the tools of science to investigate the gem's complex provenance. And the history of the diamond is a complex one: It was

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bought in India in a rougher from an Armenian gem dealer, less finely-cut shape by Jean-Baptiste Tavernier, a French merchant, and brought to France in 1668. "Unfortunately, Tavernier wrote some really wonderful journals about the trip, but nowhere in them did he say anything about where he actually bought the diamond," Post says. It's believed that the stone was plucked from the Kollur Mine, in what's now the southern state of Andhra Pradesh, but no one knows for sure. From there, it became part of the French crown jewels, and was cut by Jean Pittan, one of King Louis XIV's court jewelers, sometime between 1669 and 1672, eventually becoming known as the French Blue. That the Hope and the French Blue were the same stone was suggested by diamond experts as far back as 1858, but only proved definitively in 2009, when Farges unearthed the lead replica at the Paris museum. At the time, jewelers made metal replicas for extremely precious stones and used them as placeholders when designing settings. The Hope Diamond, left, placed next to the lead cast of the French Blue. "They didn't even know they had it. It was in their collection, but filed under lead specimens," Post says. Drawings and descriptions of the French Blue had previously suggested it could have been recut to produce the Hope, but the exact physical dimensions provided by the lead replica allowed Farges to collect digital 3D measurements that would prove it. When they compared these measurements to those of the Hope, "it fit into the French Blue perfectly— you could see exactly how the French Blue was cut to form the Hope," says Post. The replica, though, also raised a question: Why was the French Blue cut into such an uncommon shape? Nowadays, when jewelers cut diamonds, they use sharp angles on the back of the stone—always higher than 23 degrees, the critical angle of diamond, so that light that enters the gem reflects inside it several times. The ubiquitous brilliant cut, for instance, is designed to maximize the number of reflections that light entering the diamond encounters, thus maximizing the distance that light travels within the diamond. This heightens the brilliance for the viewer.

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The Hope Diamond Was Once a Symbol for Louis XIV, the Sun King


Jewelry Stories

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emblem. During the French Revolution, it was stolen along with the rest of the Crown Jewels, and although most of the other gems were recovered by French officials, the famous French Blue disappeared. The slightly smaller Hope Diamond—which we now know was cut from the French Blue—was first documented as being in London in 1812, and became well known when it showed up in the collection catalogue of banker Henry Philip Hope in 1839. More than a half century after it was donated to the Smithsonian in 1958, the Hope is still one of the Natural History Museum's most-visited and well-known artifacts. "It speaks to the remarkable power of a gemstone. It has generated so much research, interest and curiosity, and it's focused people on a history that might otherwise go untold," Post says. "All due to a gem one inch in diameter." Correction: An earlier version of this story incorrectly stated that Louis XV was the son of Louis XIV. He was the great-grandson of XIV. Many thanks to reader Joshua Stopple for catching the error. Joseph Stromberg Photo by Chip Clark, François Farges

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But the back of the French Blue had low angles and even an entirely flat culet on its back, allowing some light to travel through and straight out the back of the stone. Compared to the rest of the stone, the material right in front of the culet at the gem's center would have appeared relatively clear and colorless, almost like looking through a glass window. Farges and Post's intriguing explanation: that the jeweler intended for the center of the stone to serve as a window. Along with the flat culet, the French Blue had a series of star-shaped facets that were also below the critical angle, which would have caused the region in front of them to also appear relatively clear. A 1691 inventory of the French Crown Jewels notes that the gem was "set into gold and mounted on a stick." If placed in front of a gold sheet, they realized, these unique cuts would have caused a dazzling golden sun to appear at the center of the deep blue stone. Farges and Post have used computer modeling to produce an image that simulates exactly how this would have appeared, shown above. "King Louis XIV was the 'Sun King,' and so this would have been an emblem representing his power," Post says. "His colors were blue and gold, and so to have a blue diamond with a gold sun in the center—that'd be something that no one else has, something that would almost seem divine." The researchers are planning on comissioning a cubic zirconia replica, cut and colored to match the French Blue, which would demonstrate this effect and could someday be put on display with the Hope to illustrate the stone's transformation and history. They're also scrutinizing archives of Louis XIV's jewelers from that era to look for conclusive evidence that this design was intentional. One thing they know for sure is that the sun effect was eradicated around 1749, when the Sun King's greatgrandson, King Louis XV, ordered the stone to be lifted from its mounting and incorporated into an elaborate


Interview

Interview

jewelry

Los Angeles Jewelry Photographer Erick Amirkhanian of Expozme Creative Photography Taking good quality pictures of jewelry for most is an unsolved mystery. However, there are some simple techniques used by the professionals, which even amateur photographers can use to obtain dramatic results with minimal effort. Los Angeles photographer Erick Amirkhanian – head of Expozme Creative Photography, provides affordable, professional, product photography that can give your sales a boost. In this issue he will share with us the secrets of his techniques and explain the mystery. You are photographing people and jewelry. What is unique in your form of photography art? My college experience was eye opening; it was during this time that I realized that I am passionate about people photography namely portraits and headshots. In photographing people I direct my portrait clients to get in touch with their inner most essence deep within and bring out and give me, the camera, the world the story of their Soul thorough their eyes. I am amazed at how much people reveal in front of the camera, knowingly or unknowingly. In my photography

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sessions I am able to create a momentary but intense bond with others. In photographing people I concentrate on the Light within each individual person or Soul as we Armenians refer to (meg hogee, yergoo hogee). I am also very interested in Jewelry Photography and lately I produce HD jewelry videos and upload them to YouTube for search engine optimization (SEO) purposes. In photographing jewelry I concentrate on the reflective light and techniques of lighting that deal with highlights and shadows reflecting off each individual piece of jewelry. Lighting being one of two elements in jewelry photography, the second is type of camera and the kind of lens used to bring out details of the jewelry. Like people, each jewelry piece has it’s own personality and I find it part of my responsibility to highlight and bring out the best in each jewelry piece with the right use of light and camera. Erick, when and why did you start shooting jewelry? In the beginning I avoided shooting jewelry knowing that it was tough to do, it is since 2008 I have forced myself to deal with challenging art of jewelry photography and HD jewelry videos. What are the keys to good jewelry photography? In real estate the say the key to a good parcel of real estate is location, location and location. Well, the key in Jewelry photography is lighting, lighting and lighting, this is because in photography it’s all bout lighting. The word photograph literally means graph of light (photo). Lighting products or more specifically, lighting jewelry is both a technique and an art. It requires technical knowhow to identify what type of light to use for the type of jewelry. Photographing jewelry is an art where it involves painting with light; this brings out the very best in
 jewelry metals and gemstones. It goes without saying that hand-in-hand with professional jewelry photography is digital retouching where your jewelry is brought to life with retouching techniques and artistry.

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AJA News

Interview

Master class by Erick Amirkhanian What camera is best for jewelry photography?

What lighting is best for jewelry photography?

Owning the very best camera in the world will not be enough if the lighting is not done right. Having said this if you are shooting for your business and if the final images are to be used online in your website or for ecommerce, any fixed lens camera in the range of $400 to $600 will do the job. Good jewelry photography needs sharp, crisp focus. For close-up jewelry photography, you need a camera with good manual focus capability. I personally use Nikon D800 body with a Nikon 105mm f/2.8G Micro-Nikkor Lens For better result in photographing jewelry use a macro lenses. These lenses are designed for close up photography capturing details.

There are four types of studio lights; they include incandescent or tungsten, fluorescent, LED, and studio strobe. Today, LED light have so many variety of lights that is seems to be the smarter and less expensive alternative in lighting choices. With LED lights output watt and Kelvin degree are key to consistent color balance. For basic and simple studio lights you may want to invest in 6 to 8 LED light bulbs each 120 watt, 5000 K (Kelvin Degree) lamps. With correct white balance setting in your digital camera you will be able to create images that will be good enough for website usage. The camera settings are important part of good picture taking, they include ... - ISO ... - F Stop ... - Shutter Speed. While there is not enough time for me to talk about each individually, I will guide you to some general settings that will help you in the right direction. They are the following - ISO settings should be set to ISO 800 (mind you, professionally we rarely set ISO settings to 800). - F-stop should be set to f 8.0 not smaller that f11.0 - Shutter speed may be changed up or down to adjust for exposure One more crucial tool you must have in your in house studio is descent tripod. Without a tripod especially in low shutter speed settings your photographs will be blurry. Back to lighting, with a few exceptions for some special effects you lights should be set up in a way that thy reflect off of white surface or refract through a color balanced white material such as a studio soft box. Soft lights will produce a smooth light on the reflective surfaces and will enhance the look of your jewelry items. If you are interested to learn more please visit my website www.expozme.com and click in the Techniques at the lower left side of the page. I hope this information will help you sell more of your master creations. Gayane Manukyan

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Events

Events

Gagik Gevorkyan, Chairman of the Russian Jewellers’ Guild

Gaetano Cavalieri, President of the World Jewellery Confederation (CIBJO)

“The Russian jewellery community looks forward to the opportunity of welcoming our colleagues from around the world, and introducing them to our industry and our market. We will do our utmost to provide them with a perspective of our history, presence and exciting future, and we strongly suggest that they use the opportunity explore one of the world’s great cities.”

“We are delighted to accept the generous invitation of the Chairman and Board Members of the Russian Jewellers’ Guild to hold our congress in Moscow. Russia represents the length and breadth of our industry, with massive supplies of raw minerals, diamonds and coloured gemstones, a fast developing jewellery industry, and one of the world’s most exciting jewellery markets. The congress will provide an invaluable opportunity to explore the new frontiers it offers our business, and also to visit this fascinating city and country. ”

May 17-21 The Russian capital of Moscow will welcome delegates from around the world to the 2014 CIBJO Congress, which will take place May 19-21, with pre-congress meetings starting on May 17. The main venue for the event is the Russian Jewellery Guild, and the congress hotel is the Hotel Nikol’skaya Kempinski in Moscow’s city center. CIBJO Congresses serves as the official gathering place for the World Jewellery Confederation’s Assembly of Delegates, and also the venue for the annual meetings of CIBJO’s sectoral commissions, where amendments can be introduced to the organisation’s definitive directories of international industry standards for diamonds, coloured stones, pearls, gem labs and precious metals, known as the Blue Books. The CIBJO Congress is also where the programme of World Jewellery Confederation Education Foundation (WJCEF) and CIBJO’s ongoing cooperation with the United Nations is reported upon. Hosting the CIBJO Congress 2014 is the Russian Jewellers’ Guild. Located on the Moskva River, Moscow is the seat of governmentof the Russia Federation and is one of Europe’s most important political, economic, cultural and scientific capitals, with a population of more than 11.5 million. The city centre, which is dominated by the walled Kremlin complex, Red Square and iconic Saint Basil’s Cathedral, provides a spectacular backdrop for the CIBJO Congress. Delegates and other participants may register for the congress and its social programme, as well as book hotel rooms, via a dedicated congress website located at: http://congress2014. cibjo.org/. The congress website includes the congress program, important travel information and details about the social programme, which several tours of the Russian capital and the opportunity to attend a performance by the Bolshoi Opera. Online registration forms for the congress and social programme are available, as a link to the Hotel Nikol'skaya Kempinski's booking service


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