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JEWELLER NOV 09

THE VOICE OF THE INDUSTRY

Palladium: white metal of the future? The Jeweller Interviews… John Ayton Loughborough 2009 reviewed

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Annoushka’s reasons for selling Links of London, and their hopes for the future of their new brand.

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The Last Word

Palladium has finally received its hallmark and official precious status. Amy Gregson asks the industry what it thinks of the metal, and what effect the new mark is likely to have on palladium’s value to the consumer.

Truth about Fairness

Richard Peplow offers his view on Fairtrade gold: its entry into the market, he says, can only really be deemed a success if it is done properly

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Contributors: Amy Gregson, Rex Porter, Fergal Dowling, Richard Peplow

Although every effort is made to ensure that the information supplied is accurate, the N.A.G. disclaims and/or does not accept liability for any loss, damage or claim whatsoever that may result from the information given. Information and ideas are for guidance only and members should always consult their own professional advisers. The publisher accepts no responsibility for any advertiser, advertisement or insert in The Jeweller. Anyone having dealings with any advertiser must rely on their own enquiries.

The Voice of the Industry 3

comment

frontline by Michael Hoare, chief executive of the NAG

Three cheers for Christmas – perhaps! here is an optimism abroad about Christmas 2009 in most retail sectors, and all the signs are that the jewellery sector has a better than average chance of coming out on top. No doubt, there are businesses that are clinging on by the skin of their teeth, but some of these would be in danger, recession or not. We at the NAG have been preaching since midsummer that Christmas is too late to think about training staff if you want to squeeze every last drop out of the festive binge. And so it is with many of the other elements of the retail mix. If your ducks aren’t in a row by now, you’re relying on pure luck. Is the optimism misplaced? I don’t know, but members of the Executive Development Forum (EDF) are feeling quietly confident as they go into the future season showing an average 8 per cent year-on-year increase in sales, better stock turns than last year and gross profit margins that are holding up well. Is it too soon to predict an end to recession? I think so, and anyone who says we are out of the woods already is on some very potent medicines! 2010 will see a further shake-out, with businesses going to the wall. Will a lot of them be jewellers? I hope not, and at least the bead and charm bracelet phenomenon, coupled with customers’ desire to trade in old gold pre-Christmas, have given jewellers something new to talk about, has helped drive footfall into shops and generally helped generate some much needed cash with which to buy Christmas stock. And that’s one of the key points about jewellers: it is cash – and not having to borrow any – that has kept many afloat. Many are self-financed, are not reliant on credit facilities, save for a small overdraft, and therefore not slaves to the banks. Long may it continue!

Metals still shine alladium has started well! The addition of a hallmark has given the metal a considerable boost, with Birmingham Assay Office numbers showing that between July and September 27,416 articles were marked (there were 69,299 platinum articles marked during the same quarter). Palladium has given jewellers a new story to tell, and as we all know, consumers are looking for an ‘angle’ that differentiates their purchase from the next. However, there is an ever present danger that palladium could cannibalise platinum. As I have heard at least one industry insider say, “tempting as it may be to offer palladium in an attempt

4 The Jeweller November 2009

to generate sales, it shouldn’t be offered at the expense of platinum. Don’t fall into the trap of describing palladium as like platinum, but cheaper!” Globally, in the first half of the year, over 900 tonnes of gold jewellery have been scrapped. In normal economic times all this scrap gold sloshing around the market would adversely affect its price on world markets, but troubled times fuel the demand for gold as a hedge against the unexpected. For the jeweller, this has led to an unforeseen bonus, with customers cashing in their old, broken, and scrap jewellery in expectation of a cash windfall. My sources tell me that this has brought forward a

torrent of unfashionable items for disposal, and the hope is that the resulting cash bonus will be rapidly converted into new items at members’ stores. The potential is awesome, when you consider that 162 million items of gold jewellery have been hallmarked since 2001 (worth £2.76 billion at 2001 prices).

The case for Fairtrade gold t a meeting a couple of weeks ago Greg Valerio, founder of the ethical jewellery firm CRED and The Jeweller’s ethical correspondent, set out plans for the introduction of Fairtrade gold into the UK to an audience of industry insiders, covering retailers, manufacturers, bullion dealers, casters and many other disciplines. His expert audience listened with healthy scepticism to Greg’s plans to assist small-scale miners in developing countries by means of the Fairtrade brand. The Fairtrade movement now extends to some 4,500 products and accounts for

It is cash – and not having to borrow any – that has kept many afloat. about £881 million of sales in the UK alone. While Fairtrade gold is currently in short supply and is unlikely to provide a solution for large-scale manufactures, with a set of standards due to be signed in October this year, it may provide an answer for the ethically driven consumer prepared to pay a premium for the peace of mind that Fairtrade assurance brings.

comment Greg received an enthusiastic response from his expert audience and most declared their support for the social, environmental and economic goals implicit in the initiative. The outstanding question still remains, however: can Fairtrade gold capture the consumers imagination in the same way as Fairtrade cotton and coffee? What do you think?

The usual suspects was at the third Great Debate staged by the Birmingham Assay Office at IJL, along with about 40 others. The event, designed to encourage companies to work in partnership to deliver an ethical jewellery supply chain, was chaired by Liz Barclay, consumer champion of Radio 4’s You and Yours. In just over an hour, the debate brought attention to many issues including the forthcoming Fairtrade gold project, ‘recycled’ gold, certification of standards as devised by the Responsible Jewellery Council (RJC), the activities of mining giants and consumer demand for ethical products. Birmingham Assay Office chief executive Michael Allchin was pleased with the outcome, and cited the presence of multiple retailers, buying groups, niche independents, miners and processors and several groups – including the ARM, CAFOD, the RJC, the NAG and BJA – as evidence of success. Of course I agree with Michael’s sentiments, but in the closing minutes of the debate Liz Barclay asked all present what would be the one key development they would like to see by the time we convene again next year. I suppose my one wish would be to see the debate extend beyond the listening ears of the ‘usual suspects’. Every one of the familiar faces around the room are committed to one degree or another to delivering the Millennium Goals, but are we reaching out to the cynics on the sidelines, or are we just enjoying a ‘heated agreement’ amongst ourselves?

Long live Loughborough! uring the dying days of September, the indomitable Sandra Page, ably assisted by Amanda Reavell on this occasion, played host to 160 or so delegates, speakers and committee members at the 21st Loughborough Conference. A fine time was had by all at what has deservedly become a fixture in the annual timetable. Twenty one years is a fine innings, almost a coming of age, and under the auspices of the new Institute of Registered Valuers, Loughborough can look forward to many more years. However I don’t think we can truly say it has yet reached the status of an ‘institution’. During my summer ‘stay-cation’ I attended a dinner at Keble College to celebrate the 80th anniversary of the British Shops and Stores Association’s (BSSA) Oxford Summer School, which has been going strong since 1923, with only a break of six years for the second world war. This week-long event regularly attracts well over two hundred delegates and a stellar list of speakers from the retail world, and I am honoured to say that I organised it for ten years during the nineties – and still have the scars to prove it! Now, if you will permit me the use of an arboreal analogy for a moment, the great age and stature of the BSSA Oxford Summer School must justify its classification as a mighty oak of the genus ‘annual conference’; the IRV Loughborough Conference is a sturdy, fast growing, sapling, and the NAG can surely be said to have planted an acorn this summer in the form of the EDF Oxford Congress. Plans are afoot for the nurturing of its tender young buds in June 2010!

The Voice of the Industry 5

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comment

Editor’s Letter Autumn is probably my favourite season. I love the combination of the crisp chilly air and clear blue skies, and the gorgeous changing colours of the leaves on the trees. For those of us on the magazine, though, there has been little time to spare these past couple of autumn months, as we’ve been working away at producing this, the first of our ‘extra’ issues – because of course, The Jeweller is now coming to you ten times a year. For the retail trade, autumn is merely a ‘build up’ period. The clocks have gone back now, which means that we’re officially into winter and officially into the most important time in a retailer’s year – Christmas. This year has been a strange one to judge, particularly from those of us like myself who merely sit on the sidelines of the industry, rather than those of you who work every day on the high street. Only you know how successful or otherwise business has been this year, and similarly, how significantly your sales have been affected by the recession we’re now living through. And none of us yet know how Christmas is going to go. But there are good signs out there: the financial markets are steadily recovering from their earlier battering, and many people are becoming less fearful – as the media storm surrounding the credit crunch itself ebbs away – of losing their jobs and consequently less fearful about spending their disposable income. Whatever your circumstances, I hope that you’re all set for Christmas (got any good ideas for your window display this year?) and that this last part of the year sees a good profit for all our readers. This issue, we bring you the jewellery industry’s reaction to the changes in palladium hallmarking – will the hallmark give palladium new cache among the jewellery public? I also interview Links of London co-founder John Ayton, and ask him what his hopes are for he and wife Annoushka’s latest jewellery venture, and the NAG’s Sandra Page writes a full review of this year’s Loughborough conference. Hope you enjoy the read. Jo Young, Editor

Email: joslyoung@gmail.com

This month: “Anything that we did next in the jewellery industry we wanted to be completely different to Links”

Page 30

Page 59

“Having enjoyed the first few lectures, I began to realise that my reservations had been ill-founded.”

The Voice of the Industry 7

Industry News

JEWELLER

LVMH jewellery sales still weak uxury group LVMH has defied analyst expectations by reporting a better-thanexpected 3 per cent drop in like-for-like sales for its final quarter. The group’s results were bouyed significantly by a ‘double digit’ rise in sales at the flagship Louis Vuitton brand, despite falling sales of watches and jewellery. LVMH reported a 0.6 per cent decline in sales in the third quarter, as demand from retailers of its wine and spirits and watches and jewellery remained weak due to the economic downturn. Sales for the quarter were €4.14 billion, compared with €4.16 billion a year earlier. The company, the world’s leading luxury products group, turned in revenues of €11.9bn in the first nine months of 2009, while delivering a solid performance in Asia, particularly in the burgeoning Chinese market. The increase in revenues generated in Asia – where the number of Louis Vuitton stores is set to double from 15 to 30 by the end of the year – has almost entirely offset falling sales elsewhere in the group, such as from the watch and jewellery division. In the first nine months of the year, the watch and jewellery division reported €533m sales, compared to €656m during the same period last year, a fall of 19 per

cent. However LVMH said this was not indicative of a weakening performance in any of its key watch and jewellery brands, such as TAG Heuer, but the results of the soon-to-end de-stocking process. “The watches and jewellery business group recorded a revenue decrease in the

Damas CEO resigns over ‘unauthorised’ $165m ubai-based jewellery retail group Damas has announced the resignation of its CEO and managing director Tawhid Abdulla following the disclosure of his having made “unauthorised transactions”. The company has now appointed Hisham Ashour, the former deputy CEO, to take over from Abdulla, who is understood to have made unauthorised transactions to a value of nearly $165m. The company also said that Tawfique Abdulla, Tawhid’s brother, would now act as managing director on a day-to-day basis. "The company today announces that it has accepted Tawhid Abdulla’s resignation as managing director and CEO due to his disclosure to the board of what is understood to be unauthorised transactions conducted by him. The full extent of these transactions has not been ascertained at this time but the company’s initial estimate is that these transactions could amount to approximately $165 million,” it said in a statement last month. Since the announcement, Damas has confirmed that Tawhid Abdulla and two other executives would be repaying almost $165m to the firm. The company said that the Abdulla brothers, who together own more than 50 per cent of the Dubai Nasdaq-listed firm, had agreed to repay all the money involved, but no further details were given. “The three Abdulla brothers have signed a formal settlement agreement with the company in which they have committed to repay in full and in cash the full value of the transactions under review,” said a further company statement.

8 The Jeweller November 2009

first nine months of 2009 due to de-stocking by distributors. In a still challenging environment, TAG Heuer is winning market share, notably in the US, and has focused on its iconic lines, such as the automatic version of Aquaracer 500 and new models in the Monaco line. Hublot showed a good level of resilience despite the crisis. Montres Dior successfully launched the Mini D and Chaumet saw good growth at its own retail stores in the third quarter,” said the company in a statement. According to the financial press, LVMH is being closely watched by retail analysts as it is thought by some that the company may be on the verge of a major restructure. LVMH itself said that it would continue to make new international investments through the remainder of the year, including the opening of a Louis Vuitton store in Mongolia. Interestingly, retail industry experts are predicting that this quarter may turn out to be the the weakest for the world’s luxury goods companies, as demand for luxury clothing, jewellery and accessories is showing signs of stabilising. In a further indicator for the UK market specifically, British fashion, jewellery and accessories brand Burberry also reported a 5 per cent rise in sales recently, again beating expectations.

David Morris makes Dubai debut uxury jeweller David Morris has opened a new boutique in the latest prestige shopping centre in Dubai, The Dubai Mall. The David Morris brand, which is already popular with buyers from the middle eastern region, is one of several new outlets opened under the David Morris fascia by Morris’ son and company creative director Jeremy Morris. The Dubai store follows similar boutique openings in Palm Beach in the US, Moscow and Qatar, and Morris says there are plans to open a further store in Riyadh. “I’m looking forward to expanding the brand throughout the Middle East, along with our Dubai partners, over the course of the next few years,” said Morris.

Industry News

JEWELLER

Risque Rox ad campaign

Herbert Brown plans for goldfuelled expansion in 2010 awnbroker and jewellery chain Herbert Brown is planning a major expansion programme, with 10 new stores scheduled to open across the UK by June 2010 and ‘more thereafter’. The company, which operates 30 stores around the country, plans the fast paced expansion after enjoying a year of strong trading, fuelled by the recession and the spiralling price of gold. “The combined effects of the recession, which has seen more people looking for short term loan options, coupled with the increase in the value of gold has seen business boom,” said a company statement. Of the new stores planned for the first half of the year, four will be in Greater Manchester with several others scheduled to open in the firm’s native Yorkshire and elsewhere throughout the north of England. The first of the new stores will open in Derby, Morecambe and Wolverhampton, all of which are scheduled to begin trading this month and all of which were previously Signet stores, trading as H Samuel or Ernest Jones. The company is also planning to open several of what it is calling ‘gold kiosks’, which will be set up, in the run up to Christmas, in the shopping districts of major cities, and at which customers will be able to sell their unwanted gold and jewellery. “The business is experiencing its highest level of footfall in its 169 year history, due to a shift in perception of the pawnbroking industry and the opportunity to trade online. As a result our customer base has widened; we are now seeing a surge in customers seeking to buy vintage jewellery. In addition, pawnbroking has become one of the swiftest ways to access short term loan facilities for individuals and businessmen alike. The next 18 months will see a dedicated expansion strategy rolled out across the country, with significant investment and job creation,” said Rod Mason, the managing director of Herbert Brown. Herbert Brown expects that its expansion plans will generate around 60 new jobs. The company was recently given the title Employer of the Year – for the second year running – by the National Pawnbroking Association.

lasgow-based jeweller Rox has unveiled a ‘risque’ new advertising campaign, featuring its new faces, Miss Scotland winner Katherine Brown, and model Amanda Hendrick. The retailer has released a series of images of the two models for its Christmas campaign, taken by leading Scottish fashion photographer Stephen Kearney. The shots are “a dramatic departure from the safe imagery usually favoured by premium jewellers”, says the company. “We wanted to step it up a gear this Christmas to come up with a really high-fashion-led campaign to encourage our customers to get creative with their jewellery for the festive season,” said Rox co-owner Kyron Keogh. “We’re really proud of our Scottish heritage so it was only fitting to have Miss Scotland, and Amanda, who has been hailed as Scotland’s top model by industry experts, at the heart of our campaign,” he added. Rox, which was founded in 2002 by Keogh and business partner Grant Mitchell, runs three stores in Glasgow, in the city’s Argyll Arcade and Silverburn and Braehead shopping centres. The firm has also just opened a new £1m flagship store in Aberdeen’s Union Square, which opened in October. Also last month, Rox won the title of Independent Retailer of the Year at the Scottish Retail Excellence Awards. The company fended off competition from Boudiche, A Gift Tae Gie and Uig Community Co-operative to scoop the prize.

The Voice of the Industry 9

Industry News

JEWELLER

In-store music victory brings retailers near £20m payback legal ruling over the copyright fees that shops are charged for playing music in stores could save retailers £5 million a year, says the British Retail Consortium (BRC). Shops, pubs restaurants and other businesses that play recorded music (including from television and in-store or conventional radio stations) have to pay for a licence. In 2005, Public Performance Limited (PPL), the company that collects these fees on behalf of the record companies, imposed dramatic increases in the licence fee charges. Some outlets saw their costs more than double overnight. According to the BRC, for example, one clothing retail group’s bill rose from £176,000 to £408,000 a year and the bill payable by one tiling chain went from £25,000 to £73,000.

On behalf of a broad coalition of its members, large and small, the British Retail Consortium (BRC) joined with others in a legal battle to fight the unjustifiable scale of these increases, a fight that they won last month. The Copyright Tribunal has now ruled that the increases were excessive and should be capped at ten per cent. PPL has said it will appeal but, if the decision is upheld, retailers stand to benefit to the tune of £5 million a year as well as receiving back the money they have been overcharged. The excess charges levied over the past four years, says the BRC, could be as much as £20 million, an amount that retailers could now receive as a refund. In 2008 alone, PPL collected £127.6m in fees from UK

businesses of all types. Around £11m of this is believed to have come from retailers. “We welcome the Tribunal’s decision which establishes a level of tariffs that’s fair for all parties. This is a great example of the BRC helping retailers large and small to pull together and fight an unfair cost that affects them all. “Being able to play music or have a radio on is important for customers and staff in many shops. Artists and composers are entitled to a payment but increases on this scale cannot be justified and are out of reach for many retailers. We regret that PPL is not willing to accept the outcome and has decided to appeal,” said Andrew Opie, the BRC’s food and consumer director.

Birmingham jewellery festival celebrates 10th anniversary rilliantly Birmingham, the annual contemporary jewellery festival with its roots in the city’s Jewellery Quarter, reaches its 10th year this autumn. Established in 1999, when a group of local Birmingham designers joined forces to promote themselves as a single brand, the event has grown in scale and importance, and now attracts designer makers from around the world. The programme for 2009’s event – which runs from the 21st of this month through to February 2010 – includes two exhibitions to be held at the Birmingham Museum & Art Gallery. The first, Flux, is a regular selling show, attracting international entries from both new and established designer makers. This year there will also be a tenth anniversary retrospective show, featuring the work of seven designers whose jewellery has headlined Brilliantly Birmingham in years past. The retrospective will include the work of designer Mikaela Lyons, who produces body adornment pieces and smaller scale jewellery made using

10 The Jeweller November 2009

digitally manipulated photographs. Old travel images have, in her work, been mounted onto oxidised copper settings and covered in laser-cut acrylic, to create ‘fashionable, high impact and theatrical pieces’. “As a student I was always inspired by the nature of the work on show at past Brilliantly Birmingham exhibitions and to have my work included in this special year on all of the anniversary posters and brochures is a real honour,” said Lyons. Also appearing in the anniversary show is Kathryn Marchbank (from the UK) Betty Pepper (UK), Lisa Juen (Germany/China) Anke Plath (Germany), Vaishali Morjaria (Kenya) and last year’s profiled designer Sally Collins (UK). All the designers featured this year initially exhibited at the Birmingham showcase early in their careers, since when many have gone on to establish successful careers, showing their work around the UK and internationally. This year’s festival, which is sponsored by the Birmingham Assay Office, will also incorporate Paradigma, an international

exchange between Birmingham School of Jewellery and Barcelona’s Escola Massana, as well as a series of professional development seminars sponsored by Business Link and the city’s Assay Office, which is also running a special open day for the public. There will also be a return of the event’s popular ‘Walks in the Quarter’ and Open Workshops, which provide a unique opportunity to see behind the scenes in designers’ and jewellers’ studios. The festival will include a number of associated events by individual designer makers, such as James Newman and Sara Preisler, and a collaboration with Birmingham City University’s New Generation Arts 2010.

Industry News

JEWELLER

Beaverbrooks staff ‘most charitable’ in the United Kingdom

From Left to Right: Peter O’Hara, Workplace Giving UK; Jenna Green, Beaverbrooks; Steven Timms, MP; Darren Daffin, Beaverbrooks; Maria Jacobs, Workplace Giving UK

taff members at high street multiple Beaverbrooks have been recognised for their generosity, winning an award for their charitable donations during the past year. The company has been officially recognised as having the ‘most generous workforce in the UK’ at the National Payroll Giving Excellence Awards, held at the Treasury in London in October.

At the ceremony, Beaverbrooks received two awards from Angela Smith, MP and Minister for the Third Sector, and Financial Secretary, MP Stephen Timms. The awards were to congratulate Beaverbrooks on having the ‘best launch of a new [payroll giving] scheme’ as well as for coming top with the year’s most successful payroll giving promotion.

Both awards were won in partnership with the fundraising organisation, Workplace Giving UK, with whom Beaverbrooks worked to promote the employee initiative, with which it first signed up this time last year. Since the scheme was introduced, 31 per cent of the staff at Beaverbrooks, which employs over 780 staff in 65 stores across the UK, contribute to charity through the payroll giving scheme, one of the highest take-up rates the scheme has enjoyed. Together, staff at the firm generated £37,800 for a total of 99 charities in its first year of participation. “We care about our people and our people care about others. We encourage our teams to take part in fundraising activities and sponsored events and match fund any money our people raise for a registered charity. Each year, we contribute 20 per cent of our post-tax profits to charity. Introducing Workplace Giving is another string to our CSR bow,” said Beaverbrooks’ charity and wellbeing manager Susie Nicholas. “New to payroll giving, Beaverbrooks has set up, and delivered, a hugely successful payroll giving scheme. To set – and smash – a target of 10 per cent take-up in just eight months puts Beaverbooks in the elite group of employers that have received a Gold Quality Mark Award and qualification for the National Payroll Giving Excellence Awards. Our judges were encouraged by the immediate impact of the launch, and Beaverbrooks’ continued commitment to engage employees so that they were involved in making payroll giving a success,” said Lee Grant, from award organisers, the Institute of Fundraising.

Burman named as chair of Jewelers of America erry Burman, the group CEO of Signet Jewelers, has been signed in as the new chairperson of the board at the US jewellery industry trade association Jewelers of America (JA). Burman, who is the head of the largest speciality retail jewellery group in the world, succeeds John Green, of Lux Bond & Green, West Hartford. Burman was elected during JA’s board of directors meeting in July, and his appointment was publicly announced in October.

12 The Jeweller November 2009

Burman takes office at what JA called ‘an exciting phase in the association’s development’. He will lead the board as the structure of the association is reorganised, thanks to its recently announced merger with the Jewelry Information Center. “Terry is an exceptional leader in the jewellery industry, and he has greatly enhanced Jewelers of America with his wisdom while serving on our executive and ethical initiatives committees. We are privileged to have him guide our board

of directors as they continue the significant work that Past-Chair John Green oversaw during his term,” said President & CEO Matthew A. Runci of the appointment. “It is an honor to serve as chairman of Jewelers of America. I look forward to working with my fellow board members, as well as with JA’s staff, to continue the important work on national and global industry issues that JA is undertaking on behalf of its members and the fine jewellery retail marketplace,” said Burman.

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Industry News

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Jeweller magazine to be viewable online this month rom November, The Jeweller will be launching an online edition of the magazine. As well as the printed version now being published ten times a year, the online version will give members an additional opportunity to view the complete magazine on their computer. The software used for viewing the magazine electronically is the very latest available; pages can be turned and viewed singly or as spreads, the page size can easily be increased or decreased at a flick of a button, and articles of interest can be printed out. The November issue will be the first available online on our newly updated magazine website at www.thejewellermagazine.com, where other relevant information about The

Jeweller, such as circulation, readership details and advertising rates can also be found. Publisher Neil Oakford commented: “With the magazine now being published ten times a year, these are exciting times for all of us here at The Jeweller magazine – we are committed to maintaining the magazine’s position as the leading jewellery trade magazine in the industry. With the support of the NAG’s resources fully behind the magazine, feedback from members informs us that we are delivering a high quality product that they enjoy reading and which is beneficial to the running of their businesses. Plus, the increase in issues will ensure The Jeweller remains topical and always up

Montblanc opens new Parisian boutique uxury goods brand Montblanc has opened a new 500sqm two storey ‘4810’ boutique in the French capital, the brand’s fourteenth boutique of its kind to open around the world. The Paris store, which will act as the brand’s flagship in the city, is in Rue de la Paix in the heart of the shopping district. It will sell a comprehensive range of the German brand’s signature writing instruments, jewellery and watches, including several limited edition and unique pieces. The new shop will also double as an art gallery, in which Montblanc plans to host exhibitions of work by ‘promising artists’.

to date. The introduction of the online version is a natural progression for the magazine, which will reinforce awareness as well as help members access the magazine more immediately on publication should the current postal strikes become a long, drawn out affair.” As the magazine is produced on behalf of the NAG, the online issue will only be able to be accessed by its members and associates via a user name and password. More information regarding these details will be announced soon.

Diamond market ‘stable’, says De Beers T

he market for diamonds has begun to stabilise following the abrupt drop off in demand earlier in the year, according to the diamond mining giant De Beers. The flagship mines operated by De Beers in Botswana is now operating at 80 per cent of its capacity, the company’s CEO in Botswana, Sheila Khama, has said. While consumption is still considerably lower than De Beers would normally expect, “the abrupt rate at which it was dropping has started to stabilise,” Khama told the local press in South Africa. "We are seeing an improvement in the level of sales and the availability of finance to our clients as the pace of recovery quickens," she added. De Beers’ Chairman Nicky Oppenheimer has also said recently that, globally, demand was “likely” oustripping supply. He confirmed in interview that both Chinese and Indian jewellery consumers were showing “a tremendous desire” for diamonds, and that the two countries were among the most important markets for De Beers and other diamond suppliers in the future. Around half of all diamond sales are still accounted for by the US market.

The Voice of the Industry 15

Industry News

JEWELLER

Cattin quits Franck Muller group over “disappointment” in management atch designer Rodolphe Cattin, founder of the Rodolphe Montres and Bijoux watch company and the Rodolphe and Co. design studio, has announced he is ‘quitting’ his role at the Franck Muller group, the firm that owns the two brands. Cattin, who has resigned from all operational activities within the group as of the end of October, will remain a minority shareholder in both Rodolphe Montres and Bijoux and Rodolphe and Co. However, despite his continuing relationship with the group, he nonetheless issued a statement describing what he saw as “a series of disappointments” over parent Franck Muller’s management. “It is with a mixture of sadness and relief that I am leaving the group with which we became associated four years ago, because

I no longer sense that the group has any wish to develop the brand bearing my name. The same is indeed true of all the other ‘small’ brands within the Franck Muller group,” said Cattin in a statement. “For the past four years, I have poured all my energy into this magnificent adventure and our tight-knit and motivated team was able to accomplish some excellent development work during the first two years of the partnership, resulting in particular in the Watch of the Year award won in 2006 for the Instinct Chrono model, followed by a second prize in 2008. However, these did nothing to consolidate the brand’s position within the group.” He went on to suggest that Franck Muller CEO Vartan Sirmakes was not sufficiently interested in his brands to ensure their future development.

“On a more global level, conditions have steadily deteriorated and it is now quite obvious that the group CEO, Mr. Vartan Sirmakes, has chosen to devote his energy and his efforts elsewhere. Despite many discussions on this issue, there are no longer any signs of a will to improve matters,” he claimed. “In light of these circumstances, I prefer to withdraw and in doing so leave my associates free to make their own choices, non-choices, decisions and non-decisions. I am above all a creative designer with little inclination for corporate politics, plotting and U-turns. And I strongly deplore the attitude and behaviour of some of my closest associates who may well see in my departure a chance to grab the spotlight.” Franck Muller did not comment.

Steven Jordan chosen as Valuer of the Year teven Jordan, the resident valuer at the Goldsmiths’ Company Assay Office in London, this year won the coveted David Wilkins Award, more commonly known as the Valuer of the Year award. Jordan, described by award organisers as “a popular winner”, was presented with his trophy at this year’s National Association of Goldsmiths Institute of Registered Valuers’ Conference held at Loughborough in September. Jordan was chosen from a group of five finalists, who themselves were shortlisted for their exemplary standards of professionalism and integrity. The trophy honours the late David Wilkins, a former Chairman of the NAG’s valuations

16 The Jeweller November 2009

committee. Wilkins, who died in 1994, helped encourage high standards in jewellery valuation throughout his long career in the sector. Steven Jordan, who received the award from Wilkins’ widow Margaret, was the award’s 15th recipient. Steven Jordan has headed up Assay Office London’s valuation team, in conjunction with The Guild of Valuers and Jewellers, since April 2008. He is a Fellow of the National Association of Goldsmiths and a Fellow of the Institute of Registered Valuers and is a qualified gemmologist and diamond grader specialising in domiciliary and trade valuations on items of jewellery, silver and timepieces. Before joining the Assay Office, Jordan worked for several jewellery

businesses, including Phillips Auctioneers in New Bond Street, jewellery brand Mappin & Webb and royal warrant holders, Carrington and Co.

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JEWELLER

New licensing deal Irish retailer opens new announced by Yorkshire store Zeon and Braun eon, a subsidiary of the Herald Group, has announced an exclusive partnership with German consumer electricals brand Braun, to produce the company’s future ranges of clocks and watches. The new worldwide partnership between Zeon and Braun’s parent company Proctor & Gamble will see the first new-generation Braun watches and clocks launched at next year’s key BaselWorld exhibition, to be held in March 2010. Zeon, which is the largest watch company in the UK, was one of the first companies to be involved in licensing fashion and consumer brands for watches and clocks. It already holds the watch licenses for several brands including fashion brand Bench, Italian moped firm Lambretta, superclub Ministry of Sound and British car company Mini. In recent years, Braun has moved away from manufacturing timepieces. “As much as Braun clocks and watches have become iconic products over the last three decades, they do not belong to Braun’s core business categories any more,” explained Markus Strobel, the vice president of P&G Global Braun. “To ensure that consumers worldwide will continue to be delighted with great clocks and watches under the Braun label in the future, we have made a conscious choice to partner with a strong external, highly specialised partner.” Richard Tibber (pictured), the managing director of Zeon in London, welcomed the collaboration. “We will be developing a full range of Braun clocks and watches, and will be reintroducing some of the past designs which today have become collectables, as well as new, exciting and innovative products,” he said.

Tributes pour in after death of DDC President Jacob Banda acob Banda, the president of the New York Diamond Dealers Club (DDC) has died, aged 62, after a short illness. Banda, who held his post at the DDC for the past nine years, was also a member of the World Federation of Diamond Bourses (WFDB). Born in Israel, Banda had lived in the US since 1964 and had been a member of the DDC for the past 30 years. Having started his career in the jewellery industry as a diamond cutter, he later specialised in fancy coloured stones. Several members of the industry expressed their sorrow upon hearing the news. “On behalf of CIBJO, I would like to pass on the organisation’s heartfelt condolences and best wishes to his wife and family. Jacob was a dear friend, and I know he will be sorely missed by his many friends and colleagues in CIBJO. He was a highly professional and experienced member of the world diamond community, and always wanted to know what was happening in the jewellery pipeline,” said CIBJO President Gaetano Cavalieri.

18 The Jeweller November 2009

Left to Right: Mayoral consort Mr Jones; Angela Frizzell, marketing manager for Argento and Ros Jones, Civic Mayor.

eading Irish jewellery retailer Argento is celebrating the opening of its 28th store, which opened its doors in Doncaster at the end of October. The store, which is the company’s first in Yorkshire, is midway through an aggressive expansion programme throughout the UK, with further store openings planned. “We chose Doncaster because of its flagship shopping centre, overall regeneration and the financial investment that the town is enjoying. It is a town that is going places. The store has already enjoyed a wonderful reception from local shoppers, and the official opening event has highlighted that there is a significant market for high fashion, collectable jewellery pieces,” said Angela Frizzell, the marketing manager for Argento. The firm, which was founded in 1997 and which claims to be ‘bucking the trend and enjoying retail success’, is one of the largest stockists of the popular Thomas Sabo brand.

Safeguard runs first radio ad campaign afeguard, the independent jewellery valuations service at the Birmingham Assay Office, has run a small advertising campaign on the West Midlands-based commercial radio station, Smooth Radio. The campaign, which kicked off on 6th October and ran for three weeks, was timed to promote the SafeGuard jewellery, watch and silverware valuation days at the Assay Office headquarters.

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NAG News

JEWELLER

Goldsmiths’ Fair 2009 The NAG’s membership administrator Harshita Deolia reviews the work on sale at this year’s exhibition. s the golden hues of autumn were setting in for a warm October afternoon, I thought I’d take a trip down to Goldsmiths’ Fair to see the talent that was shining in the rather grand venue that is Goldsmiths’ Hall. For the past 27 years, Goldsmiths Fair has presented jewellery and silverware by some of Britain’s finest talent, and this year’s event was certainly no exception. One of the nicest things about the fair is that you see well Roger Morris established names exhibiting side by side with new, up-and-coming designers, all of whom are happy to spend some time discussing their work with you. Seeing their passion and enthusiasm for what they do gives you an understanding of each designer’s unique style and inspiration. As I looked around, I came across some unusual pieces by Zoe Arnold. Her collectable, one-off pieces are inspired by poetry and have a distinct style about them. I particularly liked her Memory Necklace, which is normally made up for a customer based on their personal memories and artefacts. “Sometimes people have an odd earring from a pair that they really liked, or perhaps Zoe Arnold a ring that’s been passed down that they don’t wear because it’s not quite their style. Instead of getting rid of these objects, I turn them into Memory Necklaces. You can add or take pieces off as you want, or wear all the memories together.” An unusual collection of brooches by Roger Morris also stood out, thanks to the unusual combination of materials used – gold, acrylic, resin and gemstones. “I’m a great believer in drawing. The inspiration from these brooches came from working on Renaissance and architectural studies,” he said. In each piece, the design has been laser cut into acrylic and filled with resin, with gold then riveted to it. Morris has used a slightly unusual clamp setting to secure the stones in place, a technique also used on his collection of rings. It was really nice to finally see the 24 carat gold jug created last year by Martyn Pugh, which has been much talked about for being the largest object created out of almost pure gold; until now the largest known was a wedding ring. The jug looked so fluid and effortlessly created, that I didn’t quite realise how heavy it was. The designer allowed me to handle the piece, and even kept a straight face when I almost dropped it (I didn’t realise its £250,000 value at the time). As a self-proclaimed “sucker for a challenge”, Pugh said his next project will be a set of palladium jugs, and maybe even a Martyn Pugh with his 24 carat gold jug platinum jug one day too.

New Member Applications To ensure that NAG members are aware of new membership applications within their locality, applicants’ names are published below. Members wishing to comment on any of these applications can call Harshita Deolia on 020 7613 4445 or email: harshita@jewellers-online.org within three weeks of receipt of this issue.

Affiliate Applications Sterling Mint (Meer Jalali) Sudbury, Harrow Cash My Gold (Justin Pritchard) Crewe, Cheshire

IRV Applications If members wish to comment on any IRV applications they should contact Sandra Page on (029) 2081 3615.

Application to become a Member Patricia Negus PJDip PJGemDip PJValDip, Durham Ian Saunders PJDip PJGemDip PJValDip DGA, Market Harborough Jill Howe PJValDip, Tavistock

Upgrading from Member to Fellow Georgina Deer MIRV PJDip PJValDip FNAG FGA DGA, Manchester Michael S Inkpen MIRV FGA, Torquay

NAG Staff News here is a new face at NAG HQ: Ritu Verma has recently taken over the role of PA to Michael Hoare following the departure of Kate Richards, who has moved on to pastures new. We all wish Kate well in the future and welcome Ritu to Luke Street. Ritu is looking forward to her new role and is hoping that her strong family ties within the jewellery trade will help on her own jewellery career path in the future.

The Voice of the Industry 21

NAG News

JEWELLER

Council Meeting October 2009 Reports from each department were given, after which Michael Hoare offered a few words of optimism to encourage all members, emphasising that the jewellery industry is still going from strength to strength.

he final NAG Council Meeting for the year 2009 was held at Pewterers’ Hall, London on Tuesday 6th October. Upon arrival at the Pewterers’ Hall, members were greeted by the Beadle, who gave a tour of the building and explained its

history. Guests were then led to the Court room for the Council Meeting to commence. The meeting began with Frank Wood welcoming members, followed by a two minute silence, which was held in honour of Jim Collier and Jack Clelland-Brown.

Council members were joined by guest speaker Mike McGraw, the director of Development Initiatives, who gave a presentation on the NAG’s newest education initiative, JetPro. Mike discussed the benefits of the course and Council members were given the opportunity to voice their opinions on the new proposal. Finally the meeting concluded with a buffet lunch in the grand Livery Hall, after which guests departed for the day.

NAG attends GFMS gold launch ontinuing an annual tradition, the international precious metals consultancy GFMS announced the launch of its Gold Survey 2009 on 14th September at Grocers’ Hall in London. GFMS Chairman Philip Klapwijk presented the main findings of this bi-annual report on the gold market. In addition to offering a review of recent developments in all areas of the gold market, the presentation looked at future possibilities for the various components of the supply/ demand balance and what this might mean for the gold price. A couple of interesting points regarding gold supply and demand were noted: • Global Scrap supply surged to a record high of almost 900 tonnes in the first half of 2009. The majority of the action took place in the first quarter of the year, in reaction to high gold prices, which reached record local levels in several instances. Distress selling, in reaction

22 The Jeweller November 2009

to GDP declines or slowdowns, added to the total. Significant gains in scrap supply were seen from the Indian sub-continent, the Middle East and East Asia, while Europe and the US posted new record highs. • Jewellery offtake fell by almost 25 per cent in the first half of 2009, to around 760 tonnes. Losses were recorded across the board of key jewellery fabricators, with India and Turkey registering the sharpest falls. China proved the exception, as its fabrication rose by 7 per cent. The weakness of jewellery offtake in the period is highlighted by it falling below levels of scrap supply. The second half of 2009 is expected to register another fall, taking the full year total to its lowest level in over two decades. The 40 page publication can be ordered direct from GFMS for £250 – telephone 020 7487 1750 or email: sales@gfms.co.uk

GFMS Chairman Philip Klapwijk

NAG News

JEWELLER

Jim Collier 1945-2009 A tribute by David Callaghan t is difficult for me to remember exactly when first I met Jim, for it seems that I have known him throughout my ‘NAG life’. However, the records show that he was elected to the NAG Council in 1977, which was the mid-point of my Chairmanship all those years ago. By then he had already endeared himself to those of us who regularly attended the NAG Annual Conference. In no time at all, it seems, he was elected to the NAG Executive and became NAG

Chairman in 1986. Following his term of office he became very active in the affairs of JoGBI, becoming its Chairman in 1991. JoGBI was the NAG’s promotional company, whose main responsibility was the annual trade fair now known as IJL. His energy and enthusiasm in that role laid the groundwork for what is now a highly successful and thriving relationship between the NAG and IJL. However anyone can look all this up in the records: it won’t tell you anything about Jim, the man. Let me try to do this. Jim was a ‘sunny’ man: whenever you met him he brightened your day. Invariably smartly dressed for the occasion (even if there wasn’t one!), his personality brought cheer to the forefront. So much so that he could always be relied upon to play the part of the clown. He could be the clown, and often was, and years ago many people thought of him as only a clown. How wrong they were. He was a good businessman, and was very highly respected throughout the areas of the trade who knew him. He was well known in Europe too, because he was a very early member – if not a founder member – of the Goldring buying group. Amongst his many friends there, he was affectionately known as Lord Necklace – a pun on his family name. However, like many ‘clowns’, Jim had more than his fair share of sadness in his personal life. He hid it well though, and his children are fortunate to have inherited the sunny side of his personality. When I look back

over the many hours of good humour I have shared in his company, I realise how fortunate I am to have known Jim. Thinking of the alphabet there is hardly a letter beginning a word that would not be part of Jim’s character. Starting at the far end, Zest comes to mind – zest for life; Youthfulness; Willingness; Vigour – and so on until you come to the letter that begins it all, the letter A. Amongst the words beginning with that letter is the dread word Alzheimer, and it was that sinister condition that robbed Jim of his personality and his life. It was a cruel blow to him, of course, and to his family and friends. On the last Friday of September a huge crowd gathered together on the most beautiful of days – it was England at its autumnal best – to say goodbye to Jim. We all had our favourite Jim ‘story’ and every one was one of fun: F is the easiest letter in the alphabet to pin on Jim. Many years ago I came across some lines written by the American poet Bret Harte: If, of all words of tongue and pen, The saddest are, ‘it might have been’ More sad are these we daily see, ‘It is but hadn’t ought to be’ Those words sum up my sadness and real sense of loss at Jim’s death. All of us who knew him have our own favourite memory and I am sure all of us are saying the same thing; in the song made famous by another great ‘clown’, the late Bob Hope: “Thanks for the memory.”

Understanding data protection

NAG runners raise £500 for charity

ata protection may not be the most thrilling of subjects for a seminar, but with companies now holding vast amounts of personal information, the ownership, use and safeguarding of this sensitive data has become a national issue. Luckily three erudite speakers, from varying data protection backgrounds, were on hand to guide CEO, Michael Hoare, information manager Faye Hadlow and finance administrator Henrik Dinesen through all the major themes of the vast subject. There are no hard rules governing data protection, rather there are underlining principles guided by the Data Protection Act. The real key to good information handling comes down to using common sense and fairness. Individuals should ideally have had to take positive action in order to supply their personal information. Once received, the company should minimise the use, access to, storage time and processing of this sensitive information, as well as regularly ensuring it is kept accurate and secure. Breaches of data protection are headline news, especially when it occurs on a large scale involving sensitive information. Companies spend thousands in fear of hackers and thieves breaking into their systems when this only accounts for 3 per cent of the national recorded breaches. Half are in fact down to the businesses’ own employees, a problem easily reduced by good staff training and adequate security procedures. More information on all aspects of data protection can be found on the Information Commissioner’s office website at: www.ico.gov.uk

24 The Jeweller November 2009

hree staff members from the NAG have raised over £500 for charity after successfully completing a 10k run in London on Sunday 18th October 2009. Henrik Dinesen, Faye Hadlow and Jason Harrison were sponsored by family, friends and NAG members to run on behalf of Cancer Research UK. It is not too late to donate. If you would like to sponsor the NAG runners please visit: www.justgiving.com/NAG-NAG1/

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Autumn launches from watchmakers, fine and fashion jewellery brands and up-and-coming designer makers.

EASTERN MYSTIC

The Jahanara Rani Necklace from Eastern Mystic Jewellery is designed as occasionwear: the showstopping piece, for which matching earrings are available, is made up of several necklace strands embellished with faceted amethyst and fairtrade 24 carat gold vermeil. As the company says, “it would really complement a flattering low neck cocktail dress or ball gown”.

BREIL MILANO

LAPPONIA

Bloom is a clever two-in-one collection from Italian jewellery and watch manufacturer Breil Milano. The piece pictured starts life as a choker, featuring a chunky steel heart. By twisting a hidden clasp, the necklace grows to reveal a cascade of metal chains with either black onyx or steel disc adornments. This can then be worn as a more delicate-looking full length necklace. Bloom is available in both choker to necklace and bracelet to necklace versions, in stainless or polished steel.

Celebrated Finnish jewellery brand Lapponia, which celebrates its 50th anniversary next year,has introduced its first guest designer initiative. The first of these guest designers working under the Lapponia brand banner is Finnish gem cutter and designer Timo Mustajärvi. Known for his uncompromising design ideology and his passion for wellspecified and clear forms, it is in this spirit that Mustajärvi has created Mondo, his debut collection for Lapponia (pictured).

LAURA STRAND

Laura Strand's collection of soft and sculptural pieces are intended to be reminiscent of wintery coastlines and moody, dramatic skies. Called Wave, the collection is made from recycled silver with a satin finish. Prices are from £70 for a ring to £380 for a bangle.

ZELIA HORSLEY

London-based fashion jewellery designer Zelia Horsley has released several ranges of new jewellery this year, including the Cock & Bow Story range of which this necklace is part. All Horsley's jewellery is handmade and features coloured resin enamels and Swarovski crystals to create dramatic and unique pieces.

CASIO

Japanese brand Casio has launched a new model watch to celebrate the F1 success of its brand ambassador Sebastian Vettel. Fittingly, the watch, part of Casio’s Edifice collection, has been inspired by motorsports. The chronograph model has a steel case carrying Vettel’s signature and logos, engraved on the casing base. The watch carries Vettel's team colours of red, blue and yellow. The watch is limited edition with only 100 pieces available.

Derby-based designer jewellery brand Flash Jordan has unveiled a new range of cufflinks and tie links called Britton Bespoke. The collection’s tie-links (pictured) are a new and unique concept, in which the mini handmade silk tie wraps around the outside of the cuff and buttons down, keeping the cuffs neatly tucked away inside. The mini tie attaches to the silver cufflink bar with a watch strap fitting, so the tie style can be changed easily or the silver link can be worn alone.

KENNETH JAY LANE

FLASH JORDAN

Part of a new 25 piece collection, this striking antique-effect gold and turquoise coil snake bracelet is designed to coil, serpent-like, around the wearer’s wrist, adding drama and luxury to a daytime or evening look. The turquoise stone and crystal embellishment is designed to give the gold setting an antique luxury feel. Priced at £175.

JUNGHANS EMILY RICHARDSON

Tops and Tails is a collection from designer Emily Richardson that's all about dressing up: these evening wear pieces are handmade with onyx and Australian diamonds, using fairtrade-sourced 18 carat gold from Oro Verde. The prices for Richardson's pieces are £2000 for a necklace, £2500 for a ring and £3000 for earrings.

The new Mega 1000 Titanium watch from Junghans is a key new model in the brand’s collection. The watch is essentially a ‘space age’ variation on its 2005 classic, the Mega 1000. Noted for its high strength-toweight ratio and typically used for sporting goods, titanium has grown enormously in popularity within the watch industry, having proven to be both dent and corrosionresistant, as well as durable and lightweight.

A. LANGE & SÖHNE

The Lange 31, the first mechanical wristwatch to feature a power reserve and constant force delivery across an entire 31 day period, is now available in pink gold. Initially launched in platinum two years ago, the new version adopts several of the same design and technical features of the company's original 1990 Lange 1 watch, including the off-centre outsize date, the lancet hands and the power reserve indicator.

FIFI BIJOUX

Nova is a new collection from designer Tamara Tugnova that has been made from recycled silver. Tugnova’s designs are intended to demonstrate ‘the tension between the organic and designed world’ and are priced between £180 for the ring (pictured) and £600 for a necklace.

Jewellery brand Fifi Bijoux has produced a fun set of seahorse cufflinks, made from 9 carat gold. Designed as a possible wedding gift for grooms (seahorses partner for life, see – ahhh), these are made with ethically-sourced gold and carry a retail price of £480.

TAWNY PHILLIPS

TAMARA TUGNOVA

Tawny Phillips designs jewellery for men and women, adopting a rugged, chunky but fluid style, such as with this teardrop shaped bracelet. Her work, which sells for between £65 and several thousand pounds, has been picked up by designers Donna Karan and Paul Smith, and employs a wide array of materials from sharks' teeth to black pearls and bronze.

PUNKY ALLSORTS

Singer and jeweller designer Alayna Slater has brought out a new range of sweety bracelets, which have been seen on a whole catalogue of celebrities including Katy Perry, Fearne Cotton and Cheryl Cole. The new purple ‘bow’ bracelet is one of several new colour and pattern combinations priced at £14.50.

TOMASZ DONOZIK

These godfather-esque ‘horse head’ cufflinks are made by jeweller of the moment Tomasz Donocik. Fashioned from yellow gold-plated silver, these unusual cufflinks are finished with a faceted onyx sphere. They cost £315 a pair.

SWISS MILITARY WATCH

BALAGAN

These Tower rings, which made their debut at this year’s Autumn Fair at the Birmingham NEC, are intended to build upon the bead phenomenon sweeping the industry. The collection will feature approximately fifty styles of ring that can be worn either individually or as a set, and includes birth stones, flowers and butterfly designs.

SWAROVSKI

Red and elegant, the Parellele collection by Swarovski has a sparkling and trendy look perfect for the Christmas party season. The gold-plated ring (pictured) features a facetted crystal in a deep red shade which, coupled with the matching necklace, offers wearers a bold eyecatching look.

ROCIO ILLUMINI

Rocio Illumini is a silver, rhodium-plated brand made with ‘Enlightened’ Swarovski elements distributed by CL Edwards. Launched at Spring Fair this year, the brand added two new limited edition sets to the collection at IJL, which featured black cubic zirconia from Swarovski, only 250 of each being produced. The company also enhanced its Eridani collection with Swarovski champagne stones. Prices from £40 to £175.

ANNABEL PANES

Sienna Neckwear is a new collection of earrings, pendants and necklaces from Domino. The company has combined classic design principles with contemporary styling; taking its cue from the already-successful Sienna ring mounts, the neckwear collection is available in 18 carat white gold, pre-set with diamonds, each is ready to be set with a coloured stone or diamond of your choice.

DOMINO

The Swiss Military Watch brand has unveiled a new record breaking watch, called 20,000 Feet, which is the only mechanical timepiece on the market that is able to descend more than 20,000 ft. The watch, which can withstand the pressures equivalent of 750 kg/cm2 experienced at the bottom of the ocean and has apparently been tested to withstand major blasts, is now duly featured in the Guinness Book of Records.

The Mali collection by Annabel Panes has been inspired by the West African country of Mali. According to Panes, “the pieces tell the story of the River Niger. The bird’s eye view of the river inspired the line and shape found in each link that makes up the collection”. All the collection’s pieces, which cost from £70 to £180, are made from recycled silver.

ohn Ayton co-founded Links of London in 1990 with his wife Annoushka Ducas. Between them they successfully stewarded the company through a long period of growth and expansion that saw Links become, by the time they sold the firm in 2006, a key British luxury brand with a turnover of over £50m. This summer, the husband and wife team launched a new company, their first retail jewellery business since leaving Links of London, which it sold to Greek jewellery and watch manufacturer Folli Follie. The company, called Annoushka, specialises in fine jewellery, which will be sold through its chain of concessionary boutiques in high end department stores. The first, which opened in Harvey Nichols in July, was followed by further openings in Harrods, Selfridges, Liberty and House of Fraser, as well as the West London shopping mall Westfield. Ayton and Ducas – the latter designing all the jewellery for this, her eponymous brand – have high hopes for the new venture; Ayton recently said that he hoped the business would generate £10m in its first year of business. Clearly, Annoushka has been a long time in the making. “This whole new venture came about because we had sold Links of London and we were planning a new project in the jewellery trade. We had actually registered the trademark many years ago, and had always planned something like this but after selling the business we took some time away,” he says. “We spent time travelling and chilling out. Annouska spent a lot of time during this period sketching and working on her jewellery designs. “She also did a bit of consulting, but in the luxury sector, not jewellery. Annoushka felt that she wanted her own thing, and we were also both keen to work on a new project together. It was not a premeditated thing in any other respect than that: we enjoy working together, we enjoy the jewellery industry and this was something that it just seemed right to do.” This project has its roots in another brand purchase made by the couple after their (highly profitable) departure from Links of London. After selling Links, they bought the jewellery concession business Pascal, which operated the 11 concessions in key department stores around the UK which have now been rebranded as Annoushka. The purchase gave the pair a fabulous ready-made foothold in the high end department store concession business. “The opportunity to set up a new brand arose when we were approached and asked

THE

JEWELLER interviews John Ayton,

co-founder of Links of London and partner in new brand, Annoushka

In the midst of the launch of his and his wife Annoushka’s new and much-anticipated jewellery venture, Jo Young talks to John Ayton about the pair’s feelings about selling Links of London, and their hopes for the new Annoushka brand.

30 The Jeweller November 2009

feature

to buy the Pascal business. We knew the business already and in many ways it represented a unique opportunity,” he says. “We bought Pascal because it had the best distribution of any business of its kind in the UK, in terms of department stores. What we wanted to do with Annoushka was always going to be very well suited to department stores, because we knew that we wanted to sell our own jewellery directly and not get involved with wholesale. Essentially, we wanted control of the selling within our own business,” he explains. Ayton recognises that high end department store retailing – which is where he sees the future for the Annoushka brand – is quite a different proposition in terms of sector positioning than the Links of London offer that he and his wife had successfully established. “Anything that we did in jewellery we knew we wanted to be different to Links of London. We wanted to get involved with something more precious. This is different, although I don’t think it is a big leap necessarily; we were doing high-end stuff in Links, using diamonds and making some more precious pieces,” he says. He suggests that the current Links of London product profile – the company is now arguably best known as a middle market silver ‘brand’ – is not especially one of his and his wife’s making. “Links of London were, at the time that we left, doing a lot more precious pieces. The company has really only now reverted to doing silver products, with less aspirational stuff at the higher end. To be honest you can’t really compare the Annoushka brand to Links because it is targeting quite a different market; it is very much about good design and individuality.” Indeed, the jewellery within the Annoushka collection is very different to any branded

“Annoushka felt that she wanted her own thing, and we were also both keen to work on a new project together.”

high street offer, Links or otherwise. In some ways – and the brand name is not the only clue – this feels very much like a labour of love for the designer Annoushka Ducas. She has allowed herself free reign with this jewellery to create the kinds of pieces she loves, for buyers with an enviable budget; this is not a collection, one feels, that has been creatively ‘tempered’ to accommodate the less wealthy or the less adventurous buyer. “The stuff Annoushka is designing now we are making on short runs, and they are crafted, rather than being produced in vast numbers. We are appealing to a more sophisticated consumer than we were with Links of London,” agrees Ayton. “The collection uses a lot of precious stones, lots of big semi-precious as well as diamonds, and they are being used in a much bolder way. What Annoushka is doing now is, basically, bolder. “We have been in the industry for 18 years, and in some ways, we had slightly created our own straightjacket with Links, because we were known for silver. With this, we can be bolder with what we sell. Annoushka has found it hugely enjoyable,” he says. Apart from the 11 department concessions that Annoushka has opened – what were previously Pascal concessions – in stores in London, Leeds, Manchester and Glasgow, the new company will also open its own

The Voice of the Industry 31

‘full’ store in London’s Cadogan Gardens. This, the first of Annoushka’s standalone retail outlets, will operate both as a brand flagship and a studio for Annoushka and the company’s design director Liz Olver. It is from Cadogan Gardens that Annoushka Ducas plans to collaborate on new projects with up-and-coming jewellers, as well as sculptors and artists on small capsule jewellery collections.

“This is a much smaller business than the one we ran before. When we left Links we had 70 stores, and we had to think of everything a year ahead. So for us, having a smaller business is actually fantastic,” he laughs. “The expectations and the whole way of working are completely different to what we were doing before, particularly for Annoushka. For example, she now works directly with a modelmaker and can now enjoy the challenge of making short run pieces to an eight week deadline.”

32 The Jeweller November 2009

“We have been in the industry for 18 years, and in some ways, we had slightly created our own straightjacket with Links.”

In just the few short months since the brand made its debut in Harvey Nichols, Annoushka has since opened across several cities, launched a new collection and is now gearing up for the opening of a London flagship. This is something of a breakneck speed of progress for a retail brand, by anyone’s reckoning; Ayton agrees that the couple’s strong reputation within the jewellery trade has helped them immensely in this regard.

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feature “People have said to us that this is not a good time to launch a new business, but we don’t agree really. It’s tough out there, but there is a great deal of potential for fine jewellery in department stores and we’re in a much better position doing what we’re doing now rather than two years ago. People know us, too, which helps a huge amount. I suppose in some ways people recognise that we’ve been around a bit and we’re a safe pair of hands.” Although he is not saying as much, one does get the impression that there was, professionally and creatively, a sense of relief and release that came from walking away from the Links of London business. Links was, when they sold to Folli Follie in 2006, one of the most successful and widely recognised jewellery names on the high street and there is no questioning the pride that Ayton and Ducas feel from having established and nurtured that business from the beginning. However, as Ayton says, success means growth, which means a loss of creative control. With the smaller scale of the Annoushka business, along with the more individual and specialised designs being produced for – and the resultant higher price tags carried by – this prestige brand, it seems that the pair are once again at the helm of a business that they love and that is still very much ‘theirs’. “Well, yes, to an extent that’s true. It was very difficult to work for the new owners, in the sense that it is difficult to develop and run your own business and then to hand over control to new owners who have different ideas about how that business should be run. It is far better for them and for us that they should go their own way.

“It’s tough out there, but there is a great deal of potential for fine jewellery in department stores.”

We helped as much as we could, and then it was right for us to move on,” says Ayton. “I think they have, by their own admission, lowered the focus of it, made it more available and more mainstream. That inevitably comes when you aspire to opening so many stores, and as far as I know, they are doing very well.” So, after an incredibly busy year, planning and setting up this exciting new venture, will next year be a time of consolidation? Perhaps. “Annoushka has been incredibly busy over the past nine months, putting together her collection. It is not our aspiration to go into a big store opening programme. This is a very personal thing, with a small number of boutiques, and it is very right for now. That’s where we are,” he says. “Annoushka is very detail driven: she really does take it very seriously, in terms of how the brand is presented. She has high standards. I She wants it to be perfect.” Annoushka’s flagship standalone store will open in Cadogan Gardens in London, SW3, on the 21st November.

34 The Jeweller November 2009

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THE

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The Finest Bridal & Eternity Rings F/G VS Quality Diamonds x Platinum x 18 Carat x Palladium 950

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DIAMOND MERCHANTS–MANUFACTURERS 32–34 Greville Street London EC1N 8TB Tel: 020 7242 1080 Fax: 020 7831 1080 E-mail: sales@gemex.biz Website: www.gemex.biz

GEMEX

Making Mark the

he hallmark has been used for hundreds of years, as a legal assurance that a product made from a precious metal is of a certain standard. The act of assaying precious metals began in 1300 and is one of the earliest examples of a system to protect consumer rights, as it helped guard the public against unscrupulous traders selling worthless metal as ‘solid silver’, as well as ensuring that retailers were not undercut by rivals selling goods that were actually base metals that had simply been give a thin coating of silver. The leopard’s head symbol was used (and still is by the London Assay Office) to provide proof that

the goods on sale were of the required silver content. As the hallmarking of silver became widely accepted, gold began to be assayed in the same way. Under the UK Hallmarking Act 1973 it is an offence for any retailer to describe an un-hallmarked item as being made partly or wholly from a precious metal such as silver, gold or platinum, as well as it being an offence to supply or offer to supply any un-hallmarked articles that have been described as precious metal. To the consumer, a hallmark is an obvious sign that they are ‘getting their money’s worth’. For many people it signals that the

piece they are buying has been given a certain status and value by experts, and this increases their confidence when purchasing jewellery. Hallmarks are the most easily recognisable way – for those of us who may not be able spot the intricacies of a particular stone setting at a hundred paces – to know that what we are buying is of a legally defined and assessed standard. They have become synonymous with careful craftsmanship and thoughtful design, and even if the general public do not understand what every tiny symbol actually means, they do know that what they are buying is the genuine article.

feature Consumers still place a lot of faith in a hallmark, but the market is always moving. Designers are now using a wider range of materials than ever before in their collections and very often in recent times, customers did not have a hallmark to help them judge their purchases. In light of this, the ancient art of hallmarking has undergone some fairly radical changes over the last few years. The most recent and arguably the most significant of these changes has been made to the metal palladium. It now joins silver, gold and platinum as a recognised hallmarking metal. The voluntary hallmarking of palladium was introduced on 22nd July 2009, and it will be compulsory from 1st January 2010. Any pieces described as partly or wholly palladium that are sold after this date must be hallmarked, though retailers may sell existing stock without a hallmark before then. It is expected that, now palladium can be hallmarked, it will replace white gold in a large number of pieces. It has the similar bright, white qualities of white gold, but has B&N

Lee Ruben, sales manager at GEMEX “We have an extensive range of palladium 950 eternity and diamond set wedding bands. In fact all our range is available in palladium 950. It’s too early to see whether the new hallmark will make any difference to our business commercially, but we expect that the new hallmark will make the public more aware that palladium is a precious metal. As this news spreads, we expect palladium jewellery to become a popular choice with the general public and as the demand grows with the public, demand will grow automatically with our retail customers too. A vast majority of our customers, being high street retailers, are already stocking palladium. In some areas of the country, palladium jewellery is very popular whereas in other areas, some retailers just don’t want to know. However, I think their attitude towards palladium will change once they start getting asked for it more and more. Many of our customers have had enough of the poor quality Asian white gold alloy used to make rings, because it often turns a yellowy colour as soon as the rhodium comes off, whereas palladium remains naturally white forever. Furthermore, with the steady but ever increasing price of gold, palladium is an excellent alternative for white gold jewellery. Of course, palladium is quite a difficult metal to work with, so manufacturers have to have the most highly skilled labour and best machines. I don’t think that palladium will ever replace platinum as the number one choice, because of the kudos associated with platinum. However, when it comes to gent’s rings, because of the traditional large widths associated with them and hence their heaviness, palladium may dominate in this market.”

It is expected that, now palladium can be hallmarked, it will replace white gold in a large number of pieces. the added advantage of not requiring rhodium plating; this means the colouring will not wear away. It also has an advantage over platinum because, while it is of the same family, it is not as dense and therefore designers are able to use it to make larger pieces. Palladium is malleable and is well suited to gemstone setting, as well as responding well to hand crafting, which means it is a good choice for designers who make mainly bespoke pieces. The monetary value of palladium is somewhere between 9 carat and 14 carat gold, and when compared to a platinum piece the equivalent item produced in palladium would cost around a tenth of the price to make.

Birmingham Assay Office

feature The palladium hallmark is made up of three compulsory symbols, and up to two voluntary ones. The compulsory marks are, as with the other precious metals, the Sponsor or Maker’s mark, the Assay Office mark and the Fineness mark. The fineness options for palladium are 500, 950 or 999 parts per thousand. The optional picture symbol is Pallas Athene, the Greek Goddess of War, Wisdom and Crafts, after whom Palladium was named. The second voluntary mark is the date letter which changes every year. Of course, the question is, why choose to include palladium in the list of hallmarking metals at all? The three previously recognised precious metals have served the jewellery industry well since the introduction of the Hallmarking Act in 1973, so was there a need to add a fourth one? “The palladium change comes from pressure within the trade”, says Marie Brennan of the Birmingham Assay Office. “Two or three years ago, American designers were showing palladium pieces at

For many people, a hallmark signals that a piece has been given status and value by experts, and this increases their confidence when purchasing jewellery. trade fairs and they were selling incredibly well. Understandably, UK designers wanted to be able to have some of this success as well. There is great willingness within the trade, and all the consultation we have had with the trade has been very positive about bringing in the palladium hallmark.” However, not all designers are as excited about the changes as the Assay Office. Brighton-based jewellery designer Jeremy

GEMEX

38 The Jeweller November 2009

Birmingham Assay Office

Dan Dower, designer and co-owner, Dower & Hall “A few of our male bespoke customers have chosen to use palladium for their civil ceremony rings. You tend to get the same scale in a high white finish, but without the price of platinum. The weight isn’t an issue as the scale is larger, but I’ve found it doesn’t suit women’s rings as well. On a smaller, more delicate scale, you lose the weight that gold or platinum delivers, which can be an important quality with higher investment pieces such as with engagement or wedding rings. Having the hallmark does help customers to understand it is a precious metal, though, and thus makes it a more attractive choice for them.”

Hoye does not see the changes in legislation making a difference to his business. “We won’t be using palladium when the change in hallmarking comes in. It’s another metal to educate the public about, and something else to muddy the waters with when they come into the shop,” he says. Kerry Gregory of Christopher George Jewellers in Cardiff is little more positive about the changes, however. “We don’t stock palladium at the moment, but we will get it in if a customer requests it. We have three goldsmiths in the company and they don’t have the experience of working will palladium; we’d need to retrain them and also buy new tools so we’d go to our suppliers who have the expertise to work with it.” Marie Brennan feels that this change in hallmarking law will be key to an increase in the use of palladium in the jewellery industry. “The success of palladium as a material depends on UK manufacturers being able to hallmark it. The consumer still places great trust in a hallmark, they see it as a guarantee that they are getting exactly what they are paying for.” In addition to the changes relating to palladium, further legislation amendments have been made in relation to mixed metal hallmarking. Until recently only items made from silver, gold or platinum could be hallmarked, and then only if the metal within a piece was a single hallmark-eligible material. This meant that any piece which was made of mixed metals, such as an 18

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traditional mark

feature carat yellow gold and steel bracelet, could legally only be described as a ‘yellow metal and steel bracelet’. While this description was correct according to the letter of the law, it meant that very expensive items were often forced to be described in terms which made them seem less valuable than they actually were. This gave designers a dilemma: do you create the pieces you want to, knowing that they won’t be able to gain a hallmark, or play it safe and design pieces in silver, gold or platinum that offer the public the reassurance that a hallmark often provides?

for hallmarking, as Marie Brennan from the Birmingham Assay Office explained. “Mixed metal legislation states that the base metal must be easily distinguishable from the precious metal, either by colour or texture. The Assay Office has been unable to hallmark pieces where the base metal has been indistinguishable from the precious, for example a 9 carat gold and brass piece.” Pallas Athene – Birmingham Assay Office GEMEX

Palladium is malleable and responds well to hand crafting, which means it is a good choice for designers who make mainly bespoke pieces

Amber Saunders, B&N “We launched our palladium collection three years ago and we haven’t looked back since! We introduced it as an upsell from 9 carat white gold, with the added benefits that it’s hard wearing and doesn’t need rhodium coating as 9 carat white gold does. However, we’ve also noticed, for gents who can’t stretch to a platinum band, that palladium has been a more affordable alternative, ensuring that the women can still have the platinum band to match her engagement ring. We were delighted that the hallmark was finally passed – albeit much later than originally anticipated. Most of our retailers had been selling palladium successfully long before the hallmark came in, so it hasn’t made a huge difference to our palladium sales. It has, however, convinced some of our more cautious customers to finally join our palladium revolution. I think platinum will always be the ultimate white metal of choice, for its aspirational qualities that are continually being reinforced by the media. However, especially for men, platinum wedding rings aren’t always affordable and for those consumers on a budget who simply can’t stretch to platinum, palladium is a good alternative.”

This problem was solved in April 2007, when changes to the hallmarking legislation allowed pieces made from mixed metals to be hallmarked. The changes gave designers the opportunity to be more adventurous with their combinations of materials, and also provide customers with the reassurance that a hallmark gives. These changes have widened the design possibilities and many jewellery makers, especially those who create men’s pieces, are taking full advantage. The use of materials such as titanium and steel has risen over the past few years and these are increasingly being teamed with precious metals and well as materials such as rubber and leather. However, there are still some restrictions in place regarding the combinations of metals that are eligible

40 The Jeweller November 2009

GEMEX

This restriction applies not only to metals which naturally look very similar; the base metal element of a design must not be plated in any way to make it resemble a precious metal. Marie Brennan adds that “the +METAL marking is there to ensure that the consumer is not misled and that they are aware that the piece contains base metal.” The mixed metal hallmark is, in fact, two marks. The precious metal is assayed and marked in the same way as it is for a single metal piece and the +METAL mark is placed next to the hallmark to indicate the inclusion of a base metal. The precious metal still has to meet the minimum legal fineness requirements to be marked; for gold this is 375 parts per thousand, 800ppt for silver and 850ppt for platinum. Wherever space permits the word METAL or the name of the material should also be applied to the base metal parts of the piece. In order for a mixed metal piece to be hallmarked, the precious metal component must be large enough to take the standard hallmark as well as the +METAL symbol; a hallmark cannot be placed on the base metal. The mixed metals legislation does not just apply to pieces made from precious and base metals; it also allows pieces that are made from two precious metals to be hallmarked for the first time. Full hallmarks are struck on the least precious metal (silver, gold then platinum) and only the minor mark is put on the higher metal. This means that a silver and 9 carat gold necklace will have a full hallmark on the silver part, and a minor mark

feature B&N

Mark Adlestone, MD, Beaverbrooks

“It's too early to see whether the new hallmark will make any difference to our business commercially, but we expect that the new Palladium hallmark will make the public more aware that Palladium is a precious metal.” indicating the gold at 375. Here too there are regulations regarding the types of precious metals that can be included in a piece to be hallmarked. The Birmingham Assay Office states that ‘the item can only be hallmarked if, in the opinion of the Assay Office,

an ordinary person will be able to determine which part is which precious metal’. Arguably the change is purely a semantic one. Designers have always produced pieces that combined precious and base metals, even when they could not legally describe

Zinzi Coetzee, of design partnership Francesca Sibylla Augusta (FSA) “FSAugusta use silver and 18 carat gold plate in our fashion collection and 18 carat gold in our fine collection. We have not used palladium, for two reasons. The first is that it has not had the hallmark and hence there was no consumer awareness of the metal or its value. Secondly, we find that in the luxury jewellery market, price points tend to be polarised. The consumer either wants silver or plated jewellery, or at the high end, 18 carat or 22 carat gold. Palladium is currently positioned just above 9 carat and 14 carat gold, and for us it is just too much in the middle to fit in with our consumer’s wants and needs. However, the hallmark definitely makes a difference to us. It means that in the future, if we feel our customer base recognises palladium and we do want to work with it, then there is nothing to stop us. FSA prides itself on being a luxury brand – even our fashion collection makes use of 925 silver and 18 carat gold plate and precious stones – therefore it would not have sat well within our brand ethos to have offered a metal that was not officially recognised by the Assay Office. Whether or not people will now choose palladium over precious metals – that’s going to be interesting to watch. Palladium is already selling as an alternative metal for wedding bands. I see that happening in the trade, and in many ways I can see why. The price point is certainly more appealing that 18 carat white gold or platinum – especially since the metal prices have been soaring throughout the recession. Some of the model makers and craftspeople I work with on a regular basis actually prefer to work with palladium. Palladium certainly has some appealing qualities, such as its pure colour, and it will be interesting to see how these are embraced by the trade and, more importantly, how the precious metal is sold as an appealing and desirable choice to the consumer. I think that may take some time.”

42 The Jeweller November 2009

“We have stocked a gents range of wedding rings for a number of years. We started with gents as we felt the ‘new’ (or new to the modern market) metal would be more interesting to gents – in a similar way to titanium. The hallmark will make a difference in terms of acceptance and legitimacy to the public, not necessarily to the trade. The now precious metal aspect could help palladium expand its acceptance into other areas of the jewellery market, more mainstream areas of jewellery like pendants and earrings and so on, therefore creating possible opportunities for retailers. We are carrying out a small trial of some palladium engagement rings – I guess this is our next step. If the market expands rapidly, palladium could have an impact on white gold. It is difficult to see that palladium would affect platinum to any great extent, given the huge variance in price – some customers would down trade, but not many.” the precious metals they used in those terms. If jewellers were happy to sell mixed metal pieces before the change in the hallmarking legislation, has the legitimisation of these products really made a difference to what is being produced? “Mixed metal is still a growing market and there hasn’t been the influx of pieces being submitted for hallmarking that we expected,” admitted Brennan. Kerry Gregory echoes this sentiment, but does add a positive note. “The mixed metal hallmarking isn’t making much of a difference to the pieces we sell, as our customers aren’t really that bothered about whether a piece has a hallmark or not. However, from a legal point of view, it’s great that we can now describe pieces as gold or silver when they’ve got other metals in the design.” As with any changes to legislation these amendments to an act that has been in place in one way or another for over 700 years will take time to come to full effect. As new generations of designers come through who have only ever known palladium as a recognised, hallmarked metal, its use will grow. Its place in the industry is almost certainly assured by the fact that it is both a hardwearing alternative to white gold and an affordable option instead of platinum, something not to be underestimated in the I current economic climate.

opinionjeweller

N ’ S

vantage

point Meeting Morocco’s retailers emember Norway last year, when you were dragged round the rain-soaked country with me on a motorbike vainly looking for retailers, but experiencing much more? This year we decided on Morocco – we figured that there must be many more retail stories to tell in this corner of north Africa, and frankly, if it rained on this trip they would think we were divine. My travel companion Nigel and I (and our two trusty bikes) were safely deposited in Morocco at the end of September, wherein my first encounter was with a man called Hassan. Hassan, it turned out, walked amongst the Berber villages of the Middle Atlas collecting jewellery – handmade in the true meaning of the word – before making his bi-annual pilgrimage to the coast and the tourist resort of Essouaria. I explained that I was a retailer from another time zone; that I too had stock, indeed, rather more than

him, and that it had been a difficult year. To this he replied, “every year is difficult”. Not surprising, coming from someone who walks 2000 vertical metres ever week. Either way, Hassan successfully turned his stock twice a year, something I would be thrilled with. We made a purchase of three silver bangles and two cans of coke for £25. It was worth it just to meet him, and if Mrs Henn likes the bangles, it will be a bonus. As we proceeded across the country we found the roads littered with people selling various items. There were butchers with live chickens running about their feet, fruit sellers with boxes of pomegranates and apples and, if we stopped, children who would appear from nowhere and mob us. All were asking for money, and all they got from me was a lecture – “begging is not an occupation”, “go to school then go to work” and so on – but Nigel was much softer and gave out some boiled sweets. One smart young

lad was already receiving one such lecture from me before it was pointed out that it was, in fact, a Sunday – whoops, sorry. The blankets, sold all over Morocco, looked beautiful, so we thought we would explore the costs and do some market research. The starting price for these items was 800 Dirham (about £70). They were beautiful; we selected two and made an offer of 350 Dirham for the two. This was met with a pained look of despair, and the retailer let us walk: he did have the best stock and the best shop by far, so I wanted to buy from him. Does this sound familiar? Clients come into our stores because they want to buy from us; the question is, what is the item worth to the client? We left the store saying we would return as we left town. We now knew that a 350 Dirham offer was too low. A hour or so later, we rode back up to the store with the engine running. We offered the man 400 Dirhams, he smiled and the deal was done. As we rode off into the desert with our new purchases, I wondered if the owner was thinking, like I might have, “bloody customers”, or whether he was thinking, “good game, good game”… We were at our most southerly point on the edge of the Sahara when we met our most extreme retailer. We were having a day off the bikes, and were exploring the area in a 40 year old Mercedes. At a local lake that supported a flock of flamingoes, we stopped to admire this extraordinary phenomenon in this arid land, whereupon Mohamed appeared from behind a bit of material 100m or so from us and motored across to us on his ageing moped. He stopped and undid a small roll of brightly-coloured acrylic bead and shell jewellery. Not only was he waiting there in 45C heat on the off chance that someone may turn up, but he was optimistic enough to hope that if they did they would like to buy some of his gifts. There was no one else around for at least five miles, and not a cloud in the sky. This for me was retailing on the edge of survival. After we left I felt, as a fellow retailer who doesn’t know the meaning of hardship on this scale, we should have bought his entire stock. The lot would have cost us less than £10; maybe then he would have been able to do something less painful, or maybe like us all he would have doubled his stock and come back the next day! The full account of John Henn’s tour through Morocco can be read on his travel blog at: www.thefoxandthehen.co.uk

44 The Jeweller November 2009

S E C O N D H A N D

jeweller in association with

Fellows & Sons

From Russia with love As Fabergé announces a return to the jewellery-making craft through which the brand originally found fame, Jo Young charts the history of this iconic Russian jeweller.

Like many young men of his generation, Peter Carl undertook what was then known as a Grand Tour of Europe (more commonly thought of today as a ‘gap’ year!). In doing so, he was exposed not only to the art and history of the continent’s major culture centres, but also specifically to the craft of jewellery making, receiving several years’ tuition from goldsmiths in Germany, France and here in Britain, an experience that cemented his interest in the jewellery industry. In 1872, at the age of 26, having completed his apprenticeship in jewellery-making and married and settled back in St Petersburg, Peter Carl took over his now-retired father’s business. At first he worked under the tutelage of Hiskias Pendin, the talented jeweller who had run the workshop alongside Peter Carl’s father. In 1882, when Pendin died, Peter Carl took over sole ownership of the business and was given the coveted title of Master Goldsmith. Royal patronage By this point, Fabergé had already created quite a name for himself as a craftsman; in that same year, the House of Fabergé (with Peter Carl and his brother Agathon at the helm) won a gold medal at the PanRussian Exhibition held in Moscow, and Peter Carl was also given the St Stanislaus Medal. Perhaps most significantly, the Fabergé brothers’ success at the exhibition led to the brand’s ‘discovery’ by the Russian royal couple, Alexander III and his wife Maria. The then-Tsar was so impressed by Fabergé’s work – most particularly, a replica of a 4th Century gold bangle from the Scynthian Treasure in the Hermitage, which he declared as being indistinguishable from the original – that he ordered Fabergé’s work to be displayed in the St Petersburg

he House of Fabergé was founded, in the heyday of Imperial Russia, by Gustav Fabergé, the father of Peter Carl Fabergé – the member of the Fabergé family now most associated with the brand. Gustav was a German-born jeweller who trained as a goldsmith under Andreas Spiegel, one of the city’s leading jewellers, specialising in decorative gold boxes. His family were originally French Hugenots who, as a result of persecution, had fled to Russia at the start of the century. Gustav earned the title of Master Goldsmith in 1841, and opened his own eponymous shop the following year, in a basement location in

Fellows & Sons e s t a b l i s h e d

1 8 7 6

one of St Petersburg’s most fashionable areas. He built a thriving business from this location, eventually bringing two of his sons into the trade with him. The good son A jewellery brand is arguably only as good as its designers are talented, and in Fabergé’s case, there was one man at the heart of the business whose work gave the company its reputation and success and with whom it will always be associated. Peter Carl Fabergé was born in 1846 in St Petersburg to Gustav Fabergé and his Danish wife Charlotte Jungstedt.

The Fabergé brothers’ success at the Moscow exhibition led to the brand’s ‘discovery’ by the Russian royal family museum as the best example of contemporary Russian craftsmanship. It was this move, effectively, that cemented the House of Fabergé’s longstanding patronage by the Russian royal family and Imperial Court,

Secondhand Jewellery and Watches – Thurs 19th November and Thursday 3rd December Antique & Modern Jewellery – Thurs 26th November

secondhandjeweller

Memory of Azov egg

and by 1885, the firm had been given the title of goldsmith ‘by special appointment to the Imperial Crown’.

the creation of luxury objects, such as enamelled gold cigarette cases. The good egg

Style shift During this period, the style of work being produced by the design house was beginning to shift under Peter Carl’s stewardship; he moved the company away from the classic (but fashionable) French 18th Century style and began concentrating much more on gemset pieces. The company focused quite an extraordinary attention to detail where gemset objects were concerned: apparently, it was entirely usual for Agathon to make as many as ten or more wax models of pieces he was working on to ensure he’d got the right design to show off the stones used to their best effect. It was at this stage – in the late 1880s – that the company also began to concentrate on

Say Fabergé to most people, of course, and they will immediately think of the spectacular and precious jewelled eggs upon which the company built its reputation. The story of how these fabulous (and often fabulouslykitsch) objects came into being is in itself a famous one.

those that were commissioned by the royal family. The Tzar Alexander III, in the same year that he made Fabergé the royal family’s official jeweller of choice, first commissioned the firm to make an easter egg for his wife in 1885, possibly as a 20th wedding anniversary gift. He was evidently pleased with his choice, as he repeated the commission the following year and the one after that. By 1887, Peter Carl Fabergé was designing these eggs annually, according

The story has it that members of the royal family themselves did not know what kind of an egg they would get each year While the term Fabergé egg can be used to describe any of the thousands of jewelled eggs made by the firm from 1885 onwards, the most famous and treasured of these are

Silver, Plated Ware, Medals, Coins & Costume Jewellery – Mon 30th November

to designs of his own choosing – that year and onwards, the designs became famously elaborate and often fantastical. The story has it that members of the royal family

Catalogue available at www.fellows.co.uk or by post. Online bidding is available at www.invaluable.com/fellows For further information please call Heather Bailey on 0121 212 2131.

secondhandjeweller themselves – the intended recipients of these incredibly elaborate Easter souvenirs – did not know what kind of an egg they would get each year; the only stipulation was that each egg should contain a surprise of some kind. This tradition continued right through until the revolutionary year of 1917, with Tsar Nicholas ordering two each year – one for his wife and one for his mother. Of the 50 eggs made for the Russian royals, 42 of these have survived. They and the other eggs produced by Fabergé are now regarded as extremely collectible and command enormous prices when they come to market. The violent and abrupt way in which the Fabergé company was dissolved in 1917 has inevitably meant that these eggs are few in number, and the value of the larger eggs gave them enormous currency to the Soviet political regime. In what some might see as a cruel irony, Stalin himself sold off many of the eggs that remained in Russia in 1927, while wealthy collectors and dealers from around Europe bought many more as they came to market in the 1930s. The fact that Fabergé is now so well known for its jewelled eggs is, however, perhaps something of a distraction from the true scale and success of this company in its heyday: by 1917, Fabergé was the largest jewellery business in Russia, employing over 500 people and making a vast range of jewellery and jewelled objects. It had branches in several major Russian cities, and produced an estimated 200,000 objects in the years from 1882 to 1917. Peter the Great egg

A piece from Fabergé’s new collection

48 The Jeweller November 2009

The end

The Fabergé legacy

In 1916, the House of Fabergé became a joint stock company, and was well on the road to further success until the outbreak of the October Revolution. Fabergé – noted as a favourite of the doomed Russian royal family – was first taken over by what was entitled ‘a committee of the employees of the company K Fabergé’ and was then officially nationalised by the Bolsheviks, the firm’s existing stock confiscated. After his business was taken over, Peter Carl Fabergé left St Petersburg for Latvia, from where he had to flee a second time as the revolution spread. He and his family settled eventually in Switzerland, but – the story has it – this most talented of jewellers and businessmen never recovered from the loss of the business he had built. He died a thoroughly broken and disspirited man, just three years later in September 1920.

Fabergé jewellery and objet d’arts are – and have always been – very collectable and very valuable. Only a very small number of antique jewellery dealers and retailers in the UK handle Fabergé pieces in any great number, and when individual items come to auction it is always a cause for some excitement. For example, the largest collection of Fabergé eggs was assembled in New York in 2003, which was put up for auction, in its entirety, at Sotheby’s in early 2004. By the

The company focused quite an extraordinary attention to detail where gemset objects were concerned

secondhandjeweller time the auction started, the collection had already been bought by the super-wealthy Ukranian businessman, Victor Vekselberg, for between $90m and $120m. To date, Vekselberg is the single largest owner of Fabergé eggs in the world. Later still, in 2007, Christie’s sold a Fabergé clock – called the Rothschild egg – for £8.9m. This sale set two new records: it was the most expensive timepiece ever sold at auction, and at the same time, the most expensive Russian object, surpassing the $9.6m price fetched by Fabergé’s 1913 Winter Egg in 2002.

This most talented of jewellers and businessmen never recovered from the loss of the business he had built Fabergé today Now, a new chapter is being written for the Fabergé name. Having been bought out by a South African-led group of private equity investors in 2003, Fabergé is now designing and launching a full range of new fine jewellery pieces, which it will sell online. It will be the first in-house designed collection from the firm since the dark days of 1917, which saw the Fabergé family flee Russia. This new collection is made up of 100 items (such as the seahorse piece pictured left) ranging in price from £26,000 to £6.2m. This collection has been designed by the Parisian jeweller Frederic Zaavy, with the firm’s creative director Katharina Flohr. The company also enlisted the help of Peter Carl Fabergé’s great grandaughter

Fabergé cufflinks

Tatiana Fabergé, to better lend creative and historic authenticity to the new collection. It was her view, at the launch, that relaunching the Fabergé name would greatly please her famous forebears – particularly the thoroughly modern way in

which it is being done. “He [Peter Carl Fabergé] was one of the first to electrify his workshop and to have telephones installed. He also published a mail-order catalogue in the 1890s. He would have embraced the internet.”

Whittaker’s World

a perception that now is a bad time to sell. The result of this is that the fewer items that are coming to market are consequently being more fiercely competed for – much to the benefit of the vendors. Good quality items are going to be increasingly expensive over the coming months, and as this happens the upward pressure on prices will continue.

Ever onwards and upwards! Having listened to daily declarations about the value of gold being at historical highs, I guess we must all be wondering where it is going to end up. I suppose we all know that, at some stage, the value will inevitably come down, but the jury is still out on when that might happen. Frankly, if any of us understood the whys and wherefores of that particular market, we probably wouldn’t be doing the jobs we are! One thing is for certain, however: selling gold is very difficult. If you could, would

you want to restock at the current price? The reality is that, with millions of pounds of old gold being scrapped each day, there is little or no appetite for gold at auction unless it is of exceptional quality or from a well known brand. There are, however, people with money to spend and their purchasing power is being concentrated on better quality items, such a certificated diamond pieces and quality watch brands. Despite what the press may be saying about ‘green shoots of recovery’, there is still

Stephen Whittaker is managing partner at Fellows & Sons, specialist valuers and auctioneers of jewellery, silver, watches and fine art based in Birmingham’s Jewellery Quarter. He can be contacted by email at: stephen@fellows.co.uk or by telephone on 0121 212 2131.

The Voice of the Industry 49

training&education

How to… get free local press coverage he local media often has a significant role to play in a retail jewellers’ marketing plan, yet few companies take full advantage of the opportunities a regional newspaper can offer. “Advertisements are important, as they help raise brand awareness, but they are expensive,” says Jason Harrison from the NAG’s communications group. “Editorial features, on the other hand, are free and are far more likely to elicit an emotional response from the reader, which will promote your business just as effectively as an ad.” Jacqueline Winski of A J Winski Jewellers in Dunfermline regularly advertises in her local paper, but decided to approach her local newspaper about running an editorial article on her after she passed her Professional Jewellers’ Diploma in October last year; the results were encouraging. “There has been a definite increase in new customers asking about gemstones and advice in general,” says Winski. “There were a lot of positive comments from regular customers, cards and even a bunch of flowers from a valued long term customer.”

They actually need you to send them your articles and pictures, or they don’t have a paper. So why don’t more businesses exploit this more cost-effective option? The NAG’s Jason Harrison suggests that many think there is more work involved in getting a story published than there actually is; some – particularly among the smaller independent retailers – are daunted by the prospect of getting involved with the press. “It is worth remembering that local papers need local stories. They have a set amount of space to fill every day, so they actually need you to send them your articles and

50 The Jeweller November 2009

pictures or they don’t have a paper. There is no reason to be nervous, particularly if you are already advertising with them. No one wants to lose advertising revenue in the current climate,” he advises. Jacqueline Winski agrees that using her existing advertising links with the paper made it easy to contact them to place an article and adds that writing the article was not difficult either. “We used the NAG press release template. It was not only useful, but also supported my achievement and promoted education courses with the NAG.” But how do you know what will make a good story? Harrison recommends making it personal rather than business related.

“These papers want to write about people living in the community and their accomplishments; they don’t want to simply promote individual businesses. Passing the Professional Jewellers’ Diploma, for example, is a great story, because not only are you focusing on an individual’s achievement, you are giving the reader confidence in your company. Jacqueline’s story works so well because she highlights why customers can trust her, yet she showcases her stock too.” The NAG has so much confidence in the success of these kinds of stories that the Association now provides press release templates to all JET graduates. The publicity does not necessarily need to end there, however. Jacqueline Winski’s article has since been repeated, for example, and not only that, after the first few stories, the media will eventually come to you. “Once the journalists and editors begin to see you as a source for stories, they will start to come to you, even if it is for something small like a comment on a national story or for something larger like a full fashion feature. There is so much happening in the jewellery industry at the moment that it is the perfect time to make the most of every opportunity by making editorial a fundamental part of your marketing plan,” explains Jason Harrison. “The NAG is more than happy to help where possible.” To download your press release template, go to: www.jewellers-online.org Jacqueline Winski is from AJ Winski Jewellers in Dunfermline (www.winski.co.uk)

Press Release Tips: • • •

Never go over one side of A4 and always include contact details. Always include a photo with your press release. Most papers will ask for similar and related stories and print contact details at the end of an article. • Make sure you read your local newspaper to see what kinds of stories are being used. Papers are unlikely to repeat stories. • Focus on the local i.e. ‘A Norwich man’ or a ‘Stafford woman has…’ Download a press release template at www.jewellers-online.org or call 020 7613 4445 for help or further advice.

training&education

Executive Development Forum defies industry trend embers of the NAG’s Executive Development Forum (EDF) are bucking current economic trends and recording a very credible increase in sales compared to other independent retailers and multiples, according to new figures. Jewellers involved in the EDF, which was set up four years ago, are likely to record a 4-6 per cent increase on cumulative sales in 2009, its organisers have found. “While it is difficult to get comparable ongoing performance figures, anecdotal information and company reports would indicate that EDF members should be proud of what they are achieving,” said Mike McGraw, the director of Development Initiatives and facilitator of the EDF. “The total group now has an annual turnover in excess of £20m and, in going through the difficulties of the last 12 months, each member is quietly confident of their performance.” The figures also show that, had sales increases not been interrupted by the recession, 2009 would have seen a 9-10 per cent increase in comparable sales. Improvements in stock management are also anticipated. Members’ performance on stock management has been improving steadily over the last four years, with stock levels in value terms currently running 2 per cent below those of 2008. Considering the replacement costs of stock with the price of gold at $600 per ounce as at January 1st 2007 versus $900 per ounce at January 1st 2009, any real increases in stock turn are remarkable.

The success of the Forum, says its members, can be attributed to the close, confidential community it creates, in which skills, experiences and perspectives can be shared. An upturn in gross margins from an average of 52.5 per cent in 2006 to an anticipated 56 per cent in 2009 (not adjusted for the change in VAT rate) demonstrate how hard members of the EDF are working their stock. The success of the Forum, says its members, can be attributed to the close, confidential community it creates, in which skills, experiences and perspectives can be shared. “It is all too easy to despair about one’s ability to solve problems. EDF helps you put your problems in context and realise that others are tackling the same issues,” said EDF member Simon Johnson of Marmalade in Chiswick.

The National Association of Goldsmith’s Executive Development Forum was originally set up in 2005 to encourage and enable even higher levels of retail and business skills within NAG members’ companies. Groups of between eight and ten people meet six times a year with external consultant Mike McGraw of Development Initiatives, to discuss issues and topics chosen from ongoing research according to each group’s specific requirements. The meetings are fully confidential and realistic in time and cost , and are held at a time and venue that suit the participants. EDF member Shane Green of Green + Benz agrees the benefits to business are clear. “EDF helps us benchmark our business, and the interaction we get with our members helps us expand our view from shopkeeper to businessman,” he said. The clear bottom line benefits created by EDF membership means that the future of the Forum is also looking promising. “We would like to add another two or three groups,” said Mike McGraw. “The Forum could also expand its boundaries to look at best practice in other business sectors, while continuing to focus on essential management skills and one to one support.” For more information on how to get involved with the EDF or future events, contact Amanda White on 020 7613 4445 or go to: www.jewellers-online.org

The Voice of the Industry 51

NAG members save over £150,000 on education and training N.A.G. members saved an estimated £150,000 on JET education and training courses in 2008 simply by belonging to the Association. Members are automatically entitled to significant reductions on enrolment fees for any of the Professional Jewellers’ Diploma courses as part of their membership benefits package, while non-members are forced to pay full price. This could mean savings of up to £200 per student per course for jewellers who have joined the N.A.G. The figures also reveal huge member savings of £80,000 for JET 1 and over £60,000 on JET 2, with large reductions for JET Gemstone, JET Management and JET Valuations too. “It confirms what I have always known – that these courses are value for money, especially when you think education is just one of many member benefits,” said Victoria Wingate, N.A.G. Education Manager. The benefits are not just financial. Surveys have shown that a more educated management and sales team not only leads to more sales and higher profits, but an informed sales staff also inspires customer confidence and repeat business. Mrs. Wingate added that the current economic climate has led to further educational considerations. “We know from experience that employers consider things like qualifications and experience when they have to make difficult decisions.”

For more information on JET courses go to: www.jewellers-online.org or call 020 7613 4445 (option 1)

52 The Jeweller November 2009

Wake up to the statistics The truth about tribunal statistics could keep employers awake at night, says Fergal Dowling.

J E W E L L E R tatistics have often been treated with suspicion, which probably explains how the phrase “lies, damn lies and statistics” came into common use. Too much exposure to statistics can also, in the views of some, help to induce sleep. Employers may well be advised, however, to wake up and smell the clichéd coffee where some statistics are concerned, in this case those concerning the Employment Tribunals and Employment Appeal Tribunals (EAT) for 2008/09. More specifically, employers should pay attention to the increase in the number of claims for unfair dismissal, breach of contract and redundancy pay over the past year. Unfair dismissal claims were up by almost 30 per cent for the twelve month period to

March 2009. During the same period, there were also two and a half times as many claims in cases where bosses failed to consult workers’ representatives before implementing redundancies, and redundancy pay claims rose by 48 per cent. Employers, meanwhile, may want to note that the highest award for unfair dismissal was in excess of £84,000 and the award for race discrimination was over £1.3m. Perhaps one should at least take heart that the number of sex discrimination cases dropped by 31 per cent to March 09. I have a number of thoughts relating to this. First, I believe there is a correlation between the rising number of redundancies and dismissals, stress arising from the fear

of being out of work and the need to do something about it. These are, of course, the product of the nation having been in the grip of a recession. My second thought concerns communication: why is it that some organisations fail to communicate with their employees

It would be far less stressful to involve an employment law expert at the outset, rather than face the prospect of potential legal proceedings. and/or representatives and discuss their concerns about job security? So doing could pre-empt any actions that a minority of workers might feel they need to take with a view to enhancing their career prospects, such as soliciting clients or removing data. My third query is, why don’t companies, that are unsure of their procedures simply seek legal expertise before engaging in the process of redundancies and/or dismissals? It would be far less stressful to involve an employment law expert at the outset, rather than face the prospect of potential legal proceedings, the associated costs – in financial and resource terms – and any attendant publicity. Feedback from senior managers who attend our mock employment law tribunals amply demonstrates that these three issues are of serious concern to employers. The number of employment tribunals between 2008/09 dropped by 4 per cent

The Voice of the Industry 53

legaljeweller (or 20 per cent if one includes multiple resubmissions of claims by airline crew). Any fall may appear to be good news on the face of it, but the total is still 14 per cent up on the level of tribunals for the year to March 2007. Figures suggest that costs were ordered in only 25 per cent of tribunal cases, so employees may feel it is worth the risk to take a shot at a tribunal, even if the grounds on which they pursue their claim may be tenuous. Clearly, these figures may be encouraging for ex-employees considering tribunal action. As indicated earlier, legal action is sometimes attributable to existing or former employees whose behaviour breaches contracts of employment, possibly by theft of intellectual and/or other property or unfair competitive advantage through solicitation of clients/employees. It can also result from previous employers’ attempts to restrict the opportunity of the employee to trade. Contracts of employment that restrict trade are generally unenforceable. However, they may be justifiable if they protect a legitimate business interest using means that are reasonably necessary, especially relating to the duration, scope and

Employees may feel it is worth the risk to take a shot at a tribunal, even if the grounds on which they pursue their claim may be tenuous. effect of the restriction. Protecting confidential information, customer and supplier details and relationships and preventing the poaching of key staff may all be viewed as legitimate interests. Any judgment on the reasonableness of a restriction clause will take into account details such as the position or status of the employee and the geography of the new venture; for example, how many miles from the original place of work the employee is prohibited from trading. The courts have shown an increasingly pragmatic approach in determining the enforceability of clauses, looking at the intention of the clause and not just the literal interpretation. I have seen an increase in the enforcement/defence of restrictive covenants litigation and actions surrounding breaches

54 The Jeweller November 2009

purpose is to protect the interests of any organisations for whom they had previously worked and ensure that all parties respect the contracts of employment previously entered into. One key consideration for a court in determining whether to grant an injunction to prevent a breach of contractual terms by an employee leaving a business, apart from the actual merits, is timing. For example, there was once a case involving a funeral business in which the employer was made aware, several months in advance, of two former employee’s plans to set up a rival business. The company in question failed to secure an injunction against its former staff because it delayed in making the application to prevent them going ahead. My advice to any employer considering a reduction in the workforce is to seek expert legal counsel to reduce the risk of becoming I a statistic. of post-termination contractual terms, leading to rulings known as ‘springboard injunctions’. In such instances, legal proceedings come under the High Court. Injunctions are not designed to prevent an individual from earning a living. Their

Fergal Dowling is partner and head of employment law at the Birmingham offices of law firm Irwin Mitchell, one of the country’s largest law firms. For more information please visit www.irwinmitchell.com or you can contact Fergal on 0870 1500 100.

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irvreview

IRV

provided ample opportunity for attendees to expand their knowledge and share their expertise with others. Saturday

review

Loughborough 2009 This year’s Loughborough Conference was said by many to be the best yet, says organiser Sandra Page. Here she gives a review of the Institute of Registered Valuers’ conference as it enjoyed its 21st outing. e’ve done it again. We don’t know how, but once again the annual NAG’s Institute of Registered Valuers’ Loughborough Conference for valuers and jewellers was a resounding success for the 160 people who attended. Now in its 21st year, the event took place at its regular venue, Loughborough University, over the weekend of Saturday 19th to Monday 21st September. Many people genuinely said that it was the best ever – I know we say that every year, but it’s the truth! Participants included well over a quarter of the Institute’s membership, all of whom gained Continuing Professional Development (CPD) points towards FIRV (Fellow of the Institute of Registered Valuer) status, along with people with a passion for our trade who want to share in the unique experience that is Loughborough. Considering the economic climate, the Association was concerned that delegates would be unable to support this

year’s event but, in fact, we were delighted with the support and dedication of those who attended. As many said, there was no way they were going to miss what is now part of their life as a valuer/jeweller. As is usual for this event, amongst the participants were a number of first-timers. Many of these have said how great the event was, and how they felt they had missed out by not attending before. It would appear that, although we have shouted from the roof tops for many years that Loughborough really is a great event, it is not until you physically attend that you realise the experience is one you cannot afford to miss… This year’s programme was slightly different to that of previous years, but still included the ever-popular programme of workshop sessions, main presentations and discussions. Once again delegates, guest speakers and supporters of the conference enjoyed a warm and sunny two and a half days, which

The conference started off on Saturday afternoon, with a welcome from NAG valuations committee Chairman, Jonathan Lambert. He promised delegates a full and entertaining conference programme, both on a business and social level. This was followed by a few words from IRV forum candidate MIRV Geoff Whitefield of Parkhouse Jewellers, Southampton who was one of two IRVs standing for the vacancy on the IRV forum. The position has become vacant as MIRV Tricia Morris, of John Pass Jewellers in Crewe, is standing down after serving her two year term on the forum. Unfortunately the other candidate, MIRV Roy Egginton of Bournemouth, was unable to attend. A ballot for the vacancy took place during the Conference.

Next followed a main presentation on gemstone treatments and an update on new gemmological finds, from Tracy Jukes of EJewel. This particular presentation followed this year’s main theme of colour, particularly in relation to valuing coloured gemstones. Before breaking for coffee, Geoff Whitefield gave a main presentation on insurance replacement and post-loss assessments. The next part of the programme was the first of five workshop sessions on offer over the weekend. No less than 14 different classes were put on over the weekend, covering all manner of topics including valuing jade, identifying the latest Chinese counterfeit wristwatches, valuing customised wristwatches, grading coloured gemstones, using price guides, relating colour assessment to price guides, grading and valuing cultured

irvreview

It is not until you physically attend the conference that you realise the experience is one you cannot afford to miss. pearls, valuing coloured gemstones, valuation methodology and auctions, to name a few. Saturday evening’s welcome reception provided time for delegates to renew friendships and welcome into the fold those 21 individuals mentioned earlier who were attending for the first time. One of these first-timers, Rex Porter of A W Porter & Son, Hartley Wintney in Hampshire [see page 59], was attending under the generous sponsorship of Fellows & Sons Auctioneers, which covered the cost of attendance for the students who gain the highest marks in the NAG’s JET 2 exams. Rex attended with his father Mark, who is an MIRV and a regular attendee at Loughborough. This year, in conjunction with Bransom Retail Systems, we offered another free place at the conference for one lucky first-timer. All delegates attending their first Loughborough Conference had their names put in the proverbial hat, from which one lucky delegate was drawn – MIRV Alan Ferris of Ferris Fine Jewellery, Newry, Northern Ireland. “Sponsoring and attending the Conference fits perfectly with Bransom’s ethos – training and ongoing education are of the utmost importance. We hope to help the Institute encourage more people to attend the Loughborough Conference and help promote the benefits of meeting, in person, some of the most knowledgeable people in the jewellery trade who give up their time to educate all who attend. This is a weekend not to be missed,” said Daren Daniels, sales and marketing manager for Bransom, who has been going to the Loughborough Conference for 13 years and was himself a Registered Valuer for four years. The evening continued with an informal ceremony in which awards were presented to attendees. This year, certificates were handed out to those MIRVs who had

achieved FIRV status. The recipients were: Heather Callaway, Steven C Carson, James E Chanter, Anne M Gill, Pauline Hartley, Peter J R Jackson, Steven Jordan, Heather McPherson, Avril F Plant, Philip Stephenson, Richard P Taylor and Terence J Watts. Other FIRVs present at the dinner, Rosamond S Clayton, Brian R Dunn, David J Harrold, Kenneth J Massow, D John Sayer and Barry Sullivan, joined delegates in congratulating these valuers on achieving FIRV status. The Institute now has 22 FIRVs. Next, Jonathan announced the introduction of a new award. As delegates were aware, at the end of last year Michael Norman had a stroke, which sadly resulted in the need for him to be placed in the care of a nursing home. The IRV forum and valuations committee put forward a proposal to the Association’s board of directors that Michael’s unique contribution, not only to the trade but particularly to valuations, should be honoured in some way. Jonathan was delighted to

report that the proposal had received the board’s wholehearted support, and announced plans for the introduction of the The Michael Norman Fellowship. The criteria for the award is as follows: “The board of directors of the National Association of Goldsmiths may award The Michael Norman Fellowship to an individual who has given outstanding service throughout their career, in the sphere of jewellery appraisal and valuation and in particular to the Institute of Registered Valuers. The award, which is only to be given in very exceptional circumstances, will be held by the recipient for life”. The award will be held by no more than three recipients at any one time. It cannot be stressed too highly that this fellowship is only to be awarded in very exceptional circumstances, and then only with the total agreement of the IRV forum, the valuations committee and the board of directors. Each recipient of the fellowship will effectively become a life member of the Institute, not dissimilar to the Association’s vice presidents. The Michael Norman Fellowship carries no trophy or physical award. However a certificate marking the creation of the fellowship has been designed and, following a visit to Michael’s nursing home at the beginning of September, in the presence of Michael’s partner, Ann, sister Sue and brother John, this was presented to him by Jonathan Lambert and David Callaghan. Although the stroke has made it difficult for Michael to communicate, it was clear to all that he was extremely honoured and touched by this award. Jonathan was able to show the delegates photographs that had been taken during the visit, and delegates burst into a round of rapturous applause; they gave their

FIRVs collecting their IRV Certificates on the Saturday night. From left to right: Terence Watts, Philip Stephenson, Richard Taylor, Anne Gill, Avril Plant, Steven Jordan, Heather McPherson, NAG Valuations Committee Chairman Jonathan Lambert (who presented the certificates), Steven Carson, Peter Jackson, Pauline Hartley, Heather Callaway and Jim Chanter.

All conference photos courtesy of Daren Daniels, Bransom Retail Systems

The Voice of the Industry 57

silversmith Matthew Boulton. Sally also ran workshop sessions on the silversmiths’ work and brought many pieces of his silver with her for delegates to handle – a once in a lifetime experience for all. After a coffee break, the fifth and final workshop session took place. Delegates then returned to one of the main lecture theatres for a report on this year’s monitoring exercise and Happy Hour, our usual opportunity to raise subjects for discussion and consideration for the association’s valuations committee and IRV forum. Finally, Jonathan thanked everyone for attending the Conference and for continuing to support it year after year. Those thanked comprised guest speakers who ran workshop sessions (Sally Baggott and Craig O’Donnell, full support not only to the award, but also to the presentation of it to the special person after whom it was named. Jonathan then called upon Margaret Wilkins to present the David Wilkins Award to this year’s winner, namely Steven Jordan, a popular winner with all those present. Steven was very honoured to receive the trophy from David’s widow, and said that it was because of people like David and Michael Norman that he had aspired to be a good valuer. In addition to Steven, IRVs Roy Egginton, Alan Hayes, Michael Norman and Adrian Smith were nominated this year. Delegates brought their day to a close by visiting the trade stands in one of the common rooms where Alan Clark of the Gem-A sold books and instruments. Representatives from the Guild of Valuers & Jewellers, the Birmingham Assay Office and Bransom also had stands selling their goods. Sunday The dawning of Sunday saw delegates start out on what was nearly a ten hour programme of events. The morning started with a main presentation from Barbara Leal, entitled Colour Speak, which gave delegates food for thought on the subject of describing coloured gemstones. Barbara was followed by her husband, Peter Buckie, who had decided to change the content of his presentation in light of a valuation he and Barbara had been asked to carry out a week or so before the conference. They had been called upon to value a gold prayer mat encrusted with diamonds, sapphires, rubies and emeralds, weighing around 22kilos. Certainly not what most valuers come across in their day-to-day lives as valuers! The first half of the morning’s programme concluded with a main presentation from Tracy Jukes, who gave delegates

58 The Jeweller November 2009

the lowdown on current pricing trends for coloured gemstones – many a pen could be heard scribbling upon paper during this presentation. Following the coffee break, delegates went along to their second workshop session of the conference (the first of three taking place that day). After lunch there followed another workshop and then, after a coffee break, delegates returned to one of the main lecture theatres for an illustrated presentation from ex-Crown Jeweller, David Thomas, who has now retired from Garrard. David gave delegates an insight into his life as the Crown Jeweller and shared a number of personal experiences with the delegates. There were many tales he could have told, but he explained that he would have had to shoot everyone if he had done so! Although dinner that evening was relaxed and informal, the Association’s Chairman Frank Wood gave a brief after dinner speech, thanking those involved for contributing so much to the event and making it such a success. Delegates had sat down for dinner at 7.30 but there were still many sat at their tables chatting when the University closed the adjoining bar at midnight. This wasn’t necessarily the end of the day, as many didn’t actually get to bed until well into Monday morning! A true testament to the camaraderie of this event. Monday The last day of the conference started off with the results of the IRV forum ballot. Of the 84 IRVs present, 44 voted and the results showed a ratio of 3:1 in favour of Geoff Whitefield. The programme then continued with Dr Sally Baggott, the Curator of the Birmingham Assay Office, who gave a main presentation on the founder of their Assay Office, the great

Jonathan Lambert and David Callaghan visited Michael Norman in his nursing home early in September and presented him with his Michael Norman Fellowship Diploma.

Peter Buckie, David Callaghan, Rosamond Clayton, Brian Dunn, Peter Hering, Gail Hislop, Tracy Jukes, Barbara Leal, Richard Price, Terence Watts, Geoff Whitefield and Haywood Milton and Stephen Whittaker and Richard Slater); those who gave main presentations (Sally Baggott, Peter Buckie, Tracy Jukes, Barbara Leal, David Thomas and Geoff Whitefield); members of the valuations committee (Avril Plant, Peter Hering, Pravin Pattni and Jon Tabard) and IRV forum members (Heather McPherson, Tricia Morris, Peter Buckie, David Callaghan, Michael Ferraro, Alan Hayes and David Holgate) for their support throughout the year. He also welcomed Geoff Whitefield to the forum and thanked me for my dedication. Finally, MIRV Fiona Hopper asked everyone to join her in a round of applause to thank Jonathan for an absolutely marvellous I conference.

irvreview

First person view First-time Loughborough attendee Rex Porter talks us through his Loughborough debut. “

aving been invited to take a sponsored place at the Loughborough conference and with the great reviews that my father (a regular attendee) always gives the event, I felt that an opportunity to attend was one not to be missed. Prior to the event, I had my reservations about how much I would gain by attending the conference, as I had envisaged I would be far too inexperienced to follow the lectures and workshops. I imagined all the other delegates would be wise old jewellers who had already spent two of my lifetimes in the trade!

an Auctioneer’s View and David Thomas: My Life and Work as the Crown Jeweller. I think the reason that I enjoyed these lectures in particular, apart from the jovial and enthusiastic way in which they were all presented, was that they were about pieces of jewellery that had an interesting history or story attached to them. This, I feel, is the most charming aspect of the jewellery trade; the fact that you never know when you might come across an item of jewellery that provides a window into the past; that has a touching story attached to it or that might even be a significant discovery that could

Prior to the event, I had envisaged I would be far too inexperienced to follow the lectures and workshops. Whilst I was correct about there being wise old jewellers at the conference, there were also plenty of younger, equally wise, jewellers and valuers attending. After having enjoyed the first few lectures, I began to realise that my reservations had been illfounded. The majority of the content covered was easy to comprehend and held real relevance to my day-to-day business as a retail jeweller. In fact, I think anybody involved in the trade would have found the topics covered throughout the weekend to be both interesting and useful. The main highlights of the event for me were the lectures from David Callaghan: Cometh the Day Cometh the Jewel, Richard Slater and Stephen Whittaker: Jewellery from

fetch thousands in an auction. Richard Price’s workshop on the latest ‘top of the range’ Chinese wristwatches was of particular interest to me. It was a very hands-on session, which allowed delegates to get to grips with different standards of replica wristwatches. We examined bottom end examples available from market stalls, which frankly would not fool the most gullible of punters, to replica watches costing £200, which might deceive even the most diligent of valuers. These watches could even be supplied with authentic-looking packaging and paraphernalia. Certainly, for me, the session was an hour and a half well spent, which may very well help prevent me from making an expensive mistake in the future.

Rex Porter (right) with Stephen Whittaker of his sponsor Fellows & Sons Auctioneers

This was a session that would appeal to younger people new to the trade as well as those who are more experienced. I also attended a workshop with Barbara Leal on grading coloured gemstones. The session helped delegates gain specific knowledge on what has always been a grey area (or green, red or blue!) Using the parameters of hue, tone and saturation, I went from being a total novice, with reasonably inarticulate descriptions of colour like ‘light blue’ and ‘reddish pink’, to feeling like I could record the colour of a gemstone within a more structured objective framework. I hope to use this system in years to come, but feel a little more practice might be required first. I thoroughly enjoyed my Loughborough 2009 experience and would like to thank Fellows & Sons Auctioneers for sponsoring my place. I hope to attend the event in years to come, as it offers a prime opportunity to listen to up-to-the-minute insight from specialist speakers on a host of interesting and relevant topics. The food, accommodation and complimentary wine were gratefully received and enjoyed by all, and the atmosphere was friendly and welcoming throughout.”

Next time… We look forward to welcoming everybody back next year, when the conference will be held from Saturday 18 to Monday 20 September, again at Loughborough University. For more details of the event, please contact Sandra Page at the NAG on (029) 2081 3615 or email her at: irv@jewellers-online.org The Association is extremely grateful to the following companies/organisations for their continued support of the conference: Bransom Retail Systems, Fellows & Sons, the Gem-A, the Guild of Valuers & Jewellers and T H March & Co. The Birmingham Assay Office, in conjunction with AnchorCert and SafeGuard, were once again this year’s principal supporters. “The Conference is a fantastic event and a credit to all concerned. It’s an excellent opportunity for jewellery professionals to exchange views, update their knowledge and socialise with their colleagues from all over the UK and further afield. I find the level of experience and expertise here incredible. We believe that in tough times it is even more important for the jewellery trade to stick together and maintain its standards, integrity and professionalism and The Birmingham Assay Office is really proud to support this conference,” said the company’s sales and marketing director Marion Wilson.

The Voice of the Industry 59

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Gold mining in the Phillippines. Photo by Annie Bungeroth/CAFOD.

Truth about fairness While the introduction of Fairtrade gold into the UK retail market is both admirable and welcome, the move will only be a success if it is done properly as part of broader industry-wide goals, warns Richard Peplow. here are many problems facing our industry in ethical and environmental terms, and Faitrade gold is just one of several possible developments that are being considered for the jewellery sector's future. The UN's Global Compact and Millennium Development Goals [details of which are set out below] describe very clearly what our industry should be doing and what the objectives are. Of the ten Global Compact principles – while all are relevant – those concerning labour standards and the environment are of particular importance to the jewellery industry. The jewellery industry worldwide is represented at the United Nations with Special Status in the Economic and Social Council. The World Jewellery Confederation (CIBJO) is already working closely with the UN and is committed to the implementation of these goals. The introduction of Fairtrade gold, then, can only aid these specified goals if it is applied to the entire industry throughout the world. Put bluntly, if Fairtrade were to exist in the US and all over Europe, it would still be doing very little to help those people so

clearly mentioned in the UN principles. The largest volume of gold is used in Asia and therefore the Fairtrade concept must include those working in that continent. The World Jewellery Confederation has a membership of some 50 nations currently, including China and India, as well as most of the largest producers of gold who are Associate Members and now have votes and representation on the board of directors. All these members are involved CRED jewellery designed by Sophie Harley

in the ideals of the United Nations. The fact that the Confederation has no funds, despite having all these members, suggests that our industry is not really interested in fulfilling its responsibilities; the industry should, I think, show its strength by providing adequate funds to allow us to work closely with the United Nations, alongside other industries – after all, this is a wealthy industry and one which is highly successful in some parts of the world. The origins of jewellery and gold are, after all, very much part of the Global Compact. The larger operatives are anxious to reassure the industry that they are adhering to high ethical standards and responsible practices. Yet we can see from elsewhere that such reassurances are not necessarily indicative of what is taking place in reality. For example, we hear almost daily about the destruction of our rainforests, despite the publicity to the contrary. I have personally seen this destruction taking place, in forests in South America, India, Thailand and other parts of Asia. Why? Because the western world only pays lip service to these ideals and looks at the situation from a

The Voice of the Industry 61

feature Gold is a commodity that endures for centuries; unlike bananas or coffee, it is not here today and gone tomorrow. commercial point of view, often aided by governments in the afforested countries that are desperate for funds. Positive publicity simply enables them to demonstrate that at least some forest has been saved. Is this to become the situation with gold? Gold is a complex area, because more gold has been mined over many centuries than the miners can expect to recover in maybe the next half century. The gold held at Fort Knox in the US will not be ‘clean’ gold in the context we are talking about, even if some of it is. Sadly our own government, in its wisdom, decided to dispose of a lot of the UK gold when the price was extremely

low, so the UK holds even less unclean gold! Gold is a commodity that endures for centuries and, unlike bananas or coffee, for example, it is not here today and gone tomorrow. Some people buy Fairtrade food and other durables and they pay extra. Do we really want to have a situation where the consumer pays extra for, say, a wedding ring, which is intended to last for the rest of their life? Is it a moral act to take extra profit in this way in order to help a few artisinal miners in parts of the world to which we have access? Of course, it could be good for some miners, as well as being positive publicity for the industry, but the places not involved in Fairtrade will still have impoverished people and the environment will go on being damaged. The diamond industry was faced with a dilemma a few years ago and, rather than risk losing everything, it established the Kimberley Process and set up a system working with many different governments to

What is the Global Compact? The United Nations Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, environment and anti-corruption. Below is a summary of the ten principles of the Global Impact: Human rights: Businesses should support and respect the protection of internationally proclaimed human rights; and make sure that they are not complicit in human rights abuses. Labour: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; the elimination of all forms of forced and compulsory labour; the effective abolition of child labour; and the elimination of discrimination in respect of employment and occupation. Environment: Businesses are asked to support a precautionary approach to environmental challenges; undertake initiatives to promote greater environmental responsibility; and encourage the development and diffusion of environmentally friendly technologies. Anti-corruption: Businesses should work against corruption in all its forms, including extortion and bribery.

CRED jewellery designed by Sophie Harley

combat the problem of conflict diamonds. The gold industry has not got the same pistol being pointed at it, but is it any less serious? Can the industry envisage adopting partially responsible practices in order to preserve its image? NGOs – of which CIBJO is one – should quickly realise this would only be a publicity fix. The jewellery industry needs to realise that its target solution must be to adhere to the Global Compact and Millennium Goals as enshrined by the United Nations. The UK could be the catalyst to ensuring that adequate funds become available from our industry right around the world, funds that would enable the achievement of these ideals. The miners need our help, the environment needs our help and our generation should provide that help. The aims may seem insurmountable – they are not. Richard Peplow, of the Worcester-based family jewellery firm Peplow Jewellers, is vice president of the World Jewellery Confederation (CIBJO).

What are the UN Millennium Goals? The eight Millennium Development Goals (MDGs) – which range from halving extreme poverty to halting the spread of HIV/AIDS and providing universal primary education, all by the target date of 2015 – form a blueprint agreed to by all the world’s countries and all the world’s leading development institutions. They have galvanized unprecedented efforts to meet the needs of the world’s poorest.

62 The Jeweller November 2009

Building upon a decade of major United Nations (UN) conferences and summits, world leaders came together at UN Headquarters in September 2000 to adopt the UN Millennium Declaration, committing their nations to a new global partnership to reduce extreme poverty and setting out a series of time-bound targets – with a deadline of 2015 – that have become known as the Millennium Development Goals.

The eight areas that are covered by the UN’s Millennium Goals are: • Ending poverty and hunger • Universal education • Child health • Gender equality • Maternal health • The combat of HIV and AIDS • Environmental sustainability • Global partnership.

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word Jo Young takes a wry look at the weird, wonderful and downright ridiculous happenings in the jewellery retailing world. Window Madness ust recently, when I was visiting family in the fine East Midlands town of Lincoln, I had my attention drawn to a most peculiar retailing phenomenon that, frankly I’d never encountered before. On Lincoln’s main high street, just as you pass under the historic Tudor gateway called the Stonebow, you come to a pair of shops operated (under two different fascias) by a

well known jewellery retail group. (I’d risk the potential upset of naming them but, frankly, life’s too short). All appears to be well with both these stores on first glance – they’re clearly holding their own against the healthy competition offered by Lincoln’s independent jewellery sector. Except. I popped in for coffee with an industry friend (one of the aforementioned independent jewellers, with a shop on the high street).

“Notice anything unusual about those windows?” he said, casually, leading me onto the high street for a nosey. And then I spotted what he meant. There was no jewellery in them. Literally. Neither of these chains appeared, from the outside, to be selling jewellery at all. Instead, the windows of one contained nothing except branded watches, while the other, incredibly, carried a wide range of tackylooking ceramic figurines and garish crystal objects, the like of which would not have looked out of place at a tombola. Or your great-nan’s sideboard. Allow me to repeat that: these were a pair of stores run by one of the country’s best known jewellery firms, operating side by side on a major high street, and they did not, to all the world, appear to be selling jewellery. Overhearing my incredulity, one passer by said, “Oh yes, it’s been like that for a while”. Now, allowing for the possibility that the good folk of Lincoln share an inexplicable taste and enthusiasm for ceramic ‘Victorianthemed’ shepherdesses and miniature crystal animals (and as an explanation, it is fairly inescapable), what on earth would possess the owners of two successful jewellery businesses to do something like that? Moreover, if head office hasn’t allowed it (and knows nothing about the eccentric visual merchandising choices being taken in Lincolnshire), why haven’t they implemented some kind of programme of quality control where its displays are concerned?

“Notice anything unusual about those windows?” he said, casually, leading me onto the high street. And then I spotted what he meant. I must add, while I’m at it, that this is a curiosity that has not bypassed the attention of some of the company’s incredulous staff. Indeed, one lovely and friendly saleswoman told my husband that she thought the neighbouring chain’s window “looked like a Skegness amusement arcade”. Not only searingly accurate, but funny with it: at least they’re doing something right in hiring friendly and intelligent staff. Is this a common thing, jewellery folks? If so, please be so kind as to enlighten me: why?

66 The Jeweller November 2009

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