VOL. 43 NO.9 SEPTEMBER 2020
GIVE MASK SLIGHT TEXTURE ADD SHADOW / DEPTH TO EYES
REFINE SHADOW UNDER MASK
JEWELER BEWARE SCAMMERS HAVE BECOME MORE INGENIOUS, BUT THERE ARE WAYS TO OUTSMART THEM
AU CT IO N S
RE TA IL
CO L L ECTI O N S
E STATE
WHAT THE SALES IN HONG KONG, GENEVA AND NEW YORK REVEAL ABOUT THE SECTOR’S HEALTH
RETHINKING YOUR STORE DESIGN TO MAKE YOUR CUSTOMERS FEEL SAFE
JADE TRAU’S NEW OFFERING IS IDEAL FOR 2020: SENTIMENTAL AND AFFORDABLE
HOW VINTAGE DEALERS CAN DEVELOP A SUCCESSFUL ONLINE BUSINESS
CON TENTS VOL. 43 NO. 9 SEPTEMBER 2020
IN-DEPTH
22 AUCTION REPORT
8 NEWS The Covid-19 tipping point; GIA aligns synthetics reports with natural; De Beers slashes rough prices.
COVER
14 JEWELER BEWARE While scams have long plagued the industry, fraudsters are becoming more sophisticated in their schemes.
20 REPORT Gem traders shackled by travel restrictions have had to find alternative ways to source and sell supply.
The Magnificent Jewels sales in Hong Kong, Geneva and New York: Analysis and results.
40 JEWELRY
CONNOISSEUR
Clever twists on the classic hoop are keeping this style as relevant as ever.
RETAIL
36 RETAIL PROFILE
42 STYLE
Flexibility and a focus on customer service have helped Sissy’s Log Cabin ride out the coronavirus in Arkansas and Tennessee.
Upcycling old jewelry allows clients to personalize new pieces while still holding on to their history.
38 RETAILRAP
Ana Katarina’s “Intelligence — The New Sexy” campaign is a celebration of strong women through innovative, artistic, sustainable designs.
Consumers have been hesitant to shop for nonessential goods during the pandemic. Experts offer advice on how to rework your store design to make them feel safe.
44 DESIGNER
46 COLLECTIONS The charms and studs in Jade Trau’s Victoria line are perfect for crafting a customized look at an affordable price point.
48 LEGACY The skilled Russian jewelers whose creations adorned the fabled Romanovs are the stars of an upcoming book on the royal family’s finery.
51 ESTATE JEWELS
48 PAGE
CORRECTION: In the article “Tsavorite favorites” from the August 2020 issue, we stated that Campbell Bridges discovered tsavorite across the border in Kenya “later that decade” (the 1970s). It should have been “later in 1970.” And it was four, not two, of his attackers who were convicted of murder.
2 SEPTEMBER 2020
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46 PAGE
STYLE & DESIGN
E-commerce expert Kate Karlsen of estate dealer A. Brandt + Son shares tips for making the most of digital resources.
52 COLORED GEMSTONE
With their colorful flecks of light, opals are inspiring poetic descriptions and breathtaking works from designers.
MARKETS & PRICING 55 TRADE REPORT Industry strikes a balance.
56 USA 60 INDIA 61 ISRAEL 62 ANTWERP 62 HONG KONG 64 DIAMOND DATA 69 PRICE LIST 81 RAPNET PRICE LIST 86 DIRECTORY 90 CALENDAR 92 THE FINAL CUT
N OTE FROM TH E P U B L I SHE R
C E L E B R AT I N G C O M M I T M E N T
John Costello PUBLISHER
IMAGE: BEN KELMER
J O H N .COST E L LO @ D IA M ON DS.NET
W
e currently live in a topsy-turvy world. As one part of the world exits lockdown measures, another reinstates them. We have been thrown into the middle of a pandemic, and it has prompted a massive reality check. While lockdown no doubt revealed serious fault lines in a lot of couples’ relationships, it has also led many to realize the importance of commitment. The millennial generation has often been characterized by its infatuation with experiences over possessions. Before the pandemic, couples saw more value in saving for a budget-blowing trip of a lifetime than in spending money on a symbol of their commitment, such as a diamond ring. Now, with fleeting experiences like travel, dining out and concerts off the menu for most of us, the value of deeper, longerlasting symbols of love has become more apparent and more meaningful. It is therefore not so surprising that the engagement ring has been one of the star performers keeping many in our industry afloat as we struggle to cope with the chaos the coronavirus has inflicted on the entire diamond and jewelry supply line. Consumers have had to reevaluate what is important in their lives. And with the holiday season quickly approaching, we have a wonderful opportunity to help them mark those things with something rare and precious. The allure of diamonds is built on stories. And for couples who have come through the pandemic stronger, for those who have decided to make a long-term commitment to their relationship, for those who want to mark their strength through the turbulent times of 2020, a diamond will say it like nothing else can. A strong holiday season won’t be enough to rewrite the horrific year many of us have had to endure, but it will offer a chance, during a time of year that is about friends, family and people close to us, for all of us to sparkle.
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SEPTEMBER 2020 7
R E TA I L R A P
N G I S E D E R H OW T O
O S E R O YO U R S T S R E M O T CUS E F A S L E FE
Consumers have been hesitant to shop for nonessential goods during the pandemic. Here are some ways to make them more comfortable.
G “Rearranging elements [to] allow for private appointments is one of the best things to do” K AT HLE E N C UTLE R
38 SEPTEMBER 2020
B Y L E A H M E I R OV I C H
etting customers to shop postlockdown has been difficult given the financial constraints many face, and the fear of catching Covid-19 while out has only added to that challenge. While customers prefer shopping in physical stores, they will only visit retailers they believe provide adequate safety measures, according to a De Beers survey of 500 Americans in June. However, for clients to feel truly safe, jewelers need to invest in more than just a mask, some hand sanitizer and some messaging. “The retailer needs to think about [whether they can] deliver more than just a list of ‘this is what we’re doing to help you feel safe,’” says Pam Levine, CEO of Levine Luxury Branding. “The question is, can they deliver some kind of magic with that?” Making small changes to improve the safety of your store can actually yield larger benefits in the long term, says Kathleen Cutler, founder of consultancy Kathleen Cutler Strategy, which works with high-end jewelers. “I think people are doing casual shopping or recreational shopping only in places that they feel they can be relaxed in,” she maintains. “If they feel on edge when they are in your store, they aren’t going to buy. By thinking through how you can make your store feel comfortable and safe and get people to put down their guard, you might
DIAMONDS.NET
find that the [clients who] come in your door spend that much more money, and they feel ‘at home’ in your store.”
GI VI NG THEM SPAC E The most important thing to consider is whether you are providing customers with enough room for social distancing so they can browse without fear. One easy way to achieve this is to set aside space for private viewings. “Rearranging elements of the store that will allow for private appointments — that might be turning a back room into a private showroom, moving bridal to a separate space to allow for one-on-one meetings, even holding appointments before or after hours or setting aside certain hours during the day — is one of the best things to do,” Cutler offers. The added advantage of this method, she points out, is that it allows jewelers to spend more focused time with clients without interruption. Customers making private appointments also tend to be serious buyers who will appreciate individual attention. In addition, scheduling appointments means customers can remain seated while staffers bring jewelry selections to them, resulting in fewer hands touching the showcases, and less interaction with other customers and staff, notes Jesse Balaity of Balaity Property Enhancement, which helps jewelers more effectively redesign their space. PARI NG DOWN AND SP READI NG OUT Many jewelers tend to carry a larger assortment of jewelry than necessary. Instead, they should consider trimming down their offering and spreading their most popular wares around the store, Balaity advises.
“Now is a good time to analyze which categories or brands drive revenue, and eliminate any barriers to their sale, even if it’s at the expense of lowervolume jewelry,” he says. “For many stores, the greatest revenue generator is with bridal sales. That category is also prone to crowding couples in the same area during peak business hours. At least on a temporary basis, consider scattering the bridal inventory around the store so that each bridal-sales interaction is distanced from the next. It may seem odd for a bridal couple to meet in the watch zone, but they will appreciate the effort made for their safety.”
IMAGE: JESSE BALAITY
M A R K I N G YO U R T E R R I TO RY Finding ways to delineate where customers can locate what they need is imperative and will prevent them from crossing paths as often, Levine asserts. “This can be done in a fun and elegant way that engages customers, such as banners or floor markings in your store colors and with your brand messaging,” she suggests. “You can even use imagery, such as diamonds that you follow around, or a beautiful photograph of gemstones on the ground or on a banner on the wall, to mark that area. There are creative ways of doing things, as opposed to having it look like a Band-Aid.” Opening up your space by pushing showcases to the perimeter of the room and creating a one-way directional traffic pattern will also give clients more breathing space, suggests Larry Johnson, owner of Larry Johnson Consulting and author of The Complete Guide to Effective Jewelry Display. “I think this has a double benefit of conveying the sense that the store is doing something to make the customers’ shopping experience safer, and it ensures they are guided through all of the displays,” he notes. Ample signage about products is useful as well, as it conveys information while minimizing personal interaction, Johnson adds. LEAV E I T AT T H E D O O R Before customers even enter your store, there are some simple ways to make their shopping experience quicker and safer while also keeping them interested and entertained as they wait outside. “List clear instructions on what protocols customers need to follow,” recommends Cutler. “Do they need a mask, hand sanitizer? How much jewelry can they touch? Are they able to try on rings? If they want to try on earrings, can they remove their masks? Laying it out up front will prevent customers from feeling stupid if they do the wrong thing.” Jewelers don’t need to limit their decorative efforts to the inside of their store, either, says Balaity. He suggests using the outer area to capture
customers’ attention while they’re lined up waiting for access. “Window displays can take on a new role to provide increased product information, such as product stories told through videos or text, with QR codes for more information,” he explains. “Temporary graphics on the sidewalk or paving may promote the store, especially when designed in a fun manner that distracts from the solemnity of the pandemic.” Levine recommends having a greeter at the door to make sure customers are wearing masks, limit the need to touch surfaces, and point people in the right direction for the service they’re seeking. She also thinks owners should use pre-entry time to hit an emotional note with clients. “Use your windows to communicate, and make it positive. It’s all part of building that subliminal confidence,” she says. “I think quotes go a long way toward putting people at ease and relaying you’re in it with them. Something like, ‘The best is yet to come,’ ‘Difficult roads often lead to beautiful destinations,’ ‘Sometimes we’re tested not to show our weakness, but to discover our strengths,’ or even just ‘2020’ with a big sunshine.”
Store design by Balaity Property Enhancement, featuring custom illuminated unlocked drawers that allow patrons to peruse fashion jewelry while limiting interaction with staff.
KEEP I NG I T REAL For a retailer, authenticity is of the utmost importance. It lets customers know they can trust what you say and feel safe with you. Therefore, jewelers need to follow through with any rules they set up, even if it means losing a potential sale. If you state that customers need to wear a mask, keep to that; if you say you will not have more than three customers in your space at a time, make sure you stick to that rule. “If you tell customers, ‘This is what we’re doing,’ and customers come to your store feeling like you will keep them safe, and then somebody else in the store does not have a mask on, that ruins your reputation,” Levine emphasizes. “Don’t be afraid of losing a customer, because in the long run, you can end up losing even more.” ◼ DIAMONDS.NET
SEPTEMBER 2020 39
COLLECTIONS
MEANINGFUL LOOKS The charms and studs in jeweler Jade Trau’s new Victoria line are perfect for personalizing — and for the mood of 2020. B Y S O N I A E S T H E R S O L TA N I
F
Jade Lustig, founder and designer of Jade Trau.
46 SEPTEMBER 2020
“WHAT I’M LAUNCHING IS A SMALLER PRICE POINT OR SOMETHING THAT YOU CAN ADD ON. IT IS QUITE FORTUITOUS TIMING” DIAMONDS.NET
or Jade Lustig, diamonds are always the focal point of her creations, not an afterthought. The founder of jewelry brand Jade Trau started sketching her new Victoria collection on a long-haul flight to Botswana, where she had been invited to visit De Beers’ operations as part of a small group of designers in November 2019. Named after the British queen who made sentimental jewelry popular, the range captures consumers’ current luxury aspirations: Meaningful, designed to be personalized and layered, and serving as a vehicle for the wearer’s story. What Lustig could not have anticipated was that her decision to create these charms and mini-studs at a lower price than her previous collections would make them ideal in the financially challenging Covid-19 era. “What I’m launching is a smaller price point or something that you can add on. It is quite fortuitous timing,” says the New York-based designer during a Zoom presentation of her new line. A dynamic, driven jeweler who didn’t let the lockdown stop her production — she even enrolled her 12-year-old twin sons to help with FedEx parcels — Lustig highlights how important her relationship with retailers is. In fact, she has given them the first pick of the Victoria line. “I am so grateful for all my retail partners,” she says. “They all invest in my collection, and they work so hard to not just promote their own brand. I wanted to give them a chance. So I’m waiting [before I] launch direct to the consumers.” jadetrau.com
R charm in 18-karat yellow gold with diamonds.
SPIRITUAL
These charms include patented Buddha-cut diamonds from a De Beers sightholder, as well as an evil eye and a cross that are both articulated to create a kinetic effect.
1
1 Buddha charm in
18-karat white gold with a Buddha-cut diamond. 2 Evil Eye charm in 18-karat rose gold with diamonds.
colored diamonds In this limited edition, Lustig revisits her Jade Trau classics with the addition of fancy-colored diamonds, a first for the designer.
2
Catherine Key charm pendant in 18-karat rose gold with white and pink diamonds.
LET TER S
“Everybody loves an initial. I designed all these letters in quarantine, and I really wanted to make sure that each one was different and had a unique point of view,” explains Lustig.
ZODIAC
3
“I love the zodiac [signs], and I feel very connected to them. And I wanted it to feel like my storytelling was authentic to what’s real for me,” Lustig says.
1 2 1 Mini Cancer studs in 18-karat rose gold with diamonds. 2 Aries charm in 18-karat white gold with diamonds. 3 Aquarius charm in 18-karat yellow gold with diamonds.
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SEPTEMBER 2020 47
THE FINAL CUT
WHAT’S YOUR STORY? R A PA P O R T M AG A Z I N E A S K S T H R E E L E A D I N G J E W E L R Y J O U R N A L I S T S W H AT I N S P I R E D T H E M T O C H O O S E T H I S C A R E E R . B Y L E A H M E I R OV I C H
JILL NEWMAN
A
fter graduating from journalism school, I joined Women’s Wear Daily as a reporter and was assigned the fine-jewelry and accessories categories. Straight away, I was fascinated by jewelry — the family businesses, the historic brands, the natural resources and emerging artists. I was inspired by the characters in the industry, from David and Sybil Yurman’s passion for their work to the way Nicola Bulgari protected his family legacy. Once I started to travel and see the diamond mines in Africa, cutting facilities in India and gem mines around the world, I was inspired by the stories, the people, the possibilities. I spent 20 years writing about jewelry for the Robb Report, where I had the opportunity to visit countless creative designers and jewelry houses. My latest obsession is pearls after visiting Jewelmer’s pearl farms off the Palawan islands and seeing firsthand how connected the future of pearls is to our environment. I’m also amazed by the way Claire Choisne, Boucheron’s creative director, continues to develop and pioneer new concepts in high jewelry, creating a whole new language around wearable luxury. I’m especially excited about the new initiatives by the mining and jewelry companies around sustainability and ethical practices. We still have a long way to go, but there is so much good work being done and plans to make the industry more transparent. 92 SEPTEMBER 2020
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R O B B AT E S
MICHELLE GRAFF
CONTRIBUTING JEWELRY AND WATC H E D I TO R, TOW N & CO U N T RY
NEWS DIRECTOR, JCK
E D I T O R I N C H I E F, NATIONAL JEWELER
I
started my journalism career as a newspaper reporter and, later, editor in Atlanta, Georgia. I moved there from my hometown, Pittsburgh, Pennsylvania, right after college. I loved Atlanta, but by my late 20s, I came to understand that I had outgrown the city. I decided it was time to move on, so I quit my job and followed my best friend, Andrea, to New York City. It was the fall of 2007 — right before the economic crash — and I was staying with another friend in Hoboken, New Jersey, while job hunting. One day, I spotted an online ad for “senior editor, diamonds” at a publication called National Jeweler, which at that time was owned by [global media firm] Nielsen. The ad described the job as challenging and mentioned opportunities for international travel. I was sold. I can’t say I ever really dreamed of a job as a “jewelry journalist” — or even knew such a career existed, to be frank — but I’ve found the industry to be interesting and, as promised, challenging, which is why I’m still here 13 years later.
“THE AD DESCRIBED THE JOB AS CHALLENGING AND MENTIONED OPPORTUNITIES FOR INTERNATIONAL TRAVEL. I WAS SOLD”
W
hen I graduated college, I wanted to be a writer, not necessarily a journalist. (That’s still a big interest; my first novel, a diamond industry mystery, will come out this year. More on that soon.) I saw an ad from Rapaport for a diamond writer. My grandfather was a diamond dealer on 47th Street, though he died about a decade before this. I told Martin Rapaport that I grew up with people in the business and knew a lot about it. Which was kind of BS, but I guess Martin pitied me and took me on board. Back then, his newsletter was six pages and had no ads, which is a huge difference from where it is now. From there, I went to National Jeweler and have spent the last 20 years [working] for JCK. I never dreamed I would be doing this so long; I remember [industry analyst and former JCK editor Russell] Shor saying the industry is like the Roach Motel: You check in, but you don’t check out. I met my wife in this business, so staying in it ended up being a good move. I don’t know if I would have stayed in the business as long as I have if I hadn’t worked for Martin. I was just out of college; what happened to [US jeweler] Zales [in the early 1990s] wasn’t top of mind for me. But Martin would get so excited about it (“Oh my God. Zales has gone bankrupt”) and had such passion for it, he infused me with that passion, too.