Rapaport Magazine - November 2017

Vol. 40 No.11 November 2017

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CAN THIS DIAMOND MAKE THE WORLD A BETTER PLACE? Peace Diamond King of Bling Martin Rapaport writes Meet celebrity aboutjewelry the emotional designervalue Webster of Stephen the 709-carat stone

Retail Auctions

Omni-channel, Strong Genevamillennials, sales influencers: for Sotheby’sHow and can Christie’s jewelry retailers survive?

RetailStyle Trends

The cool trends Challenges andthat will appeal to the modern opportunities of bride customization in 2018

Legacy Style

Insidejewelry the prestigious Animal is all house Cartier and its the rageofthis season.

Go170-year wild in your richstore history

Gemstone Trade Report

fascination and the TheThe impact of new –mine demandKué – foronColombian Gahcho the rough market emerald keeps growing

NOTE FROM THE PUBLISHER

A collection of treasures

IMAGE: Ben Kelmer

The Colebrooke River is as scenic as a river should be.

Its waters bob and weave across the rural landscape of County Fermanagh, Northern Ireland, their gurgling current providing a constant challenge to the salmon and trout as they move from Lough Erne to their spawning grounds in the river’s upper reaches. It is beautiful, but not remarkable to look at. In the lush, rain-soaked landscape of Ireland, competition for aesthetic magnificence abounds.

In 1816, however, the Colebrooke River did produce something remarkable. Along its stone-strewn shore, a brightly colored pebble that sparkled far more intensely than the river’s cold, clean waters caught the attention of a young girl, who stooped down and took it into her hand.

The girl brought her find, etched from the surrounding rocky landscape by the river’s persistent flow, to a local lady known for collecting small, interesting stones from the river bed. The woman, Lady Brooke, immediately recognized the beauty of the gift and rewarded the girl with a silver sixpence coin. It was her husband, however, just returned from touring Brazil, who suspected it might be more valuable than a mere curiosity. He sent the stone to West, a famous jeweler in Ireland’s capital city, Dublin. The jeweler, founded in 1720, pronounced it with certainty a diamond.

Sadly, West closed its doors in 2010 after 290 years.

However, to this day, the Brookeborough Diamond, set in a ring made from Irish gold, remains in the ownership of the Brooke family. It is still the only diamond of gemstone quality ever found in Western Europe.

This wonderful story revealed itself last month — over 200 years after the stone’s discovery — when diamond exploration company Karelian announced it was seeking a license to survey the countryside of Fermanagh, which it believes contains a hidden bounty of diamonds. As a 46-yearold native of Ireland, I never knew about the Brookeborough Diamond. It’s certainly not the prettiest diamond, and would most likely perform poorly under the scope of the GIA. Its value, however, is caught up in its story, which is a far greater treasure than any certificate (and perhaps the actual diamond itself).

We are lucky to work in an industry full of beauty, wonder and incredible stories. The Peace Diamond on the front cover of this month’s issue is the latest inspirational addition to the rich tapestry of tales at the core of the diamond industry.

And it is such stories that make diamonds so easy to fall in love with, again and again.

John Costello Publisher john.costello@diamonds.net diamonds.net

November 2017

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CONTENTS

IN-DEPTH

RETAIL

16 News

52 Retail profile

Industry: The Dubai Diamond Conference.

Retail: J.C.Penney rebrands its jewelry division.

Movers & Shakers: A look at who’s coming, who’s going.

Mining: Rough supply exceeds demand.

For watchmaker Shinola, building a distinctive American brand began with bringing jobs back to the US.

Little activity, too much stock

55 Retail insight

80 US retail

US retailers shed some light on what they’re doing to prepare for the holidays.

83 Hong Kong

59 RetailRap

84 Israel

26 News analysis: Is Bitcoin good for diamonds?

The cryptocurrency is making inroads in the industry.

26 The Peace Diamond challenge An opportunity for the industry to make the world a better place.

26 Profile: It takes a village The story of the world’s 14th-largest diamond.

IMAGES: Sotheby’s, Shinola, Vincent Wulveryck, Collection Cartier © Cartier

24 Opinion: Multifaceted millennials Targeting this diverse generation.

COVER 36 Shelf preservation Is the jewelry store an endangered species?

How are you planning to promote holiday sales?

90 Antwerp

Antique revival jewels that compete with auction house finds.

92 Polished data

62 Style

97 Price List

What you need to know about wedding jewelry trends for 2018 to woo the modern bride-to-be.

109 RapNet Price List

66 Designer

118 Calendar

GFG Jewellery’s Nilufer Kizilkaya shares how she moved from finance to fine jewelry.

120 The final cut

68 Legacy

72 Colored gemstone

Establishing long-term partnerships between the wholesaler and the retailer.

Rare Colombian emeralds are breaking auction records and wowing consumers.

46 Auction report & results White diamonds make a comeback.

diamonds.net

87 India

61 Jewelry Connoisseur

43 It takes two

For bringing out brilliance in color-enhanced diamonds, the cut is less crucial than the hue.

79 US wholesale

88 Russia

Five ways to future-proof your retail business.

44 Reflections

77 Trade report

STYLE & DESIGN

Cartier, the 170-year-old brand has changed hands since the founding family started it, but it hasn’t lost its edge

42 Riding the wave

MARKETS & PRICING

Correction

In the October issue of Rapaport Magazine “The color of your money” (Page 36) we wrongly attributed the sale of the Zoe Diamond to Christie’s. The sale actually took place at Sotheby’s.

November 2017

7

NEWS/INDUSTRY

Dubai Diamond Conference tackles key issues in trade Banking, marketing and community engagement among items on agenda at annual event.

By Avi Krawitz David Cameron touts ethical business In his candidly British tone, David Cameron admitted that he’d long been an admirer but not a customer of the diamond industry. The diamond engagement ring he gave his wife was inherited, the former British Prime Minister told delegates at the Dubai Diamond Conference — to polite gasps.

But Cameron (pictured, top right) was not there to offer his expertise on the industry. For that, the two-day conference had plenty more qualified personalities in attendance. Rather, his message echoed that of the conference’s opening session, stressing the role the business sector could play in uplifting the communities with which it interacted.

“Business needs to be fair, open and transparent, and you can get ahead of the game by being in favor of ethical behavior,” Cameron said. “Many African countries have suffered from a resource curse, and I believe we have to help countries make the right choices and spread their wealth among their people.

That’s a big opportunity for an extraction industry like diamonds.”

Consumers drive industry’s development goals After the UN set out in 2015 to achieve 17 Sustainable Development Goals by 2030, Sir Mark Moody Stuart, vice chairman of Global Compact, cautioned that it

A panel of experts discusses development issues. From left: Iris Van der Nieuwenkamp of the DMCC, David Bouffard of Signet Jewelers, Feriel Zerouki of De Beers, and Praveenshankar Pandya of the Gem & Jewellery Export Promotion Council.

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wouldn’t be possible without the participation of the business community — including the diamond trade.

The diamond industry needs to engage with communities affected by its mining and manufacturing sectors to understand what they want, Moody-Stuart said. Individual businesses must also address issues such as taxation, transfer pricing, and corruption if they want to contribute to the UN goals, he added. Panelists noted that the need to raise consumer confidence was a driving force in their respective best business practices.

Marketers need to direct the narrative Diamond-industry marketers need to be more disruptive if they’re going to drive the narrative to millennials, stressed Kolia Neveux, managing director of Bulgari’s Middle East and Africa operations. “We should be determining what their needs are, rather than being reactive and filling their needs,” Neveux said.

For its part, the Diamond Producers Association (DPA) is making sure to target different consumer segments in its marketing campaigns, stated its CEO, Jean-Marc Lieberherr. “We differentiate between older and younger millennials and have to draw on the different channels where they are,” he explained.

Banks expect further bankruptcies The recent bankruptcy filing by Exelco NV raised the industry’s risk profile, participants in the banking panel noted. Davy Blommaert, head of the Dubai-based National Bank of Fujairah (NBF), cautioned that the global industry was still considered a high-risk sector and that further consolidation and bankruptcies should be expected. “There are too many diamantaires vying for rough, and that has resulted in them paying premiums for goods that are not necessarily required by the market,” he said.

As such, the banks funding those rough purchases are over-financing the trade, added Erik Jens, head of ABN Amro’s diamond and jewelry unit. He estimated that the industry only needed about half the $15 billion in bank credit currently extended to the trade. diamonds.net

ADDITIONAL TAKEAWAYS c The lack of profitability is a pressing concern in the trade.

Diamond manufacturers have bought more rough at higher prices and sold fewer polished diamonds at lower prices — an unsustainable business model, presenters warned. c Do tenders and auctions represent the future of rough-diamond selling?

They’re appropriate for junior miners with limited production, but large manufacturers require long-term contracts for consistent supply, panelists said. Both are necessary for catering to different companies’ needs, they stressed. c Government officials from producer countries expressed concern about the impact of labgrown diamonds on the industry.

But the trade downplayed the threat, saying that as long as there was clear differentiation and disclosure, synthetic diamonds would gain only a small amount of market share.

IMAGES: Dubai Multi-Commodity Centre (DMCC)

c Panelists debated whether reform was necessary at the Kimberley Process (KP) certification scheme.

The industry needs to step up its KP implementation, but also raise its standards through due diligence on the part of diamond companies and by complying with the system of warranties and other self-regulation standards, said Stéphane Fischler, acting president of the World Diamond Council (WDC). c African producer countries continue to develop beneficiation programs that will let them expand into other parts of the diamond pipeline. Officials from Zimbabwe and Lesotho noted plans to add value to their mining-focused diamond industries this way, hoping to mirror the success of similar programs in Botswana and Namibia. diamonds.net

DUBAI RAISES ITS PROFILE

In just 15 years, Dubai has emerged as the third-largest diamond center, according to Ahmed Bin Sulayem, chairman of the Dubai MultiCommodity Centre (DMCC). The value of diamonds traded in the city stood at $26 billion in 2016, up from $300 million in 2002, when the DMCC was established, he reported.

Today, Dubai is diversifying its activity, making inroads in diamond manufacturing and financing, as showcased at the conference:

New factory to cut 813ct. Constellation

Almas Diamond Services opened Dubai’s first diamond manufacturing facility with an investment of $1.8 million, funded by rough dealership Nemesis International. The factory will focus on stones worth more than $25,000 per carat. Among the first of those will be the 813-carat Constellation diamond, which Nemesis bought in partnership with Swiss jeweler de Grisogono in 2016 for $63.1 million. The Constellation is expected to take 10 to 12 months to polish, with master cutters recruited from Antwerp to work at the factory.

NBF to open Antwerp office

The National Bank of Fujairah (NBF) is planning to open a representative office in Antwerp. A gap has opened as European banks cut their lending to the diamond sector, noted Davy Blommaert, NBF’s head of diamond lending. Blommaert expects the office to open in the first quarter of 2018, enabling the bank to service Antwerp-based companies with dollarbased lending in Dubai.

VAT introduction ‘may undo everything’

The introduction of a 5% value added tax (VAT) on rough and polished diamonds traded within the United Arab Emirates (UAE) would strongly jeopardize growth opportunities in the country, Dubai’s diamond leadership warned. The VAT charge is expected to take effect on January 1, marking a significant change in the UAE’s zero-tax policy.

Peter Meeus, the outgoing CEO of the Dubai Diamond Exchange, cautioned that if the tax were applied, everything the Emirates had achieved in the past 15 years would have been for nothing, and that other centers stood to gain.

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PROFILE

THE PEACE DIAMOND

CHALLENGE The Peace Diamond makes the world a better place. It is an opportunity for our industry to focus on what is good with diamonds. By Martin Rapaport

From right: Pastor Emmanuel Momoh and Chief Paul Ngaba Saquee stand with Martin and Ezi Rapaport while visiting the Rapaport Group office in Israel.

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diamonds.net

The Peace Diamond is a 709.48-carat rough diamond discovered on March 13 by impoverished artisanal diggers in Koryardu, Sierra Leone. It is the 14thlargest diamond ever found. At the request of the Sierra Leone government, the Rapaport Group is marketing and auctioning the diamond in New York on December 4, 2017, free of charge.

Koryardu is one of the poorest places on earth.

Sometimes there is insufficient food. There is no infrastructure. No clean water, electricity, medical care or school. No bridges or roads. No jobs.

But Koryardu has good, honest people. Those who found the diamond refused to sell it for cash and let it be smuggled out of the country. They insisted on turning the diamond over to the government to sell for them. They trust the government to get them a fair market price and to use the tax revenue from the diamond to provide vital infrastructure for their community and other communities in need across Sierra Leone. Taxes from the sale of the Peace Diamond will be paid to the government: a 15% royalty from the total sale price and another 30% income tax.

The diggers have put their trust in the government to do the right thing. Such trust is the basis for peace in Sierra Leone. All eyes are on the Peace Diamond. What will become of the diamond and the wealth it creates? They will not disappear as other diamonds have in the past.

The first challenge is for the government of Sierra Leone to allocate a reasonable share of its revenue from the Peace Diamond to benefit artisanal mining areas. This will create more trust and encourage more diggers to sell their diamonds through official channels, resulting in increased government revenue and building of infrastructure. This Peace Diamond is an opportunity to legitimize Sierra Leone’s diamond sector with formal channels of sale, distribution and taxation.

Sierra Leone has many desperate needs for funds.

Government revenue must be shared with nonartisanal sectors. However, the opportunity to create a positive economic cycle of activity in the artisanal field should not be ignored. A reasonable allocation of the revenue from the Peace Diamond to the artisanal sector will bootstrap economic growth as it increases trust in government.

The Peace Diamond will bring money to Koryardu and the Kono district. It will bring grassroots microeconomic prosperity, increasing jobs and opportunity for some of the poorest people in the world. It will create a better life for tens of thousands. diamonds.net

The second Peace Diamond challenge is for the diamond and jewelry industry. The Rapaport Group challenges the diamond industry to transcend the commodity approach of selling diamonds based solely on their physical characteristics. There is more to diamonds than the 4Cs. The solution to low-profit commoditization is straightforward. The diamond industry must create “emotional value” for diamonds.

The big idea behind the Peace Diamond is that “a diamond that makes the world a better place” has more value. It has positive energy because it has caused good things to happen. The challenge for the diamond trade is to create value by marketing and selling the positive impact that good diamonds bring to the world around them. It is time for us to sell the story behind the diamond — not just the diamond.

Let’s create value by creating ideas that differentiate our diamonds and enable them to communicate high-level emotions. Let’s make our diamonds more special and more beautiful because of the good they have done. The challenge is to imbue our diamonds with emotional value that makes people feel very good about them. Creating, marketing and selling such emotional value is my challenge to the diamond industry.

So as to move things along, we are offering $5,000 to whoever comes up with the best short video under 2.5 minutes that creates socially responsible emotional value for diamonds. There will be two deadlines and two $5,000 offers: the first deadline on November 15, 2017, the second deadline on December 18, 2017. The emphasis should be “diamonds that make the world a better place.” For submissions, email PeaceDiamond@diamonds.net.

Regarding our auction of the 709-carat Sierra Leone Peace Diamond on December 4, 2017, we ask our readers to use their social media connections to tell the story and communicate the idea of Peace Diamonds that make the world a better place.

Images, videos and stories about the Peace Diamond are available on our public folder on Google Drive at https://goo.gl/Ky8Q2n and on the PeaceDiamond.Com website. Contact us at PeaceDiamond@diamonds.net for more information.

Your ideas and suggestions are most welcome.

The Peace Diamond is an opportunity for our industry to focus on what is good about diamonds and the diamond trade. Let’s work together and make the world a better place. c Here’s how to stay in touch: Martin Rapaport on Facebook and LinkedIn, @martinrapaport on Twitter, and #martinrapaport on Instagram.

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COVER/THE STATE OF RETAIL

SHELF PRESERVATION

IMAGE: Shutterstock

Is the jewelry store an endangered species? Here’s a look at the key issues retailers need to consider – and act on – if they want to stay in business.

By Lara Ewen

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diamonds.net

Today’s retail climate has created new challenges for stores looking to survive. Rapaport Magazine explores what’s affecting jewelry retailers the most, and how the industry can overcome the most pernicious of these challenges.

WHAT’S JEOPARDIZING THE SURVIVAL OF JEWELRY RETAILING TODAY? 1. Unwillingness to embrace omni-channel Digital retailing has changed the way consumers approach their shopping journeys, but many retailers have been loath to embrace mobile and online platforms. That’s led customers to seek out more techsavvy competitors.

“Today’s customers want to shop where and how they want,” says Kathryn Money, vice president of strategy and merchandising at Brilliant Earth — an ethically sourced bridal and fine jewelry retailer that originally opened online and has since expanded into brick and mortar with seven showrooms nationwide.

“Retailers need to provide an omni-channel experience that serves customers through multiple touchpoints, and that is seamless, convenient and engaging.”

2. Inability to connect with millennials Millennial customers are not responding to traditional jewelry the way their parents did. They’re looking not just for alternate stones, such as colored gemstones and lab-grown diamonds, but also — and importantly — more meaning in the items they purchase. Retailers need to find ways to reach these clients in a way that appeals to their need for connection.

“Younger consumers are not interested in collecting possessions,” says Michael Brown, a partner in A.T. Kearney’s Consumer and Retail practice and head of its global consumer and retail omni-channel team.

“They are more interested in experiences.”

3. Clinging to outdated relationships What worked 25 years ago may no longer be working today. Detrimental behavior can include focusing on older customers instead of actively looking for new customers, or even hanging on to relationships with employees, vendors, reps or brands that no longer suit your store.

“While loyalty is an admirable quality, loyalty at the expense of business health and survival is not,” says Kate Peterson, president and CEO of retail consultancy Performance Concepts in Montgomery Village, Maryland. “Clinging to no-longer-productive relationships out of respect for long-standing history is the kiss of death for many businesses.” ▶ diamonds.net

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AUCTION REPORT

Auction blues

White diamonds make a comeback at Sotheby’s Hong Kong as more colorful pieces and signed jewels fail to sell. By Anthony DeMarco Possibly the most interesting thing about Sotheby’s Hong Kong Magnificent Jewels and Jadeite Autumn Sale was not what sold, but what didn’t. The October 3 auction achieved just over $64.5 million, selling 66.8% by lot and 66.2% by value — not great numbers. All categories took a hit, including fancy colored diamonds, colored gems and signed jewels, the three groups that have driven the robust growth of jewelry auctions in recent years.

All that glitters is not sold Specifically, two lots boasting statement fancy colored diamonds failed to sell. The first was a 5.14-carat fancy deep blue diamond ring with an estimate of $7 million to $9.6 million. The second was a pair of fancy pink diamond pendant earrings weighing 5.21 and 5.01 carats respectively, with an estimate of $3.8 million to $5.1 million.

Colored gems, including the “Big Three” — emeralds, rubies and sapphires — had difficulties as well. For example, an emerald and diamond parure consisting of a necklace, earrings and ring by Van Cleef & Arpels, with 84 carats of emeralds and 133 carats of diamonds (estimate $2 million to $3 million) went unsold. In addition, a rare Paraíba tourmaline and diamond ring (estimate $1.1 million to $1.4 million), and a sapphire and diamond ring by Bulgari (estimate $1.3 million to $1.9 million) failed to find buyers.

Signed jewels from Cartier, Tiffany & Co. and Graff joined Van Cleef and Bulgari in the unsold column.

Only the top lot sold as expected: A rare 13.26-carat Maniraja “pigeon blood” ruby mounted on a ring stacked with diamonds, designed by famed Indian jeweler Bhagat, went for more than $10.4 million, within its estimate.

accounted for three of the top 10 lots. A 31.98-carat, D-color, flawless unmounted diamond with excellent cut, polish and symmetry was the number-two lot, fetching more than $4.9 million, within estimates. Right behind it at number three was a pair of pear-shaped, unmounted diamonds weighing 12.36 and 12 carats respectively; these, too, fell within their estimate at more than $2.8 million. The number-eight lot consisted of two brilliant-cut diamonds respectively weighing 6.26 and 6.19 carats, which sold for $1.3 million, just above their high estimate.

Two fancy vivid yellow diamonds — not as rare and sought-after as blues and pinks — also managed to earn spots in the top 10. One was an emerald-cut, 20-carat stone that sold for more than $2 million, just above its low estimate, while the other weighed 21.22 carats and fetched more than $1.1 million. Both were mounted in 18-karat white gold rings.

“All categories took a hit, including the three that have driven the growth of jewelry auctions in recent years”

The diamond resurgence Meanwhile, colorless diamonds, which in recent years have lagged behind their rarer colorful siblings, 46

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Jadeite surprises Although the results of signed jewels overall were mixed, three pieces did stand out among the top 10 lots. An Art Deco-era “tutti frutti” bracelet by Cartier fetched more than $1.7 million, just below its high estimate, and a JAR ring featuring an oval, 8.49-carat natural Burmese ruby and diamonds sold for $1.7 million, just above its low estimate. The most surprising result, however, was an Art Deco jadeite bead and diamond necklace by Raymond Yard from 1957. It sold for more than $1.1 million — 23 times its estimate — making it the 10th-highest seller of the auction.

As always, jadeite is an important part of any Hong Kong sale. But even in this highly desirable category among Asian collectors, several jewels and objects of art went unsold. The two jewels that did make it into the top 10 were a bangle that fetched more than $2.1 million, within estimates; and a jadeite hoop and diamond pendant necklace that sold for more than $1.9 million, just above its low estimate. c diamonds.net

TOP 10 LOTS FROM SOTHEBY’S HONG KONG

A rundown of the Magnificent Jewels and Jadeite auction’s highest-selling items containing diamonds

1. 1857

6. 1860

$10,452,800

$1,779,200

Rare and impressive ruby and diamond ring, designed and mounted by BHAGAT An oval, 13.26-carat ruby flanked by two rose-cut diamonds, on a hoop set with faceted diamond beads and two ruby bead terminals. Mounted in platinum.

Rare Art Deco “tutti frutti” gem and diamond bracelet by Cartier An articulated-branch design with approximately 3 carats of circular- and single-cut diamonds, decorated with cabochon and carved ruby, sapphire and emerald leaves and fruits, mounted in white gold and platinum; circa 1928.

2. 1854

7. 1750

$4,980,800

$1,702,400

Very fine unmounted diamond A brilliant-cut, 31.98-carat, D-color, flawless, type IIa diamond with excellent cut, polish and symmetry.

3. 1863

Important pair of unmounted diamonds Two pear-shaped diamonds, respectively weighing 12.36 and 12 carats. Both are D-color, type IIa stones; the former is flawless and the latter internally flawless.

$2,854,400 4. 1698

Important fancy vivid yellow diamond ring An emerald-cut, 20.03-carat, fancy vivid yellow, internally flawless diamond mounted in 18-karat white gold.

$2,086,400 5. 1841

Very fine jadeite hoop and diamond pendant necklace A highly translucent jadeite hoop of intense emerald green color with a circular-cut diamond rondelle surmount, suspended from a black cord.

$1,978,880 diamonds.net

Exquisite ruby and diamond ring, JAR An oval ruby weighing 8.49 carats with a single-cut diamond gallery and hoop, mounted in platinum, signed JAR Paris, with French assay and maker’s marks.

8. 1686

Fine pair of unmounted diamonds Two diamonds weighing 6.26 and 6.19 carats respectively; both are D-color, flawless, type IIa stones with excellent cut, polish and symmetry.

$1,318,400 9. 1687

Impressive fancy vivid yellow diamond and diamond ring A cut-cornered square modified brilliantcut, 21.22-carat, fancy vivid yellow, internally flawless diamond in 18-karat white gold with an intertwined gallery and shoulders set with diamonds.

$1,164,800 10. 1840

Woolworth-Yard jadeite bead and diamond necklace A double-strand necklace of 109 graduated, highly translucent jadeite beads, featuring an oriental-motif clasp with circular-cut, marquise- and baguette-shaped diamonds in platinum and white gold; signed Yard.

$1,164,800

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LEGACY

Beyond the Cartiers The 170-year-old brand has changed hands since the founding family started it, but it hasn’t lost its edge. By Joanna Hardy Cartier is one of the most familiar high-end luxury jewelry brands, and like other iconic fine jewelers, it achieved this recognition through years of diligence, integrity, pride and passion. But there is another dimension that makes its staying power remarkable: Cartier has not been a family concern since 1964.

It is no mean feat to continue a heritage and deliver excellence in both craftsmanship and design without family involvement. To understand how the company achieved this, one has to look back to the foundations laid by Jacques, Pierre and Louis Cartier, who followed their father and grandfather into the business at the end of the 19th century. “It was the three Cartier brothers...who really brought life to both the designs and the business,” confirms Michel Aliaga, associate director of heritage documentation at Cartier.

Cartier brothers wanted to be ambassadors of French style, and when they took over the company from their father, Alfred — each later becoming responsible for one of its three showrooms, located in New York, Paris and London — they ensured that their designers were always trained in Paris to maintain the French spirit of their designs.

Paris was the epicenter for luxury, and Louis Cartier’s first wife, Andrée Worth, the granddaughter of haute couture designer Charles Frederick Worth, had a shop on Rue de la Paix in which Cartier exhibited its jewelry. This arrangement was an essential Jeanne Toussaint, photographed by Baron Adolph De Meyer, c. 1920. method for seducing new clients into thinking about which jewels would complement their dresses, or the The spirit of Paris other way around.

The early 20th century in Europe was a cornucopia of opulence; female American millionaires traveled From platinum to panthers to France to be part of Parisian high society, As the third generation, the brothers introduced and buying the latest fashion and jewels was new styles and workshops to the company, paramount in keeping up with that society. The enabling complete control over the designs and 68

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IMAGES: Cartier Archives © Cartier; Vincent Wulveryck, Collection Cartier © Cartier

manufacture. The 1900s saw the French invention of the oxyacetylene torch, which allowed goldsmiths to work with platinum instead of silver, since they could now reach platinum’s high melting point.

Being a strong metal that didn’t tarnish, unlike silver, platinum let them achieve fine lace-like work. Alongside Cartier’s close work with haute couture, the company concentrated on creating jewels inspired by the embroideries of Louis XVI, while ensuring that these jewels were comfortable to wear. The style, known as the Marie Antoinette or Garland style (1900 to 1914), was a huge success for Cartier.

As fashion changed, freeing women of the corset — and with the highly exotic introduction of the Ballet Russe, which captivated audiences and designers alike with its bright colors and flowing fabrics — clothes designed by Paul Poiret and inspired by African and Oriental cultures all translated into Cartier’s jewelry designs.

The Style Moderne was born, and in 1925, the Exposition des Arts Decoratifs (which had been planned for 1916, but was delayed due to the war) took place in Paris.

Haute couture designer Jeanne Lanvin convinced Louis Cartier to exhibit with the fashion houses in the Pavillon de l’Élégance.

But the jeweler’s success was also due to the influence and attitude of a woman who represented femininity and strength: Jeanne Toussaint, who joined Cartier in 1918 and later became the company’s artistic director for the next 50 years.

Suddenly, the feline was associated with the feminine thanks to Toussaint’s introduction of animals and nature, and it was under her direction that some of Cartier’s most iconic jewels were born.

Louis Cartier nicknamed her “the panther,” and this association led to the creation of the company’s famous cat jewels, the Panthère de Cartier.

“Tutti frutti” jewels are among the most distinctive of Cartier’s designs. They appealed to many fashion icons, including Daisy Fellows, the Singer sewing machine heiress who briefly edited Paris Harper’s Bazaar magazine until she decided it was more fun to wear the jewels than write about them. These pieces, set with carved rubies, emeralds and sapphires, became a refreshing alternative to the monochromatic Art Deco jewelry of the time. These jewels are incredibly sought-after at auctions today, and remain an inspiration for Cartier’s high jewelry.

Considered one of Jeanne Toussaint’s master creations, The Duchess of Windsor Panther was made in 1949 and features a panther sitting on a 152.35-carat cabochon sapphire. The first three-dimensional panther jewel was created in 1948, also for the Duchess of Windsor. The blackand-white pattern of the cat’s fur was first depicted in a wristwatch in 1914, three years before Toussaint received a cigarette case from Louis Cartier with a panther in its front motif. Since that moment in 1917, the company has created a new panther jewel every year, keeping the essence of Toussaint’s strong personality and distinctive style alive to empower other women.

Platinum necklace featuring two pear-shaped aquamarines totaling 35.21 carats, two briolette-cut aquamarines totaling 15.72 carats, one 2.75-carat pear-shaped aquamarine, aquamarine beads, emerald eyes, onyx, and brilliant-cut diamonds.

New management All this success and legacy-building was threatened, however, when the three brothers’ children — the fourth generation of the Cartier family — decided to sell off the shops, beginning with New York diamonds.net

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A HISTORY OF CARTIER

Alfred Cartier (second from right) surrounded by his three sons – from left: Jacques, Louis and Pierre – in Saint Jean de Luz, France, 1922.

1847 – Jeweler Louis-François Cartier founds the company, later run by son Alfred and grandsons Pierre, Louis and Jacques.

1899 – Premises open on Rue de la Paix.

1902 – King Edward VII of England orders 27 tiaras from Cartier for his coronation, referring to the maison as “the jeweler of kings and the king of jewelers.”

1911 – Jacques makes a trip to India at the time of the Delhi Durbar.

1917 – A cigarette case that Louis Cartier gives Jeanne Toussaint — later the company’s celebrated designer — is the first Cartier piece to show the entire panther.

1918 – Toussaint joins Cartier.

1933 – Toussaint becomes artistic director of high jewelry.

1949 – The Duchess of Windsor commissions a brooch featuring a panther rising above a cabochon sapphire weighing over 152 carats.

1962 – Claude Cartier sells Cartier’s New York.

1966 – Marion Cartier sells Cartier’s Paris.

1969 – Cartier buys a pear-shaped, 69.42-carat diamond at auction, then sells it to Richard Burton and Elizabeth Taylor.

1972 – A group of investors led by Joseph Kanouï acquires Cartier’s Paris.

1973 – At auction, Cartier buys one of its own pieces from half a century before, marking the beginning of its collection celebrating the changing styles of Cartier. The oldest piece in the current collection is from 1860.

1974 – The new owners of Cartier’s Paris acquire Cartier’s London as well.

1997 – Cartier celebrates its 150th anniversary.

2003 – The intersection of Fifth Avenue and 52nd Street in New York is officially named “Place de Cartier.” Cartier acquired the mansion in 1907 from Maisie Plant, who traded in her six-story house for a string of Cartier natural pearls and moved uptown. diamonds.net

IMAGE: Cartier Archives © Cartier

in 1964 and Paris in 1968. This meant each shop had a different owner until the new owner of Cartier Paris bought the London location in 1974.

As such, from 1964 until the early 1980s, Cartier went in three separate directions. There were a few collaborations between shops, and some designs were shared, leading to the success of the Love bracelet and the Tank watch, but it was the high jewelry that struggled to find a unity. There was no central art direction or essence to Cartier’s fine jewelry, which meant craftspeople were not achieving their creative potential. In addition, demand for fine jewelry was sparse, and that eventually resulted in some workshops closing.

In 1968, Robert Hocq, owner of the successful cheap lighter brand Silver Match, asked the jeweler if it would grant him a license to make a Cartier lighter, which it did, and the product became a huge success. So much so that Hocq, along with a few other investors, eventually bought Cartier Paris in 1972, then London in 1974, and two years later New York. He created Le Must Cartier, which also became successful, and with that, he was able to reintroduce the workshops — particularly Cartier Paris, the center of Cartier design.

The impact of Hocq’s vision cannot be underestimated, Aliaga stresses. “Le Must Cartier brought worldwide attention back to the company, especially from a new, young clientele, and gave Cartier the boost it needed to design new and exciting fine jewelry.”

From 1981 to 2000, Micheline Kanouï, wife of CEO Joseph Kanouï, was the artistic director, but after she left, there was to be no more head of design. Instead, it became more of a team effort. Today, any Cartier high jewelry design must receive approval from the director of high jewelry creations, Jacqueline Karachi, along with a committee of deciders including the CEO, the head of heritage, the workshop manager and the finance director.

“The Cartier design process rests on the traditions and practices established by Louis, Pierre and Jacques,” testifies Aliaga. “Their focus on working together is the same as that which drives our designing and making.”

Cartier’s secret to longevity, then, is the collaboration between its craftspeople and its designers, and it is the jewel that takes center stage. It’s no wonder that Cartier has been at the top of everyone’s wish list. But nothing is permanent, and it still takes vision and determination to keep it an international success. c

JEWELRY CONNOISSEUR

▼ Djula. Intricate millegrain detailing and an elaborate pattern give this white gold and diamond ring an old-world feel. djula.fr

▲ Butani. Shimmering, long tassels of diamonds hanging from white gold earrings evoke the towering Deco skyscrapers of New York City at night. butani.com

▲ Beverley K. This vintageinspired white gold pendant is set with blue sapphires and French-cut diamonds for an authentic look. beverleyk.com

◀ Sarah Ho. The white gold and diamond Fortunei cuff from the Hidden Garden collection has an Art Deco style with a stack of jade, blending heritage from the East and West. shojewellery.com

ANTIQUE REVIVAL JEWELS

IMAGE: Shutterstock

▲ Oh My Got. Set with 214

white and yellow diamonds As auction houses court millennials with digital bidding and a pair of dramatic platforms, and dusty antique shops in forgotten corners of smoky quartzes, these gold Emperor cufflinks hail from town are reinvented as sport for weekend vintage hunters, the brand’s Classic collection. ohmygotcufflinks.com jewels from the past have found a place in the present. To be classed as an antique, a jewel must be at least 100 years old, but each of these future heirlooms came fresh off the bench this year. These revival pieces are proof that styles from the history books — the linear designs of Art Deco, floral flourishes of Art Nouveau, Georgian repoussé, Victorian mourning jewels — are still very much in demand. By Rachael Taylor “Jewelry Connoisseur” Registered, US Patent and Trademark Office

diamonds.net

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COLORED GEMSTONE

GOING FOR THE GREEN Rare Colombian emeralds are breaking auction records and wowing consumers with their warm, intense color. By Rachael Taylor When Nayla Hayek, chief executive of Harry Winston, demanded in June that her proxy at the Christie’s New York auction of the Rockefeller emerald “bring this magnificent gem home at any price,” she may or may not have realized it would mean setting a new world record: When the hammer fell, the final sale price for this historic ring was $5.51 million.

Of course, this was no ordinary ring. It had serious provenance: Owned by American industrialist dynasty the Rockefellers, it had passed through the workshops of Van Cleef & Arpels and Raymond C. Yard. The 18.04-carat stone was also an exceptional example of a top-quality Colombian emerald.

Tom Berstein, head of jewelry at Christie’s in the US, went as far as to describe the Rockefeller as “one 72

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of the best gemstones to ever be offered at auction.”

The sale set a new price-percarat record for an emerald at auction — $305,000 — placing it on the map alongside recordsetting rubies and sapphires. The Sunrise Ruby, for instance — a 25.59-carat Burmese pigeon’s blood ruby — sold at Sotheby’s Geneva in May 2015 for $28.9 million (CHF 28.3 million), or $1.1 million per carat, while in October that year, Sotheby’s Hong Kong set a world record for a Kashmir sapphire when it sold a 27.68-carat sapphire ring for $6.7 million ($242,144 per carat).

director of New York Colombian emerald dealer EMCO Gem, which sources from the Itoco mine in the Muzo region — one of the most desirable areas for Colombian emerald mining. “The Rockefeller showed how rare and unique fine Colombian emeralds really are as the trade continues to pay record-breaking prices. You only appreciate how rare these stones are when you search for them and realize how difficult they are to find.”

Nhaissi expects demand for the gems to keep increasing, as they are becoming more popular in the commercial market. West Coast gem dealer Robert Procop shares Growing demand, limited supply this outlook, claiming he has “For fine Colombian emeralds, sold more emeralds in the past the market continues to grow,” three years than in the first 35 of says Oren Nhaissi, managing his career. diamonds.net

Miners at Muzo, Colombia.

Calcite mine.

The Colombian mountains of Fura and Tena.

IMAGES: Muzo

Supply, however, remains limited, especially for top-quality Colombian emeralds, says Nhaissi.

The country’s emeralds have always been highly prized for their warm, intense green color, with aficionados preferring them to the lighter stones from alternative mines in Zambia or Brazil.

Yet the difficulty of accessing ethically sound and reliable supply routes has caused many jewelers to look elsewhere.

Rough road “For the past 60 years, the Colombian business has been dominated by gangs — it’s been a focus of violence and very little government regulation,” says Charles Burgess, director of Minería Texas Colombia — the mining arm of Colombian emerald dealer diamonds.net

Emerald rough.

Muzo. “There was no foreign investment, no modernization.

Workers weren’t even paid. It was almost a feudal system.”

Muzo was one of the first internationally funded emerald miners in Colombia when it started digging in 2009, and Burgess and his team have worked closely with the government to drive out the gangs.

Other investors have taken note of the changing political climate, and Gemfields, which can be credited with driving much of the consumer demand for emeralds in recent years thanks to its modern marketing campaigns, laid out plans to enter the market through an interest in a Colombian mine.

It pulled out in May, however, and then-chief executive Ian Harebottle stated at the time that

▲ From top: Calibration, pre-shaping and checking the polished emerald.

“the company believes its portfolio of high-quality assets in Africa, as well as other potential expansion opportunities within Zambia, Mozambique and Ethiopia, are all likely to deliver considerably higher returns with shorter payback periods.”

Though Gemfields won’t be the rocket that Colombian emerald mining needs (just yet, anyway), the company’s latest tender gives a clear indication of the strong demand for emeralds in general.

The average price per carat at its October Zambian emerald sale was $66.21, its second-highest to date.

This and high-profile auctions of items like the Rockefeller ring bode well for the prospects of these velvety green gems from the Boyacá province and beyond. ▶ November 2017

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THE FINAL CUT

Michael O’Connor Jewelry stylist to the stars, TV host, and president of Style & Substance “I love the Apple Store. It is bright, personable and interactive. Whether you are there to buy a product or have a product serviced, you receive the same level of experience. The staff guides you through your visit in the most customer-friendly and efficient manner. The moment you enter the store, an associate greets you and identifies the purpose of your visit, then gets you in front of the right people on staff, expediting the process in a way that makes you feel your time is valued and your patronage appreciated.

Along the way, the staff manages expectations and keeps you well-informed.

You never feel out on your own. Whenever I am in an Apple Store, I feel entertained, educated and well-taken-care-of.”

Andrea Hansen Founder, LUXE Intelligence “I’ve been drawn to nontraditional luxury retail for many years. The arrival of concept stores six to seven years ago was the first public manifestation of what smart retail design did to address a customer interested in luxury but turned off by the boring, traditional retail experience. My favorite is Church Boutique in Los Angeles. The design is fabulous, the merchandising is eclectic and curated, and you feel like someone ‘gets you.’ It’s a rock-and-roll approach to retail that works across all categories presented because the Church team knows its ‘tribe,’ creating an experience from A to Z that speaks to that tribe with coherence and creativity — making customers feel richer, more cultured and fulfilled, by telling unique stories that resonate with their lifestyle preferences.”

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Amanda Gizzi Director of public relations and events, Jewelers of America “Target might sound like an odd choice. It isn’t flashy, highend or cutting edge. However, it has accomplished a lot in a noisy big-box-store environment. It has found a niche for itself and has stayed true to its brand. People walk into Target to get milk and walk out with televisions, home furnishings, clothing, and a cart full of other items they didn’t know they ‘needed.’

The app is user-friendly and encourages customers to engage both in and out of the store. Target has successfully developed partnerships with high-end and noteworthy fashion and home décor brands that create buzz and excitement season after season. Most important, the product-mix and inventory turnover keeps customers wanting to come back for more, whatever the more might be.”

Lawrence Hess Executive director, The Plumb Club “It’s not one store, but a retail culture that I admire in retailers like the Men’s Wearhouse and Jos. A. Bank. What they have in common is outstanding customer service. Their sales associates know their merchandise and ask the right questions to help you find what you need, not just sell you something. It’s not about pushing products, but finding solutions. When I know what I want, like a pair of jeans, I order it online. When it comes to suits that you need to try on, the experience is as important as the purchase. I also value the postsale services that the Men’s Warehouse offers. Beyond the one-time fee for tailoring, you get free re-alterations, perfect if your weight fluctuates, and free lifetime pressing at any location, great when you travel.” diamonds.net

Text compiled by Deborah Yonick

Good examples

Rapaport Magazine asks four of the industry’s top execs: What non-jewelry retail store do you admire the most?