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    AUG 13

    Financing

    in theDiamond

    Indu$tryRetailirks and Mayors:ebranded As Maison Birksignet Jewelers: Posts Drop

    n Fiscal Q2 Earningsrossworks: Signs Supplyeal With Chow Taiook Jewellery

    PolishedRio Tinto Diamonds: To PlayKey Role In Chinese MarketDe Beers: Buys 25% OfOnline Auction ServiceProviderCurtis FitchIndian Diamond Firms: CallFor Producers To Cut Prices

    MiningDominion Diamond Corp:Swings To Loss In Q2Canada: Government RenewsGeo-Mapping ProgramBotswana Diamonds: SignsExploration Deal WithAlrosa Units

    Rough

    RePoRtEdahn Golan ExplaWhy Banks AndTraders Are TryingTo Bring AboutPrice Reductions

    OCT 13

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    A FIRE ALL ITS OWN

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    walk with usand discover devotionrevealing beauty.

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    Manufacturers of triangles, heartshapes, halfmoons ,trapezoids & kites www.ylgolan.coDiamond Exch, Maccabi Bldg.1 Jabotinsky St. 8th floor, 34, Ramat-Gan Israel Tel: +972-3-7513922 Fax: +972-3-6126580 Internal: 2-32

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    Unit J2, 11/F, Kaiser Estate Phase II, No. 51 Man Yue Street, Hunghom, Kowloon, Hong Kong l Tel : 3904 2595 / 97 l Fax : 3904 25

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    To advertise in the magazine contact sales director Ian Francison tel: +44 (0) 20 7613 4445 or email:[email protected]

    For subscriptions call Amanda White at the NAG on tel: +44 (0) 20 7613 4445 or email: [email protected]

    The Jeweller magazine now incorporates Gem-As

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    IDEX MAGAZINE No. 282 | 21

    contents: focus

    90 financing in the DiamonD

    inDustry

    Money makes the world go round, goes the rerain o a

    song rom the 1972 musical movie Cabaret. Just as this was

    true or Sally Bowles, the character played by Liza Minnelli,

    it is also true or the many industries that rely heavily on

    bank fnancing. These include the global diamond industry,

    especially, the narrow-margined manuacturing sector o the

    business.

    Despite a long history o close cooperation, it oten seems

    that the diamond industry and its bank partners are at odds

    with each other. On one side, diamantaires regularly request

    more fnancing at lower cost, while on the other side, bankersspecializing in the industry eel that traders are living in the

    past. In the fnanciers opinion, the diamond sector does not

    understand that conditions that once existed are now gone

    and that new realities demand a more measured approach.

    Read on to fnd out more as Edahn Golan discovers just what

    it is that makes the diamond industry go round.

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    22 | IDEX MAGAZINE No. 282

    contents

    6439

    78

    86 128

    27 Letter from the editorby Danielle Max

    31 memo

    34 market snapshot

    A quick glance at the events of the past month

    retaiL et cetera

    39 retaiL rendezvous

    46 the porte point of view:

    recapturing BLack friday saLes

    with creative promotion

    by James Porte

    48 ideX onLine research

    Ken Gassman explains why the US jewelry industry is much

    larger than previously reported

    52 retaiL Bytes

    60 facets

    64 ceLeBrity choices

    poLished67 poLished news

    74 poLished diamond prices

    78 spinning for spineL

    by Mehahem Sevdermish, FGA D.Litt

    the ideX diamond report

    84 ideX onLine rough report

    86 a LittLe gossip aBout pearLs

    by Luigi Costantini

    mining

    123 mining news

    128 profiLeGirdharbhai Gajera, Director, Komal Gems NV

    129 advertisers List

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    w w w . i d e x o n l i n e . c o m

    O c t O b e r 2 0 1 3VOL. 29 No. 282

    EDITORIAL DEPARTMENT

    EDITOR-IN-CHIEF Danielle Max

    IDEX ONLINE EDITOR-IN-CHIEF Albert Robinson

    IDEX ONLINE RESEARCH Ken Gassman

    INTERNATIONAL CORRESPONDENTS Tamar Katzav, Edahn Golan

    COPY EDITOR Robin Miller

    ART DEPARTMENT

    GRAPHIC DESIGN Alexandra Quinn

    PRINTING Meiri

    MARKETING DEPARTMENT

    SALES ADVERTISING MANAGERS Yaron Barzilay, Osnat Davidov,

    Anish Kuriakose, Avivit Morhaim,

    PRODUCTION & CIRCULATION Helena Dorsht

    ACCOUNT MANAGER Ronit Erlich

    Founding Editor and Publisher of Mazal UBracha: Chaim Even-Zohar

    IDEX USA

    7 WEST 45TH ST. SUITE # 1602, NEW YORK, N.Y. 10036, U.S.A.

    TEL: +1-212-382-3528, FAX: +1-212-382-2671

    IDEX BELGIUM

    74 LANGE HERENTALSESTRAAT, 2018, ANTWERP, BELGIUMTEL: +32-3-234-1157, FAX: +32-3-234-2463

    IDEX ISRAEL

    11 HARAKOON ST., P.O.BOX 3107, RAMAT GAN 52130, ISRAEL

    TEL: +972-3-575-7455, FAX: +972-3-751-1203

    IDEX INDIA

    EC-02, GROUND FLOOR,TOWER E, CENTRE CORE, G BLOCK,

    BHARAT DIAMOND BOURSE,BANDRA KURLA COMPLEX,

    BANDRA (E), MUMBAI - 400051

    TEL: +91-226-127-3333, FAX: +91-226-742-6662

    MAILING ADDRESS

    IDEX MAGAZINE, P.O. BOX 3107, RAMAT GAN, 52130, ISRAEL

    E-MAIL: [email protected]

    IDEX Magazine is published in Israel by Idex Online S.A. and incorporates Mazal UBracha Diamonds

    Magazine. Reprints of individual articles are obtainable on application to the editor. All rights reserved.No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or

    by any means without the prior written permission of the Copyright owner.

    PUBLISHED BY IDEX ONLINE S.A.

    ISSN 0334-6838

    2003 IDEX ONLINE S.A.

    Fll om onln tradiv o pol mon

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    [email protected]

    magazineI N C O R P O R AT I N G M AZ AL U ' B R AC HA

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    march 27

    april 3, 2014

    Brilliance

    meets

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    IDE X MA GAZ INE No. 282 | 27

    In a Purple Haze

    by Danielle Max

    pring 2014 is a season I eel like I can

    relate to already. Tose color geniusesat Pantone have just released theirFashion Color Report or spring o nextyear and my avorite color purple isup there in more than one hue.

    Im really looking orward to having a slew o clothes,accessories and other paraphernalia in PANONE18-3224 Radiant Orchid, which is actually purplealthough you might not guess that rom the name,and PANONE 16-3823 Violet ulip, which is verypurple indeed.

    Te latest color predictions were made to coincide withNew York Fashion Week and hyped the top-10 colorpicks or men and or women. According to LeatriceEiseman, executive director o the Pantone ColorInstitute, this season consumers are looking or a stateo thoughtul, emotional and artistic equilibrium.

    Im not quite sure what that statement means, butthis sort o ashion trend prediction has alwaysascinated me. O course, its a bit o a chicken or eggscenario. Which comes rst, the color report or thecolors? Do we actually have choice when it comesto buying clothes and other goods, or is everything

    already planned out or us years in advance?

    No matter. I will be stocking up on enough purpleitems to see me through the next ew seasons when,no doubt, mortal enemies such as lime green andbeige will be back to taunt me.

    From a jewelry perspective, these color charts canalso be used to tremendous efect and can helpretailers push certain colors o stones.

    When I think purple, I automatically think tanzanite,

    so anyone selling this gorgeous stone should get onthe color bandwagon, especially as another 2014 hot

    color, Dazzling Blue, is also tanzanite riendly.

    Bright yellow Freesia is on the color charts, which

    puts me in the mind o beautiul canary yellow

    diamonds, while Celosia Orange is a perect prompt

    or orange sapphire, tourmaline, spessartine garnet

    or topaz.

    Do you pay attention to things like color prediction

    charts? Have you seen a diference in popular gems or

    diamond colors when diferent color trends come intoplay? Let me know at [email protected].

    S

    This sort of fashion trend prediction

    has always fascinated me. Of course,

    its a bit of a chicken or egg scenario.

    Which comes rst, the color report or

    the colors? Do we actually have choice

    when it comes to buying clothes and

    other goods, or is everything already

    planned out for us years in advance?

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    28 | IDEX MAGAZI NE No. 282

    Letters to the Editor

    was too much eort with no reward. Maybe when I get intojewelry (which is truly B2C), I can start doing this!

    Thanks again or inviting us to share our experiences.

    Siddhit Sanghavi

    Business Development at Esteem Diamonds

    Dear Danielle,

    You are correct that plying the social media world has somepotential or businesses, but it is essentially a narcissisticendeavor. People like to be recognized and count thenumber o ollowers they have and how oten they are

    quoted or re-tweeted. But that is a long way rom havingcommercial impact.

    Years ago we were ailures i we did not have a ax number,then it became not having a cell number, then an emailaddress and a web site. Does Facebook, Twitter or Pinteresthave the same necessity? No, in my opinion. They bringwaves o useless chatter, which most serious people ignore.Like yoursel. There is no urgency to them (as yet), as therewas to the communication tools o the past.

    Ben Janowski

    Janos Consultants

    Dear Danielle,

    Regarding the online promotion arena, I can share a

    perspective rom the diamantaires in India. Marketingmanagers in this not-so-Internet-savvy part o the industryail to realize three things: initial setup, their approach andtheir position in the supply chain.

    By initial setup I mean companies getting aboard the socialmedia bandwagon without having the right PR machinery.Do you have actual content to post? Is there a designerwho makes inographics/photos etc? I you're only coveringevents o your frm, like new branches, products, how isthat news presented? Once the customer is enticed enoughto actually click through to your website, does the websiteitsel hold water? Does it give a pleasing interace to theonline shopper?

    Approach is how we engage them. Theres tons o distractionsso a once in a year update such as we're opening a newstore at ABC or a random diamond photo doesn't entice areader much. Only when you've been really eeding him/hercontent he/she really loves on a consistent basis will it makethat person get up and come to that inauguration.

    By position I mean are you B2B or B2C? I work at a diamondmanuacturing company. You'll see Facebook pages o manybig manuacturers. We also wanted to extend our presence

    online in our own small way. For us, it was only to givepeople a confrmation that we are a valid, ully unctioningcompany because people tend to search you beore buyingrom you. But when I started opening Twitter/Facebookaccounts, I realized, hey, no one buys loose diamonds roma manuacturer! The people who buy rom us (traders,jewelers) don't need social media engagement and thosewho do (ordinary web surers) do not end up actually buyingrom us. A ew people did compliment me on our onlinepresence but like you, my interest in posting stu waned. It

    The jury may still be out, but IDEX Online'sFacebook page is up and running. Like us tokeep up with all the news, views and opinions atwww.acebook.com/IDEXOnline

    I received a number of responses to my recent letter aboutsocial media. Judging

    from the responses, readers seem to be split on the question of whether it is

    necessary to spend time on developing social media strategies.

    Here are a couple of responses:

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    Diamond Tower, Suite 470-472 (4th foor) P.O.Box 536, 54 Bezalel St. Ramat Gan 52521 Israel Tel: 972-3-7522200 Fax: 972-3-752

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    IDE X MA GAZ INE No. 282 | 31

    very single day we take chances.Some small, some dangerous butinevitably, making decisions meanstaking risks. It is a basic part o doingbusiness and growing.

    At present, the diamond market is in a delicate state,and the decisions it makes in the coming monthswill inuence it or years to come. Previously, thiscolumn has detailed the new and perilous situationthe market is currently acing: Rough prices areuneconomically high, diamond polishers marginsare narrow and now cut to nothing because polishedprices are practically at, and all the while consumersare buying, albeit not aggressively.

    E

    Opportunity, Corner of

    Wild Gamble

    by Edahn Golan

    Compounding this dicult situation is the act thatthe banks that fnance the industry, at least therough-to-polished wholesale part o the pipeline, are

    increasing their charges and lowering the availabilityo fnancing. Tis is making business developmentdicult and expansion a growing challenge.

    We have also discussed the diculties in generatinggrowing sales at the consumer level. In the US,consumers are buying a lot more jewelry, but thediamond jewelry sub-category is not growing atthe same rate. Tereore, diamond jewelry is losingmarket share.

    In China, the big bright hope or consumer growth,diamond jewelry sales are increasing; however,

    Chinese jewelry buyers are still largely conservative.Tis means that gold jewelry is still preerred becauseo the investment qualities it represents. Aboveall, however, jade remains much more desirable toChinese consumers than diamonds.

    Compounding this, the banks that

    nance the industry, at least the

    rough-to-polished wholesale partof the pipeline, are increasing their

    charges and lowering the availability

    of nancing. This is making business

    development difcult and expansion a

    growing challenge.

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    32 | IDEX MAGAZINE No. 282

    | memo|

    Tis does not mean that there is no room or diamondjewelry to grow, but the expectation that jewelry setwith diamonds in a wide range o qualities and colorswill be snapped up rom the display cases has provedto be overly optimistic.

    In Japan, ater a great three-year run, imports o loose

    polished diamonds are starting to weaken, and dontget me started on India and its economic woes. It isenough to mention that gold prices have declined andthat many consumers preer to take advantage o theopportunity and buy gold jewelry.

    Making matters worse, diamond manuacturers aresitting on a huge stock o polished diamonds. Tisis the output o the rough diamond overhang thattraders bought in the past year even though theyknew it was not entirely economical. Eventually, thesegoods were polished and are now waiting or buyers.

    However, it is not all gloom and doom. I the industrycontinues to do business in the same old way, no

    improvement should be expected, and that is adangerous route.

    On the other hand, this is an excellent opportunity torethink the old model, and chart a resh course. Tereis so much to do, including improving eciencies,investing in smart marketing, bringing reporting

    standards into the 21st century, addressing ethicsissues and blocking the continued ood o undisclosedlab-made diamonds into parcels o natural goods.

    Te challenges are many, but acing them is a necessity.It will give rise to many new opportunities, especiallyor those seeking to re-invent themselves in an era oeasily accessible data and infnite memory.

    Not addressing the issues is taking a wild gamblewith the uture o the industry. Ignoring the problemsis like sticking your head in the sand. As I am oten

    reminded, in that position, your rear end is stickingout, and anyone can give it a good kick. Tat is not agood way to move orward. IDEX

    Taxation

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    Beyonddoubt.

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    34 | IDEX MAGAZINE No. 282

    market

    snapshotby Albert robinson

    the month in review

    Although demand or jewelr in the United States remained rm in June, the rise

    was lower than that seen in recent months. Anecdotal and other evidence points to

    increasing condence among shoppers as the econom improves, aleit slowl.

    Figures were likel hit a 4-percent rise in the consumer price index or jewelr, its

    largest increase or 16 months. For most o this ear, American jewelr consumers

    had een taking advantage o dropping infation. Infation or the rst hal o the eardeclined slightl under 1 percent.

    JEWELRY

    Retail jewelry prices in the US market rose moderately

    in June, the result o a seasonal jump that has beenseen or at least the past our years. In contrast, jewelry

    wholesale prices ell or the frst time in 13 years. Tis

    is to be largely expected because retail jewelry prices

    in the United States usually climb in August andSeptember. Tis is because retailers typically raise

    prices in the summer to get consumers used to them

    beore the critical holiday selling season when theytraditionally make their annual proft.

    PERFORMANCE

    Posting their weakest perormance so ar this year,

    jewelry sales totaled just $2.3 billion in June. For the

    January-June period, sales are estimated to have risen

    by 9.1 percent over the same period last year.

    Te fnancial results o major jewelry retail chains

    released in late August provided a good snapshot o the

    state o the markets. Zale Corp. reported a narrower

    loss in its fscal ourth-quarter and a proft or the ull

    year or the frst time in six years. Same-store sales, a

    critical indicator or the retail sector,

    continued to rise sharply up 5.6

    percent in the ourth quarter but

    slower than the 8.3 percent increase

    posted a year earlier.

    Meanwhile Signet, another mass-

    market retailer, reported slightly

    lower proft compared to the year

    beore in its fscal second-quarter.

    Revenue climbed by just 3.1 percent,

    alling $30 million short o analysts

    expectations o $910 million. Same-

    store sales rose 3.6 percent, compared

    with the frms expectations o a rise

    in the low-to-mid single-digit range.Source: IDEX Online Research

    350

    300

    250

    200

    150

    100

    201220112010 2013

    Gold

    Silver

    Platinum

    Diamonds

    Index of Diamond & Precious Metals Prices

    June 2010 June 2013 by month

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    IDEX MAGAZINE No. 282 | 35

    14000

    13000

    11000

    12000

    100009000

    Jewelry Share Index U.S.

    Sep 2012 Sep 2013 by month

    Blue Nile [NILE], Charles & Colvard [CTHR], Movado Group [MOV], Signet Jewelers Limited[SIG], Tiffany & Co. [TIF], Zale Corporation [ZLC]

    100009500

    10500

    9000

    11000

    11500

    Jewelry Share Index Europe

    Sep 2012 Sep 2013 by month

    Bulgari [BUL], Damiani [DMN], LVMH [LVMH], PPR [PP], Richemont SA [CFR], Theo Fennell [TFL]

    11000

    12000

    10000

    9000

    Jewelry Share Index India

    Sep 2012 Sep 2013 by month

    Classic Diamond [BOM:523200], Gitanjali Gems [BOM:532715], Goldiam International[BOM:526729], Rajesh Exports [BOM:531500], Su-Raj Diamonds [BOM:507892],Suashish Diamonds [BOM:526733]

    11000

    9000

    9500

    10500

    10000

    Mining Share Index

    Sep 2012 Sep 2013 by month

    African Diamonds, Anglo American [LON:AAL], BHP Billiton [NYSE:BHP], Firestone Diamonds[LON:FDI], Gem Diamonds [LON:GEMD], Harry Winston [NYSE:HWD], Petra Diamonds[LON:PDL], Rio Tinto plc [NYSE:RIO], Rockwell Diamonds [TSE:RDI]

    +4748.07 (47.48%)

    +1608.67 (16.09%)

    -2635.79 (-31.63%)

    -368.23 (-3.68%)

    8000

    7000

    6000

    2012 2013

    S SO N D M MJ JF A AJ

    2012 2013

    S SO N D M MJ JF A AJ

    2012 2013

    S SO N D M MJ JF A AJ

    2012 2013

    S SO N D M MJ JF A AJ

    | MARkEt sNAPshOt |

    In the luxury sector, iany & Co. posted

    a rise in revenues and net prots in

    its scal second quarter. Global sales

    jumped 4.4 percent on the year to $925.9

    million in the second quarter, while

    net income rose to $106.8 million rom

    $91.8 million. Te retailer said protwas higher than expected due to lower

    diamond and gold prices. Interestingly,

    the upscale jeweler said its price rises

    had not deterred shoppers. Sales at stores

    open at least a year, or same-store sales,

    increased 5 percent globally.

    OUtLOOk

    Global diamond industry leaders are

    condent o a strong holiday sales season

    based on growing demand or goods,while many smaller diamond companies

    and brokers say the industry is largely at a

    standstill. Nonetheless, the rising trend o

    sales in the critical American market this

    year cannot be ignored, and would appear

    to suggest a relatively rosy sales outlook.

    POLIshED PRICEs

    Polished diamond prices continued to

    soten in August, according to the IDEX

    Online Polished Diamond Index. TeIndex averaged 131.3 in August, a decline

    o 1.9 percent year-over-year and 0.8

    percent below July.

    Te decline was the second consecutive

    drop and ollowed two months o price

    increases, providing a urther seesaw

    eect to the Index since the beginning

    o last year. Te Index has climbed eight

    times since the start o 2012, and posted

    decreases 12 times. Te overall eect is a

    5.4-percent all since January 2012, and a1.2-percent decline in 2013 so ar.

    Te reasons or the decrease in the Index

    in August range rom traders and other

    members o the diamond business being

    away rom their ofces due to summer

    vacation, to supplies o polished goods on

    the market handily outstripping demand.

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    36 | IDEX MAGAZINE No. 282

    In addition, rough diamond prices are too high tobe economically easible to manuacture, while

    manuacturers are keeping prices irm in a bid

    to maintain polished diamond prices in order to

    avoid losses.

    WINNERs AND LOsERs

    On a year-over-year basis, the price Index or round

    goods dropped or all the main sizes during August.

    One-carat rounds lost an average o 1.9-percent

    compared to the overall price a year ago, the average

    price o 2-carat rounds were 3.7 percent lower and4-carat rounds were 9 percent below their prices a

    year ago. Following a small recovery in June, the price

    Indexes o 1-, 1.5- and 2-carat

    princess-shape diamonds ell

    again in August on a month-over-

    month basis.

    OUtLOOk

    Te US market appears to be

    relatively strong, as shown

    by good results or Americanretailers in the rst hal o this

    year. Meanwhile, the all in growth

    in China this year could be at an

    end with moderate growth to

    ollow. Te Japanese economy is

    also showing signs o recovery as

    the new government shakes up

    the long-moribund economy. Te

    only trouble spot appears to be India, where the alling

    rupee is hitting consumer demand by making diamond

    jewelry more expensive.

    ROUGh DIAMONDs

    As or most o this year, the rough trading environment

    remains a difcult one. Producers have done little to

    temper price rises, thereby making the purchase o

    rough goods an economically difcult decision to justiy.

    While rough prices have risen, the price o polished

    goods has either declined or, at best, stood still. Te

    global economy is still brittle, as seen by spiking oil

    prices whenever the possibility o US air strikes on

    Syria is mentioned. And in India, with the rupee in

    reeall against the US dollar, the price o rough goods is

    prohibitively high.

    WORth kNOWING

    Curi Fic: Curtis Fitch is the De Beers Groupsrough diamond online auction service provider. Theminer announced in September that it had bought a25-percent equity stake in the frm. De Beers, whichsells approximately 10 percent o its global roughdiamond supply through auctions, anticipates that theinvestment will deepen the partnership between thetwo companies, strengthen the conditions or urther

    innovation and position it to meet the evolving needso a growing auction customer base.

    Source: IDEX Online Research

    150

    140

    130

    120

    110

    20122011 2013

    IDEX Online Polished Diamond Price Index

    PEAK

    July 2011146.7

    August 2013

    131.2

    2011 Avg

    135.8

    2013 Avg to date133.6

    2012 Avg

    136.8

    | MARkEt sNAPshOt |

    Our goal is to address proper business practice inthe very broadest sense, and together, CIBJO andRJC are able to provide comprehensive solutions. Theprime benefciaries o this agreement need to be the

    greater jewelry industry, jewelry consumers and allo our stakeholders to the very grass-roots level.

    Gaetano Cavalieri, president of CIBJO, the WorldJewellery Confederation, speaking after the signing ofa Memorandum of Understanding with the ResponsibleJewellery Council (RJC), whereby the two associations willwork together to advance responsible business practicesamong all sectors of the jewelry supply chain.

    qUOtE

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    IDEX MAGAZINE No. 282 | 37

    The summer edition o the US & International Diamond Week, held in Israel rom August 26 to 29, recorded thebusiest week ever on the trading foor o the Israel Diamond Exchange (IDE). More than 1,200 traders, buyersand sellers packed into the IDEs trading halls, according to organizers o the event. There were positive salesreports rom the 400 Israeli diamond rms who had booths at the event, particularly among traders dealing inlarger stones.

    OUR OUtLOOk

    Te start o the vital holiday sales season will be

    anticipated with more ervor than usual this year, as

    manuacturers wait to see i consumer demand is going

    to be high enough to create a satisactory margin o

    proft between rough and polished prices.

    Image: Israel Diamond Exchange

    | MARkEt sNAPshOt |

    LINGO

    Brand Diluion The risk o over extension can leadto brand dilution where the brand loses its strongassociations with a market segment, product area,or quality or price.

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    Contact us today for a Free Consultation:

    +972 (3) 613-4486or email us at:

    [email protected]

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    IDEX MAGAZINE No. 282 | 39

    Retail

    Rendezvous:

    F F

    MyryTe My Little Mystery collection from Meissen comprisesrings, earrings, bracelets and pendants in three product lines.Diamond, Glamour and Jewels use a mix of diamonds andwhite or rose gold with pastel-colored gemstones made fromMeissen porcelain.

    1

    OCT2013 reTail, eT CeTera

    1

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    2

    5

    2

    lab WorkIn a collaboration between Oroarica and Rand Renery, the new, ethically mined Absolute Jewelrybrand is crated in its entirety rom pure, certied, responsible gold. Designed byTe LAB, the newlylaunchedHeart of Gold Engagement Ringcollection or the Absolute brand comprises rings that are

    complete, holistic and balanced; mirroring what every happy marriage needs.

    3

    Perfect Combination

    Estelle and Lita by Royal Asscher is a partnership between Grammy winnerEstelle andLita Asscher.Te collection consists o several pendants, some incorporating Royal Asschers Stars concept withoating diamonds and amethysts, rings that reach over the length o the nger and bracelets andearrings with purple amethyst and black and white diamond details.

    4

    Creative ForceTree talented designers Vah Ghazarian, Esin Guler and Mihran Guler, have come together as thecreative orce behind G&G Creations. Te Stacks collection eatures smaller earrings, stackable

    rings and bracelets in polished and oxidized silver, as well as tri-color gold set with rubies, sapphiresand diamonds.

    5

    Braziian souTeLooping Shine collection rom Brumani wants to connect the many bonds people have in lie:riends, relationships, experiences Its a tribute to love, to afection, to companionship, to riendshipand to ellowship. All these emotions are expressed in the warmness o the rose gold while the beautyo the double-aceted translucent quartz, polished with diamond powder, makes these pieces shineeven more.

    3

    | retail et cetera > retail rendezvous|

    2

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    6

    7

    8

    42 | IDEX MAGAZINE No. 282

    6

    Get KnottedInternationally acclaimed British jewelry designer Stephen Webster has added bold new piecesto his Forget me Knot sterling silver collection. Te line is characterized by the unmistakableusion o luxury with an edge, which epitomizes Stephen Webster designs. Cocktail rings andcu s eaturing the iconic barb moti take center stage in this modern collection

    7

    Space StyleTe pendant and rings in the Galaxy line rom Isabelle Langlois transport wearers light yearsrom our planet. Set with shimmering stones that evoke the stars and bound by a fne cobweb-like ribbon set with white diamonds reminiscent o the Milky Way, the line includes a white goldpendant pavd with 14.09 carats o colored gemstones and 0.45 carats o diamonds. Te yellowgold rings eature various colored gemstones and diamonds or a twinkling look.

    8

    Fall RomanceRomance is just one o the inspirations or the designs in the newTi SentoMilano collection. Teother is the authentic urban city liestyle o Florence, especially the Renaissance details ound inthe citys many beautiul buildings and bridges. Black stones are used in several shapes, oten incombination with rose gold plated details.

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    | retail et cetera> retail rendezvous |

    9

    10

    9

    Full CommitmentWhen it comes to jewelry, ew pieces are as signicant as those given during a proposal orexchanged at a wedding. Sandy Leongs Commitmentcollection is crated in 18-karat gold withdiamond accents and has a natural earth-like texture, which demonstrates an important valuethat she seeks to inuse into every piece: giving back to the planet.

    10

    Naturally PinkTe Naturally Pink collection rom Bombay Jewelry Manufacturers has an even productassortment o both bridal and ashion pieces. Tese unique designs incorporate natural pink andwhite diamonds to ofset cost and give depth to the designs. Te collection is available in both14-karat and 18-karat gold and has a choice o two diferent diamond qualities.

    11

    Viva ItaliaLeo Pizzo jewelry is created in the heart o Valenza, Italy, and this Italian style shines through inevery piece. Te 18-karat gold is skillully processed by expert goldsmiths and urther embellishedwith selected diamonds and precious stones. Te company says that each jewel, even the mostsimple, is characterized by high standards o excellence and quality.

    10

    11

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    46 | IDEX MAGAZI NE No. 282

    hy should jewelers give up the

    biggest shopping day o the year,

    Black Friday, November 29 to

    consumer electronic stores, Big Box

    retailers and the Internet?

    In 2012, retail sales or Black Friday were $11.2

    billion, and that doesnt even count the Black

    Weekend. With an improving economy, sales areexpected to rise in 2013.

    Fiteen to 20 years ago, jewelers were excited

    to welcome the Tanksgiving weekend since it

    represented a healthy dose o store trac, layaway

    sales and a ringing cash register. Now, jewelers

    normally have to wait anywhere between three to 10

    days beore Christmas to experience their sales jolt.

    So whats the takeaway? Give up, or ght back with a

    smart marketing plan and a lot o creativity.

    Jewelers can now reclaim a piece o the TanksgivingWeekend pie by ofering employees o local businesses via their employer a reason to come into their store

    with a unique Black Friday Tanksgiving git card.

    So, hereS the plan:

    Many o your customers own businesses. Meetwith them and suggest that you can provide HappyTanksgiving Cards that include a $50 git voucher

    (that can expire on Cyber Monday) rom your storethat can be distributed to all their employees oneor two days beore Tanksgiving, which alls on

    Tursday, November 28.

    retail et cetera

    The Porte Point of View:

    Jewelers Recapture

    Black Friday Sales

    with Creative PromotionBy James Porte

    W

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    IDE X MAG AZI NE No. 279 | 47

    | retail et cetera > THE PorTE PoINT oF VIEW|

    Porte Marketing Group is a leader in providing turnkey

    manufacturing solutions to jewelry retailers and manufacturers.

    Founded by James S. Porte in 1989, the company provides

    research, consulting, seminars, printing, photography and

    graphic design services for the jewelry industry. For further

    information, contact James Porte at [email protected] or go towww.portemarketing.com

    Teres no cost to the employer or local business, andthere is even the chance that they might appreciatethe efort so much that they ofer to pay a portion orthe redeemed git cards. o increase the connectionwith the employer, the presentation should bepersonalized with their name to urther emphasizethe third-party endorsement o your store.

    o boost the potential trac even more, use yourcontacts rom the Rotary Club, Country Club, etc.,and meet with some employers that you know in yourtrade area.

    Getting people into the store early to buy and look atwhat you have to ofer is important since you dontwant the available disposable income consumershave to spend on jewelry to be already spent whenthey come into your storeget them early!

    At rst glance, however, it might seem that the

    consumers getting up at 3 a.m. in the morning to waiton line or hours to get the deal o a lietime are notyour customers. But they can be, i you could target

    the right prospects based on where they work and thecompany they work or.

    So, look around your local area which is sure to includelaw rms, sotware companies, small actories,hospitals and the like.

    And, i it all goes to plan, you may be starting theHoliday Season with 100-200 new customers talkingabout your store. IDEX

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    nnual US fne jewelry and watch sales

    between 2005 and 2012 were almost $2

    billion higher than initial estimates,

    according to newly revised data rom

    the governments Bureau o Economic

    Analysis (BEA). Tis eight-year period includes the

    Great Recession, when many jewelers struggled to

    sell merchandise.

    otal jewelry sales, based on restated government data,

    were a record $73.7 billion in 2012, up rom a previously

    reported level o $71.5 billion. Based on an estimated global

    jewelry sales level o near $150 billion, this means that theAmerican market generated roughly hal o all global fne

    jewelry and watch sales, and is by ar the largest market inthe world.

    Te BEAs annual data revision was ar larger this year thanin prior periods: 10 years o jewelry sales, beginning in 2003,

    were restated. Normally, the BEA revises just a ew prioryears when it publishes its annual revision.

    Minor upward revisions were made to jewelry sales in 2003and 2004, ollowed by signifcant increases in jewelry salesbetween 2005 and 2012. Most years jewelry sales levels

    A

    retail et cetera

    IDEX Online Research:

    US Jewelry Industry LargerThan Previously ReportedBy Ken Gassman

    taBle 11

    US Fine Jewelry & Watch Sales (in US$ billions)Comparison of Restated Figures to Earlier Data

    Year

    RestatedFine Jewelry & Watch

    SalesPreviously Reported

    Fine Jewelry & Watch Sales$ BillionsDifference

    Percent Change"Restated" versus

    "Previously Reported" Sales

    2001 $47.6 $47.6 No chg No chg

    2002 $49.1 $49.1 No chg No chg

    2003 $51.9 $51.4 $0.6 1.1%

    2004 $56.6 $55.3 $1.2 2.2%

    2005 $59.8 $58.1 $1.6 2.8%

    2006 $64.2 $62.3 $1.9 3.0%2007 $67.2 $65.3 $1.9 2.9%

    2008 $65.3 $63.4 $1.8 2.9%

    2009 $60.3 $58.4 $1.8 3.1%

    2010 $62.6 $60.8 $1.8 2.9%

    2011 $69.4 $67.3 $2.0 3.0%

    2012 $73.7 $71.5 $2.2 3.1%

    Source: BEA & IDEX Online Research

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    IDE X MAG AZI NE No. 282 | 49

    | RETAIL ET CETERA > IDEX ONLINE RESEARCH|

    were raised by $1.8 billion to $2.2 billion. On average, the

    increase represented a 3-percent gain in total sales, as

    able 1 illustrates.

    Here are highlights rom the revised BEA data regarding US

    ne jewelry and watch sales:

    US jewelry sales or 2012 were restated upward to $73.5

    billion; prior data pegged 2012s American jewelry salesat $71.5 billion. Tis was a gain o 3.1 percent.

    Jewelry sales were revised upward beginning with

    2003 data, with signicant revisions to more recent

    years. While jewelry sales were revised upward or the

    past 10 years, each years sales level generally ollowed

    economic activity during the Great Recession, which

    had a negative impact on jewelry sales during 2008, 2009

    and 2010, as Figure 1 illustrates.

    During the Great Recession in the last hal o the prior

    decade (ofcially December 2007 through June 2009), USne jewelry sales ell less than 11 percent peak-to-valley.

    Tis period occurred between 2007, when pre-recession

    jewelry sales peaked at $67.2 billion, and 2010, when

    jewelry sales bottomed at 60.3 billion or the year.

    On a monthly basis, jewelry sales ell by 16 percent in

    December 2008. Tis was a particularly difcult period or

    the American jewelry industry, since roughly 20 percent

    o annual sales are generated in the month o December.

    Figure 2 illustrates percent change in annual ne jewelryand ne watch sales trends since the year 2000.

    New data shows that ne jewelry represents just over88 percent o total ne jewelry and ne watch sales in

    2001

    Source: BEA

    10

    20

    30

    40

    50

    60

    70

    80

    2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

    Restated Sales

    Prior Sales Data

    FIGURE 1

    Comparison of Restated US Jewelry Sales To Previously Reported DataIn US$ billions

    Source: BEA

    -2

    -4

    -6

    -8

    0

    2

    4

    6

    8

    10

    12

    5.5

    -3.1

    3.2

    5.7

    4.6

    -2.9

    -7.7

    6.3

    8.9

    5.6

    7.5

    3.8

    10.8

    FIGURE 2

    US Fine Jewelry & Watch Sales TrendsPercent Change Year-Over-Year

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    | RETAIL ET CETERA > IDEX ONLINE RESEARCH|

    the US, with fne watches accounting or the balanceo just under 12 percent o sales, as Figure 3 illustratesor 2012. Prior to this years restatement, the BEA datashowed that fne jewelry sales were 87 percent ototal industry sales, and fne watches represented 13

    percent o total revenues. Over the past two decades,

    fne watch sales have slowly been losing market shareto fne jewelry.

    Specialty jewelers lost more market share than originallyreported. In 2012, specialty jewelers sold only about42.7 percent o all jewelry in the US market, down roma market share o nearly 75 percent in the early 1970s.Multi-line retailers such as Wal-Mart, Costco and J.C.Penney have been taking signifcant market share romspecialty jewelers, especially independent (non-chain)amily-operated jewelry merchants.

    Figure 4 summarizes the long-term loss o market

    share by specialty jewelers, defned as retail merchantswho generate a majority o their revenue rom jewelrysales. IDEX

    Source: BEA

    Fine Jewelry

    Fine Watches

    11.7%88.3%

    FIGURE 3

    Sales Mix - Fine Jewelryvs. Fine WatchesUS Market - 2012

    Source: NBER, BLS, JIRI, Dept of Commerce

    FIGURE 4

    Specialty Jewelers' Market Share

    30%

    40%

    50%

    60%

    70%

    80%

    19681970

    19801990

    20002010

    2012

    Recession

    Low point42.7%in 2012

    Peak72.9%

    in 1971

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    Whats somthing most popl dont know abot yor job? Its the only business in the world conducted on trust. You sell 1 to 5million dollars just on the telephone, without even a signature.

    A diamond dalrs most valabl asst? Reputation. Yes, you need a sense o artistic value and a knack or design, but the mostessential part is integrity. You cant survive without it.

    What has doing bsinss in Hong Kong taght yo abot th Asian markt? Its one o the strongest in the world. Every day, thereare new millionaires and new businesses. Asians are very investment-conscious. Diamonds are saer and more proftable than money in a bank.

    All-tim favorit prchas? Most recently, a 100+ ct. D FL. Incredible brilliance and scintillation. Such a beauty. People ell down whenthey saw it.

    Did it arriv with a grading rport? Ha, ha. GIA, o course. What responsible businessman, with a good reputation and name, would sella diamond without a GIA report?

    Why is a GIA valation so important to ons rptation? Its the most reliable, authentic, dependable gem institute in the world.People know that, especially in the Far East. Remember what I said about reputation? A GIA report is crucial.

    Bsinss words to th wis? Selling is an idea game. The more knowledge you have, the more confdence you eel.

    GIA gratefully acknowledges those who use our resources to further world

    expertise in gems. Invest in your success at WWW.GIA.eDu

    ephraim zionof Dhrs Limitd handls

    mor diamonds in a day than most popl s in a liftim.

    Hr h discsss th powr of rptation, global diamond invstmnt

    and why a GIA rport is vital to any bsinss bilt on intgrity.

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    Luxury Institute

    Survey Reveals Risk

    of Brand DilutionA recent survey by the Luxury

    Institute discovered that while many

    afuent shoppers those with a

    household income o $150,000 or more

    welcome brand partnerships, hal

    o these afuent consumers believe

    that partnering with another brand

    luxury or mainstream could damage

    the brands image or reputation.

    According to the survey, the industries

    where partnerships are seen as most

    ruitul are hotels and resorts, travel,

    ashion and airlines.

    Te survey revealed that women are

    ar more likely than men to applaud

    ashion partnerships, as well as those

    involving jewelry and beauty.

    Perhaps unsurprisingly, men are

    most enthusiastic about partnerships

    involving automobile companies,

    while afuent shoppers older than 50

    are especially interested in airline and

    cruise collaborations.

    Luxury brand collaborations wealthy

    shoppers would like to see include

    Michael Kors and Apple, Chanel and

    Air France and Lexus and Te Ritz-

    Carlton.

    However, brands need to be careul

    about the sort o partnerships they

    create. Brands should partner with

    companies with similar values and

    service standards to avoid potential

    risks o collaboration, said Luxury

    Institute CEO Milton Pedraza, adding,

    Tis maintains credibility and helps

    to ensure a consistently positive

    customer experience.

    Sterling Jewelers,Zale Corp. ReachAgreement OverLawsuitSterling Jewelers Inc. and Zale

    Corporation announced they have

    reached an agreement with respect

    retail et cetera

    Retail

    Bytes

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    to the lawsuit pending in Te United

    States District Court or the Northern

    District o Ohio.

    Te case centered on advertising

    produced by Zales stating that its

    Celebration Fire diamond was the

    most brilliant diamond in the world.Sterling Jewelers led the lawsuit

    last November just as the holiday

    shopping season was getting started.

    Te parties said they have agreed to

    a negotiated resolution o the case,

    which will go into ull orce and efect

    as o March 1, 2014.

    Te details regarding the settlement

    are not being disclosed.

    Pandora BuysJewelry DistributionRights in BrazilGlobal jewelry retailer Pandora has

    signed an agreement with City ime,

    S.L. to acquire City ime do Brazil

    Comrcio e Importao Ltda. in a

    cash deal or the distribution rights to

    Pandora jewelry in Brazil.

    Te acquisition will give Pandora theopportunity to enter the Brazilian

    market directly and to add to its nine-

    shop strong retail chain Pandora

    Concept. Te retailer currently has ve

    stores in Sao Paulo, two in Rio de Janeiro,

    one in Brasilia and one in Curitiba.

    City ime Brazil generated revenues

    o almost $6.5 million in 2012 and $8.2

    million in the rst seven months o

    2013. Pandora jewelry has been sold in

    Brazil since 2009.

    Pandora CEO Allan Leighton said

    the agreement gives the company, a

    stronger presence in a country which

    we believe holds great potential. He

    said that City ime has established

    a presence or Pandora in Brazil

    and that the agreement was in line

    with the rms strategy o expanding

    geographically as well as maintaining

    control over the brand.

    Under the terms o the agreement,

    Pandora will pay a one-time,

    undisclosed amount to City ime or

    acquiring City ime Brazil.

    City ime, which is located in Spain,

    has been a Pandora distribution

    partner since 2005. Following the

    agreement, it will continue to be the

    distributor o Pandora jewelry in

    Spain and Israel.

    Signet JewelersPosts Drop in FiscalQ2 Earnings, ProftSignet Jewelers Ltd. reported that

    scal second-quarter earnings slipped

    4.7 percent as the retailer continued to

    see weak sales in the UK, while higher

    costs pressured margins.

    For the current quarter, Signet said it

    expects same-store sales to rise in the

    low-single-digit percentage range.

    Signet, which owns the mall-based

    Kay Jewelers chain and the higher-

    end Jared the Galleria o Jewelry,

    has seen its revenue improve in

    recent quarters. Tis is due to strong

    domestic sales largely helping to ofsetweaker demand rom Europe.

    Te company acquired Ultra Stores

    Inc. or $57 million in November in a

    bid to broaden its customer base with

    the help o the outlet-center chain.

    For the quarter ended August 3, Signet

    reported a prot o $67.4 million

    versus prot o $70.7 million a year

    ago.

    Revenue increased 3.1 percent to

    $880.2 million. Analysts had recently

    orecast revenue o $910 million.

    Same-store sales rose 3.6 percent,

    while Signet had expected a rise in the

    low-to-mid single-digit range.

    Te US division generated a same-store

    sales increase o 4.9 percent, led by a5.8 percent rise at Kay and an increase

    o 5.5 percent at Jared. Overall revenue

    Image: Pandora

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    rom the division, which makes up

    the majority o Signets sales, rose 5.6

    percent to $741.1 million, driven by

    particular strength in bridal, colored

    diamonds and watches.

    E-Commerce sales rose 29 percent to

    $31.2 million.

    In the UK, sales ell 8.5 percent to

    $139.1 million, while same-store sales

    slipped 2.4 percent.

    White PineLaunches JewelryConsulting ServiceRecycled diamond company White

    Pine rading LLC is launching anew division providing consulting

    and other services to retailers,

    manuacturers and wholesalers, and

    the industrys asset-based lenders.

    White Pine Jewelry Solutions, which

    will be headed by Michael Lebowitz,

    will also design and manuacture

    pieces created rom White Pines

    recycled diamonds.

    Its services include inventory

    evaluation and appraisals; evaluation

    o business options rom store closing,

    consolidation or promotional sales

    to overstock sales events; guidance

    on running special on-premises sales

    events or hands-on management o

    events and the development o event

    auction and quick sale programs using

    White Pines platorm.

    Te company said these core services

    will be augmented by the divisions

    diamond jewelry manuacturing

    operations as well as an upcoming

    program to supply retailers with

    consigned close-out inventory drawn

    rom White Pines vendors.

    Lebowitz, who has more than 42 years

    o experience in jewelry retailing,

    wholesaling and consulting, was most

    recently executive vice president

    o Buxbaum Jewelry Advisors.

    Previously, he served as a consultant

    to manuacturer M. Fabrikant & Sons

    and held positions as a ne jewelry

    merchandise manager or Boston

    jeweler Shreve Crump & Low and as a

    close-out buyer and asset appraiser at

    Gordon Brothers Corp.

    CIBJO and RJCSign Deal to WorkTogether onBusiness PracticesCIBJO, the World Jewellery

    Conederation, and the Responsible

    Jewellery Council (RJC) recently signed

    a Memorandum o Understanding(MoU) at the International Jewellery

    London Show.

    Te MoU will work to urther advance

    responsible business practices among

    all sectors o the jewelry supply chain,

    and will include the use o CSR education

    programs developed by CIBJO, in

    collaboration with the United Nations,

    and chain o custody certicationprograms developed by RJC.

    Te MoU refects the willingness o

    both organizations to collaborate oneorts to build a solid understanding

    and commitment rom the jewelry

    industry to improve its perormancein the crucial areas o human rights,

    social and environmental perormanceand ethical business practices.

    Among the key components o theMoU is the establishment o an

    MoU Working Group to oversee the

    execution o the agreement. Te groupwill be headed by Gaetano Cavalieri,

    CIBJO president, and James Courage,

    RJC chairman. Tey will appoint two

    industry representatives rom theirrespective organizations to address the

    synergies inherent in the cooperationbetween these two global groups.

    Our goal is to address proper businesspractise in the very broadest sense,

    and together CIBJO and RJC are able to

    provide comprehensive solutions, saidCavalieri. Te prime beneciaries o

    this agreement need to be the greater

    jewelry industry, jewelry consumersand all o our stakeholders to the very

    grass-roots level.

    I am personally very pleased to be

    working with CIBJO and its president

    Gaetano Cavalieri and to be part o theMoU working group. I am sure there

    will be positive outcomes rom thiscollaboration or the jewelry industry,

    said Courage.

    Stuller, Inc. and

    Gemvision ReleaseCounterSketchStudio Update

    With the growing desire or unique

    jewelry, Stuller and Gemvision have

    released CounterSketch Studio 4.0,which is an extensive update to the

    existing 3D jewelry design sotware.

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    haRd woRk pays off.manufacturer import - export p o l i s h e d d i a m o n d s i n a l l s i z e s a n d q u a l i t i e s

    m a n u f a c t u r e r o f l a r g e s i z e s , r o u n d s a n d f a n c i e s , u p t o 2 5 . 00 c t s

    schupstra at 1/7 2018 antwerpen belgium tel + 32 3 231 21 47 [email protected] www.pinchasi .com

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    Crossworks SignsSupply Deal WithChow Tai FookJewellery

    Canadian diamond manuacturerCrossworks Manuacturing Ltd.

    has signed a long-term supply and

    licensing agreement or its patented

    Hearts and Arrows ideal cut square

    diamond with Chow ai Fook Jewellery

    Group Ltd.

    Crossworks will supply the diamonds

    and Chow ai Fook, a leading jewelry

    retailer in China, will have the

    exclusive distribution rights to sell

    them through its extensive retail

    network in Greater China.

    Crossworks square-cut Hearts and

    Arrows diamond has achieved the

    grade o ideal or light perormance

    rom leading gem labs, and oers an

    eight-sided square-cut diamond that

    exhibits eight hearts and eight arrows.

    Te launch o this diamond in

    Greater China through Chow ai Fook,

    one o the worlds most iconic jewelry

    retailers, achieves our vision to bringbeautiul diamonds to consumers,

    said Crossworks president Uri Ariel.

    Te hearts and arrows ideal square

    cut diamonds will be exclusively

    sold through Chow ai Fooks points

    o sale and marketed under the De

    Beers Groups Forevermark brand in

    Mainland China, Hong Kong, Macau

    and aiwan.

    Birks and MayorsRebranded asMaison BirksCanadian jeweler Birks and Mayors

    has been rebranded as Maison Birks.

    Te rebrand includes a modifed

    logo and a brand new advertising

    campaign that the company says

    retains its 135-year-old history, but

    also expresses the modern experience

    it oers to its clients.

    Te new logo retains the companys

    emblematic blue box, but it now

    also includes a diamond shape,

    which reerences both the companys

    expertise in diamonds, and 1897, the

    year in which it was ounded.

    Te new advertising campaign also

    highlights the companys Canadian

    heritage.

    Birks has been a household name in

    Montreal and in the rest o Canada

    or nearly 135 years, and it remains

    the reerence in terms o quality

    and prestige or consumers and

    connoisseurs across the country, said

    Jean-Christophe Bdos, president and

    CEO o Birks & Mayors Inc.

    While attesting to our rich history,

    the new corporate identity rejuvenates

    Maison Birks brand proposition, and

    allows Canadians to discover Maison

    Birks in all its purity. Tis is a historicmoment or our company,

    Te launch coincided with the

    opening o Maison Birks frst mono-

    brand store, located in the Mapleview

    shopping centre in Burlington,

    Ontario. A second mono-brand store is

    due to open in the Square o Quartier

    DIX30 in Montreal, Quebec. IDEX

    |retail et cetera > retail bytes|

    Image: Maison Birks

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    haRd woRk pays off.manufacturer import - export p o l i s h e d d i a m o n d s i n a l l s i z e s a n d q u a l i t i e s

    m a n u f a c t u r e r o f l a r g e s i z e s , r o u n d s a n d f a n c i e s , u p t o 2 5 . 00 c t s

    schupstra at 1/7 2018 antwerpen belgium tel + 32 3 231 21 47 [email protected] www.pinchasi .com

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    Scent of the Past

    Te Museum o London is gearing up

    or the opening o Te Cheapside

    Hoard: Londons Lost Jewels, which

    is due to open on October 11. As part

    o the preparations, the museum

    has commissioned British master

    perumer Roja Dove to reimagine the

    scent o Londons vanished past.

    Te perume, which will be spliced

    with ingredients popular in the 17th

    century, will combine lavender,

    rankincense, civet and other notes

    to create an evocative sensory

    installation, transporting visitors

    back to the opulent perumes o

    Elizabethan and Early Stuart London.

    Te scent will be displayed alongside

    one o the star pieces o the Cheapside

    Hoard a gold, enamel, diamond and

    opal-set scent bottle.

    Te Cheapside Hoard is the worlds

    largest cache o Elizabethan and

    Early Stuart jewelry. Discovered by

    chance in a cellar deep underground

    in Londons Cheapside in 1912, theupcoming exhibition is the frst time

    that the Hoard has been displayed in

    its entirety since its discovery more

    than 100 years ago.

    Te collection includes jewels rom

    the emerald mines o Colombia, the

    diamond gravels o India and the pearl

    banks o Bahrain.

    retail et cetera

    Facets

    According to the museum, Te jewels

    and gemstones within the Cheapside

    Hoard hail rom all corners o the

    world, showcasing Londons role in the

    international gem trade in an age o

    global conquest and exploration. Each

    piece tells a tantalizing story, rom git

    giving at the Elizabethan court to tales

    o international trade and discovery

    and vignettes on ashion, wealth andpower.

    Te Cheapside Hoard will be displayed

    alongside multimedia installations,

    objects rom the Museum o Londons

    collection and rarely seen portraits,

    creating a picture o the ashions and

    culture at play in Elizabethan and

    Early Stuart London.

    The Gold, Enamel, Diamond andOpal-Set Scent Bottle

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    |retail et Cetera > facets|

    Tacori Unveils TheServing Tray andThe Lock AdsCaliornian jewelry brand acori has

    unveiled the latest installments o itsIconic Passion ad campaign with two

    bold new images, Te Serving rayand Te Lock.

    Te Lock was inspired by the romantic

    love locks phenomena in which loversattach locks to bridges and then toss

    the key into the water. Te rings,says the company, are the symbol oa acori couple locked in a bond o

    eternal love, and represent the key tounlocking your beloveds heart.

    Meanwhile, the Serving ray eatures

    the vivid hues o red, blue and blackrom aocoris City Lights Collection.

    Presented on a luxurious sterlingsilver tray, the unveiling o glamorous

    new designs rom acori exposesa modern passion or old-worldglamour.

    Te new ads have already beeneatured in the September issues o

    Harpers Bazaar, Essence, InStyle, Marie

    Claire, W, Womens Health and Vogue.

    HOF launchesPerfect MomentsSocial MediaPlatform

    Hearts On Fire has launched itsPerect Moments social media

    platorm. Te company says it is asocial storytelling community that

    allows people to share experiencesthey deem perect moments in

    an environment ocused solely onpositive happenings.

    Users share their moment on a global

    map, pinpointing its location with animage and short description. Tey canalso search by keyword or location to

    explore moments in specifc areas andget ideas or events such as marriage

    proposals, date nights and vacations.

    Perect Moments provides integrationwith Facebook, allowing users to

    create a profle and connect withFacebook riends, scrapbook their

    personal moments and comment onmoments. It also allows integration

    with other social media platorms,

    such as witter and Pinterest, as wellas working with Instagram.

    Hearts On Fire has also released

    an iPhone app that allows users tocapture and upload moments on-

    the-go with seamless integration andquick, simple steps.

    Te Hearts On Fire DNA has always

    been about helping our customerscelebrate lies perect moments, said

    Caryl Capeci, VP o Marketing. Bygiving everyone a digital platormto document and share their best

    experiences with riends and amily,we are simply helping them to

    embrace these moments in a timeless,enjoyable manner.

    TanzaniteOneLaunches OnlineJewelry Boutiqueanzanite mining companyanzaniteOne has made the move

    online with the opening o a jewelry

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    and loose stone boutique. Tis is the

    rst time the company has directly

    oered its gemstones to consumers.

    anzaniteOne said that being able

    to retail tanzanite directly to global

    consumers means the company is

    now involved in every step o the route

    rom mine to market, thereby allowing

    it to guarantee the provenance, quality

    and ethical status o its stones.

    Te tanzanite oered on our online

    boutique is more than just a collectiono rare and beautiul gemstones

    and jewelry said Linda Kennedy o

    anzaniteOne Online, Our tanzanite

    is the only tanzanite that is ethically

    mined - guaranteeing peace o mind,

    something which is increasingly

    important to educated and socially

    conscious consumers.

    All anzaniteOne Online pieces come

    with the anzanite Foundations

    Mark o Rarity and a anzaniteOne

    certicate o authenticity and origin,

    guaranteeing the tanzanites ethical

    status, authenticity and confict ree

    origin. Te online boutique is also a

    member o the World Responsible

    Jewellery Council.

    anzanite is ound only at the oothills

    o Mount Kilimanjaro in anzania,

    Arica. It was rst discovered in 1967

    Bll Clnton to Spak

    at Cnturon

    Former US president Bill Clinton

    has been announced as the keynote

    speaker at the Centurion Scottsdale

    show next year.

    Remarks by President Bill Clinton

    will take place on February 4 at the

    invitation-only show.

    Ater leaving the White House,

    President Clinton established the

    Clinton Foundation, which has the

    mission to improve global health,

    strengthen economies, promote

    healthier childhoods, and protect the

    environment by ostering partnerships

    among governments, businesses,

    NGOs and private citizens.

    So ar, more than 2,100 Clinton

    Global Initiative commitments have

    improved the lives o 400 million

    people in 180 nations.

    Te Centurion Scottsdale show runs

    rom January 31 (early arrivals) to

    February 5. idex

    Tanzanite Mine ShaftImage: Tanzanite Foundation

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    Lily Collins wore a Pluma

    Italia necklace to the Te MortalInstruments: City of Bones Germanypremiere at Sony Centre on August20 in Berlin, Germany.

    64 | IDEX MAGAZI NE No. 282

    retail et cetera

    Celebrity Choices

    Actress Michelle Rodriguez chose a Le Vianring as her accessory for the 2013 Teen ChoiceAwards at Gibson Amphitheatre in August inUniversal City, California.

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    IDE X MAG AZI NE No. 282 | 67

    Rio Tinto Diamonds

    to Play Key Role in

    Chinese Market

    Rio intos diamonds will play an

    important role in the growing Chinese

    diamond jewelry market, its Diamonds

    and Minerals chie executive, Alan

    Davies, said recently in Hong Kong.

    Speaking on the eve o exclusive

    viewings o the prestigious Argyle

    Pink Diamonds ender, Davies said,

    Te demand or diamond jewelry in

    China is expected to grow strongly

    into the next decade, underpinned by

    an increase in wealth and a growing

    middle class.

    He also said the companys Argyle

    underground mine will help meet

    Chinas growing demand or diamonds

    and will ensure the uture supply o

    a diamond production prole that is

    uniquely placed to develop new types

    o jewelry or the Chinese market.

    Rio into said that in addition to rare

    pink diamonds, Argyle also produces

    large volumes o afordable diamondsthat are ideally suited to creating

    ashion accessories or the emerging

    middle class in China.

    raditionally, the Chinese jewelry

    market has been dominated by large

    white diamonds used on bridal

    occasions, a trend imported rom the

    west, but there has been a structural

    change in the China market, according

    to Rio into

    Chinese consumers are increasingly

    seeking diamond jewelry as a daily

    ashion accessory. o tap into this new

    category o diamond purchasing, one

    o Rio intos key initiatives has been

    to partner with Chinese diamond

    jewelry manuacturer and retailer

    Chow ai Fook, to promote Argyle

    diamonds in the jewelry giants stores.

    Te resulting Australian Colours

    collection has surpassed all

    expectations and is now available

    in more than 1,000 Chow ai Fook

    stores throughout greater China, said

    Davies.

    OCT

    2013 POLISHED

    Image:

    Brown Diamonds from the Argyle Mine

    Image: Rio Tinto Diamonds

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    OrganizersPositive About US& InternationalDiamond WeekTe summer edition o the US &

    International Diamond Week in Israel

    saw the Israel Diamond Exchanges

    (IDE) busiest week ever, with more

    than 1,200 traders, buyers and sellers

    crowding the IDEs trading halls,

    organizers reported in a summary othe event.

    Tere were positive sales reports rom

    the 400 Israeli diamond rms that

    had booths at the event, particularly

    among traders dealing in larger stones.

    From an organizational point o view,

    this was a major eort, IDE general

    manager Moti Besser said. Te logistic

    requirements and arrangements were

    huge: screening registered buyers,

    nding 600 hotel rooms, receiving,

    hosting and getting the visitors into

    the buildings, the business matching

    breakasts, the educational program

    and the social events and, o course,

    the complicated but airtight security

    arrangements, Besser explained.

    Marketing itsel as the most secure, but

    also the most user-riendly diamondexchange in the world. Te exchanges

    head o security Israel Vantsovski

    said, We literally had hundreds

    o additional security ofcers on

    call during the US & International

    Diamond Week. Most o our security

    team members were not noticed by

    the visitors.

    De Beers Buys 25%of Online Auction

    Service Provider

    Curtis FitchDe Beers has announced an investment

    in its rough diamond online auction

    sales platorm with the acquisition

    o a 25-percent equity stake in online

    auction service provider, Curtis Fitch.

    De Beers, which sells approximately10 percent o its global rough diamond

    supply through auctions, anticipates

    that the investment will deepen

    the partnership between the two

    companies, strengthen the conditions

    or urther innovation, and position

    De Beers to meet the evolving needs

    o a growing auctions customer base.

    The US & International Diamond Weekat the Israel Diamond Exchange

    Image: Israel Diamond Exchange

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    Building more exibility or

    rough diamond purchasers

    strengthens the value o

    De Beers oering, the frm

    said in a statement. De

    Beers is the rough diamond

    online auction leader, having

    launched the frst online

    auction with Curtis Fitch

    in 2008, and having worked

    with the company over the

    past fve years to introduce

    innovations that add value to

    to customers businesses. De

    Beers has introduced rank

    auction events, multiple unit

    auctions and is on schedule

    to launch Forward Contract

    Sales, innovations whichenhance customers ability to

    tailor their supply needs.

    Curtis Fitch will remain an

    independently managed business. As

    a 25-percent shareholder, De Beers

    will occupy two seats on the Curtis

    Fitch board.

    GJEPC and Signet

    Accept Dubai Goldfor Import to IndiaTe Dubai Multi Commodities

    Centre Authority (DMCC) announced

    recently that the Export Promotion

    Council (GJEPC) o India supports

    the inclusion o imports o gold rom

    Dubai Good Delivery Standard (DGD)

    compliant refners into India.

    Simultaneously, Signet Jewelers Ltd.

    (Signet) confrmed that based on

    independent evaluation, the DGD

    standard is compliant with the Signet

    Responsible Sourcing Protocol (SRSP)

    or gold.

    hese recognitions will allow

    manuacturers in India to acceptgold rom reineries on the DGD list,

    as well as re-assure others in the

    supply chain that gold rom DGD

    reineries is responsibly sourced.

    DGD refneries are all required to

    adhere to DMCCs Practical Sourcing

    Guidance and Review Protocols.

    Indian DiamondFirms Call ForProducers to CutPricesIndian diamantaires running smalland medium-sized frms that have

    been hit by a declining rupee againstthe US dollar, which is making imports

    expensive and increasing rough prices,are calling on diamond producers to

    reduce the price o rough goods.

    Diamond manuacturers are alsosuering due to static or even

    declining polished prices, whichmakes expensive rough unproftableto purchase.

    A drastic reduction is needed in the

    prices o rough diamonds oered bythe diamond miners, Surat Diamond

    Association president Dinesh Navadiatold Te imes of India. Small and

    medium players are not able to buyrough diamonds, as the rupee is

    trading at 68 to the dollar.

    Rough diamond prices have increasedby 15-20 percent in the past year,

    Image: De Beers

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    | polished > news|

    while polished diamond prices havedecreased by 6 percent since January

    2013, according to the report.

    Naresh Patel, a rough diamond dealer,told the newspaper, Tere is no

    protability let or the manuacturers

    in buying rough diamonds atexorbitantly high prices. Te small

    manuacturers will not buy roughdiamonds till the diamond miners

    reduce prices, and the rupee easesagainst the dollar.

    As a result, Indian rms are calling

    on producers, including De Beers,Alrosa and Rio into, to reduce roughdiamond prices.

    Major US TradeBodies SupportWorld Diamond MarkTe leaders o the major US diamond

    industry organizations, the DiamondDealers Club o New York (DDC)

    and the Diamond Manuacturers &Importers Association o America

    (DMIA), have pledged their supportor the goals o the World Diamond

    Mark (WDM).

    Alex Popov, the chairman o theWorld Diamond Mark Foundation(WDMF), met with DDC president

    Reuven Kauman, and DMIApresident Ronnie VanderLinden

    during a visit to New York and brieedthem on the WDMs progress. BothKauman and VanderLinden pledged

    their organizations support or theWDMs objectives.

    Te American diamond and diamondjewelry industry caters to the worldslargest, most sophisticated and most

    demanding consumer market, Popovsaid.

    We are convinced that the WDM

    program and in particular theAuthorized Diamond Dealer conceptwill be instrumental in boosting

    consumer condence in diamonds

    and diamond jewelry, and, just as

    important, improve our industrys

    competitive position in the luxury

    consumer product market.

    Kauman was positive about the

    WDMs chances o success. Weve seena urry o eforts to install alternative,

    generic diamond advertising and

    marketing campaigns that all have

    ailed. Te World Diamond Mark, we

    believe, will succeed.

    Meanwhile, VanderLinden talked

    about the need or an across-the-board

    consensus on an all-encompassing

    generic marketing and advertising

    campaign or diamond jewelry in the

    major consumer markets. Here in the

    USA, we certainly have elt the lack

    o a generic, coordinated, consensual

    consumer campaign or diamond

    jewelry. We are certain that the WDM

    program, including the Authorized

    Diamond Dealer concept, constitutes

    a solid business plan, he said.

    Te World Diamond Mark aims to help

    the diamond and jewelry industry to

    grow. It is based on three undamental

    principles: the education o the

    jewelry retail business community

    about diamonds, condence building

    with the consumer public with the

    WDM accreditation program and

    the creation o a generic marketing

    program to promote diamonds and

    diamond jewelry.

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    74 | IDEX MAGAZI NE No. 282

    POLISHED

    Polished Diamond Prices

    Summer Slump: Prices Drop1.9% in Augustby Edahn Golan

    150

    140

    130

    120

    110

    20112010200920082007 2012 2013

    PEAK

    July 2011146.7

    August 2013131.3

    2011 Avg

    135.8

    2012 Avg

    136.8

    2013 Avg to date

    133.5

    Source: IDEX Online Research

    Figure 1

    IDEX Online Polished Diamond Price Index

    2007-2013

    rices o polished diamonds continued to

    soten in August. Te IDEX Online Polished

    Diamond Index averaged 131.3 in August,

    down 1.9 percent year-over-year and 0.8

    percent compared to July

    August was the second month in a row o overall month-

    over-month price declines, which ollowed two months o

    increasing prices, resulting in a seesaw efect in month-to-

    month prices since the beginning o 2012.

    Overall, there has been a 5.4-percent decline since January

    2012 and a 1.2-percent decline since January 2013. Te IDEXOnlinePolished Diamond Indexhas risen eight times in the20-month period and declined 12 times.

    P

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    The DTC logo is a trademark used under licence from DTC

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    she is the paragon of perfection, Eurostars muse. Thrilled by

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    True masterpieces designed so that you can deliver sparkling

    success. Discover how our values shape our diamonds at

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    Visit us at Taiwan Jewellery & Gem FairTaipei World Trade Center, Hall 3From November 15 - 18, 2013, booth H18-H20-J17-J19

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    October 25 27, 2013Photo:AtelierTomMunsteiner

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    Europes most important gem & jewellery exhibitions in autumn.

    Get in contact with industry leaders and new clients from one of the

    biggest jewellery markets worldwide. The Gemworld is part ofthe Munich Show - the leading show for rough stones and minerals

    in Europe. For more information visit www.gemworldmunich.com

    and stay updated with the monthly newsletter.

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    Financing

    in the

    DiamonD

    inDu$try

    by Edahn Golan

    90 | Financing in the Diamond Industry

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    Financing in the Diamond Industry | 91

    m

    oney makes the world go round,goes the rerain o a song rom the1972 musical movie Cabaret. Just

    as this was true or Sally Bowles,the character played by Liza Minnelli, it is also true orthe many industries that rely heavily on bank fnancing.These include the global diamond industry, especially, thenarrow-margined manuacturing sector o the business.

    Despite a long history o close cooperation, it oten seemsthat the diamond industry and its banking partners

    are at odds with each other. On one side, diamantairesregularly request more fnancing at lower cost, whileon the other side, bankers specializing in the industryeel that traders are living in the past. In the fnanciersopinion, the diamond sector does not understand thatconditions that once existed are now gone and that newrealities demand a more measured approach.

    Talking to both sides traders and bankers reveals

    that the heavy dependency on fnancing is creating acertain level o unease among traders. Some are evenexpressing bitterness towards the banks. Bankers, a armore reserved crowd by nature, are viewing many otheir clients with a combination o criticism over the waymany companies are operating and hope that diamondfrms will adopt new corporate standards.

    Every banker we spoke to is in agreement on two

    matters: change is needed, mostly in terms o corporatetransparency, and there is actually too much fnancing,especially when it comes to the Indian banks.

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    92 | Financing in the Diamond Industry

    What WaS iS gone

    With a history o some 150 years, the diamond industrycould not have come into existence without the support obankers. Te frst wide-scale diamond mine, Kimberley inSouth Arica, was dug by small operators working on smallclaims. As basic as their tools may seem to us today, manyo the early miners depended on bank loans to pay or theirlicenses and equipment.