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We spoke to Tony Baird of Baird & Co in London, one of the UK's handful of gold refiners. Tony explained to J-dex. “This is a very complex set of issues which cannot easily be disassembled. One important reason is that gold does not come from a few or just one source but hundreds of sites around the globe and cannot easily be traced back to any given mining region.”
Gold has been mined for thousands of years, is still highly prized as a store of wealth and despite the sophistication of the international money markets is still seen as a hedge against the volatility of interest rates and the weaknesses of currencies.
Many less developed economies still view gold ownership in the form of coins, bars and jewellery with the highest regard. Local taxes on gold transactions, imports and production often encourage smuggling and a black market. Even in sophisticated economies, such as Italy, a very significant part of trade in gold is illegal.
Generally, the way it works is this. Gold comes from the major refineries and mines selling ‘good delivery bars' to Treasury Banks. Treasury banks around the world and central banks hold gold deposits to make international transactions through the physical movement of the identifiable, stamped, ‘good delivery bars'. Many bullion product manufacturers take these bars as the form of supply of raw gold from the banks as part of their mix of supplies of raw precious metal materials such as gold, silver and platinum.
The gold industry is coming under closer scrutiny from governmental organizations and NGOs (non-governmental organizations) such as Oxfam and Earthworks. Media and public attention is questioning whether the gold jewellery our industry supplies is ethical or ‘dirty'. The focus is all encompassing taking in pollution issues and societal issues such as child labour and the displacement of indigenous people from tribal lands.
Tony Baird explained. “The supply chain for gold is convoluted from the seeming simplicity of an artisanal miner panning gold from a riverbed through to a mine run by a multinational company. Whichever route the metal takes to market it passes through many processes and hands to get to the end result of a good delivery bar. The mapped out supply chain actually looks rather like a Christmas tree.”
The gold can come direct from a major mine or could well have gone through many hands on its way to the refinery. Each time it changes hands, enlarging the accumulation of gold ore from more and more sources, the origin becomes more and more obscured. This is because money for purchasing is less readily available at the bottom of the tree than it is to the better-financed larger traders who may end up supplying the mixed gold accumulation to a refinery. The most complex and least efficient part of the long supply chain is the small alluvial operations such as those in Africa where the mining of gold is often primitive, by hand, in open riverbeds, and generally a family enterprise, perhaps with permission of the local chief or landowner, but often without.
Environmental issues
Only 0.00001 percent of gold ore is actually refined into gold. The rest of it is waste. To separate gold from waste, mining companies often use a method called “heap leaching”, which involves spraying mounds of gold ore with cyanide. While a rice-grain sized dose of cyanide can be fatal, some mines use several tons of cyanide per day.
The cyanide-contaminated ore is typically just abandoned in large toxic mounds up to 100 meters tall.
Even after being leached with cyanide, gold still contains impurities. So it is sent to a smelter to be refined. Smelting consumes huge amounts of energy and releases air pollutants including sulphur and nitrogen oxides that contribute to smog and acid rain.
Gold is now rarely found as nuggets, but rather is extracted chemically from the ore by using a cyanide leaching process. Though this process is designed to be a closed system, with leach heaps and contaminated tailings isolated from their surroundings, their long timeframes and the extensiveness of the operations usually lead to cyanide and other toxics eventually getting into the surrounding land, surface water, and groundwater.
Gold mining creates long-lasting, irreparable environmental problems all around the world. Fish in the Sacramento River and San Francisco bay still exhibit elevated levels of mercury more than 100 years after 19th century prospectors used mercury to purify gold. Several United Nations World Heritage Sites, including sites in South America, Africa and Europe, are affected by gold mining.
What is “Dirty” gold? From : NoDirtyGold.org
“Dirty” gold is a reference made by lobbyists, who aim to promote improvements in social and environmental aspects of gold mining (often referred to as “Sustainable Development”).
Around 66% of gold supply comes from gold mining: around 20% comes from recycling (old jewellery, bars, coins and industrial recycling), and around 13% comes from stocks of gold bullion held by banks. So gold jewellery is made from gold from a number of sources, with the most important being gold mining.
The gold mining industry takes its Sustainable Development activities very seriously and there are many strict regulations and guidelines for mining gold. Most mining companies have robust environmental, social and ethical standards and report on these through their annual reports.
In June 2006, following in the spirit of a number of mining related initiatives including the Mining Certification Evaluation Project, the Framework for Responsible Mining, the World Bank's Extractive Industries Review, the MMSD Report and the Global Mining Initiative, the ICMM (International Council on Mining and Metals) and the ICMM Sustainable Development Principles, and the Council for Responsible Jewellery Practices (CRJP), a multi-stakeholder group conducted a dialogue in Vancouver to discuss options for developing a system of independent third party assurance for mining.
As a result of this dialogue, the “Initiative for Responsible Mining Assurance” (IRMA) has been established by a group of mining companies (e.g. Newmont and AngloGold Ashanti), retailers (e.g. Cartier, Tiffany, WalMart and Signet Group), non-government organisations (e.g. Earthworks, who helped establish the “dirty” gold campaign) and trade associations (e.g. Jewelers of America, ICMM and CRJP) to further develop options for independent third-party assurance in the mining sector.
A coordinating committee drawn from the group will facilitate a process for the identification of responsible mining standards and a governance model for the assurance system, and has set a goal of establishing initial standards and a system for governance by 2007.
The cost of ethics
Despite the efforts of the Initiative for Responsible Mining Tony Baird argues that it is impossible to know the origin of the composition of any good delivery bar from a major refinery.
“The gold in a bar could have come from many different sources, recycled industrial or jewellery trade scrap, alluvial mining or production from major mines. It is quite impossible to separate out the different sources once the raw material enters a refinery as it is all processed together. If you had to make a good delivery bar from just one source the costs would be prohibitive: there just aren't the economies of scale.”
Baird believes it is unlikely that customers would pay the premium needed to ensure completely ‘ethical gold'.
He says: “Perhaps the real problem lies in the fact that the gold mining industry does not directly supply the end consumer, i.e. the jewellery manufacturer or bullion merchant, and therefore there is no audit trail other than the refinery that processed the gold. The mining industry has no interest in directly supplying smaller amounts of metals to individual jewellery manufacturers or bullion merchants. The processed bars simply pass into the major wholesale bullion markets before sometimes finding their way into the hands of bullion merchants or manufacturers. But more often than not, they simply end up in storage vaults for the account of reserve banks and other institutions. When bars are delivered from bullion vaults into so-called ‘general use' the material could be many years old and bear no information at all regarding its origin other than the name of the refiner who produced the bar.”
Baird continued. “If the mining industry were able to make supplies of gold available from a single known source, with appropriate guarantees as to ethical production methods, bullion merchants such as Baird would be pleased to offer the appropriate guarantee to their clients. But until that time any merchant or jeweller offering such a guarantee should be viewed with suspicion. It is currently virtually impossible to be certain of the origin of any gold offered for sale unless it is produced by a known source. It would also need to be refined independently from other raw materials and appropriately marked before marketing through the wholesale markets or a jewellery trade supplier direct to a manufacturer.
The process for issuing guarantees for gold used in the jewellery trade, to assure it is ethically produced, needs to start with the mining industry. Before then, the bullion merchants and banks that supply the manufacturers will not be able to guarantee the origins, ethical or otherwise, of any gold offered for sale.”
THE GOLDSMITHS' COMPANY'S
12TH YOUNG DESIGNER SILVERSMITH AWARD
THE GOLDSMITHS' COMPANY'S annual Young Designer Silversmith Award 2006, now in its twelth year, was won by Karen Simpson of Glasgow School of Art.
The Young Designer Silversmith Award scheme was started by Rosemary Ransome Wallis, Curator of the Collections at Goldsmiths' Hall in 1994 as an initiative to encourage students to show their artistic individuality in silver. “The rationale behind the award was to encourage studio silver design,” explained Rosemary, “with the combination of a competition for excellence of design and an opportunity to perfect dexterity of craftsmanship being at the heart of the scheme”.
The winner of the award is placed in a leading modern silversmith's workshop where, with expert guidance, he or she is able to transform their design into silver. The finished piece is then presented to the appropriate major museum nearest the college for its collection of contemporary decorative arts, which in Karen's case was the Kelingrove Art Gallery and Museum, Glasgow.
The brief for this year's competition, which is open to any student under 30 in the United Kingdom on a BA or Master's degree course, was to design “a vessel to contain fruit that was contemporary with the shape, form and possible decoration to amplify and reflect the fruits contained.”
The judges included Richard Himsworth, Grant Macdonald, and Martin Dru Drury, all senior members of the Goldsmiths' Company, together with artist silversmith Rod Kelly and Annamarie Stapleton consultant to the Fine Art Society in London. Rosemary Ransome Wallis said: “The judges were particularly impressed with Karen's interpretation of the brief producing an exceptional design, absolutely of today”.
Prime Warden of the Goldsmiths' Company Sir Jerry Wiggin presented Karen's stunning silver fruit bowl to Councillor Archie Graham, convener of Glasgow City Council's Cultural and Leisure Services PDS Committee in a ceremony which took place in the Kelvingrove Art Gallery and Museum, Glasgow on Tuesday September 26, 2006. Karen was there to witness the handing over ceremony and was duly congratulated by both the Prime Warden and Councillor Archie Graham on her considerable achievement. She was also presented with her winner's certificate for the Young Designer Silversmith Award 2006.
Karen is the fifth student from Glasgow School of Art's department of silversmithing and jewellery to win this award and one of the past winners, Douglas Blair was also at the ceremony, together with the head of the silversmithing department, Jack Cunningham who received a commemorative silver plaque from the Prime Warden.
Another interested and proud observer was silversmith Steven Ottewill. It was under Steven's watchful and expert eye that Karen had the fantastic opportunity of turning her design of a fruitbowl into a reality.
During her placement with Richardson & Ottewill in Kent Karen was able to profit first-hand from the experience of working in a busy skilled workshop and she also had the benefit of the combined extensive knowledge and expertise of Steven and his colleague silversmith Rob Russell, who himself completed his Goldsmiths' Company apprenticeship in 2002.
Steven Ottewill said: “It was a real pleasure to be involved in this scheme. Karen is clearly a talented young silversmith with huge potential and I and my colleagues were delighted to have helped her make such a fantastic piece for a national collection”.
Without the support and enthusiasm of the workshops and the one-to-one instruction given over a concentrated period, the Goldsmiths' Company's Young Designer Silversmith Award scheme would not be able to survive. Other workshops which have supported the scheme to date include Grant Macdonald, Richard Fox, Clive Burr, Howard Fenn, Hector Miller and traditional workshops such as Garrard and Wakely & Wheeler.
Karen Simpson's silver-bowl will shortly go on display at Kelingrove Art Gallery & Museum where it becomes the fifth Young Designer Silversmith Award winning object to be presented to the Glasgow Museum Services. The previous four awards include a coffee pot by Marion Kane, a condiment sent by Helen Gaffney, the millennium clock by Douglas Blair and a vase by Jennifer Pattenson. Other major museums which have also received pieces as part of the Goldsmiths' Company's Young Designer Silversmith Award include Aberdeen Museum, Manchester City Art Gallery, Birmingham Museum and the Victoria & Albert Museum.
LEVIEV ANNOUNCE NEW UK MANAGING DIRECTOR
Leviev announce the appointment of Simon Williamson as the new Managing Director for Leviev UK. Williamson will oversee all facets of the UK operation from sales to all marketing, advertising and public relations. In addition, his role includes the development of all Leviev's activities throughout Europe, Russia and the Middle East. He will be based at the Leviev offices, and store, at 31 Old Bond Street.
Williamson joins Leviev from Garrard & Co where he was managing director from 2005. He joined the company in 2002 as retail director and soon rose to become Retail and marketing director. His key responsibilities were the development of the retail business both in the UK and internationally, through strategic franchise partnerships and wholesale accounts in Europe, the Middle East and Asia.
Prior to joining Garrard & Co, Williamson was European Retail Director with the Tommy Hilfiger Corporation, which he joined in 1997. From 1990 to 1997, he worked in numerous roles within the Esprit de Corprs organisation in the UK. He has a degree in hotel management and business studies from Middlesex University.
“I am very pleased that Simon Williamson has joined Leviev. In addition to his general experience with luxury goods, Simon built during his tenure at Garrard & Co a close relationship with some of the world's most savvy jewellery connoisseurs. He is a sophisticated, focused and driven businessman who will introduce our extraordinary diamonds to a highly selected local and international clientele,” says Thierry Chaunu, Leviev's President & COO.
G.F.WILLIAMS
Passionate about Gems
There are few gemstones that only come from one location. Tanzanite is one of them.
Tanzanite prices over the years have fluctuated for many reasons, some genuine; (a tragic accident happened and a number of miners were killed,) to some fictitious; (such as a totally false article in America suggesting that the stone might be linked to Al-Qaeda.)
Recently tanzanite has been marketed very successfully and therefore the prices are far more stable.
The finest colour of Tanzanite should be a deeply saturated blue with a distinctive purple secondary colour. If it goes over colour it can have a blackish appearance and this is not so valued. Technically as tanzanite is soft it may be better mounted in earrings or a pendant, it can be set in a ring but appropriate warnings to the client should always be made.
Tanzanite needs to be a reasonable size to hold the depth of colour that is so desirable and scarce. Therefore it is very difficult to find stones smaller than half a carat in a deep colour and a premium has to be paid for them. In sapphire you can find deep colour, small round stones, with tanzanite you cannot.
The most commonly requested size of tanzanite is probably between 1 - 4 carats and unlike most stones the price per carat does not increase for larger stones; so a fine five carat tanzanite could command the same price per carat as a fine 10 carat stone.
Tanzanite and diamond pendant by Lois Jewellery
Aurum designer-jewellery now available to retailers
Aurum designer-jewellers was established in 1985 by designer Andrew Leggett, to create contemporary handmade jewellery combining platinum or 18ct gold with fine diamonds and coloured gems.
Aurum's designs, have previously been available only through their own showroom, but now they are being made available to selected fine jewellers.
Their distinctive signature style engagement ring, ‘the Flick', designed to be worn with a straight wedding band without leaving gaps, is just one example of the company's work. It can be made using a the diamond size and cut required, in a choice of metal combinations. Aurum's craftsmen strive to create jewellery that is eye-catching and contemporary, yet understated and timeless – and above all wearable. Each piece is handmade, and can be tailored to individual requirements.
The most successful word-of-mouth marketing campaigns involve “agents” who plug products to many people through a variety of methods and settings, finds a new study.
“The More, the Better: Creating Successful Word-of-Mouth Marketing Campaigns” by market-research firm Keller Fay Group, finds that 70 percent of consumers will talk about products with friends and family, as well as with people beyond their immediate circle.
The most popular place for word-of-mouth agents to discuss products is in the home, where 82 percent spread the word. But the survey also finds that 55 percent will discuss products in other people's homes, 43 percent will offer product advice in social gatherings, and 25 percent will spread the word at stores, restaurants and bars.
Face-to-face encounters represent the most popular way of transmitting information, with 99 percent of those surveyed talking about products in this way. But 17 percent of those surveyed offer word-of-mouth information through instant messages, and 9 percent use chat rooms and blogs.
Number of small businesses
on the rise
The number of small and medium-size enterprises in the UK rose by 59,000 in 2005 according to the latest statistics from the Small Business Service.
At the beginning of 2005, there were around 4.3 million business enterprises in the UK, representing an increase of 1.4% on the previous year. The new figures showed that 99.3% of these enterprises were small businesses (with 0-49 employees), while 0.6% were medium-sized firms (with 50-249 employees), and 0.1% were large businesses, with at least 250 members of staff.
UK enterprises employed around 22 million people, with a combined annual turnover of around £2,400 billion. SMEs were shown to account for more than half of the employment and turnover in the UK, with small enterprises in particular accounting for 46.8% of employment and 36.4% of turnover.
Business groups welcomed the new figures, but highlighted the problems still faced by many small businesses as a result of taxation and red tape. The Forum of Private Business warned that there are still significant restrictions being placed on small business growth, with a recent survey revealing that more than 70% of business owners expected red tape to increase, and 59% found legislation to be a major restriction to growth.
Theo Fennell Awards 2006
Winners of the Theo Fennell
Awards for graduate students from The Royal College of Art, including an informal awards ceremony for each of the winners, was held at the Theo Fennell Flagship store, hosted by Theo and Louise Fennell.
The event was designed to celebrate the collaboration with the RCA, now in its second year, to showcase the work of the winning students, demonstrating support of emerging talent and raise awareness of young jewellery designers and metalsmiths in the UK.
Where on earth would you expect to see dramatic architecture and memorable buildings, Paris maybe? This year at the second edition of Orhopa, Emap Agor's Watch and Jewellery trade show held in the Paris-Nord Villepinte Exhibition centre from the 17th to the 19th of September 2006. Gay Gahan went trend spotting.
Talking points
Phillipe Tournairte has created the historical and architecturally inspired ranges of ‘Villa De Reve' ‘Metropolis' and ‘Les Portes du Temps'.
Situated in the famous Place de Vendome in Paris, Tournaire's workshops create fine works of jewellery art, described as pieces of ‘Haute Joaillerie'.
Phillippe Tournaire designs his jewellery like paintings and constructs them in the style of architectural monuments breathing structure into every design. Phillipe now offers bespoke architectural jewellery that can represent his customer's home or a souvenir of a treasured historical moment. A member of ‘The Spirit of France' jewellers group.
On the 19th September, with the presentation of the ‘Carte Blanche for the Black Pearl' Award, the Orhopa 2006 Tahitian Pearl design competition there was celebration Tahitian style. The winning trophy went to Lyons jeweller Golliat and Didier for its superb white gold ring featuring Tahitian pearls, christened ‘Sacha' after its designer, Sacha Georgieff.
A splendid piazza was devoted to ‘the pearl' throughout the three days of the show. Music, Polynesian dancers, a visit from the minister of pearl farming, and many other events made a stir. The prize draw winner of a week's trip for two to Tahiti, courtesy of the GIE Perles de Tahiti association and its partners, was the Parisian boutique Bewatch.
Boasting twenty five years experience with rare gems and fine certificated diamond Roberto and Massimo Tucci of Monaco tell their story as ‘creators of trendy and innovative collections'.
The brothers have offices in Madrid, Monaco and Johannesburg manufacturing their own unique range and hosting prestigious jewellery boutiques in Mauritius.
Isabelle Langlois speaks for The Spirit of France group ‘the home of Haute Couture and brand excellence French jewellers remain leaders of chic'. Famed for her high jewel quality and colourful feminine jewellery appeal, pave gemstones and pink as a theme with pink gold.
Orhopa welcomed 3,766 professional visitors to the show which was an increase in attendance of 4% from 2005.
Orhopa is offering exhibitors a new “stand space only” formula for 2007, available from 48m2 upwards.
Exhibitors can contact:
phall@emap-agor.fr
orocolas@emap.fr
www.orhopa.fr
Choosing antique jewellery is a matter of discerning and discreet luxury. And it seems to be catching on. This month Claire Adler charts a move towards the romance of old jewellery.
The rarity of a natural pearl or the warm glimmer of an antique cut diamond – these are indulgences only the wearer knows about.
But in a climate where a greater number of jewellery customers with more money to spend are far more educated about what they're buying, interest in antique jewellery is hotting up.
Christie's jewellery department is flourishing during a period of substantial growth. A sale in June this year saw lots being snapped up by jewellery lovers from an impressive 28 countries, including Equador, the Philippines and Norway as well as the usual suspects - America, the Middle East and Russia. A cross brooch estimated at £4500 fetched £8000, according to the rather surprised though delighted jewellery specialist at Christies, Raymond Sancroft-Baker.
The world market leader in jewellery, Christie's sells jewellery to the tune of an average $230 million each year. Major jewellery sales take place regularly in Geneva, Hong Kong, London, New York and Paris. Following a successful contemporary art sale in Dubai, Christie's will be holding its first jewellery sale there this January.
“People do sense it's a good time to sell,” says Raymond Sancroft-Baker of Christies. “In our 6 December sale, we have 328 lots which is a good 100 more than usual. There are many reasons for this – there is a lot of money around, sizeable City bonuses and of course the auctions are cheaper than the shops on Bond Street. I'm always amazed at the interest given that we have the likes of Ritz Fine Jewellery (at the Ritz Hotel), Harry Winston, Cartier and Leviev all of 50 yards away. But I think it's partly thanks to the success on Bond Street that there is a heightened awareness of jewellery now.”
Antiques are defined as being at least 100 years old. Over time, jewellery is inevitably broken up for its gems to be used elsewhere so pieces become ever scarcer, further enhancing the value of those which remain intact.
“There has been a resurgence in tiaras,” says Sancroft Baker, “especially those that adapt into necklaces. Some people have come in to buy them with their daughter's weddings in mind, even if their daughters are only five,” he says.
Sancroft-Baker even had one Belle Epoque diamond tiara dating from 1910 which he converted at a cost of £800 so that it could be worn as a necklace. He admits this could have been risky, but this one, estimated at £25000 to £35000 ended up fetching £45,000.
Evidently, a more discerning clientele are falling in love with the subtlety and grace of old cut diamonds. Georgian jewellery (1714-1830), is very rare and desirable, according to Sancroft-Baker. Also sought after are diamond and gem set pieces dating from 1880 to 1900 - a time of burgeoning creativity for diamond jewellery since the South African diamond mines were discovered in 1870.
“We had a Lebanese lady on the phone bidding this week for an antique piece which was surprising since I would often associate a Lebanese customer with bling,” says Sancroft Baker.
People are far more educated nowadays about what each period in jewellery represents, says Charlie Pragnell, gem stone buyer at Stratford Upon Avon's Pragnells. “A customer who has fallen in love with fine period jewellery and is learning more and more is actually unlikely to buy new jewellery, even though we have beautiful diamond jewellery from our Masterpieces collection made in our Pragnells workshop on site. Antique jewellery is a passion all of its own and we're definitely noting a marked increase in demand,” he says. Sales of deco jewellery are currently buoyant at Pragnells, as is retro jewellery from the 40s and 50s.
Pragnell partially attributes this mounting interest to the interplay between art, culture and jewellery which is so common in conversations with his customers now. ”Jewellery inevitably reflects the trends of the time. For example the strong, big and bold jewellery which emerged from the 1940s and 1950s reflects a voluptuous era of looking to the future after the war,” he says.
Meanwhile, Gray's Antiques market in Mayfair reports similar areas of interest. “Pieces from the Art Deco period, the 1940s, 50s, 60s and 70s are gaining popularity once more,” says spokesperson Sarah Caverhill. “Signed items by the jewellery houses such as Cartier, Van Cleef and Arpels, Bulgari, and Tiffany command high prices and are particularly sought after.
The trend towards design and style after the bleak minimalism of recent years is a happy development in jewellery, as a new generation are now discovering pieces from the past.” A fun example from Grays includes the renowned Chat Malicieux by Van Cleef and Arpels (1954), offered by Anthea AG featuring a ruby nose and fine whiskers.
Sandra Cronan, the first woman antique jewellery dealer to be accepted into the British Antique Dealers Association, also reports increased demand for antique jewellery. Cronan specialises in “unusual antique jewellery” and real Oriental natural pearls grown in salt water as opposed to fresh water. Jewellery in her Burlington Arcade boutique dates from the17th century up until the 1950s.
A Cartier necklace with natural pearls dating from 1900-1905 was one of her recent offerings. Of course, Cartier has a travelling collection, Cartier Tradition, which consists of pieces from its archives which visit different cities round the world. In May this year, Cartier held a VIP customer event and this past September the Cartier Tradition collection showed at the Paris Biennale, the prestigious antiques fair.
“The difference between old and new cut diamonds is like the difference between old silk and rayon. Antique diamonds are cut to glow and reflect light, they are delicate and warm. Modern diamonds tend to be more glossy and brash, they are designed to be noticed. They are cut to calculate the maximum refraction and light so they are much brighter. The antique look is much more subtle,” explains Cronan. “It takes no imagination to see the difference between the two.”
Cronan's typical clients are open minded enough to see further than mere outward trappings of wealth. Once they understand the difference, “they're sold”, she says. “They know they won't bump into someone else wearing the same thing.”
Inhorgenta Europe – A pure passion for Jewellery
Munich - 23-26 February 2007
inhorgenta europe will open its doors for the 34th time on 23 February 2007. If we take the exhibitor registrations as a yardstick, then the leading European trade fair for watches, clocks, jewellery, precious stones, pearls and technology is again going to be a meeting of the industry at the highest level. Almost 1,200 exhibitors from approximately 40 countries have registered their own booths by today. In addition, the trade fair organizers expect approximately 30,000 trade visitors from the whole world as in the previous years. On an area of 64,500 square meters in six halls, inhorgenta europe is the first big platform in 2007 for new trends, new collections, new brands, new technologies and new marketing concepts dealing with all aspects of timepieces and jewelry.
Platinum is an unrivalled highlight at inhorgenta Europe. More than 20 exhibitors, including respected names such as Gebr. Schaffrath, Henrich & Denzel, Isabelle Fa and H. D. Krieger, will again exhibit within the framework of the Platinum Forum in Hall B1 in 2007.
inhorgenta europe 2007 will present another superlative in Hall C2: the world's largest selection of designer jewellery. Approx. 300 exhibitors will display their almost unlimited creativity and innovative variety of materials. The range of the exhibitors extends from young, unconventional jewelry designers and internationally leading handicraft companies to renowned designer labels and all the way to the globally known names of international fashion.
inhorgenta europe this year will also be highlighting high-volume market of fashion and lifestyle watches in the timepiece Hall A1. Purchasers will have the chance to visit more than two dozen trendy watch brands and globally leading watch manufacturers along one brand avenue. The brands Citizen, Casio, Festina, Jaguar, Lotus, Fossil, Diesel, DKNY, Armani, Zodiac, Tutima Boccia and Alfex , among others, will exhibit their new collections on “A1 Brand Avenue” in 2007.
Munich looks forward to the timepiece and jewellery world from 23 to 26 February 2007.
Gordon Hamme spoke to Alison and Mary at George Lindley & Co
George Lindley & Company has been a well respected supplier of good quality gemstones to the trade for over 80 years.
The company was originally known as the Jade Dragon and supplied the London trade with imported jade before making the transition into coloured gemstones. Since then the company has built its reputation for having a wide stock of precious and semi-precious stones always of guaranteed quality and always well cut.
The business is predominantly known for holding good stocks of ruby, sapphire and emerald in calibrated sizes of most shapes in a range of qualities as well as important larger single stones. This is complimented by an extensive range of semi-precious stones, again in calibrated sizes and individual pieces. It is always worth asking Lindley's for anything you are looking for and with a sound reputation with their suppliers there is very little that they cannot source.
Lindley's find that it is important to refresh the stock with new colours and cuts and keep up to date with current trends. When the desire for pink sapphires emerged, George Lindley had already put these into stock. The same goes for the fancy coloured stones, pastel shades, natural, unheated and certified stones.
The staff at George Lindley feel that the customer service should be the same quality as the stock. It is usual that any order is dealt with and delivered or posted the same day, where ever possible. They pride themselves on a friendly, efficient service and enjoy the search for your perfect stone. They offer an “appro” service covering the UK, Europe and America. If you are unable to visit their office in London they are always happy to come to you with a collection.
The comprehensive stock enables them to supply today's designers and manufacturers of fine quality jewellery.
A new experience this year was to show at Earls Court which proved to be a success and so you will be seeing them there next year with a greater range.
If you read that on the one hand, the UK government is urging manufacturers to take advantage of low-wage countries to reduce labour costs while on the other, a recent guide from the DTI's Manufacturing Advisory Service suggests that such a move is not necessarily a good thing, you would be forgiven for thinking that this is another example of the right hand not knowing what the left is doing! However, in a world where the rules of business are changing rapidly both suggestions can be right. It is a question of finding the right strategy for each company and its circumstances.
To make things more confusing a recent CBI meeting on opportunities in China reminded the audience of the speed of copying that still exists. China and recently developing nations all want to move to higher-added-value products and will not want to remain the centre of low cost manufacturing.
If you are a British-based manufacturer or one of the growing number of design-based companies that are emerging from our strong jewellery design courses, how do you make the decision about where and how to manufacture in the future? No rule can exist to help the many different circumstances but you do need to know what your own long term strategy is and which markets you are in or aim to be in. For example, any company that wishes to concentrate on the high volume, low cost sector of the market will either already have a manufacturing base abroad or may have some type of joint venture.
Where things get more difficult is in the mid market design-based sector or the higher priced market segments. This is due to the trade off between volume and price as higher volumes will start to justify moving to lower cost manufacturing while a concentration on up market products, where the cost of manufacturing is only a small part of the total cost, would suggest that such a move is not necessary.
Sourcing abroad is certainly seductive as, with lower cost labour, it is possible to spend more time on complex pieces and contemplate designs that may not be economic in the UK. In addition, if you still suffer from the conviction that everything is made in sweatshops, you are increasingly wrong. Many companies in the Far East set up with the latest equipment, while those who have been manufacturing for some time in the UK can still be producing with redundant, out of date machines.
The drawbacks to a move abroad are, however, considerable. Communication is more difficult and can lead to errors that are only known about when a delivery is made. It takes time to agree a common approach to quality as one person's good finish is another's poor one. There are many extra costs to be taken into account that can be overlooked. Import tax, transportation, lost or stolen parcels, insurance and the much higher administration that is necessary. In addition the lead times are far longer.
The arguments for UK manufacturing are strong where you need fast, just in time, delivery or where the labour cost is small in relation to final cost. What better example can there be than the fact that BMW could have moved Rolls Royce production to anywhere in the world but decided to start a new factory in a green field site here in the UK? As volumes grow, then a move to the Far East can be justified, but it is best taken at a very considered pace so that lessons are learnt and experience gained before total commitment.
Dennis Allen advises on Business Development in the jewellery industry and can be contacted at dennisallen@school-house.biz
Launch of Jewellery Sector Investment Programme Phase 1
Exciting New Opportunities for Jewellery and Allied Industries: Launch of JSIP Phase 1 Projects
We are very pleased to announce the launch of the first phase of Jewellery Sector Investment Plan funded projects and introduce you to the organisations tasked with the delivery of the projects.
Members of the London jewellery and allied industries can now access some very exciting opportunities on offer including support to stimulate demand, build capacity and enable better communication and collaboration.
The Jewellery Sector Investment Plan (JSIP), funded by the LDA via the City Fringe Partnership, is a £3 million regional programme aimed at revitalising the world of London Jewellery and improving the competitiveness of the industry.
A number of projects are starting immediately, covering areas such as export, bespoke industry led training in new technologies, the development of an executive forum and a number of taster courses designed to get new blood into the industry.
The projects are being delivered by the following organisations:
Holts Jewellery School – a combined project covering Technology and Bespoke Industry-Led Training. This project focuses on the need to train London's jewellery workforce with higher level skills to enable them to work better in a competitive market. New technologies including CAD, digital production and prototyping will be offered to potential participants and made accessible by the introduction of a training voucher.
City Lit – Jewellery Settings. This project will provide high quality taster courses in beginners' jewellery craft skills and industry awareness-raising days to 100 socially and economically excluded adults in the Bourne Estate and surrounding area in the Holborn and Covent Garden ward. The project aims to bring new blood into the industry by specifically targeting participants who would normally not be thinking of a career in the jewellery industry.
British Jewellers' Association – London Jewellery Exports. The project aims to increase the number of London based designer-makers and manufacturers of design-led jewellery who are exporting to emerging, new and established international markets. Participants of this project will be prepared to take advantage of these opportunities through tailored business support and training.
The National Association of Goldsmiths – the Executive Development Forum. Through the formation of an executive forum, this project aims to develop professional standards within retail and its supply chain, to develop processes for better managing and measuring performance standards and improve profitability and realise full business potential. The forum will enable independent businesses to share and benefit from common experiences and lessons learnt.
All applications were assessed by London Jewellery First (LJF) and the City Fringe Partnership. The LJF are a group of jewellery business leaders who have been convened to oversee the implementation of the JSIP.
Please visit www.change-act-share.org.uk to get regular updates on the projects through their individual pages. The site will also have announcements from the projects, for example their recruitment timetable and other news as well as, after the financial year-end, details on how the project spent their JSIP money.
All jewellery businesses across London will be invited to a project promotion event scheduled for mid February 2007. Businesses can come and find out in person what services are on offer that might benefit them. The exact date will be announced on www.change-act-share.org.uk . Back to top
Van Cleef and Arpels Bring treasures to light By Clare Adler
For its 100th birthday, the House of Van Cleef & Arpels has created 11 pieces of jewellery. Although these designs were first drawn by artists between the 1920s and the 1960s, this is the first time they have actually been made. Following a visit to London's Home House to view the collection in theatrical surroundings, Claire Adler asks what on earth took so long.
In the luxury and fashion world, many companies work hard to communicate the principles of their brand by digging deep into their archives and revealing something old in a new way. Sometimes, this practice incites sceptics to question why certain items found their way into a dusty old box in an archive in the first place.
As will become clear, Van Cleef & Arpels had ample reason for waiting this one out. The first ever sketches for the 11 marvels of the Van Cleef & Arpels Tresors Reveles collection, or ‘treasures brought to light', were originally drawn decades ago.
Now that they have finally come into being, they are priced between £150,000 and £3 million.
First shown in the UK this summer, in the dramatic setting of London's Home House, rooms were transformed into boudoirs with a ballerina rehearsing here and an opera singer practising her aria there, all the while being photographed wearing exquisite jewellery. In another room, visitors looked on as an actress seated at a vanity table auditioned an array of jewellery and combed her hair. Visitors walked through this mysterious and intriguing display, unsure if they were intruding.
In another room, a bustier was draped with Belle de Jour, a veritable garment masquerading as a piece of jewellery - a diamond and tourquoise set choker and shoulder piece. Given Van Cleef & Arpels jewellery's characteristic ability to metamorphose, it is noteworthy that this particular piece of jewellery art can be worn in 10 different ways - including as a choker, as two bracelets, a pair of ear clips and a belt. A hair ornament set in white gold with round and baguette diamonds has removable stems so the piece can be worn as a bow or as a clip.
Of course, Van Cleef & Arpels is no stranger to wildly imaginative and romantic jewellery, inspired by natural themes and the hand craftsmanship of couture clothing. They may be fashioned in metal and gemstones, essentially rigid materials, yet many classic Van Cleef & Arpels pieces are delicate in the extreme and strangely realistic. The voluptuous curves of petals and flowers exhibit a startling lightness of touch and a dragonfly looks almost like it might take flight.
Van Cleef & Arpel's link with the world of couture is emphasized within the book of the Trésors Révélés collection, photographed in the workshop of Parisian couture designer Anne Valerie Hash.
Shots of models wearing couturier Anne Valerie Hash's creations appear alongside photographs of craftspeople in the Van Cleef & Arpels workshops creating the jewellery, and original hand-coloured drawings of each piece of jewellery.
So in the light of Van Cleef & Arpels' history of technical mastery and adoration of exquisitely detailed jewellery, why is it only now that they have been made?
“The 1920s, 1930s and 1940s were a time of burgeoning creativity for Van Cleef & Arpels. Our archivist gathered a selection of drawings for our 100th anniversary. These drawings had been waiting until the techniques required to produce them had been developed,” explains Geffroye Medinger, UK retail director for Van Cleef & Arpels. “The designers at Van Cleef & Arpels have always worked without limiting their creativity. At the time they were drawing they knew what was possible and what was not, but they always focussed on making jewellery that looked light and aesthetic. They wanted to be daring and creating these pieces is a kind of thank you to them.”
The Trésors Révélés collection includes new improvements to Van Cleef & Arpels' famous mystery setting.
The absence of visible mounting between rows of delicately cut stones - the mystery setting - allows Van Cleef & Arpels gems to speak for themselves. While Cartier and others simultaneously tried to develop this technique throughout the 1920s and 1930s, it was Van Cleef & Arpels who finally filed the patent in 1933.
Van Cleef & Arpels typically used the mystery setting for rubies.
But it was only six years ago, that the House improved the mystery setting technique, such that it could incorporate diamonds.
“These drawings forced our craftspeople to push the boundaries of creativity of the House,” says Medinger. “In the Chardon clip every stone has a volume never seen before. The stones are set backwards and cut from the table. This is only possible thanks to an absolute mastery in the cutting process not possible when the piece was originally drawn in the late 1930s. Also, the volume of the Bouquet d'Orchidées clip employs more sophisticated techniques than were possible in earlier decades, conveying more fragility.”
It took decades to locate and acquire the sheer abundance of rare stones required to make these pieces, according to Medinger. The Fox Trot sautoir, a super long necklace set in platinum with emerald cut, marquise and round diamonds, which converts into a two row necklace and two bracelets, and the scarf necklace, the drape de diamants with a sizeable number of matching marquise diamonds, come to mind.
Naturally, some pieces have already been sold to serious collectors. “Sometimes, we give pre-presentations to important customers. They might give us feedback about length or shape and details will be amended in the process. But with this collection we did not change any of the details from the original drawings. These pieces are thoroughly authentic and respectful of the creativity evident in those original drawings and this will surely add to their value over time,” says Medinger.
Clearly, the pieces in the Trésors Révélés collection are not easy to wear by any means. The fact that the designs are so positively unfashionable is their inherent charm.
“We are always trying to make our jewellery lighter, more flexible and yet paradoxically, more secure. The new techniques developed and used here will provide us with greater range for the future,” says Medinger.
Hong Kong Watch & Clock Fair Review By Martin Foster
Hong Kong's September Watch and Clock Fair had novelty, style, diversity and technology
Martin Foster visits Hong Kong and China for a close-up look at the world's biggest exporters of clocks and watches
Watch Production in Hong Kong
Hong Kong is the world's second largest producer of watches and clocks (after China) and the world's second largest in value (after Switzerland).
But what exactly, does this signify?
For an answer we need to appreciate that most of the watches, watch parts, casing and bracelet components for the Hong Kong industry come from Hong Kong companies manufacturing on mainland China where land, labour, production facilities and power are less expensive than Hong Kong.
However the Hong Kong based companies with their cherished Western connections identify with the markets of the US, Japan, Asia, Switzerland and the EU. And with the prestige deriving from this the Hong Kong makers are trusted suppliers of quality watches back into mainland China.
This is a somewhat circular phenomenon with global marketing implications across the industry.
Watches are bought at two levels.
In past years we all had one “Swiss Made” watch of good quality. Today many consumers still maintain one prestige quality watch but may have half a dozen others in the bureau drawer bought cheaply at opportune moments or simply on impulse. This wide availability of inexpensive wristwatches follows the advent of the quartz revolution and has created two quite separate segments in todays global watch market.
Hong Kong, indulging its symbiotic CEPA manufacturing relationship with China, is making a huge volume of lifestyle (inexpensive) watches. Switzerland for its part firmly grips the high end “Swiss Made” epithet of the last seven decades, despite falling numbers of watches which are nevertheless setting all-time records in rising value.
Significantly, Swiss production of traditional mechanical watches accounts for only 14% of the total units – but over 62% of its total value – and this pattern is indicative as well, for Hong Kong makers.
Brand Recognition
Of course Hong Kong also makes watches of high quality as does Switzerland of lesser quality. But Hong Kong makers are now striving for greater brand recognition to reap some of the benefit of higher retail price points coupled with good quality manufacture – and “Made in Hong Kong” is to mainland China, the world's biggest market, as “Swiss Made” is to the rest of the world.
It is some of these higher end makers from the Hong Kong Watch & Clock Fair we will visit in this report.
The 25th Hong Kong Watch & Clock Fair 2006 – For “Trade Only” Visitors
The Hong Kong Watch & Clock Fair (HKW&CF) was held from 6-11 September in Hong Kong and is the major showcase event for Hong Kong and Chinese makers notwithstanding that it is in every sense, like Baselworld, an international show.
To give some comparative context to the Hong Kong fair there were 810 exhibitors of which 566 were specific to watches and clocks – an astonishing 240 more than at Baselworld 2006. There were 16348 buyers of which more than half came from mainland China.
The Brand Name Gallery
In 2000 the HKW&CF created a “Brand Name Gallery” to promote fully finished, branded watches allowing Chinese and Hong Kong makers to share in the retail profit margins generated by their excellent products.
It has certainly fulfilled its mission to become a showcase of fine fashion labels, licensed and original brand watches. In 2006 the gallery recorded its biggest participation since 2000 with nearly 100 brands.
Not only does this elegant up-market gallery serve to give Hong Kong and China a showcase to the world, it is contrarily, becoming a launch pad for European brands looking inwards to China.
Apart from HK and China makers there were Swiss, Italian, German, French, UK, Jordanian, Korean, Netherlands, Danish, UAE and Australian exhibitors in the Brand Name Gallery. They were there to take advantage of direct exposure to China, the display rental is comparatively moderate and they are not swamped by bigger cashed up established Swiss super-brands.
Mainland companies are determined to improve the quality perception of China-made watches. They are obtaining ISO certification for their factories and using high-grade materials on products together with adding more features such as improved water and shock resistance, radios and advanced calendars to new models.
Some Interesting Companies and Products
FUJITA WATCH CRAFT CO. LTD is producing automatic watches with separate factories for the production of movements and the assembly of mechanical and electronic watch parts. Fujita is offering a full production range from stainless steel to diamond set (including transparent watches) all using Chinese, Japanese or Swiss movements depending on customer requirements and price points.
KENTEX make a range of fine watches through to the now ubiquitous tourbillon. In 2006 KENTEX has produced a very beautiful tourbillon of high quality and finish which they proudly announce is their “flagship” – and is of their own design. It is difficult to ascertain where it is made and some of the escapement parts are clearly Swatch/Nivarox (of course this is not uncommon in China, Europe or indeed for independent makers in Switzerland itself).
But some of the contradictions of Chinese production are apparent here. The finish of the Kentex dial, hands, casing and bracelet are truly superb but the screws of the bridge of the flying tourbillon are surprisingly poorly finished. This a common failing of Chinese/Asian makers – and a little attention to this kind of detail will elevate this lovely watch into a category for serious collectors.
The POWERDISK watch from Marble Watch typifies the drive to innovate. POWERDISK is the world's first analog USB and MP3 watch. It is presented as a regular watch and possesses all the normal features but now you can bring your office files and MP3 music with you on your arm where you are least likely to lose it. New in 2006 is an in-built microphone giving the capacity to discreetly record interviews on the fly!
VOILA! brand launched their model “No 8” in 2004. In 2005 VOILA exhibited a seemingly contradictory range titled “Lost in Time”. This is described as “ . . ancient Celtic Spirals abandoning rigor and linearity in a shapeless world.” The new 2006 VOILA SUPERSTAR range is an all stainless steel case that shows its craftsmanship with indents at each alternative hour where it exposes a one-piece hand stitched leather cuff.
Dalumi boosts its presence within the Asian markets
Gordon Hamme spoke to Yuval Kemp
New customer-oriented projects are created to answer different market needs
Private labels, customized projects and challenging joint ventures have been created by Dalumi to support and strengthen its presence in the Asian market, especially in China, Japan and Hong Kong.
Looking at the Chinese market for example, where Dalumi has been active for more than 12 years as a supplier of diamonds.
Research shows that the Chinese jewellery retailers are interested in manufacturers that are able to provide them with finished fashion lines, when the collections involve the use of 0,10ct diamonds. Dalumi is able to meet their needs providing not only the collection's manufacturing, but supplying them with ad-hoc marketing packages too, such as point-of-sale communication materials, ADV campaigns, packaging etc.
“Our expertise which has been developed in the different markets, our in-house design and product development department and the related global marketing department, give us a competitive advantage when planning and implementing local strategies for our clients” says Yuval Kemp. “Therefore our know-how of the Chinese market together with our understanding and on going study of this specific culture and needs.”
Dalumi is able to deal with large and small retailers all around the globe. The Group offers custom-made marketing communication packaging to support retailer's activities, according to specific markets' needs.
“In China, diamond jewellery has been traditionally related to wealth, luxury and social elite” – says Kemp. “Today we have the opportunity to target a new market which is less conventional and fascinated by exciting designs wearable in many occasions. This market is interested in fashion diamond jewels positioned as trendy, youthful and optimistic at the same time”.
To enter this specific market, Dalumi is implementing a business development plan based mainly on two different lines: generic products characterized by a simple design that are to be sold anytime and anywhere, and collections differentiated by a particular thematic design, positioned as trendy and linked to fashion tendencies.
To reach the local retailers, wide promotion activity has been implemented in order to increase the Dalumi brand awareness as a jewellery and diamonds supplier and position the Group as a key partner for fine diamond jewelry, trendy collections and thematic seasonal lines with ad-hoc marketing packages.
Together with China, a key player in the Asian industry is Hong Kong. Here Dalumi has joined the Forevermark pilot DTC flagship project in partnership with leading retailers. As the DTC program is now expanding to Japan and China - within the two mature markets of Shanghai and Beijing in particular - Dalumi has chosen retail partners for this program in these markets too.
“The jewellery industry in this area is evolving” says Yuval Kemp. “Jewellery as well as designs are becoming more and more important: people are looking for the thematic collections with the unique selling proposition. Alongside this development we have noticed hat the competition has also become fierce with more sophisticated customers. Our jewellery factory is expected to double its production capacity until the beginning of 2007” concludes Mr. Kemp.
Looking at the Japanese market, Dalumi is developing a long-term strategic plan which has begun in 2004. After a market study of Japanese customers' perception of yellow shade diamonds, Dalumi developed the Franc Jour yellow shade diamond jewellery collection together with its distribution partner Tokyo Pearl.
Furthermore in Japan Dalumi is also taking part in the Trilogy flagship programs, participating for the 4th year with Tsutsumi, the best selling Trilogy retailer for 3 years in a row.
The award for best exporter of diamonds to Japan received in March 2006 and the meeting between Meir Dalumi – Company Managing Director – and the Japanese Prime Minister in Israel, show the strong relationship Dalumi has developed with the Japanese market.
J-dex magazine 
