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Jeweller - September 2021

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VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY<br />

SEPTEMBER <strong>2021</strong><br />

All in white<br />

EXPLORING SHIFTS IN THE<br />

WHITE METALS CATEGORY<br />

Making the cut<br />

HOW JEWELLERS CAN BENEFIT FROM<br />

CREATIVE AND CLASSIC DIAMOND CUTS<br />

Ocean of colour<br />

DIVING INTO THE WORLD OF<br />

BLUE AND GREEN GEMSTONES


DISCOVER OUR DIVERSE RANGE OF NATURAL,<br />

CERTIFIED AUSTRALIAN ORIGIN SAPPHIRES<br />

Sapphires are some of the world’s oldest gemstones, each one of them dating back billions of years.<br />

Embodying the Australian wilderness, these noble gems were unearthed from the ancient landscapes<br />

of the New England Fields in Northern New South Wales and undulating hills of Central Queensland.<br />

From ocean blue, teal and yellow-green wattle to multi-coloured parti, their colour range is second to none,<br />

unveiling the array of bold sapphire hues. Sapphires are also known for their healing properties as they<br />

are the stones of protection and peace, wisdom and loyalty.<br />

Sapphire Dreams certifies and inscribes every sapphire greater than 0.75ct and provides lot numbers<br />

for all sapphires below that weight to guarantee their Australian origin.


Our Australian sapphire jewellery collection is crafted in 9ct or diamond set 18ct gold.<br />

Sapphire Dreams certifies and inscribes every sapphire greater than 0.75ct to ensure their Australian origin.


Call SGA today to become an Authorised Stockist<br />

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Australia is enriched with amazing treasures. Sapphire Dreams pays tribute to the beauty of<br />

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SWAROVSKI CREATED DIAMONDS<br />

Now proudly distributed by<br />

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DURAFLEX GROUP AUSTRALIA<br />

The new exclusive distributor of Swarovski Created Diamonds<br />

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Swarovski’s most astonishing innovations have always emerged from the company’s legacy of craftsmanship and technology.<br />

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100% DIAMONDS<br />

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BREATHTAKING BRILLIANCE<br />

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IGI REPORT<br />

All Swarovski Created Diamonds are handselected<br />

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and Carat) by our gemologists to ensure<br />

their brilliance, with each stone of 0.70<br />

carat and larger accompanied by a report<br />

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RETAIL PROGRAM<br />

This unique display allows you to present<br />

the loose lab created diamonds in an<br />

exclusive way, providing at the same time<br />

education to the end consumer as well as<br />

giving them a choice of beautifully crafted<br />

Swarovski Created Diamonds.<br />

ASSORTMENT<br />

Swarovski Created Diamonds are supplied<br />

as loose stones and are offered in six classic<br />

diamond shapes and 16 astonishing fancy<br />

colours. Available from DGA in a variety of<br />

colour and clarity ranges (D-I, VVS-SI) from<br />

0.50 ct to 2.50 ct; other sizes on request.<br />

CERTIFIED EXCELLENCE<br />

As proof of origin, each Swarovski Created<br />

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SWAROVSKI CREATED DIAMONDS


To schedule an appointment, please contact us:<br />

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L. J. WeST aU PTY LTD | Level 9, 225 St Georges Terrace | Perth, Wa 6000, australia | T +61 40 997 6981


Info@LJWestDiamonds.com | www.LJWestDiamonds.com | www.ScottWestDiamonds.com


Est. 1990<br />

Important Update regarding this year’s <strong>Jeweller</strong>y Fair.<br />

Dear retailers, buyers and family,<br />

We hope that you and your staff, as well as your family, are doing OK despite the challenges we are all facing throughout<br />

Australia.<br />

Given what was unfolding at time of production of this advertisement, it has become obvious that we must again reschedule<br />

the International <strong>Jeweller</strong>y & Watch Fair (IJWF) following the various State Government’s COVID lockdowns. It is clear that the<br />

situation is not improving quickly enough to have confidence that the <strong>September</strong> dates in Sydney can proceed.<br />

Update your diary!<br />

It was an extremely difficult decision to make, but ultimately the health and safety of everyone involved and limiting the potential<br />

threat of spreading the virus was the most important consideration.<br />

So it distresses me to announce that we believe we have no other choice but to reschedule the IJWF to next year –<br />

Saturday 27 August through to Monday 29 August, 2022 at the ICC Darling Harbour.<br />

That said, we know that many suppliers and retailers have been depending on the Sydney Fair this year to get a chance to meet<br />

face-to-face with existing and new customers, in time for the important Christmas and New Year sales periods. In fact, following<br />

18 months of COVID, never has there been a time where in-person meetings to present new products and ideas in time for<br />

Christmas are vital.<br />

For that reason, and after extensive discussions with industry leaders, there is no doubt that retail buyers are looking for new<br />

designs and products. The feedback from suppliers over the past few years, and especially since COVID, is that retailer-buying<br />

patterns have changed, with a tendency for later and later ordering for Christmas delivery.<br />

A pattern was established last year – while there was a pent-up demand after the lockdowns, retailers wanted to see sales<br />

materialise and start ticking over before they ordered Christmas stock. It should be noted that jewellery sales increased by around<br />

30% post the COVID lockdowns.<br />

StockUpTopUp<br />

JEWELLERY<br />

INTRODUCING SUTU<br />

Therefore, based on the NSW and QLD borders re-opening by a reasonable time in <strong>September</strong> and<br />

allowing retailers to begin trading again we have created special events to reconnect.<br />

Understandably, many retailers were caught short last year and found that they had under-estimated demand as consumers<br />

opened their wallets after a long period of COVID restrictions. For that reason, and with consultation with the industry, we have<br />

created a niche trade event: StockUp&TopUp (SUTU’21).<br />

StockUp&TopUp (SUTU’21) is designed exclusively to meet the buying patterns of retailers for the busiest time of the year,<br />

Christmas and New Year. And the timing of StockUp&TopUp is also ideal:<br />

SUTU Brisbane: 9 – 10 October at the Brisbane Convention Centre<br />

SUTU Sydney: 23 – 24 October at the ICC Darling Harbour<br />

Both events are not only well-timed for Christmas orders, they will also be time efficient for retailers.<br />

We are aware that the Sydney IJWF is the #1 date on the jewellery industry calendar, and we know the importance it plays in<br />

showcasing this wonderful industry; educating, inspiring and selling, and the free marketing opportunities we provide to the<br />

various industry associations and guilds to unite people. More importantly, our staff is immensely grateful for the understanding,<br />

kindness and unwavering support everyone has demonstrated during these very difficult and trying times and we promise to<br />

reward this support with the most memorable trade show ever next year.<br />

We are also please to announce the new year Trade Days will again run nationally in 2022!<br />

Melbourne: 5 – 6 February • Sydney: 12 – 13 February • Brisbane: 5 – 6 March • Perth: 12 – 13 March • Adelaide: 20 – 21 March<br />

Stay safe and positive; we did come out of this once before and time will ensure we do again.<br />

Gary Fitz-Roy<br />

www.expertiseevents.com.au


AUGUST <strong>2021</strong><br />

Contents<br />

This Month<br />

Industry Facets<br />

15 Editor’s Desk<br />

28<br />

10 YEARS AGO<br />

Time Machine: <strong>September</strong> 2011<br />

16 Upfront<br />

30<br />

MY STORE<br />

Steve Pallas Bespoke <strong>Jeweller</strong>y<br />

18 News<br />

32<br />

NOW & THEN<br />

Smales <strong>Jeweller</strong>s<br />

26 Product Spotlight<br />

35<br />

LEARN ABOUT GEMS<br />

Fire opal<br />

48 DIAMOND CUT SPECIAL<br />

Shape and shimmer<br />

4ARABELLA RODEN explores<br />

the creative potential, history, and<br />

misconceptions about diamond cuts.<br />

46 <strong>Jeweller</strong>s Showcase<br />

Features<br />

80<br />

82<br />

MY BENCH<br />

Rick Southwick<br />

SOAPBOX<br />

Lilo Stadler<br />

36<br />

48<br />

61<br />

WHITE METALS FEATURE<br />

The white side<br />

DIAMOND CUT SPECIAL<br />

A to Z: Diamond cuts<br />

GEM QUARTER: BLUE & GREEN GEMSTONES<br />

Every hue of green and blue<br />

Better Your Business<br />

36 WHITE METALS FEATURE<br />

The silver lining<br />

4The diversity of the white metals category makes<br />

it uniquely resilient in the face of unpredictable<br />

market forces, writes ARABELLA RODEN.<br />

74<br />

76<br />

77<br />

78<br />

79<br />

BUSINESS STRATEGY<br />

JEANNIE WALTERS cracks the code of predicting future consumer behaviour.<br />

SELLING<br />

It's time to assess and improve your store's sales culture, writes JOSH STRUTT.<br />

MANAGEMENT<br />

BRI WILLIAMS reveals the right way to deliver bad news.<br />

MARKETING & PR<br />

SIMON DELL explains how to build a customer loyalty program that pays off.<br />

LOGGED ON<br />

BETH WALKER presents a simplified guide to understanding digital marketing.<br />

35 LEARN ABOUT<br />

Fire opal<br />

4Also known as<br />

Mexican opal, the<br />

flame-like hues of fire<br />

opal ignite the passion and<br />

creativity of jewellers.<br />

FRONT COVER Sapphire Dreams<br />

pays tribute to the beauty of Australian<br />

sapphires, celebrating the art of<br />

craftsmanship and contemporary<br />

jewellery design. Proudly Australian<br />

owned and operated, SAMS Group<br />

Australia has more than 50 years<br />

of experience in luxury jewellery<br />

and working with Australian<br />

gemstones. All of our products<br />

are of impeccable quality, ethically<br />

sourced and expertly crafted.<br />

<strong>September</strong> <strong>2021</strong> | 13


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Editor’s Desk<br />

Beyoncé, Tiffany, and the marketing conundrum<br />

Tiffany & Co.’s latest advertising campaign has made headlines –<br />

but will it attract new customers, asks ARABELLA RODEN.<br />

When French luxury conglomerate Moët<br />

Hennessy Louis Vuitton (LVMH) acquired<br />

Tiffany & Co. in January, it signalled<br />

that big changes were afoot, whether<br />

customers liked them or not.<br />

Tiffany wasn’t just getting a takeover, but<br />

a makeover.<br />

And with the deep coffers one might<br />

expect from Europe’s most valuable<br />

company, LVMH was willing to commit<br />

the funds to seeing its new vision<br />

become a reality.<br />

Tiffany’s CEO, chief artistic officer,<br />

and chief brand officer were promptly<br />

shown the door, and new management –<br />

selected from LVMH’s existing stable of<br />

luxury brands – was ushered in.<br />

One of them was the son of LVMH<br />

chairman Bernard Arnault, who<br />

was named Tiffany’s new executive<br />

vice-president of product and<br />

communications.<br />

Born in 1992, Alexandre Arnault already<br />

had an impressive resume, having<br />

repositioned 123-year-old German<br />

luggage brand Rimowa during his tenure<br />

as CEO as a luxury powerhouse of<br />

modern travel accessories.<br />

His appointment was a clear indication<br />

of LVMH’s new marketing strategy for<br />

Tiffany – ‘freshening’ the brand for a new<br />

generation of consumers.<br />

Barely two months into Arnault’s tenure,<br />

Tiffany & Co. cancelled its New York<br />

Times print-edition ad, which had run on<br />

page 3 since 1896.<br />

The re-branding continued with a<br />

controversial billboard campaign bearing<br />

the slogan, ‘Not your mother’s Tiffany’.<br />

The intention was clear – positioning<br />

Tiffany as a youthful, on-trend, and<br />

unpretentious brand, accessible to Gen Z.<br />

Yet it fell into the trap faced by many<br />

heritage brands attempting to shift<br />

their image: alienating its existing<br />

customer base.<br />

The ire was palpable on social media:<br />

“Tiffany is classic and iconic. Why is there<br />

a need to pit generations against one<br />

another?” one Tiffany customer wrote.<br />

Another was more blunt, “I am a<br />

mom. Am I not good enough? Am I<br />

too embarrassing? Too old? My values<br />

and thoughts too stupid and dumb? Is<br />

everyone better than me because I gave<br />

birth? Or is it just all old women are not<br />

worth it and embarrassing?”<br />

Industry commentators were also<br />

unimpressed, with some calling it lazy,<br />

ageist, uninspired, and fundamentally<br />

misunderstanding the nature of Tiffany<br />

jewellery as an intergenerational product<br />

– a treasured heirloom often passed from<br />

mother to daughter.<br />

With a less-than-stellar reception for its<br />

first marketing foray, Tiffany switched<br />

gears and brought out ‘the big guns’:<br />

international superstar Beyoncé, the<br />

128-carat Tiffany Diamond, and Breakfast<br />

At Tiffany’s.<br />

Against a backdrop of a rarely-seen<br />

painting by iconic 1980s street artist<br />

Jean-Michel Basquiat – featuring Tiffanyblue<br />

paint, no less – the ‘About Love’<br />

campaign sees Beyoncé don the canary<br />

yellow pendant and croon Moon River<br />

alongside husband Jay Z.<br />

"It’s our biggest campaign for the year,"<br />

Arnault said. "It’s the most enduring<br />

campaign. Also, it’s the only year-long<br />

campaign that we have.<br />

"It marks a clear evolution of what we’ve<br />

been doing from a creative standpoint.”<br />

Indeed, if Tiffany was intending to ‘break<br />

the Internet’ with this campaign, it<br />

certainly succeeded; breathless headlines<br />

abounded over every detail, including<br />

Tiffany’s accompanying donation to<br />

historically black universities and<br />

scholarship funds in the US.<br />

However, for every post excited over the<br />

first woman of colour to wear the Tiffany<br />

Diamond, there was another criticising<br />

Beyoncé for donning a diamond mined<br />

in colonial South Africa, where African<br />

The old adage<br />

states that any<br />

publicity is good<br />

publicity, but<br />

have the ‘Not<br />

Your Mother’s<br />

Tiffany’ and<br />

‘About Love’<br />

campaigns<br />

convinced<br />

anyone, let<br />

alone Gen<br />

Z, to buy<br />

more Tiffany<br />

jewellery?<br />

labourers were often ruthlessly exploited<br />

under British control.<br />

For every article marvelling at the<br />

Basquiat, there was an opinion piece<br />

decrying the use of the artist’s work in a<br />

commercial campaign.<br />

In an attempt to appeal to Gen Z’s ‘woke’<br />

– that is, politically correct and socially<br />

aware – sensibilities, Tiffany opened<br />

itself up to severe criticism, muddying<br />

the message of its eye-wateringly<br />

expensive advertising.<br />

The old adage states that any publicity<br />

is good publicity, but have the ‘Not<br />

Your Mother’s Tiffany’ and ‘About Love’<br />

campaigns convinced anyone, let alone<br />

Gen Z, to buy more Tiffany jewellery?<br />

Arnault seems to think so. "'Not<br />

Your Mother’s Tiffany’ has been met<br />

with quite a bit of adversity, which<br />

we anticipated, but we’ve seen great<br />

growth from the product categories in<br />

it," he said in August. However, he did<br />

not provide specific figures, and the<br />

campaign was only launched in July.<br />

Arnault added, "We obviously welcome<br />

the dialogue, whether it’s positive or<br />

negative. We were spoken about by<br />

people who had never spoken about<br />

Tiffany before."<br />

In a crowded marketplace, a business<br />

must work harder than ever to win the<br />

attention and dollars of consumers.<br />

On an investor call in April, Jean-<br />

Jacques Guiony, LVMH’s chief financial<br />

officer, said, "It will take years to do<br />

what we want to do with this brand,<br />

from a distribution, merchandising, and<br />

marketing viewpoint. It is a lot of work –<br />

we are committed to doing it."<br />

It’s clear that the French conglomerate<br />

has the will and the money to turn<br />

big plans into reality. But first, it must<br />

work out exactly what it wants Tiffany<br />

to be.<br />

Arabella Roden<br />

Editor<br />

<strong>September</strong> <strong>2021</strong> | 15


Upfront<br />

#Instagram hashtags to follow<br />

#18kwhitegold<br />

34,725+ POSTS<br />

#finejewellery<br />

1.6 MILLION POSTS<br />

#garnetearrings<br />

17,904+ POSTS<br />

#londonbluetopaz<br />

88,025+ POSTS<br />

#mensrings<br />

150,422+ POSTS<br />

HISTORIC GEMSTONE<br />

Black<br />

Star of<br />

Queensland<br />

4Perhaps the most famous Australian<br />

sapphire is the Black Star of Queensland, which<br />

held the title of the world's largest star sapphire<br />

until 2015. Found by 12-year-old Roy Spencer in<br />

the gemfields of Anakie in 1938, the 1,165-carat<br />

rough was used as a doorstop before Roy's father<br />

realised it was a sapphire.<br />

Alpha Order<br />

#modernjewellery<br />

205,494+ POSTS<br />

#ovaldiamond<br />

98,475+ POSTS<br />

#peridot<br />

1.1 MILLION POSTS<br />

#sapphirering<br />

270,904+ POSTS<br />

#southseapearls<br />

241,247+ POSTS<br />

US jeweller Harry Kazanjian purchased the rough in 1947 and painstakingly<br />

cut it into a 733-carat cabochon, later set in a diamond pendant and worn by<br />

singer Cher in 1971 (top right). It changed hands several times in the 2000s,<br />

with an estimated sale price of $US100 million, and was last seen in 2007.<br />

Campaign Watch<br />

4Lourdes Leon, the daughter of<br />

Madonna, has been tapped as the latest<br />

model for Swarovski jewellery as part<br />

of its ongoing re-branding strategy.<br />

Leon will be the face of Collection II, the<br />

second range of designs from the crystal<br />

brand's creative director Giovanna<br />

Battaglia Engelbert. The pieces feature<br />

kaleidoscopic colours and on-trend<br />

chain details.<br />

Image credit: Swarovski/Mikael Jansson<br />

Stranger Things<br />

Weird, wacky and wonderful<br />

jewellery news from around the world<br />

Dammed if you do<br />

4Former action star Jean-Claude<br />

Van Damme may have unwittingly<br />

assisted in the robbery of a<br />

luxury jewellery store in Paris by<br />

distracting would-be witnesses.<br />

According to a UK report, an armed<br />

man successfully held up staff at<br />

the Chaumet store on the Champs-<br />

Élysées and made off with jewellery<br />

valued at more than €2 million, with<br />

crowds of shoppers on the street<br />

failing to notice the commotion as<br />

they clammered to get a look at The<br />

Expendables star instead.<br />

Dental as anything<br />

4US professional footballer<br />

Odell Beckham Jr has undergone<br />

a glitzy mouth makeover. The<br />

athlete had diamond-encrusted<br />

porcelain veneers placed on his<br />

teeth at a cost of $US1.8 million.<br />

The design used stones weighing<br />

a total of 13 carats, including oval,<br />

kite, and cross-cut shapes. Several<br />

other celebrities, including rapper<br />

Post Malone, have had similar<br />

dental treatments.<br />

Provenance Proof<br />

– which relies<br />

on blockchain<br />

technology – now<br />

has more than 500<br />

users globally.<br />

Digital Brainwave<br />

4The Provenance Proof gemstone tracking<br />

platform, developed by the House of Gübelin<br />

and Australian-led blockchain technology<br />

firm Everledger, has marked 500,000<br />

coloured gemstones processed worldwide,<br />

as well as announcing new features.<br />

Klemens Link, head of Provenance<br />

Proof, said, “Retailers and customers<br />

demand information that goes beyond the<br />

scientific data that can be provided in the<br />

gemmological laboratory. Digital technology<br />

has bridged the gap."<br />

New Product<br />

4SAMS Group Australia introduces<br />

Sapphire Dreams, a new range paying<br />

tribute to the beauty of Australian<br />

sapphires. Sapphire Dreams exhibits a<br />

wide range of contemporary sapphire<br />

jewellery, set in 9 or 18-carat gold.<br />

Ethically sourced loose Australian<br />

sapphires are also available, with laser<br />

inscription and a verified certificate.<br />

Robbing the grave<br />

4Police have arrested a French<br />

woman for a jewellery theft which<br />

took place at an open casket funeral.<br />

The woman is alleged to have<br />

posed as a friend of the deceased,<br />

convincing family members to allow<br />

her to pay her respects alone. French<br />

media report that when the family<br />

returned, the deceased's earrings,<br />

ring and necklace were all missing.<br />

Searching the suspect's home, police<br />

later found a stack of recent death<br />

notices along with funeral home<br />

access codes.<br />

VOICE OF THE AUSTRALIAN JEWELLERY INDUSTRY<br />

Published by Befindan Media Pty Ltd<br />

Locked Bag 26, South Melbourne, VIC 3205 AUSTRALIA | ABN 66 638 077 648 | Phone: +61 3 9696 7200 | Subscriptions & Enquiries: info@jewellermagazine.com<br />

Publisher Angela Han angela.han@jewellermagazine.com • Editor Arabella Roden arabella.roden@jewellermagazine.com • Production Assistant Lauren McKinnon art@befindanmedia.com<br />

Digital Co-ordinator Trish Bucheli-Preece trish@jewellermagazine.com • Advertising Toli Podolak toli.podolak@jewellermagazine.com • Accounts Paul Blewitt finance@befindanmedia.com<br />

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Supplying Australia Since 1974


Sydney jewellery fair cancelled; new<br />

events launched for October<br />

The <strong>2021</strong> International <strong>Jeweller</strong>y & Watch Fair has been cancelled, with two new<br />

buying events announced for Sydney and Brisbane in October.<br />

With continuing high COVID-19 case numbers and an extended lockdown<br />

in greater Sydney, organiser Expertise Events has cancelled the upcoming<br />

International <strong>Jeweller</strong>y & Watch Fair, (IJWF) however two new events are<br />

launching in Brisbane and Sydney.<br />

The IJWF, due to take place at the ICC Sydney Exhibition Centre in Sydney’s<br />

Darling Harbour, was previously postponed from 29–30 August to 24–27<br />

<strong>September</strong> <strong>2021</strong>.<br />

Gary Fitz-Roy, managing director Expertise Events, said it was “devastating”<br />

to cancel what would have been the 30th IJWF. “It’s clear that the situation is<br />

not improving quickly enough to have confidence that the <strong>September</strong> dates<br />

in Sydney can proceed to the scale that it has been previously,” Fitz-Roy said<br />

in an email to exhibitors.<br />

The Diamonds by DGA range includes<br />

9K and 18K gold bridal sets, wedding<br />

bands, earrings, bracelets,<br />

rings and pendants.<br />

New season designs now available.<br />

'Exceptional' 342-carat<br />

diamond found<br />

4 Petra Diamonds has recovered a<br />

342.92-carat Type IIa white rough stone<br />

at the iconic Cullinan Mine in South<br />

Africa. The diamond is described as<br />

“exceptional” in terms of both colour<br />

and clarity, and that is likely to be<br />

sold at Petra's <strong>September</strong> tender. The<br />

company sold a 299.3-carat Type IIa<br />

stone for $US12.2 million in March and<br />

a 39.34-carat Proudly blue distributed diamond for by $US40.2<br />

million in July.<br />

“It was an extremely difficult decision to make, but ultimately the health<br />

and safety of everyone involved and limiting the potential threat of spreading<br />

the virus was the most important consideration, as is the confidence of our<br />

visitor audience to attend large gatherings.”<br />

Expertise Events confirmed the next IJWF will take place from Saturday<br />

27 to Monday 29 August 2022.<br />

“Our staff are immensely grateful for the understanding, kindness and<br />

unwavering support everyone has demonstrated during these very difficult<br />

and trying times and we promise to reward this support with the most<br />

memorable trade show ever next year.”<br />

Fitz-Roy acknowledged that suppliers and retailers were depending on this<br />

year’s Sydney fair to meet face-to-face in time for the crucial Christmas and<br />

New Year sales periods. Taking this into consideration, Expertise Events has<br />

announced new buying days, similar to the successful Trade Days format<br />

earlier this year.<br />

Named Stock Up & Top Up (SUTU), the events are scheduled to be held at:<br />

• Brisbane: 9–10 October <strong>2021</strong> at the Brisbane Convention Centre<br />

• Sydney: 23–24 October <strong>2021</strong> at the ICC Darling Harbour<br />

Both will have capped exhibitor numbers; IJWF exhibitors will be invited<br />

to attend first, with the ability to ‘roll over’ their deposits to SUTU or to the<br />

2022 IJWF.<br />

“As you will understand, our office is closed but we will do our very best<br />

to call you personally to seek your instructions,” Fitz-Roy said. All buying<br />

groups are invited, with Nationwide <strong>Jeweller</strong>s and Independent <strong>Jeweller</strong>s<br />

Collective already committing their support.<br />

18 02 9417 | <strong>September</strong> 0177 | www.dgau.com.au<br />

<strong>2021</strong>


Michael Hill results indicate<br />

transformation on track<br />

Despite the ongoing COVID-19 pandemic, Michael Hill International has recorded<br />

strong financial results for the year with a lift in same-store sales.<br />

Michael Hill International (MHI) has reported an after-tax profit of $45.3<br />

million for the year ended 30 June <strong>2021</strong>, a significant increase from its 2020<br />

result of $3.1 million. Earnings before interest and tax were $72.4 million,<br />

compared with $14.1 million the previous year.<br />

The company’s revenue from Australian stores was $312.3 million, a 17 per<br />

cent increase compared to FY20, while revenue from New Zealand stores<br />

exceeded $121 million – 19 per cent increase over the previous year.<br />

Commenting on the result in a media release, Daniel Bracken, CEO MHI,<br />

said, “I am particularly proud of our results, underpinned by strategy<br />

execution and the resilience of our team... Setting aside the global<br />

store network closure in 2020, the company has now delivered eight<br />

consecutive quarters of positive same-store sales growth together with<br />

sustained margin expansion.”<br />

As at 30 June <strong>2021</strong>, there were 150 Michael Hill stores in Australia – a loss of<br />

five stores on the previous year and representing more than 52 per cent of its<br />

285 total store count. At the time of publication, 46 NSW, 34 Victorian and 4<br />

ACT stores are temporarily closed due to government-mandated lockdowns,<br />

with a further 49 New Zealand stores also in lockdown.<br />

Bracken explained: “Throughout the year, we successfully navigated the<br />

complexity of the global pandemic, with half our Canadian stores closed for<br />

many months, and sporadic temporary closures across our global network.<br />

“While it was an incredibly challenging year, the strength of our brand and<br />

the determination of our team delivered record results and further validates<br />

the transformation is on track.”<br />

MHI also experienced encouraging results in Canada, where all-store<br />

revenue increased by 6.9 per cent to $CA118.4 million, up from $CA110.8<br />

million the previous year. This included a same-store sales increase of 6.8<br />

per cent.<br />

The company noted: “This segment was heavily impacted by temporary store<br />

closures in Eastern Canada, with 6,525 lost store trading days for the year.<br />

By early July, all 86 stores were open and have remained trading, with our<br />

strategic focus now returning to the productivity opportunity in the market."<br />

The financial announcement noted that MHI had experienced “significant"<br />

lost sales in the first seven weeks of FY22 due to lockdowns in Australia,<br />

though strong early performance in Canada and New Zealand contributed to<br />

an increase of 17 per cent group same-store sales for the period.<br />

Management estimated that the 2,755 lost trading days – a figure calculated<br />

by adding the opening hours of all temporarily closed stores – would lower<br />

revenue expectations by $5 million, with sales down 2 per cent.


New Scandinavian watch brand launched in Australia<br />

Nordgreen watches, distributed locally by West End<br />

Collection, have proved popular, reaching DKK101 million<br />

($AU22.2 million) in sales last year.<br />

West End Collection has begun distributing<br />

Nordgreen watches – designed in Copenhagen,<br />

Denmark – to the local market.<br />

Founded in 2017, Nordgreen is described as<br />

combining minimalist Nordic design with a<br />

commitment to environmental and social<br />

responsibility. Its timepieces are conceptualised<br />

by award-winning designer and engineer Jakob<br />

Wagner, who is renowned for his work at luxury<br />

electronics manufacturer Bang & Olufsen.<br />

In addition to sustainable production and<br />

recyclable packaging, the brand also operates<br />

a ‘Give Back Program' – for each watch<br />

purchased, Nordgreen organises a donation to<br />

one of three charity projects.<br />

John Rose, director West End Collection, said,<br />

“Nordgreen is the next big watch brand to<br />

come out of Scandinavia. It has a very powerful<br />

and experienced team behind it; the advisory<br />

board includes the former CEO of Pandora,<br />

Mikkel Olesen, as well as Juha Christensen, the<br />

chairman of Bang & Olufsen.<br />

“Its chief commercial officer is the man<br />

responsible for the incredible growth of Skagen,<br />

prior to it being purchased by Fossil, Lars<br />

Kornbech,” Rose added.<br />

Rose called Nordgreen’s sales growth “far<br />

greater than any other brand that we have<br />

seen”; according to a brand presentation, its<br />

revenues increased from DKK31 million ($AU6.8<br />

million) in 2019 to DKK101 million ($AU22.2<br />

million) in 2020 – its third calendar year of<br />

operation – despite the COVID-19 pandemic.<br />

At retail, Nordgreen pieces are priced between<br />

$239–429 across five lines for men and women.<br />

The brand is currently stocked by retailers<br />

across Europe and Asia, including Denmark, the<br />

UK, Germany, Japan and China.<br />

Rose emphasised the brand’s “genuine support”<br />

for retailers, noting that each new stockist would<br />

receive a 30-day "Geotargeting campaign" to<br />

boost in-store sales through digital marketing.<br />

New Nordgreen stockists also receive a free<br />

second watch strap with every watch.


Pandora’s sales, share price<br />

on the rise<br />

Amid promising results in the second quarter of <strong>2021</strong>, Pandora Jewelry has<br />

updated its financial guidance for the year.<br />

Pandora Jewelry has issued an<br />

encouraging financial guidance,<br />

upgrading its forecast for the<br />

remainder of <strong>2021</strong>.<br />

The company had originally<br />

estimated organic growth – that<br />

is, increase in revenue excluding<br />

mergers and acquisitions – would<br />

be “above 12 per cent” for the<br />

year; the revised figure is 16–18<br />

per cent.<br />

Meanwhile, the forecast operating<br />

margin has also increased from<br />

22 per cent to 23–24 per cent.<br />

The updated guidance is based<br />

on the assumption that 5 per<br />

cent of Pandora’s stores will be<br />

temporarily closed or severely<br />

impacted due to the COVID-19<br />

pandemic during the second half<br />

of <strong>2021</strong>.<br />

Earlier forecasts indicated the<br />

number could be as high as<br />

10 per cent.<br />

In the second quarter of <strong>2021</strong>,<br />

15 per cent of its global network<br />

of approximately 2,690 stores –<br />

of which 1,382 are owned and<br />

operated by Pandora – were<br />

temporarily closed.<br />

A statement issued by the<br />

company on 8 August noted,<br />

“Today, around 6 per cent of<br />

the stores are temporarily<br />

closed or severely impacted<br />

due to COVID-19.<br />

"The updated guidance also<br />

assumes that COVID-19 will have<br />

no major negative impact on<br />

production and supply chain.<br />

“COVID-19 is still expected to<br />

impact organic growth negatively<br />

by around -6 per cent for the full<br />

year.”<br />

The statement also shed light on,<br />

and compared, past results to<br />

those achieved during the second<br />

quarter of <strong>2021</strong>.<br />

Describing the company’s “strong<br />

momentum” during the period,<br />

the statement noted that organic<br />

growth had increased 13 per cent<br />

compared with 2019 and 84 per<br />

cent compared with 2020.<br />

Overall, the company recorded<br />

revenue of DKK5.2 billion<br />

($AU1.1 billion) for the quarter –<br />

an 84 per cent increase compared<br />

with the same period in 2020 and<br />

13 per cent above the second<br />

quarter of 2019, prior to the<br />

COVID-19 pandemic.<br />

The positive results follow the<br />

launch of Pandora’s new strategic<br />

initiative, Phoenix, at the end of<br />

the first quarter.<br />

Meanwhile, following some<br />

time in the doldrums, Pandora’s<br />

share price on the NASDAQ<br />

Copenhagen had rebounded to<br />

DKK761 at the time of publication<br />

– up from DKK455 at the same<br />

time last year.<br />

The company’s share price was<br />

well above its ‘COVID low’ of<br />

DKK203 on 13 March 2020 and<br />

consistently trading near its 2017<br />

peak of more than DKK900.


Sydney and Melbourne lockdowns bite into July jewellery sales<br />

New sales data compiled by Retail Edge Consultants<br />

indicates jewellery sales in dollar and number terms<br />

declined between June and July, likely due to enforced<br />

store closures across Sydney and Melbourne.<br />

The extended lockdown of greater Sydney and<br />

a two-week snap lockdown in Melbourne in<br />

July have impacted jewellery sales in dollar<br />

and number terms, bringing to an end more<br />

than eight months of upward momentum.<br />

When compared with June <strong>2021</strong>, overall<br />

sales declined from $12.7 million to $11.4<br />

million, and were 14 per cent lower than in<br />

July 2020, according to data compiled by<br />

Retail Edge Consultants.<br />

"When compared with June <strong>2021</strong>, overall sales<br />

declined from $12.7 million to $11.4 million,<br />

and were 14 per cent lower than in July 2020"<br />

Sales fell across all jewellery categories,<br />

with the most significant decrease in silver<br />

and alternative metal jewellery, which declined<br />

by 24.8 per cent when compared with the<br />

previous month and 19 per cent compared<br />

with July 2020.<br />

However, overall jewellery sales in dollar terms<br />

increased 4.3 per cent when compared with<br />

2019, while average sale price (inventory only)<br />

was 34 per cent higher than in July 2019.<br />

Michael Dyer, sales manager at Retail Edge,<br />

noted in the report, “Although the figures are<br />

a little clouded by the number of stores with<br />

limited trading in July, the picture does show<br />

customers are still buying bigger ticket items<br />

than last July.”<br />

The best performing category in sales dollars<br />

was no-stone precious metal jewellery, which<br />

increased 45 per cent when compared with<br />

July 2019 and remained flat compared with<br />

2020, followed by diamond-set precious metal<br />

jewellery which increased 19 per cent over<br />

two years.<br />

Dyer added, “With the calendar turning<br />

over into August you should be well into the<br />

planning, if not the placing of orders for the<br />

lead into Christmas.”<br />

He suggested retailers conduct a strategic<br />

review of the best-performing product<br />

categories over the past 12 months ahead of<br />

the all-important buying season, as well as<br />

under-performing categories.<br />

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Bigger is better for Lightbox labcreated<br />

diamonds<br />

De Beers-owned Lightbox Jewelry has announced it is expanding into two-carat<br />

blue, pink, and white lab-created diamond jewellery..<br />

Lightbox, the De Beers-owned lab-created diamond fashion jewellery<br />

business, has announced that it will now manufacture and sell larger stones,<br />

while maintaining its $US800 per carat pricing model.<br />

From October, Lightbox will offer pink, blue and white lab-grown diamonds in<br />

sizes up to and including two carats, with a 2-carat round brilliant lab-grown<br />

diamond pendant retailing for $US1,600 plus the cost of setting. Previously,<br />

Lightbox pieces were limited to one carat.<br />

The company also announced it is further expanding its product range with the<br />

launch of 'Finest', a new line which it describes as, “superior quality Lightbox<br />

lab-grown diamonds, priced well-below what is currently offered in the market.”<br />

The Finest product line comes courtesy of a new proprietary diamond<br />

engineering process developed by the De Beers-owned lab-created<br />

diamond manufacturer Element Six. It combines existing chemical vapour<br />

deposition (CVD) technology with a further refinement process that<br />

enhances colour in stones. Element Six opened a new, advanced $US94<br />

million factory in the US state of Oregon in October 2020.<br />

Steve Coe, CEO Lightbox, said, "These exciting new introductions represent<br />

our continued commitment to innovation.<br />

“Our incredible team continues to push the boundaries on lab-grown diamond<br />

engineering technology and thanks to our 50 years of experience, pioneering<br />

approach, IP portfolio and state-of-the-art manufacturing facility we have the<br />

capability to now take the next steps in expanding our lab-grown diamond<br />

product range to include stones of larger size and even higher qualities.”<br />

Coe told US publication JCK Online that Lightbox expanded its product<br />

offering in response to consumer demand for bigger stones, noting its pair of<br />

1-carat lab-created diamond studs have sold well.<br />

He added that Pandora Jewelry’s recent introduction of a lab-created<br />

diamond line aligns with where Lightbox sees the “long-term opportunity<br />

for lab-grown: the ability to sell at an accessible price point.” The jewellery<br />

giant launched its first collection set exclusively with lab-created diamonds,<br />

‘Pandora Brilliance’, in May, while announcing plans to phase out natural<br />

diamonds from its product lines.<br />

Coe also commented on Lightbox’s sales figures, noting its 2020 revenue was<br />

up 50 per cent compared with the prior year and <strong>2021</strong> revenue is expected to<br />

triple the 2020 figure.<br />

The new, larger lab-created diamond jewellery will be available to purchase<br />

via the Lightbox website in late October and a broader rollout to both bricksand-mortar<br />

and online retail stockists is planned for early 2022. Launched<br />

in <strong>September</strong> 2018, Lightbox jewellery was initially only available to the<br />

US market, however it is now distributed in 75 countries via e-commerce,<br />

including Australia.<br />

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Buying group announces strong profits and returns for members<br />

Showcase <strong>Jeweller</strong>s has announced positive financial<br />

results for the year, with $3 million refunded to members<br />

as part of its profit-sharing model.<br />

The Showcase <strong>Jeweller</strong>s buying group has<br />

announced positive financial results for FY2019-<br />

2020 and FY2020-21, with a total of $3 million<br />

repaid to its members across Australasia.<br />

The results exceeded expectations, with Jorge<br />

Joaquim, chief financial officer, Showcase<br />

<strong>Jeweller</strong>s, saying the group’s profits had “almost<br />

doubled” in FY2020-21 compared with the<br />

previous financial year.<br />

Joaquim attributed Showcase’s performance<br />

to a number of factors during the COVID-19<br />

pandemic: “The government provided various<br />

types of assistance to businesses and<br />

individuals... So much money in the [local]<br />

economy led to a spending spree, including<br />

the jewellery industry. Just like many other<br />

businesses, our profits were beyond our<br />

expectations,” he told <strong>Jeweller</strong>.<br />

In a statement announcing the financial<br />

results, Showcase management said the<br />

buying group had "held steadfast in providing<br />

consistent support to its members over the<br />

past 12 months, while many members in turn<br />

have persevered through trials to thrive in<br />

unprecedented times.”<br />

During the 2020-21 financial year, the buying<br />

group implemented a three-month period<br />

without charging members and distributed<br />

refunds totalling $1 million from members’<br />

‘trading loan’ pool of funds.<br />

As Australasia’s only member-owned jewellery<br />

buying group, Showcase charges a 1 per cent<br />

fee on purchases which fund the trading loan,<br />

with all profits distributed to members annually;<br />

each member’s trading loan balance is fully<br />

refunded once they retire from Showcase.<br />

With retailers in NSW and Victoria currently<br />

impacted by extended lockdowns, Joaquim<br />

said Showcase management was “evaluating<br />

the situation in key COVID-19 areas to assess<br />

members’ needs and will take action accordingly<br />

for specific cases”. As at 1 December 2020,<br />

Showcase <strong>Jeweller</strong>s had 159 members across<br />

Australia, New Zealand and Vanuatu.<br />

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Kiwi jewellery brand moves across ‘the ditch’<br />

Pride Brands has taken over distribution of Kagi<br />

<strong>Jeweller</strong>y, with stock to be held in Australia instead<br />

of New Zealand.<br />

Pride Brands has secured the Australian<br />

distribution for high-profile New Zealand<br />

jewellery brand Kagi. Founded in 2005, Kagi’s<br />

range includes unique and interchangeable<br />

pendants, necklaces, bracelets and earrings.<br />

Paul McCarthy, group brand manager Pride<br />

Brands, believes the brand is “a good fit” with<br />

the supplier's existing brands.<br />

“Kagi has always had a big following with<br />

customers in Australia but it hasn’t been<br />

represented locally here for many years.<br />

"Since the business was sold in 2018, the new<br />

owners in New Zealand have returned the brand<br />

to its core designs that offer statement jewellery<br />

pieces that are easily interchanged to create<br />

different looks and styles,” McCarthy said.<br />

McCarthy told <strong>Jeweller</strong> that Kagi stock will<br />

now be held in Australia instead of New<br />

Zealand, which should enable local retailers<br />

to receive orders more quickly and cut out the<br />

“time zone challenges”.<br />

Kagi has more than 80 stockists across<br />

Australasia and McCarthy said Pride Brands<br />

would fully service the brand in Australia, adding<br />

that “previous stockists of Kagi will be given the<br />

first option of stocking the brand in their area”<br />

He added, “We also believe the decision to<br />

return Kagi to the original, versatile designs<br />

that everyone knows and loves will be rewarded<br />

by the brand’s loyal customers [and we] saw<br />

Kagi as being a good fit and point-of-difference<br />

to our existing stable of jewellery brands<br />

from Germany – Engelsrufer, Save Brave and<br />

Herzengel.”<br />

Pride Brands took over Australian distribution of<br />

the three German brands in <strong>September</strong> 2020.<br />

Engelsrufer’s flagship design is a sterling silver<br />

basket pendant that can hold interchangeable<br />

‘sound balls’. Herzengel is a range of sterling<br />

silver jewellery for children, while Save Brave<br />

is a boutique range of men's jewellery and<br />

accessories, including chains, leather necklaces<br />

and bracelets and steel bracelets.


On The Market<br />

1 2 3<br />

4<br />

5<br />

SEPTEMBER<br />

Product<br />

Spotlight<br />

<strong>Jeweller</strong>’s special snapshot<br />

of the latest jewellery and<br />

watches to hit the market.<br />

6 7<br />

8<br />

1 ELLENDALE DIAMONDS Created to capture your individuality and beauty, this three-band ring is crafted in 18-carat white and rose gold and set with shimmering white diamonds and stunning Argyle pink<br />

diamonds, radiating sophistication. 2 ROAMER | West End Collection The Competence Skeleton III is a brilliant example of precision and a clear design language. The 43mm stainless steel case features an<br />

open, skeleton dial creating a window into the fascinating movement beneath. 3 IKECHO AUSTRALIA The 9-carat Keshi Diamond Pendant from the Baroque Collection features an 18mm+ freshwater keshi<br />

pearl delicately set in yellow gold studded with white diamonds. 4 THOMAS SABO | Duraflex Group Australia Thomas Sabo’s Charming Collection presents a range of new filigree creations, with playful,<br />

sparkling padlock and key symbols across ear studs, rings, and necklaces. 5 UNODE50 | Timesupply New to the exciting and dynamic handmade Spanish brand UNOde50 is the Dazzle Collection, studded<br />

with sparkling European crystals. 6 KAGI | Pride Brands The Kagi Elyssian Pendant has its own unique aura. Brushed steel and rose gold plating combine beautifully to create a stunning statement piece.<br />

7 EFVA ATTLING STOCKHOLM | Nordic Fusion The Women Power Earrings by Efva Attling Stockholm pay tribute to all women, formed in a sterling silver W and stamped with the word ‘power’. 8 DORA | RJ<br />

Scanlan & Co. Dora’s new Tantalum Collection is raising eyebrows – and sales. The dark grey metal is a similar weight to platinum and versatile, stretching up to three sizes, with a great price-point.


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10 Years Ago<br />

Time Machine: <strong>September</strong> 2011<br />

A snapshot of the industry events making headlines this time 10 years ago in <strong>Jeweller</strong>.<br />

Historic Headlines<br />

4 Hong Kong jewellery fair closes amid caution<br />

4 Diamond investment funds stretch to Aus<br />

4 Local jeweller to judge global competition<br />

4 <strong>Jeweller</strong>s 'tickled pink' at gem sale<br />

4 Diamond rings now a bride's choice<br />

New jewellery fair for Sydney?<br />

Only one week after the JAA signed a new<br />

five-year agreement with jewellery trade fair<br />

organiser, Expertise Events, a new fair has been<br />

announced for Sydney.<br />

The Intermedia Group, the publishing house<br />

behind <strong>Jeweller</strong>y World magazine, announced the<br />

launch of a rival jewellery exhibition, set to kick-off<br />

in 2012. The proposed fair – entitled the <strong>Jeweller</strong>y<br />

World Show – will take place only one week<br />

before the official JAA International <strong>Jeweller</strong>y Fair,<br />

<strong>September</strong> 2-4, 2012, of which <strong>Jeweller</strong> is the<br />

official media partner.<br />

For JAA chairman Peter Beever, the<br />

announcement came as something of a surprise.<br />

“We are not sure why there is a need for a second<br />

Sydney fair and we’re not confident that the<br />

industry could support a second event at the same<br />

time as our [JAA] fair,” he told <strong>Jeweller</strong>.<br />

Tiffany may become<br />

takeover target<br />

The respected financial news website, Bloomberg<br />

has reported that Tiffany & Co. could become a<br />

takeover target after its profit-sharing alliance<br />

with Swatch Group was recently terminated.<br />

With the breakup of the Swatch deal, Tiffany<br />

may now lure interest from luxury groups Moët<br />

Hennessy Louis Vuitton and Financiere Richemont.<br />

Jon Cox, a Zürich-based analyst for Kepler<br />

Capital Markets, told Bloomberg, “If someone<br />

like a Richemont, another watch company,<br />

wanted to take over Tiffany’s, that would have<br />

caused complications [because of the Swatch<br />

partnership]."<br />

According to data compiled by Bloomberg, Tiffany<br />

could command a 40 per cent premium in the<br />

event of an acquisition.<br />

<strong>September</strong> 2011<br />

ON THE COVER SAMS Group Australia<br />

Editor’s Desk<br />

4Pointless Polls Produce Meaningless<br />

Statistics:“Did you recently read an article<br />

about how 86 per cent of people are<br />

“dubious about purchasing jewellery<br />

online” and that 43.8 per cent of people<br />

“wouldn’t buy jewellery online”? I hope<br />

you didn’t, as the statistics most likely<br />

came from a voodoo poll.<br />

"What worries me more than banal<br />

online polls is that many in the jewellery<br />

industry try tricking themselves into<br />

believing that online retailers don’t offer<br />

a genuine alternative for consumers."<br />

Soapbox<br />

4Old School vs New School: “My own<br />

degree, which was endorsed by the<br />

JAA, offered an alternative training<br />

and educational model to the<br />

apprenticeship system and covered<br />

both design and manufacturing skills.<br />

Imagine my shock, therefore, when<br />

I returned to my home state of<br />

Tasmania to find potential employers<br />

were reluctant to recognise my<br />

degree. Some modern courses are<br />

in fact better equipped to prepare<br />

students for work than the traditional<br />

apprenticeship."<br />

– Emily Snadden, jeweller<br />

STILL RELEVANT 10 YEARS ON<br />

Age and Experience:<br />

Young jewellers face no shortages in<br />

skills training courses and degree options<br />

– whether they adequately prepare them<br />

for, or necessarily propel them into, a<br />

paying career in the jewellery industry<br />

is questionable, however... Despite there<br />

being many creative avenues for young<br />

jewellers, many still struggle in getting<br />

established and obtaining entry-level jobs<br />

after training.<br />

Indian suitor tipped for<br />

Zamels <strong>Jeweller</strong>s<br />

Sydney-based private-equity firm Quadrant<br />

is considering the sale of The <strong>Jeweller</strong>y<br />

Group, parent company 101 Zamels and 26<br />

Mazzuchellis stores.<br />

Quadrant acquired the business in March<br />

2007 from the Zamel family and recently<br />

began looking to find an overseas buyer. While<br />

<strong>Jeweller</strong>’s sources ruled out New Zealand's<br />

James Pascoe, reports indicate an India-based<br />

company is currently undertaking due diligence.<br />

If a new sale proceeds, Quadrant is tipped to be<br />

offloading the group for less than $20 million – a<br />

loss of $30 million in just over four years.<br />

<strong>Jeweller</strong>s squeeze shopping<br />

centres over rent<br />

Retail giant Premier Investments has thrown<br />

down the gauntlet to shopping centre landlords<br />

in a bid to reduce rents, but some jewellery<br />

retailers have already begun the process.<br />

Following a tumble in profits, the retail<br />

powerhouse behind fashion clothing<br />

brands including Just Jeans, Jay Jays and<br />

Portmans threatened to close as many as<br />

50 under-performing stores if shopping<br />

centre landlords don’t 'come to the party' on<br />

rent reviews.<br />

Pressure from a major retail player to reduce<br />

rents could conceivably deliver a much-needed<br />

knock-on effect for jewellers suffering under<br />

exorbitant rents but some jewellery chains have<br />

already demanded rent reductions.<br />

READ ALL HEADLINES IN FULL ON<br />

JEWELLERMAGAZINE.COM<br />

28 | <strong>September</strong> <strong>2021</strong>


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INSIDE<br />

My Store<br />

Steve Pallas Bespoke <strong>Jeweller</strong>y<br />

MELBOURNE, VIC with Steve Pallas, director and master jeweller • SPACE COMPLETED June <strong>2021</strong><br />

4Who is the target market and how did they<br />

influence the store design?<br />

Anybody who wants bespoke jewellery<br />

design, whether it be jewellery remodelling,<br />

diamond engagement rings, antique jewellery<br />

restoration etcetera.<br />

We tend to attract the customers who have the<br />

wildest ideas and the most challenging jobs that<br />

other jewellers might not take.<br />

Specifically, our customers appreciate quality,<br />

design, honesty and integrity.<br />

This is reflected in the store – we are always<br />

striving for the best, constantly updating and<br />

making changes to our showroom, and are<br />

currently renovating our workshop too.<br />

4With the relationship between store<br />

ambience and consumer purchasing in mind,<br />

which features in the store encourage sales?<br />

Our focus isn’t to encourage sales, as such – 90<br />

per cent of our customers find us through wordof-mouth<br />

– but rather to allow the customer to<br />

be comfortable enough to purchase and to help<br />

them make an informed decision about their<br />

special piece.<br />

I strive to educate the customer first, so they know<br />

exactly what they’re purchasing – allowing them<br />

to view, try and hold.<br />

Providing 3D CAD and/or 3D resin printing<br />

on-site also gives our customers reassurance,<br />

allowing them to get a clearer idea of the<br />

final product.<br />

4What is the store design’s ‘wow factor’?<br />

It is definitely our custom indoor and outdoor<br />

signage, which reflects the new name and<br />

branding of the store.<br />

As the store is located in the basement of a<br />

heritage-listed building on Melbourne’s iconic<br />

Hardware Lane, we couldn’t change the exterior.<br />

Instead, we invested in an amazing custom-made<br />

bronze sign which helps us stand out and attracts<br />

shoppers downstairs to our store.<br />

30 | <strong>September</strong> <strong>2021</strong>


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INSIDE<br />

Now & Then<br />

Smales <strong>Jeweller</strong>s<br />

Celebrating 84 Years • PERTH, BUNBURY, GERALDTON, KARRATHA AND KALGOORLIE, WA • A moment with Tony Smales, owner & manager<br />

MILESTONES<br />

1937<br />

Ron Smales Sr opens<br />

Smales Watch & Clock<br />

Repairs at the rear of his<br />

family’s suburban home<br />

in Kalgoorlie<br />

L to R: Ron Smales Sr and his apprentice at the first Smales <strong>Jeweller</strong>s showroom on Hannan Street,<br />

Kalgoorlie; Shanaya King models the Gold Nugget Collection.<br />

Smales <strong>Jeweller</strong>s is one of Western<br />

Australia’s oldest jewellers and<br />

watchmakers, and with this age comes<br />

precision and history – all beginning with<br />

Thomas Smales, the father of founder<br />

Ron Smales Sr.<br />

Coming from the trade of stonemasonry,<br />

Thomas fixed mantel and wall clocks with<br />

his son, who went on to establish a small<br />

business at the family home in Kalgoorlie.<br />

Ron later worked as an instrument maker<br />

for the Royal Australian Air Force’s 451<br />

Squadron, fixing crashed aircraft in the<br />

Middle East during World War II.<br />

After the war, Ron formalised his<br />

qualifications and completed a watchmaking<br />

apprenticeship in Perth, before opening<br />

his ‘watchmaking jewellery store’ back home<br />

in Kalgoorlie.<br />

When Ron retired, his son – my brother Ron<br />

Smales Jr – took over the Kalgoorlie store<br />

and later expanded the business to a second<br />

location in Subiaco, Perth in 1989.<br />

With the success of the Subiaco store,<br />

Ron Jr’s name became synonymous with<br />

the Perth luxury watch industry and his<br />

lively personality well-known on the Perth<br />

social scene.<br />

Over the following years, Smales <strong>Jeweller</strong>s<br />

opened an additional three stores across<br />

the state and three jewellery workshops in<br />

Subiaco, Kalgoorlie and Bunbury.<br />

Within any business – especially a family<br />

business – death is a great hardship, and<br />

indeed the most recent challenge faced by<br />

Smales <strong>Jeweller</strong>s was Ron Jr passing away<br />

in April 2018.<br />

Smales operations have been continued on<br />

by the family, with ownership bestowed to me<br />

as Ron’s brother and business partner.<br />

Alongside my wife Trish, I manage the<br />

Bunbury store and regularly travel to all<br />

the Smales <strong>Jeweller</strong>s locations, especially<br />

Perth to oversee the Subiaco store and<br />

office operations.<br />

The business continues to celebrate<br />

craftmanship every day through<br />

watchmaking services and jewellery<br />

creations.<br />

Not only does Smales make custom designs,<br />

but also showcases a commitment to<br />

quality with exclusive brands such as Rolex,<br />

Mont Blanc, Grand Seiko and Hearts On<br />

Fire Diamonds, which are on display and<br />

available for purchase in the showrooms.<br />

Most recently, in collaboration with the<br />

West Australian Ballet, we have launched<br />

the Bridal Core Collection which celebrates<br />

the ancestry of the brand and the precision<br />

of ballet.<br />

I have overseen this collection, which has a<br />

signature blue sapphire embedded within<br />

the band of each ring, signifying the quality<br />

and craftmanship we strive to accomplish<br />

with each diamond creation.<br />

Another recent success was our Gold<br />

Nugget Collection, which alongside the<br />

Bridal Core Collection has ensured the<br />

Smales name stands the test of time in the<br />

jewellery industry.<br />

Our Gold Nugget Collection is exclusively<br />

sourced from local prospectors in the<br />

Goldfields area, known the Smales family for<br />

many years.<br />

1952<br />

After completing<br />

his watchmaking<br />

apprenticeship, Ron<br />

establishes a storefront<br />

in Kalgoorlie and six<br />

years later, the business<br />

moves to new premises at<br />

Hannan Street<br />

1976<br />

Ron retires, and the store<br />

is purchased by his son<br />

Ron Smales Jr<br />

1978<br />

New premises are<br />

purchased in Kalgoorlie,<br />

and a state-of-the-art<br />

jewellery store fit out is<br />

completed<br />

1989<br />

Ron Jr acquires acquires<br />

the Subiaco Prestige<br />

<strong>Jeweller</strong>y Store and reopens<br />

it as the second<br />

Smales <strong>Jeweller</strong>s location<br />

1990<br />

Ron’s brother Tony<br />

Smales purchases the<br />

Kalgoorlie store<br />

2003<br />

Smales <strong>Jeweller</strong>s<br />

expands into Western<br />

Australia’s second-largest<br />

city, opening a store in<br />

Bunbury; it also becomes<br />

the official and only<br />

Hearts On Fire diamond<br />

retailer in Western<br />

Australia<br />

2007<br />

Tony’s niece Leilani Pop-<br />

Markov and her husband<br />

Sacha join the company<br />

to operate the original<br />

Kalgoorlie store<br />

2016<br />

Smales <strong>Jeweller</strong>s<br />

continues its expansion,<br />

opening its fourth and<br />

fifth stores in Geraldton<br />

and Karratha<br />

Above: The Smales <strong>Jeweller</strong>s Subiaco store, which<br />

has been operating since 1989.<br />

The nuggets are brought into the Subiaco<br />

workshop where the jewellers create<br />

beautiful pieces combining them with<br />

South Sea pearls and/or diamonds.<br />

The most recent ‘face’ of Smales<br />

<strong>Jeweller</strong>s, Shanaya King, is also a<br />

Kalgoorlie local who prospected with her<br />

father when she was growing up; one of<br />

her most treasured possessions is a gold<br />

nugget given to her as a gift from her<br />

father when she was 16.<br />

Smales continues to create gold nugget<br />

pieces for their customers as a part of this<br />

heritage collection.<br />

We are proud of our heritage; we strive to<br />

make sure our goods are of the highest<br />

quality the customer can afford, and while<br />

we have a team of 37, we also do our<br />

best to make sure our staff hold similar<br />

mindsets and enjoy their work.<br />

The future is unpredictable, but the<br />

future of our business will always be to<br />

keep the integrity, quality and values of<br />

Smales <strong>Jeweller</strong>s intact.<br />

Succession means having someone to<br />

pass the business down to and that is the<br />

key to maintaining longevity; my niece<br />

Leilani and her partner have worked<br />

within the business since 2009 and<br />

continue the tradition of family within<br />

Smales <strong>Jeweller</strong>s.<br />

We always strive to deliver the best<br />

service, jewellery and watches while<br />

maintaining the family name.<br />

Read the full length interview<br />

on <strong>Jeweller</strong>magazine.com<br />

32 | <strong>September</strong> <strong>2021</strong>


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REVIEW<br />

Gems<br />

Unusual Opal Part I: Fire opal<br />

L to R: Neha Dani ring; Le Vian pendant; Chopard earrings<br />

Below: Lydia Courteille cuff; Tiffany & Co. ring<br />

Opal is famous for the incredible array<br />

of colours displayed, from vibrant reds –<br />

the most prized – to velvety purples and<br />

everything in between.<br />

This is caused by a unique optical<br />

phenomenon known as play-of-colour.<br />

With such incredible opal specimens here<br />

in our backyard, international varieties<br />

are often lesser known and less available.<br />

Fire opal rarely displays play-of-colour,<br />

yet it attracts collectors based on the<br />

body-colour of the stone itself – a primary<br />

distinction from the better-known types<br />

of opal.<br />

Opals with play-of-colour are termed<br />

precious opal, whereas those without are<br />

called common opal. Although fire opal<br />

may be either, the presence of play-ofcolour<br />

commands a higher price.<br />

Fire opal is the transparent to translucent<br />

variety of opal with a yellow, orange,<br />

or even ruby red body-colour, also<br />

known as ‘Mexican opal’ – derived<br />

from the hue and the most well-known<br />

locality of this material.<br />

The regions of Querétaro and Jalisco in<br />

Mexico are major producers of fire opal,<br />

though other regions include Michoacán,<br />

as well as Bemia in Madagascar,<br />

Kazakhstan, Turkey, Ethiopia, Java in<br />

Indonesia, and the US state of Oregon.<br />

The opal localities of Mexico were<br />

discovered accidentally by labourers<br />

around 1835.<br />

Organised mining efforts commenced<br />

circa 1870, although it is believed these<br />

deposits may have been known to the<br />

Mayan and Aztec people who used fire<br />

opal in art and ritualistic ceremonies,<br />

significantly extending the history of<br />

these gemstones.<br />

The vibrant hues are owed to the<br />

presence of particularly minute<br />

inclusions, coloured by iron.<br />

Given that play-of-colour is less<br />

prevalent, and these fire opals are<br />

admired for their body-colour, they are<br />

often faceted rather than just fashioned<br />

into the cabochon or freeform shapes<br />

commonly seen in other types of opal.<br />

Opal is often classified according to<br />

its geological setting, such as the<br />

sedimentary context for Queensland<br />

boulder opal.<br />

Unlike boulder opal, fire opal is volcanic<br />

with some degree of crystallinity – i.e.,<br />

some order to its structure.<br />

Generally, this variety can be up to 66<br />

million years old.<br />

Despite differences in appearance, fire<br />

opal is still hydrated silica – the same<br />

material as other opal – and so it must be<br />

treated delicately.<br />

Clean gently with a toothbrush in warm<br />

soapy water – avoid the ultrasonic. Be<br />

sure to also avoid heating and thermal<br />

shock as this can cause cracking and<br />

crazing in the stone and can even change<br />

the internal structure.<br />

Fire opal<br />

From the Latin opalus<br />

meaning “precious<br />

stone”, and fire, due to<br />

its flame-like colour<br />

Colour: Yellow to<br />

orange and red<br />

Found in: Mexico,<br />

Madagascar, Turkey,<br />

Kazakhstan, Ethiopia,<br />

Indonesia and the US<br />

Mohs Hardness: 5.5–6<br />

Class: Silicate<br />

Lustre: Subvitreous<br />

Formula: SiO 2<br />

.nH 2<br />

O<br />

Being a hydrated material, fire opal<br />

is not to be left in strong light for long<br />

periods of time; otherwise, the stone can<br />

dehydrate and crack.<br />

As with all kinds of opal, fire opal should<br />

be avoided for everyday rings and other<br />

jewellery that is highly exposed for<br />

extended periods of time.<br />

Treatments seen in this variety of<br />

opal include coatings and dyes; some<br />

examples have been known to leak dye<br />

when left immersed in water overnight.<br />

Synthetic opal is not uncommon, nor is it<br />

new in the world of gemstones, and this<br />

is no different for fire opal, which has<br />

synthetic options both with and without<br />

play-of-colour.<br />

A certain type of synthetic, known as<br />

Mexifire, is particularly close to its<br />

natural counterpart in its structure and<br />

its colouring mechanism (traces of iron).<br />

To the astute gemmologist, fine<br />

pinpoint inclusions throughout the<br />

synthetic material is likely to be one<br />

of the most helpful characteristics<br />

for identification.<br />

Mikaelah Egan FGAA Dip DT<br />

began her career in the industry at<br />

Diamonds of Distinction in 2015. She now<br />

balances her role as a gemmologist at<br />

Vault Valuations in Brisbane with studying<br />

geology at the University of Queensland.<br />

Visit instagram.com/mikaelah.egan<br />

<strong>September</strong> <strong>2021</strong> | 35


FEATURE<br />

White Metals<br />

ARABELLA RODEN explores how<br />

the white metals category is adapting<br />

to an unpredictable market, and<br />

what the future holds.<br />

Molten gold is poured. Image: SHUTTERSTOCK


WHITE METALS FEATURE | The White Side<br />

Facing Page (L to R):<br />

Roberto Coin, Cartier, Georg<br />

Jensen; Bulgari; Fope<br />

RECENT STATS<br />

White Metal<br />

Trends<br />

A<br />

s a jewellery category, white metals<br />

– platinum, palladium, silver, and<br />

white gold – are impacted not only by<br />

consumer demand, but by a complex interplay of<br />

macroeconomic factors.<br />

The disruption of the COVID-19 pandemic to global<br />

supply chains – particularly in the mining sector – as well<br />

as investor confidence and lowered demand from the<br />

automotive sector, have all led to some volatility in the<br />

white metals market.<br />

“Having suffered steep falls in early 2020 as result of<br />

the global COVID-19 outbreak, precious metal prices<br />

rebounded strongly in the second half of 2020 as the<br />

pandemic triggered stockpiling by investors looking to<br />

protect their wealth,” explains Richard Hayes, CEO<br />

The Perth Mint.<br />

“This, alongside supply deficits, pushed gold prices up<br />

by 25 per cent last year, while silver rose 47 per cent, and<br />

platinum and palladium by 11 per cent and 23 per cent,<br />

respectively.”<br />

Hayes notes that precious metal prices “again trended<br />

higher in early <strong>2021</strong> on a more optimistic economic<br />

footing, before retracing markedly” as a result of economic<br />

policy changes and the Delta variant of COVID-19.<br />

White metal jewellery demand has followed a similar<br />

pattern, with the initial shock of the pandemic waning<br />

around July of 2020 before a sustained period of growth,<br />

later interrupted in mid-<strong>2021</strong> by the Delta variant and<br />

associated lockdowns across NSW and Victoria.<br />

Still, as a diverse category comprising premium priced<br />

platinum, palladium and white gold and affordable<br />

silver, white metals have widespread appeal as well as a<br />

competitive advantage in the high-value bridal sector –<br />

though this too has experienced recurrent disruption as a<br />

result of the pandemic.<br />

Platinum progress<br />

Platinum prices reached a five-year high of $US1,266<br />

per ounce in February <strong>2021</strong>, rising steadily following a<br />

plummet in March 2020 to the lowest level since 2003.<br />

Still, platinum prices remain significantly below that of<br />

gold, palladium, and rhodium – all components in the<br />

manufacture of white gold jewellery.<br />

Rhodium in particular has experienced a “phenomenal<br />

price movement” since January 2019, according to UK<br />

resources firm Johnson Matthey, rising from $US2,300<br />

to $US29,200 per ounce in March <strong>2021</strong>; since May, it has<br />

plateaued at approximately $US15,000 per ounce.<br />

Chris Botha, innovation division manager at Palloys,<br />

observes, “Platinum pricing has had a continuous run<br />

for some time, and while it has slowed a little, jewellers<br />

will be weighing up the additional labour costs of<br />

$29,200<br />

rhodium price per<br />

ounce ($US) in<br />

March <strong>2021</strong>, a record<br />

high and increase of<br />

71% in three months<br />

Business Line<br />

22%<br />

increase in demand<br />

for platinum from<br />

the jewellery sector,<br />

Q1 <strong>2021</strong>, compared<br />

with 2020<br />

World Platinum<br />

Investment Council<br />

20%<br />

of the world's<br />

silver demand<br />

comes from<br />

jewellery<br />

fabrication<br />

Metals Focus<br />

223tn<br />

forecast platinum<br />

supply in <strong>2021</strong>, an<br />

increase of 16%<br />

World Platinum<br />

Investment Council<br />

$2,519<br />

palladium price<br />

per ounce ($US)<br />

in May <strong>2021</strong>, an<br />

all-time peak<br />

Kitco<br />

working in platinum against rapidly having to purchase<br />

rhodium plating.<br />

“The rhodium market is very volatile and has seen steep<br />

increases in pricing over the last 18 months.”<br />

Like palladium, South Africa is the largest producer<br />

of rhodium. It accounts for 80 to 90 per cent of total<br />

global production, which was significantly reduced by<br />

temporary mine closures last year, with the overall<br />

‘rhodium deficit’ – the gulf between supply and<br />

demand – more than doubling.<br />

The unprecedented upward pressure on rhodium<br />

prices is largely from the automotive sector, with<br />

manufacturers in China and Europe utilising the metal<br />

to reduce emissions.<br />

The automotive sector has also buoyed platinum prices,<br />

in tandem with jewellery demand and disrupted supplies,<br />

Hayes notes.<br />

The unprecedented upward<br />

pressure on rhodium<br />

prices is largely from the<br />

automotive sector, with<br />

manufacturers in China and<br />

Europe utilising the metal<br />

to reduce emissions"<br />

According to the World Platinum Investment Council,<br />

jewellery demand for the metal recovered by 22 per cent<br />

in the first quarter of <strong>2021</strong> when compared with the same<br />

period in 2020, driven by China and the US.<br />

In April <strong>2021</strong>, the Council predicted the overall platinum<br />

jewellery market would recover the ground lost in 2020,<br />

rising 13 per cent.<br />

Industry organisation Platinum Guild International (PGI)<br />

tracks demand for platinum jewellery across a number of<br />

retail chains in the key markets of the US, China, Japan,<br />

and India.<br />

Commenting on its first-quarter report, Huw Daniel, CEO<br />

PGI, noted that while jewellery demand could “slow in<br />

some markets as subsequent waves of COVID-19 cloud<br />

the outlook”, there had been “a renewed enthusiasm for<br />

platinum” within the jewellery industry.<br />

“<strong>Jeweller</strong>s are increasingly engaging with this precious<br />

metal, which has been effectively marketed as a metal of<br />

meaning and become important as consumers look for<br />

ways to symbolise and mark occasions in restricted and<br />

unprecedented times,” Daniel said.<br />

Indeed, platinum sales across PGI's key markets were<br />

driven by targeted campaigns promoting branded<br />

platinum collections. In India, historically a far stronger<br />

<strong>September</strong> <strong>2021</strong> | 37


The White Side | WHITE METALS FEATURE<br />

market for yellow gold, retailers who took part in PGI’s ‘Platinum<br />

Days of Love’ campaign reported a 17 per cent increase in platinum<br />

sales in the first quarter of <strong>2021</strong>.<br />

Locally, Greville Ingham, national sales manager at Peter W Beck,<br />

observes, “The family of white metals has seen popularity recently<br />

and we have especially noted a great demand for platinum jewellery,<br />

in both men’s and ladies’ wedding rings.”<br />

Ingham noted two factors increasing the demand for platinum:<br />

“Platinum is perceived as a rare and more exotic precious metal, so<br />

the current relative affordability has made it accessible to those who<br />

may not have previously considered it,” he explains.<br />

“The second factor drawing customers to platinum is the qualities of<br />

high purity – platinum being a hypoallergenic metal and a naturally<br />

strong white colour without the need for plating.”<br />

As the most affordable member of the<br />

precious white metal category, silver has<br />

consistently maintained a stable level of<br />

demand in the market"<br />

Ingham adds, “In terms of the white metal market, the relative price<br />

difference of platinum to white gold has lately made platinum a<br />

popular choice. We see that this pricing will be an influencing factor<br />

for some time.”<br />

At Chemgold, director Darren Sher has observed “a slight increase<br />

in 9-carat and 14-carat white gold as well as platinum being ordered<br />

– this of course due to the higher palladium cost pushing up the cost<br />

of 18-carat white gold.”<br />

Sher adds, “Overall, the price increase in palladium has resulted in<br />

customers utilising lower-carat white gold as well as platinum quite<br />

often; however, having said that, the majority of our clients prefer<br />

18-carat white gold or platinum for the white metal jewellery.”<br />

Showing the strength of white metal demand, Botha told <strong>Jeweller</strong>,<br />

“Our sales data shows the spread of sales in 18-carat golds to be<br />

50 per cent yellow gold, 35 per cent white, and the balance rose gold.<br />

"However, by weight value if we add platinum – which nearly<br />

matches yellow gold for sales – definitively, the white metals are<br />

selling better.”<br />

In refining terms, the figures echoed the sales data with Botha<br />

noting “increases in white gold and platinum refining, with sporadic<br />

large bursts of platinum refining, as jewellers<br />

opt to save more of the white metal until<br />

there is enough for a larger refining job.”<br />

He added, “Our sweep<br />

and four-metal recovery<br />

services have seen a<br />

significant increase<br />

as jewellers want to<br />

recover the palladium and<br />

platinum from their small<br />

lemel and sweeps.”<br />

Proudly distributed by<br />

At Chemgold, demand for both<br />

two-metal (gold and silver)<br />

and four-metal (gold, silver,<br />

palladium, and platinum) and<br />

platinum refining had remained<br />

stable when compared to<br />

previous years.<br />

Nomination<br />

02 9417 0177 | www.dgau.com.au


A L L O Y S<br />

P R O M<br />

I S E<br />

P<br />

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B E A T<br />

G U A R A N T E E


The White Side | WHITE METALS FEATURE<br />

STILE COLLECTION<br />

R8873642001<br />

Yellow Gold Chronograph<br />

100m Water Resistant<br />

AUD $649<br />

R8871642001<br />

Rose Gold Chronograph<br />

100m Water Resistant<br />

AUD $589<br />

Meanwhile, the Peter W Beck precious metal refining division is now<br />

refining more platinum and palladium “than ever”.<br />

“We have certainly seen those wishing to refine here in Australia<br />

directing these metals to us – platinum and palladium require<br />

specialist knowledge and techniques to recover,” says Ingham.<br />

Silver in the spotlight<br />

L to R: Van Cleef & Arpels; Thomas Sabo<br />

As the most affordable member of the precious white metal<br />

category, silver has consistently maintained a stable level of demand<br />

in the market.<br />

Between 2010 and 2019, the year-on-year change in demand for<br />

silver jewellery averaged 5 per cent, compared with 9 per cent for<br />

gold jewellery, according to the World Silver Survey <strong>2021</strong> report<br />

published by The Silver Institute and Metals Focus, an independent<br />

precious metals research firm.<br />

Worldwide, silver jewellery fabrication accounts for approximately<br />

one-fifth of worldwide demand for the metal and the Silver Five<br />

Year Forecasting Quarterly report, also authored by Metals Focus,<br />

predicts this will rise to a quarter of total demand by the mid-2020s.<br />

From a manufacturing perspective, Botha says, “There has always<br />

been high demand for silver, and as a more affordable metal, it saw<br />

big growth in Australia [in the past year] due to many manufacturers<br />

bringing that production back on-shore to offset the shipping issues<br />

the world has endured since the onset of the pandemic.”<br />

At Palloys, “scientific silver” – used for industrial, research, and<br />

medical applications – also led to an increase in demand for “highend”<br />

refining services.<br />

The Perth Mint’s Hayes observed a surge in demand for refined<br />

silver “investment products”, such as bullion, in the first and<br />

second quarters of <strong>2021</strong> due to a rally in the silver price – though he<br />

notes that the price per ounce has since “suffered several bouts of<br />

weakness in recent months”.<br />

“Silver has been struggling to regain momentum, as growing<br />

concerns over the highly contagious Delta variant sparked a sell-off<br />

across industrial commodities,” he adds.<br />

www.westendcollection.com.au<br />

info@westendcollection.com.au<br />

Ph: 03 9553 3777<br />

Silver prices remain relatively high from a historical perspective; it


The White Side | WHITE METALS FEATURE<br />

PRECIOUS METAL PRICES 2016 – <strong>2021</strong><br />

CHART A: PALLADIUM<br />

CHART B: PLATINUM<br />

2,500<br />

2,000<br />

PALLADIUM USD/oz 2,346.00<br />

PLATINUM USD/oz 1,006.00<br />

1,200<br />

1,100<br />

1,000<br />

900<br />

1,500<br />

800<br />

1,000<br />

500<br />

700<br />

600<br />

500<br />

2017 Jul 2018 Jul 2019 Jul 2020 Jul <strong>2021</strong> Jul<br />

2017 Jul 2018 Jul 2019 Jul 2020 Jul <strong>2021</strong> Jul<br />

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020<br />

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020<br />

CHART C: SILVER<br />

CHART D: RHODIUM<br />

SILVER USD/oz 23.98<br />

RHODIUM USD/oz 16,400.00<br />

25,000<br />

25<br />

20,000<br />

20<br />

15,000<br />

10,000<br />

15<br />

5,000<br />

10<br />

0<br />

Jul Jul Jul Jul<br />

2017 2018 2019 2020 <strong>2021</strong> Jul<br />

2017 Jul 2018 Jul 2019 Jul 2020 Jul <strong>2021</strong> Jul<br />

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020<br />

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020<br />

Source: Kitco. All prices in $US per ounce<br />

FIND US ON INSTAGRAM<br />

MILLENNIUM_CHAIN<br />

Australian leading wholesaler, specialising in manufacturing<br />

9ct and 18ct yellow gold, rose gold and white gold.<br />

Machine made and hand made, any kind, chains and bracelets,<br />

bangles and findings. Suppliers to retailers and wholesalers.<br />

MILLENNIUM CHAIN<br />

P: 03 9650 5955 | E: sales@millenniumchain.com.au<br />

www.millenniumchain.com.au


CHART E: SILVER & ALTERNATIVE METALS SALES – JAN-JUL <strong>2021</strong><br />

% increase (Year on Year) % increase (vs 2019)<br />

60<br />

40<br />

20<br />

0<br />

-20<br />

Jan '21 Feb '21 Mar '21 Apr '21 May '21 Jun '21 Jul '21<br />

Source: Retail Edge Consultants.<br />

Reflects increase and decrease<br />

of sales in dollar terms. July<br />

figures impacted by lockdowns<br />

in NSW and Victoria<br />

IP3556N-9YG<br />

The Perth Mint<br />

IP82-G014-9Y<br />

increased 137 per cent during 2020, compared with gold’s 38 per cent.<br />

Yet from a jewellery perspective, consumers Western markets such as<br />

Australia tend not to be influenced as strongly by fluctuations in the<br />

silver price – particularly when compared with gold.<br />

Silver jewellery also enjoy other benefits; the World Silver Survey <strong>2021</strong><br />

notes that the shift toward e-commerce is generally “positive as silver<br />

jewellery’s price points work well in an online space”.<br />

This shift was pronounced in Australia over the course of the pandemic,<br />

with Australia Post’s <strong>2021</strong> Inside Australian Online Shopping report<br />

noting that e-commerce spending increased by 57 per cent in the 12<br />

months to 31 December 2020.<br />

Potentially indicating strong consumer demand for silver jewellery are<br />

recent financial results announced by Pandora, the world’s largest<br />

jewellery producer by volume.<br />

The company refers to 925 sterling silver as its ‘signature metal’<br />

and utilises an estimated 340 tonnes of silver per year across its<br />

product lines.<br />

Pandora recently upgraded its forecast for the year, following promising<br />

financial results and citing a robust recovery in the US which is also the<br />

largest market for sterling silver jewellery by value.<br />

In the Australian market, the silver and alternative metals jewellery<br />

category has seen double-digit increases in sales dollars every month<br />

from January to June this year when compared with 2020, according to<br />

data from Retail Edge Consultants.<br />

Even taking into account the impact of the extended COVID-19<br />

lockdowns across Victoria and NSW in July, Retail Edge’s data – drawn<br />

from more than 400 stores – indicated sales in this category were still<br />

6 per cent higher than in July 2019.<br />

However, the ongoing and unpredictable COVID-19 pandemic is likely to<br />

continue to weigh on both supply and demand for silver jewellery, and<br />

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The White Side | WHITE METALS FEATURE<br />

SPOTLIGHT ON<br />

MIXING IT UP<br />

Left: Cobalt, used in<br />

a number of white<br />

metal alloys including<br />

platinum alloys.<br />

Below: Working at the<br />

Palloys Fabricated<br />

Metals Division.<br />

A notable trend in the white metals market has been an emphasis on alloys and<br />

mixed designs in order to manage costs.<br />

“We have noticed that a lot more two-tone designs are being made, utilising rose<br />

and yellow gold for shanks and accents to lower the cost. However, the setting is<br />

always in a white alloy,” Chemgold’s Darren Sher tells <strong>Jeweller</strong>.<br />

He adds, “With respect to this we have also observed a minor trend in mixed carat,<br />

such as an 18-carat yellow or rose gold shank with a 9 or 14-carat white gold setting,<br />

again to reduce cost for the customer but keeping a similar effect.”<br />

At Palloys, Botha observes, “The Fabricated Metals division of Palloys has always<br />

had a very large assortment of alloys on offer to a typically niche market, however,<br />

the introduction of the Alloy Properties pages on the new website, located under the<br />

Resources tab, have stirred up great interest in these ‘old-but-new-again’ alloys<br />

like palladium silver.”<br />

Botha also notes an increase in demand for Argentium Pro 935, which combines<br />

93.5 per cent silver with germanium to produce a low-maintenance, non-tarnish<br />

silver alloy that does not display firescale during production.<br />

At Chemgold, the 18-carat white gold 18W132 alloy “continues to be very popular”<br />

given higher palladium prices.<br />

“With 13.2 per cent PGMs [platinum group metals] it is a very good alloy and on<br />

average 10 per cent less expensive than the traditional 18-carat white gold with 15<br />

per cent palladium,” Sher explains.<br />

“The metal is still premium white, hard wearing and great for polishing,” he adds.<br />

Ingham predicts that consumer tastes may also<br />

shift away from white metals in general.<br />

“We have seen white metals enjoying popularity<br />

over the last three to five years, but in the cyclical<br />

nature of the market, we are predicting to again<br />

see popularity of yellow gold jewellery emerging<br />

in due course,” he tells <strong>Jeweller</strong>.<br />

Generational appeal<br />

While yellow gold has seen an undeniable<br />

resurgence in the market in recent years,<br />

some industry commentators have noted<br />

a generational divide of demand between<br />

Millennials and Gen Z, the latter of which<br />

appears to prefer white metals.<br />

In a 2019 survey of 18,000 consumers across six<br />

international markets, the World Gold Council<br />

found that “gold jewellery resonates less well<br />

with younger consumers, most notably the 18-22<br />

Gen Zs.<br />

"The connection to gold’s emotional heritage is<br />

weaker among this group.”<br />

Intriguingly, this trend was particularly<br />

pronounced in the Chinese market, with the<br />

report noting, “They are considerably less likely<br />

than Gen Z consumers in other markets to have<br />

bought gold jewellery in the last year – 18 per<br />

cent compared with 26 per cent globally.<br />

"And only 31 per cent of them agree that wearing<br />

gold helps them to fit in with their friends,<br />

compared with 46 per cent at a global level.”<br />

In contrast, Millennial attitudes toward gold<br />

jewellery were “not significantly different to those<br />

of older generations”.<br />

While yellow gold has seen<br />

an undeniable resurgence in<br />

the market in recent years,<br />

some industry commentators<br />

have noted a generational<br />

divide of demand between<br />

Millennials and Gen Z, the<br />

latter of which appears to<br />

prefer white metals"<br />

Research conducted by Platinum Guild<br />

International found that younger Chinese<br />

consumers strongly preferred platinum jewellery.<br />

“In China, platinum is most popular among Gen<br />

Z and Millennials aged between 18 and 45 – the<br />

future driver of jewellery consumption,” the<br />

report noted.<br />

“Younger Chinese consumers prefer platinum<br />

in jewellery not only to signify relationship<br />

milestones such as engagement rings, wedding<br />

bands and anniversary bands, but in a range of<br />

non-bridal types of jewellery, such as fashion<br />

rings, necklaces, earrings and chains.”<br />

These findings were echoed in De Beers’ 2018<br />

Diamond Insight Report, entitled Millennials<br />

and Gen Z: Capturing the Opportunity, which<br />

noted that 96 per cent of bridal rings acquired by<br />

Chinese women contained platinum, while just<br />

4 per cent contained gold.<br />

Worldwide, white metals still dominate the bridal<br />

market. In the US, white gold remained the most<br />

popular choice for engagement rings at 45 per<br />

cent, followed by silver at 19 per cent, according<br />

to the De Beers report.<br />

As Gen Z – currently aged between 11 and 25 –<br />

further ages into the engagement and marriage<br />

bracket, it is likely that white metals will continue<br />

to enjoy a competitive edge in the bridal category.<br />

With thousands of weddings delayed by<br />

lockdowns across Australia, jewellers may be<br />

well-placed to take advantage with white metal<br />

offerings designed to cater to these consumers<br />

in the future.<br />

In the meantime, the affordability of silver and<br />

its resilience and consistency add to the overall<br />

strength of the white metals category.<br />

44 | <strong>September</strong> <strong>2021</strong>


L to R: David Yurman; Fope<br />

Chris Botha<br />

Palloys<br />

“Our sales data shows<br />

the spread of sales in<br />

18-carat golds to be 50<br />

per cent yellow gold,<br />

35 per cent white, and<br />

the balance rose gold.<br />

However, by weight<br />

value if we add platinum,<br />

the white metals are<br />

selling better.”<br />

IN SUMM ARY<br />

Key Points<br />

Rhodium<br />

rollercoaster<br />

The volatile<br />

rhodium market<br />

has seen prices<br />

surge to dizzying<br />

highs this year<br />

Carat drop<br />

Greville Ingham<br />

Peter W Beck<br />

Darren Sher<br />

Chemgold<br />

“The family of white<br />

metals has seen<br />

popularity recently<br />

and we have especially<br />

noted a great demand<br />

for platinum jewellery,<br />

in both men’s and<br />

ladies’ wedding rings.”<br />

"Overall, the price<br />

increase in palladium has<br />

resulted in customers<br />

utilising lower-carat<br />

white gold as well as<br />

platinum quite often;<br />

however, having said that,<br />

the majority of our clients<br />

prefer 18-carat white gold<br />

or platinum for the<br />

white metal jewellery."<br />

Due to high<br />

palladium prices,<br />

some jewellers<br />

are opting for<br />

lower-carat white<br />

gold alloys or<br />

mixed-carat<br />

designs<br />

Stable silver<br />

Silver demand<br />

remains<br />

consistent and<br />

is relatively<br />

unaffected by<br />

price changes<br />

Platinum<br />

push<br />

The pure, bright<br />

metal is enjoying<br />

robust demand<br />

locally and<br />

internationally


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46 | <strong>September</strong> <strong>2021</strong>


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<strong>September</strong> <strong>2021</strong> | 47


DIAMOND FEATURE<br />

Making the Cut<br />

In the quest for ever-more beautiful and brilliant<br />

diamonds, creativity and innovation abound in the<br />

world of diamond cuts, writes ARABELLA RODEN.


DIAMOND FEATURE | Making the Cut<br />

Lili Diamonds<br />

INSIGHTS<br />

By The<br />

Numbers<br />

Nicole Mera ring<br />

featuring Rose cut and<br />

Round Brilliant white<br />

diamonds and cushioncut<br />

yellow diamond<br />

Of the famous four ‘C’s of diamond<br />

assessment, none is more important<br />

than cut. As the only element of a<br />

diamond’s appearance that can be controlled<br />

by human hands, the cut has the power to make<br />

– or break – a stone’s value.<br />

“Cut is the heart of the diamond,” says Maulin Shah,<br />

director of World Shiner.<br />

“It is the most important characteristic. If the cut isn't<br />

nice – the stone could be D colour and internally flawless,<br />

but it won't sparkle.”<br />

Alongside brilliance and fire, cut also impacts the other<br />

‘Cs’ – it can both saturate and soften a stone’s colour,<br />

remove inclusions to improve clarity, and make a stone<br />

appear larger than its carat weight would otherwise imply.<br />

While the vast majority of the world’s diamonds are cut as<br />

round brilliants, master cutters and designers worldwide<br />

have explored new ways to differentiate stones, enhance<br />

a diamond’s natural beauty to its greatest potential, and<br />

support the creativity of jewellers.<br />

The history of branded or ‘proprietary’ cuts – those that<br />

were trademarked or even patented – can be traced back<br />

to one of the most venerable diamond cutting houses,<br />

with Joseph Asscher, co-founder of Royal Asscher, who<br />

created the Asscher cut in 1902.<br />

While reports vary over whether Asscher patented the<br />

cut – the Gemological Institute of America’s journal, Gems<br />

& Gemology, asserts that he did – it has since become a<br />

generic cut; an updated version, the Royal Asscher cut,<br />

was patented in 2002.<br />

Similarly, the 66-facet Radiant cut – invented by New<br />

York cutter Henry Grossbard in 1977 – was once a<br />

patented design and has since become standard industry<br />

terminology, as has the Princess cut, which was developed<br />

by Bez Ambar and Israel Itzkowitz in 1979, strongly<br />

influenced by Basil Watermeyer’s patented Barion cut<br />

and Arpad Nagy’s Profile cut.<br />

72%<br />

approximate<br />

proportion<br />

of GIA round<br />

brilliants graded<br />

‘Excellent’ cut<br />

58<br />

number of facets<br />

on a round<br />

brilliant diamond<br />

2006<br />

year the GIA<br />

began issuing<br />

cut grades on<br />

diamond reports<br />

2018<br />

year the GIA<br />

launched its<br />

Proprietary Cut<br />

Program<br />

Garry Holloway – director of Holloway Diamonds and<br />

inventor of the IdealScope, Holloway Cut Advisor (HCA)<br />

and Angular Spectrum Evaluation Tool (ASET) – calls<br />

the Asscher, Radiant, and Princess cuts “the only three<br />

successful branded cuts”, though he laments, “The GIA<br />

have never used these names and this provides confusion<br />

for retail salespeople and consumers.”<br />

Branded breakthrough<br />

In the late 1990s and early 2000s, an influx of proprietary<br />

cuts and shapes entered the market, largely driven by<br />

“radical changes in the diamond pipeline, widespread<br />

reliance on standardised price lists, advances in diamond<br />

cutting technology, and falling profit margins throughout the<br />

industry”, according to Gems & Gemology.<br />

Many did not withstand the test of time.<br />

“The branded cuts were largely developed as ways to<br />

improve yields or charge more for a few extra facets,”<br />

Holloway says. “The yield-increasing diamonds were the<br />

worst, essentially turning an 80-point Ideal cut round<br />

diamond hiding inside a rough into a 1-carat disaster.<br />

“Human vision – when confronted with miniscule flashes from<br />

a 100-facet half-carat diamond – sees ‘mush’,” he explains.<br />

“Side by side [with classic cut diamonds], they just didn’t<br />

stack up.”<br />

And when it comes to selling a diamond, sparkle is, of<br />

course, key. “Maximum scintillation and fire is what<br />

customers want to see,” says Cindy Eidukevicius-Jones,<br />

diamond trainer and marketing and merchandise manager<br />

at the Nationwide <strong>Jeweller</strong>s buying group.<br />

“A diamond needs to show how lively and bright it<br />

can become.”<br />

However, a select few proprietary cuts managed to<br />

provide enough of an advantage to jewellers and appeal to<br />

consumers to maintain an ongoing presence in the market.<br />

Russian manufacturer Kristall Smolensk’s 89-facet,<br />

octagonal-shaped Phoenix cut, developed in the ’90s,<br />

» CONTINUED PAGE 52<br />

<strong>September</strong> <strong>2021</strong> | 49


Making the Cut | DIAMOND FEATURE<br />

Golden Jubilee<br />

Diamond,<br />

545.65 carats<br />

A selection of diamond cuts<br />

developed by Sir Gabriel<br />

Tolkowsky from the Flower Cuts<br />

and Sea Shell Cuts collections<br />

Centenary<br />

Diamond,<br />

273.85 carats<br />

THE FATHER of MODERN BRILLIANCE A moment with Sir Gabriel Tolkowsky<br />

Over a career spanning more than six<br />

decades, Sir Gabriel ‘Gabi’ Tolkowsky’s name<br />

has become synonymous with the art of<br />

diamond cutting.<br />

Born in Tel Aviv in 1939 to a family of diamond<br />

cutters – including his uncle Marcel, credited<br />

as the inventor of the round brilliant cut – Sir<br />

Gabi was trained by his father Jean and at<br />

the age of 16, was tasked with polishing a<br />

100-carat emerald-cut diamond.<br />

In 1975, he began working with De Beers for<br />

whom he developed the Flower Cuts collection.<br />

In the 1980s, Sir Gabi and his son Jean<br />

Paul – also a master cutter – were secretly<br />

commissioned to cut the Unnamed Brown,<br />

a 755.5-carat brown stone unearthed at the<br />

Premier Mine in South Africa.<br />

An underground workshop, free of vibration,<br />

was constructed to ensure no damage came<br />

to the stone as it was meticulously whittled<br />

into a 545.65-carat Golden Jubilee Diamond,<br />

which remains the largest cut and faceted<br />

diamond in the world – outweighing even the<br />

Cullinan I, which had held the title since 1908.<br />

The stone was completed in 1990 and later<br />

became part of the Thai Crown Jewels.<br />

When De Beers unearthed a 599-carat rough<br />

in South Africa in 1986, Sir Gabi was also<br />

selected to lead an expert team to transform<br />

it into what would become the world’s largest<br />

D Flawless stone, The Centenary Diamond.<br />

The rough was so fragile and so valuable, that<br />

no heat or laser could be used in the initial<br />

cutting process.<br />

Years later, Sir Gabi recalled, “I will never<br />

forget how I worked on the Centenary for<br />

154 working days – an entire working year<br />

– carving and carving away with my bare<br />

hands. I removed more than 50 carats before<br />

we started polishing.”<br />

The finished diamond – weighing 273.85 carats<br />

with a modified heart shape – was completed<br />

in February 1991 and unveiled in May that year,<br />

insured for more than $US100 million.<br />

Drawing from techniques developed during<br />

the polishing of the Centenary and the Golden<br />

Jubilee Diamonds and from the De Beers<br />

Flower Cuts, Sir Gabi created the Gabrielle<br />

cut, known as the first ‘triple brilliant’ and<br />

which was later sold throughout Europe,<br />

Asia, and the US.<br />

Founding his namesake company Gabi S<br />

Tolkowksy & Sons in Antwerp, Belgium, in 1995,<br />

he later created the Sea Shells Cuts collection.<br />

In 2003, he was presented with the title<br />

Chevalier de L'Ordre du Roi Leopold II<br />

(Knight of the Order of King Leopold II) for his<br />

services to the diamond industry.<br />

Here, Sir Gabi discusses his experiences<br />

and legacy as the world’s foremost master<br />

diamond cutter.<br />

What was it like to grow up in a family with<br />

such a strong connection to diamonds and<br />

diamond cutting?<br />

GT: I was the sixth generation, learning cutting<br />

and polishing from my father Jean Tolkowsky,<br />

who cut and polished as a young boy of 10 years<br />

old together with his cousin Marcel Tolkowsky,<br />

learning from their fathers and uncles. So it<br />

was natural to attract my own wish to become a<br />

diamond cleaver, cutter and polisher.<br />

What are your fondest memories of your<br />

career in the diamond industry?<br />

GT: Having participated in the planning and<br />

creations of the Flower Cuts, the Sea Shells<br />

Cuts, and others, and the Centenary Diamond<br />

and Golden Jubilee.<br />

You were responsible for cutting the largest<br />

faceted diamond in history, the Golden<br />

Jubilee. How did this come about and what<br />

did this process involve?<br />

GT: Without having a team of 15 expert<br />

scientists, technicians, security guards and<br />

master diamond cutters that communicated<br />

daily with me during three long years, I<br />

would have never been able to achieve the<br />

uniqueness of such a creation.<br />

Together we realised that every single<br />

diamond is effectively an individual that will<br />

attract every human’s senses; each one of<br />

them is a unique beauty.<br />

As it is said, “Beauty is altogether in the eye of<br />

the beholder.” This, without any doubt, was and<br />

still is the basic reason for humans to continue<br />

to manufacture and deal with diamonds.<br />

How has diamond cutting evolved over time,<br />

both as an art and commercially?<br />

GT: No matter what the position is of humans<br />

that are involved in transforming a rough<br />

diamond into a polished one, they are making<br />

art that allows them also to be commercially<br />

busy if they wish.<br />

They are all part of a unique artistic movement.<br />

Where is the centre of innovation, today, in<br />

terms of diamond cutting?<br />

GT: Without any doubt, due to the evolutionary<br />

period that we are witnessing, centres of<br />

innovation do exist and will continue to<br />

develop in various parts of the world.<br />

This is because approaching beauty is a<br />

normal human evolution; it allows people<br />

– men and women – to express themselves<br />

according to their cultural environment.<br />

As a matter of fact, beauty is not only an<br />

artistic reaction, but also a way to wish, hope<br />

and dream – beauty is a haven of peace!<br />

Without any doubt, it is my wish to continue<br />

the legacy of the importance of beauty by my<br />

children and grandchildren.<br />

50 | <strong>September</strong> <strong>2021</strong>


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Making the Cut | DIAMOND FEATURE<br />

THE TIME-TESTED CL A S SICS<br />

Traditional Diamond Shapes<br />

Round Brilliant<br />

58 Facets<br />

Oval<br />

58 Facets<br />

Trillion / Trilliant<br />

31 Facets (Accent) or<br />

50 Facets (Solitaire)<br />

Cushion<br />

58 Facets<br />

Pear<br />

58 Facets<br />

Rose Cut<br />

3 to 24 Facets<br />

Princess<br />

57 Facets<br />

Marquise<br />

57 Facets<br />

Old Mine Cut<br />

58 Facets<br />

Radiant<br />

70 Facets<br />

Asscher<br />

72 Facets<br />

Old European Cut<br />

58 Facets<br />

Emerald<br />

57 Facets<br />

Heart<br />

57 Facets<br />

Baguette<br />

14 Facets<br />

is still available today, as is the Dream cut – a modified<br />

square cut patented in 2002 – from US manufacturer<br />

Hearts On Fire, which is now part of Chow Tai Fook<br />

<strong>Jeweller</strong>y Group.<br />

Lili Diamonds’ Crisscut and Lily cut, released to the market<br />

in 1996, are also still available and the company has since<br />

developed four more internationally patented designs:<br />

Crisscut Cushion, Orchidea, Wonder and the Meteor, a<br />

decagonal-shaped diamond with 71 facets, in 2010.<br />

Speaking to <strong>Jeweller</strong> in 2018, Dotan Siman-Tov, managing<br />

director Lili Diamonds, said, “There are several other<br />

successful patent diamonds other than Lili Diamonds<br />

around the world, but many suppliers found that it’s one<br />

thing to invent it [a new cut] and another thing to market it<br />

and that’s not easy. There is a story to build for each stone.”<br />

Siman-Tov believed the problem was a lack of<br />

differentiation: “The new cuts were not dramatically<br />

different to the average consumer, whereas our cuts<br />

are different because, for example, we have the Lily Cut<br />

and Orchidea that are flower shapes and the Crisscut and<br />

the Crisscut Cushion are different facets than, let’s say, the<br />

regular emerald or regular cushion.”<br />

Patented cuts comprised approximately 60 per cent of Lili<br />

Diamonds’ sales in 2018, commanding price premiums<br />

and manufactured on larger stones of five to 10 carats.<br />

Indeed, Holloway notes that cuts incorporating extra facets<br />

work best on stones “two to 10 times larger than what is<br />

usually produced".<br />

The year 2018 also marked the patent of eight diamonds<br />

marketed as the ‘world’s brightest’: the Sirius Star 80<br />

Round, Sirius Star 100 Round, Sirius Star Cushion, Sirius<br />

Star Cushion 100, Sirius Star Square, Sirius Star Octagon,<br />

Sirius Star 88 Round and Sirius Star Oval.<br />

Developed by master cutter Mike Botha and licensed by<br />

Dharmanandan Diamonds, the cuts were marketed to<br />

offer “additional light performance compared to a round<br />

brilliant cut and address the retailer’s issue of shrinking<br />

profit margins.”<br />

Garry Holloway<br />

Holloway Diamonds<br />

"A diamond can have an<br />

Excellent cut grade – or<br />

even top performance with<br />

my Holloway Cut Advisor – but<br />

it can still be as dull as<br />

dishwater, In theory, a black<br />

diamond could receive a<br />

XXX cut grade."<br />

Sir Gabriel Tolkowsky<br />

Tolkowsky<br />

"'Beauty is altogether in the eye<br />

of the beholder.' This, without<br />

any doubt, was and still is the<br />

basic reason for humans to<br />

continue to manufacture and<br />

deal with diamonds."<br />

Cindy Eidukevicius-Jones<br />

Nationwide <strong>Jeweller</strong>s<br />

"Maximum scintillation<br />

and fire is what customers<br />

want to see. A diamond<br />

needs to show how lively and<br />

bright it can become."<br />

In particular, the Sirius Star 80 was said to feature greater<br />

scintillation and increased light return, improved brilliance<br />

and higher visual appeal than various other round cuts.<br />

Its 80 inclined facets include an eight-pointed star pattern<br />

in the pavilion with 100 per cent light return while the<br />

Sirius Star 100 features a 10-pointed version.<br />

Botha said at the time, “This is a tremendous milestone<br />

for the Sirius Star brand as Dharmanandan has the<br />

depth of expertise and global reach to carry the brand in<br />

adequate inventory in all the sizes and clarity necessary<br />

for successful distribution.”<br />

That same year, the GIA established a Proprietary<br />

Cut Program which includes branded cut names and<br />

descriptions on its diamond reports.<br />

Back to basics<br />

Of course, the vast majority of jewellers are well aware of<br />

the power of cut – Shah notes that the Australian market<br />

is particularly well-educated among World Shiner’s<br />

international customer base.<br />

Yet there are still persistent misconceptions when it comes<br />

to avoiding poorly-cut stones, particularly when searching<br />

for niche products such as fancy shapes, or purchasing<br />

fancy-colour diamonds.<br />

First and foremost, it is essential to understand that a<br />

diamond’s cut is not a single attribute, but rather refers to<br />

several different elements – not including the shape.<br />

“Cut and shape can be confused,” Eidukevicius-Jones<br />

explains. Shape is whether the diamond is round, pear<br />

shape, cushion, etcetera; cut is how the stone has<br />

been manufactured/polished, and whether it is graded<br />

Excellent, Very Good, and so on.”<br />

Many patented designs include both cut and shape, such<br />

as Lili Diamonds' Lily Cut.<br />

John Chapman, director Gemetrix and Delta Diamond<br />

Laboratory, adds, “‘Cut’ has mixed connotations – even<br />

to diamond dealers. It encompasses several different<br />

52 | <strong>September</strong> <strong>2021</strong>


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Email: office@ncdia.com


Making the Cut | DIAMOND FEATURE<br />

Above: Calleija Glacier cut<br />

diamond ring, courtesy<br />

Calleija. Right: Rose cut<br />

diamonds, courtesy<br />

Kunming Diamonds<br />

attributes that include proportions, angles,<br />

symmetry, and facet junctions.”<br />

Grading laboratories“distil these properties<br />

into grades that can be compared to a<br />

standardised reference”.<br />

While the GIA, International Gemological<br />

Institute (IGI) and HRD Antwerp use a fivepoint<br />

scale to grade cut, ranging from Poor<br />

to Excellent, the American Gem Society (AGS)<br />

includes a sixth grade above Excellent, Ideal.<br />

Says Chapman, “For round brilliants, the<br />

parameters are well understood – table width<br />

53 per cent, pavilion depth 43 per cent, and<br />

crown height 16 per cent.<br />

A diamond close to those specifications would<br />

be graded ‘Excellent’ for proportions and outside<br />

these ranges, proportion grades of Very Good,<br />

Good, Fair, and Poor have been defined.”<br />

He adds, “The advent of scanners that can<br />

accurately profile a diamond and measure its<br />

proportions, facet angles and symmetry has<br />

allowed objective measures of the cut.<br />

“Departures from this ideal cut are detrimental<br />

to the appearance of a stone through loss of<br />

brilliance, fire, and apparent size.”<br />

And though not an official term, a diamond may<br />

also be referred to as ‘Triple Excellent’ – also<br />

noted as XXX or triple-ex – if its proportion,<br />

symmetry, and polish have all been graded<br />

as Excellent.<br />

While the cut grades are well-established<br />

within the industry, Holloway says the biggest<br />

misconception about diamond cuts is “that<br />

Triple Excellent round cut diamonds are<br />

excellent diamonds”.<br />

“Seventy-two per cent of round diamonds<br />

submitted to the GIA receive the top cut grade of<br />

Excellent – the standard is so lenient you can drive<br />

a truck sideways through it!” he says.<br />

Meanwhile, the Hearts and Arrows descriptor –<br />

introduced by the Japanese diamond industry in<br />

the 1980s and brought to the US market in the<br />

early 1990s – can add another layer of confusion.<br />

“The concept of Hearts and Arrows was introduced<br />

as a way of determining if a round brilliant has been<br />

cut with the right proportions,” Chapman says.<br />

While the vast majority<br />

of the world’s diamonds<br />

are cut as round brilliants,<br />

master cutters and designers<br />

worldwide have explored<br />

new ways to differentiate<br />

stones, enhance a diamond’s<br />

natural beauty to its greatest<br />

potential, and support the<br />

creativity of jewellers"<br />

Commanding a premium price, these diamonds<br />

are precision-cut for physical and optical symmetry,<br />

resulting in the namesake pattern appearing when<br />

viewed through a special light scope.<br />

“Every Hearts and Arrows diamond will be<br />

graded Triple Excellent for cut, symmetry<br />

and polish, but not every Triple Excellent will<br />

necessarily be graded as a Hearts and Arrows<br />

diamond,” explains Eidukevicius-Jones.<br />

IGI and HRD Antwerp offer Hearts and<br />

Arrows certification, though the GIA does not.<br />

Notably, a Hearts and Arrows diamond may not<br />

always display optimal brilliance.<br />

A question of quality<br />

Since the GIA began grading cut quality in 2006,<br />

manufacturers have adapted their products in line<br />

with Excellent-grade proportions – leading to both<br />

positive and negative outcomes.<br />

As the GIA itself notes on its website, “A diamond’s<br />

proportions can help predict how well a diamond<br />

will deliver brightness, fire and scintillation.<br />

"However, an important outcome of GIA’s cut<br />

research was the finding that there is no single<br />

set of proportions that defines a well-cut round<br />

brilliant diamond.”<br />

On the positive side, Shah has observed an<br />

overall increase in diamond cut quality, in part<br />

due to increased education, awareness, and<br />

demand from the jewellery market for stones<br />

that fit the standardised cut grades – alongside<br />

improvements in diamond-cutting technology.<br />

“Worldwide, Excellent cut stones are becoming<br />

more popular, so manufacturers are producing<br />

more goods to fit that standard.<br />

"Due to the latest machinery innovations,<br />

manufacturers now also have better results from<br />

the rough, so there are, overall, better stones<br />

coming to market,” he explains.<br />

“Usually, if a jeweller asks for an Excellent cut<br />

round diamond certified by major laboratories such<br />

as the GIA, IGI, HRD Antwerp, or the Australian<br />

labs, they will get a nice cut stone,” Shah adds.<br />

However, while this standardisation and wide adoption<br />

of the GIA standards allows for easier comparison<br />

between stones, the system is not perfect.<br />

Abraham Tok, director Tok Bros, says, “The<br />

54 | <strong>September</strong> <strong>2021</strong>


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Making the Cut | DIAMOND FEATURE<br />

Asprey cut<br />

Bez Ambar<br />

Blaze Solo cut<br />

Above: Buddha Cut diamond set<br />

in pendant. Left: Loose Buddha<br />

Cut diamond<br />

current GIA cut grade standard is acceptable as it has<br />

provided a standardised format for objectively comparing<br />

one diamond’s cut grade to another, however, it can be<br />

improved by tightening the parameters that constitute an<br />

Excellent cut grade,” he says.<br />

Holloway points out that the standards are also not<br />

necessarily enforced by grading laboratories.<br />

“More than 10 per cent of GIA-graded Excellent cut<br />

diamonds are deeper than 63 per cent, and the GIA<br />

teaches that 62.9 per cent is the maximum allowable<br />

depth percentage,” he says.<br />

“When queried on this, the GIA explains that [its<br />

proprietary cut-assessment software program] Facetware<br />

adds the crown height, girdle thickness and pavilion depth<br />

percentages to arrive at depth percentage. So, clever<br />

cutters have developed workarounds – and GIA allows it!”<br />

There are still persistent<br />

misconceptions when it comes<br />

to avoiding poorly-cut stones,<br />

particularly when searching for<br />

niche products such as fancy<br />

shapes, or purchasing fancycolour<br />

diamonds"<br />

Indeed, Tok has observed that “Excellent-grade round<br />

brilliant cut diamonds have changed over the past few<br />

years in that there has been a reduction in the diameter of<br />

particular sizes”.<br />

“A 1-carat round with an Excellent cut grade usually would<br />

have a diameter of 6.4mm–6.5mm, while a 1.50-carat<br />

would have a diameter of 7.4mm–7.5mm; now, you can<br />

find plenty of examples of 1-carat and 1.50-carat round<br />

diamonds, certified XXX by GIA, with diameters under<br />

6.3mm and 7.3mm, respectively.<br />

Maulin Shah<br />

World Shiner<br />

"With fancy shapes, it comes<br />

down to the dealer. A diamond<br />

dealer with a solid reputation,<br />

extensive experience, and<br />

a loyal existing customer<br />

base will be able to give good<br />

advice on fancy shapes."<br />

John Chapman<br />

Delta Diamond Laboratory<br />

and Gemetrix<br />

"Different polishers have<br />

their own ‘recipes’ for extracting<br />

the most colour and some<br />

make a livelihood out<br />

of recutting diamonds to<br />

achieve a more valuable<br />

colour grade."<br />

Abraham Tok<br />

Tok Bros<br />

"Excellent-grade round<br />

brilliant cut diamonds have<br />

changed over the past few<br />

years in that there has been<br />

a reduction in the diameter of<br />

particular sizes... The<br />

end result is a 'lumpier' or<br />

'fatter' stone."<br />

“The end result is a ‘lumpier’ or ‘fatter’ stone that has<br />

higher crown angles, increased depth percentages and<br />

thicker girdles. The extra weight to push the diamond into<br />

the [more valuable] 1-carat and 1.50-carat size ranges is<br />

hidden in these proportions in order to extract more value/<br />

yield from the rough diamond.”<br />

He adds, “This generally has a negative impact on the<br />

appearance of the diamond for jewellers as it is visually<br />

smaller when compared side-by-side with a diamond<br />

that was cut to the original Excellent parameters;<br />

0.1mm–0.2mm may not sound like much as an overall<br />

measurement, however, when comparing diamonds this<br />

is a significant difference that is easily noticeable to the<br />

trained eye.”<br />

Holloway points out a further problem of transparency<br />

being included in the clarity grade rather than the cut<br />

grade, meaning “a diamond can have an Excellent cut<br />

grade – or even top performance with my Holloway Cut<br />

Advisor – but it can still be as dull as dishwater.”<br />

“In theory, a black diamond could receive a XXX cut grade,”<br />

he adds, explaining that the GIA's and other laboratory's<br />

jargon can result in confusion for both jewellery retailers<br />

and consumers alike.<br />

“The worst is 'Clarity grade is based on clouds not show'<br />

which means the clouds are not plotted on the clarity image<br />

on a full certificate,” Holloway adds.<br />

Exceptions and misconceptions<br />

With the rise of custom jewellery design – particularly for<br />

engagement rings – fancy shapes such as marquise, kite,<br />

and heart are becoming increasingly popular.<br />

Yet none receive a standardised cut grade on a certificate,<br />

whether graded by the GIA or another laboratory, in the<br />

same way as a round brilliant. Even classic shapes like<br />

cushion, pear, and oval do not receive a full cut grade.<br />

Says Holloway, “Simply put, most jewellers have no idea<br />

that the GIA does not grade cut proportions for any fancyshaped<br />

diamonds.”<br />

56 | <strong>September</strong> <strong>2021</strong>


DIAMOND CUTS<br />

A BRIEF HISTORY<br />

The history of diamond cutting is a long one. In the mid-14th<br />

Century, the octahedral facets of rough stones would be<br />

polished to create the simple ‘Point cut’; a century later, the<br />

Table cut was created by splitting the octahedral crystal in half.<br />

THE NEXT CHAPTER<br />

IN FINE JEWELRY<br />

Later, the Rose cut – introduced to Europe in approximately 1530 –<br />

began to gain popularity. With 24 facets, the cut was prized for its<br />

soft, diffused light.<br />

In the 17th Century, French-Italian Cardinal Jules Mazarin invented<br />

his namesake cut – perhaps the first true precursor to the modern<br />

brilliant cut – with 17 crown facets. The Mazarin cut was later<br />

improved by Venetian polisher Vincent Peruzzi, who nearly doubled<br />

the number of crown facets for his Peruzzi cut.<br />

By the late 1800s, the South African diamond rush had well and<br />

truly begun, and demand for more efficient diamond cutting<br />

techniques increased. The industry was revolutionised by steamdriven<br />

bruting machines and motorised saws, which enabled<br />

faster and more precise cutting – leading to the development of the<br />

Old European cut, with 58 facets.<br />

Previously, diamonds were laboriously cleaved by hand and<br />

polished using diamond dust.<br />

Coster Diamonds, in the Netherlands, claims to have been the first<br />

polishing house to use steam-powered cutting machines, in 1840.<br />

Old Mine cut diamonds emerged around this time, featuring 58<br />

facets – similar to the modern round brilliant, but with a chunkier<br />

and more geometric look.<br />

In the 1870s, master cutter Henry D Morse developed what is<br />

known as the Transition cut or American cut. Trained in the<br />

Netherlands, Morse established the first diamond cutting factory<br />

in the US, where several technological breakthroughs took place.<br />

Notably, Morse profoundly shifted his focus away from maintaining<br />

the weight of the rough towards creating the most beautiful result,<br />

with lower main angles, smaller tables and symmetrical facets.<br />

Indicative of his skill, Morse was trusted to cut the largest stone<br />

found in the US in the 19th Century, the Dewey Diamond.<br />

Perhaps the most significant breakthrough in diamond cutting<br />

came in 1919, when engineer Marcel Tolkowsky – born to a family<br />

of diamantaires – developed the modern round brilliant cut, also<br />

known as the American Ideal cut or Tolkowsky cut.<br />

Tolkowsky’s formula maximised light return based on<br />

mathematical principles, and provided a framework by which the<br />

vast majority of the world’s diamonds are still cut today.<br />

The 20th Century would give rise to many other notable diamond<br />

shapes and cuts; the modern Oval cut, developed by Tolkowsky’s<br />

cousin Lazare Kaplan, the 66-facet Radiant cut, invented by New<br />

York cutter Henry Grossbard in 1977, and the Princess – a square<br />

diamond with a brilliant cut – in 1979.<br />

SWAROVSKI<br />

CREATED DIAMONDS<br />

The late ’90s and early 2000s saw an influx of proprietary –<br />

either trademarked or patented – diamond cuts, concurrent<br />

with an increasingly crowded and competitive market, and rapid<br />

technological advancements.<br />

In 2018, the GIA established a Proprietary Cut Program and began<br />

issuing reports including branded cut names and descriptions.<br />

Today, more than 90 per cent of the world’s diamonds are cut and<br />

polished in India; approximately three quarters are round brilliants.<br />

Now proudly distributed by<br />

Meanwhile large, premium diamonds and complex shapes are<br />

primarily cut in Antwerp, Israel, and New York.<br />

02 9417 0177 | www.dgau.com.au


WHEN TR A DITION A L JUST WON' T DO<br />

Innovative Diamond Cuts & Shapes<br />

* STONES ORDERED BY ASCENDING NUMBER OF FACETS<br />

Sirius Star Cushion<br />

116 Facets<br />

By MIKE BOTHA<br />

Sirius Star 88<br />

88 Facets<br />

By MIKE BOTHA<br />

Padma Round<br />

806 Facets<br />

By DHARMANANDAN DIAMONDS<br />

Meteor<br />

71 Facets<br />

By LILI DIAMONDS<br />

Sirius Star 100<br />

100 Facets<br />

By MIKE BOTHA<br />

Sirius Star Octagon<br />

88 Facets<br />

By MIKE BOTHA<br />

Sirius Star 80<br />

80 Facets<br />

By MIKE BOTHA<br />

Brilliant 10<br />

71 Facets<br />

By YAIR SHIMANSKY<br />

Blue Flame<br />

89 Facets<br />

By BERNARD VAN PUL &<br />

KOEN VAN ISHOVEN<br />

Sirius Star Square<br />

88 Facets<br />

By MIKE BOTHA<br />

Crisscut<br />

77 Facets<br />

By CHRISTOPHER SLOWINSKI<br />

& LILI DIAMONDS<br />

Ashoka<br />

62 Facets<br />

By WILLIAM GOLDBERG<br />

Padma Cushion<br />

88 Facets<br />

By DHARMANANDAN DIAMONDS<br />

Cherry Blossom/Sakura<br />

87 Facets<br />

By TOKYO KIHO CO<br />

Lily Cut<br />

77 Facets<br />

By LILI DIAMONDS<br />

Orchidea<br />

61 Facets<br />

By LILI DIAMONDS<br />

Astralis Round Brilliant<br />

89 Facets<br />

By SIR GABRIEL TOLKOWSKY<br />

Crisscut Cushion<br />

85 Facets<br />

By CHRISTOPHER SLOWINSKI<br />

& LILI DIAMONDS<br />

Cupio Cut<br />

73 Facets<br />

By KP SANGHVI & SONS<br />

Quadrillion<br />

49 Facets<br />

By BEZ AMBAR & YGAL PERLMAN<br />

This also presents a challenge for diamond suppliers,<br />

with Shah noting, “It is definitely harder for fancy shapes<br />

because none of the labs write the cut grade on the<br />

certificate – they only grade rounds for the cut.<br />

“For those other shapes, the report will mention things<br />

like polish and symmetry, but there won’t be a cut grade.”<br />

Indeed, the greatest selling point of fancy-shaped<br />

diamonds – their unique appearance – makes them<br />

difficult, if not impossible, to standardise.<br />

“Non-round shapes are not guided by nearly as much<br />

specification as round brilliants,” says Chapman.<br />

The key determinants of value for<br />

fancy colour diamonds are the<br />

saturation and vibrancy of that<br />

colour, and the size of the stone;<br />

therefore, cutting and polishing<br />

these diamonds is a delicate<br />

balancing act"<br />

“There are no ‘standard’ proportions – even for cushion<br />

cuts or ovals – against which they can be graded. Though<br />

symmetry and faceting can be graded, each lab offering<br />

such a grade will have its own criteria for what constitutes<br />

good or poor symmetry.”<br />

Adds Tok, “The appeal of fancy shapes is subjective.<br />

Different customers prefer different proportions in<br />

their fancy shapes; for example, some customers<br />

prefer pear shapes to be longer and some prefer oval<br />

shapes to be rounder.”<br />

When it comes to sourcing fancy shapes, Shah advises<br />

jewellers to place their trust in a respected diamond supplier.<br />

“With fancy shapes, it comes down to the dealer. A<br />

diamond dealer with a solid reputation, extensive<br />

IT'S CLEAR CUT<br />

In Summary<br />

First priority<br />

Cut is the most important<br />

of the 'four Cs', with<br />

the most influence<br />

over a diamond's final<br />

appearance, including<br />

its colour, clarity, carat<br />

weight, and brilliance<br />

Changing rules<br />

Fancy shapes and<br />

colours are cut and<br />

graded differently to<br />

round brilliants, which<br />

can present challenges<br />

Knowledge is<br />

power<br />

Education on Excellent<br />

and Ideal cut parameters<br />

and relevant diamond<br />

assessment tools can<br />

assist in both avoiding<br />

poorly-cut diamonds and<br />

making sales in-store<br />

A matter of trust<br />

A respected diamond<br />

supplier with extensive<br />

product knowledge<br />

is essential when<br />

sourcing well-cut stones,<br />

particularly fancy colours<br />

and shapes<br />

experience, and a loyal existing customer base will be able<br />

to give good advice on fancy shapes.<br />

“They will have the knowledge of stone ratios and be able to<br />

make suggestions and offer a selection, and a replacement<br />

stone if the customer is not happy.”<br />

Holloway suggests jewellers learn to use the ASET,<br />

which he developed for the AGS, to assess fancy shaped<br />

diamonds for light ‘leakage’ themselves.<br />

Further complicating the question of cut are fancy<br />

colour diamonds.<br />

“Cuts for fancy colours are in a different class than<br />

colourless diamonds,” says Chapman.<br />

“The objective of the light within the stone is quite different<br />

between the two types. For colourless diamonds, the<br />

‘pathlength’ of light within a stone is minimised, whereas<br />

for coloured diamonds, the art – or rather science – is to<br />

maximise the pathlength to deepen the colour.”<br />

Simply put, the deeper the pavilion, the farther light can<br />

travel within the diamond, which can create a richer and<br />

more intense colour.<br />

The key determinants of value for fancy colour diamonds<br />

are the saturation and vibrancy of that colour, and the<br />

size of the stone; therefore, cutting and polishing these<br />

diamonds is a delicate balancing act.<br />

Typically, mixed cuts such as the Radiant are preferred<br />

as they intensify colour; this is particularly evident in<br />

diamonds toward the end of the classic D to Z colour<br />

grading scale, which, when cut appropriately, can be<br />

transformed into more valuable fancy yellows.<br />

Says Chapman, “Different polishers have their own<br />

‘recipes’ for extracting the most colour and some make<br />

a livelihood out of recutting diamonds to achieve a more<br />

valuable colour grade.”<br />

Avoiding the traps<br />

As in most areas of the jewellery trade, education is key<br />

for jewellers in sourcing quality material; it is also a useful<br />

58 | <strong>September</strong> <strong>2021</strong>


DIAMOND FEATURE | Making the Cut<br />

Top: Loose Alphabet<br />

Cut diamonds by Kunming<br />

Diamonds. Above: Alphabet<br />

Cut diamonds set in necklace<br />

by K Kane <strong>Jeweller</strong>y<br />

sales tool when discussing diamonds with customers. “<strong>Jeweller</strong>s<br />

should educate themselves on the ideal parameters and use that<br />

knowledge to help their customers find great diamonds,” says Tok.<br />

Chapman echoes this observation; “Most consumers are, quite<br />

reasonably, not versed in what is a good cut and what to look for<br />

to assess brilliance and fire, so some retailers have come to their<br />

rescue with tools to help them,” he says.<br />

Whether a proprietary cut, fancy shape,<br />

fancy colour, or classic round brilliant,<br />

there is no overstating the importance<br />

of understanding a diamond’s cut and<br />

the impact it has on the overall beauty<br />

and appeal of a stone"<br />

“An IdealScope allows a view of the behaviour of light in a diamond<br />

from its refractions and reflections, and there are other fancier<br />

tools that show light leakage and brilliance with moving light<br />

stages, computer processing and graphic outputs of a stone’s light<br />

performance.<br />

“Several gem labs show these diagrams on their reports with areas<br />

of red, green and blue denoting how the light is behaving.”<br />

Eidukevicius-Jones advocates a hands-on approach: “Look at the<br />

diamond and move it around even before you pick up a loupe. First<br />

impressions last!” she says.<br />

Whether a proprietary cut, fancy shape, fancy colour, or classic<br />

round brilliant, there is no overstating the importance of<br />

understanding a diamond’s cut and the impact it has on the<br />

overall beauty and appeal of a stone.<br />

In order to deliver the best possible service, jewellers must both<br />

educate themselves and cultivate relationships with knowledgeable,<br />

reliable diamond suppliers in order to procure stones with<br />

outstanding sparkle – the stones with which consumers can’t help<br />

but fall in love.


Packamate Limited<br />

Flat F, Block 2.,<br />

12/F Kwun Tong Industrial Centre.<br />

460-470 Kwun Tong Road, Hong Kong<br />

Tel. +852 2603 1173 or 8121 1751<br />

Email.info@packamate.com<br />

packamate.com<br />

One-stop shop packaging component supply and solution<br />

Packamate Limited is a well-established manufacturer<br />

and wholesaler of quality packaging for various<br />

sectors such as jewellery, shopping bags, watches,<br />

writing instruments, spectacles, beverage, electronic<br />

devices, display, watch winder, cabinets, cosmetic,<br />

jewellery collectors and wine collectors.


A QUARTERLY SPOTLIGHT ON COLOURED GEMSTONES SEPTEMBER <strong>2021</strong><br />

COLOUR<br />

FOCUS<br />

THIS MONTH<br />

Blue<br />

&<br />

Green<br />

70 RED CARPET<br />

COLLECTION<br />

Who dazzled with this<br />

aquamarine ring?<br />

Turn to page 70 to find out.<br />

Index<br />

COLOUR INVESTIGATION FEATURE<br />

Forest, sea & sky<br />

<strong>Jeweller</strong> discovers the chemical and structural causes<br />

of colour in captivating natural blue and green<br />

gemstones, from Ceylon sapphires to imperial jade.<br />

64<br />

65<br />

70<br />

IN DEPTH<br />

Dive into gem trivia<br />

COLOUR INVESTIGATION FEATURE<br />

Every hue of green and blue<br />

RED CARPET COLLECTION<br />

This month’s colours dazzle<br />

Sapphire<br />

VARIETY<br />

ETYMOLOGY<br />

HARDNESS<br />

REFRACTIVE INDEX<br />

TREATMENTS<br />

COLOURS<br />

SEPTEMBER BIRTHSTONE<br />

Corundum<br />

Greek sappheiros, meaning blue stone<br />

9<br />

1.76 - 1.78<br />

Heat<br />

Blue, green, and teal (among others)<br />

QUICK PROFILE<br />

8 Popular<br />

Blue &<br />

Green<br />

Gemstones<br />

Tsavorite garnet<br />

VARIETY<br />

ETYMOLOGY<br />

HARDNESS<br />

REFRACTIVE INDEX<br />

TREATMENTS<br />

COLOURS<br />

Garnet (Grossular)<br />

Named after Tsavo National Park<br />

6.5–7.5<br />

1.71 - 1.89<br />

None<br />

Green<br />

Emerald<br />

VARIETY<br />

ETYMOLOGY<br />

HARDNESS<br />

REFRACTIVE INDEX<br />

TREATMENTS<br />

COLOURS<br />

Aquamarine<br />

VARIETY<br />

ETYMOLOGY<br />

HARDNESS<br />

REFRACTIVE INDEX<br />

TREATMENTS<br />

COLOURS<br />

Paraìba Tourmaline<br />

VARIETY<br />

ETYMOLOGY<br />

HARDNESS<br />

REFRACTIVE INDEX<br />

TREATMENTS<br />

COLOURS<br />

Beryl<br />

Ancient Greek smaragdos, meaning<br />

green gemstone<br />

7.5 - 8<br />

1.56 - 1.58<br />

Oiling and other fracture filling<br />

Bluish green to green<br />

Beryl<br />

Latin aqua marina, meaning<br />

water of the sea<br />

7.5 - 8<br />

1.57- 1.58<br />

Heat<br />

Light blue-green to light blue<br />

Tourmaline<br />

Named after Paraìba State<br />

7 - 7.5<br />

1.61 - 1.67<br />

Heat<br />

'Neon' vivid blue-green<br />

HONOURABLE<br />

MENTIONS<br />

• Apatite<br />

• Blue Zircon<br />

• Blue Spinel<br />

• Chrysoprase<br />

• Green Tourmaline<br />

(Verdelite)<br />

• Demantoid Garnet<br />

• Lapis Lazuli<br />

• Turquoise<br />

Peridot<br />

VARIETY<br />

ETYMOLOGY<br />

HARDNESS<br />

REFRACTIVE INDEX<br />

TREATMENTS<br />

COLOURS<br />

Jade<br />

VARIETY<br />

ETYMOLOGY<br />

HARDNESS<br />

REFRACTIVE INDEX<br />

TREATMENTS<br />

COLOURS<br />

Tanzanite<br />

VARIETY<br />

ETYMOLOGY<br />

HARDNESS<br />

REFRACTIVE INDEX<br />

TREATMENTS<br />

COLOURS<br />

Olivine<br />

Unknown but believed to be Anglo–<br />

Norman pedoretés, a type of opal<br />

6.5 - 7<br />

1.65 - 1.69<br />

None<br />

Olive to yellowish green and pure green<br />

Jadeite and Nephrite (silicates)<br />

From Spanish piedra de ijada,<br />

meaning stone of the side<br />

6.5 - 7 and 6 - 6.5<br />

1.67 - 1.68 and 1.61 - 1.68<br />

Bleach, wax, dye, and polymer<br />

Varied, notably pale to deep green<br />

Zoisite<br />

Named after Tanzania<br />

6 - 6.5<br />

1.69 - 1.70<br />

Heat<br />

Violet blue<br />

LEARN ABOUT THESE GEMSTONES IN DEPTH: JEWELLERMAGAZINE.COM


BLUE & GREEN<br />

In Depth<br />

Green Tourmaline<br />

(Verdelite)<br />

Afghanistan<br />

Brazil<br />

Mozambique<br />

Sri Lanka<br />

Tajikistan<br />

USA<br />

Blue Topaz<br />

(Natural)<br />

Brazil<br />

USA<br />

Peridot<br />

Australia<br />

Brazil<br />

China<br />

Kenya<br />

Mexico<br />

Myanmar (Burma)<br />

Norway<br />

Pakistan<br />

Saudi Arabia<br />

South Africa<br />

Sri Lanka<br />

Tanzania<br />

USA<br />

Tsavorite Garnet<br />

Tanzania<br />

Madagascar<br />

Pakistan<br />

Emerald<br />

Afghanistan<br />

Australia<br />

Brazil<br />

Colombia<br />

Pakistan<br />

Russia<br />

Zambia<br />

USA<br />

Aquamarine<br />

Brazil<br />

China<br />

India<br />

Madagascar<br />

Mozambique<br />

Russia<br />

USA<br />

Colombia<br />

PACIFIC<br />

OCEAN • Emerald<br />

• Sapphire<br />

USA<br />

• Green Tourmaline<br />

• Blue Topaz<br />

• Peridot<br />

• Tsavorite Garnet<br />

• Emerald<br />

• Aquamarine<br />

• Jade<br />

Brazil<br />

ATLANTIC<br />

OCEAN<br />

• Paraìba Tourmaline<br />

• Green Tourmaline<br />

• Aquamarine<br />

• Peridot<br />

• Jade<br />

• Blue Topaz<br />

PROVENANCE SNAPSHOT<br />

TOP 5 BLUE AND GREEN GEMSTONE PRODUCING COUNTRIES<br />

Tanzania<br />

ARCTIC<br />

OCEAN<br />

• Tanzanite<br />

• Tsavorite garnet<br />

• Sapphire<br />

• Peridot<br />

• Blue spinel<br />

• Jade<br />

Sri Lanka<br />

INDIAN<br />

OCEAN<br />

• Sapphire<br />

• Peridot<br />

• Green Tourmaline<br />

• Blue Spinel<br />

• Jade<br />

SPECIAL MENTION<br />

Australia<br />

Sapphire<br />

PACIFIC<br />

OCEAN<br />

Demantoid Garnet<br />

Afghanistan<br />

Iran<br />

Italy<br />

Madagascar<br />

Nambia<br />

Russia<br />

Sapphire<br />

Australia<br />

Madagascar<br />

Myanmar (Burma)<br />

Sri Lanka<br />

Tanzania<br />

Thailand<br />

Blue Spinel<br />

Canada<br />

Myanmar (Burma)<br />

Sri Lanka<br />

Tajikistan<br />

Tanzania<br />

Vietnam<br />

Blue Zircon<br />

Cambodia<br />

Thailand<br />

Vietnam<br />

Tanzanite<br />

Tanzania<br />

Paraiba<br />

Tourmaline<br />

Brazil<br />

Jade<br />

Brazil<br />

China<br />

India<br />

Myanmar<br />

New Zealand<br />

Sri Lanka<br />

Tanzania<br />

USA<br />

Zimbabwe<br />

The world's most<br />

famous sapphire<br />

engagement ring – belonging to<br />

Diana, Princess of Wales – was not a<br />

custom-make, but rather chosen by her<br />

from the Garrard jewellery catalogue<br />

“These gems<br />

have life in<br />

them; their<br />

colours<br />

speak – say<br />

what words<br />

fail of.”<br />

GEORGE ELIOT<br />

At least 50% of the world's<br />

Emerald is sourced from Colombia<br />

The most famous<br />

collection of peridot<br />

jewellery is the Habsburg<br />

Peridot Parure, which<br />

was created by imperial<br />

jeweller Köchert in 1825<br />

Ancient Egyptian priests<br />

would grind peridot and<br />

mix it into drinks, which<br />

they believed would give<br />

them mystical powers<br />

and knowledge<br />

$AU6.5 million<br />

Price paid for Elizabeth Taylor’s<br />

emerald Bulgari brooch<br />

Love is an emerald.<br />

Its brilliant light wards<br />

off dragons on this<br />

treacherous path."<br />

RUMI<br />

In the Middle Ages,<br />

Europeans believed<br />

sapphires could<br />

cure eye diseases<br />

3 BILLION<br />

AGE OF THE OLDEST<br />

EMERALDS<br />

Cleopatra’s<br />

legendary<br />

emerald<br />

collection was<br />

likely peridot<br />

Lapis lazuli beads and<br />

artefacts have been found in<br />

many ancient civilisations,<br />

dating to the Neolithic age<br />

381kg<br />

The weight of the Bahia Emerald,<br />

which contains the largest single<br />

emerald shard ever found; it is hidden<br />

in a secret vault in Los Angeles<br />

62 | <strong>September</strong> <strong>2021</strong>


BLUE & GREEN<br />

Colour Investigation<br />

UNDERSTANDING GEMSTONE COLOUR<br />

Every hue of green and blue<br />

<strong>Jeweller</strong> discovers the chemical and structural causes of colour in captivating natural blue and green<br />

gemstones, from Ceylon sapphires to imperial jade.<br />

Rich blue Ceylonese gemstones are the most wellknown<br />

and valuable variety of sapphire, and the<br />

standard against which other blue gems are measured.<br />

However, paler versions are still in high demand and<br />

the teal hue – a mix of blue and green – has also soared<br />

in popularity in recent years, with premium specimens<br />

sourced from Australia, Nigeria, and Montana in the US.<br />

Sapphire is corundum; an allochromatic mineral that<br />

derives colour from chemical impurities in the crystal<br />

structure. These impurities absorb specific parts of the<br />

light spectrum, and the remaining light reflected to the<br />

eye gives colour to the gemstone.<br />

Blue is caused by traces of titanium and iron; the more<br />

iron present, the darker the stone. Green sapphires also<br />

owe their colour to iron.<br />

Sapphires are often heat-treated to remove silk<br />

inclusions, thus enhancing clarity and richness of colour.<br />

Like sapphire, the vibrant colour of emerald – a form of<br />

beryl – has been adored from ancient times.<br />

Created by trace impurities of chromium and vanadium,<br />

the intense green colour is the most prized. The price<br />

drops when accompanied by a bluish tinge, and continues<br />

to devalue further when coloured a yellowish tinge from<br />

iron impurities.<br />

When the colour of beryl is too light to be called emerald,<br />

it is termed ‘green beryl’.<br />

Colombia remains the major source of emeralds,<br />

retaining the best reputation and usually commanding a<br />

price premium.<br />

However, emeralds can be sourced from many parts of<br />

63<br />

FULL PAGE<br />

ADVERTISEMENT<br />

Sarah Ho<br />

QUICK<br />

FACTS<br />

85%<br />

of the<br />

gemstones<br />

mined in Sri<br />

Lanka are<br />

sapphire<br />

1<br />

location where<br />

tanzanite<br />

is found<br />

worldwide<br />

$42m<br />

value of the<br />

Colombia's<br />

emerald<br />

exports in<br />

2020 ($US)<br />

the world, including Russia (the Urals have produced<br />

emeralds for more than 100 years), Zambia,<br />

Brazil, Zimbabwe, Afghanistan and Ethiopia; some<br />

emeralds from these mines will rival the best<br />

Colombian emeralds.<br />

Emeralds typically have many inclusions; the French say<br />

they have a jardin (garden) inside them. The inclusions<br />

also make emeralds a more brittle gemstone, often<br />

confused with it being soft.<br />

To help improve their clarity and colour, emeralds are<br />

treated in several ways. They are usually “oiled” at the<br />

mines – a process that uses oil to fill the cracks and<br />

inclusion spaces in a technique practised for centuries.<br />

Aquamarine is another variety of beryl, and owes its<br />

delicate blue-green palette to ferrous iron.<br />

Loved for its icy sky-blues and cool sea greens, its name<br />

originated from the Latin aqua marina, meaning ‘water<br />

of the sea’.<br />

Available in large, eye-clean gemstones, aquamarine’s<br />

colour and higher carat weights has made it popular,<br />

although deeper shades command a higher price. Most<br />

commercially-available aquamarines are heat-treated<br />

to remove yellow tones and produce a more desirable<br />

blue hue.<br />

Maxixe beryl is the name given to blue beryl with a very<br />

dark tone that is almost unnatural, unlike the softer<br />

blues of aquamarine.<br />

The colour is known to fade from deep blue to a<br />

yellowish tone in sunlight and strong artificial light or<br />

heat in a reasonably short time.<br />

The maxixe beryl’s colour is caused by a nitrate trace<br />

<strong>September</strong> <strong>2021</strong> | 63


Colour Investigation | BLUE & GREEN GEMSTONES<br />

GEMSTONE FOCUS<br />

AUSTRALIAN SAPPHIRE<br />

Sapphire<br />

Dreams<br />

IA<br />

NORTHERN<br />

TERRITORY<br />

SOUTH AUSTRALIA<br />

QUEENSLAND<br />

NEW SOUTH<br />

WALES<br />

VICTORIA<br />

Anakie Fields<br />

New England Fields<br />

Australian sapphires originated as a<br />

result of volcanic eruptions that date back<br />

millions of years.<br />

Discovered as crystal formations in<br />

ancient riverbeds left behind by creeks and<br />

streams, sapphire deposits were found to be<br />

concentrated in alluvial gravels, colloquially<br />

referred to as 'wash'.<br />

Today, most of these gems are found in the<br />

New England Fields in northern NSW and<br />

the Anakie Fields in central Queensland,<br />

which are the two major sources of<br />

sapphires in Australia.<br />

Sapphires are a form of corundum with<br />

a chemical formula of Al 2<br />

O 3<br />

– aluminium<br />

oxide.<br />

The<br />

word 'sapphire'<br />

is derived from<br />

sappheiros,<br />

which means 'blue<br />

stone' in Greek. However,<br />

despite the common belief that sapphires<br />

only come in a blue colour, that could not be<br />

further from the truth.<br />

All sapphires are allochromatic, which means<br />

they receive their colour from impurities<br />

within the crystal structure. Depending on the<br />

trace amounts of iron, titanium and nickel,<br />

and other elements, sapphires can attain a<br />

range of different colours.<br />

TAS<br />

Corundum is a material known for its high<br />

density, which makes sapphires among the<br />

hardest natural minerals in the world, ranking<br />

9 out of 10 on Mohs' hardness scale,<br />

second only to diamonds.<br />

Australian sapphires are particularly known<br />

for deep blue, green, yellow and parti-colour<br />

specimens combining blue, yellow and green.<br />

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compound. Some maxixe-type beryl is also on the market with<br />

colour resulting from a carbonate trace compound.<br />

Demantoid, tsavorite and tanzanite<br />

Another gemstone of many colours is garnet, and the standout<br />

in the andradite branch of garnet is vibrant green demantoid.<br />

With dispersion greater than diamond and a striking, rich green,<br />

hue demantoid is one of the most valuable garnets.<br />

Originally sourced from Russia, much of today’s demantoid<br />

comes from Namibia.<br />

Grossular garnet is found in a range of colours including yellow,<br />

grey, colourless and green; indeed grossular gets its name<br />

from the Latin word for gooseberry, the light green variety being<br />

similar in colour to the fruit.<br />

Annoushka x Fuli Gemstones<br />

Aquamarine is another variety of beryl,<br />

and owes its delicate blue-green palette<br />

to ferrous iron. Loved for its icy skyblues<br />

and cool sea greens, its name<br />

originated from the Latin aqua marina,<br />

meaning ‘water of the sea’”<br />

The most sought after grossular garnet is the rich green<br />

variety called tsavorite. Almost, but not quite emerald green,<br />

tsavorite was discovered by geologist Campbell Bridges in<br />

Tanzania in 1967.<br />

He found another source in 1970, near Kenya’s Tsavo National<br />

Park. Bridges and former Tiffany & Co. president Henry B Platt<br />

named tsavorite after its Kenyan source.<br />

On first viewing the gem, Platt observed, “Tsavorite is everything<br />

a fine gemstone should be, and then some.”<br />

Like tsavorite, tanzanite was also discovered in Tanzania<br />

in 1967.<br />

According to legend, a large bush fire swept the foot of Mount<br />

Kilimanjaro, transforming the dull, greyish-brown material into<br />

glittering blue and violet crystals, which not only caught the<br />

eyes of Masai tribesmen but also the imagination of the world’s<br />

most-prestigious jewellery houses.<br />

This bushfire myth perfectly illustrates the chameleon-like<br />

change that occurs when tanzanite crystals are heated to<br />

approximately 400°C – the undesirable yellow and brown tints<br />

disappear and the purple and blue tints deepen, resulting in<br />

transparent, vividly-coloured material.<br />

Tanzanite is a gem variety of the mineral zoisite, a calcium<br />

aluminium silicate. Zoisite may be green, pink, grey, colourless<br />

or brown in its untreated form.<br />

Tanzanite’s unique formation has a million-to-one chance of<br />

occurring outside the areas where it is known to be found,<br />

making it significantly rarer than diamond and asserting its<br />

reputation as a truly exotic gemstone.<br />

Originally, tanzanite was confused with Kashmir sapphire and<br />

even amethyst, due to its exquisite mix of velvety blue and<br />

purple hues.<br />

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Colour Investigation | BLUE & GREEN GEMSTONES<br />

L to R: Van Cleef & Arpels; Sarah Ho; Bulgari; Sapphire Dreams<br />

Intense blue tanzanite in large sizes is rare and more expensive<br />

than purple because the rough does not provide as high a yield.<br />

Indicolite, verdelite and Paraìba tourmaline<br />

While the red hues of rubellite tourmaline maintain a steady<br />

appreciation, the interest and value of blue and green tourmaline<br />

was reignited with the discovery of Paraìba tourmaline.<br />

Tourmalines showing unusually striking ‘neon’ colours of blue,<br />

green-blue, green and violet first appeared in the jewellery trade<br />

in 1989, when a single deposit was unearthed near the Brazilian<br />

village of Sao Jose de Batalha in north-central Paraìba State.<br />

The gems came to be known as Paraìba tourmalines. Such<br />

tourmalines are rare, and exhibit a vivid blue and startling glow<br />

incomparable to any other gem.<br />

Although uncommon in sizes over 2 carats, these majestic<br />

gemstones are always in high demand, attracting extraordinary<br />

prices not seen with any other tourmaline variety. Interestingly, the<br />

trace element responsible for these exciting colours is copper.<br />

In some cases, the concentration is so high that small inclusions<br />

of pure native copper can be found.<br />

While copper is a contributing colouring agent in many other<br />

minerals such as turquoise and malachite, it had not been known to<br />

colour tourmaline until the discovery of Paraìba tourmaline.<br />

Typically, iron and chromium induce the blue and<br />

green in other coloured tourmaline varieties.<br />

Mined by hand in the copper-rich<br />

mountains of Mozambique and Nigeria<br />

are Paraìba-type’ tourmalines.<br />

FANCY COLORED DIAMONDS<br />

ARGYLE PINK, COGNAC & CHAMPAGNE<br />

AUSTRALIAN BLACK OPALS<br />

Almost identical in chemistry and<br />

colour saturation to their Brazilian<br />

counterparts, these gems emerged<br />

into the market in the early 2000s<br />

with large stones, some over<br />

5 carats.<br />

However, some argue the quality<br />

and richness of colour of the authentic<br />

Brazilian stones are incomparable.<br />

sales@tremac.com.au<br />

www.tremonti.com.au<br />

Harry Winston


Blue is caused<br />

by traces of<br />

titanium and<br />

iron... Green<br />

sapphires also<br />

owe their colour<br />

to iron”<br />

Sapphire Dreams<br />

S&S<br />

STONES& SILVER<br />

STERLING SILVER JEWELLERY<br />

Exclusive Australian suppliers of<br />

.935 Sterling Silver Chains<br />

In contrast to Paraìba tourmaline, the other cool-hued varieties<br />

are more readily available and at less extravagant prices.<br />

These gems flaunt trade names such as ‘indicolite’, the name<br />

given to a range of blue tourmalines, and ‘verdelite’, the name<br />

given to a range of green tourmalines.<br />

Both named varieties are often tinged with blue, green or violet<br />

offering a broad spectrum of colours in varying saturations.<br />

Blue tourmalines range from pale icy blue to deep and dark<br />

saturated navy blues. Stones that exhibit a dominant blue hue<br />

generally attract a higher value.<br />

Some stones are labelled indicolite even when the green<br />

predominates, so buyers should value a stone based on its<br />

colour rather than its trade name.<br />

Tourmalines showing unusually<br />

striking ‘neon’ colours of blue, greenblue,<br />

green and violet first appeared in<br />

the jewellery trade in 1989”<br />

Tourmaline’s other varying greens offer a pleasing alternative to<br />

the grass green of peridot and the deep, rich green of emerald,<br />

the other industry ‘heavyweights’.<br />

These include pastel hues, blue-green ‘teal’ varieties and a<br />

rare vivid green referred to as ‘chrome dravite’ – coloured by<br />

vanadium, chromium and sometimes both.<br />

Peridot and lapis lazuli<br />

Peridot is the gem-quality variety of olivine and its colour ranges<br />

from green, greenish-yellow, yellowish-green, greenish-brown<br />

and brown, depending on its chemical composition.<br />

Pure green gemstones are rare and most peridot exhibit a<br />

yellowish undertone.<br />

The intensity of peridot’s green hue is determined by the varying<br />

amount of iron in its composition; iron influences a yellowbrown<br />

tone within the gemstone while traces of chromium and<br />

nickel – replacing iron and magnesium – are said to give peridot<br />

a bright-green colour.<br />

Ph: +61 3 9587 1215<br />

Email: info@stonesandsilver.com.au<br />

stonesandsilver.com.au


Colour Investigation | BLUE & GREEN GEMSTONES<br />

L to R: Graff, Gucci, Neha Dani, Van Cleef & Arpels<br />

Intriguingly, pallasites are one kind of stony-iron<br />

meteorite that contain abundant crystalline olivine,<br />

sometimes of gem-quality peridot – making it an ‘extraterrestrial’<br />

gemstone!<br />

The crystals are generally small and, due to the high<br />

iron content of the surrounding iron-nickel matrix, are<br />

typically yellowy-brown in colour.<br />

The lustrous texture and luminous<br />

colours of polished jade have been<br />

prized for thousands of years.<br />

Ancient cultures in North, Central<br />

and South America, New Zealand,<br />

Asia and Europe valued jade for its<br />

beauty, hardness and durability”<br />

Some pallasitic peridot specimens are higher in carat<br />

weight and present an attractive green colour favourable<br />

for faceted gemstones.<br />

The finest examples of peridot are unearthed in Myanmar<br />

(Burma) and Pakistan, with the US state Arizona and<br />

China producing more reliable commercial quantities;<br />

they are also found in Australia, Vietnam, and some<br />

African nations.<br />

Admired since the dawn of civilisation, early records<br />

indicate the Ancient Egyptians mined a beautiful green<br />

gemstone from the island in the Red Sea called Topazios.<br />

The island, now known as St John’s Island, or Zabargad,<br />

remains to this day the oldest and longest-known source<br />

of gem-quality peridot.<br />

Another gemstone prized in the ancient world is lapis<br />

lazuli, often shortened to lapis, which gained its name<br />

from Latin and Persian origins – lazhuward meaning<br />

‘blue’ in Persian and lapis meaning ‘stone’ in Latin.<br />

GEMSTONE FACTS<br />

TANZANITE<br />

Tanzanite was<br />

discovered in<br />

1967; legend has<br />

it, a bushfire near<br />

Mount Kilimanjaro<br />

heated natural<br />

crystals, giving them<br />

tanzanite's signature<br />

purple-blue hue<br />

Tanzania is the only<br />

known source of this<br />

gemstone, with mines<br />

located in a 14km<br />

square radius<br />

The largest-ever rough<br />

tanzanite was found<br />

in June 2020 and<br />

weighed 9.2kg<br />

The gem has been highly prized for thousands of<br />

years, being used in jewellery, carvings, seals and<br />

decorative items.<br />

Lapis lazuli is an aggregate comprised primarily of<br />

lazurite, calcite and pyrite. Quality lapis consists mainly<br />

of lazurite – which gives the gem its intense blue colour<br />

– with small amounts of white calcite and pyrite.<br />

It is the metallic flash of pyrite against the deep blue<br />

of lazurite that makes it so attractive to gem collectors<br />

and jewellery artists.<br />

Under a microscope, lapis lazuli looks like the night<br />

sky – with depths of blue lazurite, a fine white haze of<br />

calcite and the starlike sparkle of pyrite.<br />

Lapis ranges in colour from greenish blue to rich royal<br />

blue and violet blue. The most prized – and valuable<br />

– is an intense royal blue featuring minute gold flashes<br />

of pyrite.<br />

Afghanistan is considered the most significant source<br />

of quality lapis. The gem has been mined there for<br />

thousands of years in a remote and inhospitable region,<br />

known historically as Bactria.<br />

Today, other sources are Lake Baikal in Siberia, Chile,<br />

Angola, Pakistan, Canada and Colorado in the US.<br />

Jadeite and nephrite<br />

The lustrous texture and luminous colours of polished<br />

jade have been prized for thousands of years.<br />

Ancient cultures in North, Central and South America,<br />

New Zealand, Asia and Europe valued jade for its<br />

beauty, hardness and durability – properties that made<br />

it suitable for use in implements, jewellery, regalia and<br />

decorative items.<br />

Wearers believed jade endowed them with long life,<br />

good health and fortune, and today jade jewellery still<br />

has strong traditional associations in many cultures.<br />

The name ‘jade’ is the commercial term used for jadeite<br />

68 | <strong>September</strong> <strong>2021</strong><br />

<strong>Jeweller</strong>y Theatre


Early records<br />

indicate<br />

the Ancient<br />

Egyptians<br />

mined a<br />

beautiful green<br />

gemstone”<br />

and nephrite. Despite their similar appearance, these minerals<br />

have distinct gemmological properties.<br />

Both are silicates; jadeite is a sodium and aluminium silicate,<br />

while nephrite is a calcium and magnesium silicate. Both are<br />

polycrystalline in structure, with many interlocking microscopic<br />

crystals, making them some of the toughest materials in the<br />

gem world.<br />

So, what is the difference between the two?<br />

Typically, the name jadeite is associated with a rich deep green<br />

colour, but the gem is found in many hues and is often mottled. The<br />

richer and more even the colour, the higher the value.<br />

In China, jadeite of fine green colour and translucency was once<br />

reserved for the Emperor’s court and is known as ‘imperial jade’.<br />

The presence of iron creates the green hue.<br />

Jadeite has a hardness of 6.5-7 on Mohs’ scale, making it suitable<br />

for use in a range of jewellery. However, it is the gem’s tenacity and<br />

capacity to be carved and fashioned, along with its vitreous lustre,<br />

that makes it attractive to jewellers and gem carvers.<br />

With a hardness of 6–6.5 on Mohs’ scale, nephrite is a little softer<br />

than jadeite, which has a hardness of 6.5–7. However, it has a higher<br />

tenacity and is regarded as the ‘toughest’ of gems.<br />

This property of toughness makes it suitable not only in a range of<br />

jewellery, but also for use in gem carvings and decorative items.<br />

Nephrite that is translucent with a solid green colour is the most<br />

valuable. Mottling of colour or the presence of dark mineral<br />

inclusions lessens the gem’s value.<br />

Nephrite is a more common mineral than jadeite, and its major<br />

sources are New Zealand, Mexico, Peru, British Columbia and<br />

Taiwan. It is the official state mineral of Wyoming.<br />

To the Maori of New Zealand, nephrite – called pounamu or<br />

greenstone – is an important gemstone found on the South Island<br />

around Otago.<br />

It has great cultural significance, used not only for adornments but<br />

also for practical uses, including making tools and weapons.<br />

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BLUE & GREEN<br />

Red Carpet Collection<br />

STARS SHINE IN COLOUR<br />

Gemstones in the Spotlight<br />

The A-list have given their seal of approval to statement gems – be inspired by these colourful jewellery pieces worn on the red carpet.<br />

4 More than 50 carats<br />

of intricately carved jade<br />

takes centre stage in the<br />

Naila earrings by jewellery<br />

designer Narcisa Pheres,<br />

accented with delicate<br />

pear-cut emeralds and white<br />

diamonds and set in 18-carat<br />

yellow gold.<br />

Harry Winston<br />

Narcisa Pheres<br />

SAPPHIRE – Zoey Deutch,<br />

Golden Globes 2020<br />

JADE AND EMERALD – Kelly Rowland,<br />

Spotify Secret Genius Awards 2018<br />

Lorraine Schwartz<br />

Bulgari<br />

Van Cleef & Arpels<br />

Tiffany & Co.<br />

EMERALD – Kendall Jenner, Vanity Fair<br />

Oscars Party 2018<br />

EMERALD – Esther Expósito, Cannes<br />

Film Festival <strong>2021</strong><br />

SAPPHIRE AND EMERALD – Margot<br />

Robbie, Academy Awards 2015<br />

TSAVORITE GARNET – Sophie Turner,<br />

Academy Awards 2016<br />

4 Part of the Gucci<br />

High <strong>Jeweller</strong>y Hortus<br />

Deliciarum Collection,<br />

these white gold earrings<br />

set with diamond and<br />

tsavorite garnet are<br />

inspired by the natural<br />

world, and feature<br />

Gucci's signature lion's<br />

head motif.<br />

Tiffany & Co.<br />

Gucci<br />

AQUAMARINE – Jessica Biel, Academy<br />

Awards 2014<br />

TSAVORITE GARNET – Jodie Turner-<br />

Smith, Cannes Film Festival <strong>2021</strong><br />

70 | <strong>September</strong> <strong>2021</strong>


Tiffany & Co.<br />

AQUAMARINE – Gal Gadot, Academy<br />

Awards 2018<br />

4 Combining carved<br />

emeralds and cabochon rubies<br />

with sapphire beads and white<br />

diamonds, these statement<br />

chandelier earrings hail from<br />

Cartier’s iconic Tutti Frutti<br />

Collection.<br />

3Taking its cues from<br />

Tiffany & Co. jewellery of<br />

the Art Deco era, this lariat<br />

chain necklace – designed<br />

by Reed Krakoff – comes<br />

from the jewellery house's<br />

2018 Blue Book Collection.<br />

It features show-stopping<br />

icy aquamarines, offset by<br />

pavé white diamonds and<br />

platinum.<br />

Arbe – Family owned,<br />

American know how.<br />

For decades Arbe has been<br />

manufacturing Industry trusted<br />

machinery built to stand the<br />

test of time. Products including<br />

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electroplating equipment, magnetic<br />

polishers, lights…..and extensive<br />

range of other products assisting in<br />

the manufacturing process.<br />

Arbe’s quality so renowned their<br />

machines are manufactured for<br />

other industry brands, if you can’t<br />

beat them, join them.<br />

Cartier<br />

SAPPHIRE AND EMERALD – Rachel<br />

Brosnahan, amfAR Gala <strong>2021</strong><br />

3 Nestled amongst<br />

Padparadscha<br />

sapphires and white<br />

diamonds, opulent<br />

white opals meet<br />

27 carats of Paraìba<br />

tourmaline in this<br />

18-carat white gold cuff<br />

from the Chopard Red<br />

Carpet Collection.<br />

Sole distribution rights for Australia,<br />

New Zealand and Pacific.<br />

Chopard<br />

PARAÌBA TOURMALINE – Carla Bruni,<br />

Cannes Film Festival <strong>2021</strong><br />

Contact us at sales@cjservice.com.au<br />

or call Craig - 0408 882 978 or<br />

Steve - 0408 864 640<br />

CJSERVICE.COM.AU


Stars shine in colour | GEMSTONES IN THE SPOTLIGHT<br />

Red Carpet ‘Gemstones in the Spotlight’ continued...<br />

4 These show-stopping<br />

teardrop earrings by US<br />

designer Irene Neuwirth<br />

feature stunning faceted<br />

lapis lazuli and onyx set<br />

in white gold, accented<br />

with rose-cut white<br />

diamonds and<br />

diamond pavé.<br />

Sylvia & Cie<br />

Irene Neuwirth<br />

JADE – Jennifer Lawrence, BAFTA<br />

Awards 2018<br />

LAPIS LAZULI – Anna Gunn, SAG Awards<br />

2014<br />

Tiffany & Co.<br />

Lorraine Schwartz<br />

Fernando Jorge<br />

Jared Lehr<br />

AQUAMARINE – Kim Kardashian, Tiffany<br />

& Co. Event 2018<br />

TURQUOISE – Sofìa Vergara, Golden<br />

Globes 2014<br />

JADE – Emilia Clarke, Emmy Awards 2018<br />

PERIDOT – Nikki Reed, Elton John<br />

Oscars Viewing Party 2019<br />

4 Aquamarine is the star<br />

of the show in this jewellery<br />

suite by Chopard, mixing<br />

chandelier earrings from the<br />

High <strong>Jeweller</strong>y Collection<br />

with a cocktail ring from the<br />

Temptations Collection. The<br />

earrings feature 30.96 carats of<br />

pear-shape aquamarines set<br />

in blue titanium, while the ring<br />

is set with a 5.11-carat pearshaped<br />

aquamarine accented<br />

with tanzanite, amethyst, and<br />

diamonds.<br />

Harry Winston<br />

Chopard<br />

SAPPHIRE – Helen Mirren, Academy<br />

Awards 2018<br />

AQUAMARINE AND TANZANITE – Emily<br />

Blunt, Academy Awards 2018<br />

72 | <strong>September</strong> <strong>2021</strong>


The Blush Pink range is an epitome<br />

of charm and opulence intertwined<br />

together. Delicate and utterly<br />

elegant, it features affordable styles<br />

that retain an exquisite sense of<br />

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Chopard<br />

PARAÌBA TOURMALINE – Salma Hayek,<br />

Golden Globes 2020<br />

Bulgari<br />

SAPPHIRE – Tina Fey, Academy<br />

Awards 2016<br />

5 From the Bulgari High<br />

<strong>Jeweller</strong>y Collection, this<br />

Art Deco-inspired necklace<br />

features nine cushion-cut<br />

Sri Lankan sapphires paired<br />

with 18 marquise diamonds,<br />

round brilliant-cut diamonds,<br />

trapezoidal and pavé diamonds,<br />

set in platinum.<br />

Chopard<br />

EMERALD – Julianne Moore, Cannes Film<br />

Festival 2019<br />

David Webb<br />

JADE – Naomie Harris, 'Rampage'<br />

Premiere 2018<br />

E pink@samsgroup.com.au W samsgroup.com.au P 02 9290 2199


BUSINESS<br />

Strategy<br />

What customers want next:<br />

Decoding the clues<br />

JEANNIE WALTERS offers strategies for businesses as they adapt for the future<br />

retail environment – and rapidly shifting consumer behaviour.<br />

Human behaviour is notoriously difficult<br />

to predict; sophisticated modelling and<br />

data analysis can help, but these are<br />

typically based on past behaviour.<br />

Past behaviour might be helpful for<br />

predicting future success if all variables<br />

remain the same, but what if the context<br />

– or the entire environment – changes<br />

over time?<br />

In one study by analytics firm Concentric,<br />

99 per cent of business leaders reported<br />

doing some kind of forecasting, yet only<br />

14 per cent stated they were “effective”<br />

at doing so.<br />

It’s the secret everyone knows – predicting<br />

the future is hard.<br />

Many organisations and businesses are<br />

benefiting from machine learning and<br />

artificial intelligence tools to isolate data<br />

points that can help predict the next<br />

actions of customers, as well as the<br />

likelihood of desired outcomes.<br />

But like any form of analysis, these<br />

methodologies rely on good data – and<br />

many businesses are still ‘playing catch<br />

up’ on getting the inputs right.<br />

So, what can a business leader do<br />

to look ahead and predict future<br />

customer behaviour?<br />

Searching for clues<br />

The first step in predicting customer<br />

behaviour is a simple one – know your<br />

customers and their goals.<br />

Business owners and leaders are regularly<br />

told to improve customer experience in<br />

order to increase sales, but with little<br />

instruction or information on how to do so.<br />

There is no data, there is no defined<br />

goal, and in some cases, there is no<br />

shared understanding of what ‘customer<br />

experience’ is!<br />

Therefore, it’s important to start with<br />

the foundations.<br />

Firstly find out what you can about your<br />

customers. If you have data, such as<br />

purchasing history, use it; if you don’t,<br />

collect whatever feedback you can from<br />

social media and product reviews.<br />

Next, consider your customers’ lives; don’t<br />

get stuck in the ‘our customers only care<br />

about our product’ fantasy!<br />

Too often, I<br />

see business<br />

owners and<br />

leaders struggle<br />

with predictions<br />

because<br />

they create a<br />

universe where<br />

the customer<br />

has one goal<br />

– to use the<br />

company’s<br />

product<br />

To look for clues about how customers may<br />

behave in the future, it’s vital to understand<br />

their present reality.<br />

That means looking beyond basic<br />

demographics or job titles to knowing how<br />

they get their information, the needs their<br />

community has, and other brands to which<br />

they are loyal.<br />

What about their stage of life? Are they<br />

dealing with school schedules or planning<br />

for retirement?<br />

Keep in mind the life they’ve led most<br />

recently; the pandemic created a different<br />

daily routine for most people.<br />

Observe broader trends<br />

Almost without exception, most business<br />

owners and leaders tell me their industry is<br />

unique, but there are absolutely trends that<br />

apply across almost every industry.<br />

For example, a very significant customer<br />

experience trend for the future, across the<br />

market, is a focus on health and safety.<br />

Business owners must look for the trends<br />

and then plan around them.<br />

74 | <strong>September</strong> <strong>2021</strong>


Business Strategy<br />

Don’t automatically ignore something<br />

because it doesn’t immediately apply to<br />

your industry – eventually, it might!<br />

Another trend is people relocating from<br />

cities to suburbs and regional areas during<br />

the pandemic.<br />

Remote working allowed for this flexibility<br />

and people shifted their lives in order to<br />

accommodate more space and desirable<br />

outdoor living.<br />

What does that mean for your business? It<br />

could mean a lot in terms of store location,<br />

delivery expectations, and even the product<br />

selection on offer.<br />

Too often, I see business owners and<br />

leaders struggle with predictions<br />

because they create a universe where<br />

the customer has one goal – to use the<br />

company’s product.<br />

That’s not how people work, and the<br />

more you can truly pay attention to their<br />

overall environment, the more successful<br />

you’ll be in finding and acting on those<br />

customer clues.<br />

Applying knowledge<br />

Now that you have an idea of the current<br />

consumer environment, what can you do<br />

with these insights?<br />

• Mapping the future customer’s journey<br />

– Who is the customer in one year or<br />

five? What are their needs and<br />

expectations? How can you adapt your<br />

customer journey accordingly?<br />

Journey mapping is an exercise where<br />

a diagram is used to illustrate how a<br />

customer interacts with a business.<br />

The journey starts when the customer<br />

identifies a specific need and progresses<br />

through to researching product options<br />

to meet that need, visiting a bricks-andmortar<br />

or online store, making their<br />

purchase, using the product, seeking<br />

customer service support from the<br />

business, and repeating the purchase.<br />

The way a customer discovers and<br />

purchases from your business in the future<br />

may be very different from how they do<br />

so today; mapping allows you to identify<br />

the areas where you should prioritise<br />

development and investment.<br />

• Fix the future ‘pain points’ – One of<br />

the key elements of customer journey<br />

mapping is identifying ‘pain points’ – the<br />

negative experiences that prevent a<br />

shopper from purchasing or<br />

re-purchasing from a business.<br />

These can include being unable to find the<br />

correct size, an inability to find a suitable<br />

product within budget, or waiting too long<br />

for a response from a business’ customer<br />

service staff.<br />

Compare your current and future<br />

customer journey maps – are there<br />

any existing pain points that could worsen<br />

with time?<br />

For example, more customers are now<br />

comfortable with using their mobile<br />

phone to get information while they’re<br />

shopping in-person, so a store’s slow<br />

Wi-Fi connection could present a barrier<br />

to purchase.<br />

Consider how a customer will use<br />

their device in-store and develop<br />

the environment to support that<br />

new behaviour.<br />

• Invite employee feedback – Employees<br />

have great ideas and often see customer<br />

expectations changing in real time;<br />

they need a way to communicate these<br />

observations and ideas with management.<br />

Customer support staff often hear about<br />

frustrations caused by comparisons to the<br />

competition, such as wait times.<br />

For example, they may say things like,<br />

“Even my car mechanic has a mobile<br />

update system now – why do I have to call<br />

and wait on hold?”<br />

It is important for businesses to be<br />

exposed to all types of feedback, yet<br />

staff may be discouraged from reporting<br />

negative observations.<br />

Keeping your finger on the pulse of change<br />

means looking ahead and getting the<br />

support you need to act quickly.<br />

Don’t ignore the future<br />

Several years ago, IT firm Cisco released<br />

a report about what healthcare providers<br />

and consumers wanted from healthcare.<br />

One of the findings that stood out was the<br />

FINDING THE<br />

ANSWERS<br />

Dive into data<br />

Collect and use<br />

information<br />

about your<br />

customers to<br />

understand not<br />

just what, but<br />

how and why<br />

they buy<br />

Consider the<br />

whole picture<br />

Research<br />

broader market<br />

trends and<br />

use journeymapping<br />

to<br />

identify pain<br />

points<br />

Act decisively<br />

Turn insights<br />

into action and<br />

make changes<br />

before serious<br />

problems occur<br />

idea that virtual doctor visits – also known<br />

as telehealth – were perfectly acceptable to<br />

many consumers.<br />

The study found that while consumers<br />

still depend heavily on in-person medical<br />

treatments, given a choice between virtual<br />

access to care and human contact, three<br />

quarters said access to care was more<br />

important than physical contact with their<br />

care provider.<br />

Consumers surveyed in the study were<br />

overwhelmingly comfortable with the use of<br />

technology for the clinician interaction.<br />

I read this study in 2013 and thought,<br />

doesn’t this apply to everything?<br />

Everyone is living more frenzied and<br />

complicated lives than ever and while<br />

technology gives us access to services,<br />

it also keeps us tethered to jobs and<br />

obligations like never before.<br />

Therefore, convenience continues to be a<br />

top-ranking driver for customer behaviour<br />

and loyalty. Healthcare is no different, so<br />

why not offer video doctor visits for care<br />

that can be provided in that way?<br />

Yet many healthcare providers ignored this<br />

trend; just think of how many GPs were<br />

still unprepared for the surge in telehealth<br />

consultations in 2020, when the COVID-19<br />

pandemic began!<br />

They were scrambling to set up basic<br />

video connections, and many still required<br />

patients to call their office to schedule<br />

those appointments.<br />

Patients had been asking for that type<br />

of service for nearly a decade, and they<br />

missed or dismissed the clues.<br />

It was – and is – simpler and less expensive<br />

to simply keep doing what’s always been<br />

done, until it isn’t.<br />

Inertia is a powerful force, and it is all<br />

too easy to just let things happen the way<br />

they always have. Leaders look ahead and<br />

consider the clues, then, most importantly,<br />

they act.<br />

JEANNIE WALTERS is founder and<br />

CEO of Experience Investigators. Learn<br />

more: experienceinvestigators.com<br />

<strong>September</strong> <strong>2021</strong> | 75


BUSINESS<br />

Selling<br />

What is a store without sales?<br />

A strong sales culture should be the first priority of retail business owners, yet many are<br />

lacking this focus – or a plan for improvement, writes JOSH STRUTT.<br />

The secret to a focused, motivated and<br />

goal-orientated retail team is not found<br />

on the sales floor – in fact, it starts in the<br />

back room.<br />

When assessing a retail store’s<br />

performance, there is a tell-tale sign<br />

within this room that reveals the true<br />

focus of the business: clear, obvious sales<br />

targets and sales performance indicators,<br />

as well as customer service scores, are<br />

nowhere to be seen.<br />

Retail is a competitive business – yet<br />

highlighting the performance of sales<br />

staff seems to be an area of question to<br />

some retailers and some do not even set<br />

sales goals.<br />

However, without a goal and clear<br />

objectives, staff are not motivated to<br />

achieve. It's like a sports team; without the<br />

primary objective to win the game, what is<br />

the point in playing in the first place?<br />

‘Fit’ businesses put sales at the centre of<br />

their operations; if senior managers are<br />

not discussing sales in general and with<br />

individual staff, it is unrealistic to think staff<br />

will make sales their number-one priority.<br />

Creating a sales culture<br />

Below are a few key questions to determine<br />

if a store has a ‘fit’ sales culture and<br />

identify areas that could be improved.<br />

As a business owner, do you:<br />

• Have weekly and daily sales targets<br />

displayed in the back room for all staff?<br />

• Employ managers who are passionate<br />

about increasing sales?<br />

• Benchmark key performance indicators<br />

such as items per sale, average spend and<br />

conversion – and measure them?<br />

• Hold daily start-up meetings to<br />

motivate staff, introduce new products and<br />

promotions and allocate targets?<br />

• Measure sales performance by product<br />

category to product against stock holding?<br />

• Have an incentive program that rewards<br />

sales achievements?<br />

Set clear sales targets and ensure all staff work towards them.<br />

• Have a sales education program that is<br />

tailored to your business type?<br />

• Have individual coaching sessions with<br />

staff based on their performance?<br />

• See team member’s individual sales<br />

increasing with their experience and<br />

training?<br />

Hire to win<br />

Another way to determine if you have a<br />

strong sales culture is by asking managers<br />

and staff to anonymously nominate their<br />

top three goals for the business.<br />

If they do not nominate increasing sales as<br />

their number-one goal, it may be time to<br />

introduce further training, conferences, or<br />

new recruitment practices.<br />

As the old adage goes, ‘Recruit the will,<br />

teach the skill.’ Enthusiasm can be<br />

fostered and encouraged, but if your new<br />

staff member isn’t motivated from their<br />

first day, will they be motivated in a year?<br />

Clear, standardised recruitment guidelines<br />

help to create a team that is focused on a<br />

common goal.<br />

It's also a good idea to examine your<br />

business’ turnover rate and the reasons<br />

staff left and when. There is almost always<br />

a common trend, and it may come down to<br />

inconsistent recruitment – that is, hiring<br />

the wrong people.<br />

‘Fit’ businesses<br />

put sales at the<br />

centre of their<br />

operations; if<br />

senior managers<br />

are not<br />

discussing sales<br />

in general and<br />

with individual<br />

staff, it is<br />

unrealistic to<br />

think staff will<br />

make sales their<br />

number-one<br />

priority<br />

Additionally, more than 70 per cent of exit<br />

surveys conducted by Retail Doctor Group<br />

(RDG) showed that staff who initiated<br />

leaving did so because they did not feel<br />

engaged with the business.<br />

Engaged employees feel a sense of<br />

purpose, contribution and growth in a<br />

business. RDG research tells us that<br />

engaged, motivated staff deliver an<br />

average 20 per cent higher sales and<br />

margin improvement.<br />

They are also more loyal, have lower<br />

turnover and are more productive.<br />

Education and engagement<br />

Are your sales staff fully confident in<br />

the product range, and the features and<br />

benefits of the products they are selling?<br />

If the answer is not a resounding yes,<br />

more training – such as practicing sales<br />

scenarios at a weekly team meeting and<br />

educating staff on cross- or upselling<br />

strategies – is essential.<br />

Once you introduce new staff, ensure<br />

they have a clear mentor or senior staff<br />

member to guide them, rather than a<br />

direct manager or boss. This ‘go-to person’<br />

should induct the new staff member into<br />

the business’ sales focus.<br />

Match your new employee with someone<br />

with whom they are comfortable asking<br />

questions and expressing their concerns,<br />

and who is able to communicate effectively.<br />

Putting these practices in place not<br />

only fosters a strong sales culture, but<br />

also creates a positive atmosphere of<br />

improvement and connection.<br />

Without both, it is very difficult – if not<br />

impossible – for a business to increase<br />

sales and maintain those improvements.<br />

JOSH STRUTT is Retail Doctor Group’s<br />

strategy analyst. His background is in<br />

maximising operational efficiency to<br />

drive growth. Visit: retaildoctor.com.au<br />

76 | <strong>September</strong> <strong>2021</strong>


BUSINESS<br />

Management<br />

Is there ever a good way to deliver bad news?<br />

From performance criticism to budget cuts, bad news is a part of business –<br />

but there are ways to mitigate and manage the damage, writes BRI WILLIAMS.<br />

In Australia, we have experienced<br />

various degrees of lockdown across<br />

the country over the past year, and our<br />

political leaders have been grappling<br />

with how best to share bad news.<br />

The NSW government started with a<br />

relatively light-touch approach that<br />

has become more stringent the longer<br />

lockdown has lasted. In Victoria, the<br />

message and conditions were restrictive<br />

from the get-go.<br />

While I won’t go into the relative merits<br />

of each lockdown, I do want to reflect on<br />

the psychology of sharing and receiving<br />

bad news.<br />

Given every business owner or leader will<br />

have to be the bearer of bad news at some<br />

time or another, what does science tell us<br />

about how to best approach it?<br />

Forget the 'sandwich'<br />

A popular approach to giving bad news,<br />

particularly in performance reviews, is to<br />

‘sandwich’ the negatives between more<br />

positive information.<br />

An example might be, “I really liked how<br />

you ran that last project, but I think you<br />

need to work harder on your presentation<br />

skills. All-in-all, I think you are a great<br />

team player.”<br />

It’s a popular approach because it<br />

makes the deliverer feel better about<br />

giving criticism; it starts positive and<br />

ends positive, thereby avoiding any<br />

social awkwardness.<br />

The problem is, most people are waiting<br />

for the “but” – they miss any of the<br />

good news you want them to hear. This<br />

is largely due to negativity bias, which<br />

means we are wired to pay attention to<br />

the negative more than the positive.<br />

You are also confusing the message and<br />

diluting its importance.<br />

Instead, try framing a performance<br />

review discussion by saying, “Thanks for<br />

meeting with me. Today I want to cover<br />

two aspects of your performance, as I see<br />

it. First, we’ll cover areas I’d like to see<br />

Being the bearer of bad news is all about managing emotions.<br />

some improvement, and second, we’ll<br />

talk through where you are excelling.<br />

Does that sound good?”<br />

This approach still has enough of the<br />

social niceties and it ends on a high, but<br />

it deliberately demarcates the negatives<br />

and positives.<br />

Anchor expectations<br />

There is a reason many of us seek to<br />

under promise and over deliver – it’s a<br />

form of expectation management.<br />

Anchoring expectations low means you<br />

can come back with good news later,<br />

which is infinitely more pleasurable than<br />

anchoring high and having to return with<br />

bad news, which is a double whammy –<br />

not only was your original estimate off,<br />

but you failed to deliver as well!<br />

However, anchoring low isn’t without<br />

its problems. Firstly, if you do it all the<br />

time to the same people, they will start<br />

to second-guess your ability to estimate<br />

accurately, and alter their expectations.<br />

Secondly, if your anchor is unpalatable,<br />

you may be dismissed outright. For<br />

example, telling someone a repair will<br />

take you two months to complete instead<br />

of four weeks may mean they’ll choose<br />

someone else.<br />

Thirdly, people will plan around your<br />

anchor, so if it’s too outlandish you might<br />

end up annoying them with budgeting or<br />

productivity gaps – put simply, delivering<br />

Anchoring<br />

expectations<br />

low means you<br />

can come back<br />

with good news<br />

later, which is<br />

infinitely more<br />

pleasurable than<br />

anchoring high<br />

and having to<br />

return with bad<br />

news – however,<br />

anchoring low<br />

isn't without its<br />

problems<br />

a project two weeks before you said you<br />

would may not be good news!<br />

This low anchor has been a challenge<br />

with lockdowns, particularly in NSW.<br />

Restrictions started in a light-touch,<br />

advisory way before being progressively<br />

strengthened. As a result, the more<br />

stringent restrictions felt worse for<br />

people psychologically.<br />

In Victoria, tough restrictions, such as<br />

a 5km boundary and a curfew, set a<br />

high anchor point; that meant the news<br />

improved as restrictions were relaxed<br />

and more freedoms allowed.<br />

Experience is not the problem<br />

Psychologist, author and Nobel laureate<br />

Daniel Kahneman has described a<br />

psychological phenomenon called<br />

the ‘peak-end rule’ – human beings<br />

remember moments of peak emotion and<br />

the end of an experience.<br />

Applying this to bad news, the biggest<br />

takeaway is to focus on how you make<br />

people feel and how you leave them.<br />

Think back to the performance review<br />

example; the criticism you share will<br />

likely be the most intense part of the<br />

experience for the employee – the ‘peak’.<br />

To manage their emotional response,<br />

be direct and assured, but also<br />

compassionate. Remember that you<br />

can use positive framing for bad news –<br />

something like, “This is where I see your<br />

greatest opportunity for development” –<br />

to signal your support for them.<br />

The end is also important; leaving the<br />

employee with clear examples of what<br />

they are doing well means they will have<br />

the confidence and reassurance from you<br />

to continue to perform.<br />

BRI WILLIAMS is founder of People<br />

Patterns, a specialist consultancy<br />

that applies behavioural science to<br />

everyday business issues. Visit:<br />

www.briwilliams.com<br />

<strong>September</strong> <strong>2021</strong> | 77


BUSINESS<br />

Marketing & PR<br />

How to create a winning loyalty program<br />

for your customers<br />

Loyalty programs offer myriad benefits for businesses, explains SIMON DELL,<br />

who advises the ins and outs of strategies to keep shoppers coming back for more.<br />

There are few things more valuable to a<br />

business than loyal customers, but how do<br />

you attract those shoppers and keep them<br />

coming back?<br />

Naturally, delivering great service and<br />

products is one way – but a loyalty program<br />

is even better.<br />

Offering loyalty benefits is a great way to<br />

say 'thank you' to returning shoppers, as<br />

well as attracting new ones – and there are<br />

other benefits for businesses too.<br />

Create a connection<br />

Today, customers want to make an<br />

emotional connection with brands, which<br />

is why you may have noticed so many<br />

businesses prioritising open and honest<br />

communication with shoppers.<br />

The business tells their story, in the hopes<br />

that customers will identify with them and<br />

support them accordingly.<br />

Loyalty programs provide a platform for<br />

that long-lasting connection; it is not just<br />

about ‘freebies’, discounts and rewards,<br />

but also communicating and connecting<br />

with customers in a positive way.<br />

Harness technology<br />

Traditionally, a loyalty program may have<br />

been confined to email communication, or<br />

even ‘snail mail’!<br />

Now, businesses can provide an omnichannel<br />

experience for their customers.<br />

When setting up a loyalty program, these<br />

are some of the ever-expanding points<br />

of interaction at which you can provide<br />

benefits for, and communicate with,<br />

customers:<br />

• Apps – Send alerts, discounts, or offers<br />

to customers through your business’ app;<br />

alternatively, an app can simply offer a fun<br />

and convenient way to interact<br />

• Social media – Social media is now a<br />

necessity for loyalty programs. It is not<br />

only convenient, but also gives customers<br />

a chance to share and promote your<br />

business to like-minded shoppers<br />

• Email – We all hate spam, but when your<br />

Rewarding customers is more complex than it first appears.<br />

customers are engaged enough to willingly<br />

seek email offers and communication, take<br />

the opportunity! Email is a great way to<br />

announce sales, introduce new products,<br />

educate customers, or offer exclusive<br />

discounts<br />

• Text messages – In advertising terms,<br />

using text messages is a relatively new<br />

phenomenon, but it’s very effective. Use<br />

texts to let your loyal customers know<br />

about special offers and limited time<br />

opportunities, but be careful not to come<br />

across like spam or a scam!<br />

This omni-channel approach lets you show<br />

customers they are valued and makes<br />

them feel included. It also keeps your<br />

business top-of-mind, allowing you to take<br />

advantage of opportunities to secure a sale<br />

at any time of the day.<br />

Understand what customers want<br />

Delivering value is one of the key<br />

components of any loyalty program.<br />

When creating your loyalty program,<br />

research what your customers respond<br />

to – whether it be exclusive sales, birthday<br />

discounts, or earning points.<br />

Either in-store or online, you can also<br />

reward customers with a special gift at<br />

the point of purchase. This shows genuine<br />

appreciation and asks nothing of the<br />

customer in return.<br />

Loyalty<br />

programs are of<br />

course designed<br />

to increase<br />

customer<br />

loyalty and keep<br />

people shopping<br />

with you, with<br />

the end goal to<br />

generate more<br />

sales and profits<br />

– but it should<br />

never appear<br />

that way<br />

Disguise the ‘sell’<br />

Loyalty programs are of course designed<br />

to increase customer loyalty and keep<br />

people shopping with you, with the end goal<br />

to generate more sales and profits – but it<br />

should never appear that way.<br />

Building customer loyalty is about<br />

making genuine connections and showing<br />

appreciation for continued business.<br />

You should absolutely offer special deals<br />

and benefits to loyalty program customers,<br />

but only if it delivers real value to them.<br />

An example of this is tier-based loyalty<br />

programs. This system can work well from<br />

a psychological perspective, as customers<br />

will want to maintain their current tier – or,<br />

if they are just shy of the next tier, spend a<br />

little more to reach that threshold.<br />

However, the system can fail if reaching the<br />

next tier does not deliver a tangible benefit.<br />

Similarly, consumers respond better<br />

to promotions that feel special and<br />

personalised – for example, birthdaybased<br />

rewards emails have a far higher<br />

transaction rate and generate more<br />

revenue than standard promotional emails,<br />

according to research by Experian.<br />

Create meaningful interactions<br />

Encouraging a customer to be loyal to<br />

your business is a long and ever-changing<br />

process. All customers value different<br />

things so don’t be afraid to interact openly<br />

and honestly with them.<br />

Ask what they want, give them a say in new<br />

products or ideas, make your interactions<br />

meaningful, and people will take a genuine<br />

interest.<br />

The rewards of a loyalty program are a<br />

bonus and a way for you to thank them for<br />

their contribution.<br />

SIMON DELL is co-founder and CEO<br />

of Cemoh, a Brisbane-based firm that<br />

provides marketing staff on demand.<br />

He specialises in digital marketing and<br />

brand management. Visit: cemoh.com<br />

78 | <strong>September</strong> <strong>2021</strong>


BUSINESS<br />

Logged On<br />

The simplified guide to digital marketing<br />

BETH WALKER presents a concise guide to the world of digital marketing for business<br />

owners, from content marketing to SEO and social media.<br />

When I tell people I work in digital<br />

marketing, they often respond by saying<br />

they don't want to sell their products or<br />

services on social media.<br />

This reaction is understandable.<br />

These days, social media isn't always kind,<br />

and the algorithms used to determine which<br />

accounts and posts reach the most eyes<br />

are unpredictable.<br />

For this reason, I advise businesses to<br />

think of social media as the icing on<br />

the multi-layered cake of their digital<br />

marketing strategy.<br />

One definition of digital marketing is that<br />

it is the strategy of using the internet to<br />

market a business.<br />

The goal of digital marketing should be to<br />

create and optimise information that helps<br />

a business’ ideal customers understand<br />

everything about the business, which then<br />

makes them more likely to trust – and<br />

therefore purchase – from that business.<br />

It is a broad concept, and includes content<br />

marketing, search engine optimisation<br />

(SEO), social media marketing, website<br />

development and design, pay-per-click<br />

(PPC) advertising, lead generation, lead<br />

nurturing, and email marketing.<br />

These elements can be grouped roughly<br />

into two sections – content marketing and<br />

website development.<br />

Content marketing<br />

Content is the most time-consuming and<br />

often the most expensive part of a digital<br />

marketing strategy but it is key to engaging<br />

and exciting potential customers.<br />

When a business provides valuable<br />

information and keeps its online audience<br />

informed about its activities, it adds value.<br />

There is a lot of ‘noise’ on the internet and<br />

content marketing helps you to distinguish<br />

your business as a space where customers<br />

won't have their time wasted.<br />

As the business owner, you will know the<br />

types of content your customers need.<br />

Using keywords, you can create content<br />

Digital marketing is a broad concept with many different elements.<br />

about the most important topics for<br />

your business.<br />

When you develop a library of assets<br />

that are well-written or produced,<br />

authoritative, relevant, and attract your<br />

audience's attention, you will quickly<br />

become an authority in your field.<br />

Content marketing assets include:<br />

• Web page content<br />

• Blog posts<br />

• Emails<br />

• Infographics<br />

• Whitepapers<br />

• E-books<br />

• Videos<br />

• Podcasts<br />

• How-to guides<br />

• Webinars<br />

Content marketing also includes social<br />

media, lead generation, lead nurturing,<br />

and email marketing.<br />

Website development<br />

Your most important digital asset is<br />

your website. It is vital to have a website<br />

that presents a clear message and has<br />

easy navigation.<br />

User experience is something that can't<br />

The goal<br />

of digital<br />

marketing<br />

should be to<br />

create and<br />

optimise<br />

information<br />

that helps a<br />

business’ ideal<br />

customers<br />

understand<br />

everything<br />

about the<br />

business<br />

be overlooked, so it is critical to seek a<br />

visually appealing design.<br />

It's also necessary that your site is fully<br />

optimised for SEO, providing you with the<br />

best opportunities to rank highly in relevant<br />

Google searches.<br />

Incorporate SEO best practices into your<br />

website’s content, meta descriptions,<br />

and titles, incorporating key terms your<br />

customers – and potential customers – are<br />

using to search for businesses like yours.<br />

Finally, you'll need to connect your website<br />

to Google Analytics and Search Console<br />

– formerly known as Google Webmaster<br />

Tools – so you can ensure your site is being<br />

found on Google.<br />

Measurable results<br />

To ensure your digital marketing strategy is<br />

successful, it's important to analyse each<br />

element. This ensures your effort, time and<br />

resouces are actually working to connect<br />

you with your desired audience.<br />

However, the prospect of managing a digital<br />

marketing strategy may seem daunting, and<br />

you may want to seek further assistance.<br />

If you start searching for the terms and<br />

strategies highlighted in this article, you<br />

will find thousands of get-rich-quick<br />

pitches, hundreds of websites with people<br />

stating they are digital marketing experts,<br />

and just as many videos and webinars.<br />

Each will have a different way of doing<br />

things. So, who do you trust?<br />

If marketers are willing to teach you what<br />

they know to help you get started, that is a<br />

good sign. It is also a good idea to listen to<br />

a company that can prove its methodology<br />

with case studies.<br />

If a business cannot transparently show<br />

that its strategies work, why should you<br />

waste your time?<br />

BETH WALKER writes for US-based<br />

SMA Marketing, which specialises<br />

in digital marketing strategies for<br />

businesses. Visit: smamarketing.net<br />

<strong>September</strong> <strong>2021</strong> | 79


My Bench<br />

Rick Southwick<br />

Rick Southwick Bespoke <strong>Jeweller</strong>y, Sydney NSW<br />

Years in Trade 45 • Training Trained under Graham Whitehead in London and Rob Gardner in Sydney • First job Lambert & Freed, Sydney NSW, 1978<br />

• Other Qualifications Blues guitar<br />

SIGNATURE PIECE<br />

‘THE ORB'<br />

CUSTOM PIECE<br />

There are three divergent design elements I have combined in<br />

this ring. Firstly, and the core of the design is Victorian scroll<br />

work; second, and less obvious, is a subtle Egyptian touch with<br />

my interpretation of the god Anubis in the shoulders; and thirdly –<br />

and even less obvious – is the Louis XV furniture leg. The reversed<br />

leg features prominently in another of my signature styles.<br />

4FAVOURITE GEMSTONE I do have a fondness<br />

for green tourmalines, especially complemented<br />

with diamonds as they bring the rich, earthy colour<br />

to the fore.<br />

4FAVOURITE METAL It has to be platinum,<br />

which is a formidable metal but once understood<br />

can be turned into sculptural works with sweeping<br />

sharp edges and a clean, bright, natural<br />

white colour.<br />

4FAVOURITE TOOL Saw frame. I believe it to be<br />

a jeweller’s most important instrument and once<br />

mastered – I spent a full seven months training<br />

on it in London – allows for greater technical and<br />

creative depth.<br />

4BEST NEW TOOL DISCOVERY The Osada<br />

Micromotor Drill. You have total control over speed<br />

variations, allowing delicate work that is difficult<br />

to achieve with confidence on a standard flexible<br />

shaft drill.<br />

4BEST PART OF THE JOB Designing and creating<br />

jewellery. Full stop.<br />

4WORST PART OF THE JOB Creative block – it’s<br />

like walking through a desert!<br />

4BEST TIP FROM A JEWELLER I had two mentors<br />

– Graham Whitehead in London and Rob Gardner<br />

in Sydney – who both instilled in me that designing<br />

and creating jewellery is a holistic experience.<br />

When applicable, allow a design to evolve while<br />

creating it. That freedom is liberating.<br />

4BEST TIP TO A JEWELLER Find mentors who<br />

have the skills you want to learn, even if that<br />

means going halfway round the world and walking<br />

door-to-door to find them!<br />

4BIGGEST HEALTH CONCERN ON THE BENCH<br />

Posture is a key to longevity. The bench is<br />

an extension of the jeweller, so it should be<br />

ergonomically set up for ease of use and fluidity.<br />

4LOVE JEWELLERY BECAUSE It has given me<br />

a career spanning the globe, learning Victorian<br />

jewellery-making skills in London and the<br />

intricacies of style and proportion in Sydney, and<br />

has led me to tapping into my own ‘creative well’.<br />

I couldn’t imagine doing anything else.<br />

80 | <strong>September</strong> <strong>2021</strong>


OPINION<br />

Soapbox<br />

Regulation is stifling Australia’s<br />

artisanal gemstone miners<br />

An avalanche of bureaucracy and rising costs are burying small-scale mining<br />

businesses and crushing a vibrant industry’s potential, writes LILO STADLER.<br />

Australia’s gemstone mining industry<br />

– ranging from our unique opal to<br />

parti-colour sapphire, chrysoprase and<br />

emerald – is largely made up of smallscale<br />

miners, many of which are either<br />

sole traders or family businesses.<br />

Sadly, their job is becoming more and more<br />

difficult because of the government.<br />

Both levels of government – state and<br />

federal – treat small mining operations like<br />

the ‘big boys’ of oil, gas and minerals; they<br />

have the same expectations of them and<br />

bury them under endless regulations.<br />

It’s unfair and it’s wrong, as it has major<br />

consequences not only for the miners<br />

themselves but also for the rest of the<br />

supply chain.<br />

In the course of my business, I’ve<br />

encountered many miners who have<br />

developed an ‘us and them’ attitude; they<br />

are hostile to and suspicious of any extra<br />

paperwork or conditions the wholesaler<br />

might legally require, thus making our job<br />

more onerous too.<br />

They are drowning in regulations already,<br />

and I feel sorry for them because it’s an<br />

awful position in which to be.<br />

When it comes to the mining paperwork<br />

itself, I’ve seen first-hand how difficult it<br />

can be to understand and complete.<br />

My son has a university education and is a<br />

miner himself, and he is reluctant to give<br />

help or advice to others because of the<br />

complexities involved.<br />

How are people supposed to deal with<br />

government bodies who are making their<br />

lives a misery, whilst paying through the<br />

nose for the privilege?<br />

The over-regulation is appalling and over<br />

the past 20 years that has quadrupled;<br />

the cost for miners to register a claim has<br />

risen four or five times in 10 years.<br />

That is extraordinary.<br />

In NSW, the cost of a standard mineral<br />

claim starts at more than $1,000, renewals<br />

start at more than $350, and opal<br />

prospecting licences are charged on top of<br />

that – a minimum of $589.<br />

For larger claims of two hectares, the fees<br />

can be as high as $6,300.<br />

As I said previously, many mining<br />

operations – particularly those mining<br />

for opals – are sole traders or family<br />

businesses; this type of regulation is a<br />

burden and it’s unnecessary.<br />

You can spend hours simply trying to read<br />

the paperwork, let alone fill it out.<br />

The NSW Opal and Gemstone Mining Guide<br />

alone is more than 230 pages long.<br />

In Queensland, many are transitioning<br />

from leases to a small miners claim<br />

system. However there are still as many<br />

as seven layers of costs, including rent,<br />

Indigenous and landholder compensation,<br />

council rates, environmental authority<br />

fees, and camp and mining security bonds.<br />

You may even need the Land Court involved<br />

to have a mining claim approved.<br />

How can the ordinary person with a small<br />

claim, or a person who speaks English<br />

as a second language, be expected to<br />

handle that?<br />

Even worse, the regulations change<br />

state-to-state, so if you are operating in<br />

more than one state you are expected to<br />

abide by separate regulations, paperwork,<br />

and fee structures.<br />

The overregulation<br />

is<br />

appalling and<br />

over the past 20<br />

years that has<br />

quadrupled; the<br />

cost for miners<br />

to register a<br />

claim has risen<br />

four or five<br />

times in<br />

10 years<br />

Is it possible to solve this problem?<br />

Unfortunately, as an industry, we have<br />

very little say in the political process.<br />

Broadly, there are very few industry<br />

associations with the money or staff to<br />

lobby politicians or promote these issues<br />

through the media.<br />

Large oil or gas mining companies have<br />

teams of staff and separate budgets<br />

dedicated to this type of thing, but<br />

artisanal mining doesn’t have the same<br />

resources. Even if you were to speak to<br />

a politician about these problems, they<br />

would get a glazed look in their eye!<br />

Opal is our national gemstone and should<br />

be treated as such, yet politicians seem to<br />

disregard it – and the people who produce<br />

it. When was the last time you saw an<br />

Australian politician wearing an opal?<br />

But they should care; our opals are a<br />

reliable, high-value export commodity<br />

and are much sought-after overseas,<br />

with markets willing to pay a premium<br />

for our product.<br />

Ditto Australian sapphires which have also<br />

become incredibly popular in recent years,<br />

both with local consumers and overseas.<br />

If politicians truly care about the industry<br />

they should show a will to guarantee that<br />

it thrives now and into the future.<br />

That means ensuring artisanal gemstone<br />

mining is considered a special category<br />

and is, therefore, regulated separately and<br />

appropriately.<br />

Name: Lilo Stadler<br />

Business: Bolda<br />

Position: Director<br />

Location: Noosa Heads, Queensland<br />

Years in the industry: 45<br />

82 | <strong>September</strong> <strong>2021</strong>


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