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 />
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ASSORTMENT<br />
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SWAROVSKI CREATED DIAMONDS
To schedule an appointment, please contact us:<br />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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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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 />
Source: SAMS Group Australia<br />
Est.1968<br />
AUSTRALIA’S WIDEST<br />
RANGE OF GEMSTONES<br />
ALL VARIETIES OF NATURAL<br />
COLOURED GEMSTONES<br />
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P +61 2 8065 8533 E info@sovereigngems.com<br />
@sovereigngems
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 />
Chopard<br />
David Morris<br />
Chaumet<br />
STERLING SILVER<br />
FRESHWATER PEARLS<br />
AVAILABLE IN RHODIUM<br />
FOR STOCKIST ENQUIRIES<br />
+61 413 872 810<br />
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WWW.BIANC.COM.AU
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 />
ELEGANC E LINE COLLECTION<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 />
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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 />
rare luxury.<br />
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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