Showing posts with label jewelry. Show all posts
Showing posts with label jewelry. Show all posts

Sunday, October 8, 2017

New terms were coined to differentiate the arts: jewellers who worked in cheaper materials were called bijoutiers, while jewellers who worked with expensive materials were called joailliers

The Renaissance and exploration both had significant impacts on the development of jewellery in Europe. By the 17th century, increasing exploration and trade led to increased availability of a wide variety of gemstones as well as exposure to the art of other cultures. Whereas prior to this the working of gold and precious metal had been at the forefront of jewellery, this period saw increasing dominance of gemstones and their settings. An example of this is the Cheapside Hoard, the stock of a jeweller hidden in London during the Commonwealth period and not found again until 1912. It contained Colombian emeraldtopazamazonite from Brazil, spineliolite, and chrysoberyl from Sri Lanka, ruby from India, Afghan lapis lazuliPersian turquoise, Red Sea peridot, as well as Bohemian and Hungarian opalgarnet, and amethyst. Large stones were frequently set in box-bezels on enamelled rings.[32] Notable among merchants of the period was Jean-Baptiste Tavernier, who brought the precursor stone of the Hope Diamond to France in the 1660s.
When Napoleon Bonaparte was crowned as Emperor of the French in 1804, he revived the style and grandeur of jewellery and fashion in France. Under Napoleon’s rule, jewellers introduced parures, suites of matching jewellery, such as a diamond tiara, diamond earrings, diamond rings, a diamond brooch, and a diamond necklace. Both of Napoleon’s wives had beautiful sets such as these and wore them regularly. Another fashion trend resurrected by Napoleon was the cameo. Soon after his cameo decorated crown was seen, cameos were highly sought. The period also saw the early stages of costume jewellery, with fish scale covered glass beads in place of pearls or conch shell cameos instead of stone cameos. New terms were coined to differentiate the arts: jewellers who worked in cheaper materials were called bijoutiers, while jewellers who worked with expensive materials were called joailliers, a practice which continues to this day.

Romanticism[edit]

Mourning jewellery in the form of a jet brooch, 19th century.
Starting in the late 18th century, Romanticism had a profound impact on the development of western jewellery. Perhaps the most significant influences were the public’s fascination with the treasures being discovered through the birth of modern archaeology and a fascination with Medieval and Renaissance art. Changing social conditions and the onset of the Industrial Revolution also led to growth of a middle class that wanted and could afford jewellery. As a result, the use of industrial processes, cheaper alloys, and stone substitutes led to the development of paste or costume jewellery. Distinguished goldsmiths continued to flourish, however, as wealthier patrons sought to ensure that what they wore still stood apart from the jewellery of the masses, not only through use of precious metals and stones but also though superior artistic and technical work. One such artist was the French goldsmith François-Désiré Froment-Meurice. A category unique to this period and quite appropriate to the philosophy of romanticism was mourning jewellery. It originated in England, where Queen Victoria was often seen wearing jet jewellery after the death of Prince Albert, and it allowed the wearer to continue wearing jewellery while expressing a state of mourning at the death of a loved one.[33]
In the United States, this period saw the founding in 1837 of Tiffany & Co. by Charles Lewis Tiffany. Tiffany's put the United States on the world map in terms of jewellery and gained fame creating dazzling commissions for people such as the wife of Abraham Lincoln. Later, it would gain popular notoriety as the setting of the film Breakfast at Tiffany's. In France, Pierre Cartier founded Cartier SA in 1847, while 1884 saw the founding of Bulgari in Italy. The modern production studio had been born and was a step away from the former dominance of individual craftsmen and patronage.
This period also saw the first major collaboration between East and West. Collaboration in Pforzheim between German and Japanese artists led to Shakudō plaques set into Filigree frames being created by the Stoeffler firm in 1885).[34] Perhaps the grand finalé – and an appropriate transition to the following period – were the masterful creations of the Russian artist Peter Carl Fabergé, working for the Imperial Russian court, whose Fabergé eggs and jewellery pieces are still considered as the epitome of the goldsmith’s art.

18th Century / Romanticism/ Renaissance[edit]

Many whimsical fashions were introduced in the extravagant eighteenth century. Cameos that were used in connection with jewellery were the attractive trinkets along with many of the small objects such as brooches, ear-rings and scarf-pins. Some of the necklets were made of several pieces joined with the gold chains were in and bracelets were also made sometimes to match the necklet and the brooch. At the end of the Century the jewellery with cut steel intermixed with large crystals was introduced by an Englishman, Matthew Boulton of Birmingham.[35]

Art Nouveau[edit]

In the 1890s, jewellers began to explore the potential of the growing Art Nouveau style and the closely related German Jugendstil, British (and to some extent American) Arts and Crafts Movement, Catalan Modernisme, Austro-Hungarian Sezession, Italian "Liberty", etc.
Art Nouveau jewellery encompassed many distinct features including a focus on the female form and an emphasis on colour, most commonly rendered through the use of enamelling techniques including basse-taille, champleve, cloisonné, and plique-à-jour. Motifs included orchids, irises, pansies, vines, swans, peacocks, snakes, dragonflies, mythological creatures, and the female silhouette.
René Lalique, working for the Paris shop of Samuel Bing, was recognised by contemporaries as a leading figure in this trend. The Darmstadt Artists' Colony and Wiener Werkstätte provided perhaps the most significant input to the trend, while in Denmark Georg Jensen, though best known for his Silverware, also contributed significant pieces. In England, Liberty & Co. and the British arts & crafts movement of Charles Robert Ashbeecontributed slightly more linear but still characteristic designs. The new style moved the focus of the jeweller's art from the setting of stones to the artistic design of the piece itself. Lalique's dragonfly design is one of the best examples of this. Enamels played a large role in technique, while sinuous organic lines are the most recognisable design feature.
The end of World War I once again changed public attitudes, and a more sober style developed.[36]

Art Deco[edit]

Growing political tensions, the after-effects of the war, and a reaction against the perceived decadence of the turn of the 20th century led to simpler forms, combined with more effective manufacturing for mass production of high-quality jewellery. Covering the period of the 1920s and 1930s, the style has become popularly known as Art DecoWalter Gropius and the German Bauhaus movement, with their philosophy of "no barriers between artists and craftsmen" led to some interesting and stylistically simplified forms. Modern materials were also introduced: plastics and aluminium were first used in jewellery, and of note are the chromed pendants of Russian-born Bauhaus master Naum Slutzky. Technical mastery became as valued as the material itself. In the West, this period saw the reinvention of granulation by the German Elizabeth Treskow, although development of the re-invention has continued into the 1990s. It is based on the basic shapes.

Asia[edit]

Royal earrings, India, 1st Century BC.
Indian king Bhupinder Singh of Patiala wearing Patiala Necklace which contained 2,930 diamonds, including as its centrepiece, the world's seventh largest diamond, the "De Beers", that had a 428 carat pre-cut weigh, and weighed 234.65 carats in its final setting. The piece also contained seven other diamonds ranging from 18 to 73 carats, and a number of Burmese rubies
In Asia, the Indian subcontinent has the longest continuous legacy of jewellery making anywhere[citation needed], with a history of over 5,000 years.[37] One of the first to start jewellery making were the peoples of the Indus Valley Civilization, in what is now predominately modern-day Pakistan and part of northern and western India. Early jewellery making in China started around the same period, but it became widespread with the spread of Buddhism around 2,000 years ago.

China[edit]

The Chinese used silver in their jewellery more than gold. Blue kingfisher feathers were tied onto early Chinese jewellery and later, blue gems and glass were incorporated into designs. However, jade was preferred over any other stone. The Chinese revered jade because of the human-like qualities they assigned to it, such as its hardness, durability, and beauty.[5] The first jade pieces were very simple, but as time progressed, more complex designs evolved. Jade rings from between the 4th and 7th centuries BC show evidence of having been worked with a compound milling machine, hundreds of years before the first mention of such equipment in the west.[38]
Jade coiled serpent, Han Dynasty(202 BC–220 AD)
`Xin' Shape Jewellery from Ming Dynasty Tombs, (1368–1644)
In China, the most uncommon piece of jewellery is the earring, which was worn neither by men nor women.[citation needed] Amulets were common, often with a Chinese symbol or dragon. Dragons, Chinese symbols, and phoenixes were frequently depicted on jewellery designs.
The Chinese often placed their jewellery in their graves. Most Chinese graves found by archaeologists contain decorative jewellery.[39]

Indian subcontinent[edit]

Two-Tiered Enamel Earrings, late 18th-early 19th century. Qajar Dynasty. Brooklyn Museum.

The Indian subcontinent (encompassing IndiaPakistan and other countries of South Asia) has a long jewellery history, which went through various changes through cultural influence and politics for more than 5,000–8,000 years. Because India had an abundant supply of precious metals and gems, it prospered financially through export and exchange with other countries. While European traditions were heavily influenced by waxing and waning empires, India enjoyed a continuous development of art forms for some 5,000 years.[37] One of the first to start jewellery making were the peoples of the Indus Valley Civilization (encompassing present-day Pakistan and north and northwest India). By 1500 BC, the peoples of the Indus Valley were creating gold earrings and necklaces, bead necklaces, and metallic bangles. Before 2100 BC, prior to the period when metals were widely used, the largest jewellery trade in the Indus Valley region was the bead trade. Beads in the Indus Valley were made using simple techniques. First, a bead maker would need a rough stone, which would be bought from an eastern stone trader. The stone would then be placed into a hot oven where it would be heated until it turned deep red, a colour highly prized by people of the Indus Valley. The red stone would then be chipped to the right size and a hole bored through it with primitive drills. The beads were then polished. Some beads were also painted with designs. This art form was often passed down through the family. Children of bead makers often learned how to work beads from a young age. Persian style also played a big role in India’s jewellery. Each stone had its own characteristics related to Hinduism.
Jewellery in the Indus Valley was worn predominantly by females, who wore numerous clay or shell bracelets on their wrists. They were often shaped like doughnuts and painted black. Over time, clay bangles were discarded for more durable ones. In present-day India, bangles are made out of metal or glass.[40] Other pieces that women frequently wore were thin bands of gold that would be worn on the forehead, earrings, primitive brooches, chokers, and gold rings. Although women wore jewellery the most, some men in the Indus Valley wore beads. Small beads were often crafted to be placed in men and women’s hair. The beads were about one millimetre long.
A female skeleton (presently on display at the National Museum, New Delhi, India) wears a carlinean bangle (bracelet) on her left hand. Kada is a special kind of bracelet and is widely popular in Indian culture. They symbolizes animals like peacock, elephant,[41] etc.
According to Hindu belief, gold and silver are considered as sacred metals. Gold is symbolic of the warm sun, while silver suggests the cool moon. Both are the quintessential metals of Indian jewellery. Pure gold does not oxidise or corrode with time, which is why Hindu tradition associates gold with immortality. Gold imagery occurs frequently in ancient Indian literature. In the Vedic Hindu belief of cosmological creation, the source of physical and spiritual human life originated in and evolved from a golden womb (hiranyagarbha) or egg (hiranyanda), a metaphor of the sun, whose light rises from the primordial waters.[42]
Antique Pearl & Gold Nose Ring, India, 19th century
Jewellery had great status with India’s royalty; it was so powerful that they established laws, limiting wearing of jewellery to royalty. Only royalty and a few others to whom they granted permission could wear gold ornaments on their feet. This would normally be considered breaking the appreciation of the sacred metals. Even though the majority of the Indian population wore jewellery, Maharajas and people related to royalty had a deeper connection with jewellery. The Maharaja's role was so important that the Hindu philosophers identified him as central to the smooth working of the world. He was considered as a divine being, a deity in human form, whose duty was to uphold and protect dharma, the moral order of the universe.[43]
A Navaratna ring.
Navaratna (nine gems)is a powerful jewel frequently worn by a Maharaja (Emperor). It is an amulet, which comprises diamond, pearl, ruby, sapphire, emerald, topaz, cat’s eye, coral, and hyacinth (red zircon). Each of these stones is associated with a celestial deity, represented the totality of the Hindu universe when all nine gems are together. The diamond is the most powerful gem among the nine stones. There were various cuts for the gemstone. Indian Kings bought gemstones privately from the sellers. Maharaja and other royal family members value gem as Hindu God. They exchanged gems with people to whom they were very close, especially the royal family members and other intimate allies. "Only the emperor himself, his intimate relations, and select members of his entourage were permitted to wear royal turban ornament. As the empire matured, differing styles of ornament acquired the generic name of sarpech, from sar or sir, meaning head, and pech, meaning fastener."
India was the first country to mine diamonds, with some mines dating back to 296 BC. India traded the diamonds, realising their valuable qualities. Historically, diamonds have been given to retain or regain a lover’s or ruler’s lost favour, as symbols of tribute, or as an expression of fidelity in exchange for concessions and protection. Mughal emperors and Kings used the diamonds as a means of assuring their immortality by having their names and wordly titles inscribed upon them. Moreover, it has played and continues to play a pivotal role in Indian social, political, economic, and religious event, as it often has done elsewhere. In Indian history, diamonds have been used to acquire military equipment, finance wars, foment revolutions, and tempt defections. They have contributed to the abdication or the decapitation of potentates. They have been used to murder a representative of the dominating power by lacing his food with crushed diamond. Indian diamonds have been used as security to finance large loans needed to buttress politically or economically tottering regimes. Victorious military heroes have been honoured by rewards of diamonds and also have been used as ransom payment for release from imprisonment or abduction.[44] Today, many of the jewellery designs and traditions are used, and jewellery is commonplace in Indian ceremonies and weddings.[39]

Thursday, August 3, 2017

Market players refrain from buying diamonds, preferring to wait for changes in conditions

Diamond prices continue to fall, as market activity declines. Partly the decline is due to the annual period of summer holidays, and in part the price adjustment in the weakened market continues.

But is this just a price adjustment, or is this a larger change - market adjustment? The majority in the market agree that too many companies compete for a very small "piece of pie". The current crisis is so severe that these companies with less strong fundamentals may be out of the game, which leads to a reduction in the number of companies operating in the diamond pipeline.

Growing difficulties

Many wonder: will the Indian banks continue to provide credit lines and finance local diamond companies that have large production and high overheads? Or are the realities now existing that will prompt them to reduce their participation in these capital-intensive enterprises? If this is the case, then the companies will become more optimized, more efficient and the foundations will be strengthened, and some companies will leave.

As part of this recovery process, companies can transform their purchases of diamonds into more rational purchases. One type of transformation resulting from this process is vertical consolidation. De Beers has already taken a small step towards vertically integrated companies such as Tiffany & Co., Chow Tai Fook and Sterling, all of which are sightholders, diamond manufacturers, jewelery manufacturers and retailers. De Beers, along with De Beers Jewelers and Forevermark, is moving in this direction.

The Belgian, Israeli and even American diamond centers - all of them passed through a period of accelerated growth, accompanied by a crisis and the process of formation, which led to the creation of smaller and more stable centers. Is India going through the same process? Are they suffering now from the stage of the crisis after growth, which will end in compression and consolidation? If so, then this is a positive direction of development, which will lead to a healthy market.

I am sure of one thing - the market of diamonds and diamonds will never remain the same. We will never go back to the existing structure. Since De Beers lost its monopolistic market share, which led the business to the middle part of the diamond pipeline in 2000, a new business was born. A business that goes through painful processes of expansion and growth. I believe that from the ruins that we observe today, we give birth to a business with a more perfect structure. A business that is more profitable has a sound economic logic, and in which all participants understand the value of money and what income it should be for their diamond owner and in any other business in any other industry.

De Beers

The weakening of the market was not spared by De Beers, which reported a 9 percent drop in sales to 13.3 million carats in the first six months of 2015. The cost of sales of diamonds fell by 23% to $ 2.7 billion.

In response to continuing market conditions, the parent company of Anglo American said that De Beers revised its forecast for 2015 to 20-31 million carats. This is consistent with my prediction of a reduction in supply.

This new policy probably served as a motivation for De Beers to make a decision to allow larger amounts of deferred purchases on the upcoming site than usual. In August, sightholders may postpone up to 75% of the amounts allocated to them. The company gives them the opportunity to change their mind after viewing the product and getting acquainted with the prices for it.

De Beers also announced that after the site, sightholders could change their planned delivery schedule for the rest of the volume for the current ITO (intention to make an offer), which ends in March 2016 - six more sites. This medium-term change allows you to make a decision on deliveries based on market conditions at the moment. This is different from the decisions that were made at the end of 2014, when the crisis has already come, accompanied by the hope that the market will improve in the near future. Since De Beers is the benchmark for the industry, I hope that all diamond producers will follow suit. This is a good opportunity to solve the main problem of the middle part of the diamond pipeline: the minimum rate of profit!

Identification of roots

To hope for an increase in the price of diamonds or diamonds is not a solution to the question. We all know the expression: "the dog is following a false trail." Why is this a false trace? Because the cat climbed another tree! Is the expectation of a price increase the same as taking a false track? I think that the problems of our industry are hidden in another tree.

There are several long-term problems that cause the current crisis:

• 5,000 companies making up the middle part of the diamond pipeline are fighting for a crowded market and minimal profits;

• financial structure and coefficient of self-capitalization;

• The oligopoly of distribution of diamonds (seven major diamond producers, several open tenders in the market and several diamond sellers on the open market - this is the whole supply of rough diamonds!);

• 200,000 wholesalers of diamonds fighting for sale at almost any price;

• Decrease in the level of consumer demand for diamond jewelry due to lack of specific marketing;

• The high price of diamond jewelry, which pushes consumers to alternative products;

• The unresolved and growing problem of undeclared diamonds and diamonds grown in the laboratory;

• and last but not least: the increase in the market share of the declared diamonds grown in the laboratory in view of the greater profits for their sellers.

Is not this a "cat sitting on another tree"? All these reasons make me believe that our industry will never be the same after this crisis. The expectation that prices for diamonds will rise is a cliche. As we saw in the past, when prices for diamonds are growing, so are the prices for diamonds. Margin never grows, remaining minimal.

The market of rough diamonds

The decline in the market means that the rest of the main sources of rough diamonds will reduce their supply and lower prices. This is unavoidable for many reasons, as summer holidays begin and, with such uncertainty, market participants say that they will wait until August or early September before deciding on what to buy and at what price they want to make these purchases.

Another aspect of this decision is abstention from large financial costs in the form of cash, when it is clear that the goods will simply lie in the form of stocks until people return to work after the holidays. There is no need to increase the financial burden without a reasonably good reason.

Market players refrain from buying diamonds, preferring to wait for changes in conditions. When asked what will happen if the price of diamonds starts to rise, they say they prefer to buy at higher prices when the market is stronger than under the current weak market. Many key players in the Indian market are reorganizing their manufacturing infrastructure and sales offices around the world. They do not expect much demand when they return from holidays.

http://www.ehudlaniado.com/home/index.php/news/entry/not-a-price-correction-but-a-market-correction

Jewelry industry continues to decline in size, as more and more retailers, wholesalers and diamond producers are closing

The latest statistics from the Jewelers Board of Trade (JBT) show that the jewelry industry continues to decline in size, as more and more retailers, wholesalers and diamond producers are closing.

The number of business cuts in the United States and Canada reached 251 in the second quarter of 2015, compared to 241 in the second quarter of 2014. Since the beginning of this year, to the present day, the termination of business - this includes bankruptcies, consolidation (sales / mergers) and companies that have simply ceased operations - increased by 12 percent year on year, from 485 to 545.

The statistics for the second quarter reflect the continuation of the trend, which manifested itself in full in 2014, when the number of business termination increased by 32 percent year-on-year.

During the JBT Internet conference held on Wednesday to discuss the industry's new achievements, President Dione Kenyon cited many of the reasons for the industry's reduction earlier: aging owners who decided not to continue the business and the inability or lack of desire to make the changes necessary to In order not to lag behind in this rapidly changing world.

She also said that some of the recent cases of closure of retailers may be the result of a lack of cash due to gold buyback, which for several years "helped mask the deeper problems that jewelers have," including obsolete stocks and the fact that they are not Adapted to the new technology.

JBT data showed that from the number of closed businesses, the majority prefer to cease operations than to consolidate or file for bankruptcy.

In North America, a total of 216 retailers, wholesalers and diamond manufacturers ceased operations in the second quarter of 2015 compared to 185 in the second quarter of 2014. From the beginning of the year to the present day, the number of businesses that simply closed, increased by 28 percent.

At the same time, the number of consolidations this year has decreased by 43 percent. Kenyon said that although it seems that the deals are "still concluded" behind the scenes, but not so many of them were implemented this year.

The number of bankruptcies, in fact, is not growing. So far in 2014 there were 21 bankruptcies, compared to 20 at this time last year. Kenyon said that this is a continuation of the trend, observed for some time - very few companies tend to spend money on the bankruptcy procedure.

Other main data for JBT for the second quarter include the following:
- The number of new jewelry businesses this year in the United States and Canada reached 152, which is less than 159 at this time last year;

- The total number of registrations for JBT (including retailers, wholesalers and diamond manufacturers) for North America as of the end of the second quarter of 2015 fell 3 percent year-on-year to 29,607 compared to 30,392 in the second quarter of 2014; and

- The number of claims for recovery of debts received by JBT (593) decreased from the beginning of this year, although the average amount of claims ($ 8,728) slightly increased. Kenyon defined the industry's credit data as "OK" (good) during a web conference on Wednesday; Not all businesses make payments immediately or without difficulty, but this is not yet a situation when it is impossible to get a payment at all.

http://www.nationaljeweler.com/independents/retail-surveys/Industry-shrinkage-trend-continues-in-Q2-9642.shtml

Diamonds have declined as much as their perceived value

I usually criticized De Beers with great pleasure, and if you read my articles written in the past, you can see that I did it with enthusiasm.

But time goes by, and new professionals come all the time. So in this case, suddenly a man named Stephen Lussier (Stephen Lussier) appeared as the chief executive officer of De Beers. Recently, it was reported that Mr. Loussier was going to re-launch one of my most beloved branding and marketing campaigns for De Beers - "Brilliant is forever".

Although his intention is to give a new luster to his own Forevermark brand, the whole industry will benefit from this campaign.

The constantly recurring flow of negative information about diamonds, along with the numerous price declines observed from month to month, led to the fact that they moved from the category of undervalued to the category of discounted goods.

It can even be said that at present diamonds and jewelry are considered as discounted products with a short shelf life and prices for them are subject to further decline. How did we get into this crazy trap?

Our product is 10 times more reliable than any monetary instrument, including gold. Shares, bonds and cash certificates were badly affected and lost their luster. The restoration of their damaged cost is similar to the restoration of historic buildings; For this you need to work hard, but the end result will be great.

Stephen Lucier resurrects the public perception of diamonds, primarily targeting the third millennium generation that was born in the 1980s and 1990s. The idea of De Beers is correct in the sense that "The generation of the third millennium is driven by the same emotions and desires of love that gave birth to the slogan" Brilliant is forever "from previous generations." But they have a completely different view of values.

If it were possible, I would ask my friend Steven Loussier, whom I never met or talked with, could he give me a second and listen to what I want to say. It's not about returning the miracle, but about how he plans to do it.

The average adult American spends now more time watching on his mobile phone than watching TV. In fact, it is said that the average man of the third millennium in the US spends twice as much time on his mobile as he spends in front of the TV.

Simply put, the campaign should be based on the Internet, and not be conducted on TV, as it was done before. The problem is that it's actually harder to get a response from this generation than it was from their grandparents who watched and loved stars like Marilyn Monroe.

Therefore, Forevermark is not going to spend too much money on TV or print ads. Rather, it will focus on creating good online content, well suited for mobile devices. Currently, mobile phones are a modern connection to the outside world.

But the generation of the third millennium is not receptive to stories - they've already heard it all. They do not want any more stories. Rather, they need content that shows only facts. Do not even try to tell them about love, because with a huge competition online they will move on to the next topic without even stopping.

Instead, tell them the facts of life: diamonds will never be as cheap as they are today, and as a result of 30 years of inadequate attention, they are now sold for 20 percent of their true value. For clarity, at the time of Marilyn Monroe, the cost of the Chevrolet car was equal to the cost of a diamond engagement ring weighing 1 carat.

At present, the cost of an average passenger car has grown 10 times compared to the average price of a diamond. If you compare the cost of a diamond with a round cut diamond weighing 0.50 carats in 1955, when it cost about $ 200, then with the same stone today, the cost will be approximately $ 2,000. In nominal terms, an increase of 10 times is obtained. Housing, which was then worth about $ 2,000, today can be sold close to $ 500,000.

Diamonds are currently sold at a record low price compared to their real hidden cost.

In fact, over the years of inadequate attention, the prices of white diamonds have declined as much as their perceived value. Fortunately, history has shown that fantasy colored diamonds simply did not experience price reductions and did not face branding problems. Pink, blue and even yellow stones (which are now quite common) over the past 60 years not only saved the cost, but also increased in price. But do not take my words for granted, just look at the open auction houses and read about the precious stones, which from time to time at auctions are sold at record high prices.

Lusya should start the "Brilliant is forever" campaign from a clean slate in order to breathe new life into the legendary marketing campaign.

The positioning of diamonds as "Brilliant is forever" began in advertising since 1914, but it took 25 years until the campaign was carried out in the most successful manner. In 1999, the most prestigious advertising magazine Advertisement Age stated that "The Brilliant is Forever" is the most recognized and effective slogan of the 20th century. In 1938, young Harry Oppenheimer turned to Gerold M. Lauck, president of NW Ayer & Son, and they began using this legendary slogan. Then the average diamond engagement ring was sold for $ 80 for the current money. With the help of a powerful developed campaign, over the years, De Beers has significantly succeeded [in increasing] the price of the label. "

http://www.idexonline.com/Memo?Id=40945

Increase in profits when the diamond market begins to replenish its reserves again

Today, the diamond market is on the brink of collapse, and in order to retain at least some chance to regain growth prospects, De Beers will have to reduce prices by 10-20% - and it's not about making profits Diamond processing enterprises. Since prices in 2015 reached the heights, it is simply unrealistic to hold on, the mood in the market fell to the lowest level in six years.

Although reports of bankruptcies, unavailability of loans, low liquidity and even reports of suicides of people on a professional basis, resemble the times of the global crisis, this time is different. Then the decline in the diamond market was due to macroeconomic factors. Last year the difficult situation was provoked by the trade itself, and to a large extent from the supply side.

Therefore, sightholders deserve praise for having abandoned 65% of the goods offered on the De Beers website in July (see the website report here). The authors of this column called on diamond processing companies to abandon the unfavorable acquisitions of rough diamonds for most of the past 12 months (see Rough Price Correction - Part 2, published on January 30). So while De Beers and, for that matter, ALROSA, slightly reduced prices in the first half of the year, these declines were insufficient.

De Beers hoped for an increase in demand for previously deferred goods in the second half of the year. Supporting supplies at a low level - allowing sightholders to postpone the purchase of 25% of the product throughout the year - the company expected that the diamond and diamond reserves of the cutters would be depleted enough for companies to resume purchases for the holiday season.

However, diamond manufacturers are not ready to buy goods, if their acquisition is unprofitable - these are the basic principles of the economy. They make their decisions on buying rough diamonds based on (falling) prices for diamonds, and not on the basis of long-term supply interests. If the price of diamonds is not matched with the price of diamonds, diamantaires will refuse the goods on the next site, scheduled for the week of August 24-30.

Deliveries for the holiday season from surplus diamonds

There remain questions about whether there will be a sharp drop in prices enough to stimulate the purchase of rough diamonds. Perhaps, diamantaires are even happy that they do not deal with the diamond market, trying to reduce their large stocks of diamonds. As one of the sightholders told Rapaport News, jewelers will receive supplies [for the festive season] mainly from surplus diamonds, not from diamond mining companies, since rough diamonds are almost not involved in the supply system.

This may help to some extent normalize the market in January, when stocks will decrease enough to stimulate demand after the holiday season. Taking into account the fact that the traditional replenishment of reserves did not occur in the first quarter of 2015, and in June nothing was done, it will happen at the latest in 2016.

Analyst RBC Capital Markets Des Kilalea suggests that De Beers strategy is rather to try to keep prices and sacrifice sales volumes in the hope that current prices will be perceived as reasonable in 2016, when it will be possible Sell large volumes of diamonds. "The problem for De Beers is that if prices fall by 10-15%, three years will be needed to return to the current level," he suggests.

The problem for diamond manufacturers, however, is that if prices for rough diamonds do not drop, in January supplies will continue to be unprofitable. Prices for diamonds are still under pressure, and their noticeable growth in 2015 is not expected.

The vicious circle will continue

Diamond producers should be confident of a steady increase in profits when the diamond market begins to replenish its reserves again. If the expected rise in diamond prices, in turn, will be an incentive for the price increase for diamonds in 2016 compared with the current as a starting point, the price race will begin again, and the vicious cycle will continue.

All this leads us to the consequences for Anglo American, which owns an 85% stake in De Beers. Although in 2014 De Beers was the best asset for Anglo American in terms of financial performance, Kilali predicts that the financial return of the diamond unit, which is due to report on July 24, in the first half of 2015 was reduced by 50%. This would mean "another financial blow" for the mining conglomerate, Kilali wrote in the publication of a memorandum before investors for publication.

Losing money Anglo American would not like to see a low sales volume coupled with substantially lower prices in the second half of 2015. Sales on the July site, which are estimated at $ 200 million, already represent a significant reduction in comparison with previous years. In July and August, sites are traditionally the largest in the year, when diamond producers store raw materials for the festive season.

http://www.diamonds.net/News/NewsItem.aspx?ArticleID=52904&ArticleTitle=The+Futility+of+Chasing+Rough+Shadows

View of achieving successful sales

The activities of De Beers Consolidated Mines (DBCM) further reduced due to the proposed sale of the mines of Kimberley (Kimberley Mines), but Philip Barton (Philip Barton), Chief Executive Officer Of the company, believes that DBCM has several surprises in store for its followers.

"We are actively conducting geological exploration in South Africa. We really believe that there are still a few mines in the country that meet the criteria of De Beers and Anglo American, "he says.

DBCM spends about R30 million on geological exploration. "We have just circled a fairly large area, using new geophysical technology to detect certain targets. Based on our results obtained from a rather large number of geological exploration licenses, to which applications were submitted - for which the majority was issued - we will conduct ground-based geophysical surveys that will enable us to identify targets.

"We regularly find goals that lead us to undiscovered kimberlites [geological formations], but not all kimberlites contain diamonds. In fact, a very small number of them contains enough diamonds to develop an effective mine. Approximately one out of every 1000 kimberlites can give us an economically feasible mine.

"The reason for our optimism is that a comparison of the geology of South Africa and the rest of the world shows that South Africa is one of the most interesting geological places in the world. A number of diamond mines, which the country created, confirm the geological importance for the production of diamonds, "- says Barton.  

De Beers has been studying South Africa for many decades, but the current volumes of geological data began to be preserved since the late 1950s. De Beers has a huge database with this data logging.

"We assume that in these data a number of deposits are hidden. There were discovered easily accessible deposits, where you literally stumble on a naked rock of diamond ore.

The remaining kimberlites are either hidden under a considerable layer, or they are kimberlites that do not have the characteristic features that we know. Therefore, traditional methods did not indicate the presence of such kimberlites.

If a new technology and advanced theory are used, with which we learned about kimberlites using old data, we can get interesting results. According to data obtained in the past, we learned that some of the known kimberlites were 10 times larger than we originally thought. The diamond content was not sufficient to justify the deposit, but this gives the idea that somewhere among these data there is a deposit, "Barton says.

De Beers has a group working full time, conducting a study of these data. "We are very optimistic - we will still find the deposit in this way," he says.

Anglo American investment criteria are that it seeks to invest in the so-called "first-tier" assets, but the value of a diamond mine is determined not only by its size. You can find smaller deposits that give diamonds of excellent quality.

"Therefore, you may have a" second-tier "deposit, which is extremely lucrative, like our Victor mine in Canada. It is a small mine, but it produces valuable diamonds.

As soon as we find the mine, we will sit down with Anglo and decide whether we will develop it or give it to someone else. At the moment, we have focused on his search, "said Burton, with a big smile.

But the near future of De Beers in South Africa depends on the northern part of the country, the Venetia mine, where it spends over R20 billion to develop an underground mine below the huge current open pit.

"We are now setting the task of issuing the first volume from the underground mine in 2021 and reach full capacity by 2024," says Barton. The project is fully funded from internal sources. The current weakening of the diamond market did not affect the financing of the underground mine. "We are still earning enough money to pay on our own," he says.

The underground mine will extend the life of the Venice mine until the beginning of the 2040s with a production volume of 4.5 to 5 million carats per year. The mine has a number of options for the mining of these three kimberlite pipes.

The inclined mining output reached a depth of 650 meters, and the technological withdrawal of the main lifting shaft was recently completed. At the present time, supercharging coppers are being built for the main lifting shaft and maintenance.

At the Venice mine there are three main tubes and several smaller tubes. K1 - the tube of the field, can yield 6 million carats per year. The factory at the Venice mine was originally designed for processing 4.8 million tons a year, but later it was improved and now can process 6 million tons.

"But as the underground mine develops, the production profile will increase and replace 18% of our current production, which we will lose because of the sale of Kimberly mines. There will be some decline, but it will last for a relatively short time, "says Barton.

It's probably not the best time to sell Kimberly in terms of price, Barton admits.

"The market for diamonds is now somewhat weakened, but if you look at it from the point of view of achieving successful sales, this is the right moment, and all our previous sales were also successful, and they are still being produced. Kimberly still has resources of tailings with a relatively high content. "

Now the buyer is offered a combination of high and low content. A great advantage of the Kimberly mines is the low-content material, which will last at least until 2030. Providing the buyer an initial advantage of the order of three years due to materials with a high content gives a better chance of maintaining the activity for a longer period.

http://www.miningmx.com/page/special_reports/mining-yearbook/mining-yearbook-2015/1653118-De-Beers-looks-to-SA-with-fresh-eyes#.Vb_Dnfntmkr

Correlation between the price of uncut diamonds and the price of polished diamonds and restores profitability for diamond producers

From the retailers in the middle of America to diamond manufacturers in India, from cutters in Israel to traders in diamonds in Antwerp and diamond miners in Africa, the global diamond and diamond industry seems tired, pessimistic and gloomy. Everyone in the diamond pipeline is seeing a decline in sales and a decrease in turnover, and improvement is far on the horizon, which is constantly being removed. But still there is a glimmer of hope.

WEB SITE № 6 DE BEERS: "I CARE ABOUT MY BUSINESS; YOU CARE ABOUT YOURSELF »

Site number 6 was initially estimated at $ 600- $ 650 million, judging by the intention to make an offer (ITO). Now it seems that ITO was even lower: $ 500 million plus another $ 50 million for goods sold at a special discounted price, probably because of the large number of deferred purchases.

In fact, the site was below half of this figure - $ 150- $ 200 million after sightholders had postponed their volumes and then refused most of the offer. Anyway, on the site in July the sightholders preferred not to buy out about 60% -70%.
Some sightholders took only one or two boxes from their entire volume on the site. Some have postponed part of their goods and have given up everything without buying anything at all. Some did not even bother to appear on the site. Companies that in the past hardly looked at the goods and took everything as they are, now abandoned the large volumes of the goods offered to them. This level of lack of interest in buying, probably never happened before.

Thus, it was a turning point for the industry. In March, sightholders declined about 30% of the site, and this was a rarity, bringing some sightholders a sense of satisfaction. This time, it's not that they feel how they changed the situation. As one sightholder said: "People listened to the advice of Philippe Melier [De Beers chief executive]:" I care about my business; You take care of your own. ""

In recent months, Melle spoke of this several times, and sightholders, an easily adaptable group of people (if any), clearly heard and understood him. This was a turning point, because sightholders, who for months declared that the offer they had offered was not economically viable and still continued to buy, decided to make an economically very profitable step and simply not buy something that does not meet their needs. It's about taking care of your business.

From the point of view of sightholders, the recent rejection of a large number of diamonds makes sense. If diamonds obtained from diamonds are not sold, or if their stocks are high and do not decline at a rate that justifies the purchase of additional diamonds, or if the price of diamonds does not allow them to make a profit, then the refusal makes sense. But what is good for diamond manufacturers is not so good for De Beers.

ABOVE BILLION DOLLARS ON LOST SALES

After the March site it was established that in the first quarter of this year, diamonds worth more than half a billion dollars, which remained in the hands of De Beers, were abandoned. The last site was abandoned by diamonds for an additional $ 300- $ 350 million.

For the first six months of 2015 (five sites), sales decreased by 5 million carats. In total, diamond sales decreased by 26% in volume to 14 million carats, and total sales fell 27% to 13.3 million carats, according to the parent company Anglo American.

In total, the decrease was 4.8 million carats. At an average cost of $ 206 per carat for the first five sites of this year, De Beers lost sales by about $ 1 billion. Add another $ 300- $ 350 million for diamonds, which were abandoned on site # 6, and this figure grows to $ 1.3 billion - a significant figure for the company, whose receipts in 2014 amounted to $ 7 billion and a lot of stocks in stock.

De Beers raised prices for some products on site No. 6 and reduced them to others. Some price changes made sense - to products of reduced demand, a change in the range, etc. - these are the usual price adjustments. But now the times are not ordinary. In general, De Beers continues to decline prices, but sometimes there are big questions. For example, the price of a pair of still low-profit boxes increased, leaving the sightholders no opportunity to profit.

One insider explained that the company is trying to keep its price index from slipping, so prices rise where possible. From a broader perspective, it seems that something more serious is needed. In 2009, at some time De Beers offered a wide range of mixed goods and sold it at one price. So it was difficult to see if there was actually a price reduction, which did not significantly affect the value of stocks. Now there is an intention, at least, a proposal that De Beers do the same in August.

Another proposal - a sharp decline in prices, is a step that establishes a correspondence between the price of uncut diamonds and the price of polished diamonds and restores profitability for diamond producers. The conversation is about a price reduction of about 20 percent. In this scenario, everyone will pay a price - De Beers, sightholders and wholesalers - is a radical and painful measure, similar to an urgent surgical operation, in which the benefit of treatment outweighs the pain.

http://edahngolan.com/how-sightholders-take-care-of-business-a-market-report/?utm_source=Edahn+Golan+Diamond+Research+%26+Data+Newsletter&utm_campaign=966d40a0cf-RSS_feed_newsletter_campaign3_12_2015&utm_medium=email&utm_term=0_3db00ffc52-966d40a0cf-319355397