The career of a renowned jewelry designer and his relationship with the world famous Hope Diamond is the subject of a story on The Roskin Gem News Report.
Maurice Galli, 81, a professor of jewelry design, author and longtime senior designer for Harry Winston, Inc., has an illustrious career but there was one glaring hole in his résumé. Even though he has been employed at Harry Winston for more than 50 years and was mentored the company’s founder, Harry Winston, he never had the chance to design a piece of jewelry for the Hope Diamond, the famous blue diamond that was donated to the Smithsonian by Mr. Winston. Needless to say this has changed.
The story is told by Gary Roskin, who is no slouch himself in the world of precious gems. He is one of the world’s leading gemologists as well as a longtime educator and writer. Nearly a year ago, he was given access to the back room of the Smithsonian National Museum of Natural History Hall of Geology, Gems, and Minerals while 10 gem experts documented and examined the Hope and Wittelsbach-Graff blue diamonds, the two most famous blue diamonds in the world, to try to determine whether they were ever related. He has been writing about the event and its findings in a series of stories on his website. The Galli story is part of this ongoing series.
Harry Winston, said that third quarter consolidated sales increased 88 percent year-over-year to $140.9 million, led by a two-fold increase in rough diamond sales from its Canadian mine and a 50 percent increase in its luxury jewelry retail operation.
Consolidated earnings totaled $13.7 million for the period, ended October 31, compared to a loss of $4.9 million for the third quarter of 2009. Consolidated net income for the third quarter was $3.9 million.
Rough diamond sales for the quarter rose 192 percent year-over-year to $60.7 million. The Toronto based company supplies rough diamonds to the global market from its 40 percent interest in the Diavik Diamond Mine, located in Canada’s Northwest Territories. Mining giant Rio Tinto owns the remaining 60-percent share of the mine. The increase in sales resulted primarily from a 182 percent increase in volume of carats sold.
Meanwhile, retail sales increased 48 percent for the quarter to $80.2 million. The company’s retail division, Harry Winston Inc., is a premier diamond jeweler and luxury timepiece retailer with salons in key locations including New York, Paris, London, Beijing, Tokyo and Beverly Hills.
Robert Gannicott, Harry Winston chairman and CEO said the insatiable appetite for hard luxury goods in China and other emerging countries is the main reason for Harry Winston’s strong third-quarter performance.
“Diamond demand in the Far East continues to propel rough diamond prices as the Diavik mine transitions to underground production,” Gannicott said. “Marketing efforts and store openings are successfully burnishing the Harry Winston brand to capture the branded luxury appetites of the emerging wealth of the newly developing parts of the world.”
A voracious appetite for consumer goods, youthful exuberance and sheer numbers are the main reasons why luxury companies are flocking to China, Frederic de Narp told a group of luxury marketers in New York.
“Everybody talks about China, China, why China?” Harry Winston’s president and CEO said to members of the Luxury Marketing Council Wednesday night. “They spend more than anybody else and they are younger than everybody else.”
When de Narp mentions affluent consumers, he is talking about what he defines as the “uber-wealthy,” those with about $30 million in liquid assets that Harry Winston targets. He says those with the greatest wealth in China are 15 years younger than their counterparts in the U.S. About 80 percent of the truly wealthy in China are under 45 years old while 70 percent of their counterparts in the U.S. are over 45 years of age.
DeNarp discusses the luxury market
In addition, the number of uber-high-net wealth people is expected to increase dramatically, far more than anywhere else in the world. In ten years, he said China is forecasted to be the number one luxury market in the world. The country is already the top export market for Bordeaux wines in value (according to the Conseil Interprofessionnel du Vin de Bordeaux) and the biggest destination for luxury watches.
“In ten years we expect the uber-high-net wealth population, the people with $24,000 in disposable income, to be multiplied by 12 in ten years—from one to 12 million. That is why everybody’s going to China,” he said.
De Narp was one of three speakers who discussed “Canadian Luxury” at the Conde Nast Building on Times Square. The Toronto-based company is both a diamond miner and luxury retailer. He limited his talk to the worldwide luxury market and the company’s brand and retail strategies.
While the Chinese luxury market is the fastest growing in the world, De Narp said that the luxury market for the uber-high-net wealth population is doing well everywhere.
“It’s booming,” he said. “The brand (Harry Winston) is on fire but luxury is booming around the world.”
In the most recent assessment, the worldwide luxury market is project to grow 9 to 10 percent in 2010.
“I’m talking about true luxury brands,” he said. “There’s a world of confusion among luxury brands and true luxury brands. A luxury brand, to me, represents timeliness and it is a truly a different business model. True luxury brand are doing extremely well—hard luxury, watches and jewelry.”
Among countries, China’s growth for the years is projected to be 10 percent, the rest of Asia 4 percent, North America 12 percent and Europe 6 percent. The Japanese market is projected to fall 1 percent. All of the numbers are far better than what was predicted in the beginning of the year, he said.
While the world’s Gross Domestic Product decreased by 2 percent, the uber-high-net wealth population of approximately 98,000 people with more than $30 million in liquid assets grew by 19.4 percent.
“So there is enormous wealth created around the world and of course Harry Winston being the most exclusive watch maker in the world, gets positioned with the best.”
Among countries with the most billionaires, last year china had 24. This year it has 64 billionaires. “I’m sure there are more than 100 billionaires. This is the power of China,” he said. “But still, America is still the strongest market by far.”
New York has 60 billionaires and there are 27 billionaires in Los Angeles. Among other cities around the world, there are 32 billionaires in London, 15 in Moscow and 28 in Istanbul. “Who would have guessed that,” he said.
Consumer trends differ around the world. In the developed world, people want more simplicity. Young people are looking for products and services that are environmentally and socially responsible.
Three major western trends in Europe and American are exclusivity, durability and heritage. “In Europe I don’t think this is new for anybody,” he said. “Engagement and experience at the point of access is extremely important.”
In china they want visible logos, western brands and the look for novelties.
“Today, nothing is too beautiful for China,” he said. “It’s a matter of only wanting the best. They believe in the value of investing in precious stones.”
Japan, is “losing their passion” for luxury, he said. However, they want niche brands that are not readily available to the general public.
“An exclusive brand with only five salons, not in the malls, not in the department stores,” he said. “We are extremely well-positioned in Japan.”
Harry Winston, Inc. and the UCLA Children’s Discovery and Innovation Institute have named the first three recipients of the inaugural Harry Winston Fellowships. You may remember that the luxury jewelry and watch brand presented a $1 million gift to establish the fellowship that supports the work of young pediatric physician-scientists from Mattel Children’ s Hospital UCLA who are conducting research to prevent, treat and cure disease and illness in children. “Through the Harry Winston Fellowship Fund, we are … supporting these young physician-scientists whose vital contributions to pediatric research will help to enable healthy and brilliant futures for children around the world,” said Nayla Hayek, Harry Winston CEO. The Harry Winston Fellows represent physician-scientists in their second or third year of fellowship at UCLA (a period of specialized training following a doctor’s residency) who have demonstrated a commitment to a career in academic medicine. The fellows, who have all shown unparalleled excellence in clinical and research skills, are also extremely bright, exceptionally hardworking and driven by a desire to make a significant difference in their field. Harry Winston Fellows will be chosen annually by an internal selection committee led by Dr. Sherin Devaskar, physician-in-chief of Mattel Children’s Hospital UCLA and executive director of the UCLA Children’s Discovery and Innovation Institute. “The Harry Winston Fellowship Fund will support the best and brightest subspecialty fellows toward becoming exceptional academic physician-scientists who will go on to collaborate and establish networks locally, nationally and globally,” Devaskar said. The recipients will be formally announced at a reception held on Oct. 9 in Los Angeles. The 2014 – 2015 Harry Winston Fellows are:
Dr. Kristina Adachi, a third-year fellow in the division of pediatric infectious diseases. Adachi’s work focuses on untreated sexually transmitted infections (STIs) during pregnancy and the deleterious impact of these infections on infants' health.
Dr. Leslie Kimura, a second year fellow in the division of pediatric endocrinology. The incidence of diabetes, particularly type 2, is on the rise, but drugs to treat it have not focused on the largest tissue utilizer of glucose—skeletal muscle.
Dr. Edward Talya, a second year fellow in the division of pediatric gastroenterology, hepatology and nutrition. His research focuses on patients with short bowel syndrome, which is a disease where the patient is missing enough of the small intestine that they cannot get the nutrition they need from eating. Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes website.
Harry Winston Diamond Corp., in an interim trading update, said the first two months of the third quarter have seen the jewelry and watch sales continue to increase. Sales have been particularly strong in the U.S. and Japan. Chinese customers represent a growing share of the clientele in all sales regions. Strong advertising of new product lines, such as Midnight watches, bridal and designer jewelry, has delivered particularly strong increases while sales continue in high jewelry, Harry Winston's traditional business.
The Toronto-based company, which does business as a luxury retailer and a diamond miner, said it released its update in response to recent market volatility surrounding the Euro sovereign debt crisis.
The company said its mining business, which consists of 40 percent ownership of the Diavik Diamond Mine in northwest Canada, is modestly ahead of its production plan while joint venture cash calls have been below budget in Canadian dollars which, combined with the fall in the Canadian dollar against the company's reporting and sales currency of US dollars, gives an 11 percent reduction in joint venture operating costs for the first two months of the quarter against plan.
The company said it has approximately $ 112 million of rough diamond inventory at June sales prices (prices peaked at the July sale) and a further $75 million of capacity in its mining debt facility. The jewelry and watch business has its own credit facility secured by its inventory.
Having increased in price by around 25 percent over the past year up to the end of July, the polished round diamonds that form the core of its jewelry sales, and polished diamond inventory, have since declined in price by about 10 percent. The price changes are not uniform with some items, such as fancy shapes, not declining at all. Over the same periods rough diamond prices increased by around 50 percent, but are now correcting against polished prices.
The credit facilities essential to the diamond polishing industry are largely underwritten by European banks that are currently under stress with European sovereign debt issues, the company said. Credit hasn’t been withdrawn or reduced, but neither have they been increased against higher unit prices. The processing industry is now selling polished and reducing rough purchases to increase liquidity even as jewelry retail consumption continues at levels higher than last year.
“The credit crisis of 2008/9 was centered on consumer credit and the banks that were supporting it. This had a dramatic effect on the consumer. The current crisis is centered on sovereign debt and the largely European banks that are its holders, while consumer off-take remains resilient,” said Robert Gannicott, Harry Winstion Chairman and CEO.
“Although we continue to make small sales of specific rough diamond assortments to specialist clients, we have elected not to make broader rough diamond sales into an unstable market that seeks bargains. As a result, significant rough sales revenues from this period will be deferred into the fourth quarter, and possibly subsequent periods. This time of the year is traditionally quiet in the rough diamond market being the Jewish and Indian holiday periods. We expect a return to normality in November as demand increases in the lead-up to the Christmas, Indian wedding and Chinese New Year seasons.”
A Harry Winston platinum ring centered with an emerald-cut 19.51-carat diamond will be one of the top items being offered at Sotheby’s New York Important Jewels auction on September 24.
The ring, flanked by two triangle-shaped diamonds weighing 2.92 carats, has a pre-auction estimate of $1.2 - $1.8 million. It is from the family of George Rothman, the successful real estate developer and philanthropist who created the Rothman Foundation. It is the top lot among a collection of jewelry the family has put on sale that include pieces by Bulgari, David Webb and Van Cleef & Arpels.
The Harry Winston ring is one of three such rings that have high estimates of more than $1 million at the upcoming sale. The others are:
* A pear-shaped diamond weighing 15.10 carats, flanked by two smaller pear-shaped diamonds weighing approximately 2 carats will also appear in the sale with an estimate of $1.25 million - $1.75 million. The ownership is identified by the auction house as being from a New York estate.
* A 9.77-carat, cut-cornered rectangular step-cut diamond accented by small round diamonds weighing approximately 0.70 carat, and mounted on platinum. The ring, which is identified as the property of a lady from Texas, has an estimate of $800,000 to $1.2 million.
Fancy colored diamonds have made their mark in recent years on the auction market and Sotheby’s leader in this category for the upcoming auction is a 1.08-carat pear-shaped fancy vivid blue diamond (pictured above), on a platinum mounting accented by round near colorless diamonds. This item has an estimate of $450,000 - $650,000.
The upcoming auction will also feature several pieces from the collection of Alex & Elisabeth Lewyt, featuring custom-designed and period pieces by French jewelers such as Schlumberger, Suzanne Belperron and René Boivin. Items of note from the Lewyt collection include:
* A platinum, palladium and diamond triple-band cuff-bracelet by Belperron (pictured above). It was worn by Elisabeth Lewyt on her wedding day. The bracelet has three tapered rows set with 75 old mine-cut diamonds weighing approximately 16.95 carats. It has an estimate of $40,000 to $60,000.
* An 18k yellow gold reclining Labrador retriever brooch by René Boivin (pictured above). The torso, ears, paws and tail of the dog are set with numerous round and single-cut diamonds of near colorless, brown and yellow hues weighing approximately 28.95 carats. The collar is set with 19 buff-topped rubies. The eyes are made of two cabochon citrines and the nose and pads on the back paws are accented by a blackened gold. Its estimate is $70,000 - $90,000.
* A platinum and diamond double-clip pendant-brooch by Schlumberger, set with marquise-shaped diamonds weighing 5.22 and 5.28 carats, both E color, VS1 clarity; estimate $200,00 - $300,000.
Harry Winston Diamond Corp. said Wednesday that it has paid $200 million to purchase a 9 percent interest in the Diavik Joint Venture from Kinross Gold Corp. With the transaction complete, Harry Winston now owns 40 percent of the Diavik Diamond Mine in the Northwest Territories of Canada. Rio Tinto owns the remaining interest.
Kinross received $50 million in cash, $70 million in debt securities and 7.1 million shares of Harry Winston. The promissory note will bear interest at a rate of 5 percent annually with a maturity date of August 25, 2011.
The deal was first announced between the two Toronto-based companies on July 23.
Harry Winston Diamond Corp. is a specialist diamond enterprise with assets in the mining and retail segments of the diamond industry. Harry Winston supplies rough diamonds to the global market from its 40 per cent ownership interest in the Diavik Diamond Mine. The company's retail division is a premier diamond jeweler and luxury timepiece retailer with salons in key locations, including New York, Paris, London, Beijing, Tokyo, and Beverly Hills.
Kinross Gold Corp. is a gold mining company with mines and projects in Canada, the United States, Brazil, Chile, Ecuador and Russia.
A 10.6-carat fancy blue diamond known as the “Royal Blue” is available through M.S. Rau Antiques in New Orleans. The asking price is $9.8 million.
Blue diamonds are among the rarest in the world so it seems unusual that this cut-corned, modified brilliant cut gem is the second significant blue diamond to appear on sale in August. A week earlier, Sotheby’s Hong Kong announced that it is offering a 7.59-carat round fancy vivid blue diamond that is estimated to fetch $19 million.
This stone has a VVS1 clarity grade, notable for having “very, very slight” inclusions, according to the report from the Gemological Institute of America. It is one step away from being graded as “internally flawless” under the GIA scale. The chemical that creates the blue in diamonds is boron, which this gem has.
The diamond is set on a platinum and rose gold ring surrounded by vivid pink and colorless diamonds.
Fewer than 0.3 percent of all colored diamonds graded by GIA were predominately blue. Gem expert and dealer Robert Procop, also the co-designer of Style of Jolie jewels with Angelina Jolie, knows as much as anyone when it comes to the rarity and historical significance of these gems.
“Blue diamonds are rarely discovered and only a few have been found over centuries of mining, making it one of the rarest gems of the world,” he said. “(They) have also been the most gifted by royalty and historical figures making them the most mysterious and precious of jewels. I rarely see a blue diamond that I do not admire.”
Large fancy blue diamonds have been sold for record-breaking figures at auctions and other sales, several have had illustrious provenance through its mine origins and ownership throughout centuries. The most famous blue is the Hope Diamond, last purchased by famed luxury jeweler, Harry Winston, who donated it to the Smithsonian National Museum of Natural History in 1958.
The asking price for the “Royal Blue” ring is more than $924,500 per carat, which seems a bit steep, particularly since it has no known provenance. However, it is only about half of the per-carat price of a 5.30 blue diamond purchased by another famed jeweler, Laurence Graff, at a Bonhams auction in London in April 2013. The final price was $9.6 million or $1.8 million per carat.
International luxury brand, Harry Winston, on Friday opened a salon in Harrods, marking its second retail location in London and 27th worldwide.
Located in the luxury department store’s fine jewelry room, the salon was designed by Studio Sofield, Inc. of New York. The 631-square-foot space uses a soft taupe and grey color palette complements the custom designed black lacquer and antique bronze furniture and display vitrines, with vintage floor lamps, bespoke chandeliers and hand beaded silk walls completing the look.
The salon contains dedicated high jewelry, bridal jewelry, and timepieces, including one-of-kind pieces from the brand’s Ultimate Adornments. Harry Winston’s largest high jewelry collection to date, was on display for the grand opening.
Frédéric de Narp, president & CEO, Harry Winston Inc., said the new salon is part of the company’s expansion plan.
“Harry Winston salons are located in the finest shopping destinations across the globe,” he said. “As one of the great international cities, London is a key and critical part of our retail growth.”
Ekati diamond mine.Photo credit: Jason Pineau, through Wikipedia
Harry Winston is in talks to purchase an important asset of BHP Billiton’s diamond business, according to published reports.
The Toronto-based company, which describes itself as a diamond enterprise with premium assets in the mining and retail segments of the diamond industry, has secured bank financing for a possible deal to buy the Ekati diamond mine in Northwest Territories of Canada, according to the Financial Times. However, the deal, which was to be completed by mid year is going slower than expected and could even break down.
Harry Winston, best known as a luxury jewelry and watch retailer, already owns a 40 percent share in the Diavik diamond mine in the same area with Rio Tinto, which owns a 60 percent stake.
Both BHP Billiton and Rio Tinto announced in November 2011 that they are looking to get out of the diamond business to focus on larger, more-profitable assets from their vast mining businesses.
It’s a complicated matter, according to the report, because if Rio Tinto agreed to sell Diavik to Harry Winston, it would make it more difficult for the mining giant to sell the rest of its diamond assets.
Harry Winston Diamond Corp. said Friday it has struck a deal to purchase an additional 9 percent stake in Diavik Diamond Mine for $220 million from Kinross Gold Corp. When the purchase is finalized, Harry Winston will own 40 percent of the mine in Canada’s Northwest Territories of Canada.
Toronto-based Harry Winston will pay Kinross $50 million in cash, 7.1 million in stock and $70 million in debt securities, according to a company statement.
In a related development, Toronto-based Kinross said Friday that it has reached an agreement to sell approximately 15 million common shares of Harry Winston to a group of financial institutions. Kinross' direct ownership interest in Harry Winston following closing of the transaction will be approximately 8.5 percent. Kinross originally acquired the interest in Diavik in March 2009, as part of a deal that saw the company also gain a 19.9 percent stake in Harry Winston for $150 million.
“The transaction represents an opportunity for Harry Winston to consolidate its interest in the Diavik mine, Canada's largest diamond producer and one of the most profitable diamond mines in the world,” Robert Gannicott, Harry Winston chairman and CEO, said in a statement.
Harry Winston Diamond Corp. has assets in the mining and retail segments of the diamond industry. Harry Winston supplies rough diamonds to the global market and the company's retail division is a diamond jeweler and luxury timepiece retailer with salons in key locations, including New York, Paris, London, Beijing, Tokyo and Beverly Hills.
The Swatch Group has big plans for the recently acquired Harry Winston brand, finding it an asset that is both complimentary and with plenty of room for growth.
The Swiss conglomerate on Tuesday for the first time partly revealed what it plans for the luxury retail brand during its earnings report for the first half of the year. The company, which now owns 20 watch and jewelry brand, said that gross sales for the period increased 8.7% year-over-year to 4.18 billion Swiss francs ($4.47 billion). Net income increased 6.1% compared to the first half of 2012 to 768 million Swiss franc ($821,700), with a 19.2% return on net sales. Sustained growth was reported in all regions.
“The continued integration of the Harry Winston brand will … make a significant contribution, as this brand has huge, almost untapped market potential in the high jewelry and watches activities,” the company said, adding that this potential will start to be seen in the second half of the fiscal year.
Swatch Group said that following its $1 billion acquisition of Harry Winston in March, the conglomerate invested in infrastructure, settled all debts, expanded its equity capital base and increase inventory. “The latter was initiated in order to ensure that our clientele has access to the best selection of jewelry as well as to increase its availability,” Swatch Group said in its earnings statement.
“The acquisition of the Harry Winston brand did more than simply round off the group’s already broad brand portfolio; it also expanded the high jewelry segment, along with the segment’s value chain from production up to and including the retail network,” Swatch added.
In May, Swatch Group, in Harry Winston’s name, purchased a 101.73-carat diamond at auction for $26.7 million and renamed it the “Winston Legacy,” explaining that it “reconfirms the number one position of this high jewelry brand.”
Swatch says that its see the luxury watch segment of the brand as having the best potential for worldwide growth.
“The Harry Winston brand has an extremely large and almost untapped potential in the watch sector, which the group now aims to expand further using its experience around the world,” the company said. “The necessary funds will also be invested into this activity.”
In fact, the acquisition led to some company restructuring by integrating the production division into the watches and jewelry business unit. “This integration will also provide a more uniform view of activities, facilitating comparability with our competitors.”
Other highlights of the company’s first-half report include:
• Benchmarked to the 1.5% export growth for wristwatches of the Swiss watch industry in the first half of 2013, the segment Watches & Jewelry (now including production) growth was more than 9%.
• An operating profit of 910 million Swiss francs ($973,500) was recorded, with an operating margin of 22.7%, despite a high marketing spend, important investments in products and production methods, and the integration of Harry Winston.
The company said its outlook “remains very promising,” expecting a strong second half.
Known as the “Martian Pink,” the extremely rare 12-ct. diamond was owned by a private collector. It was purchased from Harry Winston in 1976—the same year, the United States launched its first satellite on a mission to Mars: The Viking Landers. Ronald Winston named the diamond to honor the historic event. It sold for approximately $1.5 million per carat. Its estimate was $8.4 million to $12.3 million. The diamond is mounted on a size-7, 18k gold ring.
Other significant diamonds sold at the auction include:
* A pair of brilliant-cut unmounted diamonds, weighing 10.88 and 10.88 carats, sold for $4.8 million. Both diamonds are of D color, flawless clarity, with excellent cut, polish and symmetry.
Photo Credit: CHRISTIE'S IMAGES LTD. 2012
* A three-diamond ring from JAR sold for $2.9 million. It consisted of a 10.67-carat D color, internally flawless, oval-shaped diamond at its center is flanked by two D color, internally flawless diamonds of 6.07 and 6.04 carats. The estimate was $2.5 million – $3.5 million.
Photo Credit: CHRISTIE'S IMAGES LTD. 2012
* A second large diamond with ties to Harry Winston, an 11.85-carat D VVS1 potentially flawless round brilliant-cut diamond, sold for just under $2 million, within its is estimate.
Photo Credit: CHRISTIE'S IMAGES LTD. 2012
* It was mostly diamonds that stole the show, but one other gemstone elbowed its way into being one of the top items sold Tuesday. A 6.04-carat Burmese ruby and diamond ring by Etcetera sold for $3.4 million, just within its high estimate. This no heat cushion-shaped stone possesses the most desirable “pigeon’s blood red” color.
The Swatch Group and HarryWinston are celebrating their new partnership with the purchase of a pear-shaped, D color, flawless diamond of 101.73 carats for more than $26.7 million at Christie’s Geneva Magnificent Jewels Sale Wednesday.
Billed by the auction house as the “perfect diamond,” the price paid set a world auction record for a colorless diamond. The diamond (which sold for $254,400 per carat) has been renamed “The Winston Legacy.” “The acquisition of ‘Winston's Legacy’ underscores the brand’s continued commitment to perfection and quality at the highest level. A stone of this caliber and rarity is the perfect continuation of Mr. Winston’s legacy as the King of Diamonds,” said Nayla Hayek, the new CEO of Harry Winston. Rahul Kadakia, head of Jewelry, Christie's Switzerland and Americas, added: “Harry Winston acquired the most perfect diamond ever offered for sale at auction, ‘Winston Legacy,’ continuing the tradition of buying and selling only the very best, a trait of the founder Mr. Winston himself.” The diamond was the top lot in a sale that fetched a record-breaking $102.1 million, selling 86% by lot and 93% by value, the highest result ever for a various-owner jewelry auction at Christie’s. It included several world records for diamonds, pearls and sapphires. A total of 20 lots sold above $1 million with 147 buyers coming from 31 countries across five continents, Christie’s said. Among the other notable purchases at Christie’s Geneva Magnificent Jewels Sale, are: * 19.88-carat cushion-shaped Kashmir sapphire, named “The Star of Kashmir” sold for more than $3.4 million, or $175,202 per carat, breaking the world auction record for a per-carat sale of a sapphire. * Single strand of natural pearls measuring from 13.7 to 10.4mm sold for more $8.4 million, setting a world auction record for a single-strand natural pearl necklace. Drop-shaped natural pearl ear pendants of 261.66 and 216.37 grains sold for more than $2.4 million, setting a world auction record for a pair of pearl ear pendants. * 1.92-carat fancy red diamond sold for $3.2 million, setting a world auction price for a red diamond.
Meet “The Winston Blue,” considered the world’s largest known flawless vivid blue diamond. Harry Winston purchased the sparkling gem for nearly $23.8 million at Christie’s Geneva Magnificent Jewels sale. At nearly $1,800 per carat, the price per carat paid for the 13.22-carat stone represents a world record for a blue diamond. It is the second major diamond purchase by Harry Winston since it was acquired by the Swatch Group, one of the world’s largest watch and jewelry conglomerates. Last year, Harry Winston purchased a 101.73-carat colorless diamond for a world record $26.7 million ($254,400 per carat), at Christie’s Geneva jewelry auction. The Winston Blue was easily the top lot of Wednesday’s auction, which realized more than $154.1 million, with 85 percent sold by lot and 94 percent by value. It achieved the highest total ever for a Jewelry sale in auction history, beating the Christie’s New York December 2013 Elizabeth Taylor jewelry sale, which totaled $137.2 million over a two-day period. The other top lots included: * Belle Epoque diamond Devant-de-Corsage brooch, by Cartier that sold for more than $17.5 million. * A 75.97-carat pear-shaped D color, flawless diamond that sold for more than $14.4 million. * A 76.51-carat cut-cornered square-cut light pink, VVS1 diamond necklace for $10 million, a world auction record for a light pink diamond. by Leviev $130,712 per carat. * The “Ocean Dream,” A 5.50-carat triangular-cut fancy vivid blue-green, SI1 diamond that sold for more than $8.6 million, a world auction record for a blue-green diamond.
The powerful presence of the Swatch Group was present like never before at Baselworld 2013, taking up a larger chunk of the renovated Hall 1.0, the most prestigious area at the show for the majority of its 19 watch brands, which span just about every segment of the watch industry.
In addition, the company, which also owns watch movement manufacturers and retail brands, hosted a separate museum-quality exhibition in Hall 2.0 for its Swatch timepieces; the brand that has been the most responsible for the company’s enormous success. The newest brand under Swatch Group’s enormous umbrella, Harry Winston, still had its own space in Hall 1.1, as the $1 billion acquisition occurred in March, well too late for Harry Winston to be folded into the other company holdings (perhaps next year). Below are some of new releases from the seven brands in the group that I had the chance to visit during the eight-day tradeshow. I included Harry Winston as the company's new CEO, Nayla Hayek, was announced Friday.
Blancpain Carrousel, Minute Repeater and Chronograph The Swiss luxury watch brand has created a fully mechanical watch that combines a one-minute flying carrousel (similar to a tourbillon) and a minute repeater with a flyback chronograph. For the minute repeater, the blades of its cathedral gong wrap one and a half times around the movement to emit the sound. Its transmission is optimized by fixing the gongs inside the case, which increases volume and clarity. A flying governor reduces the background noise produced by the movement. The pusher for the chronograph function with the flyback or instant-restart function (historically used by pilots) is located at 4 o’clock and enables the wearer to restart a time measurement while a first measurement is in progress. The watch comes in a red gold 45 mm case with a chapter ring, a 30-minute and hour-markers in grand feu enamel. The open dial and sapphire crystal case-back provides in-depth views of this complex device.
Breguet Classique Chronométrie 7727 Available in rose or white gold, the watch is fitted with the new in-house caliber 574DR, which has a balance frequency of 10Hz.thus, improving the time-keeping performance of the balance and spring. It is fitted with a double balance-spring, pallet lever and escape wheel, all in specially prepared silicon. The result is a regulating power equivalent to around 830 microwatts. Despite its high frequency, it has a power reserve of 60 hours. However, Breguet says the major innovation of this model is the use of magnetic pivots, which not only controls the negative effects of magnetism in a watch, but also uses the magnetic force to improve the pivoting, rotation and stability of the balance staff. The dial shows an off-center chapter of hours and minutes, small seconds at 12 o'clock, a power-reserve indicator at 5 o'clock and a tenth-of-a-second indicator at 1 o'clock having a patented lightweight silicon hand with low inertia that doesn’t affect the balance. The pare-chute is visible at 2 o'clock, both as a reminder of A-L Breguet’s 1790 invention and to make the timepiece slimmer. The dial is engine-turned in six patterns: “Geneva waves” in the center, a hobnail pattern for the small seconds, sunrays on the tenth-of-a-second dial and chevrons for the power-reserve indicator. The hours chapter is cross-hatched while a barleycorn pattern decorates the outer edge. The hands are in polished steel with the Breguet open tip, while the case displays delicate fluting.
Glashütte Original Senator Chronometer Regulator This new timepiece unites the classic regulator display with an officially certified manual winding chronometer movement. The dominant central position on the lacquered silver-grainé dial is the blue minute hand with its polished eye. On the central axis above and below the minute indicator are smaller hour and seconds displays. The Glashütte Original panorama date display is placed at 3 o’clock. The date change takes place at midnight. From 6 in the morning until 6 in the evening, the small circle in the region of the hour display is white; from 6 pm until 6 am it is black. This timepiece is framed by a 42 mm polished case in red gold or a white gold version. The watch is driven by the caliber 58-04, which permits the precise coordination of minute and seconds hands. A second-zero-stop-mechanism makes it is easy for the wearer to set the exact time. When winding the crown, the time display is stopped, the second hand jumps to zero and remains there. At the same time, the minute hand is also moved to the next full minute index. When one winds the crown to set the time, the minute hand always rests only on the full minute indices. This provides the correct relationship of the displayed seconds and minutes. A power reserve display at 9 o’clock indicates the energy remaining in the manual winding movement. The watch is officially certified and bears a certificate from the German Calibration Service after a 15-day testing period.
Hamilton Jazzmaster Regulator The H-12 movement in this watch allows the separation of the minute and hour hands on different axials and sub-dials. The idea is to make the watch more accurate and provide an easier way for the person who owns the timepiece to read the time. However, I think most people wear such a watch is because of the appearance. Add to this the blue or silver dial and you have watch that can be worn for casual or formal occasions. There are three 42mm timepieces in the collection. In addition to the dial choice straps come in either leather or stainless steel.
Harry Winston Opus XIII (top photo) It was difficult to determine which of the many technically advanced and aesthetically pleasing timepieces from this luxury brand to show. In the end I chose the newest addition to its iconic Opus collection. Opus is the watch that introduced Harry Winston to the world as more than just luxury jeweler. Each year the brand works with gifted independent watchmakers to build a timepiece with the goal of defying the conventional rules of watchmaking. This year the newest member of the Swatch Group created a watch where the minutes accumulate around a track. Eleven rotating silver triangles spring from a faceted dome to show the hours. Every 12 hours, Harry Winston’s logo is appears on the dial and vanishes after sixty minutes. The 59 minute hands pivot on a ring of steel shafts that are held in place by 242 ruby bearings. The mechanical watch is powered by the in-house HW4101 movement, which has 364 components. The case is made of 18k white gold.
Jaquet Droz Perpetual Calendar Eclipse This newest version of the Eclispe line presents a new moon phase complication, which displays the cycles of the night of the sky on the dial, with the perpetual calendar complication. On the black or ivory-colored Grand Feu enamel dial, two straight hands contrast with the curves of two wavy hands, tipped with a crescent moon. The calendar information is easily read on several places on the dial: on the right is the date, on the left is the day of the week. At 12 o’clock, a single-hand counter indicates the month with the leap year appearing in a small window. At 6 o’clock, a black or ivory-colored onyx index moves across the face of a golden moon, revealing, and then concealing it until its total eclipse, unfolding on a night sky of eight golden stars, the watchmaker’s favorite number. The timepiece is powered by a Jaquet Droz 5853LR.4 self-winding mechanical movement, double barrel, perpetual calendar, retrograding moon phase, 22-carat white gold oscillating weight.
Longines Heritage Military 1938 Following Orb’s victory in the Kentucky Derby, Longines, the Official Watch and Timekeeper for the celebrated race, awarded the horse’s owner, trainer and jockey with watches from the brand’s Saint-Imier collection at the event’s Winners’ Circle Party. The Swiss watchmaking brand was the Official Watch and Timekeeper of Kentucky Derby 139 and Entitlement Partner of Longines Kentucky Oaks 139. Now the luxury watch brand is Paris where it is the Official Timekeep of Roland-Garros, home of the French Open. Prior to both events, the brand was in Baselworld showing off its new watch collections. Among them was the Longines Heritage Military 1938, which uses the same aesthetics based on the design of a military watch produced by Longines in the 1930s. With a diameter of 42 mm and fitted with the automatic calibre L705, this timepiece displays the hours and minutes, a 30-minute counter at 3 o’clock, the date at 6 o’clock and the small second at 9 o’clock. Large white Arabic numerals, coated with Super-LumiNova and a minute circle white as well contrasts with the deep matt black of the dial.
Swatch Group Ltd. said Friday that Nayla Hayek, chairwoman of the Swiss holding company and daughter of the company’s founder Nicolas Hayek, has been named CEO of Harry Winston, Inc., effective immediately.
The luxury diamond jeweler and timepiece retailer has salons in key locations throughout the world—including New York, Paris, London, Beijing, Shanghai, Hong Kong, Singapore, Tokyo and Beverly Hills.
The brand’s namesake, Harry Winston (March 1, 1896 – December 28, 1978) founded the luxury retail company in 1932. He was among the most famous jewelers in the world and the first jeweler to lend jewels to an actress for the Oscars red carpet in 1944. He was also well-known for donating the Hope Diamond to the Smithsonian Institution in Washington.
The Swatch Group, based in Biel, Switzerland, is active in the manufacture and sale of finished watches, jewelry, watch movements and components. It is the world’s largest watchmaking group and supplies nearly all the components required for the watches sold by its 19 individual brands and the multi-brand Tourbillon retail company.
Honorees Maureen Stockton and Bryan Stockton attend the second annual Kaleidescope Ball.
Harry Winston, Inc. presented a $1 million gift to the UCLA Children’s Discovery and Innovation Institute, part of the Mattel Children’s Hospital UCLA, to establish the Harry Winston Fellowship Fund. The gift was presented April 10 at the second annual Kaleidoscope Ball – Designing the Sweet Side of L.A. at the Beverly Hills Hotel, which benefits the children’s hospital. Hosted by Maria Menounos, the star-studded event honored Emmy Award-nominated Julianne Hough and Emmy Award-Winning Derek Hough with the Kaleidoscope Award - given to members of the entertainment industry who bring light and laughter into the lives of children through their professional achievements and personal humanitarianism. Additional honorees at this year’s event included Maureen & Bryan Stockton who received the Humanitarian Award for their commitment to civic philanthropy, and 9-year-old Grace Suomi - a former patient of Mattel Children's Hospital UCLA – who received the Innovator Award. As the first corporate sponsor of Mattel Children’s Hospital UCLA’s innovative pediatric fellowship program, Harry Winston will support the work of young pediatric physician-scientists who are conducting research to prevent, treat, and cure disease and illness in children.
“The Los Angeles community holds a very special meaning for Harry Winston. It is where Mr. Winston spent his own childhood, and first began to realize his passion and future would be in precious jewels.” said Nayla Hayek, CEO of Harry Winston, Inc. “Through the Harry Winston Fellowship Fund, we are so proud to support the vital work of these talented young physician-scientists. It is our hope that through their innovative research and groundbreaking ideas, all children will have the opportunity for a more brilliant and healthy future, to realize their own dreams.”
Harry Winston Fellows and fund recipients will be chosen annually by an internal selection committee led by Dr. Sherin Devaskar, physician-in-chief of Mattel Children’s Hospital UCLA and executive director of the UCLA Children’s Discovery and Innovation Institute. The Harry Winston Fellows will represent physician-scientists in their second and third year of fellowship who have demonstrated a commitment to a career in academic medicine.
“The UCLA Children’s Discovery and Innovation Institute promotes scholarship and lifelong learning at all levels of career development. The Harry Winston Fellowship Fund will support the best and brightest subspecialty fellows toward becoming exceptional academic physician-scientists who will go on to collaborate and establish networks locally, nationally and globally. The ultimate goal is to promote health and improve the quality of life for all children now and in the future,” said Dr. Devaskar.
The three Harry Winston Fellows, whose appointments are pending, are researching diseases that affect children and families worldwide.
Dominion Diamond Corp., formerly known as Harry Winston Diamond Corp., said Wednesday it has completed its acquisition of the Ekati Diamond Mine in Canada’s Northwest Territories and related diamond sorting and sales facilities in Yellowknife, Canada, and Antwerp, Belgium. The Canadian subsidiary of mining company BHP Billiton was the majority owner of the mine and the other facilities. BHP is exiting the diamond business to concentrate on other mining activities. The purchase price was $500 million plus price adjustments of $53 million for items that include interest, tax and capital expenditures bringing the total amount paid to $553 million. On the date of closing Ekati had cash on hand of approximately $65 million and two sales cycles (10 weeks) of diamond inventory either in the process of being sorted and valued or available for sale. Dominion Diamond said the inventory will be valued against its rough diamond sales assortments. Dominion Diamond also provided letters of credit to the Government of Canada of approximately CAD$127 million, in support of reclamation obligations for the Core Zone. The purchase price and the letters of credit were satisfied from or secured by cash on hand. The Ekati Diamond Mine consists of the Core Zone, which includes the current operating mine and other permitted kimberlite pipes, as well as the Buffer Zone, an adjacent area hosting kimberlite pipes having both development and exploration potential. Dominion Diamond funded the acquisition through its recent $1 billion sale of the Harry Winston luxury retail brand to Swatch Group. The company also owns a 40 percent stake in the Diavik Diamond Mine, also in the Northwest Territories of Canada. The acquisition of Ekati has made the company the largest supplier of Canadian diamonds. Dominion Diamond is still flush with cash and the speculation is it will use the money to buy the remaining 60 percent interest in the Diavik Diamond Mine from mining company Rio Tinto, which has, like BHP, stated a desire to pull out of the diamond business to focus on other mining activities. Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Web site.
