September Hong Kong Jewellery & Gem Fair in Pictures

The annual dragon dance that opens the fair.

HONG KONG — It’s the largest fine jewelry tradeshow in the world and it has become the most important event for the worldwide jewelry industry. The September Hong Kong Jewellery & Gem Fair lacks the product introductions, fashion trends and the glitz and glamor of Baselworld and the Las Vegas jewelry shows. But when it comes to the business of buying and selling, there's nothing that compares.

Etienne Perret's ceramic jewelry.

“This is the meats and potatoes that fill jewelry store shelves all over the world,” said U.S.-based independent jewelry designer, Etienne Perret, a longtime buyer at the show who was exhibiting for the first time.

My Hong Kong friend Payal Shah, owner of L'Dezen Jewellery showing her diamond earrings.

In some ways it’s a difficult show to cover. Few exhibitors are interested in discussing their products or the jewelry business in general. I spent much of my time arguing with exhibitors about taking pictures of their products. One threatened to call security even though I was authorized to take photos.

I managed to take plenty of pictures anyway as well as get a good overview of the enormity and importance of the show and how Asia has become the most important jewelry market in the world. Stories that I wrote about the show (which runs till September 25) can be read on the JewelleryNetAsia website. There will be more stories appearing on Forbes.com and the Financial Times newspaper. For my site, I decided to take a more visual approach by presenting a pictorial of the show. Enjoy.

Tara and Sons pearl display.

Jeweled sculpture by Stone Young, owner of Handosy Jewelry Co. of Guangzhou, China. He said it was inspired by Noah's Ark.

Colored gemstone jewelry from Chinese retailer Enzo.

Jewelry from Stefan Hafner

Coral sculptures by Lucoral's of Taiwan.

Early Reports at Hong Kong Jewelry Fair: Moderate Sales, Moderate Optimism and Diverse Offerings

Buyers crowd around a Japanese Pearl dealer.

HONG KONG — Acres of diamonds, miles of pearls and nearly every gemstone on earth were on display during the second day of the SeptemberHong Kong Jewellery & Gem tradeshow.

I arrived for the second day and while the show had a slow comfortable pace early, by afternoon the aisles were jammed with buyers. This is the first part of the two-tier tradeshow. The first being held now (September 19-23) at the Asia World Expo Centre for raw jewelry making materials along with technical equipment and packaging. The finished jewelry portion of the show, which attracts the most attention, will open Thursday and run till September 25 at the Hong Kong Convention & Exhibition Centre near the center of this bustling, business-minded city.

An assortment of gemstones from Marcel Poncet.

Jewelry manufacturers from around the world are the primary buyers at the Asia World Expo portion of what has become the world’s largest fine jewelry show, finding equipment and materials to meet their diverse needs.

One person representing a Filipino-based gold jewelry manufacturer said he was happy with the compact size and technological advancements in the new laser soldering machines at the show and was ready to purchase.

A pearl jewelry manufacturer from Hawaii said she was easily able to find the types of pearls she needed for her market. Hawaii depends on tourism, particularly from Asia and the U.S. She said in recession has left only the high-end Asian market and the low-end U.S. market.

“The middle has disappeared,” she said. She was also a bit perplexed by the cost of pearls these days. All pearls have risen in price dramatically she said, noting as an example that an average-sized golden South Seas pearl costs about $3,000.

Coral art displays from Lucoral's of Taiwan.

According to reports, the first day of the show was on the moderate side but diamond dealers are cautiously optimistic, citing recoveries in both the China and U.S. market. Leibish Polnauer, founder and CEO of Leibish & Co., a fancy-colored diamond company, said one- to three-carat fancy light yellow diamonds have been popular lately because they present a value.

“The world is not coming to an end,” Polnauer said. “They (Chinese consumers) maybe making less money then they made a couple of months ago but they made money and they’re happy and they’re looking forward to enjoy what they made. The American market altogether is improving.”

He continued, “I think the show has a better momentum than the last one (held in June). “The prices (of diamonds) are settled and with the fancy colored stones, there’s no downturn at all…. In general the mood in America is not bad and in China, it’s getting back from the temporary slowdown they experienced in the summer and I think the jewelry consumption will go up.”

Diamond dealers at the show and on the flight arriving to the event said large statement diamonds continue to be popular as an investment for wealthy consumers.

ICA Moves Headquarters to Hong Kong

Members of the board of directors of the ICA and staff of the new Hong Kong office. Photo credit: ICA

In another example of Asia’s newfound dominance in the jewelry industry, the International Colored Gemstone Association has moved its international headquarters to Hong Kong from New York. The new offices are located in Hong Kong's gems and jewelry manufacturing district and are run by a team of English and Chinese speaking staff, led by Daniel Leung, executive assistant to the president.

The ICA, which will maintain a presence at a new location in New York, says the decision to move its head office is aimed at bringing the organization into closer touch with the rapidly expanding Asian markets, and to actively participate in the further development of the colored gemstones and jewelry industry in the region. In addition, ICA is seeing an expansion in its membership in Asia, and the Hong Kong offices will enable it to better serve them, says ICA President Wilson Yuen.

"This was not a decision that we made easily, and it followed a great deal of debate," Yuen says. "Our international offices have been based in New York for many years. But we felt that we could not ignore the trends that are sweeping our industry and the global economy in general.

"Asia in general, and China in particular, is claiming a larger role in international business, and it is imperative that we are based in the heart of the region to enable us to provide a comprehensive service to our membership and to the industry,” he adds. “This is what it is expected of the ICA.”

The transition being overseen by former ICA executive director, Barbara Wheat.

The new Hong Kong offices were opened July 9 at a special in-house inauguration ceremony attended by ICA board of directors. 

ICA is a non-profit worldwide organization that represents the global colored gemstone industry. Founded in 1984, it’s now comprised of almost 700 gemstone dealers, cutters and miners from 47 countries.

Mila Kunis and Jewelry Designers Launch Gemfields Bespoke Colored Gemstone Jewelry Collection

Mila Kunis takes center stage among jewelry designers at Gemfields event.

Actress Mila Kunis joined a group of fine jewelry designers to help launch a bespoke jewelry collection created with emeralds, rubies and amethysts provided by Gemfields, a colored gemstone miner and marketer.

The jewelry collection was unveiled at the Phillips Auction House in London. It was created by 36 jewelry designers that partner with the London-based company and primarily consist of Zambian emeralds, Mozambican rubies and Zambian amethysts. The jewelry ranges in price from $1,130 to $750,000.

Many of the designers who created the jewelry were at the launch, including Theo Fennell, Stephen Webster, Shaun Leane, Dickson Yewn and Alexandra Mor. They shared the spotlight with Kunis and celebrities from the U.K. and India, including Jacquetta Wheeler, Kamika Kapoor and Nina Naustdal.

To coincide with the launch of this project, Gemfields presented its new global advertising campaign featuring Kunis wearing ethically sourced Zambian emeralds and Mozambican rubies shot by Mario Sorrenti in Los Angeles.

This jewelry showcase will travel to India next and then to Las Vegas where it will be displayed at the Couture show in May. 

Gemfields first announced its relationship with Kunis and the new advertising campaign about a month ago. The company first disclosed its partnership with the jewelry designers in the fall of last year.

The campaign focuses on emerald jewelry, which coincides with Gemfields main business: the mining and marketing of emeralds from the Kagem mine in Zambia, which it has a 75 percent stake in. The same mine also produces amethysts. It is working to produce a mine-to-market strategy for their emeralds that it says will be ethical, transparent and sustainable.

The company also owns a 75 percent stake in the Montepuez ruby mine in Mozambique and the Kariba amethyst mine in Zambia.

If that’s not enough, in January Gemfields finalized its ownership of iconic Russian luxury jewelry brand, Fabergé, which receives a supply of the company’s best colored gemstones.

Earlier this month, the company released a bit of bad news in its half-year financial report, saying that core earnings fell 39 percent as it held just one auction during the period compared with two in the prior year. But production climbed by two-thirds.

Production rose about 65 percent to 14.5 million carats in the first half, mainly on higher grades recovered at its Kagem mine in Zambia. Earnings before interest, tax, depreciation and amortization fell to $19.5 million for the six months to December 31, from $32.2mn a year earlier.

Revenue from rough and finished emerald sales decreased 39 percent to $27.7 million.

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Fabergé and Gemfields Finalize Merger

Gemfields has already started promoting its emeralds through an advertising campaign.

The iconic luxury brand, Fabergé, has completed its merger with colored gemstone miner and distributor, Gemfields. The merger, first announced in November, creates what has been planned all along for Gemfields since its founding fewer than 10 years ago: a way to produce a mine-to-market template for its colored gemstones.

Gemfields owns a majority stake of the Kagem mine in Zambia, which produces emeralds and amethysts, a mine in Mozambique for rubies, and prospecting licenses for other gemstones in Madagascar. Emeralds from Kagem are by far the company’s biggest product.

The plan is that Gemfields will provide an ethical and traceable source of providing its gemstones to consumers, thus fueling demand for its product. To help create this demand, Gemfields already begun an advertising and marketing campaign for its Kagem emeralds.

The merger was managed by private equity mining giant, Pallinghurst, which owned indirect equity interests of 33 percent in Gemfields and 49 percent in Fabergé and also held certain loan interests in Fabergé. After the transaction, Pallinghurst now owns 48 percent of the enlarged Gemfields. The deal reportedly values Fabergé at $142 million and was funded with 214 million shares in Gemfields.

Arne H. Frandsen, Pallinghurst chief executive, previously said that the merged company is the “next step in realizing our vision and strategy for our gemstones and luxury platform…. Once consummated, we will be well on the way to creating the colored gemstone equivalent of what De Beers has created for diamonds.”

“This transaction creates the world’s number one colored gemstone company, operating at both critical ends of the value chain,” Brian Gilbertson, Pallinghurst chairman, said Wednesday. “Gemfields can now take its vision for colored gemstones to the next level and Fabergé becomes the obvious consumer choice for high‐end, ethically supplied colored gemstone jewelry.”

Gemfields previously articulated a number of benefits of the transaction. They include:

* Positioning U.K.-based Gemfields with Fabergé’s heritage operating in the two most profitable segments within the gemstone supply chain;

* Advancing Gemfields’ “Mine and Market” strategy;

* Positioning Fabergé as the colored gemstone retailer of choice within the hard luxury retail sector, a sector with an estimated turnover of $54 billion in 2011 according to the Bain Luxury Market Study;

* Creating marketing, communication, management and supply synergies to deliver operational efficiencies; and

* Creating a platform to further increase Gemfields’ market share within the colored gemstone sector, while gaining exposure to luxury sector multiples and greater influence over product positioning and consumer awareness.

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Master Gem Carver Naomi Sarna Presents Her Jewels

Queen of the Sea is an elaborate brooch built around a natural Chinese pearl. It is made up of platinum, 18k yellow gold, 18k white gold, and oxidized sterling silver set with VS-G white diamonds, black diamonds, multicolored sapphires, faceted Ethiopian opals, and moonstones.

I still get surprised by the breadth and depth of the jewelry business. For example, I recently “discovered” gem carver and jewelry maker Naomi Sarna. And that’s only because I was contacted by the affable and hard-charging Georgia Fleming, a longtime luxury magazine salesperson who is serving as Sarna’s public relations representative.

Hand-carved 203.2-gram Rose de France amethyst.

The fact is I should have been aware of Sarna and her work as she’s been right under my nose as she has been racking up prizes at the Spectrum Awards for the past five years for her gem carvings and her one-of-a-kind jewelry. I did get to meet the energetic and good-natured Sarna in December and get an up close view of her work, which combines fluid shapes, motion, plenty of color, and a skilled combination of several jewelry-making techniques. It blends art with craft.

"His and His" rings, sizes 9 and 10.5. The size 9 ring features a 2.51 ct. natural, fancy dark orangey brown, SI2 diamond set in platinum along with multicolored orangey brown diamonds and a touch of 18k yellow gold. The size 10.5 ring features a 3.17 ct. natural, fancy dark orangey brown VS1 diamond set in platinum along with multicolored orangey brown diamonds and a touch of 18K yellow gold. 

The surprising thing about Sarna is that she has only been involved in gem carving and jewelry making for about five years, bursting onto the scene winning awards and accolades in a field that usually takes decades to perfect.

18k white gold petal set with approximately 650 gems, including VS-G white diamonds, yellow diamonds, pink diamonds, brown diamonds, green diamonds, amethysts and multi-colored sapphires.

This year alone, she took honors in the Spectrum Awards competition sponsored by the American Gem Trade Association for “Best Use of Pearls,” for an 18k rose gold necklace with white cultured pearls accented with pink diamonds; Platinum Honors for Men's Wear for her "His and His" rings featuring brown natural diamonds; and First Place for Gem Carving for her "Rose de France" 1,015-carat amethyst carving.

Pendant featuring a hand-carved aquamarine complimented by 18K white gold and VS-G white diamonds.

Sarna became successful enough in other businesses to have the financial freedom to dive full-time into gem carving and jewelry design. This and her longtime love of art and design is what she credits for her fast rise. As an art student she said she was fascinated by drapery in classical sculpture and Renaissance painting.

Brooch featuring an 80-ct. hand-carved aquamarine set in 18k white gold with VS-G white diamonds.

“I like to incorporate this love of the flow of fabric into my gem carvings and set pieces,” she said. “I think of my pieces as more than sculpture; the carving of the gem is only one part of the vision. The gem in its setting must also be in balance because there is a harmony between the jewel and the wearer. I enjoy the challenge of finding that balance and harmony.”

Pasha ring featuring a hand-carved 63.5 ct smoky quartz set in platinum and 18K yellow gold with VS-G white diamonds. 

Sarna treats her pearl jewelry differently. Whether natural or cultured, she will leave pearls alone, them in their original shapes, although she prefers unusual forms.

First Wave brooch featuring a Chinese freshwater pearl set in 18k yellow gold with multi-colored sapphires.

Her work has taken her many places including Tanzania, where she teaches the local Maasai people how to make jewelry. She does this in collaboration with TanzaniteOne, the largest and only commercial company that mines Tanzanite from the world’s only known source of the precious gem. Other mines in this region are set aside for artisanal miners from the local area.

147-gram hand-carved topaz titled "River Wind."

Her first time there she gave them 30 pliers so they create jewelry with wire. “I held them (the pliers) up and asked does anybody know what these are? They have never seen pliers before. I taught them how to do this. I knew they would be able to do it because they do fantastic bead work so I knew they would be able pick this up very quickly.”

She adds, “And off it went. It was love at first sight.”

Aquamarine Brooch featuring a hand-carved 91.64 ct aquamarine encased in 18k white gold set with VS-G white diamonds.

On her return trips she bought basic items like pencils and sunglasses.

One of her Tanzanite carvings, the 275-carat L'Heure Bleu mounted on a silver base serves as a special fundraiser for the Maasai. The cost of the piece includes a trip for four to Tanzania.

Ring featuring a hand-carved amethyst set in platinum with VS-G white diamonds.

“The mine gave me this crystal to carve and the sale of this crystal, which is pretty expensive, will include a trip for four people to Tanzania, go to a wonderful safari, and they’ll also get to meet the Maasai ladies and their families and go down to the mine. Most importantly, it will benefit people who are impoverished.”

Pearl ring with 18k yellow gold, multicolored diamonds and sapphires. 

Sarna works with a variety of gems but some of her favorites include opal and topaz.

Her brooches and rings are designed to fit properly so when they settle into place, it has the proper appearance.

“You know how rings flop over to the side,” she said. “Mine are designed to go over to the side right away. The way I designed the shank it has to go over this way. It becomes a part of your hand.”

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