Last Chance To View ‘Cycles of Life’ Rings Exhibition

De Clercq Roman diamond ring

“Cycles of Life: Rings from the Benjamin Zucker Family Collection,” will come to end on December 6. So time is running out to view a private collection of more than 40 rings that run from the 3rd to the 19th centuries. In addition, to it being on public view at till December 6 at the Les Enluminures New York gallery, 23 East 73rd St.

Ruby and enamel gold ring

This is the first time that the entire collection is on display together and it will be the last as the entire collection is for sale. 

Ring with diamond-set Shoulders and bezel

Zucker is a well-known gem merchant and author who’s written scholarly publications and practical guides about gems and jewels, as well as novels. An illustrated catalog published by Paul Holberton, London, will accompany the exhibition, which will include contributions by Zucker, Sandra Hindman, founder of Les Enluminures, and Jack Ogden, chief executive of the Gemmological Association of Great Britain.

Gold ring with hand holding a heart

Many of the rings in the exhibition were previously on loan at the Walters Art Museum in Baltimore, which is known for its extensive jewelry collection, and a few pieces were at other museums. 

Mourning ring of Lieutenant Colonel Thomas

“Zucker is a great private collector and owns countless jewels,” said Cecilia Bonn, Les Enluminures Marketing and Communications director. “He really wanted the work cataloged. Sondra is good at applying scholarship to collections and specializes in Medieval and Renaissance manuscript illuminations, and Roman and byzantine jewelry. There’s a real compatibility here.”

Gold Jewish Marriage ring

Among the standouts is a Roman diamond ring that dates back to the third or fourth century. Once part of the de Clercq collection of Roman and Byzantine jewelry, the ring is centered by a natural uncut diamond with a double pyramid set in a high openwork bezel. It was acquired by Zucker in the 1970s, and loaned as the showpiece of the international traveling exhibition, “Diamonds and the Power of Love,” organized by the De Beers. The diamond giant declared that “the story of the diamond ring begins here”. It was most recently on display at the Museum of Fine Arts, Boston. It is second largest known surviving rough Roman diamond ring. 

Gold Signet ring with a merchant's mark and initials

“The roman uncut diamond ring one of 12 in existence that we know of,” Bonn said. “Seven of the rings are in the British museum and six are in private collections.”

Jewish marriage ring

Other standouts are an Italian made 14th Century Medieval sapphire and gold ring set with a 10th- century sapphire inscribed in Arabic; and a German-made 1631 diamond, ruby, and enamel gimmel ring, from the Rothschild Collection. 

Rothschild diamond ring

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes website.

5% Increase in Q3 Gold Jewelry Demand

Gold jewelry demand for the third quarter of 2013 increased 5 percent year-over-year to 486.7 tons, the World Gold Council said Thursday, marking the best third quarter performance for the precious metal since 2010. 

In terms of value, gold being used for jewelry for the period fell by 15 percent year-over-year, due to a drop in the trading price of the precious metal, according to the WGC’s Gold Demand Trends report for the third quarter of 2013. Demand for the period was worth $20.8 billion, the lowest quarterly value since the third quarter of 2010.

Global growth for the period was led by high-karat gold jewelry purchases in Asia, the Middle East and the US, 

“An almost universal phenomenon in the third quarter was the increasing popularity of higher carat jewelry,” the WGC said in its report. “Across Asia, the Middle East and in the US, higher carat jewelry was noted as an area of particular growth as the increased investment properties associated with gold of higher purity came to the fore. The fact that jewelry retailers in a number of markets were increasingly stocking investment products (small bars and coins) provided further evidence of the greater blurring of the jewelry/investment distinction.”

Consumers in China generated 163.7 tons of jewelry demand in the third quarter, making it by far the largest single jewelry market. The country’s year-to-date, demand of 518 tons already equals the same amount for the full-year 2012.

“To some extent, exhaustion set in towards the end of Q3 after such a frenetic second quarter, but continued expansion of the retail network confirms that the trade sees prospects for growth,” the WGC said.

Increases were reported in 24k jewelry (known as “chuk kam”), which has a purity rating of 95.95 percent and in “four nines” gold (gold jewelry of 99.99% purity, compared with the typical 24-carat purity of 99.95%). The WGC explained that the former is unique to China and is most popular with consumers in lower tier markets and rural areas as an investment hedge.

Mainland Chinese consumers also attributed to a 28 percent increase in gold jewelry consumption in Hong Kong to 7.5 tons.

In the US, the WGC noted that “demand was a key development.” Gold jewelry demand for the third quarter rose 14 percent year-over-year to 43.4 million tons.

With the exception of fourth quarter demand (driven by holiday sales), the third quarter was the first quarter in four years in which gross jewelry demand exceeded recycling—creating net positive jewelry demand,” the WGC said. “Since Q3 2009, gross new quarterly jewelry demand had been exceeded by the recycling of old gold jewelry as distress selling took off during the economic downturn,” WGC said. “Increasingly positive sentiment among US consumers during the third quarter reversed this trend.”

The report also notes a shift towards 18k jewelry from 14k.

“Given recent developments in the US, consumer sentiment has taken a hit early in the fourth quarter, but the seasonal impact, together with prices holding below US$1,400/oz, suggests a certain amount of resilience,” the WGC said.

India, one of the world’s largest markets for gold jewelry, saw demand drop by 23 percent year-over-year to 104.7 tons due to import restrictions imposed by the government. “Demand for gold jewelry among Indian consumers remains strong, but reduced supply has prevented this demand from being fully realized,” the WGC said.

"The smaller Asian markets had robust growth for the period, with the exception of South Korea where weak consumer sentiment and a sluggish domestic economy dampened demand," the WGC said. "Across the rest of the region, there was a trend for higher karat jewelry pieces of relatively simple design as consumers across the region took advantage of gold’s increased affordability."

Gold jewelry demand in the Middle East increased 9 percent to 51.2 million tons, due to lower prices across the region, the WGC said. The “unsurprising” exception was Egypt.

“The emphasis on 22-karat gold at the expense of 21- and 18-carat diamond-set jewelry suggests demand was stronger among domestic consumers relative to western tourists.”

The third quarter in Turkey, which is traditionally strong, saw year-over-year demand increase 14 percent. In value terms, demand was virtually flat, due to a 12 percent decline in the local currency price of the precious metal.

Russia’s growing middle class, armed with greater disposable income, helped generate a 7 percent year-over-year growth in jewelry demand.

“European markets were again the exceptions to the more positive global picture, with both UK (-14%) and Italy (-7%) posting year-over-year declines due to “economic concerns,” WGC said.

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Website.

Q3 Global Gold Jewelry Demand Down 4%, US Demand Up 4%; India Demand Surges 60%

Global gold jewelry demand fell 4 percent year-over-year to 534.2 tons for the third quarter of 2014, according to the World Gold Council in its Gold Demand trend report released Thursday. However, the decline comes against an unusually robust third quarter of 2013, which experienced the strongest growth for jewelry demand since 2008. 

“Longer term analysis shows a market in good health. Q3 demand was marginally stronger than the five-year quarterly average of 527.6 tons, while year-to-date volumes continue to extend the broad uptrend from the low seen in 2009,” the WGC said in its report.

Two markets did shine, the US, with a 4 percent rise that helped lift manufacturing outputs in several gold jewelry producing countries; and India, which surged 60 percent. China and Hong Kong, meanwhile, experienced steep declines in gold jewelry demand. 

US ‘Revival’
The WGC’s report said the economic recovery and a downward trend in the price of gold created a “revival” of gold jewelry demand in the US that has had a “ripple effect” around the world.

“The US sucked in greater volumes of gold jewelry imports from markets as diverse as India, China, Italy, Mexico and Oman, according to the report. “Third quarter growth in the US market was very much an extension of the trend that has prevailed since early last year. Mounting conviction in the economic recovery has boosted sentiment and whetted consumers’ appetite for discretionary purchases. Gold jewelry has been a clear beneficiary: improving sales of higher carat and non-wedding related items helped demand to the highest Q3 total since 2009.”

The report added, “Lower gold prices have aided the recovery of US demand as retailers are more easily able to meet key price points without crimping margins. Or, similarly, to increase karatage while maintaining price levels. This has enticed some mass- market retailers back into the gold jewelry sector.”

India
The market that had the strongest third quarter by far was India, which reported a 60 percent year-over-year increase to nearly 183 tons—the second highest third quarter on record, the WGC said. 

“The third quarter of 2013 was decidedly weak as the introduction of complicated new measures to restrict gold imports and the subsequent sharp rise in local prices knocked demand,” the WGC said in its report. “But this quarter, other more positive forces were also at play.”

Among those forces is the confidence in the new Indian government led by Prime Minister Narendra Modi, a drop in the price of gold and robust buying during the Diwali festival season. 

“Although Indian consumers are typically wary of buying gold while the price is still moving, preferring to wait until it settles at a more stable level, the opportunity to buy at cheaper prices proved, for some, hard to resist.”

China
Meanwhile, China experienced a 39 percent year-over-year decline to 147.1 tons in gold jewelry demand. Hong Kong (where consumers from the mainland China account for most of the demand) fell 31 percent to 9 tons. The WGC said much of this decline is in comparison to the rapid expansion throughout 2013 and that gold jewelry sales are normalizing.

“18-karat (K-gold) jewelry was relatively more robust than the 24-karat (chuk kam) segment,” the WGC said. “The government’s anti-corruption drive may have contributed to this trend.”

Other Markets:
* Indonesia saw third quarter demand fall 16 percent to 9.7 tons partially in response to strength of demand last year. However, the WGC said “equally important was the Presidential election in July, which created a degree of political instability and discouraged spending on gold jewelry.” 

* Third quarter jewelry demand in Turkey fell 18 percent, year-over-year, to 19.2 tons—the lowest third quarter on record, the WGC said. “Consumers were unnerved by domestic political turmoil; worrying economic signals; and escalating Syrian violence in close proximity to the Turkish border. The ban on paying for gold jewelry by credit card installments continued to hang over the market, although this restriction was partially repealed in October.”

* Demand in the Middle East fell 14 percent year-over-year to 36 tons. Demand for gold jewelry across the region suffered from the comparison with strong demand last year, the WGC said, leading to a trend towards lower-karat and gem-set jewelry.

* Jewelry demand in the UK increased 18 percent to 4.6 tons, the fifth consecutive year-over-year rise.

* Gold jewelry demand in Russia edged up 1 percent year-over-year to 18.6 tons, despite a rise in the average domestic gold price due to a weaker rouble, the WGC said. 

* Demand in Italy fell 4 percent year-over-year to 2.7 tons. 

The Gold Demand Trends report also tracks gold for investment and technology purposes. In the third quarter overall demand was “subdued,’ the WGC said, falling by 2 percent to 929.3 tons. The price was relatively stable for the period. 

“Quarterly volatility in the US$ gold price was among the lowest levels seen over the past two decades,” WGC said. “This was both a cause and effect of the benign demand environment. Investor behavior in particular contributed to this circularity: the lack of a clear price signal caused investors to hold back from buying gold, which in turn dampened down price moves.”

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes website.

ATM Dispenses Diamond Jewelry, Gold and Silver

Bollywood star Raima Sen unveils Luxury ATM in Mumbai.

Why accept money from an ATM when you can get diamond jewelry, gold or silver?

A company in India has built what it says is the world’s first machine that dispenses gold, silver, diamond jewelry and religious jewelry.

The Gitanjali Group, the machine’s creator, is calling it an ATM, but I think a vending machine would also be an apt description. These types of machines have been vending gold at certain places around the world for the past few years. But this is the first such machine that also dispenses other precious metals and jewelry.

The first ATM was recently placed at a Mumbai shopping center and introduced with a ceremony featuring a Bollywood star Raima Sen (pictured).

The machine dispenses gold and silver bars, coins, pendants with religious motifs and a range of diamond-studded jewelry. The convenience of this machine will especially come in handy for those last-minute gifts, the company said.

“It has a particular significance in India, where usually such items are purchased as tokens to observe traditions on auspicious days,” Sanjeev Agarwal, CEO, Gitanjali Export Corp. Ltd., said in a statement. “But it also offers choices for occasions like Valentine’s Day, or to a husband who forgot an anniversary or his wife’s birthday”

The ATM uses a touch screen interface and provides consumers a mix of up to 36 options in different sizes, price points and designs across the precious metals and jewelry categories. This may include coins in various grams, pendants with religious motifs, and heart shaped pendants and diamond studded pendants. Prices range from about $20 to $610. Credit and debit cards are accepted.

The ATM is a part of a larger “Go for Gold” umbrella brand initiative created by Gitanjali to promote the purchase of gold—whether in the form of jewelry or coins/bars—and focus attention on the company’s gold products.

It is appropriate that it is the Gitanjali Group that is introducing this ATM concept. The Mumbai-based company is the world’s largest integrated branded diamond jewelry manufacturer. It is one of India’s largest manufacturer of diamonds and diamond and gold jewelry. It has close to 40 brands in several categories, including lifestyle, watches and 19 jewelry brands. Most of its brands use a Bollywood star for its advertising and marketing. Many of its brands are retailed through company-owned branded stores. The company recently acquired several Italian jewelry and watch manufacturers that it has incorporated into its branded marketing concept. It also owns retail chains in the U.S.

The ATM seems to be just one more creative way for the company to sell its many products.

Global Gold Jewelry Demand Down 5%

The cost and demand of gold as an investment vehicle has resulted in a slight drop in its use for jewelry manufacturing in the second quarter, according to the World Gold Council. However, the organization said the decline is subsiding in its key Asian markets.

“Over the past quarter, demand for gold jewelry in key Asian markets has been challenged by rising local prices,” said Marcus Grubb, WBC managing director, Investment. “Nevertheless, we are seeing a deceleration in the pace of decline in demand, providing a strong outlook for ongoing recovery in this crucial market segment.”

In the face of surging price levels, global jewelry consumption totaled 408.7 tons during the second quarter of 2010, 5 percent below year-earlier levels, the WGC said in its Gold Demand Trends report for the second quarter of 2010.

Gold jewelry demand in India, the largest jewelry market, was down just 2 percent at 123 tons. In local currency terms, this translates to a 20% increase in the value of demand, WGC said. Meanwhile, China saw demand for gold jewelry increase by 5 percent to 75.4 tons. While growth in demand in tonnage terms was hindered by extreme weather conditions, the growth in the local currency value measure of demand was 35 percent.

The WGC did not include figures for the U.S. jewelry demand in its release of the report for the media.

Total gold demand for the second quarter rose by 36 percent to 1,050 tons, largely reflecting strong gold investment demand compared to the second quarter of 2009, the WGC reports. In US value terms, demand increased 77 percent to $40.4 billion.

Investment demand was the strongest performing segment during the second quarter, posting a rise of 118 percent to 534.4 tons, compared with 245.4 tons in the second quarter of 2009. The largest contribution to this rise came from the ETF segment of investment demand, which grew by 414 percent to 291.3 tons, the second highest quarter on record. Physical gold bar demand, which largely covers the non-western markets, rose 29 percent for the period to 96.3 tons.

“While many investors turned to gold as a ‘flight to quality’ in response to the uncertain financial environment, this interest has proved resilient even though a sense of optimism has started to return to some sectors of the investment community,” Grubb said. “In addition to the ETF market and physical bar and coin market, the demand for gold through internet based investment platforms is likely to provide further sources of investment demand.”

The WGC said demand for gold will remain robust during 2010 as a result of accelerating demand from India and China, as well as increasing global investment demand driven by continuing uncertainty over public debt and economic recovery.

“Economic uncertainties and the ongoing search for less volatile and more diversified assets such as gold will underpin investment demand for gold in the immediate future,” Grubb said. “Further, in light of lingering concerns over public debt levels and the euro, European retail investor demand has increased significantly.”

Fabulous Fall 2014 Jewelry Preview

Wendy Yue 18k rose gold "Madame Butterfly" necklace with purple sapphire, rhodolite garnet, pink sapphire, opal and tsavorite.

This is a group of 28 designers and manufacturers whose work I was able to view during the jewelry rtade shows in Basel, Switzerland, and Las Vegas. Although this is quite a large group, it wasn’t all the brands I was able to see. More will come soon.

Vianna Brasil 18k yellow gold bracelet set with milky aquamarine, praziolite, emerald quartz and diamonds.

In this selection pastel colored gemstones dominated. The next group will feature more bold colors and designs, although there are a few made it into this group as well. Yellow and rose gold also made it into plenty of designer pieces this year. Pavé settings remain dominate in many designs and there appears to be no end to this “trend.”

Omi Prive platinum, sapphire and diamond pendant necklace.

There are a few new names in this group. Among them is Pınar Öner of Turkey who creates pieces based on the history and heritage of his country’s Anatolian region.

Roberto Coin Garden Collection rings in 18k satin yellow gold with colourless, brown diamonds and tsavorite. Amethyst, blue topaz and lemon quartz.

Many of the other names you will find familiar. They represent most parts of the world and use a variety of style, techniques and materials. Please view the remaining images below.

Temple St Clair 18k yellow gold Tree of Life bracelet with diamonds.

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes website.

Lagos 18k sterling silver statement ring centered with a citrine surrounded by a ring a ring of 18k yellow gold and blue sapphires. 

Goshwara Natural pink sapphire and mandarin garnet earrings in 18k from the G-One Collection.

Nurture By Reena, a new jewelry brand that features jewelry made with lab-grown diamonds by Reena Ahluwalia, known for her award-winning diamond jewelry designs. The Celestial Star pendant is set in 18k gold with colorless and pink lab-grown diamonds. The brand also employs QR Code technology that allows people to attach their “most precious moments to your jewel,” Ahluwalia says.

Pınar Öner Chora ring draws its inspiration from the mosaic ceiling of the Chora church in Istanbul. The entire ring is a large floral blossom with undulating walls of pave diamonds set in blackened 18k yellow gold with enamel accents in blue, green, yellow and red.

Amrapali Black Arabesque ruby, diamond and emerald earrings.

Antonini Vulcano bracelets in 18k yellow gold, white gold, black rhodium, white diamonds and champagne diamonds.

Borgioni 14k rose gold and silver stud handcuff with brown diamond roses and black diamond leaf.

Brumani diamond and translucent quartz earrings.

Carla Amorim Basilica ruby and tsavorite earrings.

Chimento Armillas rings in white gold with diamonds, yellow gold with diamonds, and white gold with diamonds.

Le Vian Exotics Chocolate covered Blackberry ring in 14K Strawberry Gold featuring Blackberry Diamonds, Vanilla Diamonds and Chocolate Diamonds.

MCL pave Lux bangle in black rhodium plated sterling silver with mixed color sapphires and black spinel.

Sethi Couture Ombre orange, yellow and green diamond pave drop earrings.

Sutra 18K black gold, sapphire and tanzanite cuff with diamonds.

Suzanne Kalan 18K white gold pear-shaped London Blue Topaz ring with white diamond baguette.

Larkspur & Hawk 14k rose gold earrings with pink amethyst.

Lexmond vs Lexmond 18k gold Strawberry pendant with diamonds and rubies.

Royal Asscher Stars of Africa ring in 18K rose gold with floating diamonds in a sapphire globe.

Rina Limor Carved jade earrings with 18k yellow gold set with diamond pave. 

Casato Dragon Eye bracelet in 18k rose gold with emerald and white diamonds.

Stefan Hafner White gold and white diamond necklace seems to be woven from flowers touched with tiny buds of blue marquise-cut sapphires.

Ivanka Trump 18k yellow gold and white diamond pave bracelet, part of the Athénée collection.

Mireya is a new bridal jewelry brand that offers brides-to-be with options of what to choose with its “pick-a-head” Mireya Fit System. Interchangeable diamonds can be inserted into the shank of the ring. The collection, consisting of 20 variations of this signature style and 185 styles in total are all handmade of 14k, 18k or platinum, in the US.

U.S. Gold Jewelry Demand Down 8%; Global Jewelry Demand Up 6%; India Accounts for 32% of Demand

Gold jewelry demand in the U.S. fell 8 percent, year-over-year, to 21.7 metric tons for the second quarter of 2011, the World Gold Council said Thursday. However, in value terms, demand strengthened by 15 percent to $1.1 billion, which mostly reflects a 26 percent increase in the price of gold during the period.

“The combination of high unemployment, frail economic growth and stubborn inflation pressures produced an environment that was not favorable for gold jewelry demand,” the WGC said in its Gold Demand Trends report for the second quarter of 2011. “The quarter was characterized by continued thrifting among retailers among retailers in order to meet affordable price points and 10k items were encroaching 14k market share.”

The report went on to note that gold jewelry was facing “stiff competition” from silver, and specifically cited jewelry maker, Pandora, which specializes in silver charms. However, this company has lost some of its luster in recent weeks.

Overall global gold jewelry demand rose by 6 percent, year-over-year, to 442.5 tons, equivalent to $21.4 billion in value—led by India, which accounted for 32 percent of global jewelry demand, WGC said.

Gold jewelry demand in India rose 17 percent in the second quarter, compared with a relatively weak year-earlier period. In value, the rise was 42 percent for the period. The WGC noted that the Akshaya Tritya festival in May (traditionally a key gold jewelry buying occasion on the Hindu calendar) “stimulated a surge of buying.”

In China, jewelry demand in the second quarter, normally a quiet period, rose 16 percent, year-over-year, to 102.9 tons, WGC said. The local currency value of demand increased 40 percent, year-over-year, for the period. Demand for 24k and 18k gold in China represents gold's attraction as both an investment and as a reflection of the demand for better-quality jewelry.

“Increasing prosperity among Chinese consumers, supported by very strong growth in the domestic economy, is still a driving force behind gold jewelry demand,” the WGC said.

Among the European markets, Russia was the only country to experience limited growth for the second quarter, WGC said. Demand was “marginally higher” at 16.9 tons, which translated to growth in value of 27 percent. However, the WGC said that year-to-date imports have grown considerably in Russia as its economy improves.

The second quarter was weak for both Italy and the United Kingdom, with demand falling by 15 percent and 16 percent, respectively. In value, demand fell by 6 percent in Italy and 4 percent in the U.K. The report cites rising gold prices and continued economic weakness as the culprits.

Demand in Turkey was “unexpectedly” robust during the second quarter, up 7 percent to 17.4 tons, equivalent to 38 percent growth in value. Consumers purchased 22k gold jewelry during period of the quarter when gold prices dropped several times in May and June.

Among other Asian markets, gold jewelry demand fell 9 percent to 1.9 tons in Taiwan due to the rising price of the precious metal. However, gold demand for wedding sets grew 10 percent for the period.

In Japan, gold jewelry demand dropped 14 percent to 4.2 tons as consumers are still suffering from the March earthquake and tsunami, WGC said. In value terms, the decline was a more modest 4 percent. The WGC noted some “encouraging” signs in the Japanese market with increased demand for “very-high-end” jewelry and in gold chains, purchased more for investment purposes than adornment.

In the remaining markets in the Southeast region, gold jewelry fell due to its high price. Thailand, Indonesia and Korea reported year-over-year declines of 5 percent, 3 percent and 2 percent, respectively. In value terms, demand grew between 19 percent and 23 percent.

An exception for the region was Vietnam, where demand grew by 6 percent, year-over-year, to 3.3 tons, WGC said. This increase was concentrated in “chi” rings (plain 24k rings).

Middle East markets experienced weak second quarters. In Saudi Arabia, jewelry demand fell 16 percent to 21 tons, the largest drop in the region. Demand fell in Egypt by 8 percent to 8.3 tons. Demand from the other Gulf countries fell 4 percent to 4.9 tons. The most resilient market was the United Arab Emirates, I which demand fell by 1 percent to 16.1 tons.

Global gold demand for the second quarter of 2011 fell 17 percent year-over-year to 919.8 metric tons, according to the WGC Trends report. However, the value of the precious metal grew 5 percent to $44.5 billion—the second highest quarterly value on record due to the 26 percent increase in the price of gold during the period. Read more about the overall gold trends on my Forbes.com blog.

Global Gold Jewelry demand Fell 30% While Sales in the US and UK Improve

Yellow and white gold bracelets by Italian jewelry brand, Antonini. There was increase in Italian gold jewelry exports for the second quarter of 2014. 

Plummeting gold jewelry sales in India and China led to a 30 percent year-over-year drop in gold jewelry demand for the second quarter of 2014, the World Gold Council said Thursday. The loss was slightly offset by increases in consumer demand in the US and UK. 

Gold jewelry demand fell to 509.6 tons in the second quarter of 2014 compared with 726.7 tons in the same period of 2012, the WGC said in its quarterly report, “Gold Demand Trends.” Officials for the gold industry market development organization said the decline was expected due to the strength of 2013 demand and a natural annual weak period for such demand. In addition, the organization (which also tracks gold demand in investment, among central banks and for technology uses) notes that jewelry demand historically has accounted for more than half of global gold demand and the second quarter of 2014 was no different at 53 percent. 

“In what is traditionally a quiet quarter for gold jewelry demand, Q2 2014, was unsurprisingly lower,” said Marcus Grubb, WGC managing director of Investment Strategy, said in a video addressing the report. “However, jewelry has been extending its broad upward trend from the base established in the depths of the financial crisis in early 2009.”

Nearly all Asian and Middle-Eastern countries experienced double digit declines in demand, while western markets either remained flat or fared better, according to the report. The exception is Italy, where consumer demand was down 8 percent. However, the country, known as a gold jewelry manufacturing hub, saw gold jewelry exports improve due to increased demand in the US and other key markets.

This decline in gold jewelry demand helped to influence a 16 percent drop in overall gold demand (investment, central banks and technology) to 963.8 tons, which the WGC described as “not surprising … given the stark contrast in conditions in the global gold market between the two time periods.” 

Grubb added, “Global gold market continues to recalibrate in 2014 following an exceptional 2013 for gold buying.” 

By country, China was the market most affected by the comparison with the second quarter of 2013, WGC said. Gold jewelry demand fell 45 percent to 143.4 tons. Hong Kong also experienced a similar decline (52 percent to 9.1 tons) due to a drop in mainland China consumers.

“The second quarter began as the first had ended, with consumers adopting a more cautious, considered and ‘occasion driven’ approach to gold jewelry buying,” according to the report. 

Grubb added, “Price sensitive consumers … held back from purchasing more due to uncertainty around the future direction of the gold price and the fact that purchases have been made in 2013 instead.” 

In India, jewelry demand fell by 18 percent to 154.5 tons. The WGC said holiday and wedding purchases remained steady but the drop was primarily because of the recent general election that culminated in the victory of Narendra Damodardas Modi who took office as India’s 15th prime minister in May. High value purchases were restricted by the previous government in the run up to the election, the WGC explained. Now consumers are waiting to see whether Modi will remove those restrictions.

“Consumers held back from buying on the expectation that restrictions on gold would be relaxed by the new government,” Grubb said. “No substantial changes have been made by the Indian government to date.”

In the Middle East gold demand saw a 25 percent decline to 47 tons. The WGC says the escalation of violence in Iraq had a “deleterious impact” on demand across the region. In addition, demand slowed ahead of Ramadan. “Nevertheless, the region as a whole remains relatively healthy, particularly as non-resident Indians provide a steady source of demand for the 22k segment.” 

While the east and Middle East markets are in decline, western markets are continuing to rebound from the 2008-09 recession, with the most notable increases in the US and UK. 

Gold jewelry demand in the US for the second quarter increased 15 percent to 26.1 tons as the country is taking in more imports from India, China and Italy. It was the country’s fifth consecutive quarter of year-over-year growth. In the UK, demand increased 21 percent to 3.6 tons. 

Gold jewelry demand in other key markets is as follows:

* In Turkey, demand fell 20 percent year-over-year due to a clampdown on credit card purchases and ongoing political turmoil, WGC said. The lower end market took the brunt of the decline while larger, more established brands were “relatively resilient.” 

* Thailand experienced a 60 percent decline in demand due to recent political instability and high comparisons to the second quarter of 2013, the WGC said.

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes website.

Gold Jewelry Is Back as Global Demand Surges to 5-Year High

18k Picasso Gold brooch, Tiffany & Co.

Demand for gold jewelry in the second quarter surged to its highest level in five years due to a sharp drop in the price of the precious metal, the World Gold Council said Thursday.

Gold jewelry demand by volume increased 37 percent to 575.5 tons, according to the WGC’s Gold Demand Trend report for the second quarter of 2013. The demand for gold was so great that it far outweighed a decline in the average gold price as the demand in terms of value rose 20 percent to nearly $26.2 billion, the fourth highest on record.

The price of gold for the second quarter fell by more than $400 an ounce or 12 percent, according to the WGC, the marketing development organization for the gold industry.

“Although jewelry demand is influenced by a wide set of factors, including economic growth, consumer sentiment and disposable income, to name a few, all were eclipsed by the effect of the drop in the gold price,” the WGC said in its report.

The upward trend was “almost universal,” the WGC said, with the most notable year-over-year improvements in India, China, the Middle East and smaller Asian countries. Demand included an increase of higher-carat jewelry. Europe was the only region where jewelry demand failed to rise.

The US reported its second consecutive quarter of growth. Demand remained the healthiest at the higher end of the market, however, the WGC noted that the middle market is beginning to shift from lower- to higher-carat gold. The WGC also said the lower prices provided an opportunity for wholesalers to stock early for the Christmas holiday season.

India and China, again, generated the largest volume increase—almost 120 tons of the 155-ton increase in demand was from these two countries, according to the report. Hong Kong generated the strongest percentage growth in demand (approximately 65%), surging to a record 12.1 tons. In fact, double-digit growth was commonplace throughout the Asian markets, with the exception of Japan, which was unchanged. In Indonesia, demand of 7.8 tons was the strongest second quarter since Q2 2009.

In Turkey, a gold jewelry manufacturing center, demand hit a record high in terms of local currency value, led by consumer bargain hunting (concentrated in 22k market for investment) and trade inventory building. Growth across the Middle Eastern region was almost purely price-related, the WGC said.

The improvement in the US market was not replicated in the western European market, “where negative economic conditions overwhelmed the positive impact of lower prices,” the WGC said. In Italy, another major jewelry manufacturing center, demand fell by nearly 10 percent and in the UK demand dropped by more than 20 percent.

Jewelry demand in Russia “continued to normalize towards pre-crisis levels,” the report states, with demand concentrated on the high and low ends of the market.

The Gold Demand Trends report also tracks demand in gold for investment and technology purposes. In the second quarter, overall gold demand fell by 12 percent to 856.3 tons due to the drastic drop in the price of the precious metal. This translated to a 23 percent drop in value to $39 billion—its lowest level in more than five years.

“Record quarterly investment in gold bars and coins was countered by sizeable outflows from ETFs as western investors reacted to a seemingly more positive outlook for the US economy and an eventual tapering of quantitative easing,” the WGC said.

Please join me on the Jewelry News Network Facebook Page, on Twitter @JewelryNewsNet and on the Forbes Web site.

Gold and Diamond Stilettos Available for $160,000

Shoes that dazzle, sparkle and come with a price tag that would make most people lose their footing are now available for the very few who can afford to buy them and dare to wear them.

At 100,000 pounds sterling ($160,000), the hand-made Eternal Diamond Stilettos are considered to be the most expensive shoes in the world, according to media reports. Each pair takes 100 hours to be crafted by a team of goldsmiths from solid sheets of gold, before 2,200 diamonds are hand soldered onto the shoe. Five pairs of the sparkling stilettos have reportedly been sold.

Designer Christopher Michael Shellis created the bespoke luxury shoes in his Birmingham, England, workshop. He sells them through The House of Borgezie. Shellis said three high-profile celebrities are interested but would not name names, according to media reports. Among those rumored to have the stilettos on their shopping list are Victoria Beckham, Paris Hilton and British singer Cheryl Cole.

Shellis backs the craftsmanship with a 1,000-year guarantee. However, he hasn’t said how the owners or their heirs will collect.

Image from The House of Borgezie Web site.

Mark Schneider’s New Bridal Designs

 Charmed

Award-winning jewelry designer Mark Schneider introduced several new bridal designs during the Couture jewelry show in Las Vegas. The collection of the diamond engagement rings is available in 14k and 18k white gold and in platinum.

 Delicate

Schneider’s bridal designs have won numerous awards over the years. The company's headquarters is in Long Beach, Calif. 

 Honey

Below are some more images of the new collection:

 Innocence                             Kindle

Orchid