Canadian Jeweller Magazine February March 2009

An IllustriousLegacy

Mix n’ MatchDiversifying your merchandiseto meet customer needs

Just Watch MeWatch trends and price

points that will shape 2009

The Ideal MarriageMake the most of diamond

sales by focusing on thebridal sector

Business from the HeartDonations can make you and

your bottom line feel good

A Question of ColourAppraising fancycolour diamonds

Judy Richards of Davidson’s Jewellers, Ottawa

ALL THE LATEST MARKET NEWS, TRENDS & EVENTSPLUS:P

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F E B R U A R Y / M A R C H 2 0 0 9

canadian jewel lermagaz ine

OVER125 YEARSIN THE BUSINESS OFRETAILING JEWELLERY

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A Tradition in Excellence...

Canada’s leading ring andjewellery manufacturer

Siffari Jewellery Co. Limited., 55 Gervais Drive, Toronto, Ontario, M3C 1Z2Tel: 416-441-1010 Fax: 416-441-6188 1-800-387-0111

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mailto:[email protected]

EXCELLENCE iNdesignAward Ceremony & Reception

September 13th - 15th, 2009

The Annual

130th Anniversary Celebration

To find out how you can become a sponsor of this prestigious event, please contactOlivier Felicio at [email protected] or call 416-203-7900 X 6107.

For complete details on how to enter your designs, contactMelissa Badr at [email protected] or 416-203-7900 X6118.

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8 CJ F E B R U A R Y / M A R C H 2 0 0 9

CONTRIBUTORS Philip Feder, Robin Gambhir, Barbara KingstoneDuncan Parker, Marie Powell, Jérôme Scullino,Bonnie Siegler, Claire Sykes, Mirelle Theriault,Anita Webster

SALESLucy Holden INTERNATIONAL SALES MANAGER/

MARKETPLACETEL. (416) 203-7900 ext. 6117EMAIL [email protected]

Jeff Yamaguchi ADVERTISING SALESTEL. (416) 203-7900 ext. 6122EMAIL [email protected]

Melissa Badr CIRCULATION MANAGERTEL. (416) 203-7900 ext. 6118 FAX (416) 703-6392EMAIL [email protected]

Michele Aubie RECEPTIONTEL. (416) 203-7900 ext. 6119 FAX (416) 703-6392EMAIL [email protected]

Head Office 60 Bloor Street West, Suite 1106Toronto, Ontario, M4W 3B8TEL. (416) 203-7900 FAX (416) 703-6392

Montreal Office 555 Chabanel Street West, Suite 1507Montreal, Quebec, H2N 2J2TEL. (514) 381-5196 FAX (514) 381-6223TOLL FREE 1-888-358-8186 ext. 6117

Canada Post Canadian Publications Mail Sales Product Agreement No. 141550 The publisher does not assume any responsibility for the contents ofany advertisement and any and all representations or warranties made in such advertising are those of the advertiser and not of the publisher. The pub-lisher is not liable to any advertiser for any misprints in advertising not the fault of the publisher and in such an event the limit of the publisher’s liabil-ity shall not exceed the amount of the publisher’s charge for such advertising. No portion of this publication may be reproduced, in all or part, withoutthe express written permission of the publisher. Canadian Jeweller magazine is pleased to review unsolicited submissions for editorial considerationunder the following conditions: all material submitted for editorial consideration (photographs, illustrations, written text in electronic or hard copyformat) may be used by Canadian Jeweller. and their affiliates for editorial purposes in any media (whether printed, electronic, internet, disc, etc.)without the consent of, or the payment of compensation to, the party providing such material. Please direct submissions to the Editor, CanadianJeweller magazine.

ESTABLISHED 1879 FEBRUARY/MARCH 2009 • VOL. 130, NO. 1

Subscription RatesCanada — one year, $35; two years, $45; three years $55. United States — one year, US$44. Foreign — one year US$56 (Subscriptions include Buyers’

Guide issues.) 8% P.S.T. for Newfoundland, New Brunswick and Nova Scotia residents. Single copies — $5; Buyers’ Guide $40. Bulk rates — six or more

subscriptions, $17.50 per subscription per year (Canada only).

Change of Addressemail: [email protected] telephone: (416) 203-7900 ext 6109 fax: (416) 703-6392

or send your cover label and new address to Canadian Jeweller magazine, 60 Bloor Street West,

Suite 1106, Toronto, ON Canada M4W 3B8

Published by Rive Gauche Media II Inc.

Olivier Felicio President, Publisher | [email protected]

Bryan Soroka Director, Editorial & Communications | [email protected] Saso Associate Editor | [email protected] Yeh Associate Editor | [email protected]

Paul Aguirre Editorial Assistant | [email protected]

Scott Jordan Designer | [email protected] Ross Designer | [email protected]

Christine Ager-Smyth Production Manager | [email protected]

Melanie Seth Accounting and Administration | [email protected]

1435 St. Alexander #455 Montreal, Quebec H3A-2G4

Tel. 1 800 267 7823 ~ 514 845 8257E-mail: [email protected]

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See page 15 for our full page advertisement.

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Contentstable of


February/March 2009

Features36 Global Impact

The mining industry’s year ahead.

38 Just Watch MeThe watch styles and price points to stock up on for 2009.

46 Combining the New with the OldTechnology’s role at the bench.

52 The Ideal MarriageWhy focusing on the bridal sector for diamond sales is a good idea.

60 An Illustrious LegacyAn interview with the Owner of Davidson’s Jewellers, Judy Richards.

66 Mix n’ MatchDiversifying your inventory for all the right reasons.

70 Re-examining Your Buying StrategiesWhy less could mean more in the New Year.

72 Business from the HeartProfessional and personal rewards of charitable giving.

78 How Responsible Are We?Tracing the jewellery industry’s development.

82 Cost and EffectWhat to expect from the precious metals market in 2009.

60

38

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February/March 2009

Departments

14 Director’s Note

16 Product Showcase

22 Who’s NewsDiCaprio signs with TAG Heuer; Rio Tinto executive retires;Barrick Gold appoints new CEO.

26 For the RecordDaniel Espinosa gives back; Jewellery retail numbers in; WorldPeace Egg at the ROM; $10K diamond necklace hits the slopes.

32 Stock Index

34 Mining NewsTeck Cominco cuts jobs; IGC and Nkwe merge;Rio Tinto adjusts.

42 Face ValueAppraising fancy colour diamonds.

48 Market WatchThe challenges and rewards of online diamond searches.

56 Company ProfilePandora

74 Designer ProfileAmanda Brighton

84 Star WatchJust how golden were The Globes?


86 Editorial Board

88 What’s On

90 Showcase

92 Marketplace

96 Fax Back

97 Last Word

Contentstable of

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568 999 Canada Place, Vancouver, BC V6C 3E1 - Toll Free: 1 877 689 7273 - email: [email protected]

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Ask about our retail training on how to sell champagne colored diamonds

Champagne Diamonds… Beautiful, Naturally

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©

. . .MAKE THEM UNFORGETTABLE

LIFE HAS ITS MOMENTS.. .

Collect, combine and create your own unique expression. LovePods is a new collection of jewelry made from 18K gold enhanced with genuine gemstones.

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013.CJ Pandora ad.qxd:Layout 1 1/30/09 10:15 AM Page 44

Price vs. Value

Phot

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oral


director’snote

Price is detailed as the sum of money expected or given for the sale of something, or the

cost at which something is obtained. Value, meanwhile, is defined as an amount

regarded as a fair equivalent for a good or service.

The best example I can give you in regards to the true difference between the two was

an experience I had while shopping at an electronics store a few years ago. As I pulled

into the parking lot, I noticed another car, a beautiful sedan with a six-figure price tag,

pull up right beside me. A distinguished-looking gentleman stepped out and we walked

into the store nearly side-by-side. As I made my way through the aisles, I came across

this man again, who was talking with one of the sales people. He seemed a bit agitated

as he was questioning the prices of cordless phones. I couldn’t help myself as I craned

my neck over, and noticed that the model he was grousing about sold for $39.95. This

coming from a man who spent in excess of $100,000 on an automobile!

Lately, I’ve noticed several jewellery retailers adorning their windows with discount

and sale signs, urging people to come in and take advantage of the low, low prices.

However, much like that man in the electronics store, the price is irrelevant if the

shopper does not truly believe he or she is receiving value for their hard-earned dollars.

This falls directly in line with a commonly held notion of what components make up

a successful brand: image, quality, reputation, satisfaction and value. I’m sure you

noticed that price is not included in this mix. That’s why going the discount route

doesn’t fit many retailers. Instead of enticing new business, it can devalue the store’s

image, which in turn can even disrupt sales activity from regular clients.

So, instead of focusing on price, ask yourself this question: Are my customers getting

value at my store? Do I provide the products and services that they believe deliver an

exceptional return on their investment? Hopefully the answer is yes. If not, then it’s time

to take a serious look at your business model and figure out how to deliver on a value

promise that will not only encourage your current clientele, but also motivate them to

recommend your store to others.

To your success,

Bryan Soroka

Director, Editorial & Communications

Bryan Soroka

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Champagne Diamonds by Rare & Precious GemsChampagne diamonds occur in a range of soft and exotichues and are the most universally appealing andaffordable of all natural coloured diamonds. The warmhues and rich earth tones of champagne and cognacdiamonds are complimentary to all skin types when set infinely crafted jewellery. For more information, write 109on the Free Info Card on page 96.

Canadian Diamonds Mined, Cut and Polished in CanadaDiarough Canada has its own cutting and polishing factory inCanada where it manufactures its own Canadian diamonds.The origin is certified by the mark of conformity MCPCanada, delivered by a governmental organization toguarantee transparency and traceability. Each diamond hasits own serial number laser inscribed on the girdle and comeswith a certificate of authenticity and grading report from anindependent laboratory. For more information, write 110 onthe Free Info Card on page 96.

Uni-Design CanadaUni-Design Canada is committed to excellence, quality andto its customers’ needs and success. The Company embodiesthe philosophy and strength from its international group ofcompanies, Uni-Design/Diarough/Mahendra Brothers.Uni-Design Canada concentrates in mid-range to higher-end diamond jewellery, including its assortmentof Canadian diamond bridal, solitaires and fashion.Uni-Design Canada prides itself on its exceptional customerservice by specializing in developing designs, offeringexclusive client-specific programs, test marketing, repairsand special orders. For more information, write 111 on theFree Info Card on page 96.


productshowcase

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Colour is PrimarySince 1988, Byrex Gems Inc. has been synonymous withthe finest quality coloured gemstones. With unparalleledglobal sourcing expertise and exceptional craftsmanship,including the development of the Authentic Optix cuttingtechnique, Byrex has continued to build a reputation forindustry-class quality, turnaround and customization.For more information, write 113 on the Free Info Card onpage 96.

Atlantic RingsFor half a century, Atlantic Engraving Ltd. has been anindustry leader, and as third generation jewellers, hastaken the ultimate symbol of commitment beyond thewedding band and classic eternity ring. Featuringcoloured metals and unique finishes, an Atlantic ring is anexpression of individuality. Each ring produced atAtlantic is made of seamless tubing and is cut withdiamond tipped tools on the highest state-of-the-artEuropean machinery. No ring leaves the factory withoutextensive quality control. For more information, write114 on the Free Info Card on page 96.

Mirage Wedding BandsMirage Creations introduces its newest line of finewedding bands — Classical, Modern or Vintage designsmanufactured in Canada. All styles are available aseternity or semi-eternity. Eternity styles start at 0.25 ctw.to meet all retail price points. Over 250 designs to choosefrom as well as customized rings, which are CAD/CAMproduced in one week. For more information, write 115on the Free Info Card on page 96.


productshowcase

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who’snews


New OMEGA AmbassadorOMEGA is pleased to announce that actressZhang Ziyi is joining its select group ofbrand ambassadors, which includes fellowactors George Clooney and Nicole Kidman.Zhang Ziyi has appeared in over 16 moviesincluding Crouching Tiger, Hidden Dragon,House of Flying Daggers andMemoirs ofa Geisha.Zhang is particularly looking forward to

working with the Swiss watchmaker. “I loveOMEGA’s watch-making heritage,” she said.“They have a great legacy and history,including their presence in China, of whichI am very pleased to be part of.”Zhang Ziyi is the highest-ranking woman

on Forbes’ list of China’s most powerfulcelebrities. The magazine also rates her asthe woman with the greatest amount ofsocial influence in China.

Zhang Ziyi

Find out who ismaking headlines inthe jewellery industry.

Rio Tinto AlcanExecutive to RetireMr. Dick Evans, the Chief Executive of RioTinto Alcan, has given notice of hisintention to retire and to step down fromthe boards of Rio Tinto on April 20, 2009,after the Rio Tinto Annual GeneralMeetings. Current President and CEO ofPrimary Metal Jacynthe Côté, who will alsojoin the Company’s executive committee,will succeed Mr. Evans.Executive responsibilities were given to

Côté, who joined the Company in 1988, onFebruary 1, 2009. Ms. Côté was responsiblefor all primary metal facilities and powergeneration installations worldwide and hasexceptional experience in the aluminumindustry. She has previously served asPresident and CEO of the Bauxite andAlumina business group and has also heldsenior management roles in businessplanning, human resources, environmentand health and safety.

Jacynthe Côté

Dick Evans

Barrick Gold AppointsAaron RegentOn December 23, Peter Munk, Founderand Chairman of Barrick Gold Corporationannounced that Aaron Regent has beenappointed President and Chief ExecutiveOfficer of the Company, effective January16, 2009.“Aaron’s outstanding strategiccapabilities and highly-focused resultsorientation will fit in well with Barrick’sunique corporate culture,” said Munk.Mr. Regent, 43, is a chartered accountant

and an experienced executive withcombined expertise in the mining andfinance sectors. He was the SeniorManaging Partner of Brookfield AssetManagement Inc. and Co-CEO of itsInfrastructure Group and was previouslythe President of Falconbridge Limited.“Barrick is a dynamic mining enterprise

and an iconic Canadian company,” said Mr.Regent. “In these times in particular, gold isa unique property as a store of value that isemerging as an asset class of increasingimportance. I am really pleased to join theCompany at a time that is both exciting andchallenging for the gold industry.”Mr. Regent assumes his new role from

Barrick Founder and Chairman PeterMunk, who has been Acting CEO sinceearlier this year.

New Creative Director at GarrardLondon-based designer Stephen Webster hasbeen named the new Creative Director ofthe world’s oldest jewellery house, Garrard.The designer has been signed on to bring aninnovative and modern touch to theGarrard collections, while maintaining itsillustrious heritage.To this end, one of the first projects that

he will be designing will feature threedynamic collections: a new women’s rangein a combination of red, black and whitegemstones; a bold men’s range, inspiredby the British sportsman, in a mix of black,green, brown and gold, and the recentlyannounced Georgina Chapman forGarrard collection, due to be launchednext autumn.

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who’snews

Russell Simmons Presented the2009 GEM Award for StyleOn January 9, the Jewelry Information Center(JIC) held its annual GEM Awards inManhattan. Russell Simmons, who launchedthe Def Jammusic label and Phat Farmclothing line, was given the Awardfor Style in Innovation and Design forSimmons Jewelry Co.’s versatile andmodern jewellery collections.The JIC honours companies and

individuals that promote fine jewellery anddesign, as well as watches. Simmons receivedthe prize for his inventive design andphilanthropic efforts, which include thefounding of the Diamond EmpowermentFund (DEF), a charity that donates proceedsfrom his specially designed “Green Bracelet”to underdeveloped communities in Africa.Simmons Jewelry Co.’s collections cancurrently be found at premier jewellers inCalgary and Toronto.


New Communications Manager forResponsible Jewellery CouncilThe Responsible Jewellery Council (RJC) hasannounced that Mrs. Mila Bonini will be theCouncil’s new Communications Manager.Based out of London, England, the Councilis an international not-for-profit organizationrepresenting over 80 member companiesacross the gold and diamond jewellery supplychain. Prior to this new appointment, forseven years, Mrs. Bonini was the SeniorCommunications Representative for theWorld Jewellery Confederation, making hervery well known throughout the industry.With the RJC, Mrs. Bonini will be

responsible for the development andexecutive of the Council’s public relationsefforts. She will also liaise with variousCompanies, industries, organizations,stakeholders, and the media. Workingfrom Milan, she will also producethe Council’s external materials.

Sterling Mining NamesNew CEO & TreasurerSterling Mining recently announced theappointment of John P. Ryan as Presidentand Chief Executive Officer and Ron Hoas Corporate Secretary and Treasurer, botheffective immediately. Mr. Ryan was alsonamed to the Board of Directors of theCompany. In the official company release,Mr. Ryan noted: “I’m looking forward tothe hands-on challenge of continuing therenewal of the Sunshine Mine. I am excitedto chart a path forward for the Companyand the mining operation.” Mr. Ryan hasextensive experience with developmentalcompanies, and currently serves on theboard of directors of U.S. Silver and is oneof its three co-founders. Mr. Ho has 10years of corporate financial experience,most recently as Chief Financial Officerof SNS Silver Corporation. [CJ]

Leonardo DiCaprio Inks Dealwith TAG HeuerLuxury watchmaker TAG Heuer has addedLeonardo DiCaprio to its lineup of brandambassadors. DiCaprio is replacing BradPitt for the brand as his contract ended lastmonth. The 34-year-old actor will star inthe Company’s “What Are You Made Of”campaign, joining the list of other notablecelebrities to endorse the timepieces suchas pro golfer Tiger Woods and actressUma Thurman.DiCaprio will be promoting TAG Heuer’s

signature 43-millimeter Carrera Day-Datechronograph along with other products.The star, who has long been a championfor environmental causes and animalwelfare, negotiated that part of the royaltiesgenerated from select TAG Heuer pieces,and his own fees, be donated to a yet-to-be-determined environmental organization,although contract details have notbeen released.

Leonardo DiCaprio

Model Heidi Albertsen, wearing a

Simmons Jewelry Co. necklace, and

Russell Simmons at the GEM Awards.

Mila Bonini

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For details, write #119 on Free Info Page, page 96.

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CORPORATE INCENTIVES

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www.cardinalwatch.comEmail: [email protected]

Fax: 514-337-4581 Toll-free: 800-561-3214

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GJEPC Calls Off AppealThe Gem & Jewellery Export PromotionCouncil (GJEPC) called off its appeal tocease the import of rough diamonds intoIndia. The initial appeal was made in mid-November 2008.

With the firm support of its members,Vasant Mehta, Chairman of the GJEPC,said: “I am thankful to the industry for

supporting the appeal to cease the import ofrough diamonds for one month. Althoughthe global situation has not improved —and U.S. holiday season retail sales werevery disappointing — we feel confident thatour members now possess all the tools andthe information required to exercise theneeded self-discipline in their future roughdiamond acquisition decisions.”

Mr. Mehta also stressed that the GJEPCwould take all possible steps to mitigate therisks for its members and increase itsendeavours to promote India’s diamondand jewellery sector in the global markets.

The one month “breather” period wasused by the GJEPC to bring in overseasexperts to brief members of the council andbankers, and to enter into dialogue with thegovernment on specific assistance measureswhile at the same time avoiding anirresponsible increase in the industry’sbanking debts.

TGJTA Reports Increasein ExportsThe Thai Gem and Jewelry TradersAssociation (TGJTA) released the Thaidiamond, gem and jewellery industry’sexport figures for the first three quartersof 2008. In 2008 the country’s diamond,gemstone and jewellery exports rankedfourth on Thailand’s export listings, onlypreceded by machinery, cars and energy.

In the first nine months of the year, gemand jewellery exports reached $5.96 billion,an increase of 70.2% compared to the sameperiod in 2007. The five chief exportdestinations were Hong Kong with $1.19billion; Australia with $1.1 billion; the USAwith $827.4 million; Switzerland with$641.6 million and Israel with $263.7million. The exports for this period alreadyexceeded the total exports of diamonds,gemstones and jewellery achieved for thefull 12 months of 2007.

“Thailand has the resources andcapabilities to retain its leading position inthe global gem and jewellery markets,” saidTGTJA President Vichai Assarasakorn.“Our relatively cheap labour costs, expertworkmanship, manufacturing andhigh quality products will continue tocompete even in a market that issomewhat depressed.”


news trends events

$26K Black Diamond Ski PackageNorthstar-at-Tahoe Resort in California is offering anover-the-top package that is designed to impress. TheBlack Diamond Ski Package features luxury lodging,lift tickets, numerous on-mountain experiences, diningand a $10,000 rare black diamond necklace featuringa black Tahitian pearl from Spirits in Stone.Real black diamonds, known as “Carbonados,” are

incredibly rare. Spirits in Stone, creators of the blackdiamond necklace, is one of the original boutiques inthe Village at Northstar and one of the few galleriesand jewellers in the United States to carry thespecialty stone.The total package price is $26,653 and is offered

from January 1, 2009, until the end of the season.

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F E B R U A R Y / M A R C H 2 0 0 9 CJ 27

fortherecord

Holiday Jewellery Retail Numbers InMoneris Solutions, Canada’s largest processorof debit, credit and gift card paymentsreleased its 2008 holiday season data thatrevealed resilience and — for some merchantcategories — dramatic growth in consumerspending across the country. Department andapparel stores made significant gains inDecember, while discount stores suffered thesteepest credit and debit card dollar volumedecline of all merchant categories studiedby Moneris.

“Canadians braved both the economicclimate and December’s inclement weather togo on and spend more this December thanthey did last year,” said Brian Green, SeniorVice President of Moneris.

Increased spending activity was mostdramatic in department and apparel stores(up 6% and 9% respectively), as well aselectronics (up 11%) and jewellery retailers(up 21%). In fact, along with drug stores,jewellery retailers were the least volatileperformers in December 2008, down just 1%respectively from last December.

Italy’s Top Designers Bring HighFashion to Wedding BandsIn a project four years in the making,Platinum Guild International-Italy (PGI-Italy), brought together 23 of Italy’s brightestand most well-known design mindsincluding Salvadore Ferragamo andGiampaolo Babetto to reinterpret the classicwedding band. The result was an Italianexhibition called “Eternal Platinum: TheUltimate Symbol of Love,” which wasshowcased at Milan’s Triennale Museumthroughout the month of November.

“Today, with respect to marriage, weshould reflect on the role of the jewellery,”said the exhibit’s Curator, Alba Cappellieri.“The project was given to marry traditionwith innovation in the outward expression ofhow two different people become, in a sense,one unit.”

Pacific Northern’s Loaner ProgramPacific Northern, the industry’s leader incustom jewellery, optical and watch displayproducts, has introduced a new emergencydisplay loaner program to jewellers hitby natural disasters such as hurricanesand floods.

“We have already sent out displays tojewellers affected by the floods in Iowa andhave helped them get their stores open,” saysLarry Johnson, Sr. Vice President, BusinessDevelopment, of the Texas-based Company. Asthe business restores its operations, the displaysshould be returned to the local state jewelleryassociation for safekeeping and futuredistribution in case of another disaster.

At the cost of shipping and with no futureobligations, Pacific Northern will providethose in need with the required display items,ranging from full showcase sets, to singledisplay elements (neck-forms, risers, ringtrays, etc.). The offered inventory consists ofnew, first-quality items finished in commondisplay colours of leatherette fabrics.

TD and Birks Credit CardTD Retail Card Services (formerly ShoppersCharge Accounts Co.) has acquired the privatelabel credit card program of the Canadianoperations of Montreal-based Birks & MayorsInc. Under the agreement, the business unit ofTD will direct all facets of the program for the37 Birks stores, which are located in majormetropolitan markets across Canada. The Birkscard can also be used for online purchases onthe retailer’s website.

Following the move to TD Retail CardServices, Birks cardholders will continue to haveaccess to several financing options, includinginterest-free and low-interest offerings, as wellas a customer loyalty rewards program and avariety of special incentives and services.

Famed Red Diamond on Display in L.A.The Natural History Museum of Los Angeles County was proud todisplay the world’s most storied red diamond, the “Kazanjian Red,” untilFebruary 1 in its Gem and Mineral Hall. Found around 1927 in thediamond fields of South Africa, the red diamond was a sensationaldiscovery. During World War II, it was stolen in Arnhem during Nazioccupation of the Netherlands, and hidden in a salt mine with otherlooted treasures. When it was recovered by American soldiers, it was atfirst mistaken for a ruby. It passed through several hands until it waspurchased by a private collector in 1970. There it remained hidden until2007 when it was purchased by Los Angeles-based Kazanjian Bros. Inc.This was its first exhibition in the U.S.



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27 Queen St. E., Suite 703 Toronto, ON M5C 2M6T (416) 368-2690 • F (416) 368 2426

Email [email protected]

De Beers Ends Relationshipwith ALROSAThe world’s two largest diamond producers,De Beers and ALROSA, have officially endedtheir trade relationship, in accordance withcommitments made to the EuropeanCommission (EC), says Rapaport News. Underthe agreement made legally binding in 2006,De Beers committed to stop purchasingdiamonds from ALROSA as of 2009. The ECargued at the time that the cessation of tradebetween the two would “result in more roughdiamonds being available on the open market,paving the way for genuine competition in thesupply of rough diamonds.”

As it stands, however, ALROSA can still legallysell rough diamonds to De Beers, as theEuropean Court of First Instance annulled thedecision to ban trade between the two companiesin July 2007, after ALROSA successfully arguedthat it had not been consulted about the ECruling. The EC has since appealed the courtdecision, and awaits a hearing on the matter, acourt spokesperson told the news wire.

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Daniel Espinosa FightsAgainst PovertyDaniel Espinosa (DE) designed asignature sterling silver, limited edition linkbracelet with white Bakelite detail forWear White 4 Windfall 2009 (WW4W), apublic awareness and fundraisinginitiative in support ofWindfall ClothingService, Canada’s only new clothingbank. With each $40 bracelet purchasedfrom the DE Canada store in Toronto, theCompany will donate $10 to WW4W.“When designing the Windfall bracelet

I wanted something simple andunderstated, something anyone wouldwear and ‘link’ them to the cause,” saysChristian Sarubi, Owner of DanielEspinosa Canada. “It was a privilege tocreate a piece of jewellery to generateawareness for the campaign, help raisefunds and to give back to the Torontocommunity, which has been so receptiveof our brand.”

Daniel Espinosa limitededition link bracelet.Photo: James Reid



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Sustainable Fine JewelleryLine LaunchesLaunching February 1, Precious Earth takesa step forward with the launch of a linededicated to transparency andconsciousness in the jewellery trade.Sourcing diamonds endorsed by TeamNamibia, a diamond industry monitoringbody, Precious Earth has designed acollection with beneficiated diamonds fromNamibia. Renowned designer RobertPelliccia designed the Endangered Speciescollection that marks the launch of PreciousEarth. The Company will donate 5% ofgross profits from the collection to a charitythat raises awareness and provideseducation and healthcare to localpopulations in Africa.

Metalsmith Wins TwoGold Ink AwardsTrade magazines Publishing Executive andPrinting Impressions, co-sponsors of theAnnual Gold Ink Awards, announced thatMetalsmith magazine published by theSociety of North American Goldsmithshas won two awards: one silver and onepewter in the Trade Magazine WebPrinting Category.

The Gold Ink Award winners were chosenfrom nearly 1,500 entries submitted within50 different categories. Winning piecessurpassed their competitors based on printquality, technical difficulty and overallvisual effect.

New Web Marketing Toolsfrom DalumiDalumi customers can now benefit fromthree new web marketing tools designed toboost online sales. “We are seeing majorgrowth in online diamond sales and ourtools will help clients get the most from thisopportunity, whether they currently have awebsite or not,” explains Yuval Kemp, Headof Marketing and Business Developmentat Dalumi.

Dalumi is offering a range of onlinesolutions to suit its clients’ differentmarketing needs: a branded mini stockwebsite, an unbranded stock web pageand an inventory feed centre. In additionto these innovative web marketingtools, diamonds can also be purchaseddirectly from Dalumi’s highly successfulonline inventory.

WFDB Calls for Long-TermMarket PerspectiveWith initial reports from the major marketsindicating that consumer spending duringthe 2009 holiday season had fallen atsome of the steepest rates in the past fourdecades, the World Federation of DiamondBourses (WFDB) is urging members of its28 affiliated bourses to maintain confidencein the long-term prospects for diamondsand diamond jewellery.

Commenting on the lacklustre holidayseason, WFDB President Avi Paz said thatthe fall in consumer spending wasinevitable, given the general mood ofuncertainty that has prevailed since the

onset of the global financial crisis. But healso expressed his confidence that thefundamentals of the diamond business aresound, and for that reason said that theindustry will see through the currentdownturn and emerge healthy, just as ithas done through numerous periods ofdifficulty in the past.

“Consumers are shell-shocked at present,and as such they instinctively cut back onspending,” Paz said. “But researchconducted already after the onset of thefinancial crisis demonstrated that notonly do diamonds retain their appeal, butthey lead the luxury product category by alarge margin.”

World Peace Egg at ROMA very special work of art is on display at the ROM’s The Nature of Diamondsexhibit until March 22. The World Peace Egg, a 165 mm tall, 252.60 carat (plus1.89 carats rough) creation, was imagined and designed by Toronto-basedMirage Creations Inc. The outer shell of the Egg is invisibly set with 865princess-cut diamonds, which protect a globe finely handcrafted in 18-karatgold. When the globe is opened, it reveals a dove of peace, hand carved fromrock crystal with gold and enamel accents.The Egg was a labour of love that was designed to celebrate the strides that

have been made toward achieving peace and to showcase Canadian jewellerytalent, says Eli Goldstein from Mirage. “We knew that making something likethe Peace Egg would grab the world’s attention and show people that we dohave great jewellery talent in this country.”After its run at the ROM, the World Peace Egg will travel to museums in

New York, Washington, Chicago and Seattle. After returning to Canada, theEgg, which has been appraised at $2.6 million U.S., will be available at auction,with part of the proceeds going to peace-promoting charities.

Photo: 2007 Mirage Creations Inc., Courtesy Mirage Creations Inc., Toronto, Ontario, © Royal Ontario Museum, 2009




M. Geller Launches WebRetail ProgramOn December 15, diamond importer M. Geller,Ltd. announced a new web-based retail programthat gives retailers an easy, cost-free way to offertheir customers 24/7 access to an e-commerceplatform. The program, called Diamond JewelryBuilder, is easily integrated into the retailer’sexisting website and can be customized to fit thestore’s brand. Customers can design their owndiamond jewellery by selecting the setting,metal, diamond size and quality.

Finished jewellery is shipped from M. Gellerin the retailer’s packaging at no cost to theretailer if the jewellery is purchased directlyfrom the website. The Jewelry Builder also hasa basic statistical tracking technology thatallows M. Geller to provide important

marketing feedback to the retailer.“An expanded web presence and diamond

supply are critical for the survival of today’sretail jewellers,” said Jay Gerber, Geller’sExecutive Vice President of Sales andMarketing. “And our survival depends upontheir survival.”

Goldline Doubles Sales WorkforceA gold company executive has outlined howhis organization managed to expand itsbusiness in 2008 despite the global economicdownturn, reports Adfero Limited.

In an interview with CNBC's Jane Wells,Goldline International President and ChiefExecutive Officer Mark Albarian noted that thefirm has bucked the trend for reducing stafflevels in the wake of the slowdown.

Albarian said that the Company hasmanaged to double its sales workforce,something that was planned before thedownturn but was boosted by the recentpopularity of gold.

More investors are buying gold in a bid todiversify their portfolios and Albarianrevealed that he thinks the metal will reachrecord highs in 2009. However, he advisedany investors thinking of purchasing goldthat precious metals should be viewed aslong-term investments only.

U.S. Polished Imports HitThree-Year LowAccording to Rapaport News, U.S. polisheddiamond imports hit a three-year low inNovember, falling close to the billion-dollarmark. Polished imports dropped 37% to $1.09billion for the month, and decreased 45% byvolume to a record low of 665,361 carats. Theprice per carat for polished imports, however,rose 15% compared with November 2007, to$1,635 a carat.

The effects were felt around the world asU.S. polished imports from Israel decreased42% to $543.6 million in November, andexports to Israel declined 20% to $339.8million. Similarly, polished diamond importsfrom Belgium were down 23% to $243.6million and exports to Belgium fell 24% to$231.6 million. Imports to India dropped 57%to $129.6 million, while exports increased 19%to $128.1 million.

GIA Reports Pink Colour inCopper-bearing TourmalinesA release issued by the GIA on January 29,says that samples of blue to blue-green,copper-bearing tourmaline containing surface-reaching growth tubes surrounded by intensepink “sleeves” have recently been seen in thetrade. In response to rumors of possiblediffusion treatment, GIA Laboratorystaff members examined several of thesetourmalines over the past year anddetermined that the pink zones wereproduced by fluids containing naturallyoccurring radioactive material.

All the copper-bearing tourmaline sampleswith this feature observed thus far have comefrom Mozambique. This suggests that this typeof inclusion feature may be characteristic ofthat locality.

Dubai Pearl ExchangeSome of the world’srarest and most soughtafter natural andcultured pearls will beoffered in a privatetender of the DubaiPearl Exchange asleading producersPaspaley Pearling Co.,Robert Wan and CogentTrading gather fromFebruary 12 to 16.Top pearl buyers from

the international trade,leading jewellery designbrands and members ofthe Dubai PearlExchange will presentclosed bids for up to 80lots of important singlepieces and gem qualitymatched sets, as wellas strands of significantrarity. Never beforehas such a collectionof pearls been offeredfor sale.“Hosting a pearl sale

of this calibre enables our Dubai Pearl Exchange members to access someof the world’s rarest pearls while creating a viable trading channel for some ofthe world’s largest producers, all in a location recognized historically as amajor pearl trading hub — Dubai,” said Ahmed bin Sulayem, ExecutiveChairman of the Dubai Multi Commodities Centre.


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Hong Kong Survey Results InA survey conducted by Jewellery News Asiaof 30 diamond traders in Hong Kongbetween November 27 to December 5, 2008,revealed that half of the survey respondentssaw their diamond sales drop by 20 to 50%in 2008 compared with the previous year.The study also revealed where Hong Kong-based diamond traders imported andexported diamonds from and to last year.About 77% of the respondents said theysourced diamonds from India last year.Nearly half of the companies surveyedimported goods from Belgium and Israel,while the rest sourced goods from Russia,United States, South Africa, Canadaand Thailand.

With regard to demand for diamonds,Hong Kong and China were the majormarkets for a majority of the respondents,with 60% selling in Hong Kong and 53%exporting to China.

RJC Introduces NewCertification SystemOn December 4, the Council for ResponsibleJewellery Practices released theimplementation documents for the Council’ssystem for certifying responsible ethical,social and environmental practicesthroughout the diamond and gold jewellerysupply chain. The Council also released itsnew logo and announced the adoption of thesimpler trading name, “Responsible JewelleryCouncil” (RJC).

The new system requires members of theRJC to be audited by an accredited third-party to verify their conformance with theCouncil’s standards. Members who havebeen independently verified as conformingto the Code of Practices will becomeCertified Members of the ResponsibleJewellery Council. The RJC System isexpected to become fully operational in thesecond quarter of 2009.

Tiffany & Co. Sales FallOn January 14, Tiffany & Co. reported toRapaport that worldwide sales fell 21% to$687.4 million in the final two months of2008. On constant exchange basis, sales fell20%, while same-store sales declined 24%.

Tiffany reported that sales in the Americasdeclined 30% to $385.9 million led by a 35%drop in comparable store sales across the U.S.In the Asia-Pacific region, sales fell 2% to $216million, and on a constant exchange rate basissales fell 8%. In Europe, sales declined 4% to$79.2 million but rose 19% on a constantexchange rate basis with comparable store salesdecline of 3%.

This past Christmas season, sales declineswere widespread across the U.S. and for allprice categories, making it the worst Christmasin 21 years. In a statement, Tiffany’s chiefExecutive Officer Michael Kowalski said hebelieves these conditions will, unfortunately,continue well into 2009.


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Chocolate Lovers will Love MCD PearlsMCD Pearl Imports, a leader in pearl strands, loosepearls and pearl jewellery, has recently launched aline of chocolate coloured pearls. CompanyPresident, Peter Stein, says that these rich, warm,exotic-looking varieties are following a popular trendin the industry. “There’s a big revival in chocolate,” hesays. “For diamonds as well, and it just seems like[pearls are] a natural add-on.” Currently, MCD offers achocolate coloured pearl collection, including stands,pairs, and loose Tahitian and freshwater pearls. WhileStein notes that these unique offerings are relativelynew to Canada, there is a mounting demand forMCD’s and other chocolate-hued pieces.



Company Name

GEMSTONES

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*This selection of securities is not to be interpreted as a solicitation and companies are not endorsed by Rive Gauche Media.

stock indexConclave Designed to HelpJewellers SucceedPresenters will bring business-boostinginsight from the classroom, the corporateworld, and the kitchen to the American GemSociety Conclave®, held from April 1 to 4,2009, in Chicago, Illinois.

“Each piece of the program — from theinteractive workshops to the inspirationalkeynote speakers — has been designed tohelp Conclave attendees succeed bystrengthening and sharpening themselvesand their businesses,” said Ruth Batson,Executive Director and CEO of the AmericanGem Society.

For the first time, Conclave will featuregraduate-level business school workshopsthat provide tools for success and profitablechange — even in a challenging economicclimate. The program will be taught byaward-winning university professors andresearchers including David Drehmer, anAssociate Professor of Management andOrganization at DePaul University andChristopher Eckrich, a Principal of TheFamily Business Consulting Group, Inc.

Hong Kong’s Diamond TradeStrong but SlowingIn the first three quarters of 2008, HongKong’s diamond trade showed robust growth,but as Jewellery Net Asia reports, this growthslowed in the fourth quarter.

According to figures from the DiamondFederation of Hong Kong, China Ltd (DFHK),imports of polished diamonds in the first ninemonths of 2008 reached US$8.9 billion, up35% compared with the same period in 2007.Exports, meanwhile, rose from US$3.8 billionto US$6.2 billion, a growth of 6%. In total, thediamond trade in 2008 for the first threequarters amounted to US$15 billion, 45%more than for the corresponding period in theprevious year.

Statistics also show an overwhelmingdemand for Hong Kong’s polished diamondsfrom the markets of Germany, India, Belgium,South Africa and Sri Lanka. In the first threequarters of 2008, exports and re-exports ofpolished diamonds of 1 carat and above grewby 119%. Exports and re-exports to Germanygrew a whopping 1,162%; to India, 392%; andBelgium, 145%. [CJ]

Agnico-Eagle Mines AEM TSX $56.02 $59.14 5.57% $82.80 $26.60 $143.10 68.43 $8,509Alamos Gold AGI TSX $8.18 $7.52 -8.07% $9.14 $3.50 $37.70 33.48 $720Anglogold Ashanti Ltd. AU NYSE $26.82 $25.39 -5.33% $51.35 $13.37 $977.00 41.25 $7,135Anvil Mining Limited AVM TSX $0.91 $1.37 50.55% $15.19 $0.45 $43.30 2.69 $98Barrick Gold Corp. ABX TSX $41.85 $39.20 -6.33% $54.11 $22.00 $1,898.00 17.9 $34,182Compania Minas Buenaventu BVN NYSE $20.97 $16.92 -19.31% $42.89 $9.00 $195.30 15.38 $4,305Eastern Platinum ELR TSX $0.32 $0.43 34.38% $4.18 $0.19 $11.70 44.5 $293Eldorado Gold ELD TSX $8.98 $9.25 3.01% $9.83 $3.44 $67.90 56.19 $3,387Equinox Minerals Limited EQN TSX $1.39 $1.76 26.62% $6.09 $0.76 $13.70 N/A $1,044First Quantum Minerals FM TSX $17.90 $23.60 31.84% $96.53 $12.75 $568.90 2.3 $1,623FNX Mining Company FNX TSX $2.90 $4.02 38.62% $35.10 $2.00 $75.40 9.33 $341Fortune Valley Resources FVX TSX-V $0.01 $0.02 50.00% $0.40 $0.01 N/A N/A $0Gammon Gold GAM TSX $5.05 $6.01 19.01% $11.20 $2.68 $51.70 N/A $719Gold Fields GFI NYSE $10.08 $8.79 -12.80% $18.08 $4.64 $737.90 11.61 $5,741Goldcorp Inc. G TSX $38.00 $32.38 -14.79% $52.48 $17.77 $807.10 28.96 $23,599Iamgold Corp. IMG TSX $6.70 $6.95 3.73% $10.25 $2.93 $229.60 20.06 $2,055International Royalty IRC TSX $1.68 $1.81 7.74% $6.65 $1.30 $11.50 11.56 $142Ivanhoe Mines IVN TSX $2.98 $3.84 28.86% $13.54 $2.06 $3.10 N/A $1,442Kinross Gold K TSX $22.00 $21.14 -3.91% $27.16 $8.96 $548.20 35.95 $13,930Lundin Mining LUN TSX $1.22 $1.47 20.49% $9.35 $0.77 $209.10 N/A $574Newmont Mining NMC TSX $47.88 $43.98 -8.15% $58.44 $27.14 $1,392.00 17.89 $16,269NovaGold Resources NG TSX $2.09 $2.13 1.91% $12.06 $0.48 $34.80 59 $224Pan American Silver PAA TSX $20.45 $21.13 3.33% $43.66 $11.12 $84.20 18.56 $1,707Red Back Mining Inc. RBI TSX $7.50 $7.48 -0.27% $9.25 $3.28 $56.50 N/A $1,411Silver Standard Resources SSO TSX $17.30 $21.38 23.58% $40.20 $6.87 $1.80 N/A $1,341Silver Wheaton SLW TSX $7.09 $7.42 4.65% $19.30 $3.07 $41.20 15.87 $1,866Teck Cominco Ltd. TCK.B TSX $5.98 $7.05 17.89% $52.90 $3.35 $1,821.00 2.13 $3,168Yamana Gold Inc. YRI TSX $8.38 $8.33 -0.60% $19.79 $4.29 $431.50 18.46 $5,824

Anglo American PLC AAUK Nasdaq $12.64 $11.25 -11.00% $38.75 $11.11 N/A 2.81 $29,748BHP Billiton Limited BHP NYSE $44.32 $43.88 -0.99% $95.61 $24.53 N/A 8.15 $157,090Diamcor Mining DMI TSX-V $0.19 $0.27 45.95% $1.17 $0.21 N/A N/A $2Diamond Fields International DFI TSX $0.05 $0.05 -10.00% $0.63 $0.03 $0.70 N/A $11Dios Exploration DOS TSX-V $0.06 $0.11 75.00% $0.41 $0.05 N/A N/A $4Harry Winston Diamond HW TSX $5.88 $5.75 -2.21% $32.15 $3.90 $217.40 1.19 $353Mountain Province Diamonds MPV TSX $1.10 $1.08 -1.82% $5.14 $1.38 N/A N/A $65Moydow Mines Intl Inc MOY TSX $0.08 $0.08 -6.25% $0.22 $0.05 N/A N/A $5New Nadina Expls Ltd NNA TSX-V $0.12 $0.15 25.00% $0.49 $0.08 N/A N/A $4Nordic Diamonds Ltd NDL TSX-V $0.01 $0.02 200.00% $0.24 $0.01 N/A N/A $1Rio Tinto RTP NYSE $98.75 $100.11 1.38% $558.65 $59.20 N/A 2.92 "$26,703Stornoway Diamond SWY TSX $0.07 $0.13 100.00% $0.75 $0.06 $0.10 N/A $30Tahera Diamond TAH TSX $0.01 $0.01 0.00% $0.16 $0.01 $5.70 N/A $1True North Gems TGX TSX-V $0.06 $0.12 100.00% $0.59 $0.05 N/A N/A $8

Birks & Mayors BMJ AMEX $0.42 $0.59 40.48% $5.60 $0.30 N/A 0.49 $7Fossil Inc. FOSL Nasdaq $14.14 $15.06 6.51% $38.08 $11.51 $409.80 7.77 $1,019Sears Canada SCC TSX $17.95 $19.18 6.85% $25.39 $15.00 $1,443.80 6.94 $2,064Signet Group SIG NYSE $9.02 $8.96 -0.67% $31.62 $7.09 $629.30 N/A $764Tiffany & Co. TIF NYSE $24.43 $22.40 -8.31% $49.98 $16.75 $618.20 8.79 $2,778Wal-Mart WMT NYSE $55.24 $51.58 -6.63% $63.85 $43.11 $98,642.00 15.07 $202,915Zale Corporation ZLC NYSE $3.22 $3.43 6.52% $42.23 $2.93 $364.10 N/A $109

Gold COMX $852.30Silver COMX $11.30Platinum NYME $998.50Palladium NYME $194.50


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Shore Reduces BudgetSenior VP George H. Read recentlyannounced that Shore Gold Inc. has reducedits 2009 budget to $17.9 million. Thereduction is due in part to the globaleconomic downturn and the diamondmarkets. The new budget includes $2.5million for its Star property, $1.0 million forStar West and $9.5 million for the Fort a laCorne Joint Venture.The budget, in combination with its

current cash position and other creditagreements, will ensure the Company’sfinancial stability through 2010 when aproduction decision is anticipated. Thelimited underground and the completionof the large diametre drilling sampling onOrion South together with the tightlyconstrained 2009 budget might see staffreduction on-site.In the release, George Read notes: “We are

convinced that the 2009 budget enables us tomake significant progress towards aproduction decision on Star whilesimultaneously estimating a resource onOrion South. This approach unfortunatelycomes at the expense of a considerablereduction in the size of our staff. Manyalternative work programs have beenexhaustively considered prior to makingthis decision.”

Shear Minerals Closes $500,000Private PlacementEdmonton-based Shear Minerals Ltd.recently reported it has raised gross proceedsof CAD$414,250 in a non-brokered privateplacement of its shares. The funds will beused to cover expenses under CanadianExploration Expenses at the ChurchillDiamond project in Nunavut. This comesas a great boost for the Company who closedanother private placement — CAD$1.18million — for the same project earlier inDecember 2008.The Company reported that the units were

sold to theMineralFields Group, a Toronto-based mining fund that is a division ofPathway Asset Management. TheMineralFields Group offers tax-advantagedsuper flow-through limited partnerships toinvestors in Canada as well as hard-dollarresource limited partnerships.

In this latest placement, Shear sold7,142,857 units at $0.07 per unit, eachconsisting of one common share and one-halfof a non-transferable share purchase warrant.This entitles the holder to acquire anadditional common share at a price of $0.20until December 31, 2010.

Terra Ventures Completes DrillingProgram in QuebecTerra Ventures Ltd. announced it has receivedfinal assay data from a 12-hole diamonddrilling program totaling 4,004 metres on itsLac Kachiwiss uranium property near Sept-Iles,Quebec. The mineralized system remains opento the north, east and west, and also at depth.The 12 holes varied in depth from 187.15metres (due to technical problems) to 550.47metres, averaging 333.7 metres. Terra’s goal wasto find the limits of the mineralized zones. Itwas reported that the program was successfulin expanding the mineralized system. Thejunior exploration Company is planningadditional diamond drilling at the site todetermine the full extent of the mineralizedsystem aimed at defining a resource.

IGC and Nkwe to MergeAustralian platinum exploration CompanyInternational Goldfields (IGC) has finalized itsterms for the proposed merger with emergingplatinum producer Nkwe Platinum.In 2008,Nkwe Platinum signed an option

for the exclusive rights to negotiate atransaction with IGC to acquire its SouthAfrican platinum assets or shares. Under theterms of the IGC proposal, Nkwe would offerto buy all IGC ordinary shares on the basis ofIGC’s cash in the bank, at the time of theimplementation of the scheme, as well as avaluation of IGC’s interest in the Tubatseproject, located in the platinum-rich BushveldComplex in South Africa.The agreement would be valued at about

$60 million, however, the final offer pricewould be determined by the total numberof shares in issue at the time the scheme wasimplemented. The targeted completion dateof the agreement is March 31. IGC ExecutiveChairperson Tony Sage stated that theCompany was united with Nkwe in the beliefthat a consolidation ownership structureneeded to occur.

Teck Cominco to Cut 1,400 JobsVancouver-based Teck Cominco announced itis eliminating 1,400 jobs (approximately 13%of its workforce) in a move to increasemarket share and cut costs, boosting marketshares in the process as a result of weakcommodity prices. The Companyanticipates cuts to come from unitsassociated with exploration activities,research and development, and the recentFording Canadian Coal Trust acquisition.The job cuts, which are made up ofapproximately 1,000 employees and 400contractors, will take effect during the firstquarter and will be finished by the end of2009. Savings are estimated atapproximately $85 million annually.“Given continued economic uncertainty,

a significant reduction in our workforce isneeded to further reduce costs and positionTeck for both short- and long-termcompetitiveness,” commented President andCEO Don Lindsay in a release. According tothe Company, 550 of the cuts will be madein Canada, including 400 in BritishColumbia, 105 in Alberta and another 45across other parts of the country.

Kenya Fluorspar GetsMinority InvestmentThe board of directors of Kenya FluorsparCompany Ltd. announced it has received asignificant minority investment from theFirebird Global Master Fund II, Ltd. aimed atincreasing prospects and the profile of theKerio Valley mining operation.In the official statement, Kenya Fluorspar

Chairman Mr. Charles Field-Marshamnoted: “This strategic investment by anexpert in global mining attests to thesuccess of the efforts of Kenya Fluorsparand its employees to continually improvethe operations of the mine.” Moreimportantly, this investment will offer manybenefits to Kenya Fluorspar projectsincluding the extension of the economic lifeof the mine by funding a drilling program,improved and upgraded facilities, andincreased job security. On another positivenote, the Company has initiated anEmployee Share Ownership Program,allowing employees to become partialowners of Kenya Fluorspar.

The latest news on mines.

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Yamana Gold ReleasesOptimistic Operating OutlookCanadian-based gold producerYamana Gold predicts thatproduction will increase by40% in 2009, according to itsoperation outlook for the 2009-2010 year. The Company hasoperations, development andexploration properties and landpositions range of properties atvarious stages of development inBrazil, Argentina, Chile, Mexicoand Central America. Otherfigures released forecast cashcosts will decline over the next two years, while goldproduction is expected to reach 1.3 million to 1.4 milliongold equivalent ounces (GEO) this year and 1.4 million to1.5 million GEO in 2010. Plans for expansion were alsoreported for the Chapada prospect mine, additionaldevelopment work at El Penon, and initial work andexpected feasibility study update on QDD Lower Westat Gualcamayo.The Company says it is well financed to fund its strategic

growth plan and business objectives. “Yamana is verywell positioned for 2009,” said Peter Marrone, YamanaChairman and CEO in the official release. “We took timeto better understand our assets and gather furtherinformation in 2008 and it positions us well beginningwith 2009 both in terms of production and costs.”

Peter Marrone


Grant Gold Project TerminatedStikine Gold Corporation has received finalassay results from the initial samplingprogram on its Grant Gold Project locatednear Fort St. James, British Columbia.A total of 46 samples were analyzed andshowed that less than 10% of the sampleshad potentially economic gold grades,with the highest assay result returning0.8 g/t gold.After analysis, Stikine has concluded

that although a very large number of thesamples contained visible gold flakes orfine grains when concentrated, they arenot of sufficient abundance to warrantfurther sampling of the property. Basedon these results, the Company hasdecided not to proceed with the optionagreement for property announcedon September 2, 2008.

Northern Gold SignsLetter of IntentIn an official release, Martin Shefsky,President and CEO of Toronto-basedNorthern Gold Mining Inc., reports that theCompany has entered into a Letter of Intentwith ValGold Resources Ltd. The agreementcovers the Garrison gold property,consisting of 35 patented claims in GarrisonTownship, approximately 100 kilometreseast of Timmins, Ontario. According toMr. Shefsky, “this property strengthensour holdings in Northern Ontario andimmediately provides Northern Gold withan advanced exploration project that hasthe potential for a large gold deposit.”Under the terms of the agreement,

Northern Gold may earn up to anundivided 80% interest in the Garrisongold property.

Rio Tinto Adjusts ProductionRio Tinto is set to slow down its Argylemining project and ease diamond productionin 2009 in response to the Company’s debt-reduction plan and global market conditions.This will result in a reduction of contractorsand staff throughout the year. This decision isin line with many diamond miningcompanies, including De Beers and ALROSA.“Given global market conditions, we will

also reduce diamond production by taking anextended maintenance shutdown of thediamond processing facilities for up to threemonths, commencing in March,” commentedKevin McLeish, Chief Operating Officerof Argyle Diamonds, in a report releasedin January 2009.McLeish is hopeful that the mine still has

some resources remaining, as it a premiersource of rare pink diamonds. [CJ]

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scant 365 days ago, the state of the mining industry wasconsiderably more wide-eyed and optimistic. In fact, thestart of 2008 saw the industry literally booming, with

highest ever prices dedicated to the bulk of metals. However, as theyear progressed and the economy took a turn for the worse, thismarket boom was hard to even imagine.

In literally a heartbeat, the world’s economy was hit hard. Banksstopped lending money in order to contend with the mortgagecrisis and the equity crunch spread across all borders. No industrywas immune to the sudden downturn, and all started preparingtheir businesses for what many believe to be one of the mostchallenging years in recent memory.

A Worldwide ChallengeThis dramatic chain of events impacted the diamond market, andobviously, not for the better. It began at the retail level and thenquickly migrated to mining companies, who were experiencingdifficulties simply selling their products. The Diamond TradingCompany (DTC), part of the De Beers family of companies and the

world’s largest distributor of rough diamonds, witnessed roughprices rise by a remarkable average of 15-25% during 2008. For thefinal quarter of the same year in December, though, theorganization recorded its smallest sight in history, which saw overallsight values fall to one-sixth their previous average.

As the credit catastrophe continued to pick up steam, a myriad ofmanufacturers decreased rough purchases, and instead, focused onridding themselves of the stock that they were already holding. Itwas also during that same month, in December 2008, thatmanufacturing centres requested government assistance in order togain easier access to credit.

Plans to contend with shrinking markets continued whenthe Gemological Institute of America (GIA) recently made theannouncement that it will reduce its U.S. staff by 11%, while alsocutting executive salaries by 10%. There have been no cutsmade to its overseas workforce, however, GIA has begun to slowits international expansion plans and has also instituted ahiring freeze.

2009 is going to be a challenging one for the mining industry, though there are some very

good signs that the year will end on a positive note.

BY BRYAN SOROKA

ImpactGlobal

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“... the Mining Industry Human Resources Council forecast

a shortage of 92,000 mining workers in the next 10 years

across the country.”


Many miles east in Israel, the diamond industry was hit during the finalquarter of 2008 as well. Trading levels dropped dramatically and now,Israel is appealing to the country’s Ministry of Finance, asking to beincluded in the recently-approved credit allocation plan. The Israelimining industry is also asking for the Minister’s support in bringingbuyers back to the country in an effort to stimulate demand.

Aid is also being sought in India.NarendraModi, Gujarat Chief Minister,recently demanded a revival and relief package for the Indian diamondindustry. In amemorandum issued to PrimeMinisterManmohan Singh,the Chief Minister commented on the fact that incentives should be givento the industry. These would include a relief package for diamondworkers, along with a liberal credit policy for the companies within thefaltering diamond industries.

Namibian diamond producer Namdeb and De Beers Marine Namibia,meanwhile, has announced they will reduce production for early 2009and may also be cutting their workforce.

Canada was certainly not excluded from feeling the adverse effects of thefinancial markets. While the last few years have been very goodto diamond mining here, falling diamond prices have started to impactCanadian diamond production. In November 2008,De Beers announcedit would be decreasing its output for two newCanadianmines by 10-20%due to this drop in demand.

Vancouver-based Rockwell Diamonds is another industry memberfeeling the pinch. The Company announced they would extend theirusual two-week shutdown to five weeks this year to help save money.In addition to the shutdown, the Company is planning to restructureits Middle Orange River operations to further cut costs whileincreasing production. It plans to increase production at its newSaxendrift mine in South Africa, and suspend production at its lowergrade Wouterspan operation, also located in South Africa, until a newhigh-volume, low-cost plant is built.

Rio Tinto and the Antwerp World Diamond Centre (AWDC) announcedplans of their own to reduce the number of employees in a cost-cuttinginitiative. Rio Tinto is in the midst of attempting to reduce its net debt by$10 billion in 2009, which has triggered the Company’s plans to cut14,000 jobs and a total of $5 billion in spending. AWDC,meanwhile, has

cut 24 jobs while another Belgium-based organization, the InternationalGemological Institute, will release 15 of its Antwerp-based staff.

Working it OutThe slue of layoffs and deferrals of major mining projects have obviouslyraised many eyebrows. However, numerous industry groups andcorporations in Canada view the medium-term job prospects in mining asrelatively strong. A good indicator of this is a 2008 report by the MiningIndustry Human Resources Council (MIHR), which forecast a shortage of92,000miningworkers in the next 10 years across the country.This numberwas amended following another report, this one from Ernst &Young, whichforetold a shortage of 70,000 workers for the same period of time.

Training is another challenge that is going to have to be overcome if themining sector is to thrive once again, and not only in Canada. TraditionalBRIC countries (Brazil, Russia, India and China) are experiencing theirown short supply of properly skilled workers. This is somewhatsurprising as these nations have been renowned for their highly skilledlabour in the past.

Age is also a factor to contend with insofar as reinvigorating the miningworkforce. It has been shown that the average age of employees in themining sector is 55, which is a clear indication that there is a growingneed to replace them with younger, yet still skilled and experienced,workers. Some of the most sought-after positions include geoscientists,metallurgists, mining engineers and geologists. Insofar as experience isconcerned, those with 10 to 15 years in the field are generally seen as theprimary candidates to stepping into the spots vacated by their retiringcounterparts. Of particular note is the fact that, according to the Ernst &Young report, an astounding 40% of the mining industry’s workforce isslated for retirement by the year 2014.

A Bright Future?Amidst all the prognostications of doom and gloom there are somereasons to expect that 2009 will shape up to be a good year for themining industry — especially in Canada. For one, the impact of therecent economic downturn has not adversely affected Canadianmining nearly as much as other sectors. Also, throughout theeconomic downturn, gold prices have managed to perform relativelywell. With these positives in mind, the Canadian mining industry hasa solid foundation to build upon. [CJ]

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BY EMILY SASO

The trends and price points that will shape 2009.

When John Harwood invented the automatic wristwatch in1923, he would never have imagined a world whereminiature telephones told time and an entire economy was

crippled by shortsighted mortgage brokers. In fact, thanks to thesemodern developments, watches these days should be a dyingcommodity — a redundant luxury that no longer fulfills a need in theWestern world.

However, evidence is proving otherwise. In Sotheby’s final auction of2008, watch sales attracted strong bids, achieving the second-highesttotal for a watch sale ever. The sale, which netted more than $1.5 million,was a sign of a hopeful future for the industry and, according to AlexBarter, Sotheby’s Director and Deputy Worldwide Head of Watches,demonstrated “that the market for watches remains extremely buoyant.”

So why, in the age of cell phones and frugality, are watches still tuggingat consumers’ heartstrings and their wallets, and what trends deservesome of the credit for this sustained demand?

Trend SpottingAt Matt Bailey in Montreal, it is business as (almost) usual. The storesells mostly men’s watches and almost all brands perform quite well —Hamilton, Bell & Ross and Alpina — the oversized U-Boat is the biggestseller. “The military look is in, but the real trend is size,” says SalesAssociate Marco Gagliano. “42 mm used to be oversized, now 44-46mm is the average and will still be big for 2009.”

For $2200, customers get the masculine design and oversized face (45mmor 53mm) that they are craving with U-Boat. For a little extra ruggedstyling, the brand’s Flight Deck chronograph at $3700 — a favourite ofSylvester Stallone — is also selling well. Call it the “Rocky Effect” if youlike, but masculine styling is here to stay for 2009, and not just for men.

“Some women are buying them too,” says Gagliano, who cites Hamilton’s$995 Below Zero model as a particularly popular choice for Matt Bailey’sfemale shoppers. “I sell a few a month to different kinds of women:professional, sporty, stylish,” he adds. “They are loving this look.”

Just Watch Me

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At Davidson’s Jewellers in Ottawa, Owner Judy Richards sees a great deal offemale watch aficionados and while she also notices some interest in largerwatch faces, rose gold has been the biggest trend for her clientele.

Davidson’s sells Movado and Raymond Weil watches, though it is theEsquire rose gold line that is selling almost as quickly as Richardscan stock it. Not only do these watches satisfy women’s currentdemand for the trendy gold hue, they also please the budget.“They’re under the $1,000 mark, which is great. Until recently,if you wanted rose gold you had to go higher end withRaymond Weil.”

Another feature that draws customers to the Esquire model is itsdiamond-covered bezel, a trend that Richards sees gainingstrength. “Women are really looking for something special in awatch. If they’re going to wear one, they’re likely not going towear another jewellery piece on their arm, so it’s appealing if awatch can also play the role of, say, a diamond tennis bracelet.”

Women who shop at the upscale downtown Ottawa store are alsoincreasingly concerned about cost and are gravitating moretowards the $300-$500 price point. “For us, it’s a watch withsome diamonds and rose gold in that price point that has thefastest turnover,” says Richards.

Cost is KeyGetting the most for their money is a major point of concern for almostevery consumer these days. At Fort Richmond Jewellers in Winnipeg,Owner Dan Flather has found that as long as he offers watches betweenthe $500 to $700 range, the customers will come. His store exclusivelysells Citizen and in his market, just like most others, men’s oversizedtitanium watches are very popular in that range. “Men really like the bigface and the details like the radio control and they want it all for under$1,000,” he says.

Hamilton’s masculine-styled Below Zero modelis selling well at $995.

“Something we say around here is, ‘Who cares what

time it is?’ Nobody buys a watch to tell the time anymore.

It’s all about the look.”



Monk’s Jewellers Ltd. in Victoria carries several lines including SwissMilitary and Bulova. Their top sellers include the Fiori line of women’swatches in the $150-$200 price range.“The area I sell in is working class,”says Owner Ron Monk, “so my customers are not going for Wittenaueror other expensive brands. Chronographs don’t sell here either.”

While Monk, a watch lover through-and-through, occasionally wishesfor a more discerning clientele, he is a savvy enough businessman toknow that the customer is always right. “And the customer here wantsan inexpensive standard Seiko type of watch,” he says.

Price is the top concern for Monk’s customers and always has been,recession or otherwise. “In the last two years, only two customers haveasked for watches over $500 — that’s just the market I deal with.” Whilewatches are moving fairly well, the saving grace for Monk has beenanother item altogether. “You know what our best seller is in the watchcategory? Watch batteries. I sell over 20,000 watch batteries a year. Farmore than watches themselves. I love watch batteries!”

The Look Has ItIf the biggest trends going into 2009 are rose gold, oversized faces, pricepoints under $1,000, and watches that also serve as jewellery, how doretailers make sense of it all to help ensure profits are robust?

It all comes down to your customers. If your store is higher end, you cantake more liberties with the items you stock. Matt Bailey is knownthroughout Montreal for selling the highest quality watches that may notbe the everyday, mainstream timepiece. Young professionals in theirmid-20s often come to the store to buy their first watch and areconcerned with image above everything else.

“Style is key, not utility,” insists Gagliano.“Something we say around hereis, ‘Who cares what time it is?’ Nobody buys a watch to tell the timeanymore. It’s all about the look — people are buying watches that reflecttheir personality and their personal style.”

Citizen’s Skyhawk A-Twatch has all the bellsand whistles at $725.

This Bell & Ross modelfeatures one of the toptrends for 2009 — rose gold.



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For more expensive retailers such as Matt Bailey, it is important to offerinteresting and unique styles that are not available anywhere else.“Complicated styles of manufacturing are popular and a lot of stylingis going on. The mechanical look is big,” says Gagliano. No matter howbig though, for high-end retailers, sales have been slowing. While theup-market retailers may be going through some tough times, there ishope for sales in the mid-range category.

Selling SecretsAt Davidson’s, Richards does not just sell watches to her femalecustomers — she gives them an experience. “We have ladies’ nightsevery now and then,” she says. “Our customers come into the store forsome appetizers and drinks and they look at our latest watches. It’sreally a fun night out with the girls.”

Not only do these evenings help endear shoppers to the store but theyalso allow Richards to get valuable feedback on her inventory. “It wasat one of our ladies’ nights when everybody first went crazy for the rosegold Esquires,” says Richards. Customers can register online to receivespecial notices for new arrivals and special events at the store, a servicethat keeps them coming back.

For Monk, decisions about what brands to carry are driven almostentirely by his competition.“The death of a watch line at my store is whenit goes to Costco,” he says.“We just stop carrying it once it’s available therebecause they can knock 25% off the price. For the independent jeweller,it’s all about the margins. Fiori offers the best margin so I make muchmore than keystone. It’s what I have to do to survive against the big guys.”

Perhaps the most important decision a retailer can make is with thenumber of watch brands that the store will carry. Do you carry manybrands and cover all tastes and styles, or do you specialize in two or three?

For Richards, the decision was easy. “We used to sell six or seven lines butwe narrowed that down to three. The watch industry is going to thefashion watch — the cheaper throwaway,” she says. “People buy three orfour of the cheap kinds, so in response, we focused on only three linesinstead. It works to our advantage because we get to know those few linesreally well, which is great for customer service.”

No matter what style of watches you sell — high end, low end or anythingin between — staying afloat in this market is doable as long as you knowyour customer base and your product lines.

The trends for 2009 seem only to be building on those established in2008. While bigger just kept getting better and opulent add-ons such asjewelled bezels and rose gold sold well, it is clear that in times of economicinstability, affordably priced luxury is always in style. [CJ]



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Appraising fancy colour diamonds.

BY DUNCAN PARKER

facevalue

Colourless and near colourless diamonds have always been themain interest of both the diamond trade and the consumer.The lack of colour in a diamond generally enhances its value.

A “D” diamond is entirely lacking in colour, and an “E” is almostentirely colourless, but a fine 1.00 carat flawless diamond of “D”colour can be as much as 50% more costly than an equivalent “E”. Theaverage consumer simply can’t tell the difference between the “D” andthe “E” colour, but the price difference is a good indicator about howimportant colour (or lack of colour) in diamonds can be.

A lack of colour still rules the diamond world, but colour holds asmall and important niche. There are all sorts of nuances of hue,tone, and intensity that contribute to visible apparent colour in adiamond. Fancy coloured diamonds can fetch top prices as therarest among rare gems, but a fancy colour doesn’t always make adiamond expensive.

The Argyle mine in Western Australia is notable for its exceptionalpink diamonds. The total volume of pink diamonds from Argyleprovides heightened viability for the mine but the lion’s-share offancy diamonds from the Argyle mine are actually brown. Thesebrown diamonds are marketed as “champagne,” in graduated colourtones referred to as “C-1” (traditionally “top light brown”), to “C-7”(fancy deep brown).

Several years ago, I was grading a brown diamond, and an elderly dealer inthe lab asked, “why are you looking at rubbish industrial diamonds?”Hewas quite serious. In the days prior to Argyle, there was a very limitedmarket for brown diamonds (even gem quality), and many were used forindustrial applications. Brown melee diamonds were rarely encounteredin jewellery until Argyle began production. Small brown diamonds arenow sold to Indian manufacturers, where low labour costs and advancedskills allow for cost effective polishing of top light brown to fancy browndiamondmelee that can retail for as little as a few hundred dollars a carat.

A 1.00 carat, round, VS clarity, brown diamond can wholesale for lessthan one thousand dollars, and up to over three thousand dollars.This is a large range, not seen among equivalent colourless diamonds,but when we move into fancy colour, there are fewer standards.Whenwe appraise anything, we base our valuation on information we findin the market. In fancy diamonds, we have to work with averages,based on as many market comparables as we can find.

Over the past few years, we have seen a substantial increase in thenumber of fancy colour diamonds passing through Harold Weinsteinlaboratory for grading, identification and appraisal. The majorityhave been yellow, but there have been almost all colours (well, not alot of red, actually). We have seen yellow, brown, orange, black, pink,blue, green, purple, gray, white (translucent), and others.

A Question of CCoolloouurr



facevalue

“Fancy coloured diamonds can fetch top prices as the rarest among rare gems,

but a fancy colour doesn’t always make a diamond expensive.”

If brown enters the description of a diamond as a main element ofcolour, it can have a profound effect on price. If a diamond is calledpinkish brown, its price is much lower than a brownish pink, andsubstantially lower than pink with no brown.

A diamond called “fancy light pink” can have value that is as littleas one third of the value of an equivalent diamond graded as “fancypink.” A diamond graded as “fancy pink” in turn, can have a valuethat is as little as one half of the value of an equivalent “fancyintense pink.” These are just examples, and each individual gemmust be considered as it is examined.

The recent surge in popularity of coloured diamonds has been longlived. It seems to have started at about the time that Jennifer Lopezreceived a big pink diamond in an engagement ring several yearsago. Though JLo has moved on from the engagement, thepopularity of coloured diamonds has remained (so far).

With the diamond market taking a hairpin turn and breakingthrough the guardrails, the price of diamonds is teetering on theedge of a precipitous plunge into the unknown depths of the ragingwaters of the spring meltdown. We’ve seen large fancy diamondsselling very well for the past few years, but in the last months,auction results have been less than exhilarating. There have beensome very important diamonds that haven’t reached their reserveprices. And auctions are an important point of reference for pricingon notable diamonds.

In the past few months, we have seen some dealers selling off theirinventories of fancy colour diamonds. Other dealers are chargingmore than ever for fancies, and often try to get grades improved toboost prices. It all comes down to the same thing: sell while you can.

We have seen large numbers of important fancy colour diamondssold in the past few years. If a remarkable red or blue diamondcomes into the market in the near future, it will command richpricing for its rarity. For other goods, however, it seems likely thatthere will be lower prices, which (thanks to less available spendingmoney) is due to reduced demand. Those who do have spare cashare aware that the optics of buying and flaunting expensive itemsare not good right now.

Appraisers have to remain up to date with pricing as the downwardpressure continues. We will be watching auctions, importantdealers, and other sources. It is quite likely that colour will slide intothe back of the safe until a happier time, and in a few years, the cyclewill start again. [CJ]


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T here is no industry immune to the effects of technology. Infact, the jewellery sector has been inundated with wave afterwave of new, improved technologies in the past few years.

These wonders range from CAD/CAM to laser welders. Though thesetools are intended to take jewellery design to the next level, manyartisans have questioned them. The most prevalent concern for a hostof designers is that these machinations debilitate the emotion andcreativity of creating beautiful, imaginative jewellery.

“Technology can help a lot,” says Dov Hillebrand, a 30-year benchjeweller veteran.“With CAD/CAM, you can create intricate designs youcould never do by hand … you can make it symmetrically perfect.”However, the master bench jeweller warns, “Using these machines canmake a piece look robotic and can take the passion out of it.”

While Mr. Hillebrand does incorporate some of this advancedequipment in his design, many of his peers have been loathe toembrace these new technologies, at least initially. More recently,however, many bench jewellers have started using the technology, a

switch that has resulted in designs that are considerably moresophisticated in both conception and execution. There are stilldetractors for these new technologies who argue that the designs aresterile and lack originality. Those who have taken a shine to it, though,argue that technology is here to stay and it will shape the future ofdesign no matter what your particular stance may be.

“The best design comes from those who started out creating their ownmolds by hand and then moved on to the computer,” Mr. Hillebrandnotes. “They have transformed themselves into CAD/CAM users, andsupport that with the skills they learned earlier on.”

Most opinions fall somewhere in between, though it is surprising tonote that earlier jewellery pieces crafted with the help of newtechnology were rather simple in their respective design, as the artisanstended to focus upon mastering the new techniques needed toincorporate the technology into their work. As they became moreversed and comfortable, though, designs started becomingmore complex.

Combining theNew with the OldTechnology is impacting the way bench jewellers createby mingling old-world skills with new technologies.

BY BRYAN SOROKA

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A New Way of ThinkingFor some bench jewellers, introducing a new technology into theirdesign work inspires them to create something they might not haveotherwise even imagined. The very possibilities can be a source ofinspiration, as new tools can often lead to design ideas. Newtechnologies can also be applied to old processes to give the artistfreedom to experiment.

Many have found that the unique qualities of the laser welder, forexample, have made their favourite approach to design more practicalas the technology allows them to change the direction of design whilethey are actually creating the piece. This particular technologicaladvancement is becoming more common, which is certainly acommentary on how bench jewellers perceive it.

Essentially, laser welding utilizes a sharply focused beam of light toproduce very high heat in a small area. This tool is allowing jewellers toaccomplish tasks that would once have been either impossible or tootime consuming. It also lets many experiment and allots themadditional creative freedom. “I had a ring that had an amethyst in it,”says Selwyn Kahn, who has been a bench jeweller for over 25 years. “Ialso had a chain that had little stones set in bezels and connecteddirectly to the chain with a green tourmaline, which I had laser weldedbecause I didn’t want to remove the stone, and the only way to fix it wasthrough laser welding.”

Hot TopicsNumerous bench jewellers are taking full advantage and using the laserwelder with new heat-treatable alloys. A great deal of these craftspeoplehave been frustrated by the challenges presented by various metals.Weaving with fine silver and 14K wire can be too “springy.”Moving onto 18K, meanwhile, is not malleable enough, while 22K and 24K can betoo much so.

In contrast, 24K heat-treatable gold can provide a solution.Other heat-treatable metals such as platinum provide both malleabilityand hardness. However, these advantages are tempered with somedrawbacks. For instance, these metals allow the designer to solder thewires down and age-harden the alloys following soldering. The wirestays much healthier, though, and hardens better if it is not completelyannealed (the process of heating and slow cooling in order to toughenand reduce brittleness) with a torch. This is where the laser weldercomes in handy.

Whatever emerging technologies arise in the future, a bench jeweller’sprimary tool remains the same. “Imagination,” Mr. Hillebrand sayswithout a doubt. “You have to have imagination and, of course,passion. A machine cannot produce this.” [CJ]

CAD/CAM shows jewellers of all generations how to craft incrediblydetailed designs like this brooch.

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The Wide Web Worldof Diamond SearchingOnline diamond searches present retailerswith a host of opportunities — and just asmany challenges.


The first Internet diamond search must have been a wondrousthing for those who experienced it. With this new tool, onecould easily find out what was available and at what price.

It represented the future of a faster and more efficient marketplace.However, what was once a helpful tool has morphed into a monsterthat has commoditized the market it used to serve, not to mentioneroding margins.

Now that we have this golem running amok, the question is howshould the industry co-opt it so that it can again serve its purpose?Sadly, the industry has not been very strategic about this thus far; bothwholesalers and retailers are either executing poorly on theWeb, or notat all. In 2009, the margin for error will be slim. When it comes to theway the industry deploys diamond searches, a reset, like the onesuggested by Jeff Immelt, may be useful.

BY ROBIN GAMBHIR

“The economic crisis does not represent a cycle; it represents a ‘reset.’ It’s an emotional, social, economic reset.People who understand that will prosper. Those who don’t will be left behind.”

- Jeff Immelt, CEO of General Electric

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OpenBlue’s simplified diamond search allows the consumer to specifyshape, carat weight, brand and budget.

While Chanel’s site displays high-end luxury, it fails to offer pricing.

Diamond searches are increasingly playing a direct or indirect role inevery sale at the retail level. There are three ways these Internet-basedsearches participate in the sale:

1. To get competitive pricing by using a third party site like BlueNile.ca;2. As a quoting system the jeweller uses to get pricing from a supplier;3. As a source of pricing from the jeweller’s site.

Bad DesignIt seems that everyone who puts diamonds on theWeb operates from thesame playbook. For some reason they think that consumers always wantto search using the 4 Cs and, in some cases, that they want every otherarcane specification that can be attributed to a diamond. This is mostlikely because diamond searches are designed by engineers who likedetailed specifications.

Another reason is that if you want a consumer to surrender theircredit card, you better give them the impression that what they arebuying is measurably better (and less expensive) than what they canpurchase in a store. As a result, even the so-called ‘leaders in the field’suffer from poor design and usability. As an example, Blue Nile’s site isquite cluttered and uses small text —making it difficult to read. And, likeAmazon’s site, it forces consumers to go through many pages of searchresults. This approach assumes that clients are or want to becomediamond experts when in fact they may simply want to know, forexample, what a 3/4 carat princess will cost before they go to the store.It also gives them the power to price shop with ease.

The OpenBlue diamond search re-thinks the problem by essentiallythrowing out that playbook. Its diamond search allows the consumer tospecify the shape and the carat weight with options for brands, budgetand to only show Canadian diamonds. That makes it simple forconsumers to use, and the addition of other ‘behind the scenes’ featuresdiscourages price shopping.

Even the car companies, whose products are much bigger ticket items, donot offer their customers the depth of specifications the diamondindustry does. On Dodge’s site for example, you get a nice, big photo andfour specifications: engine displacement, horsepower, torque and fueleconomy. Or, take a luxury product like a Chanel suit. Chanel’s site doesnot give you specifications — it does not even give you a price. So, notonly are the existing search types needlessly complex, they actuallyundermine a diamond’s luxury status and, as a result, everyone’s margins.

Flawed AssumptionsIt seems that every diamond supplier has their own password-protecteddiamond search for their retailers. Subsequently, they all sleepsoundly, confident that when a consumer is looking for a diamond, it istheir search site that the retailer will log in to. However, that is not whathappens in reality.

In the real world, a client comes into the store and at some pointduring the presentation there will be a discussion about pricing. That willprompt the retailer to go into the back, log in to his favouritedealer’s site, and get some pricing. He will return to the client with,


depending upon how good the dealer’s site is, either his card with somespecs and pricing written down or a printout from that site with hiscompany’s name at the top. The client will take the pricing home andprobably shop the prices he or she has received.

What went wrong here? The first mistake? Leaving the client alone whilethe jeweller went to get the pricing. That time away interrupts the flow ofthe presentation and gives the consumer time to formulate objections.It would take three to five minutes per dealer site for the jeweller to login and the longer the client is left unattended, the chance of closing thesale diminishes.

Next, handwritten pricing is unprofessional for a luxury product,and it exposes the jeweller to haggling. A printout makes the pricefirmer and retains the jeweller’s professionalism. Finally, handinga customer written or printed pricing assumes they are leavingwith it.

Diamond Searches on Retailers’ SitesThe decision to put a diamond search on your site is about regainingcontrol of the golem. Do you want your customers to get prices fromyour site or your competitors’? If you do not even offer the option,then you have put yourself in the position of having prices dictated toyou. However, if you have a search and set your margins realistically,then it will have the effect of serving good clients and weeding out theprice shoppers. For the OpenBlue search, there is even a half-wayposition which shows all the inventory but not the prices.


The Do’s and Don’ts of Diamond Searches

Do:• Add a search to your own site• Use it as a sales tool in your presentations• Have a laptop available as a kiosk to ensure the

customer is never left unattended

Do Not:• Leave your sales presentation to get pricing• Give the customer hand-written pricing• Give the customer pricing he or she can leave with

Advantages and Disadvantages of Generic Searches

Advantages• Easy to use separately or link to from your site• Usually available at no charge

Disadvantages• Inflexible markups preset by supplier or only allow for a

single markup for all sizes and shapes• Pre-set markups mean that your prices are the same

as every other retailer using that system• Selection only represents the inventory of the

sponsoring supplier• Make it easy for customers to price shop you



Car manufacturer sites do not offer the depth of specifications thatdiamond industry sites do.

Before the advent of diamond searches, some retailers posted listsof diamond prices in text on their site. Some still do. This approachis ineffective because the lists are often out of date and consumers,given the option, will use a search system. Another option ispublicly-accessible generic searches that some dealers offer for theirown stock. These sites do not carry the dealer’s name and can belinked to from your site.

There are U.S. companies that will plug you into what would seemlike an infinite number of stones from dealers and cutters all overthe world. Sounds great, but you don’t know these people and ifyour client chooses one of their diamonds, you better get to knowthem fast.

Finally, there is the OpenBlue model, which allows you to searchthe inventory of multiple suppliers you know and gives you theability to add or remove suppliers at any time.

Of course, the best thing to do is to use your own site as a sales tool.It trains your customers to use it themselves and it shows that theprices on it are real. Many of the retailers who are runningOpenBlue sites have found they do much better when they usetheir sites in their store; some even use their sites as kiosks.Whichever way you decide to proceed, using the Internetproperly can help take your business to new heights. Who wouldhave thought that getting caught in the Web could actually bea good thing? [CJ]

marketwatch

On sites like Amazon.com customers are forced to go through toomany pages of search results.



The Ideal MarriageWith a focus on the bridal sector and a sound buying strategy, youcan make the most of your diamond sales for the New Year.

BY MIREILLE THERIAULT

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diamondfeature

While it may be true that “sex sells,” true love is whatbrings a couple both to the altar and, subsequently, totheir jeweller. Across Canada, in this time of economic

uncertainty it may also be the best bet as far as diamond sales since,historically, for richer or poorer, couples ready to take the plunge tendnot to wait.

“The bridal sector is a significant portion of our business,” saysAnny Kazanjian, District VP of Public Relations and Events forBirks & Mayors Inc. “Despite everything that’s going on with theeconomy people are still getting married. People are still popping thequestion and buying diamond engagement rings. That side of thebusiness is still very viable and lively.”

“We’ve built our reputation as being a diamond company and it’s agreat, stable business to be in because there really isn’t a better way toexpress, ‘I love you’ than with a diamond,” says David Sternblitz, VPand Treasurer of Zales Corporation. “As a company we’ve said publiclythat over 40% of our business is in the engagement and bridalcategory. That is a very stable piece of the business and this is whatreally separates the jewellery stores from people who sell jewellery.Typically what people have done for decades and decades is go to ajewellery store when they want to get an engagement ring. They don’tgo so much to a department store or one of the other merchants oreven online for that matter.”

The same can’t be said for where customers go for their informationbefore setting foot in a store. The euphoria of romance may set headsspinning, though it does not mean that they are immune to therealities of a budget. Whether the individual customer actually hasmore or less to spend on the purchase, the emphasis is on value likenever before. Romance matters — but it has a price.

“Everyone is Internet-friendly now and everybody knows what goeson in price ranges. Customers will look abroad so the key is to offertrue value to Canadian shoppers. If you do, the industry is going to beextremely strong,” says David Chan, owner ofW K Chan Jewellers Ltd.in Winnipeg. “There’s no question of that in Manitoba,” he adds.

With Peoples and Mappins stores spanning coast to coast, Sternblitzcouldn’t agree more. “While the customer wants value they also verymuch want quality and that’s probably the overriding factor. Theywon’t trade down to inferior quality and will still pay for better qualitymerchandise.We see that Canada is very much a nationalistic country.I wouldn’t say as much that Canadians are looking for conflict-free asmuch as saying that they love Canadian product and that certainlyapplies to buying Canadian diamonds. Plus what’s coming out of theground in Canada is very high quality.”



“We started promoting Canadian diamonds many years ago and havebuilt a solid reputation on providing diamonds that are notonly mined, but also cut, polished and finished in Canada,” says Chan.“That said, we know the majority of all diamonds are conflict-free asfar as the industry is concerned but are consumers actually concernedabout it? I can only assume they are, so the vast majority of thediamonds we do sell at all the W K Chan stores in diamondengagement rings and solitaires are Canadian diamonds.”

Whether large or medium chains or even as an independent familybusiness like Bijouterie Richard Richer in Montreal, being able to offerCanadian diamonds is definitely a plus. However, as Owner LindaRicher observes, “Even though not a lot of our clientele, maybe 15%,are specifically asking for certified conflict-free diamonds, knowingwhere it comes from and that it can be traced at any time because of itsregistration number is a nice selling point.”

While customers have more resources than ever to comparison shop,this can also present a wonderful opportunity for retailers to rise to thechallenge of customer education as the finer points of picking thefinest diamond for the dollar truly comes to the forefront. Yet beforeyou can pass on that value to your customer, it means carrying theright stock and that comes down to matching the expectations of theconsumer on many levels. Certainly, knowing your customers is keywhen trying to second guess what is going to appeal to them in yourshowcase, both in style and price points.

“You need to buy well to sell well no matter what strategy a specificjeweller has,” Chan says. “Consumers are very fickle. They waffle aboutprice all the time. You are, in effect, shopping for your customer and so itcomes back to you to find the best value. If you buy well, you’ll sell well.”

As far as knowing your customers, Chan says, they certainly stockstores differently among their six locations around Winnipeg. InBrandon, however, the majority of bridal jewellery features traditionalwhite diamonds. “We do sell coloured diamonds and do well withthem. But for the most part, they are something that customers are justcurious about,” he adds.

Richer echoes that her Montreal clientele is very traditional, even whenit comes to cuts. “We see a lot of rounds and maybe a few princesses,but rarely do we get a demand for an emerald cut or a pear shape,” shesays. To satisfy the customer looking for the unique, Richer turns todesigners such as Tacori and Simon G.

Kazanjian says that the same applies to Birks &Mayors.“The Birks blueis the most highly recognized diamond brand although we have awhole line called Botswana Diamonds over and above the AmoriqueDiamonds.” As far as trends, Kazanjian enthuses on the growingpopularity of pink gold emerging as a key trend in the bridal sector.“We have a beautiful Amorique ring we’ll be launching this Februaryin 18-carat pink gold with an intense pavé of pink diamonds and a onecarat-plus white diamond in the setting.”



diamondfeature

Sternblitz says that as far as buying strategies are concerned, “Wedo tailor some specific merchandise in Mappins towards a slightlyhigher-end customer but there are a lot of synergies from runningmultiple brands. We try to run the brands efficiently but tailorindividual differences where possible by location as well as bybrand.”Up to a point, he says customers are blind to the majorityof specific brands they carry. “They see us as the brand. We willand are looking at adding some proprietary brands, but for themost part it really is Peoples or Mappins that is the brand theymost recognize.”

“I can tell you at a high level, sort of as a starting point, one of thefocuses not only in Canada but in the entire Company, is a focuson bringing more clarity to the merchandise statement,” saysSternblitz. “To do that, we are removing some of the clutter, notonly in the merchandise cases but in the whole customerexperience in terms of signage you would see in our stores. In thelast nine months or so, we have been clearing some merchandiseas part of this strategy. We have been narrowing downthe assortment.” [CJ]

“You are, in effect,shopping for yourcustomer and so itcomes back to you tofind the best value. If youbuy well, you’ll sell well.”



BY BRYAN SOROKA

As one of the most recognized bracelet and charm brands in the industry,Pandora is going strong even amidst uncertain economic times.

Pandora, a globally recognized brand of fine jewellery, is available in 18countries around the world. This is quite an achievement, especiallywhen you consider that it was just over 25 years ago that the Company

was a two-man business. Since then, its members have grown to a team of 35located at its head office in Copenhagen, with another 100 members servicingNorth America and 1,000 additional employees working out of PandoraProductions, its factory in Thailand.

The Company has enjoyed a steady rate of growth since establishing itself, andaccording to Glenn Reinecke, Vice President, Pandora Canada, this success hashinged on numerous factors. “We’re definitely a leader in what we do,” he saysin regards to Pandora’s bracelet and charm concept. “I think excellent product,good positioning in the market … we have tremendous exposure and verybroad-based advertising in North America. It’s a winning formula.”

Growth PatternsThere is no arguing the fact that Pandora has continued to achieve throughoutits history, though this level of success was not quite so noticeable until some10 years ago when the Company originated its bracelet concept. “It really tookoff,” Mr. Reinecke notes. Further to this, he comments that Pandora’s growthsince the 1980s has been nothing short of astounding. “We’re represented insome 20 countries around the world today.” The Company recently wentthrough a significant change in March 2008, when the Danish equity company,Axel, bought part of the Company. Today, Pandora is owned in part by theoriginal owners and by Axel.

A Charming Outlook

Glenn Reinecke, Vice President, Pandora Canada.

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companyprofile

“... we have tremendous exposure and very broad-based

advertising in North America. It’s a winning formula.”

Product Line-upPandora creates a broad spectrum of lines devoted to numerouscategories, including charms, bracelets, chains, rings, earrings,brooches, toe rings and the recently launched Mix & Match line.“Basically, the line includes earrings that have a post that you canattach various dangles to,” Mr. Reinecke explains. “It’s proven to be atremendous success in the global market.”

As to who can be found wearing Pandora jewellery, Mr. Reinecke saysthe demographic is quite broad — women aged 17 to 70. “You’regetting very good jewellery at affordable prices,” he says. He adds thatthe materials used in Pandora jewellery are also varied, as are theprice points. “You’re starting off with a silver bead for $30 andmoving up to a gold bead for $400 and anything else in between.”Core consumers are described as women, age 35 to 55. “These arewomen who shop in stores where Pandora products are available …jewellery stores and high-end gift shops throughout Canada.”

A cornerstone to Pandora’s success is how its products strike a chordwith such a wide spectrum of consumers, which is somethingretailers have also certainly benefited from. “Because you have thisbroad market, our retailer customers are experiencing a lot of repeatbusiness,” he states. “You’re bringing in a whole new market that youpreviously didn’t have access to.”

Mr. Reinecke says that, typically, retailers who sell Pandoramerchandise turn product over 10 to 11 times per year, whichis exceptional. “Traditionally, [retailers] only turn over productsonce or twice a year,” he says. Pandora designers continue to createpieces of matching jewellery, which complement existing charmsand bracelets “to create a well-rounded line,” adds Mr. Reinecke.“We’re doing this to basically create a line that’s going to have a longshelf life.”

Pandora’s Danish line of 14K gold and sterling sliver jewellery includesa unique collection of charm bracelets, matching jewellery and earringsthat lets you create a look to match your mood.



Unique by DesignAs noted by the Canadian VP, stones are not the focal point of Pandorajewellery, but rather it is the unique design that attracts most people.“Wedo feature rubies, diamonds and semi-precious stones,” he notes, “butwhat really draws attention is the unique designs themselves.” Insofar asprecious metals are concerned, Pandora crafts its jewellery from sterlingsilver, 14K gold, and the Company also carries a two-tone gold and silverline.“We’re in the process of launching an 18K line,”Mr.Reinecke reveals.The line, called Love Pods, is based on an organic theme and will includecollectable rings, earrings and necklaces.“It’s aimed at a high income coreof our market,” he says.

Love Pods has been developed by a duo of designers who have beenspecifically employed by Pandora to create this line. “Our core productsare designed by [Pandora’s] original designers,”Mr. Reinecke points out.This pair of jewellery artisans,whowork out of Denmark, have beenwiththe Company since day one. Other key Canadian personnel include Mr.Reinecke and a middle management team, who report to Pandora’s U.S.office in Columbia, Maryland.

A common thread weaving throughout all Pandora creations is“uniqueness and quality of design.” This statement is certainlyconfirmed by the number of consumers that keep coming back formore. “Our best salespeople are those that own our jewellery,” Mr.Reinecke says. “The enthusiasm and excitement [Pandora jewellery]generates … I’ve never seen anything like it before.” The VicePresident also says that once a family member buys a Pandora piece,it extends to all members of the clan. “It’s an easy and convenientgift because it celebrates special moments,” he explains.

Retailer SupportPandora supports its retailers with several ongoing programs,which include a host of in-store signage. “We supply retailers withall point of sale materials … a lot of time and effort is spent on thevisual directives of what we’re selling.” Pandora further helpsits retailers via an extensive advertising co-op program to assistwith promotions. A packaging co-op, meanwhile, ensures retailersreceive a refund for whatever packaging they purchase fromthe Company.

Mix and Match earringsconsist of a number of hoopsin sterling silver and 14Kgold, with no less than 74different charms.



companyprofile

“... it’s a pretty volatile business,

but to date, we haven’t felt any

downturn.”

“Throughout North America, we have vast [advertising] coverage inthe more popular magazines,” he points out. “We also havemerchandisers that assist customers with their merchandisingrequirements, and sales reps that assist wherever necessary togetherwith a competent core of customer representatives. It’s a well-rounded team.”

The Company also makes sure to share its success with those lessfortunate by donating to various charities. “We have an ongoingrelationship with the Canadian Breast Cancer Association through apartnership with Susan G. Komen,” he says. “And we have created aspecial charm for the International One World Health, a nonprofitpharmaceutical company, where a portion of every bead sold goesto providing affordable vaccines to children in developing countries.So far, we have been able to contribute over $165,000 to One WorldHealth in 2008.”

Moving AheadPandora’s plans going into the New Year are to increase its exposurein the eastern corridor — from the Niagara region to Quebec. “Also,we want to possibly partner with someone for our Shop-in-Shopconcept, which is a Pandora store within a store,” says Mr. Reinecke.“It’s similar with what you see at Holt Renfrew.” For this particularinitiative, Mr. Reinecke says that the Company will select partnersthat share Pandora’s values, and if the right ones do come up, theplans will move ahead.

When it comes to the state of the current jewellery market, Mr.Reinecke says “it’s a pretty volatile business, but to date, we haven’tfelt any downturn.” He adds that this might not be the case as theyear progresses, however, for the time being, the Company has notseen a slow down in sales whatsoever. In terms of where Pandorafinds itself in the marketplace, Mr. Reinecke states, “We still have alot of ground to cover in Canada.”Which is certainly good news, forboth Pandora and its retailer partners. [CJ]

Handcrafted charm bracelets and rings in 14K goldand sterling silver with available semi-precious gems— many pieces can be personalized to reflect one’spersonal style.



Judy Richards, Owner of Davidson’s Jewellers.

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BY BRYAN SOROKA

PHOTOGRAPHY BY JÉRÔME X. SCULLINO

With a devout focus on quality lines and highly personalizedservice, Davidson’s Jewellers has remained one of Ottawa’sleading retailers for nearly 70 years.

An IllustriousLegacyT o discover Davidson’s Jewellers’ origins, you have to go all the way

back to the Great Depression, where a young man named EastmanDavidson was pondering his future. Born in our nation’s capital, the

hopeful young man moved with his family to Detroit, Michigan, where heattended high school. Half days were filled with academic studies and theremaining hours were spent learning a trade. His choice was jewellerymaking. When the family returned to Ottawa, he secured employment witha downtown jeweller, where he honed his watch making skills.


coverstory


Not long after, the entrepreneurial Mr. Davidson transformed theliving room of his family home into a workshop, and opened his ownwatch repair business by taking jobs from the trade. Then, in 1939,with $200 in his pocket and a line of credit from the Bulova WatchCompany and Wm. Smith & Son, a flatware and hollowwaremanufacturer, he opened his own store in the Glebe, a new subdivisionon the south side of downtown Ottawa.

Originally calledDavidson’s Glebe Jewellers, Judy Richards began workingfor her father when she was 10 years old. “In those days, we sold a lot ofgiftware. I used to come in after school and on Saturdays and I’d maketwo cents for every folding box I put together,” Ms. Richards says. “Fiveboxes were just enough to buy a chocolate bar,” she jokes. In 1972, Ms.Richards started working in the store full-time after earning a graduatejeweller’s degree from the Canadian Jewellers Institute. “I followed thatwith a certificate in jewellery design and took some GIA diamond andcoloured stone courses.”

In the Right PlaceToday, Davidson’s operates out of a beautiful 1,500 square-foot store,which is located at Bank Street and 3rd Avenue, a mere two doors awayfromwhereMr.Davidson opened the first store.“Wemoved to the current

location when it became available in 1964,” Ms. Richards comments.“It’s a wonderful corner allowing us four additional show windows onthe side street.”

According to Ms. Richards, Davidson’s is one of the top jewelleryretailers in the Ottawa region — success that, ironically, can be partlyattributed to the store’s location. “It was an affluent area in the 30s and40s,” she notes. “A few people in the industry thought [my father] wascrazy to go out into the suburbs to start a business.” The decisionworked — 70 years later, the Glebe is a trendy shopping area with manyupscale boutiques — and Mr. Davidson’s loyal clientele has left hisdaughter an impressive legacy. “I’m now seeing many third generationcustomers,” she says proudly.

Behaviour PatternsSo how have things changed since Davidson’s first opened its doors forbusiness? “When we first opened,” says Ms. Richards, “a very dignifiedclient said, ‘I have my doctor, my lawyer, my accountant and you’regoing to be my jeweller.’ In general, people don’t have that kind ofloyalty to their jewellers quite so much anymore, though we have beenfortunate enough to maintain a loyal and longstanding clientele. Eventoday, most of our clients come to us through referral.”



Today the Davidson’s Jewellers customer is typically a self-purchasing affluent female, aged 35-55, followed by well-established families. She notes that her store does not necessarilyget the first round engagement ring buyer, a consumer who shefeels tends to gravitate towards the mall. “I think people are reallyinto their 30’s before they feel comfortable enough to enter a lockedsecurity system store such as ours,” she says. “Mind you, onceinside, many are pleasantly surprised by the welcomingenvironment and the friendly staff.”

Ms. Richards is now doing business with a more informed clientele,although this heightened awareness is not always positive. “When itcomes to the cut of diamonds,” she says, “a lot of people get caught upin the technical aspects and forget to experience the beauty of the stone.”

According to Ms. Richards, what keeps her customers coming backis the confidence they have in the retailer. “We’ve maintained thefamily values and we’re not high pressure,” she explains. “Myphilosophy is to teach, allowing the customer to make an informeddecision, which he or she can be comfortable with.”

Categorically SpeakingDavidson’s Jewellers offers a variety of grades of diamonds. Thisexpansive collection is intended to cater to an equally diverse arrayof consumers. “There are customers that want the biggest show fortheir money and others who want the best diamond they canafford. We walk them through all of the options and let the clientmake an informed decision,” Ms. Richards says. Rounding out theretailer’s product offering is bridal, diamond jewellery, Simon G.,Faberge, gold, pearls, watches and high fashion sterling silver.

Davidson’s focus has changed over the years. “Recently, we’ve beenusing more American lines because our dollar was so high. Now, it’sswinging back the other way, so we’ll have to reevaluate,” Ms.Richards explains. “Our most successful line is Simon G. I metSimon and his wife at the Centurion show in Tucson [a privatebuying show] and fell in love with them as well as their product. Istarted importing Simon G. jewellery into Canada approximatelyfour years ago.”

“Exotica by Herra” featuresvarious colours of quartzaccented with diamonds.Available at Davidson’sJewellers.


coverstory

“My philosophy is to teach, allowing

the customer to make an informed

decision, which he or she can be

comfortable with.”


The retailer also carries Master Design from Toronto. “Their newExotica line is exciting and doing very well,” Ms. Richards notes. “Wealso carry Flica & Begli, from a Montreal firm with a range of gold anddiamond jewellery. We sell a lot of Corona— especially its Canadiandiamond jewellery set in Canadian gold.” In fact, at Davidson’s,Canadian diamonds reign supreme.

Vianna from Brazil, which features larger native gemstones, is also astrong seller. “Women love these designs, but the best performingcategories are still diamond pendants and earrings.” Ms. Richards alsodoes a fair amount of pearl business and while they carry some brandsof watches, these products do not represent her strongest selling areas.

To support its lineup of products, Davidson’s provides its customerswith a full line of services. These include jewellery and watch repair,appraisals, re-styling, gold recycling, custom design, hand engravingand pearl restringing. They also host custom design events. “Myerson’sfrom Toronto sends a designer once or twice a year for a clinic,” saysMs. Richards, who is a designer herself. “Each customer gets anappointment to work directly with a designer. Generally, clients bringolder pieces to transform them into something new.”

People Make the DifferenceAs customer service is a cornerstone of the retailer’s success, Davidson’sinvests heavily in its staff. Currently, the store is operated with sevenpeople, including Ms. Richards. “We have a store manager, agemologist/appraiser, four sales associates and someone who handlesinventory, shipping and receiving.” As to what she looks for in anemployee? “Common sense,” Ms. Richards replies quickly. “You canteach product knowledge and gemology but you can’t teach commonsense. Associates also need to have a sense of warmth and empathytowards clients.”

Ms. Richards is proud to say that her staff and clients have developedclose-knit relationships. “Aside from being asked to attend parties anddinners, one of my staff was actually asked to be a maid of honour forone of our clients,” she says. “I continually receive wonderfulcompliments on my staff.”

To ensure all staff members are experts in their related fields, Davidson’semployees aremembers of theAmericanGem Society. “Two are registeredjewellers and our gemologist is working towards his AGS designation tobecome a CGA [certified gemologist appraiser],” says Ms. Richards.Members of the team also attend industry functions, including the AGSConclave, a four-day educational event, held every year at variouslocations throughout North America.

Selective CommunicationWhen it comes to communicating with customers, Davidson’s followsits core business model by taking a more personal approach. “Weconcentrate on ‘in-store’ events and direct mail, via post or email, tokeep in touch with our clients and encourage referrals,” Ms. Richardssays. “We do some radio and newspaper advertising, but I basicallylook at all of that as institutional advertising… just keeping your nameout there.”Davidson’s also sponsors numerous charity projects, such asgolf tournaments, silent auctions and, with the help of CathyMcMurray of Basal Diamonds, once offered a trip to Yellowknife andthe Ekati DiamondMine to raise funds for Canadian Olympic athletes.

Furthering its intimate marketing approach, the retailer holds variousin-store events including a Gemstone Roundtable Evening. “We qualifyabout a dozen or so people and seat guests at a long, thin tablepositioned down the centre of our store.” Ms. Richards details. “Weserve canapés and wine from six ‘til eight, while our gemstone cutterreveals the beauty of about 100 stones he’s recently cut.”



Ms. Richards admits that her store, just like most others, has certainly been affectedby Canada’s economic climate — customers are still shopping, though they arenot comfortable spending quite the same amount as in previous years. “Ithink 2009 will be a year of retail challenges and internal changes,” shestates. During the slowdown, Davidson’s plans to analyze costs andexpenditures as well as streamline merchandise by carefully watchingprice points and replacing fast sellers. “You can’t afford to beoverstocked in these economic times. If people are not in spendingmode, there’s notmuch you can do,”she says.During the next threemonths, sales associates will focus on selling repairs and servicessuch as appraisals, as well as remounting clients’ existing jewellery.

Looking towards the future, Ms. Richards is confident that theluxury jewellery market will always be strong. “People still havebirthdays and anniversaries every year… happy times to celebrate,and will always look for something commemorative.” With thatbeing said, she firmly believes that fine jewellers will be able tosustain themselves, especially those offering full service. “Thechain and mall jewellery stores might experience adownturn,” Ms. Richards concludes, “but the truly‘professional’ jeweller will survive this rough patch andlook forward to the future.” [CJ]

While guests enjoy their food and wine, the stones are passedaround for closer inspection. “We make a bit of a game of it.For example if a guest sees something they want to see again,they say ‘first dibs on number 23.’ If anyone else wants to see it,they say ‘second dibs.’” Staff members take note of the clients’interests and by evening’s end, guests often purchase more than oneunique gemstone.

Changing with the TimesWhen it comes to the retailer’s overall business, Ms. Richards points out thatthroughout the years Davidson’s has gone more upscale. “In the mid-80s,everyone got in on the gold chain business, with many selling by the gram. It’sthen that I decided we had to either mass merchandise or revamp ourprofessional jeweller image. Since that’s what we’ve always been successfulwith, that’s what we did.” Ms. Richards adds that over the past 10 years,the industry has been inundated with branded merchandise, andalthough she carries some well-known lines, in her opinion, hermost valuable brand is Davidson’s.

Right along with the industry, consumers’ needs have changed aswell. “People are pressed for time and want everything to happenyesterday,” she notes. Thus, her strategy is to relax the client andromance the product. “Buyers need to experience the intricate design,exceptional workmanship and [the] process involved in creating amagnificent piece of jewellery.”Ms.Richards understands that the Internetgives everyone easy access to photos, however, she believes people still wantto touch and feel fine jewellery, which gives brick and mortar retailers the edge.

“Faberge” limited edition 18Kfrench enamel set with internallyflawless diamonds. Available atDavidson’s Jewellers.


coverstory


Mix n’ MatchDiversify your merchandise to meet customer needs.


Stockbrokers advise it, gym trainers encourage it, and forests cannotlive without it. Diversity. When it comes to your jewellery store,diversifying your merchandise, like any smart retail strategy, can

help you thrive in the face of tough competition or a rough economy. Ifsales have slowed due to a chain-store newcomer, a seasonal slump, theeconomic downturn or your store’s own poor merchandise management,adding a new product category can boost your bottom line.

If business is already booming, diversifying can give you the growthspurt to expand. Just think how much better you can compete whenyou give your customers more reasons to shop in your jewellery store.After all, when you diversify your merchandise, customers appreciatethe fact that you provide a varied inventory selection and that yourproduct selection works together as a whole. It’s a formula that willkeep them loyal for years to come.

Mixing the Right MatchSo what to carry? That depends on several considerations. Let’sbegin with your customers. Ask them about their jewellery interestsand what new products they would like to see at your store.Secondly, you should consider your competition. Take note whatother jewellery stores sell, and consider what you could carry thatthey do not.

Also, why not turn to friends, family members, staff and vendorsto help you select the most successful products? You might besurprised by their knowledge. Your current offerings should berevisited as well. Consider what you already sell, and choosecomparable or complementary merchandise. Finally, keep in mindyour level of product knowledge, budget and space, and what youcan reasonably accomplish.

BY CLAIRE SYKES

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merchandisefeature


Diversifying your merchandise does not mean trying to answer to everyoneout there. Instead, keep in mind your store’s focus and your customers’needs. For example, people who buy jewellery may also enjoy silk scarvesand leather belts. But by carrying these, you risk confusing your clientele.

Therefore, if you sell gold watches and diamond pendants, stock more ofthem in a higher or lower price point, or add a new brand of them (withoutshifting your store image). Introduce an entirely new category, as long as itis related to your specialty or customers’ preferences. For instance, if you areknown for sterling silver jewellery, include silver desk clocks and pen sets inthe mix.

Shoot for the optimum amount of new product. Too much and you risk alarger financial loss if it does not work out. Too little and your customers maywonder how serious you are, which could influence their decision to buy.

Face the ChallengesAdding new product could shake up your customers’ perceptions of yourstore’s identity — unless you do it right. Maintain enough of your regularmerchandise while developing new categories. Take a small dip, and test itout. Then, risk a bigger plunge, and give yourself a six-month trial window.

Inside your jewellery store, give the new category sufficient representation.Display it prominently and with confidence, so it does not look like anafterthought. The best place is at the front and to the right of your storeentrance, where shoppers cannot miss it. Cross-merchandise with otherrelated products, in attractive realistic vignettes, to inspire add-on sales. Donot forget signage. Monitor sales of the new category and determine if theproduct is generating enough revenues to continue carrying it.

Like everything else about your business, diversifying your product mix isan ongoing process. It is also a bit of a gamble. However, if you do yourresearch, prepare your staff, and make room for that new product in yourbudget and your store, your customers will enjoy the rewards that comewith the risks — and you will revel in the successful results. [CJ]

10 Questions to Ask Yourself Before Diversifying

1. How do I define my store? Look at what you selland how you view your business. Do you like whatyou see?

2. How do customers perceive my store? Ask themwhat they see, and compare their views with yours.If the two are similar, your perceptions are accurate.

3. Why do I want to diversify? Consider yourbusiness goals. Does incorporating new products orcategories fit with where you want to go?

4. How is my current product mix doing? Note theaverage transaction amount, sales per category andsales per square foot. Are you pleased?

5. How frequently do shoppers visit? Considerexisting and new customers in this tally. Could youuse more store traffic?

6. Do I have the space? If not, adding new productmay mean it replaces a current offering or you needto lease more space. Can you afford either?

7. Do I have the budget? Can you realistically allotadditional dollars to a new category? Is it wise to dipinto savings or get a loan?

8. Do I have the product knowledge for thiscategory? You may not, but you could alwayslearn, with the help of your vendors.

9. Am I prepared to train my staff? They will need tobe educated about any new product so they cansell it effectively.

10. Am I willing to take the time? You will needtime to do product research, train staff, market,promote, and develop relationships withnew vendors.

“... diversifying your merchandise, like any smart retail strategy, can

help you thrive in the face of tough competition or a rough economy.”

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Shaw Conference Centre - Halls BCAugust 12-14, 2009

Western Canadian Jewellery Expo

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ENTRANCE

8' 8' 8' 10' 10' 10' 10' 9'-6"

801A

After 30 years, the Edmonton-based Western Canadian Jewellery Expo (WCJE) is moving downtown to the Shaw, one of Canada’s premier conference facilities.

This year’s show will be held August 12th to 14th, 2009 and the exciting new venue will host some new events including the first annual Canadian Rockies Design Awards. You can also take in the fourth annual Learn More – Earn More seminar series featuring Nick Failla of Premier Innovations. Finally, DiGem’s second annual Evening of Digem Decadence will be larger and even more exciting. All jewellers and exhibitors are invited to purchase tickets for this dinner and dessert auction benefiting the Canadian Cancer Foundation.

For more information on these and other show details, please visit www.wcjexpo.com.

The Western CanadianJewellery Expo moves to the Shaw


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Re-examining YourBuying StrategiesWhy less is often more in difficult economic times.

BY ANITA WEBSTER

In early 2009, the phrase “tighten the reigns” tended to dominate inconversations about buying strategies with Canadian jewelleryretailers. In the current economic clime, industries across the

country are holding their collective breath to see what will transpire. Asthey do, many jewellery buyers are adjusting their strategies to steerthrough it — though these adjustments, for the most part, are gradual.

Mo Charania, Owner of Ottawa’s Jubilee Fine Jewellers and a past-President of the Canadian Jewellers Association (CJA), says hisapproach to buying centres around choosing wisely and sparingly. “I’vemade some changes to my approach, but they are subtle and informedchanges,” he says. “I am not doing anything drastic.”

Of course, the purchasing strategy you develop depends on manyfactors. “When times are good you can carry too much inventory,” saysCharania, “but now I try to have just what I need. I have slimmeddown my inventory in terms of dollar value and am focusing on lowerprice point items that turn faster.”

Charania describes Jubilee as an upscale jewellery store. In businesssince 1952, the four Ottawa locations cater to its clients with suchnotable brands as Chopard, Bulgari and Mikimoto. “We cater to thecarriage trade,” he elaborates. “To our customers, branded productsare very important and, as many of the major brands are not availablein Canada, we deal with suppliers all over the world.”

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buyingfeature

Though his inventory is reduced, there are some items Charania willalways have on hand. “I will keep some must-have articles such asdiamond earrings in popular sizes. Buying diamond studs is often aspur of the moment, emotional purchase. If a customer wants themand we don’t have them, they’ll just go somewhere else. So I make sureI have one, two, four thousand-dollar diamond studs in stock. Maybenot $50,000 dollar pairs, though.”

Kim Brinkhaus of Brinkhaus Jewellers lets her experience and instinctguide her when buying for the Calgary and Vancouver stores she runswith her husband, Norbert. “After doing this for 25 years, much ofwhat I choose is by instinct,” she says. Asked if this is changing as theeconomy shrinks, she says it has and, in turn, she has become morecautious. “We have tightened the reigns over the last year or so. We areworking hard at managing our inventory, and I’d say I’m not taking asmany risks or buying something just because I love it. I’m being morecautious and calculating.”

Kim and Norbert Brinkhaus do most of their buying out of thecountry. She buys the jewellery and he purchases watches andgemstones. They attend four trade shows a year — two in Geneva, onein Las Vegas and one in Tucson. They deal primarily with Europeandesigners, mostly from Germany and Italy. “We have relationships withpeople we have worked with for a long, long time so when we travel toa trade show we see these people,” Kim says. “But I always leave a dayfor something new.”

Kim Brinkhaus draws a parallel — in business terms — to theeconomic climate in the early 80s and to the events of September 11,2001. “Of course the events were very different [from this situation]but all were dramatic and traumatic and had an effect on business andpeople’s lives. What we found then, and I expect this time, is that lifemoves on … people still celebrate and look for something of value. Intimes like this they will buy what lasts rather than spend wildly.”

As a result, she aims to keep Brinkhaus’ inventory “smart and saleable.”Other changes she has seen revolve around business practices. “Someof our suppliers have asked if they can give us merchandise on memo[consignment] so we could take more inventory. But we don’t dobusiness that way.”

Last year Brinkhaus Jewellers became a subsidiary of Birks & Mayors.The Calgary and Vancouver stores are run independently of theparent company. The buyers at the retailer Peoples/Mappins Jewellers,part of Zale Corporation in the U.S., have also made the shift toreducing inventory. At the same time they have streamlined theirbuying practices.

VP and Treasurer for Zale Corporation, David Sternblitz, says thischange of approach was already underway when the economicdownturn hit. The two dovetailed nicely. “With our buying practicesfor jewellery, we’ve been going more direct,” he says. “We’re makingimprovements to our supply chain, leveraging more of the expertise wehave to create sourcing groups.” He goes on to say that they havestarted working with vendors, sourcing more directly and eliminatingthe middleman. As a result, he feels they are getting better prices andcontrolling the quality better.

Tanya Parrish, Senior Director of Marketing at Peoples/Mappins, saysthe system was becoming cumbersome. “Over the years we had atendency to find one item, one vendor and one buyer. Then we lookedup and saw we were doing business with an awful lot of vendors. Itreally complicated our system.” She says in Canada the stores had over100 vendors for one or two SKUs in a year. Reducing the number ofSKUs in the stores has “pulled the clutter out and made themerchandise assortment stronger,” she adds. “We felt we were over-sorted. Now we have more clarity.”

Sternblitz says the Company, which has 65 Mappins and 149 Peoplesstores in Canada, has reduced its vendor-base by two-thirds over the pastyear. This has made them more important and better known to eachvendor and improved the relationship in general. “Tightening ourvendor base in Canada has meant each vendor is significant and hasa reason to exist in our group and we know they understand howCanadian consumers buy. They truly become partners in doing businesswith us and help us maintain the standards we are looking for.”

Mo Charania has these words of advice to the industry: “In times likethese we can ill-afford to lose customers,” he says. “I hope to see thesetimes as a lesson going forward for all of us. We need to be morecareful with our buying. This is a good opportunity to changeour practices.” [CJ]


Businessfrom the Heart

Donating your time and money to charitable organizations is a feel-goodproposition, and better still, can have a positive impact on your bottom line.

BY MARIE POWELL

There are a multitude of Canadian jewellery retailers thatsupport local charities and organizations. The reasons arevaried: to give back to the community and to feel a sense of

personal satisfaction are but a few.Whatever the reasons, aligning yourbusiness with a charitable organization is a win-win situation.

One retailer who engages in regular charitable efforts is Ryan Eberts,Co-owner of Regina’s Fire and Ice Custom Jewellery and Repair. He sayshis business chooses children’s charities, like the burn fund orpediatrics at local hospitals. “It’s more for personal satisfaction,” heexplains. “For me, it seems like it’s the best cause — help them whenthey’re young.”

Above and beyond helping those in need, supporting charities can alsobecome part of a solid business plan or strategy. “The key is to be ableto specifically tie in to a particular charity as a way to enhance yourbusiness’ image,” says Andrew Pyle, Wealth Advisor with ScotiaMcLeod.Pyle advises businesses to choose a charity that will help strengthen tiesto the local community, since it is also their main marketplace. Thecharity should also be consistent with the business brand or image.

“It becomes more of an image-building enterprise, and it’s a delicateenterprise because it has to be seen as genuine and real,” Pyle says. “Andit doesn’t have to stop at writing a cheque.”

There are three ways to show support, and financial contributionsrepresent only one of them. The second involves volunteer hours.“Having the employees or owner volunteering their time can be almostas big of a brand-building enterprise as a charitable donation,”Pyle says. A third possibility is merchandise in kind, Pyle suggests.The charity may then auction off that merchandise to raise funds.

From a more practical business perspective, donations may also be atax deduction for incorporated businesses, says Larry Baran, CMA. Formerchandise donations, incorporated businesses must treat the fairmarket value of the donation as income, and then deduct it as adonation. Proprietorships or non-incorporated businesses must treatit as income, and deduct a tax credit from their personal income taxes.“It gets a little confusing for businesses with respect to donating items,”Baran adds. “All I can suggest is that they consult with their accountantbefore they do it, not after.”




charityfeature

Business owners or managers should align their business with acharity consistent with their own philosophies, Pyle adds. Manychoose a charity for personal reasons, such as a family connection,for example.

Gina and Tony Siwic, Owners/Managers of Regina’s Jewellery FactoryInc., donate funds, volunteer hours, and merchandise for raffles tosupport a variety of charities. Their main charitable activities relate totheir Polish heritage. For example, they support the local Polish dancegroup where their two daughters danced while growing up, and theirlocal Polish church and social clubs. They volunteer at events likeMosaic, a local heritage celebration each June, and donatemerchandise for local functions.

Other advantages of giving locally, Pyle says, include increasing thebusiness presence in local media, raising the business image or profilewith organizers and participants during the event, and helping tobuild their reputation within the local community.

For Peter Norton from Nortons Jewellers Ltd. in Charlottetown, P.E.I.,donating his efforts stems from a more personal place. “It’s great to beinvolved and give back to the community that you deal in,” he says.“These are not only our customers but they’re our friends andacquaintances.”

Nortons is the main sponsor of the Razzle Dazzle Red annualValentine’s formal dance for the local Heart and Stroke Foundationchapter. He donates merchandise for silent auction, from suppliergiftware to a set of diamond earrings. Now in its fifth year, the target is$60,000 from auction proceeds and tickets to help reach the five-yeargoal of $250,000. He also participates in several charitable initiatives,including Christmas Angel ornament sales, with proceeds going to thelocal hospital.

The local press responds favourably, however, Norton does not even tryto track the potential advantage to his business.“At the end of the day youwant to feel good about what you did, and what you could do,” he says.

Giving back to the community also motivates the recent decision ofthe Canadian Jewellers Association (CJA) to champion juvenilediabetes. Ken Mulhall, CJA President and Chief Executive Officer,says CJA surveyed members about the idea of a national charity,and chose the Juvenile Diabetes Research Foundation (JDRF).

Members can contribute via separate cheque with their 2009membership renewal and at the end of 2009, CJA will match membercontributions to a maximum of $10,000. JDRF will then allocate thedonations back to members’ local chapters across the country,Mulhall adds.

“We encourage retailers to give at that local level,” he says. “We believethis national program will complement their own [regional giving]programs.” Mulhall says an increased local business profile will besomething that happens naturally thanks to community involvement.“Our members care, and want to reach out to the community and giveback,” Mulhall says. “It shows that beyond the bottom line of makingmoney, there’s a heart.”

Birks & Mayors Inc. encourages its retail stores to support local eventsand charities. “It’s our socially responsible way of thinking,” says AnnyKazanjian, Divisional Vice President of Public Relations and Events.“We’re a world-class brand with a heart.” As a corporation, Birks &Mayors was one of the first in the sector to endorse the Boreal ForestConservation Framework. It supports many charities includingHope and Cope Foundation in Montreal, children’s hospitals and thearts. “We are a brand that wants to go out and support the initiatives inthe communities that we operate in because the communities supportour business,”Kazanjian says.“It’s about giving back. I think that’s whatgood social responsibility is all about.We’re hoping in our ownway thatwe can make a difference.”

For David Sternblitz, Vice President and Treasurer of Zale Corporation,supporting charitable organizations is important especially in thejewellery industry. Zale owns several brands, including Peoples Jewellers.The corporation lends support to many national charities including theMake aWish foundation.“It’s not just the corporation writing a cheque,but it’s employee involvement,” Sternblitz says. “It’s getting into thecommunities where we live and work, and supporting them.”

This year, Zale’s largest campaign was the sale of a pink freshwater pearlbracelet for the Canadian Breast Cancer Foundation. Supporting acharity to benefit women was important, Sternblitz adds, especiallybecause jewellery is more connected to them. “We at Zale feel like it’sour obligation to give back,” he says. “Especially jewellery, where it’ssuch an emotional gift, you want people to feel good about the jewellerythey purchase. You want people to feel good about the organizationsthat they purchase from. It’s all tied together.” [CJ]


The Hazardsof WritingAboutJewellery

Emerald, orange sapphire and pink sapphire ring in 18K gold.

Being a jewellery journalist can be hazardous, especiallyif you are a jewellery junkie. At the elegant Taj BengalHotel in Kolkata, one of my first stops is always to

Khazana, the hotel’s own chic, in-house shop, where uniquerose cut diamonds dazzle from their often enameled settings.

In India, it is difficult not to notice that the affluent womenlove their gems and wear them with dashing pride. It is a bitof show and tell of one’s status and it is their tradition. Sittingoutdoors sipping tea on the terrace overlooking theHimalayas at the century old heritage Windamere Hotel inDarjeeling, India, I could not help but notice twosophisticated-looking and stylish women wearing a fewwonderful pieces of jewellery.

Not long afterwards, as with many isolated hotels whereguests eventually get to chatting about their lives and wherethey are from, I asked about their jewellery, sensing that theuse of gold and styling might very well be by the samedesigner. In fact, they were designed by a London-based,forty-ish year-old woman named Amanda Brighton. Sinceone of the women also happened to be related to Brighton, acall was made and, soon enough, I was interviewing thedesigner herself.

Why Amanda Brighton’s designs make

jewellery junkies greedy.


BY BARBARA KINGSTONE

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designerprofile

Brighton was born and raised in Bangkok, Thailand, but spent two or threemonths a year at Windamere Hotel, which was owned by her uncle. The childof a Tibetan mother and English father, Brighton, a former financier inLondon, decided a few years ago to leave the money markets and do what shehad always felt was her destiny — design jewellery. She took her GIA course in2001, graduated in 2002 and started her own business in 2005. “I come from afamily of jewellery enthusiasts,” Brighton says, fingering one of her stunningnew ring designs in a matte gold finish. “I was also a mad consumer.”

It was a gutsy move, but in London she slowly developed a word-of-mouthfollowing. Now, as a well-known designer with a posh, private clientelestretching to Europe and Asia, Brighton is often invited to take part in variousimportant jewellery shows. She was featured as last year’s “Up and ComingDesigner, New Heroes of the Jewellery Industry” at Coutts London JewelleryWeek. She was also a presence at the show at the Tower of London.

A dedicated woman who prioritizes and is totally focused on whatever shepursues, Brighton enrolled in several jewellery courses, learning about preciousand semi precious stones only after her first successful, but small, collection.“I felt I needed to be able to talk the jargon with complete knowledge.” She alsowanted to know firsthand about stones and whether they had been treated orwere natural, recognizing stones by their gemological properties.

“It was absolutely fascinating,” says Brighton about her year learning the trade.She emphasizes that she is not a goldsmith and leaves that entirely to theexperts in Bangkok. “I have a strange way of making my designs. I play withideas in my head and imagine them from every aspect. Then I put it on paper.Sometimes I’m inspired by the stones but often, when I see somethingbeautiful, I imagine something beautiful and I begin to think how it would lookas a ring or earrings.”

Dolce Vita earrings set with acquamarine cabochons and blue zircon in 18K gold.


Dolce Vita bracelet blue chalceodony,pink sapphire and onyx in 18K gold.



I sit fingering some of the most original rings I have seen in a longwhile. Shimmer, one of her new collections, seems to be the motherlode for mother of pearl-based rings with detailing that includes pinksapphires, aquamarine and diamonds.

With her incredible connections in Bangkok and fluency in thelanguage, Brighton draws sketches, which are then made in Thailand,the Mecca for coloured stones, coloured stone cutting and polishing.“Itend to go for six weeks at a time and usually do the bulk of my workthen. However, I never show any sign of annoyance if it isn’t right.They would just lose face,” says Brighton, fully aware of the culturaldifferences that exist in that part of the world. “I always try to be inBangkok to oversee the execution of my designs. If I don’t go, it has tobe a design that I’m confident that could be done without mybeing there. ”

She sometimes has told the craftspeople that this or that is not whatshe had envisioned. “There have been times when we’ve had to start allover again but I actually think it’s part of any process. It’s fine tuninglike any product.” She admits she has a critical eye for detail, which attimes flusters the goldsmiths. “I’ve always been fussy and I just applythat to my work. Anything that I have made has to be up to mystandard,” says the self-proclaimed perfectionist. “The pavé work is alldone by hand and is perfection.”

Her other collection, Lace, has stunning unique pieces, especially herdetachable earrings, some combined with pink sapphires and onyx,others with emeralds and black diamonds, and then there are thedramatic amethysts and diamond pair. All the work is smooth andperfectly finished.

After admiring her work, we discuss the orange sapphires available inThailand.“They’re really quite common but had a bit of bad press,” shesays with conviction. “It was one of the first coloured stones on whichthey used diffusion treatment to alter the colour but the initialproblems were with disclosure. As a result, that market collapsed. It hassince recovered and disclosure is now widely practiced. In that colourrange, the pink orange sapphires from Sri Lanka are exquisite and aremy favourites, which I try to integrate in many of my designs.”

It may seem like light years away from her first small collection and thecareful, limited production, but Brighton’s Lace and Shimmercollections are prime examples of her expanded design skills. In Lace,for example, micro-sapphire and amethyst are worked overchrysocolla and sugilite oval cabochons in dramatic sweeping shapes.The pieces often feature curved pavé work with use of colourcombinations and intricate design, and both collections come in verydifferent price ranges.

Brighton is the perfect showcase for her own jewellery and one of thefirst pieces I saw when wemet were the plate-round pink pavé sapphireearrings with drops of pearls that dangled at the top, followed byanother from the middle and then one at the end. They were theperfect colouring for this exotic looking woman and the design was theperfect merging of Western and Eastern cultures.

When I ask about what inspires her, Brighton’s answer is unusual. “I’ma huge daydreamer and always have been,” she states with her veryupper-crust English accent. “I think about royalty but my designs arereally a blend of everything I’ve been exposed to. I’ve been lucky sinceI have lived in and visited the most beautiful places and cultures.”

“I’ve always been fussy and I just

apply that to my work. Anything

that I have made has to be up

to my standard.”

Princess of the Woods necklace in chrysoprase,amethyst and tanzanite in 18K gold.



designerprofile

She admits that her jewellery is ‘very romantic’ but I suspect shewill be bolder in the near future. As for the size of stones sheprefers, she states, “I go through phases. Recently, I’ve been using alot of small pavé work, now I’m going to bigger stones.” As for herown favourite stone? Pink sapphire, which can be seen oftenthroughout her new collections. However, heat-treated small pinksapphires, she admits, are easily found and she does integrate themin some of her work. “However, larger size pink sapphires are nowvery expensive and have become harder to find. But I have suchgood contacts in Thailand that I usually get what I want.”

Up until now, Brighton has sold privately, but recently there havebeen a great deal of inquiries from important exclusive retailersfrom Hong Kong and the U.S. “I haven’t reacted to any yet but I amthinking a lot about Hong Kong,” she admits. As for the future?“More of the same but larger. I’m excited about my work and theentire industry all the time. It’s so different day to day.” [CJ] Dream ring in amethyst, pink sapphire and

diamond in 18K gold.

Princess of the Woods rose quartz, orange sapphire and baby pearl ring in 18K gold.



How Responsible Are We?A look at where the industry has been and where it is headed on the road to accountability.

Article compiled by Emily Stegman with assistance from the staff of the GIA Richard T. LiddicoatGemological Library and Information Center

1812John Mawe, a British mineralogist, publishes his book Travels in theInterior of Brazil, which illustrates the use of slaves to mine diamonds,gold and topaz in its text and drawings. The book’s images alsoshow significant environmental damage, such as rivers that werediverted by aqueducts so the slaves could find gems in thealluvial beds.

1885King Leopold II of Belgium (1835-1909) gains a vast area in centralAfrica, the Congo Free State, as his personal possession. He sets up asystem of forced labour to recover ivory and rubber in the region andorders his soldiers to chop off arms and hands of workers and children.As a result, the first human rights movement of the 20th century led bythe Congo Reform Association causes the king to turn over his colony toBelgium; shortly after, diamonds were discovered in the area thatbecame the Belgian Congo in 1908.

1885California prohibits hydraulic mining, which utilized water cannons towash the slopes of rivers to recover gold ore during the California GoldRush. A single water cannon with an eight-inch nozzle would force16,000 gallons of water a minute and move 4,000 cubic yards of earthin one day. Nearby hillsides and farmlands were greatly damaged bythe runoff; the effects of mercury, cyanide, arsenic and acids thatcontaminated the soil and water as a result of the runoff wererecognized later on.

1885The British annex Upper Burma, an action that converts Burma intoa province of India, following the third Anglo-Burmese War.The commerce of gemstones from Mogok, Burma, wasre-established with the West soon after. The image above shows small-scale Burmese miners toiling and carrying baskets of gem-bearingmaterial while British soldiers look on and supervise.

An illustration from John Mawe’s book shows erosion caused by mining practices. A sketch of the King’s Light Infantry camp in Mogok, Burma.

The gem and jewellery industry truly is a multifaceted field — a supply chain that involves and supports individuals from around theworld and all walks of life. As supply and demand, discoveries and production methods have evolved over time, we have learned(perhaps the hard way) that change is essential for survival.

The need for change has gained momentum in recent years as we strive to meet the social, environmental and ethical standards our customersand constituents are requesting. Progress has been made, but there’s still more to be done and the road to success may be long and costly. Wemust be dedicated to this effort and prove we are in it for the long haul.

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feature

1896Kokichi Mikimoto obtains a patent for his pearl culturing process,which he first used to produce blister pearls. By 1919, he wasbeginning to market whole round cultured pearls worldwide. Thedevelopment and public acceptance of cultured pearls around theturn of the 20th century became necessary as natural pearl-bearingmollusk species neared extinction, mostly due to over fishing.

1910The United States Bureau of Mines is established to focus on workersafety, accident prevention and improved working conditions in coal,diamond and coloured stone mines. It became necessary to improveair quality in order to mine deeper into the earth, so engineersdeveloped a technique to force air into and out of the pits where theminers worked. In 2002, 42 miners died in a tanzanite mine inTanzania after an oxygen pump stopped working.

1919Edward Bullard, the son of E.D. Bullard, a mining equipmentspecialist who created leather hats for industrial safety, patents a“Hard Boiled” hat, followed by a shipyard protective cap thatintroduced the early use of protective hard hats in mining.

1934The Jewelers Vigilance Committee (JVC) discusses some 20 active casesat its November meeting. The Mexican Gem Importing Co. sellingimitation diamonds as real diamonds and a Rhode Island firm falselystamping bracelets as “sterling” are among the cases decided upon. TheJVC also begins its collaboration with the Federal Trade Commission todevelop standards for marking gold, silver and platinum.

1957The Federal Trade Commission publishes Guides for the Jewelry,Precious Metals, and Pewter Industries, which aims to protect theindustry and public from “unfair methods of competition, unfairdeceptive acts or practices and other trade abuses.” The word “gold,”for instance, can only be used with items made entirely of 24K gold,and individuals at all levels of the trade are required to disclosetreatments, synthetics and imitations to customers. The guide isrevised in 1996 and 2001.

In a tanzanite mining area in Merelani, Tanzania, a miner stands in a shaft nextto an air ventilation hose.

This photograph from George F. Kunz’s Ivory and Elephant was taken in Zanzibar, a stopfor the African ivory trade before the tusks were exported worldwide.

Kokichi Mikimoto.

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1989The Convention on International Trade in Endangered Species ofWild Fauna and Flora (CITES) moves the African elephant fromAppendix II, a classification that allows controlled internationaltrade of the animal under a permit system, to Appendix I, whichprevents all international trade. Widespread poaching — toextract ivory for use in jewellery, vases, statues, etc. — played alarge hand in the African elephants’ endangerment. This trade bancaused the price of ivory to drop, and populations of Africanelephants began to recover in some countries.

1992The Mines and Mineral Act of 1992 is established in Sri Lanka toprohibit anyone under 18 from participating in gemstone mining.Amnesty International recognizes that child labour is an ongoing,multifaceted issue in any industry: “Some argue that prohibitingchild labour completely would increase the economic deprivationof extremely poor families who often depend on money broughtin by children for their basic needs. Others say that removingchildren from some industries will only force them onto the streetsor into more dangerous and exploitative forms of work.”

1992The Pearl Producers Association, a trade association made up ofAustralian South Sea cultured pearl farmers, and the Departmentof Fisheries in Western Australia extend their sustainable yield

policy to hatchery-produced oysters. This quotasystem was originally established to monitorhow many wild oyster farmers could collectwithout diminishing the oyster population’sability to sustain itself, thus ensuring along-term supply of oysters.

1996Pik Botha, South Africa’s Minister for Mineral and Energy Affairs,estimates that every ton of gold mined in his country results in onedeath and 12 serious injuries. Rock falls, tunnel collapses, fires,heat exhaustion and more — not to mention long-term effectssuch as respiratory illnesses — contribute to making mining oneof the most dangerous professions. The International LabourOrganization held the Safety and Health in Mines Convention ayear earlier to outline ways mining operations could eliminate orminimize safety and health risks. Only 23 countries are reported tohave ratified the Convention’s guidelines.

2000A dam used to hold the mine tailings from the Aurul S.A. BaiaMare Company’s gold mining operations in Romania fails due toheavy rain and melting snow, causing cyanide-rich tailings wasteto be released into the Somes, Tisza and Danube Rivers beforereaching the Black Sea. As a result of this and other cyanideincidents at gold mining facilities, the “International CyanideManagement Code for the Manufacture, Transport and Use ofCyanide in the Production of Gold,” began to be developed.

2000The World Diamond Congress, an annual meeting between theWorld Federation of Diamond Bourses and the InternationalDiamond Manufacturers Association, is held in Antwerp. Thegroup establishes the World Diamond Council to bringrepresentatives from the diamond and banking industries togetherto develop a tracking system for the import and export ofdiamonds. The goal is to prevent the exploitation of diamonds tofund violent and illegal acts.

2003The Kimberley Process Certification Scheme, created by the WorldDiamond Council, becomes a national law in participatingcountries. This system works to prevent diamonds used to fundconflict (also known as “blood diamonds” or “conflict diamonds”)from entering the legitimate diamond supply chain. It applies todiamonds when they cross an international border and requiresthe stones to be sealed in tamper-resistant containers andaccompanied by forgery resistant, conflict-free certificates withunique serial numbers.

Artisanal miners in the Mavuco area of Mozambique work with picks andshovels to recover copper-bearing tourmaline. Photo by Brendan Laurs.Image © GIA.

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2003Rio Tinto develops its global HIV/AIDS strategy, which includesaffordable treatment and programs for employees and their partners,including voluntary counselling and testing. The program is based onthe ILO Code of Good Practice on HIV/AIDS and promotesnon-discrimination and confidentiality for all employees facingthe disease.

2003The first “green gold” jewellery line is produced. The Certified GreenGold Program aims to produce metals in an environmentally andsocially sound way in 12 Afro-Colombian communities. Thecertification criteria, which is endorsed by the Association forResponsible Mining, includes not using toxic chemicals in theextraction process, monitoring the silt load into streams, rivers andlakes, and marking the origin of the gold or platinum in favour of therespective municipality (for royalty purposes).

2004The Chair of the Kimberley Process announces that less than 1% ofdiamonds traded internationally are conflict diamonds, a significantimprovement from the 4% prior to the establishment of theKimberley Process.

2005The Diamond Development Initiative (DDI) is formally launched toaddress the political, social and economic challenges facing theartisanal diamond mining sector. DDI’s first study, “Dealing forDevelopment: The Dynamics of Diamond Marketing and Pricing inSierra Leone,” aims to ensure diamond diggers, miners andcommunities benefit more from the millions of dollars worth ofdiamonds they help produce.

2006The International Council on Mining and Metals publishes GoodPractice Guidance for Mining and Biodiversity to help mine employeesmanage and conserve biodiversity. It examines how processes like oreextraction can negatively impact the environment and wayscompanies can create goals for re-establishing biodiversity prior tomine closures.

2006The movie Blood Diamond is released. Set during the civil war inSierra Leone in 1999, the film follows an ex-mercenary turnedsmuggler and a Mende fisherman as they search for a rare pinkdiamond and strive to rescue the fisherman’s son from rebel forces.The De Beers Diamond Trading Company advises retailers to preparefor consumer reactions to the film by ensuring they buy fromKimberley Process-compliant suppliers, posting a statement aboutthis requirement in their store and educating staff members about theissues. The World Diamond Council created diamondfacts.org inresponse to the movie, with accurate information about conflictdiamonds, the Kimberley Process and the role diamonds play inAfrican economies.

2006Festus Mogae, President of the Republic of Botswana, says, “For ourpeople, every diamond purchase represents food on the table, better

living conditions, better healthcare, potable and safe drinking water,more roads to connect our remote communities, and much more.”Diamonds, discovered in Botswana in 1967 play a huge role in thenation’s fast-growing economy and helped establish more than 300schools. DTC Botswana is founded in May to plan the growth ofBotswana’s diamond industry economy.

2007Jewelers for Children (JFC), an organization founded and supportedby the U.S. jewellery industry, contributes funding to a communitycentre that cares for children in the Isibindi project who are orphanedor made vulnerable by HIV and AIDS. Since its inception in 1999, JFChas donated more than $30 million to programs benefiting childrenaffected by illness, abuse or neglect.

2007The Rapaport International Diamond Conference is held in Februaryin New York. Government officials, industry members and NGOs(non-government organizations) gather to discuss ways to startdeveloping solutions to the problems African diggers face. TheRapaport Group is a dedicated supporter of the fair trade movementand is committed to establishing Fair Trade and Fair Made diamond,gem and jewellery products and markets. The Company regularlydonates at least 10% of its profits to charity and initiates programs tohelp alleviate poverty in Africa and elsewhere.

2007The Madison Dialogue Ethical Jewelry Summit is held in Washington,D.C., in October. Small-scale miners, NGOs, companies representingthird party verification, jeweller organizations and major jewellersdiscuss environmental and societal effects of mining raw materials insource countries. The summit participants’ final declaration: “Webelieve there is an opportunity to make a difference in the lives andcommunities of artisanal/small-scale miners and other marginalizedworkers worldwide, by developing and implementing robuststandards for the production of ethical and fair trade metals,diamonds, gems and jewellery. We also encourage governments,where needed, to develop policies and regulations that protect theseminers, workers and their communities.”

2008Simmons Jewelry Co. donates more than $300,000 to the DiamondEmpowerment Fund (DEF), a non-profit international organizationestablished to raise money for people and communities in diamond-producing regions of Africa. The donation was made possible throughthe sale of the Company’s Green Bracelet. Russell Simmons, bestknown as the founder of Def Jam Records, created DEF after a trip tosouthern Africa in 2006, where he saw how integral the diamondindustry is to creating sustainable economic development there.

2008The Tom Lantos Block Burmese JADE (Junta’s Anti-Democratic Effort)Act is enacted on July 29. The ban blocks Burmese jadeite and rubyfrom entering the U.S. through third party countries, such asThailand, China, Malaysia, Taiwan and Singapore, in an effort towithhold a main source of revenue from the ruling government (orjunta) that has caused the displacement and exploitation of countlessBurmese citizens. [CJ]

feature

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Cost and EffectPrices for precious metals are affected by numerous factors,and the jewellery industry happens to be near the top of this list.

BY BRYAN SOROKA

Precious metals. To consumers, they represent beauty and status.To designers, they signify artistic possibilities. Retailers,meanwhile, tend to form a considerably more pragmatic

attitude, and some emerging factors will be of particular interest to thismindset.With all that transpired in 2008, the jewellery industry is asperplexed as any other regarding what 2009 will hold. When it comesto precious metals, though, the picture is not quite so muddy, as certainissues have come into play to allow for an educated forecast.

GoldAndy Montano, Director of Marketing for ScotiaMocatta, a leadingmetals trading, brokerage and finance institution, says that the jewellerysector remains the largest physical off-take market for gold. “Generallyspeaking, mine production and jewellery demand are about equal everyyear,” he adds.

When it comes to primary factors that affect precious metal prices,Mr. Montano says, “The drivers on the price remain investor activity.Whether net buyers or net sellers or central bank activity … who havebeen net sellers in recent years,” Mr. Montano goes on to say that ofparticular note is the fact that “in recent years, the biggest change isinvestor interest. It’s gone from net sellers to net buyers and that’s beenreflected in the price [of precious metals].”

Whatever the shift, the demand for gold in early 2009 is expected to bespotty, with a weaker claim in the West and steadier consumption inthe Far East and Middle East. In India and other developing nations, asteadier demand could assert itself, though this hinges on the price ofgold as opposed to economic climes.

What is interesting to note about gold is that it does not react to merelytraditional supply and demand such as other commodities. The priceof gold is impacted for different reasons in different regions. Goingback to Middle Eastern and Asian nations, jewellery is commonlypurchased as an investment, whereas this is not so much the case in theWest. Also, events including the Chinese New Year could spike sales,and seasonal demand in April and May, when many weddingstake place in India, could have a great effect on demand andsubsequent prices.

PlatinumThe price for platinum during the early stages of 2008 was $1,538/oz.This number skyrocketed to $2,300/oz in March, and then saw anequally startling drop in mid-July, with prices as low as $744/oz.Several factors are influencing the price of platinum for the New Year.These include the outlook for a balanced market and enthusiasticinvestor interest.



preciousmetalsfeature

Jewellery Industry ImpactOne of the key factors that determine platinum’s price is the jewelleryindustry. And much like the financial markets during the past year, thisimpact has fluctuated. In 2007, for instance, the industry demanddecreased by 3.3%, which represented a total of 1.58Moz of platinum.Compare this with the 2.88Moz, which represented peak demand forplatinum in 1999.

Today, jewellery accounts for 22% of platinum demand, as comparedto 51% in 1999. Inflated prices in the first part of 2008 also saw elevatedlevels of jewellery being cashed in, especially in Japan. However,following the 63% drop in prices from the highs and with prices nowthe lowest since 2005, there is likely to be considerable built-up interestfrom the jewellery industry. It might take some time for consumers toreinvest their money in expensive items such as jewellery, however, it islikely that demand will return given these price levels, and somerestocking is likely to start being seen. This will be even more probableif China and Japan experience a brief or mild economic slowdown asboth countries previously had the strongest appetite for platinumjewellery. This is why some expect jewellery demand to recover after aninitial delay, of which there is some evidence at the moment.

What to Expect…The sudden drop in the price of platinum could very well triggerheightened interest and subsequent demand from the jewelleryindustry. The good news here is that this drop leaves a lot of space andpossibilities for a turnaround since prices have decreased to levels theindustry has not seen for five years.

PalladiumMuch like platinum, palladium prices enjoyed a significant spikeduring the earlier stages of 2008. Actually, this increase outperformedplatinum even though the latter was more affected by South Africa’ssupply disruption. However, as platinum prices rebounded, palladiumwas winning increasing market share from platinum. The result wasthat prices increased from $366/oz at the conclusion of 2007 to a highof $592/oz in March, up 61%, compared to platinum’s 50% gain.However, palladium has since dropped 72% from the aforementioned

highs, compared to platinum’s 63% drop. Interestingly, palladium’soutlook is now stronger than platinum’s and, both structurally andprice-wise, it is set to gain market share from platinum. It is really quitesurprising that prices have performed the way they have, especiallyconsidering that Russia may choose to reduce sales from inventorywith prices this low.

Jewellery Industry ImpactAlthough palladium jewellery has seen rapid growth in recent years,consuming an estimated 1.10Moz this year, up from 240,000oz in 2001,some 60% of the off take has been from China. Also noteworthy is thatconsumer demand for palladium jewellery has, in large part, beenfuelled by aggressive marketing campaigns, touting it as an alternativeto platinum. Thus, as platinum prices fall to levels that offer jewellerymanufacturers a reasonable margin again, it will be interesting tosee whether demand for palladium jewellery slows markedly. All inall, with price differentials between the precious metals thatmuch more narrow now, it would not be surprising to see palladiumjewellery demand suffer relatively more than the other metals.

What to Expect…Given palladium’s fledgling jewellery market, the outlook for theprecious metal in the long term remains quite positive. Above andbeyond that, the mine supply/demand balance is one of supply deficitwith the market currently being balanced by sales of Russian inventory.Eventually, these surpluses will most likely be depleted — thesales rate has already slowed, and at these low prices they mayeven be suspended. Overall, prices could lift off these lows in early2009, and move up to a higher trading range when pricesagain increase.

ConclusionIt is evident that the jewellery market plays a significant role in thedemand for various types of precious metals, which of course, impactstheir respective prices. As 2009 continues to unfold, it will be acombination of investor interest and consumer demand that continuesto shape the precious metal market. [CJ]Reference: “Metal Matters,” ScotiaMocatta, January 2009.


All That Glitters at theGolden GlobesThe jewellery trends just kept coming down the red carpetat the first major awards show of 2009.BY BONNIE SIEGLER

A lthough the Golden Globes areawarded for accomplishments inthe film and television industry,

at this year’s diamond- and platinum-filledceremony those of us in the jewellery businessfound just as much cause for celebration.

Angelina Jolie ruled the red carpet with somedazzling accessories, and we’re not referring toBrad Pitt. For the awards ceremony, red carpetand after parties, Jolie chose Neil Laneplatinum and 5-carat diamond drop earrings($180,000) and a matching platinum and5-carat diamond ring ($188,000).

Angelina Jolie’s 5-caratdiamond drop earrings.

Angelina Jolie’s 5-carat diamond ring.

Angelina Jolie

Megan Fox


Transformers star Megan Fox wore allAmrapali at the event, rocking yellow goldbangles with diamonds, emerald beadedbangles and stunning emerald and yellowgold earrings.

Megan Fox’s emerald andyellow gold earrings.

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starwatch


Evan Rachel Wood’s platinum paisleyhinged-cuff bracelet with diamonds.

Sandra Bullock’sAmrapali earrings.

Evan Rachel Wood

Evan RachelWoodwas a vision of elegancein support of her The Wrestler co-star andGolden Globe winner, Mickey Rourke.Wood chose a Neil Lane platinum anddiamond ball bracelet ($27,000) andplatinum leaf earrings ($39,000). [CJ]

Sandra Bullock

Kristen Bell’s Siera rose cutdiamond necklace.

Kristen Bell

Jaime Pressly’s platinum paisleyhinged-cuff bracelet with diamonds.

Kristen Bell partied in style at the InStyleafter-party wearing a Siera rose cut diamondnecklace set in black rhodium gold. It couldhave set her back $41,420, but it was just onloan for the young star of last year’s hit flickForgetting Sarah Marshall.

Jaime Pressly left her Southern bumpkinMy Name Is Earl persona behind, transforming

into Hollywood royalty in a platinumpaisley hinged-cuff bracelet with

diamonds (3.23 carats) worth$25,030, and a platinum ornatehinged cuff with diamonds (3.94carats) priced at $24,335. Bothwere designed by Neil Lane.

Sandra Bullock made a definite statementlooking ethereal in her blush-toned gown,though she really amped up the volumewith her jewellery choices. Proving shestill has an edgy side to her “good girl”persona, Bullock wore a Bochic yellow goldturquoise and tourmaline snake cuff($20,000) with dazzling Amrapali yellowgold and turquoise dangling earringsvalued at $8,000.

Jaime Pressly

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Judy Richards, President and Owner of Davidson’s Jewellers inOttawa, Ontario, brings a wealth of experience and expertise toCanadian Jeweller’s Editorial Board. She has earned a graduate

jewellers degree from the Canadian Jewellers Association, as well as acertificate in jewellery design, and finally, she has completed GIAdiamond and coloured stone courses.

During her 35+ years in the industry, Ms. Richards has been recognizedwith numerous awards and honours. She was one of 20 Canadians invitedto join the DeBeers Carat Club, and has recently been invited to join theAmerican Gem Society, which is an impressive achievement considering amere 5% of jewellers in North America have earned such a membership.

Some of Ms. Richards’ other notable accomplishments include acting aspast President of the Canadian Jewellers Association, the Better BusinessBureau of Ottawa/Hull, and theWomen’s Business Network Association ofOttawa. She has also served as a Director of the Canadian Council ofBetter Business Bureaus and the Canadian Automobile Association.

Ms. Richards is also very active in her community and is a foundingmember of the Capital Daycare Parents Co-Op, the Women’s BusinessNetwork and the Glebe Business Group.

It is with great honour that Canadian Jeweller welcomes Ms. Richardsto our esteemed Editorial Board.

Canadian Jeweller’s EditorialBoard Welcomes Judy Richards


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editorialboard

To find out more about Canadian Jeweller’s Editorial Board,please contact Bryan Soroka, Director, Editorial & Communications, at [email protected].

Brent TrepelPresident and CEO of Ben Moss Jewellers,Brent Trepel leads the charge for Canada’slargest third generation retail jeweller. Mr.Trepel joined the business in 1984, and hasseen its retail presence swell from 18 to 58stores in just two decades. This phenomenalrate of success has not gone unnoticed,as Ben Moss has been honoured withthe Retail Council of Canada’s RetailInnovation award, Canadian Jeweller’sJewellery Chain of the Year, and inclusionin the Financial Post’s 50 best managedcompanies in Canada ranking.

Myles MindhamBeginning his career as a bespoke jeweller,Myles Mindham opened his first retail store,Mindham Jewellery Ltd., in 1990. Nowknown as Mindham Fine Jewellery Inc., theCanadian Jeweller Excellence in Design andDiamonds Today AwardWinner has becomeone of the most sought-after creators ofcustom-made luxury jewellery. Mr.Mindham’s unique sensibilities are evidentnot only in his creations, but also in hisstore’s design and the multitude of value-added services that have made him one ofCanada’s most successful retailers.

Mark LashMark Lash’s passion for design developed atan early age when he started creating his ownjewellery in high school. Since then, thedesigner/retailer has opened two highlysuccessful Toronto-based stores, whichshowcase his many custom-made pieces. Mr.Lash has earned the moniker of “Canada’sjeweller to the stars,” as numerous NBA,NHL and other star athletes, along withrenowned musicians and actors, can be seenwearing his extraordinary pieces. Mr. Lashhas also appeared on ET Canada, BreakfastTV and Canada AM, just to name a few.

As the Canadian jewellery industry continues to evolve with customer demands and market trends, it is our responsibility tocommunicate these events, as well as arm you with the knowledge needed to meet these challenges.

With this in mind, Canadian Jeweller is pleased to introduce our Editorial Board. Members include some of this country’s mostinfluential and respected jewellery retailers who have proven to be valuable partners and leaders in our continued efforts to help

our industry thrive in all economic climes.

Canadian Jeweller’s Editorial Board


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Marketplace Advertising Black/white drawings & logos can be supplied but no photographs are permitted. Single size: – 3.9”wide by 2” tall. Rates per insertion: 9 TIMES – $225; 7 times – $260; 3 TIMES– $309; 1 TIME – $340. Double size: – 3.9” wide by 3.8” tall. Rates per insertion: 9 TIMES – $450; 7 TIMES – $490; 3 TIMES – $575; 1 TIME – $650. Rates do not include GST. Yellow is available as aspot color for an additional $65. For more information: Lucy Holden Toll free 888-358-8186 ext. 6117 or [email protected].

Dealers and refiners of Precious Metal Scrap

Let Us EarnYour Confidence. Call us Before You Refine 27 Queen Street, East, Suite 1100, Toronto, Ontario, M5C 2M6

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While You Wait-Immediate SettlementsCheck our State of the art Jewellery Alloys

Check Our site for the up-to-date Buy and Sale PricesAt:

CNC Gold Refining IncDDea

While You Wait-Immediate SettlementsNC Gold Refining Incalers and refiners of Precious Metal Scrapl d fi f P i M

gYou Wait-Immediate Settlements

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Let Us EarnYour Confidence. Call us Before You Re27 Queen Street, East, Suite 1100, Toronto, Ontario, M5C 2M6

E-mail:info@gold

999999

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At:Check Our site for the up-to-date Buy and Sale Prices

Check our State of the art Jewellery AlloysWhile You Wait-Immediate Settlements

Confidence. Call us Before You ReToll Free:866-553-0130

East, Suite 1100, Toronto, Ontario, M5C 2M6

refining.ca Web: www.goldFax:647-430-3657

Our site for the up-to-date Buy and Sale Priceseck our State of the art Jewellery AlloysYou Wait-Immediate Settlements

WWW.goldrefining.cafine

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drefining.ca

fore You Re

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PRECIOUS METALS DEALEREXPRESS GOLD REFINING LTD.

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AVAILABLE FOR IMMEDIATE DELIVERY




mailto:E-mail:[email protected]

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Marketplace Advertising Black/white drawings & logos can be supplied but no photographs are permitted. Single size: – 3.9”wide by 2” tall. Rates per insertion: 9 TIMES – $225; 7 times – $260; 3 TIMES– $309; 1 TIME – $340. Double size: – 3.9” wide by 3.8” tall. Rates per insertion: 9 TIMES – $450; 7 TIMES – $490; 3 TIMES – $575; 1 TIME – $650. Rates do not include GST. Yellow is available as aspot color for an additional $65. For more information: Lucy Holden Toll free 888-358-8186 ext. 6117 or [email protected].

JOHN JR. ARABATLIAN PRESIDENTCELL: 604-250-2158 TEL: 604-689-4190 FAX: 604-689-4139

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BEST QUALITY & BIGGEST SELECTION OF SILVER JEWELLERY GUARANTEED.LIFE TIME WARRANTY, AND VERY LARGE LINE OF 10K JEWELLERY.

+ 14K BODY JEWELLERY, EARINGS, BANDS AND CHAINS.WATCH FOR OUR NEW GOLD AND SILVER CATALOGS.

IIFF WWEE DDOONN’’TT HHAAVVEE IITT.. YYOOUU DDOONN’’TT WWAANNTT IITT..SERVICE THAT YOU CAN TRUST. FAMILY OWNED & OPERATED

H & W PERRIN Co. LtdCanada’s Leading Supplier of Watch & Clock Materials

PERRINS’ stocks a complete range of findings and settings for the jeweller and adeep stock of materials for the clock & watchmakers

We inventory a large selection of tools, equipment & supplies for all the trades.

A long standing tradition of service since 1929.If you aren’t doing business with us, you’re doing it the hard way!PHONE: (416) 422-4600 . . . . .Toll Free 1-800-387-5117FAX: (416) 422-0290 . . . . .Toll Free 1-800-741-6139

� [email protected]

LaLa Diamond Cutting & Repairs Inc.

• Cutters of Rough Diamonds• Old Mine Cuts and Repairs to All Shapes

• Buy Diamond Roughs and Broken Diamonds

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email: [email protected]

1-800-263-1669905 475-9566

www.imperialproducts.comPart of the Unicore Group

A leader in the Canadian JewelleryIndustry since 1914






http://www.imperialproducts.com

The Diamonds You Need. In Stock. Overnight.

We carry finely cut diamonds rangingfrom .01 ct to 3.00 ct in a variety of shapes including round brilliant, princess, radiant, ascher, emerald, heart, pear, marquise and oval.

Included in our inventory are CANADIAN diamonds.

Selection, Service and Valuea family tradition since 1955

www.wmolldiamonds.comPhone 416.364.9748 • Toll Free 1.800.361.8894 • Fax 416.364.9738

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INYOURNAME

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classifiedA D V E R T I S I N G

For more information on how to advertise in the classified section of Canadian Jeweller magazine please contact: Michele Aubie Toll free 888-358-8186 ext. 6119 or [email protected].

USED TL30 HIGH-SECURITY, FIRE RESISTANT SAFE FOR SALE.

Equipped with digital lock, 3.5" thick walls,6" thick door, and 1.5" diameter steel bolts.

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FOR SA

LE

POCKET WATCH AUCTIONEstate of L. Mekkes - Portage, ManitobaMarch 21, 2009 Includes 250 + Elgin,

Waltham, Balco, Burlington, Regina & MORE - LARGE AMOUNT OF Watch findings, Clock

Works, Tools, 2 Jeweler's lathes.Details @ www.meyersauctions.com

FOR SA

LE

Successful, independent, destination jewellery store, celebrating 75 years in

business in 2008. Well-established clientele. Downtown location. Includes business,

building and inventory. Will transition assist.Visit our website at

www.atkinsonsjewellers.com.Contact [email protected]

FOR SA

LE

Refining - Assaying - Trading

Let Us Earn Your Confidence-Call Us Before You RefineTel: (416)7366052 Fax:(416)7364334 Toll Free:1-800-785-2371

Actual size 3.9" by 2.0" Precious metal specialists and refiners of gold and platinum jewellery scrap

Web:www.refinegold.ca www.goldrefiner.ca E-mail: [email protected] 359 Canarctic Drive,Downsview, Ontario, M3J 2P9

Check for our refining specials and alloy products At: www.refinegold.caand www.goldrefiner.ca

Refine-All Metals Ltd.

Dealers and refiners of Precious Metal Scrap

Let Us EarnYour Confidence. Call us Before You Refine 27 Queen Street, East, Suite 1100, Toronto, Ontario, M5C 2M6

CNC Gold Refining Inc

Toll Free:866-553-0130

9 9 9 9

Tel: 647-430-3643 Fax:647-430-3657 E-mail:[email protected] Web: www.goldrefiner.ca

WWW.goldrefiner.ca

While You Wait-Immediate SettlementsCheck our State of the art Jewellery Alloys

Check Our site for the up-to-date Buy and Sale Prices At:

DECEMBER ad


Marketplace Advertising Black/white drawings & logos can be supplied but no photographs are permitted. Single size: – 3.9” wide by 2” tall. Rates per insertion: 9 TIMES – $225; 7 times – $260; 3 TIMES– $309; 1 TIME – $340. Double size: – 3.9” wide by 3.8” tall. Rates per insertion: 9 TIMES – $450; 7 TIMES – $490; 3 TIMES – $575; 1 TIME – $650. Rates do not include GST. Yellow is available as aspot color for an additional $65. For more information: Lucy Holden Toll free 888-358-8186 ext. 6117 or [email protected].

OWN YOUR OWN RECESSION RESISTANT

FRANCHISE!World’s Largest Jewellery

and Watch RepairFranchise is Looking to

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http://www.atkinsonsjewellers.com


http://www.refinegold.ca

http://www.goldrefiner.ca


http://www.goldrefiner.ca

http://www.fastfix.com


Signature: Date:

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Address:

City: Province:

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� Yes! Please send me or continue to send me Canadian Jeweller magazine � No, don’t send

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OR MAIL

on any product advertised in this issue

SEE A PRODUCT YOU LIKE? WANT MORE INFORMATION, ABSOLUTELY FREE?…

1. Seeproductyou wantinfo on

3. Write thenumber(s)on the attachedfree info card

2. Use this quickreference listbelow to find outits free info number(it’s also on the ad)

5. Receive free infodirect from asmany advertisersas you like

4. Mail or fax us at1-888-849-0155or 416-703-6392

CONNECT WITH... page write #on card CONNECT WITH... page write #

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101

PAGE96

FAX NOW TO: 1-888-849-0155 or (416) 703-6392 | ORMAIL CARD TODAY TO: 60 Bloor St. West, Suite 1106 Toronto, ON, M4W 3B8

Reserved exclusively for retailers

Siffari 2 101

Jewelers Mutual 4-5 102

Noble Gift Packaging 6-7 103

Atlantic Engraving Ltd. 8 104

GS Labs 9 105

Rare and Precious Gems 11 106

Pandora 13 107

Atlantic Engraving Ltd. 15 108

Champagne Diamonds - Rare and Precious Gems 16 109

Diarough Canada - MCP Canada 16 110

Uni-Design Canada - Diarough Canada 16 111

Diarough Canada - MCP Canada 17 112

Bryrex Gems Inc. 18 113

Atlantic Rings - Atlantic Engraving Ltd. 18 114

Mirage Wedding Bands - Mirage Creations 18 115

Flanders Collection - Gee ’N Gee Importers 18 116

Reed Exhibits - JCK Las Vegas 20 117

Byrex Gems Inc. 21 118

Sanghavi Diamonds Inc. 23 119

Cardinal Crystal Boutique - Wenger 25 120

Rousseau Canada Inc. 28 121

MCD Pearl Imports 28 122

Mirko Engraving Ltd. 31 123

Wenger - Swiss 33 124

Bergeon & Company SA 35 125

Mirage Creations - Nova Diamonds Inc. 45 126

The Western Canadian Jewellery Expo 68 127

Canadian Rockies Design Awards 69 128

OpenBlue Networks 89 129

Groupe Courchesne - Zinzi Silver Jewels 98 130

Rotary - Swiss Watch 99 131

Mirage Creations 100 132

FREEWhich category best describes yourbusiness classification?� Education� Retailer�Manufacturer�Wholesaler� Importer� Designer� Services (repair, appraisals, etc.)� Other __________________________________

Number of employees at your location� 1-3 � 4-8 � 9-12 over 13

Number of locations ____________________

Selling area of your store� under 1,000 sq. ft. � 1,001 - 3,000 sq. ft.� 3,001 - 5,000 sq. ft. � over 5,000 sq. ft.

Approximate annual sales volume� under $500,000� $500,000 - $1 million� $1 million - $5 million� $5 million - $10 million� $10 million - $20 million� over $20 million

Categories you personally manage� Retailer � Designer� Gemologist � Supplier�Manufacturer� Other __________________________

096.CJ_FaxBack.qxd:Layout 1 1/30/09 12:05 PM

lastword


Featuring an 11.50 ct. tanzanite accented with ideal-cut diamonds (3.50 ctw.), this platinum ribbons ring designed byJulie Buckareff from JJ Buckar in Toronto will surely elicit envy from everyone who isn’t wearing it.Photo courtesy of the American Gem Trade Association (AGTA) and Robert and Orasa Weldon

”“

FAMED ENGLISH PAINTER AND WRITER JOHN BERGER ONCE SAID:

Glamour cannot exist without personal social envy

being a common and widespread emotion.

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Canadian Jeweller Magazine February March 2009

Documents

Transcript of Canadian Jeweller Magazine February March 2009