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Finally, some glimmer in the numbers

No secret that there's a nasty economic undertow dragging on our industry. Many are hoping simply to keep their heads above water until the heavy surf subsides.

Finally, several items have surfaced that I see as positive. The first came Monday in Tiffany's release of its fiscal 2008 financial results. Tiffany Chairman and CEO Michael Kowalski is one of the best, and it's always valuable to listen closely to what he says.

In the statement, Kowalski indicated that while we'll continue to see "challenging economic conditions throughout the year," the decline will become less severe as we move toward the latter part of the year.

More positive yet, Sterling, in a statement of its annual financial results that it issued today, noted that sales are down only 2.7 percent for the first seven weeks of the current fiscal quarter. Further, Valentine's Day was relatively strong, and these results are even better when the timing of Easter this year is calculated in. Margins are improving, too.

There's nothing that we at the magazine here want more than improved conditions for everyone in the industry. The conversation consistently seems to turn to when the downturn will bottom out. Still not certain on that one. But these two items, along with the stock market's rally of the past few days, are the first things we've had to cheer about in quite some time.

Designer Spotlight: Rebecca Overmann

San Francisco-based jewelry designer Rebecca Overmann's busy schedule has her skipping from trade shows to trunk shows across the nation while also trying to balance studio time to bring her designs to life.

I met up with the Savannah College of Art & Design grad last week to check out her latest pieces, and while her adorable tiny stacking rings and diminutive pendant necklaces have amassed quite a following, among my favorite new baubles are these "Diamond Nest Rings."

Crafted in 14-karat yellow or pink gold, the designs feature the hand-wrought, organic look that Overmann is known for, and the uber-tiny diamonds (each ring features 3 points each) peek out as a refined surprised.

To see more, visit RebeccaOvermann.com.

Does red-carpet jewelry make cents?

With the Oscars last month rounding out the season's biggest awards shows, one thing I've been wondering lately is what the placements mean for the jewelry designers who are almost 100 percent of the time lending their multi-thousand dollar jewels?

On one hand, I'm a firm believer that the jewelry category as a whole profits from such big-time exposure. (Think of all the stars wearing chandelier- and drop-style earrings and stacked bracelets—easily imitable looks that magazines such as People and InStyle translate for consumers at entry-level price points.) Yet in terms of those uber-luxurious, multi-thousand dollar pieces that the celebrities actually wear on Grammys or Golden Globes night, what sort of profit comes back to the designer?

Well a recent Women's Wear Daily article answered the question for me, and according to the article, there is quite a bit of moolah to be made.

While it's somewhat uncommon for the stars to buy the jewelry themselves, there are consumers out there who are willing to shell out thousands, and even millions, to share in the glamour.

From Oscars night, designs worn by Angelina Jolie, Natalie Portman, Diane Lane and Kate Winslet have either already been sold or the designers are in talks with clients.

According to the article (titled "Red Carpet Jewels Can Turn Into Green"), the emerald Lorraine Schwartz suite that Jolie wore to the Oscars sold for $2.5 million, an $85,000 Kwiat diamond bracelet worn by Natalie Portman is on hold for a client, and Neil Lane—who outfitted Diane Lane—is in talks to sell the actress's Oscar night vintage diamond fringe necklace, a piece valued at more than $100,000.

But even if you have a few hundred thousand to shed, some pieces just can't be had. Remember the diamond and turquoise stunner Eva Mendes wore to the Golden Globes? Though client interest was strong, Van Cleef & Arpels won’t part with it. One of just 400 pieces in the brand's museum collection and estimated between $700,000 and $900,000, the piece will be sparkling within the company's lauded vaults.

Thoughts on economy run wild

I don't know what to think of the economy anymore.

It goes without saying that as of right now, the world is in the midst of a recession that's comparable to the Great Depression.

But just how bad is it? And how long will it last?

It seems that there have been some cause for a bit of optimism lately.

While this survey is still far from optimistic, the latest data from the Jewelry Consumer Opinion Council, outlined here, shows that consumers were slightly less pessimistic in February and bought a little bit more jewelry (probably due to Valentine’s Day).

The latest report from the National Retail Federation, which you can read here, wasn't completely depressing either.

And, as I write this blog, The New York Times has posted this story detailing how an uptick in housing starts made the Federal Reserve's Open Market Committee feel a bit warm and fuzzy.

Will the coming of spring also thaw out our frosty economy? Is a recovery in the early part of the summer, or a bit later this year, too much to hope for?

Billionaire investment genius Warren Buffett certainly seems to think so.

And the latest unemployment data is a huge cause for concern.

So, the question remains: Are things starting to get a little bit better or is the worst yet to come?

If I had the answer, I bet I'd be almost as wealthy as Warren Buffett.

 

Will Collectors Universe exploit AGL name?

The following blog entry was written and sent to us by Antoinette Matlins.  

So what happens now...and in the future? The manner in which Collectors Universe closed the doors on AGL on March 2 was unprecedented in this field and very disturbing on many levels. While these economic times may have resulted in CU having to withdraw from the gemstone arena, there was no need to execute it in the manner in which it was done; CU has caused chaos and confusion for thousands of people who have depended on AGL for years, and thrown into question the value of AGL reports, past and present. AGL was an institution as firmly entrenched and respected globally as GIA.

What happens to the value of these documents now? Where are all of the files, with the detailed analysis done on each of the thousands and thousands of gemstones that have come through AGL's laboratory over the years?  The sudden closure of its doors will affect collectors around the world and undermine their confidence in the value of their gemstones, and the credibility of their documents with the sudden disappearance of the lab that issued them.

Equally important, or perhaps even moreso, I'm concerned about CU's plans for the AGL name. The way CU has handled the closing of AGL demonstrates that CU management is capable of withholding important information and deceiving people who trusted them.

If CU is the owner of the AGL name, and if CU ever chooses to re-enter the gem field, I fear that CU will reintroduce the AGL name and exploit the reputation is has earned over the years. The value of the AGL name lies in the reputation it earned as a result of the knowledge, experience, and integrity of Cap Beesley and the AGL team, which now includes respected gemologists such as Chris Smith. The reputation of any laboratory--and the value of the paper it provides--is a direct reflection of the people running it. If AGL "paper" were to be resurrected at some future time--without this team--where would its value be? It should have NO VALUE, until it has EARNED value, and this could takes years. However, it would be easy to exploit AGL's current reputation. AGL has become a brand that assures people about the quality and representations related to a particular gem; an AGL report has enjoyed such a respected reputation that it has become an essential document affecting purchase decisions by consumers as well as the trade. I think that were CU ever to resurrect the AGL name, without the AGL team responsible for its reputation, this would be tantamount to consumer deception and misrepresentation. It would create confusion in terms of the thousands of pre-existing AGL documents and what they represent.

The manner in which CU has handled the closing of AGL reflects an attitude by CU management that suggests they are interested in only one thing: making money, regardless of how they make it. Their lack of sensitivity to, or interest in, handling this in a clean, thoughtful, and professional way, given what AGL represents to the entire gem trade, suggests that they could also proceed with using the AGL name because they lack the sensitivity to, and understanding of, the complexities of the gemstone world.

Personally, I believe we'll weather the current economic storms and there will be once again be a healthy gemstone market. When this time comes, I believe CU will resurrect the AGL name. I believe we must all be alert to the possibility of this scenario taking place, and keep vigilant. And I also think we must be prepared to take a stand and inform consumers and collectors everywhere should this ever happen.

I'm now going to resume grieving....it is a sad, sad, sad state of affairs, indeed. 

Antoinette Matlins 

Opals on the half shell and more

As I mentioned in a news story on NationalJeweler.com, a new opal exhibit just opened up at the American Museum of Natural History in New York. 

Consisting of just 25 opals, the exhibit is small and confined to just one special exhibit case, so don't expect anything on the order of the expansive jewelry exhibits that the museum has done in the past,  like the one featuring Gold that debuted in 2006 or the one that focused on pearls held back in 2001. 

Still, if you're in New York and plan to visit the museum anytime soon, I'd recommend heading over to the Hall of Minerals to see these opals. (Since you can't take the stones out of the case —museum rules, it's not like a jewelry show—you have to sort of bob and weave in front of the display case a little bit to see the gems from all angles and to truly catch the interior "fire" that makes opals so unique.)

If  you can't make it, here are some photos snapped by National Jeweler's art director (illustrator and occasional photographer) Thomas Rosinski. Enjoy!

These are (from left): Australian black opals, a doublet, two triplets and a cabochon from Honduras, donated by William and Jeanne Larson.

Below is a carved precious opal from Andamooka, South Australia, a gift to the museum from Mr. and Mrs. William Wheeler.

These are Ethiopian fire opals from the Menz Gishe District, donated by Evan Yurman of David Yurman.

Penny Proddow's Death

A very bad day yesterday, when I learned that Penny Proddow, jewelry editor for InStyle, lost her battle with ovarian cancer.

I'm looking at two small sketches that rest on the base of my computer monitor. Three saguaro cactuses tower in the foreground of one, placed in context by a violet mountain and cerulean sky. In the second, a long, deep purple ridgeline looms over a solitary mesquite dignifying the scrublands.

Penny gave these to me when I ran across her at breakfast during the Tucson gem shows last year. At her table in the hotel buffet, she was doing two of the things she loved best, drawing and planning the day with her inseparable friend and colleague, Marion Fasel, who together with Penny constitutes the respected jewelry editorial staff at Instyle.

Penny loved the fine arts in a unpretentious way that I've seldom experienced in my life. She loved art for art's sake, whether teaching at the Met, which she did for years, or putting life's daily occurrences into context with a quote from classical literature or ballet. Because of who she was, it never seemed affected. Instead, it always raised the wonderful, incredible possibility that some people do care about the more important things in life.

I had met Penny many times through our work in jewelry. But I got to know her best a bit over a year ago when we traveled in a group to South Africa and Botswana with De Beers. I quickly got to enjoying teasing her about things like being the only person able to look perfectly assembled in the middle of a Land Rover safari trek. Penny had a great sense of humor to go with her modesty and fashion sense.

The next time I saw her after our trip, a number of us got together for lunch to reminisce. Penny arrived wearing a necklace of interconnected wire "elephants" that she had fashioned based on sketches she had drawn in Africa. I loved them, so of course she immediately unlinked four of them to give to each member of my family. We still have them hanging from the chandelier in the breakfast room. My sons love them.

What a very sad thing to lose such a great person. I've been watching Lance Armstrong's return to professional cycling, which he started by racing first a month ago in Australia then a week ago in the Tour of California. Before his retirement three years ago, Armstrong set a record for winning the world's greatest bike race that will never be surpassed, having won the Tour de France seven consecutive times. But his return, he says, is mostly about expanding the reach of his Livestrong efforts to fight cancer and spread awareness and support.

Work like his and, in our business, that being done by groups like the Jewelers for Children, make so much more sense to me as I experience terrible things like the loss of Penny Proddow. 

Most of all, right now, we'll miss Penny. I hope she's in a place as beautiful as her sketches.

Graff tours Graff

With a surname like Graff and a job covering the diamond industry, I’m constantly asked if I’m related to well-known diamantaire and billionaire Laurence Graff.

To answer this question once and for all, no.

To be honest, until I took this job, I had never heard of Laurence Graff. The most famous Graff in my mind was tennis player Steffi Graf—different spelling but possibly the same family. (It’s my understanding that my relatives added the extra “F” when they immigrated to the United States.)

In any case, this Graff opted last week to take a tour of that Graff’s relatively new store on Madison Avenue with help from Graff public relations director Danielle Rossi.

The store, which opened in November and is an upgrade from a smaller space Graff used to occupy nearby, didn’t disappoint.

My first observation about the store (I’ll skip all the boring details about the elegant décor, which is intended to be sophisticated yet not intimidating, etc., etc.)  is that it definitely was not dead.

People milled in and out, sitting with sales associates at the swank tables and pouring over pieces of dazzling diamond jewelry.

In a store like Graff Diamonds, there is no shortage of eye-catching pieces; Laurence Graff is famous for plunking down millions for some of the world’s most high-profile rough and polished diamonds, like the recent 478-carat rough diamond dubbed the “Leseli la Letseng” (the Light of Letseng), a diamond recovered from the Letseng le Terai Mine in the African kingdom of Lesotho.

Through manufacturing arm Safdico, Graff (Laurence, not Michelle) paid $18.4 million for the stone.

And while stones such as the 70-carat fancy intense-yellow cushion-cut ring sparkling from one of the rotating display cases can’t be missed, my favorite piece in the store was actually a dark-gray pearl ring surrounded by what could best be described as an art deco-inspired fan of diamonds.

Alas, however, as I discovered through chatting with Danielle, Graff doesn’t loan pieces, even to people with the same surname.

It looks like a moniker is all I will ever share with Laurence Graff.

Star sighting: Alicia Keys

Watching the 2009 Academy Awards, I found it hard to look past the proliferation of cream-colored gowns without adding quite a few of them to my favorites list (Penelope Cruz in vintage Balmain, Taraji P. Henson in glam Roberto Cavalli and Anne Hathaway in sparkling Armani Prive, to name a few). Yet it was almost a breath of fresh air to look out at the sea of neutrals and spot a few dashes of color.

With all the colorless diamonds and nearly white gowns, it’s no wonder critics gave kudos to Natalie Portman in a pink Rodarte frock and routinely called out Angelina Jolie’s stunning emerald drop earrings by Lorraine Schwartz. 

One of the looks I’m loving is this sunny style on singer and actress Alicia Keys. Keys hit the red carpet in lilac Armani Prive, and then did a quick-change for Vanity Fair’s Oscar party. Her “Champagne Bubbles” earrings and bracelet, plus “Orielle” flower ring, are all from Diamond in the Rough and feature more than 139 carats of micropave diamond accents and natural rough diamonds in a pale yellow hue.