Gemfields to Hold Kagem Mine Emerald Auction March 10-14

Emeralds from Gemfields Kagem mine.

Gemfields PLC is holding a Zambian emeralds and beryl auction from March 10-14 in Jaipur, India, where the mining company has a cutting and polishing facility. All of the gemstones will be from the Kagem Mine in Zambia that is owned by Gemfields.

London-based Gemfields has received international interest because it is the only mining company in the world that has incorporated a mine-to-market strategy for the emerald industry. Under the plan, emeralds would come from a single source so the origin of each stone can be traced from the mine to the retail jeweler. In addition, the company is trying to produce emeralds in a way that adheres to fair-trade practices and in accordance with environmental, social and safety standards.

As of now, all emeralds from the Gemfields-owned Kagem mine are cut and polished at the Gemfields-owned facility in Jaipur, or sold to the market uncut. To see its vision through, the company still needs to do the following:

* Build an exclusive network of manufacturers to purchase rough as well as cut and polished emeralds;

* Create a certification program that will tell consumers, among other things, the gem's origin or whether it is treated;

* Have third-party certification of the mine's environmental and social impact; and

* Develop a marketing program that will be used throughout the supply chain.

The company has been trying to establish its mine-to-market initiative since at least 2008. The worldwide financial crisis put the plan on hold. In fact, there was concern in the industry that the company wouldn’t survive. But it has come back and has been holding three auctions per year at different locations.

Gemfields have sent invitations to the top 30 emerald companies in the world and it expect a good response, the Times of India report. The previous year's auction sale generated $7.2 million from 28.9 million carats of rough emeralds and beryl across 56 separate lots, with 49 lots sold.

In another part of the Gemfield’s plan, it has received exclusive worldwide license to supply its gems to the Fabergé brand. Gemfield’s parent company, Pallinghurst Resources, also owns the rights to the Fabergé name. The company, famous for its luxurious eggs, has been re-branded as an exclusive international  jeweler.

LVMH Becomes the New Big Kid on the Luxury Jewelry Block

Bernard Arnault

For Bernard Arnault, the “King of Luxury,” the acquisition of Bulgari is somewhat unusual. Not because of the type of company being purchased, but because of what he gave up to acquire the Italian luxury jewelry house.

The deal is going to cost Arnault, LVMH chairman and CEO, more than 3.7 billion euros ($5.2 billion), consisting of approximately 1.9 billion euros in shares to the Bulgari family and about 1.84 billion euros in cash to buy out the other shareholders. In addition, the acquisition will dilute Arnault holdings of LVMH to 46.5 percent, while Bulgari will get a 3.5 percent share of the luxury goods conglomerate and become LVMH’s second largest shareholder. Bulgari will get two seats on the LVMH board, the family will continue to control Bulgari and Bulgari’s chief executive, Francesco Trapani, will lead LVMH enlarged watches and jewelry activities, which includes the brands TAG Heuer, Chaumet, Zenith, Hublot, Fred and De Beers. Philippe Pascal.

What does Arnault get in return? In a single swoop of his pen, LVMH’s jewelry and watch holdings will double (from 5 to 10 percent), enabling LVMH to take on its biggest rivals in the “hard luxury” sector, Switzerland’s Richemont, owners of Cartier, and the Swatch Group. He also gets one of the most famous luxury jewelry brands in the world, known for adorning the most glamorous Hollywood stars (including Elizabeth Taylor) and royalty.

Arnault was quoted as saying that hopefully it will show Hermès (a reluctant target of Arnault) that he is able to work with a family-owned company. However, that may be premature as the working relationship hasn’t yet begun.

Both companies say the deal will create a more efficient distribution system for Bulgari (which has been struggling to make a profit in recent years) and help it to expand its network of stores, particularly in high-growth areas such as China.

The stock markets seem to like the deal, as the LVMH price has risen since the merger. Those in the jewelry industry have raised questions on whether it will create a jewelry company that is less distinguishable from other luxury jewelers.

No matter what happens, one thing is certain, the luxury jewelry sector has a new player.

Rugged and Delicate, the Jewelry of Élise Bergeron

20k gold ring with purple sapphire.

The jewelry section of the Buyers Market of American Craft show in Philadelphia was energized with several new exhibitors presenting innovative concepts and designs. Among the standouts was Élise Bergeron. Technically, this is her second BMAC show. Last year’s show was to be the debut of her new company, but a snowstorm in Philadelphia caused the Quebec, Canada, resident to miss nearly the entire show.

22k earrings with cultured pearls.

Trained in both the visual arts and art history, Bergeron was formerly a museum curator and cultural officer for the city of Montreal before turning to jewelry design about 12 years ago and starting her own business last year. She specializes in casting and forging fine silver and high karat gold (from 20k to 24k), sometimes mixing the two metals, from a single piece into miniaturized rugged, yet delicate, sculptured shapes—matching them with colorful gemstones and cultured pearls. Some items take on the appearance of crumpled foil.

Bergeron does her own gold refining. In fact she says she loves the idea of using fire and her skills to create pieces of ornamentation from what was once a formless piece of precious metal.

“My work is more organic, less classical,” she says. “I think it has some character.”

Ellinghaus’ Dancing Pendants

14K pendant with black and white agate and garnet.

It’s easy to see that metalsmith Nancy Ellinghaus enjoys her work. “There’s nothing like picking up a hammer and making things move,” she said during the recent Buyers Market of American Craft show in Philadelphia.

14K pendant with opal.

Ellinghaus specializes in pendants in 14k gold or silver. She pairs her metal circular and wave-like shapes with a variety of colored gemstones. Some sparkle, others have depth of color. There’s a definite consistency in Ellinghaus’ style. Metal on the finished pieces are thin and curved with lots of open space. The gems appear  balanced on the metal. The finished pieces appear delicate and seem to twist and turn in space, like a ballerina.

“I’m very fond of negative space and I try to capture a sense of motion in all of my pieces,” she said.

LVMH to Buy a Controlling Stake in Bulgari

Bernard Arnault

Bernard Arnault has done it again. While no one was watching the chairman and CEO of LVMH Moët Hennessy Louis Vuitton has captured another prize: Bulgari.

In a few hours the two companies will announce that LVMH will purchase a 51 percent share of the Italian luxury jewelry house, according to the Financial Times and other published reports. The purchase will come in the form of a share swap. A person close to the deal told the FT that as part of the deal, Francesco Trapani, Bulgari’s chief executive, will take a senior position in the LVMH group, while Bulgari family members will get board representation.

According to the report the Bulgari family is united in agreement for the sale. This is in contrast with LVMH’s 20-percent position in Hermès, the Parisian luxury house, which is still being talked about in luxury circles. This deal was done in late 2010 through a complex derivatives position without the knowledge of the heirs of the Hermès family, who own 70 percent of the fashion house. The family has publicly voiced its disapproval. 

Update, March 7, 2:35 a.m EST: LVMH just released its announcement of the acquisition with addition information. Upon completion of the share transfer process, LVMH said it will issue 16.5 million shares in exchange for the 152.5 million Bulgari shares currently held by the Bulgari family, who will become the second largest family shareholder of the LVMH Group. In compliance with the Italian Stock Exchange regulations, LVMH said it will submit a Public Purchase Offer at the price of €12.25 per share on the shares held by minority stockholders.

The statement further defines Bulgari executives’ positions in LVMH. Paolo and Nicola Bulgari will remain chairman and vice chairman of the Bulgari S.p.A. Board of Directors, respectively. The Bulgari family will have two representatives on the LVMH Board of Directors. Trapani will join the executive committee of LVMH and will assume, in the second half of 2011, the management of the LVMH enlarged watches and jewelry activities, which includes the brands TAG Heuer, Chaumet, Zenith, Hublot, Fred and De Beers. Philippe Pascal, the current head of jewelry and watch group, will remain on the LVMH executive committee and be given new responsibilities within the Group, the statement said.

“Our entrance into LVMH will allow Bulgari to reinforce its worldwide growth and to realize noteworthy synergies, in particular in the areas of purchasing and distribution,” Trapani said. “Bulgari and these brands will be able to invest and innovate even further to become the world leader in the high end segment.”

Arnault added: “We share the same culture in terms of respect for identity and roots of the brands, quest for excellence, creativity and innovation. As is the case with LVMH, the Bulgari family shareholders are directly involved in managing the company, they are entrepreneurs that know and excel in all aspects of the business, from the creation of the product to after sales service. It is for these reasons that we immediately understood each other and agreed on the way we would work together.”

Intricate and Inspired High-Karat Gold Jewelry from Alchemic Synthesis

Greek Tsavorite Necklace. 22K gold, tsavorites, 1st century Roman loop-in-loop chain.

One of the bright spots of the recent Buyers Market of American Craft show was meeting Cynthia Alderdice and Lois Mansfield, who co-own and operate Alchemic Synthesis Studio in Annapolis, Md. The BMAC show (held February 17-21) was their first time attempting to appeal to a wholesale audience. Hopefully, it won’t be their last.

The collaborating artists design one of a kind and limited edition pieces in 22K and 24K gold and fine silver. Often the pieces are embellished with gemstones, pearls and enamels. Their work embraces many cultures and employs several techniques. These veteran goldsmiths and jewelry designers are especially skilled in the ancient Etruscan technique of creating granulated 22k gold. They have years of experience in varied art media such as painting, printmaking, sculpture, enameling and, of course, metalsmithing. It is evident that they love their work and love working together.

Their commitment to technique, use of high quality materials, their intellect and passion, and their inspiration from cultures around the world is evident in their designs. They combine materials and techniques that result in layered pieces of varying textures and intricate details.

For example, their Greek tsavorite necklace (top picture) employs no fewer than four separate techniques, from the pin-cushion-like center piece to the rope-like outer edge on the larger centerpiece; to the more circular pin design on below. The clasp for the chain unlike the rest of the jewelry has a smooth finish. The finishing golden touch is the loop-in-loop chain (yes they make own multiple-loop chains), that are as intricate in technique and design as the rest of the piece. Of course, the finale is the two tsavorite gemstones. 

Awakening, tooled 22K gold, cloisonné enamel, patterned fine silver, faceted tourmaline stone, 2nd century AD Roman hand-woven 22K gold and fine silver hammered pinched loop chain.

Another example is, Awakening (above), a pendant that combines cloisonné enamel technique with a design inspired by Japanese art, gold granulation technique, patterned fine silver and a and 22K gold and silver chain hand-woven using a 1st Century Roman technique. There are additional details on the back of the pendant that I'm unable to show.

And they do it all with a smile.

J. Rudy Lewis Jewelry Searches for Historical and Cultural Truths

Victoria's Cuff in silver and brass with leather.

Metalsmith J. Rudy Lewis had one of the shorter commutes of all the exhibitors at the Buyers Market of American Craft show. That’s because he lives in Philadelphia where the trade show for fine craft and art products was held February 17-21.

Lewis works with gold, silver and leather. He produces jewelry for women, men and children, in some cases his pieces can be worn by either sex. They are roughly finished by hammering and often paired with rough diamonds. His cuffs, whether metal or leather or both, wrap around the arm.

“They are hand-cut and finished myself. The wavy patterns represent an ancient of older look,” he said. "The hammering and wrapping represent ritual.”

His designs and the stories describing his work are influenced by his interest in history and culture. His recent freeform brass, silver and leather cuffs he presented at the show reflect these interests.

For example, his Victoria’s cuff (top photo) has the shape and appearance of a woman’s corset, particularly with the vulture head buttons. It is available in brass and silver and can be matched with hand-fabricated leather. 

His Uluru Dreaming cuff (left) is an even more extreme example of Lewis’ look into the past, an extremely roughly forged metal that looks torn and tattered in some places that is dotted with various rough diamonds. He says the rough diamonds give the cuff a “cave effect,” and that the work is a representation of “history, art and a traveler’s journey.”