Lois Berger’s Pearl Walk

Strands of Nucleated Chinese Pearls at the Sea Hunt booth

Pearls are not just beautiful, they are complex. There are many ways of growing pearls these days and a seemingly endless number of ways to label them and quantify their beauty and value. All of this was made even clearer to me during the recent AGTA GemFair Tucson when I participated in Lois Berger’s annual “Pearl Walk.”

Lois Berger (right) speaks with Gina Latendresse of American Pearl Company

Berger is an international authority on pearls. She is senior gemology appraiser of Fuller & Associates, and pearl reporter for The Guide, Gemworld International's influential pricing guide in the gem industry.

A baroque beauty from King's Ransom.

In addition to her position in the industry, Berger holds another title that is far more valuable: Sweetheart. At more than 80 years of age, she trudges through the Tucson Convention Center with a large bag on wheels (Who knows what’s in it?) and a big smile on her face. She takes her job seriously as she is at the show from opening till closing working non-stop. Afterward she organizes large dinners and other events for her friends and associates—if she doesn’t have any business events to attend. Although busy, she always has time and advice for others and instantly befriends strangers as she did with me.

A creative way of using Chinese pearls in jewelry from A & Z Pearls.

Berger leads what has become known as the Pearl Walk, where she takes pearl experts and enthusiasts in the jewelry industry to a handful of pearl exhibitors where they present new products, interesting finds and provide a personal account of the industry. This year we visited five pearl wholesale suppliers: American Pearl Company, King’s Ransom, A & Z Pearls, Imperial Deltah and Sea Hunt Pearls.

At top blister pearls and below fossilized pearls from Kansas.

Providing information for consumers to make good, informed choices when buying jewelry is one of the goals of my blog. However, I am not a pearl expert. If you go to the websites of these companies you’ll gain a great deal of knowledge about pearls. Also, check out the Pearl-Guide website.

American Pearl Company

This company specializes in American natural and cultured pearls. In these two videos, Gina Latendresse, president of the Nashville, Tenn.-based company shows fossilized pearls found in Kansas and examples of blister pearls, a pearl that developed attached to the inside of a mollusk's shell.

King’s Ransom

Betty Sue King, the self-claimed “Pearl Goddess,” shows a variety of examples of Chinese nucleated freshwater pearls that her Sausalito, Calif.-based company has in its inventory. As an added bonus, pearl expert Elisabeth Strack of the Gemological Institute of Hamburg, explains the species of the pearl.

A & Z Pearls

In the first video, Avi Raz of the Los Angeles-based company discusses the improved quality of the Chinese pearls and how one can create jewelry from it. A picture of the piece of jewelry being passed around is above. In the second video, Raz shows how he meets market demands for lower prices without reducing quality by mixing pearls with colored gemstones in jewelry.

Imperial-Deltah

In these two videos, the appraisers in the audience couldn’t contain their excitement when Peter Bazar of the East Providence, R.I. based company showed their inventory of “crown” quality Akoyas, Golden South Seas and “crown” quality freshwater pearls.

Sea Hunt Pearls

Jack Lynch of the San Francisco-based company that specializes in Asian cultured pearls shows a variety of Chinese nucleated pearls in various colors and sizes so large that he was unable to measure them with his millimeter gauge.

More videos from the Pearl Walk are available at the Jewelry News Network channel on YouTube.

Zale Corp. Profit Lauded as a ‘Turning Point’ for the Company

Zale Corp. said Wednesday that its year-over-year net income in the fiscal second quarter rose 400 percent to 27.2 million, compared with $6.7 million for the second quarter of the prior fiscal year.

Revenues for the quarter ended January 31, increased 7.6 percent to $626 million, the Dallas-based jewelry and diamond retailer. Same store sales for the period increased 7.9 percent, compared to a decrease of 11.2 percent during the comparable period in the prior year. At constant exchange rates, which exclude the effect of translating Canadian currency denominated sales into U.S. dollars, same store sales increased 7 percent for the quarter.

The company achieved gross margin on sales of 50.3 percent for the quarter, compared to 49.8 percent in the comparable quarter last year.

“Our financial performance for the critical second quarter reflects the collaborative efforts of our total organization focusing on one objective – delivering a successful holiday,” said Theo Killion, Zale Corp. CEO. “In doing so, we’ve taken an important step towards our goal of returning to profitability.”

“This quarter marked a turning point for the company as we returned to positive same store sales,” added Matt Appel, Zale Corp. CFO. “We are pleased with the results to date from our turnaround initiatives.”

Selling, general and administrative expenses were $258 million, or 41.2 percent of revenues, in the quarter, compared to $252 million, or 43.3 percent of revenues, in the same period last year. Its operating income for the quarter was $44 million compared to an operating loss of $3 million in the prior year quarter. Operating margin improved $46 million, or 750 basis points, to 7 percebt for the, compared to negative 0.5 period in the same period last year.

The company incurred income tax expense of $6 million for the period, compared to a benefit of $12 million in the comparable period in the prior year.

Inventory as of January 31, stood at $777 million, an increase of approximately $39 million from Jan. 31, 2010, in anticipation of the Valentine’s Day selling period. As of January 31, the company had outstanding debt of $385 million, compared to $368 million as of January 31, 2010.

Zale Corp. is a leading specialty retailer of diamonds and other jewelry products in North America, operating approximately 1,870 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale Corp.'s brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda.

An Afternoon with the Hope and Wittelsbach-Graff Diamonds

Gary Roskin's "Evening with the Blues" presentation at AGTA GemFair

Gary Roskin, one of the world’s leading gemologists as well as a longtime educator and writer, was one of 10 gem experts who examined and photographed the Hope and Wittelsbach-Graff diamonds—the most famous blue diamonds in the world—to determine whether their origins were the same.

The event took place Jan. 21, 2010, inside the “Blue Room” (the outer-room of the gems and minerals vault) of the Smithsonian National Museum of Natural History. Roskin documented the event and has been writing about it on his website, the Roskin Gem News Report, in series titled, “An Evening with the Blues.” More recently, he brought this story to life during a presentation at AGTA GemFair Tucson. Below are seven video excerpts from that presentation.

The Natural Beauty of Carina’s Creations

"Zillians" - Brazilian Tourmaline

Organic jewelry is commonly referred as jewelry made from once living organisms. For Carina Rossner it means using recycled silver and gold that rests in a natural state after being melted and teaming it with minerals and gems with minor enhancements. The results are one-of-a-kind objects of adornment made of irregular (organic) shapes and forms that exude a rugged beauty. 

"Pink Trio" - Colbalt Calcite

I first met Rossner, who operates under the name Carina’s Creations, early this month at the Gem & Jewelry Exchange show in Tucson, Ariz. I then saw her again just a few days ago at the Buyers Market of American Craft show in Philadelphia (more on that event in the coming days). She hadn’t seen her Palo Alto, Calif., home in weeks—a far different lifestyle for the Harvard graduate who had a successful Silicon Valley career.

"Ocean Storm" - Ocean Jasper

 She does all of the lapidary work and metalsmithing herself in her studios in Palo Alto and nearby Menlo Park. The self-claimed “rock hound” sources her gems and minerals from all over the world, looking for shapes and colors that will transcribe into the types of finished products that define her work. “I don’t use the most ‘precious’ of specimens, preferring instead those that illustrate the physical properties of the mineral or stone,” she said. She then shapes the material into wearable pieces by cutting, trimming, and polishing them.

She has five techniques of melting and creating her organically formed precious metals, which result in several shapes, such as irregular teardrops and wraps.

"Embers" - Spessarite

“The final step is to create a marriage between a particular specimen I have prepared and a silver vessel worthy of its natural beauty,” she said.

Most of the pieces end up as pendants and earrings, but she says she is expanding into brooches and wrist cuffs and is exploring other forms of wearable art.

"Spells" - Chaorite

Barbara Westwood’s Bold Designs

An opal from from the Christensen mine in Andamooka, Australia, cut by Paul Christensen is framed in 18k gold and diamonds. It retails for about $140,000.

Dramatic colors, distinct shapes, and artistic expression are among the characteristics of Barbara Westwood’s jewelry. Large gemstones of varying shapes, colors and designs create central themes often highlighted by high-karat gold, diamonds and other precious gems. These pieces are designed to stand alone or complement her other creations.

Black onyx hearts carved Steve Walters and topped with a precious gem (such as citrine, blue topaz, pink tourmaline and rhodolite garnet) The glittery material on some of the hearts are Drusy. Each item retails from $3,000 to $4,000.

I caught up with Westwood and her husband and business partner, Sky Hall, at the Gem & Jewelry Exchange show in Tucson in February during a couple of pauses from the throngs of people viewing her signature designs. It was a long way from Gdańsk, Poland, where I first met the couple two years ago. Westwood was being honored by the Amberif International Fair of Amber, Jewellery and Gemstones for her work. For the trade fair, she created a line of amber jewelry, adding yet another material to her vast palette. 

This single piece of ametrine is cut and carved like a cameo by Tom Munsteiner and framed with 18k and diamonds. This is a one of a kind and one piece. It retails for $23,500.

NRF Forecasts 4% Increase in Retail Sales for 2011

Retail industry sales (which exclude automobiles, gas stations, and restaurants) will increase 4 percent from 2010, according to the National Retail Federation 2011 economic forecast. The retail trade association said the “cautiously optimistic outlook” comes on the heels of seven consecutive months of retail sales growth and better than expected holiday sales.

Consumer spending ended on a strong note in 2010 thanks to robust holiday spending figures, the prospects for economic growth are starting to look better, NRF said. However, small businesses hiring freezes and higher energy costs for consumers could curtail the speed and strength of the retail spending momentum.

“With retailers leading the charge, the economic recovery appears to be gaining some steam,” said Matthew Shay, NRF president and CEO. “The fate of the Main Street resurgence ultimately rests with policymakers on Capitol Hill. As Congress begins tackling key issues like deficit reduction and tax reform, it is critical we support policies that encourage job creation, consumption and business investment.”

According to NRF’s latest Retail Sales Outlook report, while consumers are once again showing a willingness to spend, inflation from rising commodity prices and continued high unemployment could become obstacles to economic growth.

Gold Jewelry Demand Up 17% in 2010 led by India and Asia While Demand in U.S. and Europe Remains Sluggish

Annual demand for gold jewelry rose 17 percent to 2,059.6 tons as Asian consumers continue to drive jewelry demand, the World Gold Council reports. The rise in annual average prices over the same period was 26 percent.

In value terms, this resulted in record annual jewelry demand of $81 billion in 2010, according to the WGC’s quarterly Gold Demand Trends report, a 47 percent increase over 2009.

In India, 2010 was a record year as gold jewelry demand rose 69 percent to 745.7 tons. In local currency terms, Indian jewelry demand more than doubled for the year; boosted by a 20 percent rise in the rupee price of gold combined with a 69 percent increase in the volume of demand pushed up the value of gold demand by 101 percent.

“The rising price of gold, particularly in the latter half of the year, created a ‘virtuous circle’ of higher price expectations among Indian consumers, which fuelled purchases, thereby further driving up local prices,” WGC said in its report.

In China, 2010 saw annual gold jewelry demand increase 13 percent to 400 tons. The value measure of demand was more striking, rising 41 percent.


Meanwhile, In the U.S., the long term downtrend in demand for gold jewelry continued throughout 2010, although the pace of decline slowed somewhat, WGC said. Fourth quarter demand of 47 tons was 16 percent below year-earlier levels, translating to a decline of 14 percent on an annual basis. U.S. demand in value terms in 2010 rose by 8 percent to $5 billion.

European gold jewelry consumers, facing continued economic problems, were similarly discouraged by higher gold prices and tonnage demand declined accordingly in these markets, WGC said. Italian demand was 16 percent weaker year-on-year in 2010. Full-year demand in the UK was similarly weak, down 14 percent. On a value basis demand was slightly more robust. Annual demand in Italy was up 12 percent, while UK demand increased by 10 percent.

In Hong Kong, annual jewelry demand reached a 10-year high of 20.6 tons; while demand in Taiwan was less resilient to the higher gold price, resulting in a jewelry demand decline in 2010 of 7 percent, year-over-year.

Gold jewelry demand throughout the rest of the Asian region was weaker relative to 2009 levels as consumers were deterred by soaring gold prices. All markets recorded double digit year-on-year losses, both in the fourth quarter and 2010 as a whole. In Indonesia, Japan, Thailand and South Korea, consumers shifted to lower carat and/or gem-set product and, in some cases, branded silver. In Indonesia in particular, average purity of gold jewelry suffered a notable decline, WGC said.

The one exception was Vietnam, where 2010 demand of 14.4 tons was just 5 percent down on 2009. “When considered in the context of a 30 percent increase in domestic gold prices over the same period, 2010 demand can be considered robust,” WGC said.

The value of annual demand in Japan held steady at 2009 levels, WGC said.

Consumers across the Middle East region responded to high and volatile gold prices in the fourth quarter by cutting back on their demand for gold jewelry. 2010 full year demand was between 6 percent 10 percent below 2009 levels for each of these markets.

In Turkey, 2010 annual demand holding broadly steady at 2009 levels. However, the comparisons are being made with exceptionally weak 2009 numbers, WGC said. By value, jewelry demand, 2010 demand increased by 20 percent, year-over-year. “However, in a historical context, this is still well below the levels of two-three years ago, WGC said.

Russian gold jewelry demand grew 12 percent in 2010, to 67.5 tons.

Overall, the WGC said annual demand of all gold usage (including as an investment and its use in manufacturing and technology) increased 9 percent to 3,812.2 tons, which was worth approximately $150 billion.

“This performance was mainly attributable to strong growth in jewelry demand, the revival of the Indian market and strong momentum in Chinese gold demand and a paradigm shift in the official sector, where central banks became net purchasers of gold for the first time in 21 years. The WGC expects total gold demand to remain resilient across jewelry, investment and technology sectors over the coming quarter.”