How the recession doomers got the U.S. economy so wrong

The ultra-wealthy have never been richer and they’re spending like crazy

– Pam Danziger: Luxury customers putting purchases “on hold”

Retail rents rise in second quarter

Walmart adds advertising in store aisles

Kering-Valentino deal helps reignite luxury M&A market

Diamond prices plummet in “difficult market”

– De Beers faces “next quartz crisis” (subscription)

Botswana plans new sales channel

– Next for De Beers: a Namibia deal

Insurance companies think lab-grown diamonds are a “risk headache”

No pay disparity between lab-grown and natural diamond polishers

Angry letters show tensions between Indian bourses

555 ct. black diamond bought with misappropriated funds, says SEC

Over $10 million in jewels stolen from Paris Piaget

How a GPS-enabled Rolex led to the capture of a robbery crew

The great Rolex recession is here

– Discontinued Daytonas helping Rolex prices

– Second-hand watch prices slump to two-year low

Aurate partnering with Helzberg on collection

John Hardy appoints new president and CEO

– Reed Krakoff’s first John Hardy collection is here

IGI names new director of operations and business development

Lagos promotes Amanda Willinger to chief revenue officer

Brosway Italia hires two U.S. VPs

Macy’s supply chain officer steps down

Interview with new Smithsonian gems curator

– NPR interviews retiring curator Jeffrey Post (as does JCK)

How green is your watchmaker?

Hermès has $1 billion in watch sales in its sights

“How culture drives the Swiss watch industry” (subscription)

Tiffany lands on NRF’s list of fastest-growing retailers

Jesper Nielsen claims Pandora owes him money (translation)

Customer flabbergasted at eco-impact of jewelry packaging

Colonial diamonds overshadow Tower of London’s most interesting objects

“Beefy brawlers” get into fight in Diamond District store

New laser slicing technique for diamond semiconductors

Anti-counterfeiting tech draws on unique qualities of micro-diamonds

Drake bought Tupac’s ring for $1.01 million

– It’s Drake’s latest auction win

Kelly Clarkson says you can throw diamonds at her (but that’s it)

Which Sex and the City engagement ring was the most expensive?

From the Podcast     

The Jewelry District, Episode 101: Guest Jeffrey Post

Have a great weekend!

– Email: rbates – at – jckonline.com.

– Twitter: @robbatesjck

– Connect on LinkedIn

 (Photo: Getty Images)  

Good news! Fewer jewelers are closing their doors

– New data shows recession less likely

– Conference Board still sees one coming

How artificial intelligence will change retail

– How AI will affect the watch business

LVMH wants to remodel every Tiffany store

Jewelry resellers on Amazon will be treated more fairly

Botswana will contribute more to diamond marketing, De Beers says

– De Beers’ prospects “blemished”

– De Beers now one of the “big questions for Anglo”

– “Diamonds for Development” site launched

– De Beers wishes Masisi happy Presidents’ Day

Russian finance ministry launching jewelry marketplace (translation)

Alrosa CEO Pavel Marinychev named in latest U.S. sanctions

What the Rough Diamonds TV series gets right

Former jewel thief tells how he used to steal diamonds (video)

Four tips for the next generation of diamond dealers

Will Mumbai diamantaires relocate to new Surat Diamond Bourse?

Indian government extends Customs relief to lab-grown diamonds

Diamond Foundry hires tax lobbyist

New study looks at how diamonds come to Earth’s surface

Paul Zimnisky interviews Hans Merket of IPIS (audio)

“Recycled gold” not really sustainable, panel agrees

Alaska asks Supreme Court to undo EPA Pebble mine veto

Charlotte jeweler Ernest Perry dies

Designer Peter Brams dies at 77

Minnesota jeweler sentenced for tax evasion

Stuller promotes two to executive directors

Frederick Goldman appoints director of sales

Diamond Dealers Club reelects Krischer as president

Hodinkee, Tudor veteran Russell Kelly joins Fourtané

Frédéric Arnault says he’s not moving to Bulgari

TAG Heuer plans more stores

The “genius” of Patek Philippe’s multigeneration master plan

Watch manufacturer Zenith throws doors open to public

The watch universe in Singapore is expanding

China’s Lukfook Group opens store in California

Tiffany displaying its last pink diamonds

Tiffany’s chief gemologist on the joys of working with the world’s most precious stones

Tiffany archives book “is a gem”

Pendant watches come back in style

Watches that can be fruit, flowers, or fauna

Tupac Shakur’s self-designed ring highlights Sotheby’s hip-hop sale

– Ring sells for over $1 million

A$AP Rocky’s jeweler shows off rapper’s custom-made grenade

Is Beyoncé’s Tiffany & Co. dress made of diamonds?

Andy Griffith Show actress Betty Lynn’s diamond engagement ring nets $1,800

Former Vogue editor: Kate Middleton’s indifference to diamonds is “disappointing”

– Her most significant jewelry pieces

The “Jewish history of jewelry”

Couple find rare pearl while eating clams, turn it into engagement ring

Woman considers engagement ring “tacky”

From the Podcast     

The Jewelry District, Episode 100: Vic’s Custom Design, a Jewelry Conference, and a Podcast Milestone

Have a great weekend!

– Email: rbates – at – jckonline.com.

– Twitter: @robbatesjck

– Connect on LinkedIn

 (Photo: Getty Images)  

Quality Gold cancels planned IPO

Everledger Australia placed in liquidation

David’s Bridal survives second bankruptcy

Surat Bourse is “world’s new largest office building”

– Indian traders “divided”

– Bourse “faces significant challenges”

Botswana president: We were ready to walk away from De Beers

– De Beers’ Paul Rowley not so sure

– De Beers sales fall amid slow trading

Will high-net-worth individuals want diamonds in their portfolio?

Top takeaways from Dubai lab-grown conference

– Other insights here, here, and here

How—and why—you should trace the origin of your jewelry materials

– Cristina Villegas has other conference highlights here, here, and here

Hans Merket reviews the Kimberley Process (translation)

– Blood diamonds “and the lottery of Earth”

Report: Isabelle dos Santos behind Dubai diamond company StarGems (translation)

– “Mismanagement” enabled dos Santos to illegally divert millions

Video shows moments after millions in jewelry stolen from Brink’s truck

New “revenge” viral TikTok jewelry scam

Fake Rolex watches make up half of the luxury replica market

Swiss watch exports show strong growth in first half of year

Watch company share prices rise following reports of buoyant sales

China could be the luxury industry’s next “sore spot”

How Cartier became everyone’s new favorite old watch brand

Cartier’s new BTS spokesperson crashes its website

TAG Heuer makes mark on the luxury watch market

Rolex certified pre-owned program expands

Longtime Rolex board member leaves

Kering appoints two deputy CEOs in corporate shake-up

Natural Diamond Council promotes Grace Isley to retail strategy and partnership manager

Authentic Brands hires new CFO

Mineral specimen and gem collector Barry Yampol dies at 85

Interview with Kendra Scott CEO Tom Nolan

Interview with Pandora CEO Alexander Lacik

– Pandora acquires 14 stores in Colombia

Connecticut jeweler to give away 2 ct. lab-grown diamond

Zales, Rocksbox partner on jewelry rental

Tiffany & Co. unveils renovated Tokyo flagship

Cristiano Ronaldo invests in watch site Chrono24

Michael Schechter takes another look back at Gemvara

“The dirty little secret that could bring down Big Tech”

Amazon letting people pay at Whole Foods with a hand wave

Barrick Gold targeted by Russian cybercriminal group

U.S. Treasury sanctions Russian precious metals companies

Monopolies have killed South Africa’s marine diamond industry

De Beers ordered to pay for salvage of equipment

Seven assets owned by former De Beers chair Nicky Oppenheimer

Diamond dealer lists New York townhouse

TikTok star Sophia Begg sues jewelry brand owner following their collaboration

Erika Jayne scores legal win over $750K diamond earrings she had to surrender

Gambling addict husband tries to sell wife’s jewels, but they’re fakes

Engagement ring eaten by fish among beach-related insurance claims

Soccer team to transform grass into lab-grown diamonds

Media Watch

Mental Floss looks at 10 of the world’s most controversial gemstones

From the Podcast     

The Jewelry District, Episode 100: Vic’s Custom Design, a Jewelry Conference, and a Podcast Milestone

Have a great weekend!

– Email: rbates – at – jckonline.com.

– Twitter: @robbatesjck

– Connect on LinkedIn

 (Photo: Getty Images)  

Samuels talks with JCK about starting out, his memories of industry icons like Harry Winston and M.B. Zale, and his views of the jewelry business’ future:

How did you get started in the gem trade?

My brother had gone into the diamond business. Then when it was my turn to do something, I learned diamond cutting. I specialized in emerald cuts. [Cutter] Lazare Kaplan had developed the oval. He never patented it, so I started making it, too. People laughed at it. They called it the shmoval.

I was an okay cutter, but I didn’t really enjoy sitting at the bench. What I enjoyed was taking a rough diamond and creating a beautiful item. But I didn’t enjoy the work itself.

So when did you leave cutting?

By the 1950s, I started buying on my own. I’d buy from dealers who were bringing back rough from Belgium. After 10 years of struggling here in the States, I said, “I have to make a trip to Belgium. Why give these guys a profit?” For a while, I went to Antwerp almost every other week.

My forte was knowing where the diamond came from. I could look at a diamond and tell you if it was from Sierra Leone, Angola, or the Congo. I knew that certain goods would turn better color. I could see the nature of the material.

How did you begin to specialize in big diamonds?

We were one of the first in New York to trade in them, besides Harry Winston. One of the first big stones I bought was a 98-carat rough diamond. I paid $300,000 for it. That was a huge amount of money. After I bought it, I panicked. I called Gerald Rothschild, of I. Hennig. I knew Harry Winston would go to the [De Beers] sights in London, and said, “Gerald, you have to do me a favor. I need to talk to Harry Winston. Can you tell me what flight he’s on?”

He told me Winston always flew TWA. So I phoned TWA. In those days, you were able to call up and say you’d like to sit next to someone. They said, “Mr. Winston is sitting in first class.” Back then, I didn’t know what first class felt like. So I paid what was then a lot of money for me to sit in first class.

I got on the plane, and as I’m putting up my luggage, Winston said, “Marvin, what are you doing here?” I had him for eight and a half hours. He was in the window seat, and I was in the aisle seat. I said, “I just bought a 98-carat stone, and I can make a 50-carat emerald cut.” He said, “Listen to me. You’ll never sell it.” I went into a panic.

He said, “See if you can make two diamonds out of it.” I made one stone: a 47-carat emerald cut. No one wanted to buy it. At that time Christie’s was holding its first jewelry auctions. I went to Hans Nadelhoffer, the head of Christie’s Geneva, and he told me he’ll take it. He auctioned it off for $440,000. In the end I made a nice profit.

At what point did you become a De Beers sightholder?

In 1967. It took about 10 years. De Beers in those days couldn’t come to America, so it was challenging for them, because they didn’t know much about U.S. companies.

De Beers back then was a well-oiled machine. They knew when you made money, they knew when you lost it. If you went through a year where business was bad, they’d let you earn back what you lost.

You dealt with a lot of giants in the industry. What are some of your memories?

The diamond people in those days were powerhouses. I remember I once finished a blue stone, a 22-carat emerald. [Van Cleef heir] Claude Arpels came up to the office, and he went from room to room. I said, “What are you doing?” He said, “I’m looking for incandescent light. Colored diamonds are worn in a ballroom. In a ballroom, you have incandescent lighting.” I finally found an incandescent lamp, and he put the diamond under it. He said, “Not for me. It doesn’t look good in this light.” And he was right.

Morris Zale was another legend I had the privilege of not only knowing but being his partner. I will never forget when he gave me a tour of his facility in Texas, and I asked him, “M.B., how many people work here?” He looked me right in the eye and, deadpan, said, “About half.”

I had the good fortune to subsequently partner with Zale Corporation and with Louis Glick on what I consider to be one of my crowing achievements—the purchase of an 890-carat rough stone, which we cut to the 407.48-carat fancy color flawless Incomparable.

What do you see as the future of the business?

Today I’m not so sure I would be able to accomplish what I did. I was in the business before the color machine, before computers. I could buy big diamonds and know what you would get from them. I used my brain, because that was all I had.

The trust we used to have is gone. I used to be able to call up Robert Mouawad and tell him, “I have a big stone,” and he’d say, “I’ll join you if you want.” Because he trusted me.

I always found the business a lot of fun. It was challenging, of course, but it was fun. And I miss it.

(Photos courtesy of Premier Gem)

FTC outlaws fake or paid-for customer reviews

Signet buys SJR National Repair, in bid to boost service offerings

– Signet moves up on NRF Top 100 list

How jewelers can cope with rising store crime

2023 retail jeweler midyear report

Default by Surat lab-grown maker grips market

Diamond Foundry denies it needs funds to finish factory

70% of Brits can’t tell the difference between lab-grown and natural (so 30% could?)

– DMCC says lab-grown, natural can coexist

– Lab-growns go “luxe”

De Beers reduces prices at second consecutive sight

Indian companies “forced” to polish in Africa

Botswana open to taking a bigger stake in HB Antwerp

KP shows rough diamond production “higher than expected”

Ekati owner plans expansion

Surat “loses its sheen”

Top five jewels don’t find buyers at Sotheby’s Hong Kong

India restricts imports of gold jewelry

What Michael Schechter learned from Gemvara

Brilliant Earth opening four new showrooms

Shane Co. asks customers to share jewelry memories

Jeweler Reza tries e-commerce strategy

Why jewelry designers use 11:11 in their work

Daniel Wellington wants to be bigger player in jewelry

Industry legend Marvin Samuels reflects on his diamond journey

Stuller promotes four to VP roles

Casio America appoints new chairman, CEO

Target appoints new chief marketing officer

CEO of diamond miner Lucapa steps down

De Beer family files charges against De Beers mine

Bulgari apologizes after Taiwan listing sparks fury in China

AGTA rejoins CIBJO

Conference to honor Pippa Small, Satta Matturi

Wrongly imprisoned man finds solace in jewelry making

Woman raises money for Ukraine through jewelry sales

Jewelry from extinct creatures indicates humans entered America earlier than originally thought

Anna Kendrick shares memory from Maine jeweler

Rick Ross buys “bonkers” $20 million Jacob & Co. watch

Meghan Markle’s diamond pinky ring has hidden message

Marilyn Monroe’s personal jewelry collection is “pretty surprising”

Heidi Klum takes a cold shower in black bikini and diamond body jewelry

Jewelry designer introduces luxury shoelaces

Media Watch

New Zealand TV and Australian radio (audio) find falling demand for diamond engagement rings

“Fake” diamond sales booming, says The Sun

From the Blog

Industry Legend Marvin Samuels Reflects on His Diamond Journey

From the Podcast    

The Jewelry District, Episode 99: Guest Jeffery Bolling

Have a great weekend!

– Email: rbates – at – jckonline.com.

– Twitter: @robbatesjck

– Connect on LinkedIn

 (Photo: Getty Images)  

If De Beers bent a knee during that deal, this time feels like the company was almost brought to its knees.

Though the two sides have hailed their new 10-year sales agreement—which includes a 25-year extension of De Beers’ mining licenses—as “transformational” and a “win-win,” not everyone believes De Beers won much here, except for removing a troublesome issue from its plate. Botswana’s diamond mines are highly profitable and will likely remain so going forward. However, analysts at RMB Morgan Stanley told Reuters that De Beers could lose as much as $200 million, or 15% of its earnings, from the deal. (De Beers CEO Al Cook responded that the analysts “misinterpreted” the arrangement.)

The agreement in principle was signed on June 30, right before the current one expired, with some details yet to be announced and others still to be finalized. It followed what local journalist Mbo Mguni called Botswana’s “most open debate [ever] on the country and the industry’s principal economic covenant.”

Headlines have mostly centered on Botswana winning the ability to sell 50% of its diamond production through state-owned Okavango Diamond Company (ODC) by the contract’s 10th year. That will be “indeed transformational,” former De Beers Botswana CEO Sheila Khama wrote in Mining Weekly, as “Botswana enters the big league of rough diamond marketing.”

At a press conference broadcast live Thursday on Facebook, minister of mines and energy Lefoko Moagi said that ODC—which currently tenders its goods—plans to set up a sight system, with regular customers buying regular allocations, similar to De Beers. A “noncompete” included in the last contract—which prevented ODC and De Beers from selling to the same customers—has been scrapped, though Moagi said Botswana plans to cultivate its own sales roster.

Moagi also provided a lot of new details on new De Beers contract. One is that De Beers and Botswana will partner on certain “exceptional” diamonds. “We will jointly find who is the best person to polish that stone,” Moagi said. “It won’t be chosen by De Beers alone, so we can both take accountability.”

De Beers will also establish entrepreneurship programs and educational institutions to train Batswana (people of Botswana) in skills like marketing and jewelry creating, and will collaborate with Botswana on a “world-class international jewelry manufacturing facility” that will employ 250 people.

If De Beers doesn’t meet certain beneficiation targets, it will “not be allowed to sell,” Moagi said. “Look at Surat, look at Antwerp, look at Tel Aviv. They take rough, they make it polished, they make [it into] jewelry. And they make a killing. We can’t be sitting on rough. That’s the value chain development. That’s the beneficiation.”

Under the new pact, De Beers will move some IT support and parts of the De Beers Institute of Diamonds grading lab (including its inscription services) to Gaborone. (See clarification below.) Moagi also said De Beers and Botswana will form an entity that will search for new diamond deposits, both in Botswana and abroad. The sales split will depend on each partner’s investment, Moagi said, adding that Botswana may also explore on its own.

There are also plans, according to Moagi, for a “Botswana diamonds provenance initiative” as well as a joint “natural diamond defense” to counter the threat of lab-grown diamonds, which could be separate from the Natural Diamond Council.

“We will together put money into marketing spend so that we market our natural diamonds and we tell the Botswana story,” said Moagi. “We have to make sure that we develop our marketing skills as Batswana, and it is not driven by De Beers alone.”

(Though if you want to tell a positive “Botswana story,” headlines like “Is Botswana Getting a Raw Deal From De Beers Diamonds?” don’t help.)

While these initiatives risk increasing Botswana’s much-lamented “diamond dependency” (the gems currently account for about 50% of government revenue), the two parties are also creating a Diamonds for Development fund meant to diversify the country’s economy. Moagi explained that the fund intends to invest in initiatives like solar power and tourism and build Botswana’s “knowledge economy.” It will be seeded by $75 million from De Beers, which could kick in as much as $750 million over the next decade.

The ownership structure of the fund has yet to be revealed, but De Beers spokesperson David Johnson said it will “be fully transferred to the [government of the Republic of Botswana] on the 75th anniversary of the discovery of diamonds in Botswana in 2042.”

Still, Khama wrote, the fund “begs the question of how a private company steeped in diamonds [can succeed] in diversifying Botswana’s economy where one administration after another has struggled to diversify Botswana’s economy for five decades.”

The new contract includes a possible five-year extension. However, the industry shouldn’t be surprised if the fireworks restart a decade from now.

“This is an evolving partnership,” said Moagi. “Who knows? Perhaps after the next negotiations, [Botswana] will take 100% of our diamonds, and De Beers will just do mining.”

Questions remain about another diamond deal that Botswana president Mokgweetsi Masisi announced this year, with HB Antwerp. In March, Masisi said his country was taking a 24% ownership stake in the 3-year-old company, which also won the right to buy choice goods from ODC. HB executives have said their deal with ODC will be an “exact replica” of their setup with Lucara, where both sides share revenue from the final piece of polished.

As was pointed out on Twitter, if ODC sells to HB, and Botswana owns 24% of HB,  Botswana will essentially be selling to itself. (The country also owns 15% of De Beers, the company mining the goods.) However, details on the HB deal remain elusive, with Moagi telling Botswana’s parliament this week that he couldn’t provide any as “there is no signed agreement [and] no final commercial terms to state.”

De Beers, on the other hand, has a deal. At a July 2 signing ceremony, Cook—who’s served as CEO for less than five months—struck an appropriately humble note, noting that De Beers did not have a “right” to Botswana’s goods. (The video of the signing includes a glimpse of former De Beers exec Stephen Lussier in the background. Lussier, who once handled government relations and has continued to consult for the company following his retirement in January, was said to be part of the team that helped land the deal.)

The signing ended with applause and a hug, but afterward neither side seemed all that happy. This was an unusually contentious negotiation, so a lot of hard feelings have surfaced over what has generally been viewed as a successful and enduring partnership. The animosity doesn’t seem to have gone away. Post-signing, President Masisi told reporters that his country got a “raw deal” in the past.

As has been stated many times, Botswana and De Beers need each other: The country has the diamonds, but only De Beers and parent company Anglo American have the resources and desire to get them out of the ground.

Even so, it doesn’t feel like their current connection is particularly warm or friendly. That could matter, in an industry where trust and relationships do.

This article has been clarified to note that not all of De Beers’ Institute of Diamonds will move to Botswana.

(Photo from the Republic of Botswana’s Facebook page)

New Botswana deal means De Beers could have less to sell

– Diamond experts hail agreement

– Signals “rocky road” ahead

– Minister of mines speaks about new pact (video)

– Signing ceremony (video)

– Paul Rowley discusses the deal (audio)

– Paul Zimnisky’s analysis on South African radio (audio)

– HB Antwerp arrangement questioned in Parliament

– Sheila Khama has more questions

– My thoughts: What now?

Namibia looks to renegotiate its De Beers deal

Indian lab-grown company reportedly goes bankrupt

– Bank gave it big loan

Alex and Ani closing 20 stores, Rhode Island headquarters

What happened to Gemvara?

TAG Heuer getting new leader, report says

What can luxury learn from Shein PR debacle?

Sarine to trace diamonds’ carbon footprint

“A crisis in green diamonds” (audio)

Lawsuit claims Harry Winston failed to file certain tax forms

Former employee says Tiffany items are “cheaply made”

FTC says fake reviews are now illegal

Indian authorities cite Dwarka Jewelers for loan fraud

Mumbai, Surat fight over diamond market share

Kiran Gems head reviews state of natural diamond industry

Russian diamond exports slowed, but not completely, following sanctions

How Wagner Group teamed up with Central African Republic “diamond mafia” and “plundered gold from Mali” (subscription)

Criticism of jewelry sale with Nazi shadow trails Christie’s

When it comes to rubies, Mozambique is the new star

Gübelin opens colored gemstone museum in Switzerland

Vicenza manufacturers are experimenting with technological advances

Gabriel & Co. appoints Elda Fistani VP of retail

Rough and Polished editor dies at 76 

Dallas’ piercing jeweler Wildlike making the big leap to Manhattan

Patek Philippe expands London flagship

Russian jeweler Sokolov opens first China store in pivot from West

Sotheby’s to auction Tupac Shakur’s self-designed gold, ruby, and diamond ring

British jeweler selling Taylor Swift-inspired engagement rings

Kim Kardashian wears $2 million diamond as a belt

Woman’s diamond fell out of ring but insurer refuses to pay

Summer can make people allergic to jewelry

Does sunscreen harm your engagement and wedding rings?

Media Watch

The New York Times on a former Tiffany exec’s pearl startup, heart-shaped gems,  a new André Chervin exhibit, and high jewelry houses taking it on the road

Financial Times on the Harvard jewelry summit, Tiffany buying big stones, the college driving jewelry innovation, pearls becoming “boys’ bling,” and the evolution of watch storage boxes

From the Blog

De Beers and Botswana Have (Finally) Made a Deal. What Now?

From the Podcast    

The Jewelry District, Episode 99: Guest Jeffery Bolling

Have a great weekend!

– Email: rbates – at – jckonline.com.

– Twitter: @robbatesjck

– Connect on LinkedIn

 (Photo: Getty Images)   

Happy Fourth of July to all who celebrate!

U.S. economy shows “surprising vigor”

On “D-day,” De Beers and Botswana stay mostly mum

– De Beers/Botswana saga chronicled in The New York Times

– This has been the “most open debate” on Botswana’s diamonds

– Botswana’s diamonds celebrated in postal stamps

Is De Beers’ venture into engagement rings really that shocking?

– Michelle Graff isn’t surprised

Federal Trade Commission tells influencers: if they pay, you gotta say

– Provides guidance in Q&A

– Agency proposes new rules regarding product reviews

FTC sues Amazon over Prime cancellation policies

– Amazon “poaches” former FTC officials amid antitrust lawsuit

Wagner Group benefits from gold trade, U.S. says

– U.S. government’s “Africa gold advisory”

– How Wagner tried to capture Central African Republic

Kimberley Process stats show no impact from Russian sanctions

– “Antwerp’s diamond dilemma”

Non-KP diamonds coming into Surat

State of the Art Jewelry Summit

– Jewelry industry must help fight climate change

– “Biggest issue facing jewelry industry”

– Speakers discuss company culture and artificial intelligence

– Cristina Villegas of PACT has more to say

Venetia mine becomes flagship in De Beers’ climate agenda

– De Beers part of planet-healing kelp project

Tiffany sets net-zero emissions target

Tiffany’s new NYC flagship catches fire

– Daily Mail has more photos

Tiffany, Cartier, Hermès sourcing diamonds from Armenia

Petra sees lab-grown diamonds becoming “separate product category”

CIBJO, International Grown Diamond Association agree to collaborate

How a 7.5 ct. lab-grown ended up in Jill Biden’s hands

Fugitive Jatin Mehta gets “outrageous” living allowance in London

Surat’s diamond industry has a “suicide problem”

– “Diamond city in distress”

Surat diamond traders form new association, ditch SDA

Alex and Ani closes 20 stores

– Vacating Rhode Island headquarters

Charles & Colvard renews credit agreement

What’s going on with Swatch Group?

– Watch brands should “leave retail to the experts”

Chanel files trademark lawsuit aimed at upcycled jewelry

– Marie Lichtenberg defies imitators with originality

JCK intervews gem dealer Dave Bindra

London Jewelers hires chief operating officer

Swarovski names chief supply chain officer

Claire’s has new exec VP and chief merchandising officer

British jewelry organization appoints new CEO

Jewelry chain apologizes for not accepting Puerto Rican license as U.S. ID

Princess Diana’s diamond and pearl auction is called off

Taylor Swift fans causing trouble for Pandora

You can now propose with a Crocs engagement ring charm

Rare Cartier Chiech emerges “from the shadows”

Shopper makes “incredible find” in $4 jewelry thrift bag

Dog finds woman’s diamond months after it went missing

Budding business owners reopen jewelry and lemonade stand

Media Watch

Time columnist makes “case against engagement rings”

Portuguese newspaper on natural versus lab-grown (translation)

Brides: the pros and cons of GIA diamonds

From the Podcast

The Jewelry District, Episode 98: JCK Las Vegas Report, Lab-Grown Reset, Tracing Diamonds

Have a great weekend!

– Email: rbates – at – jckonline.com.

– Twitter: @robbatesjck

– Connect on LinkedIn

 (Photo: Getty Images)  

Lightbox engagement rings are De Beers’ biggest gamble yet

– CBS News Minnesota seems excited about it (video)

– National Jeweler isn’t surprised

De Beers sales slide as weak trading continues

– CNBC: Diamond prices off from their peak

– Demand increases for gems 0.75 ct. and under

– Botswana revenues come under pressure as diamond trade slows

– De Beers’ new CEO talks about partner expectations

The diamond industry’s origin conundrum

WD Lab Grown looking for funding, sources say

Modi gives Biden a 7.5 ct. lab-grown diamond

The race for the 100 ct. lab-grown

JCK show attendance up 8%

Jewelers Board of Trade’s Erich Jacobs on the state of the industry

Neiman Marcus weighs sales of Bergdorf Goodman, entire company

Patek Philippe “shakedown” should not succeed

Everledger collapse puts Queensland government on the firing line

FTC sues Amazon over Prime cancellation policy

Don Roberto settles data breach lawsuit

No end in sight for Folli Follie trial after new deferment

Austin, Texas, jeweler’s daughter-in-law pleads guilty in murder for hire plot

Inside fashion’s underbelly: how models are exploited

Gemstone dealers in Mozambique struggle against multinationals

– New study looks at how mining industry violates indigenous people’s rights

Ruby dealers hope for benefit from Estrela de Fura sale

Mercury Free Mining enters promising new stage

Sotheby’s appoints global head of content

Marion Fasel becomes GEM Awards chair

Daniel Schneider promoted to president of Pure Grown Diamonds 

Cartier creative director wants to approach stones with “humility”

De Beers Jewelers “doing diamonds differently” for Gen Z

Gen Z wants jewelry with gender fluidity

Western nations look the other way on money laundering in UAE

Surge in China’s demand for gold slows as economy stumbles

South African newspaper reviews bio of Harry Oppenheimer

234-year-old medallion honoring King George III heads to auction

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 (Photo: Getty Images)  

Unlike the carefully choreographed 2018 Lightbox launch, De Beers never made an announcement or issued a press release in advance. The engagement rings just appeared on the Lightbox homepage. I found out about it on LinkedIn. Sightholders felt blindsided.

De Beers did eventually provide an explanation for what it called a three-month “test,” with marketing limited to three primary markets (New York City, Dallas, and Atlanta):

We know that many of the LGD DER [diamond engagement ring] sales taking place are to consumers who have been “converted” in store to LGD, and often with misleading or insufficient information.

We believe this creates a risk to consumer confidence in both natural diamonds and LGDs, so we are testing DERs with Lightbox to better understand the LGD DER space and to provide those specifically wanting LGD DERs to access them from Lightbox with its commitment to clear information and accessible prices.

De Beers executives have told me privately that Lightbox hasn’t veered from its original strategy—it wants to disrupt the lab-grown engagement ring sector with a more competitively priced product.

But if De Beers’ goal is to lower prices for lab-grown engagement rings, it hasn’t checked the market lately. A 1 ct. “Finest” Lightbox diamond (D-F color, VVS clarity, excellent cut) sells for $1,500 (loose). You can buy a 1.05 ct. F VVS1 Ideal cut at Ritani for $707.

This test also has Lightbox diverging from its linear price structure. While a Finest diamond sells for $1,500 per carat, a 1 ct. Finest engagement ring in an 18k gold mounting goes for $2,500, which means the mounting presumably costs $1,000. Yet a 2 ct. Finest engagement ring costs $5,000, so it appears the mounting’s cost has doubled along with the diamond’s weight. (Lightbox tells JCK: “We have not held to a fixed price for this test. We are using this period to better understand consumer reaction to different propositions.”)

It’s unclear if Lightbox will have any effect on the market, considering it produces only about 200,000 carats a year. Lab-grown production will hit 15 million carats in 2023, according to analyst Paul Zimnisky.

As you may have guessed, I find the official line hard to swallow—especially since, when I asked Lightbox CEO Antoine Borde about the brand selling engagement rings, he said:

It’s a matter of listening to the consumer. We have a lot of consumers who ask, “When are you going to sell engagement rings?”… We are focused on listening to our consumers, because at the end of the day it’s important to answer to their demands.

Borde’s response is clear and simple. Lightbox is selling engagement rings because consumers want them. That will make us money. The end.

Essentially, De Beers is acting like J.C. Penney or Signet or any other retailer: It’s following the market. This wouldn’t be a big deal if it wasn’t De Beers.

But it is. And symbolically this looks terrible. What kind of message does it send, especially to jewelers who are on the fence about lab-grown (and some still are, especially overseas)? Yes, companies like De Beers should occasionally take risks, but there’s a reason big ships move slower than small ones. If they make a mistake, they create a lot more damage.

When Chow Tai Fook tested synthetic jewelry, it did so under a different name. The minute that was discovered, the test was pulled.

De Beers, on the other hand, has set itself up for comments like this, from an anchor at  CBS News Minneapolis:

The head of De Beers said a couple of years ago that diamonds when they are lab-grown don’t have the emotional attachment that you have from mined diamonds.… Somehow, De Beers did a little turnaround when they created this new company.… They are saying, “We can grow diamonds, and they’re half the price, and now we think it’s just as good.”

De Beers may not have uttered those actual words, but there has been a turnaround, and this new Lightbox offering speaks for itself.

And it’s all happening as De Beers is renegotiating its most important contract, with Botswana. (The deadline is less than two weeks away.) Some in Botswana have harbored misgivings about Lightbox, as it makes it seem De Beers doesn’t need mined gemstones. Lightbox’s entry into the bridal market compounds that.

It is possible we are witnessing a corporate culture clash. De Beers has been described to me as “siloed,” with different divisions of the company not always coordinating with one another.

Element Six, the De Beers subsidiary that oversees Lightbox, is a tech business. It wants to sell its products, and is not tied in with the “diamond dream.” It has a new CEO. As do Lightbox, De Beers, and Anglo American, De Beers’ majority shareholder. The board at Anglo must notice that the margins on lab-growns far outstrip those of naturals.

There has long been a divide between those who want to use Lightbox to “protect” naturals and those who view it as a standard lab-grown business that can stand on its own. Several stalwarts of the “old guard”—the believers in natural diamonds, De Beers’ signature product—have left.

This is not the first time Element Six’s priorities didn’t line up with its parent’s. It sold diamonds to Pandora seemingly without considering how Pandora would market them. The result was…not good.

De Beers is an organization undergoing a lot of change, and it’s worth asking where Lightbox fits into the larger scheme of things.

Melissa Crivillaro, Lightbox’s chief marketing officer, wrote on LinkedIn that the brand “operates as an independently managed subsidiary of the De Beers Group.” When I interviewed Borde, he told me Lightbox didn’t feel any restrictions being owned by a diamond miner.

I was originally skeptical of that. I believe it more now.

In the past year, natural diamonds have lost market share while lab-grown prices have plummeted. Both issues are causing agita in their respective sectors. Yet De Beers is arguably better off paying attention to the former and ignoring the latter, which is proceeding according to the laws of economics.

When asked what sparked the latest drastic price drop, most growers point not to Lightbox (they almost always say the brand gave their sector a boost) but to a high-profile company dumping goods in Dubai.

Some lab-grown sellers now say they plan to move away from bridal, as it has become too competitive, and toward fashion. And even though man-made product has better margins, many retailers can’t sustain their businesses on $1,000 and $2,000 engagement rings. The market is evolving the way the natural industry wants it to. De Beers may be on the verge of a semi-victory, yet this feels like it’s waving the white flag.

If De Beers sees a future for natural diamonds, it needs to stop the gamesmanship and put more money into promoting its product. One of the issues the lab-grown sector has had is that it’s been focused on splitting the existing pie rather than growing it. That has hurt the diamond business overall. And now De Beers—if we take it at its word—wants to split the pie even further.

Whether Lightbox’s move into engagement rings is a strategic gambit or a true line extension, it risks hurting the business that’s sustained De Beers for over a century. But short-term thinking has long been the story of lab-grown diamonds—and the diamond industry in general.

De Beers has met the enemy, and it is them.

Top: A 2 ct. Finest engagement ring from Lightbox (photos courtesy of Lightbox Jewelry)