The Jewelry Industry in 2011

From a faltering Kimberley Process for conflict diamonds to the Guinness Book of Records, the jewelry industry saw its share of hits and misses in 2011. Here is my highly subjective pick of notable news and trends from and about the jewelry industry.

Most Watched Royal Accessories. When the world’s most famous bachelor, Prince William, finally tied the knot with Kate Middleton, millions watched the pageantry. Millions more are now obsessively watching what Kate and her sister, Pippa, are wearing. This Christmas Kate was sporting a new pair of earrings, 18k drop earrings with green amethysts and diamonds, designed by Kiki McDonough, a favorite of Princess Diana. The gift, believed to be from William, was pictured, reported and discussed in trade publications, news outlets and blogs around the world.

World’s Most Coveted Jewels. Liz Taylor’s collection of jewelry, including the Burton Diamond and La Peregrina, was auctioned by Christie’s after a world tour. La Peregrina, one of the most famous pearls in the world, a huge 55 carat pearl discovered in the 16th century and owned by a number of European royalty, sold for $11.8 million. An ivory and gold necklace was estimated at $1,500. It sold for $314,500. Similarly, a charm bracelet was estimated at $30,000 went for $326,500. The auction set the record for a single collection, heretofore held by the Duchess of Windsor, whose jewelry collection sold for $50 million.

Most Anxiety Producing. The price of gold continued to rise, reaching a high of $1,889.70 in 2011. This prompted designers and manufacturers to turn to other, less familiar materials such as tungsten carbide, for wedding bands and other jewelry items. The price of silver, although far less expensive than gold, has also risen with some experts predicting it will reach the $50 per ounce mark in a few years.

Ring sets World Record. A diamond ring, set with 2,525 diamonds entered the Guinness Book of World Records in 2011 for having the most diamonds set in one ring. Produced by Labortas Classic Jewelry, a Ukraine-based company, the ring is in the shape of a swan and is called the “Tsarevna Swan.”

Hope for Banning Conflict Diamonds Falters. The Kimberley Process by which diamonds are “certified” faltered in 2011 when it lifted the ban on sales of diamonds from Zimbabwe’s rich Marange fields. These vast alluvial deposits were discovered in 2009 and were promptly seized by the government which evicted artisanal workers through violence, including murder and rape. China and India, potentially huge customers of Marange diamonds, hailed the decision, despite the lack of progress in correcting abuses. However, the U.S., various human rights groups and industry groups criticized it. The Rappaport Group, an influential diamond organization, called for a boycott of the diamonds. Anxious industry observers suggest that these developments do not bode well for future efforts in curtailing the sales of conflict diamonds.

Bigfoot leaves the Scene. For three generations the Oppenheimer family controlled DeBeers, creating a single source of diamonds for many years and changing forever the way the public regards diamonds. In a stunning and historic move, in 2011, the family sold DeBeers to Anglo-American departing from a scene they created and controlled for decades.

Novel Jewelry Distribution. A company in India, The Gitanjali Group, will use ATM machines to sell jewelry and diamonds. The company will roll-out 75 of the machines in 2012. Each machine will permit users to select from among 36 gold and diamond items. In a press release, the company says, “the machine is the first of its kind anywhere in the world and will further revolutionize the processes by which precious metals and jewelry is brought.”

Must See Event. Queen Elizabeth will celebrate her Diamond Jubilee in 2012. To mark the event, Buckingham Palace recently announced it will mount an exhibition of royal diamonds in late Summer and Fall, 2012 “to chart the gemstone’s association with British monarchs over the last 200 years. Of interest include the “Williamson Brooch” and its rare pink diamond, supposedly the finest in the world. Other items that will be shown include Queen Victoria jewelry, state jewelry and pieces from the Queen’s private collection.

Designers Dominate the Stage. The industry faced the challenges of 2011 with creativity and imagination. In general, commercial jewelry is dominated now, more than ever before, by unique designs showing flair and creativity by incorporating unusual materials and gemstones. Jewelry artists continued to produce gorgeous work albeit with far less gold in designs. Evaluating an industry’s performance in adversity is perhaps its truest measure and in this, the jewelry industry must be given the highest grade.

Fleury Sommers is a goldsmith, pearl and bead stringer and has studied gemology for more than 25 years. She operated a gallery in Houston, Texas for more than ten years and is the creator of the comprehensive Professional Pearl and Bead Stringing course available on Amazon.com and her website.