Top Ten Jewelry Stories of 2006
1) Blood Diamond-Inspired Media Coverage of Conflict Diamond Issue: Every journalist knows you need a news hook for every feature. The movie Blood Diamond provided just that for media features on diamonds and conflict stories, providing a timely reason to survey the last ten years of conflict in diamond-producing countries and possible links to the brilliant gems. Global Witness, Amnesty International, and the industry itself helped fuel the fire, even leading to stories about how the other side was spinning stories. Despite all the noise, the movie itself didn’t seem to create much furor or much of an impact on the holiday season, which although not great, was as successful for jewelry as for other products. And thanks to an industry-wide education campaign, most jewelers were well-prepared to answer any questions. Still, when The New York Times devotes three feature stories to conflict diamonds in December, that has to have an impact on the industry’s image.
2) Journey Diamond Jewelry: The new Journey product category, which launched in January 2006, added new excitement to the pendant category. Most retailers report increasing interest in the Journey concept of diamonds that graduate in size to symbolize love that forever grows.
3) Bill Boyajian Leaves GIA, Baker New President: In the aftermath of the grading scandal of 2005, GIA continued to reorganize itself in 2006, culminating in the resignation of President Bill Boyajian, after 20 years of service. Late in the year, temporary president Donna Baker was made permanent by the increasingly activist board of directors of the non-profit institution. Baker has received praise for smoothly moving the institution beyond its turbulent year.
4) Palladium: With increasing price-point pressure of high metals prices, many jewelers started carrying palladium jewelry for the first time in 2006. The first to experiment: jewelers with custom shops and retailers who carry the new ArtCarved engagement line by Frederick Goldman, exclusively available in palladium.
5) Warming Trend: Rose gold, yellow gold, and gemstones in warm tones of brown, orange and gold dominated the palette in 2006 for the first time in years of icy white-on-white styling. A new naturalism inspired by flora and fauna also grew in popularity.
6) GIA Cut Grade: In this case, no news is good news. The first major change in GIA Diamond Grading Reports in a decade, the addition of a cut grade to all reports, went amazingly well. The transition was smooth and seamless. The new reports were quickly accepted in the market.
7) Sterling Now Number One: Thanks in part to turmoil at its biggest rival, Zale, Sterling rode several years of steady and strong growth into the number one specialty jewelry retailer position in 2006. The retailer plans even more growth, including the doubling of its extra-hot Jared division.
Collector’s Universe Enters Gem Lab Business: Public company Collector’s Universe, a force in the collectible coin and sports memorabilia markets, moved strongly into the jewelry market in 2006. After its purchase of Gem Certification & Appraisal Lab in late 2005 and American Gemological Laboratories in 2006, the company started investing for growth, opening new facilities for the two labs and launching marketing campaigns. More is sure to follow in 2007.
9) Fabrikant Files: One of the largest diamond and jewelry companies in the United States, M. Fabrikant & Sons, filed for bankruptcy under Chapter 11, ending a year of negotiating with lenders and swirling rumors. The company’s filing became emblematic of the difficulties inherent in Supplier of Choice: even large companies face cash flow problems when they have to purchase diamond rough in cash and then sell with generous terms to large, increasingly powerful customers. Is this filing the first of many? 2007 will tell.
10) Push Presents: A grassroots phenomenon, the push present from a husband to his wife to celebrate the birth of a child is a fast-growing new occasion for giving jewelry.