“The regulations are a good thing,” says Vianna, an exhibitor at both About J and ‘Fall.’ “They’re good for the country, the environment, and the miners, but we’re seeing less gemstones. When you’re in controlled mining, there are costs involved, and most of the artisanal miners don’t have the money to do that. Also, the mines themselves are drying up.” Chinese companies with much greater buying power are also leaving less material to go around, he adds.
The cost of gold hit its highest level since March over the course of the shows. At nearly $1740 US per ounce, gold prices put exhibitors and retailers alike back on all-too familiar ground, with experts predicting they have nowhere to go but up.
In the hub of the Italian gold market where 18-karat is the standard, one-karat gold may seem out of place. With a gold content of only 4.167 per cent, the patent-pending alloy can be cast, is 40 per cent lighter than 18-karat gold, and is nearly identical in colour. However, it cannot be stamped as gold.
The material is gaining interest in the fashion jewellery market, as well as in eyeglasses and accessories like handbags, says Mauro Vanzi of Vicenza-based One Karat Gold. “We’re just starting to make ourselves known and trying to figure out where we need to go in the market,” he adds.
While gold continues to climb, a depressed rough diamond market over the summer made for bigger price differences than usual along the pipeline due to overtrading and stock liquidation. In June, average rough prices fell about 10 per cent.
“When prices go down, instead of making people hungry to buy, it makes them expect that they’ll decrease even more, so people postpone their buying,” says third-generation diamond dealer, Bert Jan Schatz of Antwerp-based Benelux Diamonds.
