The JA Report: News, Tips & Trends from Jewelers of America

Check is in the Mail! Talking to Customers About the De Beers Diamond Settlement

After years of delays, the first checks from the De Beers Class Action Settlement were finally mailed on August 31 to the jewelry resellers (including retailers) who filed claims. While you may have already cashed your settlement check, your customers will have to wait a little longer. According to the De Beers Diamond Class Action Settlement website, www.diamondsclassaction.com, distribution to other subclasses (including consumers) should take place within the next few months.

While some in the industry are happy with the results, jewelry customers who expected a big payment could be disappointed once the checks finally arrive. Jewelers of America offers the following tips to help manage expectations and answer consumer questions about the settlement:

Jewelers: Be Smart When Buying Gold

The sky-high gold prices of recent years have meant a major uptick in jewelry retailers buying-back gold from consumers. For many jewelers this has become a significant part of their business. A recent crackdown by New Jersey law enforcement, underscores the fact that jewelers in all states must be vigilant about complying with local, state and federal requirements when buying gold or other precious metals from consumers.

Jewelers of America has compiled the following tips to help you when buying back gold.

Fine Jewelry Preview Unveils 2013 Jewelry Trends

Last Tuesday, July 31st, Jewelers of America held our annual Fine Jewelry Preview that unveils jewelry trends for 2013 to garner editorial coverage of fine jewelry and promote the jewelry of Jewelers of America's Supplier Members. The event was hosted by our consumer education arm, Jewelry Information Center.

Jewelry trends showcased included: statement necklaces and earrings; unique colored gemstones, like boulder opals, watermelon tourmaline and rough-cut quartz; sterling silver pieces; big and bold cultured pearls; and beyond-bridal platinum. We've included some highlights of the beautiful jewelry below.

Pictured above is the collection of more than 30 Jewelers of America Supplier Members who were featured in the preview. We showcased jewelry from Alex Woo, Alexandra Mor, Art Jeweller, Bree Richey Designs, C.J. Recht, Claudia Endler, Gumuchian, Ivanka Trump Fine Jewelry, Jemily, Jewels of Ocean, Just Jules, K. Brunini, Kamari Silver, Mark Patterson, Mattioli, Mijou Jewelry, Orlanda Olsen, Pamela Huizenga, Pancis Gems, Stuller, Suzy Landa, Syna Jewels and ZAIKEN Jewelry.

Jewelers of America Supplier Members Ivanka Trump Fine Jewelry "Lao Tong" earrings (left) and Gumuchian Cloud Nine sapphire earrings (right)

Jewelers of America’s Political Action Committee Makes Annual Visit to D.C.

On June 20, 2012,  Jewelers of America led a delegation of jewelers to Washington, D.C., to meet one-on-one with 28 lawmakers. The timing of the trip was very important, since major policy issues that impact jewelers will most likely be voted on this fall, after the elections. This was the second consecutive year Jewelers of America held the fly-in, and we've included highlights of the advocacy visit in our photo round-up.

The Health Care Law & Your Jewelry Business

As independent business owners, do you know how the health care law will affect your business? With the U.S. Supreme Court ruling on June 28 to uphold President Obama's Health Care Law, titled "The Affordable Care Act," that question has become more important than ever before.

To help your business navigate the complex health care issue, Jewelers of America has updated a breakdown of the law, prepared for JA Members by our legislative counsel, Haake & Associates. The overview looks at the Health Care Law’s potential effect on jewelry businesses and their customers. It covers possible penalties and incentives put in place by the law, as well as insurance industry reforms.

It is just one of the issues covered in Jewelers of America's Guide to Legislative Issues, the updated Health Care Law overview can be found on page 8: Click here to read the full PDF.

Alert: Undisclosed Synthetic Diamonds Reported at Labs

By Susan Thea Posnock, Assc. Director of Public Affairs

Jewelers of America is closely following news reports that hundreds of undisclosed synthetic diamonds were recently submitted to gem labs in Antwerp, Mumbai and China. The synthetic diamonds in question were mostly .30 to .70 cts, very good to excellent makes, F to J color and VVS to VS clarity. Internal characteristics of the stones were feathers, pinpoints, and small dark crystals.

Given their similarity to natural inclusions, the labs surmise that the stones were intentionally made to simulate natural diamonds. Synthetic stones may not be distinguished from natural diamonds through standard tools such as microscopes.

In order to protect the reputation of your business -- and consumer confidence in the diamond and jewelry supply chain, Jewelers of America urges members to take the following due diligence steps:

Jewelry News Roundup for April

In case you missed it, our jewelry news roundup of top jewelry stories to hit the newscycle recently:

• Heiress Huguette M. Clark's auction took place April 17 at Christie's, setting records with the Clark Pink,  a 9 ct. cushion-cut, fancy vivid purplish pink diamond that received $15.7 million. It's no wonder Christie's named it the "a fairy tale collection,” it's value is only surpassed by Elizabeth Taylor's private collection. (National Jeweler)

• Curious about how to improve your products' sparkle? JCK Magazine "spotlights" LED lighting in its April issue. (JCK)

• A new report from Thomas Reuters GFMS projects that the price of gold isn't going anywhere -- but up -- in 2012. (JCK Online)

• Our friends at Responsible Jewellery Council published their 2012 Annual Report on Monday, which profiles profiles the first year of its comprehensive member certification system. (IDEX Online)
• And for those living under a rock: Brad Pitt finally presented a really big rock to Angelina Jolie. The $250,000 engagement ring, designed by Pitt and jeweler Robert Procop, is sure to set bridal trends. (Daily Mail UK)

De Beers Class Action Settlement May Face Further Delays

UPDATE 4/5/2012:

There have been two petitions for certiorari filed. On April 2, 2012, the U.S. Supreme Court denied the petition for certiorari that was filed by members of the indirect purchaser class. According to the Jewelers Vigilance Committee, the denial of this petition means that the previous decision of the “en banc” Third Circuit Court of Appeals denying the class members’ attacks on the settlement will be reinstated.

However, the second petition for certiorari is still under consideration. Payment of claims will be delayed until the Supreme Court acts on this second petition.

Jewelers of America continues to follow the developments on the settlement closely, and will update our blog with any future developments.

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Jewelry News Roundup for March

In case you missed it, our jewelry news roundup of five top jewelry stories to hit the newscycle recently:

• The beginning of the month saw Warren Buffet referring to gold as a another bubble that will "inevitably pop" in his report to Berkshire Hathaway shareholders. (JCK)
  
  
• Platinum price has topped gold for the first time in six months. (JCK)
  
  
• Reports from BaselWorld, which closed last Thursday, showed attendance up and enthusiasm on both sides of the aisles at the world's largest fine jewelry and watch show. Time magazine's slideshow displays Baselworld's top "Eye Candy;" JCK's Jennifer Heebner reveals the design trends she spotted at the show. (Time, JCK)
  
  
• An upcoming Christie's auction of Heiress Huguette M. Clark's "fairytale" jewelry collection on April 17th has excited the trade and consumer press. (National Jeweler, People.com)
  
  
• New Luxury Institute Report shows no correlation between strong social media presence and increased sales & profits (...yet!) (IDEX)

JA Retail Member Donates Proceeds to Help Harrisburg Tornado Victims

After the severe tornado tore through his town of Harrisburg, IL, Joe Bacher, owner of J. Bacher Fine Jewelry -- a JA Retail Member located at 301 N. Commercial Street, contacted Jewelers of America about the fundraising efforts he was leading to help the tornado victims in his community. If you are in the area, visit his store to support the efforts below. You can also make donations through the Harrisburg Disaster Relief program.

Joe wrote, "We're hopeful that this will all help, both monetarily as well as in the fact that there is support within and outside of the community."

February Jewelry News: 2011 State of the Industry Roundup

Business news was abuzz in February with year-end statistics that reveal the jewelry retail industry can breathe a sigh of relief: total U.S. jewelry and watch sales set a record high in 2011 of $68.3 billion, 11% growth over last year, according to a report from IDEX. However, Ken Gassman of IDEX points out that the sales gain is slightly misleading, as it was due in part to inflation from high costs of precious metals, a fact echoed in National Jeweler's report that gold prices rose 9% in 2011.

Michelle Graff of National Jeweler shows that the 2011 record sales figures don't paint the whole picture: according to the Jewelers Board of Trade the retail jewelry industry is still shrinking -- albeit at a slower pace.

In the January issue of JCK, jewelers discuss their 2012 wish lists and sum up their 2011 performance, with the jewelry business owners interviewed indicating that smarter business management and conservative merchandising helped them achieve solid sales in 2011. There also seemed to be a consensus that fashion and gold jewelry were among the key sellers on jewelers’ shelves last year.

And we'd be remiss not mention 2012 Valentine's jewelry sales -- did jewelers see a continuation of holiday sales peaks? While it's too early for official sales figures, both JCK and National Jeweler surveyed jewelers nationwide and offer varying takes on the Valentine's jewelry sales vibe.

How did you fare -- were your 2011 year-end results in keeping with the industry figures? Let us know in the comments!

Delayed De Beers Class Action Settlement May Move Forward

After a delay of more than a year, the settlement of the De Beers class action law suit is finally moving forward. On December 20, 2011, the En Banc Panel of the U.S. Court of Appeals of the Third Circuit in Philadelphia overturned an earlier decision to reject the $295 million De Beers settlement.

While the ruling was an important step toward payment of claims, an appeal to the U.S. Supreme Court -- the last resort for objectors -- would cause further delays.

Kimberley Process Plenary Update for U.S. Jewelers

The Kimberley Process Plenary -- held October 31 to November 3, 2011, in Kinshasa, Democratic Republic of the Congo -- concluded with the Kimberley Process Certification Scheme (KPCS) still intact.

Jewelers of America (JA) is encouraged that steps were taken to preserve the monitoring system, but continues to have specific concerns related to goods from the Marange region of Zimbabwe, which now have a green light from the KP. The association remains very concerned about alleged human rights abuses in the region, as well the impact of legal issues surrounding these diamonds.

In fact, the decision to allow exports from Marange presents a serious challenge for U.S. businesses. That's because goods from the region are mined by companies with strong connections to Zimbabwean entities and individuals who are sanctioned by the U.S. Department of Treasury's Office of Foreign Assets Control (OFAC).

While these diamonds can now get KP Certificates, U.S. companies are prohibited from purchasing them, either directly or indirectly.

Support Main Street Fairness!

Congress recently introduced the Main Street Fairness Act, which would eliminate the unfair tax advantage Internet merchants and other remote sellers now enjoy over traditional retailers.

Getting this important legislation introduced was the first step, but the Senate (S. 1452) and House (H.R. 2701) bills need bipartisan support. Jewelers of America urges our members and other jewelry businesses to reach out to their Senate and House representatives at the local level. You can do this by attending a meeting or event where their representative will be looking to hear from constituents while on summer recess.

Encourage your Representatives to support this legislation:

JA Holds Firm on Zimbabwe

The Kimberley Process Certification Scheme (KPCS) continues to debate the status of exports from the Marange region of Zimbabwe. Shipments of these diamonds were initially suspended after the 2009 KP Plenary. Jewelers of America believes this suspension should remain in place and must be adhered to by KP participants until further notice.

Jewelers of America Supports Delay on Mercury Ban

Jewelers of America (JA) has been working with the American Watch Association (AWA) to push officials in Maine, Connecticut and Rhode Island to postpone bans on mercury in button-cell batteries. All three states had initially scheduled their respective bans to go into effect on July 1, 2011. The associations are asking for a year postponement, to July 1, 2012.

So far, the campaign has been a success. JA recently got good news when we learned Maine and Connecticut have postponed their bans. Maine moved the state ban to the end of this year, while Connecticut’s ban has been postponed until July 1, 2012.

Royal Wedding: Royal Jewelry Heirlooms

Ever since Prince William presented Catherine Middleton with the 18-carat oval blue Ceylon sapphire and diamond engagement ring worn by his late mother, Diana, upon her engagement to Prince Charles, savvy jewelry manufacturers and retailers everywhere took notice -- and for good reason. Jewelers from London to New York have been reporting surging demand for blue sapphire bridal jewelry. 

The Royal Wedding also gives jewelers an opportunity to reiterate to customers the importance of jewelry as heirlooms that signify the meaningful moments in their lives. Royal Families have always understood the importance of jewelry as heirlooms. Prince William said giving Catherine his mother's engagement ring would ensure his mother was there in spirit for the special occasion.

 

Tell your customers about these famous jewelry heirlooms from the British Monarchy and look like a royal expert on the subject:

SEC Delays Rules for Conflict Minerals, What Jewelry Firms Should Know

The U.S. Securities and Exchange Commission (SEC) has delayed publication of its final rules for conflict minerals provisions within the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The rules -- originally scheduled to be published on April 15 -- are now expected to be published between August and December. Jewelers of America worked with other major jewelry associations to submit comments to the SEC as they developed the rules. Jewelers of America will continue to watch this issue closely and update members as needed.

FTC Unveils New Platinum Guidelines

In December, the Federal Trade Commission (FTC) announced revisions to its Guides for the Jewelry, Precious Metals, and Pewter Industries in order to clarify how to properly disclose the content of jewelry made from new platinum/metal alloys. These are products made with a combination of non-precious “base” metals and contain between 50 and 85 percent platinum.

The new guidelines were included in a Federal Register notice published in late December. Specifically, the new Platinum Section states that marketers of platinum/base metal alloys should:

Retail Resolutions, Part 1: Marketing Trends to Try

Have you planned out your business resolutions for 2011? To help you get started Tobe, the international fashion and retail authority, has written its annual State of the Consumer Report, which includes their projected top retail trends for 2011. To help retailers formulate long-range business plans for success in today’s hyper-competitive consumer-driven economy, State of the Consumer identifies and analyzes changing demographics, emerging business opportunities, and lifestyle influences impacting the retail industry.

We've highlighted their 2011 marketing and merchandising retail trends that fine jewelry retailers and designers should consider implementing -- or they could find themselves losing to digital- and fashion-savvy competitors.

Retail's BIG Blog | Top ten holiday trends for 2010

The National Retail Federation released its Top 10 list for holiday retail trends. There's a lot here that's good for our retail jewelry members. According to NRF, value will trump price as a priority for consumers, who are looking for customer service and merchandise quality -- two things Jewelers of America Members master. Jewelry is second on women's holiday wish lists -- with 33.3% of women picking it as their gift of choice. Read the complete list and pass on to your holiday sales team . . . click here for full article.

via blog.nrf.com

De Beers Diamonds -- Update on Class Action Case

The U.S. appeals court for the Third Circuit in Philadelphia has set a hearing date for February 23, 2011, to reconsider its previous rejection of the $295 million settlement for De Beers antitrust case. The settlement was dealt a blow when the court declared that it was not legal and could not proceed.

The court found issue with the differing laws in the 50 states and the consequential treatment of each plaintiff -- all of the consumers, purchasers or resellers who filed claims. Appeals were filed, and now the court has agreed to rehear the case before all 15 judges.

Industry associations including the Diamond Manufacturers and Importers Association of America (DMIA) and the Jewelers Vigilance Committee (JVC) have submitted briefs to support the lower court’s approval of the settlement.

As the court case involving De Beers diamond sales and alleged overcharging drags on, Jewelers of America -- with its attorneys -- is following the case very closely. JA is advised that the end is in sight, even though there is another obstacle to clear. According to the most recent update from the DMIA, the earliest these matters could be settled, barring further complications, will be late next summer. JA will continue to keep its members and consumers updated on the action of the rehearing before the Third Circuit Court of Appeals.

For more information about the De Beers Settlement, visit:

• Appeals court to re-hear De Beers settlement case
• De Beers Settlement Website

 

JIC to Produce 2011 AGS Conclave Fashion Show

Jewelry Information Center (JIC) — the consumer education arm of Jewelers of America and the leading fashion authority in the jewelry and watch industry — will produce the annual American Gem Society (AGS) Conclave Fashion Show, on April 27, 2011, at the Westin St. Francis, in San Francisco, CA. 

“Jewelry Information Center is thrilled to partner with American Gem Society in the planning and production of this year’s exciting fashion show,” says Helena Krodel, Jewelers of America's director of media and special events . “Since 1946, Jewelry Information Center has been known as the fashion and trends authority for the fine jewelry and watch industry; we can think of no better platform to publicize the hottest jewelry than at the highly-regarded AGS Conclave.”

More Cadmium Regulation

Federal and state officials continue to take a close look at how to effectively limit the levels of cadmium in children’s jewelry.

The Consumer Product Safety Commission (CPSC), said this week that it will look to experts -- including those in the jewelry industry -- to help set safety standards. Meanwhile, California recently became the fourth state to pass legislation that limits the levels of cadmium in children’s jewelry and other products.

Officials first began targeting cadmium at the beginning of the year, when an Associated Press (AP) investigation identified dangerous levels of cadmium in some Chinese-made children's costume jewelry. Retail jewelers should be aware of action on this issue on both the state and federal levels, and Jewelers of America has prepared the following update.

JA & Industry Associations Inform Conflict Minerals Regulation

In July, Congress passed conflict minerals provisions as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Jewelers of America strongly believes in the goals of the provisions and we fully condemn the use of any minerals to fund conflict in the Democratic Republic of the Congo (DRC) and/or surrounding countries.

Following passage of the law, the U.S. Securities and Exchange Commission (SEC) now has the task of establishing the rules for compliance with the new law. Along with other major jewelry industry associations, Jewelers of America is working with the SEC and non-governmental organizations (NGOs)  to ensure that the rules to be promulgated and enforced by the new law achieve its goals, without hurting jewelry businesses and the very communities in DRC and neighboring countries that it is meant to benefit and protect.

JA Keeping Eye on Zimbabwe Diamond Situation

Jewelers of America (JA) members have access to expert guidance on issues that affect consumer confidence in jewelry merchandise. One key issue we’ve been following—diamonds from Zimbabwe—has recently gotten increased media attention. To ensure Jewelers of America members are informed and prepared, we continue to keep a close watch on the situation in the Marange region of the country, the source of reported human rights violations.