OCTOBER 2, 2019

With fewer than seven weeks to go to the opening of the 2019 CIBJO Congress in Manama, Bahrain, on November 18, 2019, the fourth of the CIBJO commissions’ Special Reports has been released. Prepared by the CIBJO Diamond Commission, headed by Udi Sheintal, the report focuses predominantly on what it refers to as the “faultline” between diamonds mined in nature and man-made diamonds.

“Because laboratory-grown diamonds prices were deliberately benchmarked against the price of natural diamonds at the outset, the risk exists that the consuming public will continue to associate the one with the other, even after the economics have changed,” Mr. Sheintal writes. “While natural diamonds may once have inflated the price of laboratory-grown stones, the price war in the laboratory-grown diamond sector could have the effect of depressing the value of goods in the natural diamond sector.”

“This makes the task of disconnecting the natural diamond sector and the laboratory-grown diamond sectors even more important, not only from our professional perspective, but from the perspective of the consumer as well. The appeal of both products is different, and so clearly are the economics. They both should be provided the opportunity to thrive, in harmony alongside each other,” he continues.

In the report, Mr. Sheintal calls for the creation of agreed-to rules of engagement between the natural diamond and laboratory-grown diamond sectors in marketing their products, and warns about a readiness to pitch one as being more ethical or environmentally acceptable than the other. “This is not only a self-destructive marketing strategy, but it is also questionable in terms of the claims being made and the data upon which they are based,” he writes.

“Proper rules of engagement need to be created. I suggest that one of them would be for all sides to agree that any stone, which may be precious, but always is a lifeless object, is neither ethical nor environmentally friendly. These qualities refer to the way in which they are mined or manufactured. The onus of responsible behaviour always falls upon the individuals and companies mining or synthesising, processing and marketing these products,” he notes.

To download a full copy of the CIBJO Diamond Commission’s special report, PLEASE CLICK HERE.

SEPTEMBER 25, 2019

With fewer than eight weeks to go to the opening of the 2019 CIBJO Congress in Manama, Bahrain, on November 18, 2019, the third of the CIBJO commissions’ Special Reports has been released. Prepared by the CIBJO Precious Metals Commission, headed by Huw Daniel, the report examines the increasing readiness of national authorities, particularly in the United States, to examine the integrity of the gold supply chain. The report also provides an overview of supply, demand and their effect on prices in the gold, platinum, palladium and silver markets.

“In a time of increasing uncertainty, investors predictably are seeking safe havens in these commodities, and that has implications on price. However, the outlook for demand is less clear, because the integrity of the gold supply chain has come under increasing scrutiny,” writes Mr. Daniel.

The focus on practices in the gold industry is coming from two different sources, the report notes. First, the mainstream media is intensifying reportage of “dirty gold” and issues around where and in what way the metal is sourced, and how it is moved through the supply chain. Second, the U.S government has given notice to the jewellery industry that, for purposes of national security, imported goods should be labelled with all of the countries they have passed through on the journey to the American consumer.

But, despite the increased pressure, the market-analysis section of the report predicts a favourable supply-demand balance for precious metals. But general, however, it is not jewellery that is the deciding factor, but rather the investment market or the automotive sector. In the case of palladium, for example, there has been increasing pressure on supply due to to auto-catalyst systems, because of stricter fuel emissions legislation being imposed globally.

To download a full copy of the CIBJO Precious Metals Commission’s special report, PLEASE CLICK HERE.

SEPTEMBER 18, 2019

With fewer than nine weeks to go to the opening of the 2019 CIBJO Congress in Manama, Bahrain, on November 18, 2019, the second of the CIBJO commissions’ Special Reports has been released. Prepared by the CIBJO Responsible Sourcing Commission, headed by Philip Olden, the report provides an overview of the first Responsible Sourcing Blue Book, which was approved in January of this year. It defines a universally agreed-to set of recommended responsible sourcing principles, which can be applied by all members of the greater jewellery industry.

“CIBJO has steadfastly stated that no ethical member or company in the jewellery business should be denied the opportunity to participate because, at any particular point in time, it lacks the financial capacity to meet the demands of a compliance system. At the same time, CIBJO does not accept the contention that a company with limited financial resources should be exempt from conducting any form of responsible sourcing due diligence,” writes Mr. Olden.

“The Responsible Sourcing Blue Book indicates what initial steps can be taken at minimal expense and effort, and proposes a programme of continual improvement, which companies can apply at their own pace,” Mr. Olden adds. The system suggested is based on the OECD’s Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

The special report also outlines a programme that CIBJO’ Responsible Sourcing Commission has initiated with the Coloured Gemstone Working Group, facilitated by The Dragonfly Initiative, involving the creation of an online toolkit that will provide supporting documentation to help companies address the Responsible Sourcing Blue Book guidance. It will be presented at the upcoming CIBJO Congress in Bahrain, and subsequently will be made available to the industry at no cost.

To download a full copy of the CIBJO Responsible Sourcing Commission’s special report, PLEASE CLICK HERE.

SEPTEMBER 11, 2019

With fewer than 10 weeks to go to the opening of the 2019 CIBJO Congress in Manama, Bahrain, on November 18, 2019, the first of the CIBJO commissions’ Special Reports has been released. Prepared by the CIBJO Marketing & Education Commission, headed by Jonathan Kendall, the report returns to what has been defined as the next great jewellery-consuming group, Generation Z, providing a breakdown of what the industry needs to consider if it is to ensure that jewellery remains a favoured purchase.

Generation Z refers to young consumers, who currently are 15 to 25 years of age.

“Gen Z is coming to our markets very soon if it has not already arrived in reality,” writes Mr. Kendall. “Its members are forecast to spend a whopping $143 billion this year alone. So we better get them on our side if we want to enjoy a rosy future. In fact, the future success of the jewellery industry will depend on our understanding the needs and wants of Generation Z. Get this right and we can all look forward to strong profitable years moving forward. Get it wrong and we could be destined for the scrap heap – not overnight maybe, but ultimately.”

Communicating predominantly via the social media, studies show that Generation Z is more environmentally conscious and gender neutral than any generation that preceded it. It celebrates authenticity, diversity and human imperfection. It is more likely to heed the advice of a friend, rather than a celebrity.

“Gen Z is prepared to splurge but it must be worth it. The more added value the better, and that can come from its environmental credential or its social value,” notes Mr. Kendall.

To download a full copy of the CIBJO Market & Education Commission’s special report, PLEASE CLICK HERE.

SEPTEMBER 10, 2019

With members of the jewellery and gemstone sectors under growing pressure to actively demonstrate that they are conducting their businesses in a sustainable manner, including verifying that the items they purchase, process and sell have been sourced responsibly, a range of technological solutions are currently being developed to help them comply with the due diligence requirements. These came under the spotlight during a seminar on September 9, 2019, at the VICENZAORO show in Vicenza, Italy, organized by CIBJO and hosted by the Italian Exhibition Group (IEG).

The seminar was the latest edition in a series of educational programmes organized by the two bodies, which is endorsed by the United Nations Economic and Social Council (ECOSOC), to support Corporate Social Responsibility and sustainability in the jewellery sector. As, Marco Carniello, Director of IEG’s Jewellery and Fashion Division, pointed out, the seminar this September marked the 10th year of cooperation between CIBJO and Italy’s leading jewellery trade show organizer.

But in an industry that is dominated by small and medium-sized companies, many participants find it challenging to follow suit and consequently could experience difficulty in gaining access to chains of supply. The technologies discussed at the seminar are largely being developed to address these challenges.

“CIBJO is committed to the development of an ethical and sustainable jewellery industry, which sources its raw materials in both a responsible and transparent manner,” said CIBJO President Gaetano Cavalieri, opening the seminar. “As we reiterated in the new Responsible Sourcing Blue Book which was approved earlier this year, we believe that all participants should do due diligence to the best of their ability. At the same time, we also insist that no ethical members of our community be discriminated against because they currently lack the resources necessary to implement a full compliance system. It is for this reason that we view the development of technological solutions as being so important.”

The panel of speakers, which was moderated by Erik Jens, vice president of CIBJO’s Responsible Sourcing Commission, represented a cross section of this growing industry service sector, providing solutions to industry participants at all stages of the chain of distribution, from the mine to the retailer.

The panel included:

AUGUST 12, 2019

All participants in the jewellery and gemstone value chain will need to come to terms with the fact that basic due diligence demonstrating that they are sourcing their supply responsibly is becoming is a regular requirement for doing business, said Gaetano Cavalieri, President of CIBJO, speaking last week in Mumbai. At the same time, he added, the systems being developed must be inclusive, meaning that they cannot discriminate against ethical players because of their size or financial capacity.

The CIBJO President was speaking on August 7, during the opening day of the 2019 Advances in Gem & Diamond Detection Technology (AGDDT) symposium, organised by the Gemmological Institute of India. The event at the Bombay Exhibition Centre preceded the opening of the India International Jewellery Show (IIJS), in which Dr. Cavalieri participated the following day. He also joined an AGDDT panel discussion looking at measures that should be taken by the industry to successfully absorb laboratory-grown diamonds into the product mix, without compromising the position of naturally sourced diamonds.

In his presentation on August 7, Dr. Cavalieri focused specifically on the predicament faced by the coloured gemstone sector, which is dominated by small and medium-sized enterprises at almost all stages of the chain of distribution. “In diamonds,” he stated, “close to 80 percent of the volume of rough goods are mined by only seven companies, and more than 90 percent in terms of value. In the coloured stone sector the situation is reversed. Artisanal and small-scale miners account for more than 80 percent of production, both in terms of volume and value.”

A basic premise of CIBJO’s Responsible Sourcing Blue Book, which was approved by the CIBJO Board of Directors early in 2019, he said, was that it would be a “protocol that could be universally accepted by larger and smaller enterprises, which would meet the ethical standards that our industry expects from itself, and at the same time is acceptable from the perspective of the international community.”

“An operating principle of the Responsible Sourcing document was that it would be inclusive, meaning that there is an expectation that the standards, guidelines and systems that it describes can reasonably be applied by all members of the industry, irrespective of size or financial capacity,”he stressed.

In his presenation, Dr. Cavalieri outlined how CIBJO is developing tools and other materials, in cooperation with industry players, which are  designed to assist individuals, companies and organisations apply the principles contained in the CIBJO Responsible Sourcing Book, with a special emphasis on meeting the needs of small and medium-sized enterprises.

In April, during the OECD precious minerals forum in Paris, CIBJO signed an MOU with the Coloured Gemstone Working Group, which is a committee made up of representatives of Tiffany & Co., Swarovski, Richemont, Muzo Companies, LVMH, Kering, and Gemfields, facilitated by The Dragonfly Initiative. The goal is to produce an online suite of tools and resources that will be made available free of charge from an online platform, which essentially will enable companies to implement the principles outlined in the Responsible Sourcing Blue Book.

“We do not agree with those who contend that, only because of  company’s size, it should be given a free pass when it comes to responsible sourcing,” Dr. Cavalieri said. “Just as there are basic standards of practice when it comes to grading and disclosure, which all members of our industry are obliged to maintain, the same is true with responsible sourcing. Everyone can do something, to the best of their ability.”

“Let us be honest with ourselves,” he continued. “The demand that we document where goods come from and where they are going is not unreasonable. Your governments expect each and every one of you to maintain orderly books and follow basic accounting practices. In other words, you are already doing due diligence in your businesses.”