• Industry Analysis: Soft Economy Hurting Retail Jewelers
• From Gems & Gemology: Ruby, Sapphire Mining at the New Deposit in Winza, Tanzania
• Star-Studded Career Fair is a Must for Aspiring Jewelry Professionals
• Nearly $400,000 Available for 2009 Scholarships; Applications Accepted through Oct. 15
• JCK Alumni Event Draws Record Numbers
• An Effective Executive's Education Never Stops: GIA Seminars Address Key Issues Facing Jewelry Industry Leaders
• Learn in the Heart of It All -- GIA Carlsbad
• Find a GIA Lab Class in a City Near You

Industry Analysis: Soft Economy Hurting Retail Jewelers

Industry bankers are growing concerned that the soft economy is affecting U.S. retail jewelers more than in previous recessions. Nearly every large U.S. retail jewelry chain has reported declines in same-store sales. Three chains have filed for bankruptcy in the past year (Samuels, Fortunoff and Friedman-Crescent), and now another large one appears to be on the verge. Whitehall lost $74.1 million during fiscal 2007, which ended Feb. 2 this year. The company announced this week that it may default on several notes and file for Chapter 11 bankruptcy protection.

In previous recessions, retail jewelry sales held up well against other types of merchandise. But bankers, noting the shift in consumer spending toward electronics, believe that competition is coming from new areas, just as pressures on discretionary spending have already weakened jewelry demand in the U.S.

In addition, banks are feeling the pinch themselves. As bankruptcies continue to rise, banks, already strapped by the subprime mortgage meltdown, have raised fees and tightened credit requirements. Analysts believe this will, in turn, create more difficulties for retail operations.

DIAMONDS: Alrosa, Russia's diamond mining and marketing organization, announced that it has discovered two diamondiferous pipes with combined reserves valued at more than $109 billion. Coming as it does at the tail end of the half-century-old relationship between Russia and the De Beers Diamond Trading Company, this discovery can only accelerate the diversification of rough supply.

De Beers controlled about 85% of the world's diamonds by value a decade ago. Today, that share has been cut in half; by volume, its share is less than one-third. As a result, there's no dominant force to rely on to control supply to the industry in the event of a major slide in demand.

All the major producers, which include Alrosa, BHP Billiton and Rio Tinto as well as De Beers, have vowed they will not assume a "custodial" role in the market and will adjust prices to demand, if necessary. Thus far, diamond prices have remained firm because of strong demand from Asia and India.

MACRO: U.S. retail sales climbed 1% in May, apparently on the strength of the economic stimulus tax rebates, according to a U.S. Department of Commerce survey. While rising gasoline prices accounted for some of the additional spending, general merchandise sales increased 1.2% during the month. Clothing and accessories were up 0.5%.

Russell Shor
Senior Industry Analyst

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Figure 1. Miners use picks and shovels to excavate shallow pits in search of ruby and sapphire at Winza, Tanzania. Photo by Vincent Pardieu.

Figure 2. The eluvial soils are brought to the nearby river for washing and hand-picking of the ruby and sapphire. Photo by Brendan Laurs.

From Gems & Gemology: Ruby, Sapphire Mining at the New Deposit in Winza, Tanzania

Brendan Laurs of GIA in Carlsbad, California, and Vincent Pardieu of the Gübelin Gem Lab in Lucerne, Switzerland, submitted the following entry to Gems & Gemology's (G&G) Gem News International section. Some preliminary observations from their visits to Winza, Tanzania, are reported here, and further information is being prepared for an article that will be submitted to G&G.

As reported in the May 2 GIA Insider, some fine rubies were recently produced from a new deposit near the village of Winza in central Tanzania. We undertook separate field research expeditions in April and May to the mining area to document its location, mining and geology, and to obtain research samples for characterization.

Since foreigners are prohibited from visiting the deposit, we had to obtain permission from several government officials, who also supplied police escorts. We are grateful to Dimitri Mantheakis (Lithos Africa, Dar es Salaam, Tanzania), the Saul family (Swala Gem Traders, Arusha, Tanzania) and Tanzanian broker Abdul Msellem for their assistance in arranging our trips to the Winza mining area.

The mining area is located approximately 10 kilometers southwest of Winza, and can be reached by a four-wheel-drive vehicle in about 2½ hours (much longer during the wettest season, in March and April) from the nearest small town, Mpwapwa. At least 5,000 miners have rushed to the deposit and are using hand tools to excavate shallow pits in eluvial soil (figure 1). The excavated material is loaded into sacks, carts or trucks, and brought to the nearby stream for washing. There, the soil is wet-screened and the gems are removed by hand (figure 2). Several shafts have also been dug by hand to depths reaching 30 meters to explore the underlying hard-rock deposits. The corundum occurs as well-formed isolated crystals, which are typically color zoned (e.g. with an irregular dark blue surface layer and a pink-to-red interior).

It appears that most of the ruby and sapphire from Winza has come from the eluvial workings. There was no evidence that any corundum has been produced from the alluvium within the stream where the material is washed. In one of the corundum parcels, however, we saw gem-quality pieces of a waterworn pinkish orange mineral represented as garnet, which were reportedly recovered from the same area.

Most of the ruby and sapphire production is being routed to dozens of Thai and Sri Lankan (and a few African) buying offices in Mpwapwa. The material we were shown in Mpwapwa consisted mostly of lower-quality fragments, in a range of colors (often zoned) from blue to violet, purple (rarely), pink and red. Due to the informal nature of the mining, it was impossible to determine how much material was being produced, but we estimate that during our visits the miners were gathering a few kilograms per day of mixed-quality material. By early June, however, the water in the stream had grown scarce, causing a corresponding decrease in production (D. Mantheakis, personal communication, 2008). So far, gem corundum from Winza has been recovered from an area measuring several square kilometers, but the overall size of the deposit is not yet known.

For more on the latest gemological developments from around the world, read the Gem News International section in each issue of G&G. To subscribe, click here or contact Circulation Coordinator Debbie Ortiz toll-free at (800) 421-7250, ext. 7142. Outside the U.S. and Canada, call (760) 603-4000, ext. 7142.

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Star-Studded Career Fair is a Must for Aspiring Jewelry Professionals

GIA's New York Jewelry Career Fair will bring together the industry's most distinguished leaders, influential executives and visionaries to help connect companies with talented individuals seeking a career in jewelry.

The event will begin with a star-studded "Working to Win" panel that will give attendees exclusive insight on what it takes to be a success in the gem industry.

The panelists include:

Ralph Destino, Chairman, GIA (moderator)

Steven Lagos, Designer and CEO, LAGOS

Susan Jacques, President and CEO, Borsheim's

Rahul Kadakia, Senior Vice President, Head of Jewelry, Christie's Americas

Ann Arnold, Vice President and CFO, Lieberfarb

"This year's speakers and panelists represent the highest caliber of the most prominent executives at the forefront of the jewelry industry," said Kathryn Kimmel, vice president and chief marketing officer for GIA. "For job seekers to be given the opportunity to meet these internationally recognized individuals all at one time and in one place is quite extraordinary. Anyone interested in the jewelry industry should attend this event."

In addition to recruiters representing leading companies like David Yurman, Oscar Heyman, Tiffany & Co., and Zale Corporation, the full-day event provides attendees with a comprehensive jewelry career agenda that includes career coaching sessions, an immigration law workshop, a jewelry design panel and a "Marketing Yourself for Success" panel.

Panelist Kadakia, a GIA Graduate Gemologist, got his start with the famous auction house through a GIA Jewelry Career Fair in 1996.

"Christie's has been attending the GIA Career Fair since 1996 and this event has continued to grow each year," Kadakia said. "It is now an important date within the jewelry world, with auction houses, important retail establishments, and members of the trade attending to find new talent, aspiring designers and creative jewelers to be part of our exciting industry."

Career Fair was founded by GIA and The Jewelers 24 Karat Club of Southern California. The Nielsen Jewelry Group is the prime sponsor of the New York Career Fair.

These 2007 Career Fair materials were recognized for design excellence.

Marketing Materials for 2007 Career Fair Receive Design Award
GIA was recently awarded the "American InHouse Design Award" for its 2007 Jewelry Career Fair campaign's marketing materials, which included the invitation, program, advertising campaign and microsite.

This award, presented by Graphic Design USA, is a premier showcase for in-house creative excellence. More than 5,000 entries were submitted from across the U.S.

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Nearly $400,000 Available for 2009 Scholarships; Applications Accepted through Oct. 15

It's the time of year again when the opportunity to study gemology, jewelry design and other facets of the gem and jewelry field could be only an application away.

More than 65 scholarships collectively valued at $395,308, including $227,778 from earnings on GIA's Endowment Fund, are available for courses and programs that begin in 2009. Applications will be accepted through Oct. 15.

The Institute's Board of Governors allotted $98,500 of the $227,778 for international scholarships, which are available to anyone who is not a citizen or permanent resident of the U.S. Applications for international scholarships were accepted for the first time in 2007 for the 2008 academic year. International scholarships offer a chance to study through Distance Education or on campus at either GIA London or GIA India and, new for 2009, the opportunity to earn a Graduate Gemologist diploma on campus at GIA Thailand.

"The growing number of international scholarships available for 2009 GIA courses and programs reflects the Institute's commitment to serve the educational needs of students worldwide," said Bev Berthoty, GIA's Institute Relations manager.

Click here for more information about GIA scholarships or to download an application. Information is also available by calling (800) 421-7250, ext. 4175, or e-mailing scholarship@gia.edu. No applications will be accepted after Oct. 15, 2008.

Scholarship recipients are generally notified by the end of the year and must accept their scholarship within 30 days of being notified. Due to the predetermined availability of scholarship funds, some conditions apply and eligibility for scholarships is limited to students who have not received a scholarship within the last five years.

To make a donation to GIA's Endowment Fund, contact Bev Berthoty at bberthoty@gia.edu or (760) 603-4120.

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From left: Whitney, Peggy and Chandler Lewis, of AC Lewis Designs in Baton Rouge, Louisiana, enjoy GIA's Alumni Networking Reception at the JCK show in Las Vegas. Photo by Gary Michael Prochorchik.

JCK Alumni Event Draws Record Numbers

Mango-raspberry martinis and gem-themed songs such as The Beatles' "Lucy in the Sky with Diamonds" and Prince's "Diamonds and Pearls," set the stage for a record number of GIA alumni and their guests to reconnect during the 17th annual JCK Las Vegas show.

Hosted by GIA's Alumni Association at the Tao Nightclub on May 31, the Institute's Alumni Networking Reception drew 330 guests and was the "biggest alumni gathering ever held at JCK," said Rose McKenna, GIA's manager of Alumni Relations.

Jeffrey Appling, with Jeffrey Appling Designs in Palm Springs, California, described the GIA event as "incredible" and "both visually and mentally stimulating."

"I am usually not the one for small talk at social events, but this event was part and parcel of what it means to network with fellow alumni from around the world," Appling said. "Great out-of-country contacts were made, and the water bottles provided by the Tao Nightclub were cool as well."

McKenna said the turnout stems from the growing membership of the Institute's Alumni Association and the decision in April 2007 to discontinue dues and connect to all GIA graduates, rather than just active, paying members. The number of people on the association's mailing list jumped from 4,000 to 65,000 as a result, she said.

GIA's alumni reception drew attendees from around the world, including Canada, Switzerland, China, New Zealand and India, and from across the United States, including as far away as Ohio and New York.

One of those was Roger Beattie, managing director of Eyris Blue Pearl Company, who flew in from New Zealand. Beattie said one of the highlights of the evening was reconnecting with people who visited his company during the GIA Travel Program's 2007 cultured pearls tour.

"I caught up with David and Sherrie Bryant, who had been on the tour -- they visited us in New Zealand," Beattie said. "It was a very good networking event."

Debórah Villepigue, owner of The Jewelry Appraiser Inc. in Manhasset, New York, said attending the alumni event allowed her to reconnect with old friends and make new ones.

"After a long, hectic and successful day, the party at Tao was a much needed and pleasurable break," Villepigue said. "Thank you, GIA, for an unforgettable night."

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An Effective Executive's Education Never Stops: GIA Seminars Address Key Issues Facing Jewelry Industry Leaders

Planning for Profit
It goes without saying that if you're doing business in the jewelry industry, you want to take steps that ensure you'll make money. What may not be quite as clear is how to plan so that more money is coming into your business than going out.

Learning how to integrate marketing and management could help you reach your profit goals. And that's where GIA's School of Business can help.

GIA Los Angeles is offering a three-day seminar, "Planning for Profit," that will give you a step-by-step plan for running a successful retail jewelry business. Participants will review the development of effective buying and selling based on key strategies such as sales forecasting, budgeting, product assortment and open-to-buy. You'll walk away with fresh ideas on how to impact your business' bottom line.

"Planning for Profit," taught by Dr. Tim Malone, is offered July 14-16 at GIA's Los Angeles campus. To enroll or for more information on GIA's jewelry business seminars, click here or call (866) 702-2088 or e-mail laedu@gia.edu. Outside the U.S. or Canada, call (310) 670-2100.

Women in the Jewelry Industry
Even today, women are faced with gender-specific issues in the marketplace. Addressing them before they become problems can help ensure the very livelihood of any business -- jewelry or otherwise. The GIA School of Business is offering a special 10-week course that examines not only women-specific business concerns, but those that women may face that are particular to the jewelry industry.

Whether you're transitioning into, returning to or working in the jewelry industry, you'll acquire insight into the challenges and issues women face, including taking initiative; achieving professional goals; leading, managing, and networking; and creating vision in the workplace. The knowledge you gain from this course will provide you with skills you can apply in your career right away.

"Women in the Jewelry Industry," taught by Dr. Vilma Vallillee, is offered online during the Summer term (July 21 to Sept. 26). Click here to enroll and here for more information on jewelry-specific business courses, or call (800) 421-7250, ext. 4001 or e-mail admissions@gia.edu. Outside the U.S. or Canada, call (760) 603-4001.

Training for the Aspiring Executive
You can stay up-to-date and competitive in today's marketplace with the help of the GIA School of Business' Executive Training Program (ETP). The program is designed to teach jewelry industry professionals new skills they can use to develop and manage a jewelry business. Information and research for the ETP is gathered from the jewelry industry and the business and academic worlds. Topics covered in the program include leadership skills, effective business strategies and merchandising tactics.

The ETP, taught by Giovanni Valencia, G.G., M.B.A., is offered Aug. 18-28 (Monday through Thursday for two weeks) at GIA's New York campus. To enroll or for more information on GIA's jewelry business seminars, click here or call (800) 366-8519 or e-mail nyedu@gia.edu. Outside the U.S. or Canada, call (212) 944-5900.

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Learn in the Heart of It All -- GIA Carlsbad

There's simply no replacement for the interaction, community and relationships you create when you embark on an on-campus GIA education at the GIA World Headquarters in Carlsbad, California.

Just a stone's throw from the Pacific Ocean and only 30 minutes from San Diego, you'll have access to the world's largest gemological library and all of the resources that come with a world-renowned GIA education - including expert instruction and mentoring from some of the industry's top leaders.

Our students consistently tell us that being on campus cultivates a spirit of connection, making it possible for them to develop relationships. Students find it easy to acquire a core network of passionate gem and jewelry professionals they can count on throughout their careers.

Whether your career is in transition or needs to be refreshed -- or you're just starting out -- the Carlsbad campus offers the perfect mix of networking, opportunity and growth. Click here to find out more.

"My education, the networks I've established, and my overall experience at GIA empowered me to think outside the box and start my own business in the industry I love. To this day, I rely on fellow graduates and professors to share ideas and keep current about gems and jewelry throughout the world. I wouldn't be where I am today without GIA."

Sandra Locken
GIA Jewelry Business Management program graduate Owner, Sarini Fine Jewellery

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Students gain the practical experience needed to succeed in the jewelry industry in GIA's Lab classes. These classes also provide the perfect opportunity for those already established in the trade to refresh important gemological skills. Enroll today. Space is limited.

GIA Lab classes offered through August 2008 are:

So what are you waiting for? Apply online, e-mail GIA Education or call (800) 421-7250, ext. 4001, for more information. Outside the U.S., call (760) 603-4001.

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